4 sessions included in the Commercial Lending School.
Registration: Registration is per-participant
The Commercial Lending School delivers in-depth training in all facets of commercial credit, with an emphasis on financial analysis, cash flow versus profit, and loan structure. Cases emphasizing small and medium-sized companies are featured. Case studies are used, and active participation by the students is essential. The work will require study, documentation, analysis and decision making, often in small teams that will interact with the instructors, and in virtual breakout rooms. Pre-work may be assigned at the discretion of the instructor.
To ensure you get the full class experience, please have your camera on. Having cameras on is proven to increase connection with your peers and enhance your online experience.
Audience: Credit Analyst, Branch Personnel who are breaking into small business lending and employees in the Commercial Lending department.
Details Below:
Module 1 – October 10, 2023
Introductions
- External Environment:
- Economy,
- Industry Trends,
- Market Forces
- Life Cycles of Businesses
- Internal Environment:
- Banking Climate, Bank Size and Lending Culture
- Regulatory Environment
- Borrower Funding Need
- Borrower make-up in terms of ownership, management and legal structure and historic financial performance
- Processing Loan Requests:
- Lender-Borrower Exchange
- Typical sequence between loan request and loan approval
- Collecting Borrower Information to process loan requests
- Bank’s Loan Documentation Checklist
- Borrower Mission, life cycle position, external influences
- Borrower Management and ownership
- Past Financial Performance: The Financial Statement and Tax Returns
- Borrower Financial Projections
- Underwriting Loan Requests: Measuring Repayment Risk via Financial Statement Analysis:
- 3 Components of F/S
- Historic Financial Trends
- Reading Financial Statements:
- Level of Preparation
- Balance Sheet
- Income Statement
- Statement of Cash Flows
- Notes to Financial Statements
- Review of Actual Financial Statements to be used in Case Study
- Finding and measuring the Five C’s of Credit from Business reputation and historic financial performance
Module 2- October 17, 2023
- Historical Financial Analysis Overview
- Framing Picture of Borrower
- Determining Appropriate Level of Information Required to Process a Loan Request
- Types of Business Financial Statements
- Financial Statement Components-The Detail
- Revisit it Case Study Financial Statements
- Processing Financial Statements and Borrower Information
- Who is Borrower
- Financial performance relative to loan request
- Financial Statement Analysis
- Tools:
- Spreadsheet Construction
- Common Sizing Technique
- Statement of Cash Flow Worksheet
- Ratios
- Trend Analysis
- Comparative Analysis
- Forecasting
- Tools:
Module 3-October 24, 2023
- Financial Analysis Output
- Drawing an objective analysis from the tools for processing financial statements
- Cash Flow Analysis
- Direct vs Indirect Methodologies
- Ratio Analysis
- Five Ratio Classes used in financial analysis output
- Debt Coverage methodologies
- Loan Structure vis a vis Repayment Sources
- Amazon Case-an illustration
- Homework: Read and be ready to discuss Case provided
- Mental Picture for assessing, underwriting and evaluating loan request in case study
Module 4- October 31, 2023
- Review Modules 2 & 3 highlights on processing financial information and financial analysis output around putting together an objective underwriting evaluation using case to review past financial performance
- Financial Statement Projections
- Medical Imaging Financial Projections
- Developing appropriate loan structure that captures both the Borrower request and underwriting output, and packaging this output for loan presentation/approval using the case provided
- Building mitigants to repayment risk as part of loan structure
- Defining primary and back up sources of repayment
- Collateral
- Owner(s) Guaranty and what is required to evaluate and secure a loan guaranty
Related Topics
Instructor
George Connors
Mr. Connors most recently served as EVP and Division Head of the Virginia and Washington D.C. commercial markets for Sandy Spring Bank. Prior to this position, Mr. Connors was a founding director and... read more.
Instructor
Jeff Smith
Jeff has been the Chief Lending Officer at Freedom Credit Union in Springfield, MA since 2013 and is in charge of managing the Commercial, Mortgage, and Consumer Lending portfolios, as well as the Col... read more.