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Essentials of Commercial Credit Analysis Virtual Workshop

Essentials of Commercial Credit Analysis Virtual Workshop

Register for our Virtual Essentials of Commercial Credit Analysis Workshop

Thursday, September 19, 2024 at 9:00 AM (EDT) to Friday, September 20, 2024 at 4:00 PM (EDT)

Event Details

Essentials of Commercial Credit Analysis 
Virtual Workshop | September 19 & 20, 2024

Essentials of Commercial Credit Analysis provides bankers with foundational principles for effective commercial loan underwriting and credit analysis. This two-day live, interactive, virtual workshop will equip bankers to analyze the “whole credit” and make evidence-based loan approval and structuring recommendations in today’s community banking environment, where bankers 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 class discussion, real-world examples, and case studies. Worksheets for calculating Debt-to- Income, Debt Service Coverage, and Global Debt Service Coverage are included.

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, credit analysis, or loan review.
•    Become more aware of the pitfalls of common lending and credit analysis mistakes.
•    Interpret and analyze financial information presented in business and personal tax returns.
•    Understand why knowledge of UCA cash flow analysis is an under-valued, yet critical skill for all small business and commercial bankers.
•    Learn how to interpret and communicate “the story” conveyed in the financial statements.
•    Become familiar with analysis provided by commonly used bank financial analysis software.  
•    More effectively communicate with key stakeholders to improve loan decisioning and client service. 

Attendees are required to:
•    Attend and engage fully in training.
•    Keep camera on during training.
•    Bring a calculator to class.
•    Bring printed copies of the training manuals and resource manuals to class. 

For More Information:

Katharine C. Garner
Katharine C. Garner
VACB (804)673-8250

Day 1:  Introduction to Commercial Lending and Financial Accounting

The agenda includes:

  • Commercial Lending in Today’s Community Bank
  • Types of Borrowers/Legal Entities
  • Defining the Borrowing Need and Sources of Repayment
  • Analysis of the 5 C’s of Lending:  Character, Capacity, Collateral, Capital, and Conditions
  • Calculating Loan to Value, Loan to Cost, Debt to Income, and Debt Service Coverage
  • Aligning Repayment Terms with Purpose, Cash Flow Timing, and Useful Life of Collateral
  • Financial Accounting 101 for Lenders
  • Types and Quality of Financial Statements
  • Evaluating Guarantor Support and the PFS

Day 2:  Analyzing Tax Returns, Calculating Global Cash Flow, and Financial Statement Analysis

The agenda includes:

  • Calculating Debt to Income for Business Owners and Global Debt Service Coverage
  • Analyzing Personal Tax Returns and Key Schedules
  • Analyzing Business Tax Returns and Key Schedules
  • When and Why to Request K-1’s versus Business Tax Returns
  • Overview of Trend Analysis, Common Size Analysis, Ratio Analysis
  • Intro to Working Capital Analysis and the Cash Conversion Cycle
  • Intro to UCA Cash Flow Analysis
  • Effective Credit Memos, Risk Rating, and Loan Recommendations