Credit Analyst Development Program

Pre-Requisites

Registration must be received by April 1, 2020 to qualify for early bird pricing.

WBA Members: $2,450 early bird, $2,950 regular | Non Members: $2,850 early bird, $2,950 regular


THE ROLE OF A CREDIT ANALYST WITHIN THE BANK
April 28, 2020
This first session of the Credit Analyst Development Program will provide a clear understanding of the role of a credit analyst and why it is a vital part of the credit underwriting process. One habit of a successful bank is the ability to identify, measure and manage risk in the lending process. The credit analyst has a paramount role in the credit decision process.

SESSION HIGHLIGHTS
Students will develop an understanding of the following areas of banking:

  • The role of commercial lending in the banking industry
  • Characteristics of a successful credit analyst
  • Skills required to be successful including: what information is required to match the loan request; best practices in spreading financial statements; knowing the right questions to ask
  • How to communicate analytical results to more senior lenders
  • Products and services offered by banks, including depository and lending services
  • Review of the regulatory agencies and banking regulations that affect commercial lending

Instructor: Jeffery Johnson, President, Bankers Insight Group, Atlanta, GA


ACCOUNTING BASICS/REFRESHER
April 29, 2020
This session will provide participants with a refresher on the basics of accounting. It will demonstrate the ten step accounting cycle leading up to the creation of the income statement, statement of owner’s equity, balance sheet, and statement of cash fl ows and how these financial statements are connected to one another. Numerous “hands-on” examples will be included to reinforce the accounting concepts.

SESSION HIGHLIGHTS
Students will develop an understanding of the following areas of banking:

  • The four major financial statements: income statement, statement of owner’s equity, balance sheet, and statement of cash flows
  • Rules of debits and credits
  • Accrual versus cash-basis accounting
  • Adjusting entries
  • Accounting for inventory and receivables
  • Long-term liabilities and depreciation
  • Analysis of notes to the financial statements
  • Types of financial statements and the CPA opinion

Instructor: Jeffery Johnson, President, Bankers Insight Group, Atlanta, GA


EMPLOYING BASIC FINANCIAL ANALYSIS TOOLS
May 12, 2020
Financial statements are the basis for financial analysis, valuable as a loan monitoring tool used to broaden and deepen the borrower relationship. This session will demonstrate the development and use of comparative and common-size analysis, ratio analysis and cash flow analysis. To make these tools more efficient and enhance the value to the lender the session will introduce “30 Second” analysis and a Loan Screening Worksheet. Participants will learn how to use the analytical tools to underwrite new relationships, monitor existing relationships, identify business development opportunities and add value to the borrower relationship.

SESSION HIGHLIGHTS

  • Comparative and common-size analysis including a “30 Second” review
  • Use business financial statements, explain the calculation and interpretation of six classes of ratios commonly used in commercial loan financial analysis
  • Introduce a Loan Screening Worksheet built around the 5Cs of Credit which utilizes three key ratios
  • How ratios can be used to determine when it is appropriate to term out a line of credit
  • How ratios included in covenants in a loan agreement effectively limit:
    • the borrower’s ability to grow
    • the total amount of debt and the amount of short term debt the borrower can have
    • the amount the owner can take in salary and distributions
  • Review the concept of sustainable growth
  • How to use business financial statements to identify opportunities to broaden and deepen the customer relationship
  • How to use business financial statements to assess risk factors in a lending opportunity
  • Apply the concepts in three case studies

Instructor: John Barrickman, President, New Horizons Financial Group, Amelia Island, FL


BASIC PERSONAL & BUSINESS TAX RETURN ANALYSIS
May 13, 2020
This session will provide participants with a better understanding of the often complex and confusing topic of taxes. The first part of the day will concentrate on personal tax return analysis, while the second will focus on the analysis of various business tax returns.

SESSION HIGHLIGHTS

  • Review the basic structure of the personal tax return Form 1040 and supporting Schedules including Schedules K-1
  • Prepare a personal cash flow from information obtained from Form 1040 and supporting schedules
  • Demonstrate how to identify a potentially fraudulent tax return
  • Review the structure of C Corporation (Form 1120), S Corporation (Form 1120 S), and Partnership including LLCs (Form 1065) tax returns and Schedules K-1.
  • Discuss the interpretation of Schedules M-1 and M-2 of corporate tax returns
  • Utilize the business tax return to construct a “30 Second” Analysis and complete a Loan Screening Worksheet
  • Integrate business and personal cash flow into global cash flow
  • Apply the concepts in three case studies

Instructor: John Barrickman, President, New Horizons FinancialGroup, Amelia Island, FL


LOAN STRUCTURE, DOCUMENTATION, AND COMPLIANCE
June 16, 2020
This session will cover the interrelated disciplines of structuring and documenting a commercial loan, along with meeting applicable compliance requirements. Appropriate management of these areas will assist the bank in maintaining a “vibrant” loan portfolio. Concepts will be reinforced through a comprehensive case study.

SESSION HIGHLIGHTS

  • Review basic “business” structures from C Corporations to LLC’s
  • Explore the six elements of loan structure: loan purpose, sources of repayment, adequate amount, appropriate term, adequate support, framework for monitoring
  • Summarize the four elements of loan support: collateral, guarantees, loan agreements, subordination agreements
  • Highlight commercial loan documentation issues including promissory notes, security agreements, and guarantees
  • Discuss loan pricing and monitoring issues
  • Review current compliance issues: Equal Credit Opportunity Act (Reg. B); Truth in Lending Act (Reg. Z); Bank Secrecy Act (BSA); Fair Credit Reporting Act (FCRA); Fair Debt Collection Practices Act (FDCPA); and UCC Article 9
  • Analyze comprehensive loan structure/documentation/compliance case study

Instructor: David Osburn, Founder & Managing Member, Osburn and Associates, Las Vegas, NV


BASICS OF C&I LENDING AND COMMERCIAL REAL ESTATE (CRE) LENDING
June 17, 2020

C&I Lending
We will begin with a brief overview of commercial and industrial (C&I) loan products including working capital lines of credit, ABL facilities, and equipment financing (loans/leases). It will include the structure and basic underwriting for these credit instruments, pricing, documentation requirements and other challenges in managing the C&I loan portfolio.

SESSION HIGHLIGHTS

  • Explore underwriting C&I loans including accounts receivable, inventory, and equipment financing
  • Review documentation, collateral, pricing, and managing of C&I loans

Commercial Real Estate (CRE) Lending
We will review the underwriting of a CRE loan, including assessingthe borrower, exploring loan structure, determining loan support, and calculating the cash fl ow of the property. Documentation, closing, and monitoring of CRE loans and related environmental issues will then be explored. This will be followed by a review of problem CRE loans and related collateral issues.

SESSION HIGHLIGHTS

  • Analyze the underwriting of a CRE loan including assessing the borrower, exploring loan structure and support, and determining cash flow
  • Address various loan documentation, closing, and monitoring issues as well as environmental concerns

Instructor: David Osburn, Founder & Managing Member, Osburn and Associates, Las Vegas, NV


* Attendance at WBA programs is limited to employees, officers and directors of WBA members, non-members eligible for membership in the WBA and members of other state banking associations which grant reciprocal privileges to WBA members.

Cancellation Policy: For all cancellations that occur up to seven days prior to the start date, a $50 cancellation fee will be charged. For cancellations with less than seven days notice, there will be no refunds. A substitute can attend at no fee. For cancelled courses and/or seminars, full fees will be refunded.
Cancellation Procedure: Cancellations must be sent in writing to the WBA office via email, fax, or mail. No refunds will be granted until a written cancellation request is received by WBA.