Education & Events

Essentials of Commercial Credit Analysis Series
April 16-17 and May 13-14, 2025 - 9:00 a.m. to 4:00 p.m. CT
Springfield and Live Streamed

This series provides bankers with foundational and advanced principles for effective commercial and real estate lending, commercial credit analysis, underwriting, and loan review. Each session 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 This series is targeted to 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 of the Series

• Gain a solid foundation for a career in small business lending, commercial lending, retail lending, credit analysis, or loan review.
• Become aware of the common mistakes and pitfalls in commercial lending and credit analysis.
• Analyze financial information presented in business and personal tax returns.
• Effectively utilize financial spreading software and interpret the information provided in the various spreading reports including Common Size Financial Statements, UCA Cash Flow Statements, Financial Statement Ratios, and Projections.
• Understand why knowledge of UCA cash flow analysis is an under-valued, 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.
• Build your commercial lending competence and confidence and increase your credibility with customers, credit partners, senior managers, and regulators.

Session I:  Introduction to Commercial Lending and Financial Accounting -  April 16

• Lending in  Today’s Community Bank
• 5 C’s  of Credit Evaluation: Capacity,   Character, Capital,  Collateral, Conditions
• Calculating Loan to Value, Loan to Cost, and Lendable Equity
• Types of Borrowers/Legal Entities
• Defining the Borrowing Need and Sources of Repayment
• Types of Commercial Loans and Proper Loan Structuring
• Financial Accounting 101 for Lenders
• Types and Quality of Financial Statements
• Evaluating Guarantor Support and the PFS

Session II:  Analyzing Tax Returns and Calculating Traditional Cash Flow - April 17

• 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 and Why to Request K-1’s 
• Application of the Concepts: Practice Problems
• Traditional DSC Underwriting Pitfalls and Lessons Learned

Session III:  Analyzing Financial Statements and UCA Cash Flow - May 13

• Trend Analysis, Common-Size Analysis, Ratio Analysis, and Industry Analysis
• Uncovering Financial Statement 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

Session IV:  Sensitivity Analysis, Mitigating Risk, and Making Loan Approval Recommendations - May 14

• Sensitivity Analysis and Projecting the Ability to Repay
• Conducting a SWOT Analysis, Identifying, and Documenting Risk
• Structuring the Loan and Loan Agreement to Mitigate Risk
• Effective Use of Loan Covenants
• Hedging Interest Rate Risk
• Writing Effective Credit Memos
• Weighting Objective and Subjective Risk and Loan Grade Recommendations
• Application of the Concepts:  Practice Problems
• Effectively Communicating with Credit Partners
• Building Loyal Client and Stakeholder Relationships

Facilitator
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.  In association with Performance Solutions, Inc. and Dianne Barton, Christie has offered training and consulting services through Drexler Consulting, LLC, for the past five years. In addition, 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
Pending Review

Fees Per Person
IBA Member $995
Nonmember $1665