Description

PROGRAM  OVERVIEW
The Commercial Lender Training Program for entry level personnel is a five-session, full day program, meeting on Wednesdays, that provides students with entry level training beginning with key basics, including financial statement analysis.  You’ll find a detailed syllabus included below.  Please be sure to review it!  This program is appropriate for anyone at your institution who has or will have responsibilities within the bank’s commercial lending area. Please note, class size will be limited, so you are encouraged to register early!  Deadline to register is April 23rd, as materials must be ordered in advance.

INSTRUCTOR
We are pleased to welcome Harris S. Berger.  Harris has been a financial services executive with 45 years of successful banking experience, including 32 years of commercial lending and risk management, at two major U.S. banks.  Most recently, he has been actively consulting and providing professional training for several financial services organizations, focusing on commercial lending, credit risk management, international development, and portfolio loan review.  Harris has successfully facilitated this program for our neighboring state banking associations as well. 

SYLLABUS
Texts listed below will be provided to registrants: 
•      Analyzing Financial Statements, A Decision Tree Approach, Part 1 - 8th Edition (“AFS”)
•      Commercial Lending, A Decision Tree Approach, Part 2 - 7th Edition (“CL”)
•      Additional Cases and Handouts at Class Sessions 

SESSION 1 – MORNING
Introduction
Fundamental credit assessment principles (Sustainability, Financial Flexibility, Debt Capacity, Ways Out)
Business legal entities (Focus on tax and liability differences)
Why businesses borrow
Overview of a financial institution’s risk management structure
Assessment of borrower and guarantor character and willingness to pay

Preparation: AFS Chapters 1-3, CL Chapter 1

SESSION 1 – AFTERNOON
The components of the assessment model
The working capital cycle and the financing gap
Financial statement alternatives (Compiled, Reviewed, Audited)
Intro to financial statement analysis (Earnings, liquidity, Leverage, Cash Flow, Debt Service Coverage) 

Preparation: AFS Chapters 4-7, 8 

SESSION 2 – MORNING
Financial statement analysis and cases (Continued)
The Adjusted Working Capital Model
Income property cash flow analysis (Focus on IRS 1040 Schedule E)

Preparation: AFS Chapters 9 and 10 

SESSION 2 – AFTERNOON
Analyzing personal financial statements
Overview of personal and business tax returns as sources of borrower and guarantor information

Preparation: AFS Chapters 12-15 

SESSION 3 – MORNING
The Global Cash Flow Model
Credit due diligence and information requirements
Basic credit facilities (Lines of Credit, Revolving Credits, Term Loans)
Trade finance alternatives (Letters of credit covered in detail Session 5)
Basic concepts of real estate lending

Preparation: CL Chapter 2 

SESSION 3 – AFTERNOON
“Ways Out” analysis and sources of repayment
Industry and management analysis
Credit structuring Loan Documentation (Notes, Credit Agreements)
Covenants, Material Adverse Change clauses (“MAC”)
Lending against government receivables (government contractors, healthcare providers)

Preparation: CL Chapters 5-7

SESSION 4 – MORNING
Loan Documentation – Continued (Collateral, Guarantees, Subordinations)
The concept of collateral perfection
Misc. related documentation/structural issues (Credit Agreements, Landlord Waivers)
Bank loan syndications and participations
Real estate appraisals
Overview of SBA loans

SESSION 4 – AFTERNOON
The Beauty of Post-Closing Memos
Credit administration topics (Risk Ratings, Credit Approval Memos)
Loan monitoring; Loan monitoring exercise
Basics of interest rate swaps

Preparation: CL Chapters 3 and 4

SESSION 5 – MORNING
Overview of asset based / formula lending
Problem loans – identification and management
Overview of workouts and the bankruptcy process

Preparation: CL Chapter 9

SESSION 5 – AFTERNOON
Business life cycles
Overview of federal regulations relevant to commercial lending
More on Letters of Credit (Documentary and Standby/Clean)
Lender Liability concepts
Final thoughts

Preparation: CL Chapter 8