Education & Events

Hybrid Delivery Options (select your preference when registering)
IBA Center for Banking Excellence, Springfield, or Live Streamed

This comprehensive, annual IBA event prepares your team to serve effectively and profitably as commercial loan officers by providing participants with the knowledge needed to evaluate, structure, and negotiate a commercial loan. This school is ideal for new and experienced commercial lenders, Ag, retail, and mortgage lenders expanding their knowledge in C&I lending, management trainees, retail bankers, credit risk administration staff, and credit analysts.

Day 1 - September 14 | 8:30 a.m. to 3:30 p.m.

Foundation Concepts in Lending

Identify six major categories of risk banks assume in commercial lending
Define risk appetite, risk tolerance, and risk culture
Enumerate at least five personal and technical skills of a successful commercial lender
Enumerate the four key lending questions
Describe the Loan Evaluation Process
Identify the 5 Cs of credit
Define the Loan Evaluation Equation
Identify seven elements of the external environment in which a company operates
Identify and explain the significance of the key variables

Understanding the Borrower's Business

Explain the concept of working assets
Define and apply the concepts of the operating cycle, the fixed asset cycle, the profit cycle, the life cycle, and the cash cycle in the operation of a typical business
Define net working capital and recognize its role in the typical business
Utilize the concept of financing gap to project working capital requirements
List the major functions performed by typical businesses and explain the unique financing requirements of each
Define excess cash and explain its role in defining borrowing needs and the ability to repay debt
Use the operating, fixed-asset, profit, and cash cycles to explain how financing requirements can arise in the typical business, identify the appropriate loan structure to meet the financing need, and define the appropriate sources of repayment

Evaluating Management

Describe the traits of a good manager and leader
Identify members of the borrower’s management team
Evaluate management requirements to meet the challenges of the company’s position in its life cycle
Evaluate the quality of management’s internal systems
Evaluate the quality of banker/borrower communication
Utilize three tools to evaluate management
Define the “Do Right” Rule and the Purpose of a Corporation
Apply the techniques in a short case study (optional)

Assessing the Risks Facing the Borrower

Identify and explain the causes of economic fluctuations
Describe the tools available to the Federal government to influence economic activity
Describe the operation of fiscal and monetary policy
Understand the impact of recent legislative and regulatory initiatives
List four tools that can be used to determine the current state of the economy and discern its future direction
List at least five sources of economic information
Explain what is meant by the strategy of a business and why a strategy is important

Bank President Conversation

Day 2 - September 15 | 9:00 a.m. to 3:30 p.m.

Assessing Borrower Financial Performance

Describe the objectives of financial analysis and the legal structures used by borrowers
List the six components of financial statements
Define the types of opinions rendered by accountants
Utilize five tools of historical analysis: component, comparative, common-size, ratio, and cash flow analysis
Complete a “30 Second” analysis
Complete a Loan Screening Worksheet
Evaluate a personal financial statement and adjust net worth
Interpret the nine most common schedules included in a personal tax return
Construct a personal and global cash flow
Interpret Schedules M-1 and M-2 of a business tax return
Apply the tools of historical analysis in a series of exercises

Day 3 - September 16 | 9:00 a.m. to 3:30 p.m.

Projecting Future Performance

Explain the purpose of projections
Identify four keys to quality projections
List information required to construct projections
Distinguish between proformas and projections
Construct proformas, projections, and cash budgets
Stress test projections to determine the potential impact of different assumptions on the borrower’s ability to repay debt

Day 4 - September 17 | 9:00 a.m. to 3:30 p.m.

Loan Structure and Support

Identify each of the elements of the loan structure
Define the balance sheet equation and, using the equation, explain the three purposes for a loan and the three sources of repayment
Define the appropriate loan structure to meet the financing needs of a business
Evaluate six loan structure issues
Define the role of loan support and identify the four elements
Define collateral and understand how to analyze, value, document, control, and monitor it
Define a guaranty, identify various types of guaranties, and explain its role
Define the steps in the documentation process
Properly employ a term sheet and commitment letter
Define a loan agreement, explain its role, identify its basic components, and describe its use
Define the role of a subordination agreement and explain its use
Apply the concepts in a case study

Responsible Commercial Real Estate Lending

Describe the types of CRE loans
Define financial information requirements for each type of CRE loan
Underwrite and monitor owner-occupied, income property, and acquisition/ development and construction loans
Employ an income property “30 Second” analysis and Loan Screening Worksheet
Evaluate the environmental risk in real estate collateral
Describe the types of appraisals and qualifications required of appraisers
Describe when an evaluation is required and the requirements for an evaluation
Identify High Volatility Commercial Real Estate Acquisition, Development, and Construction (HVCRE ADC) loans
Describe the role and use of various types of insurance, including flood, casualty, loss of rent, business interruption, liability, and key person insurance
Employ the concepts in a case study

Day 5 - September 18 | 9:00 a.m. to 3:30 p.m.

Identifying and Managing Problem Loans

Identify the causes of problem loans
Describe how to detect problem loans
Describe the first steps in dealing with a problem loan
Describe the elements of a successful meeting with a problem borrower
Describe how to formulate a problem loan strategy and evaluate the alternatives
Define the steps in implementing a problem loan strategy
Understand key legal concepts of bankruptcy
Identify a troubled debt restructure (TDR)
Understand the methodology utilized to assess the adequacy of the allowance for loan and lease losses (ALLL), including Current Expected Credit Losses (CECL)
Apply the techniques in a case study

Effective Relationship Management

Describe the changing role of the lender
Explain how the lender can add value to the customer relationship
Identify the expectations of small business borrowers
Describe the elements of a life cycle relationship plan
Conduct a successful customer call
Describe how to build a customer relationship
Explain nine steps to profitably price lending relationships
Apply the concepts in two structured role-plays

IBA Recognition and Certificate Presentation

Facilitators
MARK TYRPIN is president and CEO of Mercantile Bank in Quincy, Illinois. His unique style of “Banker Teaching Bankers” emphasizes current banking examples and scenarios to supplement the classroom approach to learning. He has over 30 years of banking experience, including commercial lending, commercial real estate lending, loan rehabilitation, and workout, as well as management.

DERRICK JACKSON is the Line of Business Chief Credit Officer at First Savings Bank, a division of First Merchants Bank located in Jeffersonville, IN. He has over 25 years of experience in financial institution management, including commercial, SBA, and consumer lending, credit risk management, credit analyst training, sales management, and team-based skill development. He is a Faculty Instructor and Curriculum Advisor for both the Wisconsin Graduate School of Banking and the ABA's Commercial Lending Schools. Derrick is a graduate of the ABA Stonier Graduate School of Banking, holds a B.A. degree in Economics and a Minor in Psychology from Centre College, and has obtained the Certified Financial Investment Manager (CCIM), a Commercial Real Estate designation.

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

Per Person Fee (Networking, refreshments, and lunch provided daily.)
IBA Members  $1,225
Nonmembers  $2,045

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 33.50 hours of CPE credit for completing this program.