commercial-credit-memo

Truist Commercial Credit Memo — Methodology

How to structure, populate, and render a Truist commercial credit memo. Deep mechanics are split across references — load only what you need:

Reference	When to load
references/memo-sections.md	When writing the memo body — what each of the 13 sections must contain
references/ncino-data-inventory.md	When querying Salesforce/nCino — every object + field the agent reads
references/ratio-definitions.md	When computing ratios from the spread
references/peer-aggregation.md	When building the peer comp set from EDGAR
references/covenant-checks.md	When testing covenants and flagging compliance

When this skill applies

• Drafting a commercial credit memo for a C&I borrower
• Refreshing a memo with new quarter financials
• Auditing an existing memo for methodology consistency
• Producing a covenant compliance report or peer comparison (subsets of the full memo)

Not in scope: capital markets memos, syndicated loan offering memos, leveraged finance IC memos, or CRE underwriting (cap-rate-driven, separate framework).

Related: the deal-summary-widget skill is the lightweight precursor — it renders an inline one-screen widget summarizing the same borrower. Use the widget when the user wants a "quick look"; use this skill when they want the full underwriting workspace.

Workflow

1. Load memo-sections.md for the section spec
2. Load ncino-data-inventory.md and pull all the borrower/loan/covenant/collateral/guarantor/rating records from Salesforce
3. Fetch the Boom spread for the current period's financials
4. Load ratio-definitions.md and compute the full ratio set
5. Load peer-aggregation.md and build the comp set from EDGAR
6. Load covenant-checks.md and run the compliance framework
7. Resolve the event type (New Money / Annual Review / Modification) from the intake form, then assemble the skeleton: node assets/assemble-memo.mjs "<Event Type>" output/<borrower-slug>-skeleton.html This emits a pruned copy of the template containing only the sections/subsections that event type renders, in config order. Read the assembled skeleton (NOT the raw assets/memo-template.html), apply the content framing for that event type per the table below, fill the {{slots}}, and render to the Cowork artifact panel.
8. Hand off to the pdf skill for export

Event types and section selection

The memo is assembled from one annotated template (assets/memo-template.html, sections wrapped in <!-- BEGIN id --> / <!-- END id --> markers) plus assets/memo-config.json. Do not read or fill the raw template — run assets/assemble-memo.mjs for the resolved event type and fill the pruned skeleton it emits.

Config shape (memo-config.json): one entry per section, keyed by block id. Each carries an order (emit sequence), an include list (the event types that render it), and a subsections map (nested blocks, each with their own include). A block renders for an event type iff that type is in its include list; a subsection with no entry stays. The assembler keeps included sections, drops the rest, orders by order, toggles subsections, and renumbers the Section/Exhibit labels so they stay contiguous. Structure and order are config-driven — to change what an event type renders, edit memo-config.json (and add a matching BEGIN/END marker pair in the template for any new toggle). Never fork the template.

Content framing is NOT in the config — it's your job when filling the kept blocks. Apply per event type:

Event type	Framing of the blocks that remain
New Money	New facility — no rating on file. Covenants are proposed (no historical compliance). Full borrower / industry / peer workup.
Annual Review	Use-of-proceeds minimal ("annual review only, no change in terms"). Covenants foreground historical compliance. Rating compared to file.
Modification	Existing-vs-proposed comparison is the focus. Covenants show pro-forma impact of the change. Borrower abbreviated (ownership / customers / management only). Collateral only if the package is changing. Industry / Peer dropped, so mark the Financial Analysis "Peer Median" column N/A.

The ratio set

Compute the full set every memo. Display leverage / coverage / liquidity / growth on the Executive Summary; full set in the Financial Analysis ratio dashboard.

Category	Ratios
Leverage	Total Leverage, Funded Debt/EBITDA, Net Leverage, Senior Secured Leverage
Coverage	DSCR, FCCR, Interest Coverage
Liquidity	Current Ratio, Quick Ratio, Liquidity ($)
Profitability	Gross Margin, Operating Margin, EBITDA Margin, Net Margin, ROA, ROE
Efficiency	DSO, DPO, DIO, Cash Conversion Cycle
Growth	Revenue YoY, Revenue 3-Yr CAGR, EBITDA YoY

Output

Two synchronized formats: live HTML artifact in Cowork's right panel (uses assets/memo-template.html), then PDF via the pdf skill (saves to output/<borrower-slug>-credit-memo-<YYYY-MM-DD>.pdf). Same document. HTML is the working draft; PDF is the deliverable uploaded to nCino.

Branding

Tokens live in ../../assets/brand-tokens.css. The classification banner TRUIST — INTERNAL — DRAFT, PENDING CREDIT COMMITTEE REVIEW appears on every page in primary purple (#2D1A47). Logo inlined from ../../assets/truist-wordmark.svg. See ../../assets/brand-notes.md for what's official Truist vs. derived.

Pre-workspace intake form

Before opening the full memo workspace, render a brief intake form via show_widget so the user can confirm / tune key parameters. The form is a context-rich confirmation step, NOT an interrogation. Pre-fill every field that can be derived from data already retrieved. Only ask for inputs the agent genuinely doesn't know.

Default behavior: when the user explicitly says "use defaults", "skip the form", or "just open it", bypass the form entirely and proceed straight to the workspace with auto-detected values. The form exists for when the user wants to inspect or change something before kicking off the heavy work.

Form fields and their pre-fill logic

1. Credit action (event type) — the three canonical event types are New Money, Annual Review, and Modification; this choice drives section selection via assets/memo-config.json. Auto-detect from the Product Package data:

   • LLC_BI__New_Money__c > 0 (a new facility, or a renewal that adds commitment) → New Money
   • Facilities expiring within the window with no new money (including a flat renewal) → Annual Review
   • Covenant / pricing / term change only, no commitment change → Modification Show the three as selectable chips, but visually emphasize the auto-detected one (e.g., filled background, "auto-detected" tag). "Renewal" is not its own type: a renewal folds into Annual Review (no new money) or New Money (adds commitment).

2. Financials as-of date — default to the latest fiscal year-end available (typically the date on the most recent completed Boom spread, or Account.LLC_BI__Last_FYE__c if present). User can pick a different date.

3. Financials source — show three things together:

   • Files already in Boom for this borrower — query Boom's /companies/external-id/{salesforceAccountId} to get fileIds, then list the most recent 3-5 files with: filename, period covered (endDate of statements), status (Completed / Processing / Pending / Failed), upload date. If a file is Completed, give it a "Use this" radio button. Pre-select the most recent completed file.
   • Upload new file — keep the file-upload control visible for cases where new financials arrived
   • Skip / proceed with placeholders — for cases where the agent should write the memo before a spread is available, marking financial sections as "pending"

4. Peer set scope (NAICS) — provide a curated set of quick-pick chips derived from the borrower's NAICS code, PLUS a searchable typeahead input that lets the user enter any 2022 NAICS code or industry name. For NAICS 332710 (Machine Shops), the quick picks should look like:

   Option	NAICS	Description
   Exact (default)	332710	Machine Shops — closest comp set
   Broader sub-sector	3327	Metalworking Machinery Manufacturing
   Sector	332	Fabricated Metal Product Manufacturing
   Adjacent — Machine Tool Mfg	333517	Machine Tool Manufacturing — upstream peers
   Adjacent — Industrial Distribution	423830	Industrial Machinery Wholesalers — downstream peers
   Custom	(searchable typeahead)	Type any code or industry name

   The exact mapping varies by borrower's NAICS — use the borrower's NAICS hierarchy:

   • 6-digit: borrower's exact code (default)
   • 5-digit: parent industry (one step broader)
   • 4-digit: industry group
   • 3-digit: sub-sector
   • 1-2 adjacent codes: derived from the agent's knowledge of related industries

   Custom NAICS — searchable typeahead implementation:

   The "Custom NAICS" option must be a typeahead, NOT a plain text input. Use a native HTML5 <input list> + <datalist> element populated from truist-credit-memo-agent/skills/commercial-credit-memo/assets/naics-codes.json (the full 2022 Census list, 1,012 six-digit codes). Each <option> value follows the format {code} — {title} so the browser's built-in matcher hits BOTH the numeric code AND the industry name:

   <input list="naics-codes" name="custom-naics"
          placeholder="Type a code (e.g. 332710) or industry name (e.g. machine shops)..."
          autocomplete="off">
   <datalist id="naics-codes">
     <option value="111110 — Soybean Farming"></option>
     <option value="111120 — Oilseed (except Soybean) Farming"></option>
     ...
     <option value="332710 — Machine Shops"></option>
     ...
   </datalist>
   

   How to populate the <datalist>: read assets/naics-codes.json (an array of {code, title} objects) and emit one <option> per entry. The full file is ~66 KB inlined; acceptable for a show_widget payload. Do NOT try to fetch the JSON at render time — inline the options directly so the widget is self-contained.

   Parsing the user's selection: on form submit, take everything before the first — separator as the NAICS code. If the user typed a raw code without selecting from the list, the value will just be the 6 digits — accept either form.

   Include this helper text below the section: "This NAICS choice controls which public companies the agent fetches from EDGAR for peer comparisons. Broader sets give more comps but less precise matches. Adjacent codes are useful when the exact set is thin or when cross-industry context matters. The Custom search is the full 2022 Census NAICS list (1,012 six-digit codes)."

5. Anything else to flag — free-text optional. For things like "sponsor exit anticipated mid-2026" or "client requested a covenant relaxation we should preview". Leave blank if nothing.

Form actions

Two buttons:

• Open workspace with these defaults (primary, dark) — proceeds with auto-detected + selected values
• Skip form, just open (secondary, link-style) — bypasses the form entirely on this and future memos for this borrower in this session

Keep the form compact — one screen, no scrolling on a standard laptop display. If a section would push it over the fold, collapse less-critical sections (peer set scope, "anything else to flag") behind a "More options" disclosure.

When to ask vs. proceed

Ask when: multiple Account candidates match the borrower; multiple loans on the Account; Boom spread fails or hangs; a covenant computes to a breach (confirm whether to flag in Executive Summary or escalate to RM first); peer set has fewer than 3 clean public peers (broaden NAICS or accept smaller).

Proceed when: data is unambiguous; the methodology specifies a single answer; the user has already disambiguated; the user said "use defaults" or "skip the form".

Failure modes

These are the mistakes that make memos fail committee review. Avoid each:

• Estimating without sourcing. If a figure isn't in the source, write [not in source system; flagged for RM] — don't guess.
• Industry "average" without naming the peer set. Always name the peers when citing a median.
• Treating Total Leverage and Senior Secured Leverage as interchangeable. Compute both, test the right one against each covenant.
• Covenant EBITDA vs. reported EBITDA. Use covenant EBITDA per the credit agreement when testing covenants; the difference can flip a flag.
• Acquisition contribution rolled forward as organic. Decompose growth into acquisition vs. same-store when M&A occurred mid-period.
• LTM EBITDA from fewer than 4 quarters without flagging. Don't silently extrapolate.
• Silent risk-rating change. If the proposed rating differs from the rating on file in nCino, surface the change explicitly.