Education & Events

Live Streamed | January 26, February 16, March 16, March 30, April 13, May 18, June 15 ~ 1:00 p.m. to 4:00 p.m. CT

The Essentials of Commercial Loan Underwriting Series provides bankers with foundational principles for effective commercial credit analysis and commercial loan underwriting. This seven-session virtual 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 the learning experience. Participants apply 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.  

Audience
This series is targeted to Commercial Lenders, Small Business Lenders, Commercial Credit Analysts, Commercial Loan Underwriters, Loan Review Officers, and Management Trainees.  This course is relevant for community bankers who specialize in lending to small and mid-size commercial borrowers.  

While the series includes entry-level content designed for bankers new to commercial lending and credit analysis, seasoned lenders will also benefit from attending each session, as participants will thoroughly examine various approaches to commercial credit analysis and underwriting throughout the series.

Series 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 balances customer service and risk.
• Become aware of common mistakes and pitfalls in commercial lending and credit analysis.
• Compare the pros and cons of different cash flow analysis approaches.
• Effectively utilize and interpret information provided in the various spreading software reports.
• Grow your understanding from a banker’s perspective of the various tax returns and key schedules.
• 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, Credit Analysis, Underwriting

• Lending, Underwriting and Commercial Credit Analysis Defined
• Types of Commercial Lending
• Overview of the 5 C’s of Lending: Capacity, Character, Capital, Collateral, Conditions
• Analyzing the Parties to the Loan and Key Terminology
• Identifying and Underwriting Your Sources of Repayment
• Calculating Loan-to-Value and Loan to Cost
• Determining Lendable Equity and Documenting Part 365 Exceptions

Session II – Basics of Financial Accounting and Traditional Cash Flow Analysis

• Analyzing the Personal Financial Statement
• Financial Accounting for New Lenders and Credit Analysts
• Types and Quality of Financial Statements
• Overview of Key Financial Statements: Balance Sheet, Income Statement, Statement of Changes in Net Worth/ Retained Earnings, and Cash Flow Statement
• Overview of Key Financial Analysis Software Reports
• Calculating Debt Service Coverage for Commercial Borrowers
• Calculating Debt to Income for Business Owners
• Global Debt Service Coverage Defined
• Fair Underwriting Considerations

Session III – Analyzing Tax Returns and Global Debt Service Coverage Analysis

• Benefits and Drawbacks of Tax Returns in Loan Underwriting
• Analyzing Personal and Business Tax Returns and Key Schedules
• When to Request K-1’s and Tax Returns
• Global Debt Service Coverage Analysis
• Application of the Concepts: Case Study

Session IV – Analyzing Business Financial Statements

• Analyzing Income Statement and Balance Trends
• Determining Financial Condition
• Uncovering Key Financial Statement Clues
• Common-Size Statements and Analysis
• Key Financial Ratios and Ratio Trends
• Industry Analysis
• Evaluating Working Capital and Why It is Critical to Loan Repayment

Session V – Uniform Cash Analysis (UCA Cash Flow)

• The Cash Conversion Cycle’s Impact on Operating Cash Flow
• Overview of Key Types of Cash Flow Statements
• Calculating the Impact of the Income Statement and Balance on Cash Flow
• Uniform Cash Analysis in Depth
• UCA Debt Service Coverage Ratios
• Application of the Concepts: Case Study

Session VI – Proper Loan Structuring, Risk Mitigation & Risk Ratings

• Sensitivity Analysis/Stress Testing/Projections
• Identifying, Documenting, and Mitigating Credit Risk
• Principals of Proper Loan Structuring
• Loan Monitoring and Correct Use of Loan Covenants
• Assignment: Capstone Case Study

Bonus Session – Capstone Case Study and Course Review

• Case Study Discussion
• Elements of Effective Credit Memos
• Course Wrap-Up

Facilitator
Christie Drexler is the founder and President of Drexler Consulting, LLC.  In this role, she has consulted and facilitated training for Banks, Bankers Associations, and Banking Schools across the United States.   Prior to founding the company in 2020, Christie worked directly for both community and large regional banks for twenty-six years.  She has served as a Teller, Credit Analyst, Consumer and Commercial Lender, Regional Sales & Service Manager, Market President, Division President, Chief Credit Officer, and Chief Retail Officer. 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.

Series Price Per Person 
IBA Member $995
Nonmember $1,665