Education & Events

This series provides bankers with foundational principles for effective commercial and real estate lending, commercial credit analysis, underwriting, and loan review.

This four-session 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. The instructor’s facilitation approach encourages participant engagement and, thus, enhances their learning experience. Participants apply lending, underwriting, and credit analysis principles through real-world examples, practice problems, and case studies. Worksheets for calculating Debt-to-Income, Debt Service Coverage, and Global Debt Service Coverage are included. Participants should bring a calculator to class. A laptop is recommended, but not required.

Audience Commercial Lenders, Small Business Lenders, Credit Analysts/Commercial Loan Underwriters, Loan Review Officers, and Management Trainees. This course is “down-to-earth” and particularly relevant for bankers who specialize in lending to small and mid-size commercial borrowers.

Benefits

• Gain a solid commercial credit foundation required for advancement in your banking career.
• Learn to safely and critically “think outside of the box” to make wise loan recommendations, supported by data and a complete credit investigation, that balance customer service and risk.
• Become aware of common mistakes and pitfalls in commercial lending and credit analysis.
• Effectively utilize financial spreading software and interpret the information provided in the various spreading reports.
• Understand why knowledge of UCA cash flow analysis is an undervalued, yet critical skill for all small business and commercial bankers.
• Fully analyze relevant details, understand and mitigate key risks, and clearly summarize “the story” of the credit in your credit memo.
• Grow your loan portfolio by increasing your credibility with customers, credit partners, senior managers, and regulators.

Session I:  Introduction to Commercial Lending and Financial Accounting -  April 14

• Commercial Lending Defined
• Parties to the Loan and Legal Entities
• 5 C’s  of Credit Evaluation: Capacity,   Character, Capital,  Collateral, Conditions
• Calculating Loan to Value, Loan to Cost, and Lendable Equity
• Types of Commercial Loans and Proper Loan Structuring
• Analyzing the Personal Financial Statement
• Real World Underwriting Pitfalls and Lessons Learned
• Application of the Concepts: Practice Problems and Case Study

Session II:  Analyzing Tax Returns and Calculating Traditional Cash Flow - April 15

• Financial Accounting 101 for Lenders
• Types and Quality of Financial Statements
• Calculating Debt Service Coverage and Debt to Income
• Calculating Global Debt Service Coverages for Business Owners/Guarantors
• Analyzing Personal Tax Returns and Key Schedules
• Analyzing Business Tax Returns and Key Schedules
• When to Request K-1’s and Tax Returns
• Real World Underwriting Pitfalls and Lessons Learned
• Application of the Concepts: Practice Problems and Case Study

Session III:  Analyzing Financial Statements and UCA Cash Flow - May 19

• Trend Analysis, Common-Size Analysis, Ratio Analysis, and Industry Analysis
• Key Financial Statement and Cash Flow Drivers
• Impact of Changes on Cash Flow from the Balance Sheet and Income Statement
• Evaluating Working Capital and Why It is Critical to Loan Repayment
• The Cash Conversion Cycle’s Impact on Operating Cash Flow 
• Monitoring the Collateral and the Credit
• UCA Cash Flow Analysis
• Application of the Concepts:  Practice Problems and Case Study

Session IV:  Sensitivity Analysis, Mitigating Risk, and Making Loan Approval Recommendations - May 20

• Inherent Risk in Common Categories CRE & C&I Lending
• Sensitivity Analysis and Projecting the Ability to Repay
• Structuring the Loan and Loan Agreement to Mitigate Risk
• Effective Use of Loan Covenants
• Hedging Interest Rate Risk
• Elements of an Effective Credit Memo
• Making Loan Recommendations and Rating the Risk
• Contributing to a Healthy Credit Culture
• Application of the Concepts: Practice Problems and Case Study

Facilitator
Christie Drexler is the President of Drexler Consulting, LLC, a financial services consulting and training business focused on developing purpose-driven, competent, servant leaders in all roles of banking. Christie has twenty-six years of direct experience in the financial services industry, working for both community and large regional banks. Her experience has been expansive to include successfully navigating retail and commercial banking careers. She has served as Division President, Market President, Chief Credit Officer, Chief Retail Officer, and Regional Sales & Service Manager. Christie has a B.S. in Finance from Berry College and an MBA from Georgia College and State University. She is a passionate facilitator and coach who strives to live the values and leadership strategies she teaches in her training programs.

Continuing Education
The IBA is recognized as a public accountant continuing professional education sponsor by the Illinois Department of Financial and Professional Regulation. Public accountants licensed in the state of Illinois will earn 24 hours of CPE credit for completing this program.

Fees Per Person
IBA Member $995
Nonmember $1665

Hotel Information
Courtyard - Springfield
3462 Freedom Drive
Springfield, IL 62704
217-793-5300
IBA Rate: 20% off the available rate