Essentials of Commercial Credit Analysis Series


Hybrid Event  
Tuesday, March 14, 2023 - Friday, March 17, 2023   iCalendar Central Standard Time

Hybrid Delivery Options (select your preference when registering)
March 14-17 – IBA Center for Banking Excellence, Springfield OR Live-Streamed via Zoom
9:00 a.m. - 4:00 p.m.

Essentials of Commercial Credit Analysis provides bankers with foundational principles for effective commercial and real estate lending, commercial credit analysis, underwriting, and loan review. This 4-day series will prepare bankers to successfully analyze credits and make wise, evidence-based loan recommendations in today’s banking environment, where they must have the skills and flexibility to respond to a wide range of loan requests. This series follows PSI’s “tell-show-do” facilitation approach to maximize participant interaction and the learning experience. Participants learn to apply lending, underwriting, and credit analysis principles through real-life case studies, examples, and practice problems. Worksheets for calculating debt-to-income, debt service coverage, and global debt service coverage are included. View Flyer

Audience
This series is recommended to commercial lenders, commercial real estate lenders, commercial and industrial lenders, small business lenders, credit analysts, commercial loan underwriters, loan review officers, and management trainees.

Day 1 – Introduction to Commercial Lending and Financial Accounting

  • Lending in Today’s Community Bank
  • The Commercial Loan Application Process
  • 5 C’s of Credit Evaluation: Capacity, Character, Capital, Collateral, Conditions
  • Types of Borrowers/Legal Entities
  • Defining the Borrowing Need and Sources of Payment
  • Types of Commercial Loans and Loan Restructuring
  • Financial Accounting 101 for Lenders
  • Types and Quality of Financial Statements
  • Evaluating Guarantor Support and the PFS
  • Getting a Complete Loan Application

Day 2 – CRE Lending, Traditional Cash Flow Methods, and Analyzing Tax Returns

  • Commercial Real Estate Lending Defined
  • Common Types of CRE Projects and Credit Considerations
  • Real Estate Appraisal Analysis, Lease Analysis, and Other Considerations
  • Calculating Debt Service Coverage, Global Debt Service Coverage, and Global Debt to Income
  • Analyzing Personal Income Tax Returns – Form 1040 and Schedules
  • Analyzing Business Tax Returns
  • Real World CRE “Loans Gone Bad”

Day 3 – C&I Lending, Financial Statement Analysis, Direct (UCS) Cash Flow Analysis

  • C&I Lending Defined
  • Cash Conversion Cycle and Working Capital
  • C&I Borrowing Causes and Loan Structure
  • C&I Collateral Analysis and Monitoring
  • Financial Statement Analysis: Trend Analysis, Common-Size Analysis, Ratio Analysis
  • Statement of Cash Flow and Direct UCA Analysis
  • Projecting Future Income and Cash Flow
  • Real World C&I “Loans Gone Bad”

Day 4 – Effective Credit Memos, Proper Loan Grading, Portfolio Management, and Relationship Building

  • 5 C’s and the Effective Credit Memo
  • Assessing Risk and Mitigation Strategies
  • Proper Loan Grading
  • Ongoing Loan Monitoring, Exception Management, and Loan Review
  • Problem Loan Workouts
  • Effectively Communicating with Credit Partners
  • Building Loyal Client Relationships

Meet the Facilitator
Christie Drexler is Senior Consultant and Facilitator for Performance Solutions, Inc. (PSI). She has over 26 years of experience in the financial industry, serving the community and regional banks. Her experience has been expansive in successfully navigating retail, operations, treasury services, and commercial banking careers. Christie has served as Chief Retail Officer, Chief Credit Officer, and Market/Division President. She has a B.S. in Finance from Berry College and an MBA from Georgia College and State University. Christie is a passionate facilitator and coach focusing on developing competent, caring, and impactful leaders in all banking roles.

IBA Member
Full Series $995 | Individual program $265

Nonmember
Full Series $1665 | Individual program $445

Hybrid Event  

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