2025 Commercial Credit Analysis Fundamentals

Commercial Credit Analysis Fundamentals

Commercial Credit Analysis Fundamentals provides bankers with foundational principles for effective commercial loan underwriting and credit analysis.  This two-day interactive workshop will equip bankers to analyze the “whole credit” and make evidence-based loan approval and structuring recommendations.  These skills are vital in today’s community banking environment, where bankers must have the knowledge and flexibility to respond to a wide range of loan requests.   

The instructor’s facilitation approach encourages engagement, which enhances the participant learning experience. Attendees will apply lending, underwriting, and credit analysis principles through class discussion, real-world examples, and case studies. Worksheets for calculating Debt-to- Income, Debt Service Coverage, and Global Debt Service Coverage are included.  

INSTRUCTOR:

Christie Drexler
Drexler Consulting, LLC

Benefits of the Series:
•    Gain a solid foundation for a career in small business lending, commercial lending, retail lending, credit analysis, or loan review.
•    Become aware of the common mistakes and pitfalls in commercial lending and credit analysis.
•    Analyze financial information presented in business and personal tax returns.
•    Effectively utilize financial spreading software and interpret information provided in the various spreading reports including Common Size Financial Statements, UCA Cash Flow Statements, Financial Statement Ratios, and Projections.
•    Understand why knowledge of UCA cash flow analysis is an under-valued, yet critical skill for all small business and commercial bankers.
•    Fully analyze relevant details, understand and mitigate key risks, and clearly summarize “the story” of the credit in your credit memo.
•    Build your commercial lending competence and confidence and increase your credibility with customers, credit partners, senior managers, and regulators.

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

Topics Covered Include:

• Today’s Commercial Lending and Community Banking Environment
• Types of Borrowers/Legal Entities
• Defining the Borrowing Need and Sources of Repayment
• Credit Analysis 101:  Drilling Down into the 5 C’s of Lending
• Calculating Loan to Value, Loan to Cost, Loan to Margin, Debt to Income, and Debt Service Coverage
• Identifying Sources of Loan Repayment
• Why Fair Lending Requires Consistency in Underwriting
• Structuring the Loan:  Aligning Borrowing Need, Repayment Source and Timing, and Collateral with Loan Type and Terms
• Types and Quality of Financial Statements
• Overview of Balance Sheet, Income Statement, Statement of Cash Flow, and Statement of Changes in Net Worth/Retained Earnings
• Evaluating Guarantor Support and Analyzing Personal Financial Statements
• Calculating Global Debt Service Coverage and Global Debt to Income
• Analyzing Personal Tax Returns and Key Schedules
• Analyzing Business Tax Returns and Key Schedules
• When and Why to Request K-1’s and/or Business Tax Returns
• Application and Importance of Trend Analysis, Common Size Analysis, Ratio Analysis, Industry Comparative Analysis
• Working Capital Analysis and the Cash Conversion Cycle
• Beyond Traditional DSC:  UCA Cash Flow Analysis
• Cash Flow Projections and Sensitivity Analysis
• Writing Effective Credit Memos
• SWOT Analysis:  Risk Identification and Mitigation
• Types and Uses of Loan Covenants
• Making Loan Recommendations and Assigning a Loan Grade/Risk Rating
• Your Critical Role as a Relationship Builder and Trusted Advisor to Key Stakeholders
• Ongoing Underwriting/Loan Monitoring and Growing the Bank

INSTRUCTOR INFO:
Christie Drexler is the President of Drexler Consulting, LLC, a financial services consulting and training business founded in 2020.  Drexler Consulting focuses on developing purpose-driven, competent, and confident servant leaders in all roles of banking. Drexler Consulting partners with banks and bank associations across the United States to deliver Lending, Retail Banking, Business Development, Customer Service, and Management and Leadership Training. Drexler Consulting, LLC is an Alliance Partner of Performance Solutions, Inc., which has served the banking industry for more than forty years and specializes in offering BSA and Compliance Training throughout the United States.

Prior to founding Drexler Consulting, Christie had accumulated 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.