Commercial Loans Outstanding per Commercial Loan Officer

Commercial Loans Outstanding per Commercial Loan Officer

KPI Details

Commercial Loans Outstanding per Commercial Loan Officer measures the total dollar amount of outstanding, managed loans in relation to the number of commercial loan officers working for the bank at the same point in time. A higher value should be sought after for this metric as it measures the production of commercial loan officers, the generation of new business, and the success of loan origination processes resulting in outstanding commercial loans. Relatively low values are typically related to a few common factors, including complex or time-consuming commercial loan application processes; low levels of customer demand for commercial loans; high levels of rework related to single commercial loans due to follow-ups with customers regarding incomplete applications, errors, etc.; or poor training and commercial loan officer performance.

KPI Definition

The total dollar amount of commercial loans managed (i.e., "outstanding") by the bank at a certain point in time divided by the number of commercial loan officers working for the bank. Commercial loan officers are considered to be individuals who are responsible for attracting new loan business.

KPI Calculation Instructions Commercial Loans Outstanding per Commercial Loan Officer?

Two numbers are used to calculate this KPI: (1) the total dollar amount of commercial loans managed by the bank at a certain point in time, and (2) the number of commercial loan officers working for the bank. Consider loans managed to include all unpaid and interest-bearing loans that remain with borrowers. Non-performing loans are not included in this calculation, as interest is no longer being accrued. Commercial loan officers are considered to be individuals that are responsible for servicing the customer (interviews, requests additional earnings/financial information, reviews credit, approves loan limits, etc.) upon receipt of a commercial loan application. This does not include underwriters, commercial loan support employees, etc.

KPI Formula :

Total Dollar Amount of Commercial Loans Managed / Number of Commercial Loan Officers