Bank of Idaho & CoFi Partnership

Industry

Financial Services

Challenge

The client’s previous process and software limited them to tracking projects only at the loan level. This high-level view made it difficult to understand how funds were being allocated within each project. Without the ability to track at a line-item level, they lacked the budget visibility necessary to manage costs effectively. As a result, they frequently encountered cost overruns and struggled to maintain financial control.

Results

In a quick 2 months, we were able to create a transition plan for their full portfolio and work those projects over to CoFi mid-flight. Fast forward to today, they are running on average 120 draws monthly, with average processing times of 2 days with 1 FTE from the bank. We have yet to experience a foreclosure or default since CoFi has been implemented.

Key Product

bankofidaho.com/

$1.3B

Assets

"Partnering with CoFi has streamlined our construction servicing, reduced lending risk, and improved visibility — all while speeding up draw funding and enhancing the builder and customer experience. Their platform centralizes our process, eliminates manual tasks, and proactively identifies risks. We’re very pleased with CoFi’s service and highly recommend them to any FI looking to build an efficient, centralized servicing unit."

Chelsey B.

VP of Loan Originations

About Bank of Idaho

Bank of Idaho is a community-focused financial institution with $1.3 billion in assets and a strong specialization in construction lending. Managing an active portfolio of both residential and commercial projects, the bank is committed to supporting local builders, driving economic growth, and delivering exceptional client service. Their proactive approach to adopting innovative technology enables them to streamline operations, mitigate risk, and enhance the lending experience for customers and builders alike.

The Challenge

1. Limited Project Tracking

Previously, BOI could only track projects at the loan level, not at the line-item level.

Impact: Cost overruns due to poor budget visibility.

Need: Granular tracking to better monitor budgets and expenditures.

2. Policy Control Issues

Loan officers were approving draws, and at times, these approvals were leveraged to close other deals.

Impact: Approvals occurred that should not have been granted, resulting in additional project cost overruns.

Need: Tighter policy controls and impartial approval processes.

3. Scaling Without Adding Headcount

With a shift to a dedicated “draw team,” BOI estimated needing 4–5 additional hires to manage current volumes, all while targeting increased originations.

Impact: High projected operational costs.

Need: Streamlined processes that support volume growth without staffing expansion.

The Solution

CoFi partnered with BOI to design and execute a two-month transition plan for their entire portfolio, migrating active projects mid-flight. The solution included:

Implementation of line-item tracking for greater budget visibility.

Centralized draw approval process to ensure compliance and reduce policy-related risks.

Automation of manual administrative tasks such as lien waiver collection, budget reviews, and invoice processing.

Builder/project review service to proactively identify potential risks.

We would recommend them to every FI that wants to build an efficient centralized construction servicing unit. - Chelsey B.

The Results

Portfolio Transition: Full migration completed in 2 months.

Operational Efficiency:

Averaging 120 draws monthly
2-day average processing time
Managed by 1 FTE instead of the projected 4–5 hires

Risk Reduction:

No foreclosures or defaults since implementation
Better visibility into construction portfolio