Essentials of Commercial Credit Analysis Series

Hybrid Event  
Tuesday, May 14, 2024 - Wednesday, May 15, 2024   iCalendar Central Standard Time

April 16-17 Scheels, Springfield or Live-Streamed (Day 1: 10:00 a.m. - Day 2:  9:30 a.m.)
May 14-15 – IBA Center for Banking Excellence, Springfield or Live-Streamed - 9:00 a.m. - 4:00 p.m.

This series provides bankers with foundational principles for effective commercial and real estate lending, commercial credit analysis, underwriting, and loan review. Each session prepares bankers to analyze credits successfully and make wise, evidence-based loan recommendations, where they must have the skills and flexibility to respond to a wide range of loan requests. View Program Flyer

Session I:  Introduction to Commercial Lending and Financial Accounting

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

Session II:  Analyzing Tax Returns and Calculating Traditional Cash Flow

  • The Application of Traditional Debt Service Coverage
  • Calculating Debt to Income for Consumer Loans to Commercial Borrowers
  • Calculating Debt Service Coverage and Policy Considerations
  • Calculating Global Debt Service Coverages for Business Owners/Guarantors
  • Commercial and Consumer Fair Lending Compliance in Underwriting
  • Analyzing Personal Tax Returns and Key Schedules
  • Analyzing Business Tax Returns:  LLC, S-Corp, C-Corp
  • When and Why to Request K-1’s
  • Lessons Learned: CRE Problem Loans

Session III:  Financial Statement Analysis, Direct (UCA) Cash Flow Analysis, Working Capital, and C&I Lending

  • Trend Analysis, Common-Size Analysis, Ratio Analysis
  • Balance Sheet and Impact of Changes on Cash Flow
  • Analyzing Working Capital
  • Cash Conversion Cycle
  • Key Differences in Analyzing C&I and CRE Loans
  • Analyzing and Monitoring Loans Secured by Inventory and Account Receivable
  • Projecting Future Income and Cash Flow
  • Lessons Learned:  C&I Problem Loans

Session IV:  Putting It All Together: Credit Memos, Loan Grading, Portfolio Management, and Effective Communication

  • Writing Effective Credit Memos
  • 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 and Stakeholder Relationships

Continuing Education Illinois Public Accounts will receive 7.00 CPE credit hours per session or 28 CPE credits by attending the full series.

Christie Drexler is the Owner 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 26 years of direct experience in the financial services industry, working for both community and large regional banks. Her experience has been expansive, including successfully navigating retail and commercial banking careers. Christie is a passionate facilitator and coach who strives to live the values and leadership strategies she teaches in her training programs.

IBA Member Full Series $995 | Individual programs $265
Nonmember Full Series $1665 | Individual programs $445

Hybrid Event  

Map & Directions