Risk Assets typically compose 50-80% of a community bank’s total assets. Asset Quality is viewed by the investment community to establish the bank’s value and it form the basis of capital requirements assigned by the regulators. Therefore, managing the commercial loan portfolio from an analysis perspective is extremely important for the overall health of a financial institution.
This course is designed to provide the more experienced lenders with the tools necessary to ensure a quality loan portfolio from analyzing promising prospects or customers, to loan approval, and documenting your actions as being proper and prudent. This course will have a heavy emphasis on Credit, Ratio, Cash Flow, Break Even and Sustainable Growth analysis and will proceed to writing an effective credit memorandum.
TOPICS COVERED:
• Analyzing Industry, Business and Management Risks
• Advanced Ratio and Cash Flow Analysis
• Financial Forecasting and Sensitivity Analysis
• Calculating Sustainable Growth and Break-Even Points
• Loan Structuring for Short Term and Long Term Credits
• Key Concepts in Analyzing Specialized Credits, e.g. builders, developers, contractors, self-employed borrowers and non-profits organizations
• Loan Documentation including the Effective Use of Loan Agreements and Financial Covenants
• Review of Major Credit Administration Topics including: The Credit Policy, Credit Memoranda and Credit Risk Rating.
AFTER THE WORKSHOP YOU WILL:
• Know how to identify key industry, business and management risks
• Know how to analyze and understand the more complex credit requests
• Have a deeper understanding of Cash Flow Analysis and Financial Forecasting
• Understand the lending compliance requirements for commercial loans
• Enhance your overall credit underwriting skills
• Understand key credit administration issues to insure a safe and sound financial institution
• Understand techniques to properly manage problem loans
• Understand proper loan structuring
PRE-REQUISITES:
• Working knowledge of accounting techniques and practices Must know the components of a Balance Sheet and Income
Statement Working knowledge of the basic credit ratios to determine:
• Liquidity
• Leverage
• Asset Management
• Operating Performance
• Basic knowledge of the Statement of Cash Flows
• Working knowledge of Loan Documentation
WHO SHOULD ATTEND:
• Commercial and Consumer Loan Officers
• Loan Review Personnel, Credit
• Analysts, Branch Managers of Commercial
• Branches, Senior Loans Officer
• Senior Lending Officers
