Lending and Credit Curriculum

Consumer Lending	This seminar introduces the consumer lending process from the initial application to closing and documentation.  It will follow the steps required to successful consumer lending including the: Application, Interview, Investigation, Evaluation, Decision, Regulation and Documentation. The method of instruction will utilize case studies to reinforce the concepts presented in the course and improve the quality of the credit decision.  This course is offered at the Basic, Intermediate and Advance levels.
Commercial Lending	This course is designed for Commercial Lenders and can be adjusted to teach bankers with minimum experience to those with many years of experience.  Topics include:  Attributes of Successful Commercial Lenders, Financial Statement Review, Ratio Analysis, Cash Flow Analysis, Break-Even Analysis, Financial Forecasting, Sustainable Growth Analysis, Loan Structuring, Writing an effective Credit Memorandum and Loan Documentation.  This course is offered at the Basic, Intermediate and Advance levels.
Writing Credit Memoranda	After a detailed credit analysis of a loan request has been performed, it is now time to communicate your findings in writing.  Credit memoranda are a primary means of communications within the banking industry and serve three functions: 1) they provide information on the condition and status of a customer relationship; 2) they provide a record of thoughts and actions and 3) they support or recommend action.  The purpose of this course is to teach skills required to write an effective credit memorandum, which places emphasis upon factors or trends that are important without the need to state the obvious.  In short, the credit memo should present relevant, material facts and the writers’ thoughts and opinions.  Remember, anything you write in a credit memorandum will become public record if you find yourself in court with a borrower.
Construction Lending	This course is designed to provide lenders with the necessary skills to identify and underwrite risks inherent in this type of lending. The target borrowers of this Construction Lending course are: Individuals constructing their single family residences (Owner/Occupant); Developers who transform raw land into build-able lots and Builders of 1-4 family residences.  We will examine the characteristics and risks inherent with these borrowers and how to underwrite them and the real estate project under construction.  It will focus on the following areas: Prerequisites for Successful Construction Lending, Analyzing and Underwriting the Owner/Occupant and Builder/Developer, Structuring the Construction Loan, Managing Construction Loan Advances, Financing Land Acquisition and Land Development, Construction Lending Documentation, Problem Areas in Construction Lending
Training the Credit Analyst	Training the Credit Analyst is course designed to address the needs of credit analysts and reinforce the credit skills of current credit analysts and commercial / consumer lenders in all aspects of credit analysis.  It begins with a thorough review of the components of financial statements and proceeds into analyzing the financial statements by preparing a financial spread and then interpreting the results.  The course will teach how to write effective and comprehensive credit analyses which highlight and detail the important trends shown on the financial spread sheet.  Other analytical tools that will be covered in detail include:  Cash Flow Analysis; Break-Even Analysis; Ratio Analysis, Financial Projections; Sustainable Growth Rate Calculation; Sensitive Analysis; Industry Comparison Analysis and Loan Grading.
Financial Statement Analysis	This course is designed to review the components of a complete set of financial statements in order to provide a deeper understanding of this vital source of information.  A firm understanding of financial statements will enhance your ability to calculate ratios, determine the operating cycle, and calculate cash flow analysis, structure loans and other types of analysis.  It will also enhance your interpretations of what is calculated so that you will be able to write a more effective credit memorandum.
Cash Flow Analysis	This course is designed to assist bankers in calculating cash flow utilizing the Uniform or Universal Cash Flow Analysis method (UCA), which is often used by bankers to determine the flow of cash into and out of a business entity.  Another purpose of this course is to compare the UCA method with the Indirect Cash Flow method, which is often utilized by accountants in preparing the Statement of Cash Flows as part of a set of financial statements.  It will begin by examining the differences between an Accrual Basis and Cash Basis financial statement then proceed to examining the key accounts on the balance sheet and income statement and how these accounts are utilized to determine the source of cash and how the cash was spent.
Loan Review	This one day course is designed to provide community banks with valuable information regarding their loan administration function.  The overall objective is to insure a quality loan portfolio and maintain an adequate reserve for identifiable loans and lease losses.   This course recognizes the uniqueness of Community Banks in their approach to insure a high quality loan portfolio through an effective loan grading system and well documented credit files.  Regulatory guidelines including: Safety and Soundness Principles, Appraisal Standards, newly suggested method of calculating the Allowance for Loan and Lease Losses, Regulatory Compliance and others will be covered.
Uniform Commercial Code Under Revised Article 9	The ultimate goal of this seminar is to provide the participants with an understanding of how to document, close and record secured transactions that are covered by Revised Article 9 of the Uniform Commercial Code.  After taking this course the participant should have a good working knowledge of preparing the Financing Statements properly; Utilizing the proper Collateral Descriptions; Understanding the Collateral Categories; Filing the Financing Statements in the proper location and other areas of concern.
Lending to Non-Profit Organizations	Non-Profit Organizations (“NPO”) generally comprise a large percentage of outstanding loans on the books of community banks.  They include: Religious Organizations, Charities, Civic Organizations, Volunteer Organizations and Private Schools. The skills required to understand and underwrite the credit risks involved in this type of lending is quite different from lending to For Profit Organizations (“FPO”).  This course will introduce Statement of Financial Accounting Standards 116 (Accounting for Contributions Received and Contributions Made); and Statement of Financial Accounting Standard 117 (Financial Statements of NPOs).  These Standards replace Fund Accounting, which was used previously by NPOs for many years.
Lending to Churches	Church loans carry a higher risk level because  usually they are un-guaranteed; the collateral is considered “Special Purpose” with limited resell value; the primary source of repayment is dependent upon contributions from parishioners whose behavior is often volatile if a difference of opinion on the church’s direction exists; the quality of financial statements may not be in compliance with Generally Accepted Accounting Procedures, among other risks  This course will cover the major church lending risks and discusses how a bank can prudently manage these risks by exposing participants to the appropriate methods of analyzing and lending to Religious Organizations.  This course will also introduce Statement of Financial Accounting Standards 117 (Required Financial Statements Presentation for NPOs).
Lending to Service Companies	Our economy is becoming more or a Service Economy and many of our clients provide services rather than making or selling a product.  This course is designed to analyze the unique features of service companies.  They typically rely heavily on providing intellectual services which cannot be used as collateral for loans.  The course will teach the participant how to identify the requisites for successful service companies, to identify risks, underwrite those risks; analyze accounts receivable which is usually the major asset for these companies and how to analyze working capital requirements.
Officer Calling and Business Development	This course is designed to provide the participant with the skills necessary to prospect, prepare and make an effective business development call.  It will allow the participant to identify there individual strengths and weaknesses, how to change their behavior, know the purpose of calls and their differences and how to make an effective call in order to allow for the highest chance of being successful.
Commercial Lending Clinical Workshop	The purpose of this new workshop is to enable the participants to discover their level of proficiency in the commercial lending.  With these results, the participant will then know the critical areas where strengthening is required in order to become an effective commercial lender.  The course is composed of a real life comprehensive case study where the participants must read and solve the case.  In doing so, they must demonstrate their commercial lending skill levels including: Prospecting for good business, Analyzing management, business and credit risks, Writing an effective credit memorandum, and Required loan documentation procedures
Consumer Lending Clinical Workshop	The purpose of this new workshop is to enable the participants to discover their level of proficiency in the consumer lending.  With these results, the participant will then know the critical areas where strengthening is required in order to become an effective consumer lender.  The course is composed of a real life comprehensive case study where the participants must read and solve the case.  In doing so, they must demonstrate their consumer lending skill levels including: Prospecting for good business, Knowledge of the Application Process, Knowledge of the Investigating Process, Knowledge of the Evaluation Process, Knowledge of the Decision Process, Knowledge of Consumer Loan Documentation, and Knowledge of Compliance Rules as they relate to Consumer Lending.
Specialized Lending	In the community banking environment, lenders receive loan requests from many and varied types of borrowers.  Unlike lenders in large financial institution who can afford to specialize in specific types of loans, community bank lenders must be generalists and have a broad base knowledge of lending to different types of borrowers.  This course is designed to provide the community bank lender with skills to analyze non-traditional borrowers including: Asset-Based Borrowers, Analyzing Developers and Builders, Analyzing Non-Profit Organizations, Analyzing the Personal Guarantor and Multi-Business Owner, Analyzing Service Companies.
Consumer Loan Documentation	The purpose of this one-day workshop is to provide participants with a good understanding of the Consumer Loan Documentation process.  Participants will be exposed to the five steps in the loan documentation process, which include: Identifying the Borrower, Identifying, Valuating and Protecting the Collateral, Evidencing the Debt, Attaching the Collateral, and Perfecting the Security Interest.  The participant will also be able to identify each document required to meet each step of the documentation process in accordance with the particular transaction.
Commercial Loan Documentation	The purpose of this one-day workshop is to provide participants with a good understanding of the Commercial Loan Documentation process.  Participants will be exposed to the five steps in the loan documentation process, which include: Identifying the Borrower, Identifying, Valuating and Protecting the Collateral, Evidencing the Debt, Attaching the Collateral, and Perfecting the Security Interest.  The participant will also be able to identify each document required to meet each step of the documentation process in accordance with the particular transaction.  Types of loans to be covered include: unsecured loans, loans secured by personal property, loans secured by real property and loans secured by other non-traditional type collateral.
Accounting Principles for Lenders	The purpose of this course is to expose the participant to the flow of accounting from identifying economic events and how they are reported in financial statements.  Another purpose is to demonstrate how the Balance Sheet, Income Statement, Reconciliation of Net Worth and Cash Flow Statement are developed and connected to each other.  The instructor is a banker; therefore, the approach to the credit analysis process will be from a banker’s perspective. Case studies will be used to reinforce concepts presented.  Specifically, the course will cover:, Underlying Assumptions Used by Accountants, Rules of Debits and Credits, Construction of the Balance Sheet, Income Statement, Reconciliation of Net Worth and the Statement of Cash Flow, Difference between Accrual and Cash Basis Accounting, Detail Analysis of Accounts Receivable, Inventory and Fixed Assets, Analysis of the Notes to the Financial Statements and Analysis of Types of Financial Statements and meaning of CPA’ Opinions
Loan Portfolio Management	This one day program is designed for anyone with management responsibilities of a part or the entire bank’s Loan Portfolio.  The program begins with a discussion of credit policy formation which is the foundation of any loan portfolio followed by reviewing the credit approval process.  We will explore risk rating the bank’s portfolio and the impact this and other factors will have on the Allowance for Loans and Lease Losses.  The course will also review various management reports that are required to maintain a quality loan portfolio.  Discussions on managing lenders and regulatory reviews will be included as well.
Problem Loan Management	This course is designed to provide participants wit the requisite skills to recognize and manage problem loans.  It focuses on systems and processes, which will enable financial situations to successfully manage the risk level in its loan portfolio.  It will identify the most effective administrative structure for managing problem loans.  Topics to be addressed include: Workout Guidelines and Strategies, Early Warning Signs of Trouble, Trouble Debt Restructuring and the Allowance for Loan and Lease Losses.
Effective Collection Techniques and Bankruptcy Review	This course is designed to offer proven techniques for managing the financial institution’s past-due accounts.  It focuses on systems and processes, which will enable a bank to successfully manage the risk level in its loan portfolio.  It will provide information on composing collections letters and organizing the collection process.  The course will also review an effective collections policy, the collection management process, the role of the collector, and effective consumer and commercial collection techniques.
Loan Participations	This course is designed to provide the basic requirements for successful loan participations or syndications.  The information presented in this presentation will be helpful to banks buying/selling participations among affiliate banks or to unrelated institutions. At the end of this session, the participant should have a firm understanding of the minimum required standards to purchase and sell loan participations or participate in loan syndications in order to remain in compliance with safe and sound banking practices.  The information to be covered includes:  Purpose of Loan Participations and Basic Rules, Difference between Loan Participations and Loan Syndications, Regulatory Rules Governing Loan Participations, Role of the Originating Bank and its Relationship with Participating Banks, Legal Rights of Participating Banks, Review of the Certificate of Participation and other Required Legal Documentation, Basic Operational Procedures Required for Loan Participations, Latest Development on the American Institute of Certified Public Accountants concerns about LP
Calculating the Allowance for Loan and Lease Losses	The Allowance for Loan and Lease Losses (“ALLL”), which was originally referred to as the “Reserve for Bad Debts,” is a valuation reserve established and maintained by charges against the bank’s operating income.  As a valuation reserve, it is an estimate of uncollectible amounts that is used to reduce the book value of loans and leases to the amount that is expected to be collected.  This program is designed to review the elements and thought process in establishing and maintaining an adequate ALLL level.  The Allowance is watched not only by the major agencies responsible for supervision of the banking system, but also by the American Institute of Certified Public Accountants, the Internal Revenue Service and the Securities & Exchange Commission.  All have similar but yet, conflicting perspectives on how much of an allocation should be contained in the ALLL.
Analyzing the Self Employed Borrower	This course is designed to review a full set of tax returns for the purpose of converting Taxable Income into Cash Flow Income in order to determine the ability of an individual to service any proposed debt.  It will start by walking through a set of personal set of tax return while explaining the purpose of each form and indicating the adjustments that must be made to calculate cash flow income.  Case studies will be used heavily to teach this session.
Financial Forecasting and Developing Projections	Banks often extend loans to borrowers with terms exceeding one year.  These Term Loans generally finance capital assets used to generate revenue for the firm.  Unlike short term Lines of Credit, where the primary source of repayment is derived from conversion of assets, Term Loans are repaid from expected Cash Flow of the prospective borrower.  Bankers’ analyses generally consist of examining historical Cash Flow, which may or may not indicate what may happen during the next fiscal year.  In order to properly identify the probable outcome of expected performance, Financial Forecasting is an important tool. This session is designed to provide participates with skills required to develop Financial Forecasts.  It starts with analyzing historical Cash Flow and utilizing this information to project expected Cash Flow as a means of repaying Term Loans.  A key component to developing a reasonable forecast is management’s assumptions.
Customer Service	This one-day seminar will provide information to communicating effectively with customers and co-workers, understanding the need for product knowledge information, working with difficult customers, working as a team to achieve common goals, developing personal customer service goals, and appreciating the customer.
Teller Supervisor	This one day seminar will provide information on reducing teller turnover, creating an atmosphere of better morale, and improving customer service.
Teller	This one day seminar will provide information on reducing teller losses, identifying negotiable items, cash drawer procedures, compliance, security, and improving customer service.