Case Study: First City Bank achieves proactive CRE risk management with Abrigo Stress Testing

Proactive Risk Management Planning Stress Testing the CRE Portfolio

First City Bank, a $62 million community bank in Columbus, Ohio, wanted to get ahead of anticipated regulatory stress-testing requirements and better manage its heavy concentration in commercial real estate (CRE) loans. To address this, the bank purchased Abrigo Stress Testing to build a forward-looking stress-testing program.

Using Abrigo Stress Testing, First City Bank now stresses individual loans at underwriting and annually and runs portfolio-level tests (varying vacancy rates, cap rates, and other factors) to pinpoint exposure, re-evaluate loan ratings, and guide diversification. The work with Abrigo produced measurable business impact—regulators said the bank was “much further along” than expected, praised its reports and portfolio knowledge, and the bank can now quantify and mitigate CRE concentration risk.

First City Bank

James Bush

Vice President