2024 Essentials of Commercial Credit Analysis Series - Part 1

Essentials of Commercial Credit Analysis Series - Part 1

Essentials of Commercial Credit Analysis provides bankers with foundational principles for effective commercial and real estate lending, commercial credit analysis, underwriting, and loan review.

Part 1: February 13-14 
Part 2: March 12-13

INSTRUCTOR:


Christie Drexler
Performance Solutions, Inc. 


Essentials of Commercial Credit Analysis provides bankers with foundational principles for effective commercial and real estate lending, commercial credit analysis, underwriting, and loan review.

This four-session series will prepare bankers to successfully analyze credits and make wise, evidence-based loan recommendations in today’s banking environment, where they must have the skills and flexibility to respond to a wide range of loan requests.  Participants may choose to enroll in the entire four-session series, or they may choose to enroll in individual sessions which meet their unique development needs.

The instructor’s facilitation approach encourages participant engagement and, thus, enhances their learning experience. Participants apply lending, underwriting, and credit analysis principles through real-world examples, practice problems, and case studies. Worksheets for calculating Debt-to- Income, Debt Service Coverage, and Global Debt Service Coverage are included.

Benefits of the Series:

• Gain a solid foundation for a career in commercial lending.
• Become more aware of the pitfalls of common lending and credit analysis mistakes.
• Understand why knowledge UCA cash flow analysis is an under-valued, yet critical skill for all small business and commercial bankers.
• Learn how to interpret and communicate “the story” conveyed in the financial statements.
• Become familiar with analysis provided by commonly used bank financial analysis software. 
• More effectively communicate with key stakeholders to improve loan decisioning and client service.
  
  

 Attendees are required to:

• Attend and engage fully in training.
• Bring a calculator to class.
• Bring printed copies of the training manuals and resource manuals to class.
• A laptop is recommended, but not required.

Session 1 - Introduction to Commercial Lending and Financial Accounting
Agenda includes:

• Lending in Today’s Community Bank
• 5 C’s of Credit Evaluation: Capacity, Character, Capital, Collateral, Conditions
• Types of Borrowers/Legal Entities
• Defining the Borrowing Need and Sources of Repayment
• Commercial Lending Lines of Business
• Types of Commercial Loans and Loan Structuring
• Financial Accounting 101 for Lenders
• Types and Quality of Financial Statements
• Evaluating Guarantor Support and the PFS
• Getting a Complete Loan Application

Session 2 - Analyzing Tax Returns and Calculating Traditional Cash Flow
Agenda includes:

• The Application of Traditional Debt Service Coverage
• Calculating Debt to Income for Consumer Loans to Commercial Borrowers
• Calculating Debt Service Coverage and Policy Considerations
• Calculating Global Debt Service Coverages for Business Owners/Guarantors
• Commercial and Consumer Fair Lending Compliance in Underwriting
• Analyzing Personal Tax Returns and Key Schedules
• Analyzing Business Tax Returns:  LLC, S-Corp, C-Corp
• When and Why to Request K-1’s
• Lessons Learned: CRE Problem Loans

ABOUT OUR INSTRUCTOR:
Christie Drexler is the Owner of Drexler Consulting, LLC, a financial services consulting and training business focused on developing purpose-driven, competent, servant leaders in all roles of banking.  In association with Performance Solutions, Inc. and Dianne Barton, Christie has offered training and consulting services through Drexler Consulting, LLC, for the past three years.

Christie has twenty-six years of direct experience in the financial services industry, working for both community and large regional banks. Her experience has been expansive to include successfully navigating retail and commercial banking careers.  She has served as Division President, Market President, Chief Credit Officer, Chief Retail Officer, and Regional Sales & Service Manager. Christie has a B.S. in Finance from Berry College and an MBA from Georgia College and State University. She is a passionate facilitator and coach who strives to live the values and leadership strategies she teaches in her training programs.