A comprehensive five-day course focusing on fundamental commercial credit concepts and the credit decision-making process.
April 23-27, 2018 – Doubletree Hotel, Tarrytown; or
October 2018 – Albany
NYBA’s Making the Commercial Credit Decision curriculum is a learning experience focusing on the commercial credit decision-making process. This experience includes one online course, interactive classroom sessions, exercises/case studies, and evening activities to apply and reinforce all concepts.
What Students Are Saying:
“Jeff Judy was an excellent instructor. He made the course material interesting and entertaining. I learned a lot and feel that I will be a better banker after this course.” March 2017
“A very insightful class. I am excited to go back to work.” March 2017
“Jeff did a great job of challenging my thought process. I really enjoyed the level and depth of the material we covered. And, I loved the fact that he challenges the “status quo” in terms of thinking about credit.” April 2015
“Jeff is a great instructor and presents real life examples to help us understand that these things actually happen. The course was an eye opener as to what my job really is compared to what I have been doing.” November 2015
“Jeff is very knowledgeable and helped me see the big picture side of credit. His insight and comments will be very beneficial in my growth and job performance going forward.” November 2015
Outcome: The curriculum is designed to build skills, increase confidence, enhance awareness and application of fundamental commercial financial and credit analysis tools. The course is also designed to help generate more constructive conversations with business owners, improve the quality of credit decisions, and increase the effectiveness of the resulting credit memos. 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.
Audience: The course is intended to benefit anyone involved in the commercial credit decision making process, including:
- Credit analysts and new commercial lenders (1-4 years of experience)
- Small business relationship officers
- Branch managers seeking to enhance their commercial credit skills
- Commercial bankers seeking an update and/or review of credit skills
- Loan review personnel
Participants should have a basic understanding of business financial statements.
Instructor – Jeff Judy has a practical, down-to-earth approach, a unique and highly effective instructional style 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.
“Jeff challenged us to think beyond the numbers and understand the business from a credit perspective. One of the takeaways was that we are not paid to make loans, but to manage risk. This course taught me how to look beyond the numbers and understand the loan request as a credit risk decision.” Fall 2013
Pre-Session Activities – Preparing for the Classroom Experience
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.
Pre-Session Assignment: During the classroom experience, the participant will be working with two case studies to reinforce the concepts and tools being taught in the class. Prior to the start of the course, the participant will read and complete an activity related to these cases.
Prerequisites: While there are no required prerequisites, bankers with limited background in financial statements may wish to take some self-paced online courses for basic concepts. These courses may also be a useful refresher for those with some experience. Recommended courses include: Personal Tax Return Analysis; Introduction to Analyzing Financial Statements. Cost: $130 members; $195 non-members for the two courses, or $95 per course for a single enrollment. Enroll on the registration form.
Mentors: Each bank should assign a senior lender to serve as a mentor to the employee enrolled in the course. Mentors are encouraged to meet with the enrolled employee following the course to review and reinforce the classroom experience and relate it to internal polices and procedures.
Financial Analysis Tools – Gathering Information – Assessing the Numbers and Individual and Business Creditworthiness
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
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
Credit Analysis Tools – Assessing Business Performance; Structuring the Loan; Communicating the Decision
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 Credit 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
- Credit Memo and Presentation
Case studies and exercises are used throughout the course to illustrate elements of the loan decision-making process.
Pulling It Together: Each participant will be placed in a small group that meets periodically over the course of the week. On the last day, each team will present their risk assessment of an assigned case. The presentation is an opportunity for participants to use the tools and concepts taught in the class in a practical application.
Beyond the Classroom: In order to maximize the learning, participants are expected to spend about 45-60 minutes each evening on a class assignment. For those staying at the hotel, group collaboration will be encouraged.
Fees include tuition, instructional materials, refreshments, luncheons, self-paced online course. Cost of accommodations are not included.
• $1,700 NYBA members
• $1,900 non-members
October 23-27, 2017 – Hilton Hotel, 40 Lodge Street, Albany, NY; Room rate: $179 single; call 866-691-1183 and mention NYBA meeting to receive the preferred rate or click here to reserve online.
Mon: 10:00 am—5:30 pm (registration from 9:30 am on)
Tue: 8:30 am—5:30 pm
Wed: 8:30 am—5:30 pm
Fri: 8:30—3:00 pm
Note: A class assignment each evening should take about 45-60 minutes to complete. Plan travel accordingly.
Questions: NYBA Professional Development at (212) 297-1679 or firstname.lastname@example.org.