NYBA Making the Commercial Loan
Decision
A comprehensive six-day course focusing
on fundamental commercial credit concepts and the credit decision-making
process
May 15-17/June 5-7, 2012 •
Hotel Albany, State
& Lodge Streets, Albany, NY
Online
Application Brochure pdf
Introduced to strong praise in 2007,
NYBA's Making the Commercial Credit Decision curriculum consists
of two three-day modules focusing on the commercial credit
decision-making process. The curriculum also includes one
self-paced online course - Fundamentals of Small Business Banking -
as well as extension work outside the classroom. Classroom
sessions are interactive and include exercises to apply and reinforce
all concepts.
Outcome:
The curriculum is
designed to build skills, increase confidence and enhance awareness and
application of fundamental commercial financial and credit analysis
tools. The course is also designed to help lead to more
constructive conversations with business owners. Using this program provides your bank with the opportunity
to promote from within and build a credit staff that understands your
unique mission and culture.
Designed for:
Credit
analysts and new commercial lenders (up to 5 years' experience), small
business relationship officers and branch managers seeking to enhance
their credit skills and understanding. Participants should have a
basic understanding of business financial statements. See below
for suggested prerequisites available through ABA eLearning.
Instructor:
Jeff Judy, Jeff
Judy & Associates, has over 30 years of experience in banking and
credit training, and now heads his own consulting practice focusing on
credit administration, credit training, sales training and
culture. He has held a variety of credit-related positions and
offers the expertise that only hands-on experience can provide. He
is a long-time instructor at several national banking schools, including
the ABA Commercial Lending School and Stonier Graduate School of
Banking, and has designed and developed credit training curricula for
all levels of experience.
Pricing
Fees include tuition (both modules), instructional
materials, refreshments, luncheons, self-paced online course. Housing is not included.
$1,650 NYBA members; $1,850 non-members
Curriculum
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Module 1:
Financial
Analysis Tools - Gathering Information - Assessing the Numbers
and Individual and Business Creditworthiness (3 days)
Accounting Review -
discussion of accounting and financial statement issues related
to the bank's use of financial information for credit evaluation
purposes.
- Cash versus Accrual
- Balance Sheet Construction
- Income Statement Construction
- Common Size Calculation
- Ratio Calculation
Assessing the Individual
Borrower - discussion of tools for assessing the individual
as a commercial borrower and/or guarantor.
- Personal Financial Statement
Analysis
- Individual Tax Return Analysis
- Personal Cash Flow Analysis
- Role of Guarantor and
Assessment
Financial Analysis Process -
focuses on the financial statement analysis framework and its
use in performing credit analysis
- Common Size Analysis
- Ratio Analysis/Interpretation
- Balance Sheet/Income Statement
Linkage and Analysis
- Use of Cash Cycle Analysis to
Identify Short Term Needs
- Use of Cash-to-Cash Cycle for
Discussing Cash Impact by Type of Business
Cash Flow Analysis -
addresses key cash flow types (FASB, UCA, Traditional, Personal
and EBIT) and how each is used in the credit analysis process.
- Types of Cash Flow Analysis
and their Use in Assessing Risk
- Mechanics of each Cash Flow
Type to Understand Information Source and Use in Assessment
- Manual Calculation of each
Cash Flow Type to Understand Where and How Information is
Obtained
Module 2:
Credit
Analysis Tools - Assessing Business Performance; Structuring the
Loan; Communicating the Decision (3 days)
Qualitative Analysis -
provides tools to move from financial to credit analysis
- Industry, Business and
Marketplace Risk Analysis
- Management Analysis
- Projections of Future Cash
Flow
Loan Structure - focuses
on approaches and tools for managing the credit risk
- Types of Loan Structures
- Loan Management Tools,
including Covenants, Collateral, Pricing
- Loan Monitoring, Credit
Deterioration, Problem Loan Awareness
Communicating and Documenting
the Loan Decision - focuses on activities related to tying
the assessment together into a completed loan package.
- Legal Issues, including Lender
Liability, Environmental Issues, Business Organization; Loan
Documentation
- Loan Write-Up and Presentation
Case studies and exercises are
used throughout the course.
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Getting the Most
Our of Your Training Experience
This curriculum is built on the premise
that learning takes place both inside and outside of the
classroom. In addition to classroom instruction, the program
includes:
Online Course: Participants will
be enrolled in the ABA eLearning course - Fundamentals of Small Business
Banking (business legal structures, business operating cycle, life
stages of a typical business) to cover basic small business concepts.
Mentors: Each bank should assign a senior
lender to serve as a mentor while the employee is enrolled in the
course. Mentors are encouraged to meet with the enrolled employee
to review and reinforce the classroom experience and relate it to
internal polices and procedures.
Evening and Inter-Session
Assignments: In order to maximize the learning, participants will
be required to complete reading and/or assignments in the evenings
as well as between the two sessions. A case study will be
introduced during module one and used throughout the course to illustrate
elements of the loan decision-making process.
Prerequisites:
While there
are no required prerequisites, banks with limited background in
accounting or financial statements may wish to consider taking several
self-paced online courses for basic concepts. These courses may
also be a useful refresher for those with some experience.
Recommended courses include: Overview of Financial
Statements;
Personal Tax Return Analysis; Introduction to Analyzing Financial
Statements. Cost: $195 members; $295 non-members for the three
courses, or $95 per course. Enroll on the registration form or
click links.
Location/Accommodations:
Hotel Albany, A Hilton Affiliate Hotel, State & Lodge
Streets, Albany, NY 12207; 518-462-6611. A block of rooms
has been reserved at the rate of $152/night; mention NYBA meeting when
calling the hotel to make a reservation. The block of rooms will
be held until 3:00 pm, 30 days prior to arrival. After that date,
all requests will be handled on a space and rate available basis.
Questions:
Contact Elisa R.
Legg, NYBA, at 212-297-1679 or elegg@nyba.com.
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What our attendees are
saying...
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"I have been to many
training classes and this stands out as one of the very
best. Jeff Judy has a talent for teaching and engaging an
audience. He made clear concepts I had been struggling
with for some time. All newer loan officers and credit
analysts should take this class."
"I
couldn’t have asked for
a better instructor! He
kept everyone involved, had a great sense of humor and expertise
beyond belief."
"Jeff has an excellent
grasp of the material and has a broad base of experience; his
real-world examples added a lot to the course. The pace
was fast-moving and the material was relevant to my job."
"Jeff's teaching style
was great! I learned a lot from his focus on the tools and
concepts of credit analysis. I'll now have much more
productive conversations with potential borrowers."
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"An
investment
in knowledge
always pays
the best
interest."
Benjamin
Franklin
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