Archive for: Commerical Lending

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Controlling a Borrower’s Business Without Taking Control Through the Loan Agreement

Often times, a commercial banker may want to control their commercial borrowers’ business without taking control in an effort to protect the bank’s investment. It is never advisable for any bank to dictate the day-to-day decisions of any organization otherwise; the bank may face lender liability if the borrower follows the banks instructions but fails during the process. So, how can you control a commercial borrower without taking control of their business?

All loans have loan agreements. However, some loan agreements are more tangible than others. At one end of the spectrum are lengthy agreements that have been formally drafted by legal counsel. In the middle are pre-printed loan agreements, usually containing a security agreement that banks may use for nearly any type of credit extended. At the other extreme are completely informal oral agreements, which have little significance.

Many financial institutions take the position that loan agreements are simply too complicated and often attempt to avoid using them in loan transactions. However, loan agreements can benefit both the lender and the borrower. While the borrower must have sufficient latitude to operate the company, certain limitations must be placed on the business due to the financial institution’s credit exposure. Provisions in the loan agreement must be drafted to guarantee adequate cash is conserved by the borrower to ensure continued financial viability and to repay the financial institution’s loan.

In this webinar, we will discuss formal loan agreements that are generally used for commercial borrowers. In general, loan agreements are used for the following reasons:

  • Sets forth the agreement between the financial institution and the borrower by clearly and concisely defining the duties and responsibilities of both parties during the term of the loan
  • Establishes restrictions and qualifications on the borrower’s activities and financial condition, which are set out by affirmative and negative covenants
  • Causes the borrower and lender to work through various contingencies thus preparing an alternative plan of action that both parties can agree to abide by should the original plan become inoperable
  • Serves as a communication tool and monitoring device by requiring the borrower to submit certain documents at specified times and to require notification of the lender about certain plans of the borrower (Example: periodic financial statements and financial projections).

What You’ll Learn:

  • Define the loan agreement
  • Know When a loan agreement is required to monitor your borrowers’ activities
  • Understand the rights afforded by the loan agreement
  • Know the key covenants to insert to monitor your borrowers’ financial condition
  • Understand the relationship of the loan agreements with other loan documents

Who Should Attend?
This informative session is designed for Chief Risk Officers, Senior Credit Officers, Senior Loan Officers, Credit Administration Officers, Loan Review Personnel, Commercial Loan Officers, Consumer Loan Officers, Branch Managers, Credit Analysts, and Special Assets Officers.

Presenter Bio

Jeffery W. Johnson, MBA – Bankers Insight Group

Jeffery Johnson has been in financial services more than 40 years. He has been VP and senior lender for a large regional bank and SVP and commercial banking division manager for a community financial institution. Most of his career has been spent in credit administration, lending, business development, loan review, management, and training and development. Over the last 17 years, Johnson has provided training for several banking associations and individual financial institutions nationwide.

Johnson holds a bachelors in accounting from Morehouse College in Atlanta, an MBA in finance from John Carroll University in Cleveland, a Diploma of Graduation from the Prochnow School of Banking at the University of Wisconsin-Madison, and a Graduate Certificate in Bank Management from the First American Management Institute at the University of Pennsylvania’s Wharton School of Business.

Registration Options

  • Live Access, 30 Days OnDemand Playback, Presenter Materials and Handouts – $279
  • Available Upgrades:
    • 12 Months OnDemand Playback + $110
    • 12 Months OnDemand Playback + CD  + $140
    • Additional Live Access + $75 per person
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Loan Modifications: What Are the Compliance Issues?

This webinar will deal with the ins and outs of making changes to loans of all types. We’ll discuss the compliance and legal requirements, operational challenges, and impacts to borrowers, guarantors, and other parties to the loan. We’ll also deal with the threshold question: should the lender grant the borrower’s request in the first place; and if so, what accommodations or changes should be made?

The last year-plus has been a challenging environment to be sure. Almost every lender has had distressed borrowers that need help. What type of help should you provide? And when you make that decision, what compliance implications are involved? Making changes to existing loans is a challenging endeavor. Lenders are facing unprecedented requests to make changes to loans of all types — mortgages, credit cards, consumer loans, small business loans, and so forth. What are the critical compliance implications when dealing with these requests? What types of disclosures must be provided, if any? Must new appraisals be obtained (and how do we do that if appraisers can’t do on-site work?) Must rescission rights be provided? This webinar will deal with the ins and outs of making changes to loans of all types. We’ll discuss the compliance and legal requirements, operational challenges, and impacts to borrowers, guarantors, and other parties to the loan. We’ll also deal with the threshold question: should the lender grant the borrower’s request in the first place; and if so, what accommodations or changes should be made?

What You’ll Learn

  • Disclosure requirements, if any — it depends on how the changes are made
  • Appraisal requirements
  • Flood insurance
  • Tax implications
  • Defaults: what special requirements are in place?
  • Troubled Debt Restructuring (TDR) issues
  • Fair lending implications: disparate treatment and impact
  • Handling borrower requests and complaints
  • Dealing with government-backed loans (FHA, VA, Fannie/Freddie, etc.): new pronouncements
  • HMDA and CRA reporting
  • Consumer, mortgage, and commercial loan issues
  • BSA issues, including beneficial owner requirements
  • E-SIGN and Remote Online Notarization (RON) possibilities

Who Should Attend
This webinar is intended to anyone involved in the lending process, including loan officers, processors, closing agents, servicing professionals, compliance officers, auditors, customer service representatives, and senior management, among others.

Instructor Bio

Carl Pry is a Certified Regulatory Compliance Manager (CRCM) and Certified Risk Professional (CRP) who is a Managing Director for Treliant Risk Advisors in Washington, D.C. Through his working career, as well as through his experience as a banking attorney and officer, he has provided a variety of regulatory compliance and financial performance services to financial institutions and other clients throughout the country. He has written extensively regarding consumer and commercial compliance, tax, audit, and financial institution legal issues, and is a frequent contributor to and currently serves on the Editorial Advisory Board for the ABA Bank Compliance magazine. He has spoken at scores of banking, compliance, and state bar associations, and has conducted training sessions for financial institutions across the country.

Registration Options

  • Live Access, 30 Days OnDemand Playback, Presenter Materials and Handouts – $279
  • Available Upgrades:
    • 12 Months OnDemand Playback + $110
    • 12 Months OnDemand Playback + CD  + $140
    • Additional Live Access + $75 per person
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CRA Essentials

The federal bank regulatory agencies have not overhauled the Community Reinvestment Act (CRA) regulations since 1995, but they have constantly tinkered with the rules. The Federal Deposit Insurance Corporation, the Federal Reserve Board, and the Comptroller of the Currency published a proposed rule on May 5, 2022, to revise the CRA regulations and a final rule is expected sometime during 2023. However, programs still need to be maintained and managed. This program is designed to explore the current rules to ensure your bank is in compliance today!

Achieving an Outstanding CRA involves a lot of work for very little payoff. We suggest banks do the work needed for an Outstanding rating but if the effort comes up a little short then settle for a solid Satisfactory rating.

The failure to achieve a Satisfactory or Outstanding CRA rating can increase the difficulty in getting various applications approved by your federal regulator. Lower rating results in additional work to restore the rating. This program provides the information needed to achieve the top CRA rating.

What You’ll Learn

  • Performance tests, standards, and ratings
  • Assigned ratings
  • Assessment area delineation
  • Public file requirements
  • CRA notices
  • Community Development activities
  • An explanation of the adjustment to the asset-size thresholds used to define “small bank” and “intermediate small bank”
  • A review of recent redlining cases
  • A review of the recently published Questions and Answers, exam results, and CRA agreements
  • An explanation of how to obtain community development credit for COVID-19-related activities
  • A review of the interagency proposed rule.

Who Should Attend
The program is designed for loan officers, compliance officers, CRA officers, loan department staff, bank counsel, and auditors.

Presenter
Kimberly Boatwright is EVP and Director of Risk and Compliance at Compliance Resource, LLC, and has more than two decades of experience working in the financial services industry. Ms. Boatwright is a well-regarded financial industry risk and compliance professional with a strong background in program development and implementation. She is a thought leader who specializes in Fair Lending, Anti-Money Laundering, OFAC, and consumer compliance. During her career, she has worked for and consulted with all types of financial institutions helping to establish and evolve compliance and risk programs. She is a frequent public speaker, trainer, and author on compliance and risk management topics. Boatwright is a Certified Regulatory Compliance Manager and a Certified Anti-Money Laundering Specialist.

Registration Options

  • Live Access, 30 Days OnDemand Playback, Presenter Materials and Handouts – $279
  • Available Upgrades:
    • 12 Months OnDemand Playback + $110
    • 12 Months OnDemand Playback + CD  + $140
    • Additional Live Access + $75 per person
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Real Estate Construction Loans Start to Finish: Consumer & Commercial; Unique Issues & Landmines

Real estate construction loans can be tricky. From start to finish, this information-packed webinar will focus on RE construction loan issues. Designed to address both consumer and commercial construction loans, this webinar will help you prevent lending missteps – even in unique situations.

After This Webinar You’ll Be Able To:
Understand the special construction loan documentation that is required and why it is required
Properly create and perfect liens in real and personal property during the construction process
Address problems involving the general contractor and suppliers
Handle loan disbursement procedures and construction monitoring
Explain how to deal with change orders and cost overruns

Webinar Details
Real estate construction lending is perhaps the most complicated type of loan and certainly one of the riskiest that your institution can make.  Construction lending requires knowledge of unique lending processes and an understanding of how to manage these processes.  It is a trap for the unwary who think construction lending is simply making a real estate loan.  This webinar will explain the construction lending function from start to finish.  It will discuss both consumer and commercial construction loans and the landmines to avoid.

Who Should Attend?
This informative session is designed for any personnel involved in construction loans, including loan officers, loan operations personnel, compliance staff, attorneys, auditors, and managers.

Take-Away Toolkit

  • Loan closing checklist (list of loan documents and other items needed for construction loans)
  • Employee training log
  • Interactive quiz
  • PDF of slides and speaker’s contact info for follow-up questions
  • Attendance certificate provided to self-report CE credits

NOTE: All materials are subject to copyright. Transmission, retransmission, or republishing of any webinar to other institutions or those not employed by your institution is prohibited. Print materials may be copied for eligible participants only.

Presenters

Elizabeth Fast, JD, CPA — Spencer Fane LLP
Elizabeth Fast is a partner with Spencer Fane LLP where she specializes in the representation of financial institutions. Fast is the head of the firm’s training division. She received her law degree from the University of Kansas and her undergraduate degree from Pittsburg State University. In addition, she has a Master of Business Administration degree and she is a Certified Public Accountant. Before joining Spencer Fane, she was General Counsel, Senior Vice President, and Corporate Secretary of a $9 billion bank with more than 130 branches, where she managed all legal, regulatory, and compliance functions.

Registration Options

  • $279 – Live Webinar Access
  • $279 – OnDemand Access + Digital Download
  • $379 – Both Live & On-Demand Access + Digital Download
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CECL and the Call Report

Your March 31, 2023 Call Report will require new line items to be completed due to the Implementation of ASU 2016-13 and Accounting Standard Codification Topic No. 326 that is effective on January 1, 2023 for all calendar year institutions. This webinar will assist Call Report preparers, reviewers or auditors understand the various schedules and line items impacted by CECL reporting requirements.

With the implementation of ASU 2016-13 and Accounting Standard Codification Topic No. 326 rapidly approaching for all financial institutions, this webinar will assist Call Report preparers, reviewers or auditors understand the various schedules and line items impacted by CECL reporting requirements.

Participants will walk through the changes in terminology that become effective upon adoption of the Current and Expected Credit Losses (CECL) methodology for recording the estimated and expected losses on not only the loan portfolio, but any asset carried at amortized cost, to include debt securities held as available-for-sale and held-to-maturity. Participants will understand:

  • The transition from Allowance for Loan and Lease Losses (ALLL) to the Allowance for Credit Losses (ACL).
  • How to report assets that were considered purchase credit impaired (PCI) that become purchase credit deteriorated (PCD) upon adoption of CECL.
  • How to elect a phase-in of the negative impact to equity capital resulting from the day-one implementation entry.
  • How to determine your CECL transitional amount and your ACL transitional amount.
  • What goes into the calculation of the Adjusted ACL (AACL) that is required for capital ratio calculations and the amount includable in Tier 2 Capital.

What You’ll Learn

This webinar will provide the details of what is required to accurately report CECL related items in the following schedules:

  • Schedule RI provisions for credit losses and provisions for unfunded commitments
  • Schedule RI-A and the impact of your day-one CECL implementation entry
  • Schedule RI-E reporting the adjustments required in the ACL and Retained Earnings resulting from the day-one entry and beyond
  • Schedule RI-B Part II and the roll-forward of the ACL on loans, HTM and AFS debt securities and other assets determined to be PCD
  • Schedule RI-C Part II reporting the ACL by loan segment and HTM securities
  • Schedule RC and how to report loan balances and the ACL on loans, securities and other assets
  • Schedule RC-B HTM debt securities with an associated ACL
  • Schedule RC-C reporting loan balances
  • Schedule RC-G and reporting the ACL on unfunded commitments
  • Schedule RC-K and reporting averages and total assets
  • Schedule RC-N reporting loan balances
  • Schedule RC-O for large institutions that elect a phase-in of the negative capital impacts
  • Schedule RC-R Part I and Part II impacts on reporting capital adjustments and determining the ACL includable as Tier 2 capital

Who Should Attend
This review of selected Call Report schedules and reporting items impacted by CECL adoption will benefit anyone responsible for preparing, reviewing or auditing the Call Report to include personnel in accounting, lending and credit operations, and financial executives. This training will supplement annual comprehensive Call Report training recommended by bank regulators.

Presenter

Cynthia Dopjera, a Certified Public Accountant, has 38 years of experience focused on accounting and regulatory reporting for financial institutions. During the first 18 years of her career, Ms. Dopjera held various positions with responsibility across all operational areas, to include accounting, internal audit, call report preparation and review while working for community as well as regional banks.

In 2000, Ms. Dopjera joined the public accounting firm of Harper & Pearson Company, P.C., where she served as Practice Leader for the Firm’s financial institutions practice covering community and regional institutions. The Firm’s services included financial statement audit, accounting, tax preparation and filing, internal control audit, Call Report audit, loan and asset quality review, and design and implementation of internal controls over financial reporting frameworks for institutions regulated under FDICIA and Sarbanes-Oxley. In 2018, Ms. Dopjera retired from Harper & Pearson Company, and currently provides accounting, consulting, and training services to financial institutions.

Registration Options

  • Live Access, 30 Days OnDemand Playback, Presenter Materials and Handouts – $279
  • Available Upgrades:
    • 12 Months OnDemand Playback + $110
    • 12 Months OnDemand Playback + CD  + $140
    • Additional Live Access + $75 per person
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Commercial Real Estate Lending in Today’s Economy

This webinar will begin with a review of “commercial real estate” including types of properties and demand/supply in the “current” market.

The session will then cover the entire “loan process” by which a commercial real estate (CRE) loan is marketed, underwritten, approved, documented, “closed,” and monitored. The process will include a discussion of CRE underwriting techniques and loan documentation issues.

Additionally, strategies to handle a problem CRE loan will be addressed.

Objectives
Review commercial real estate including types of properties and demand/supply in the current market
Gain an understanding of how banks process CRE loans
Learn the steps of marketing, underwriting, approving, documenting, closing, and monitoring a CRE loan
Cover CRE loan underwriting techniques and documentation issues
Address problem CRE loan issues
Who Should Attend?
Commercial lenders, credit analysts, loan documentation specialists, relationship managers, branch managers, private bankers, and business development officers.

Presenter

David L. Osburn, MBA, CCRA, is the founder of Osburn & Associates, LLC, a Business Training & Contract CFO Firm that provides seminars, webinars, and keynote speeches for bankers, CPAs, credit managers, attorneys, and business owners.

His extensive professional background of over 30 years includes 21 years as a Business Trainer/ Contract CFO and 16 years as a bank commercial lender including the position of Vice President/Senior Banking Officer. Mr. Osburn has also been an adjunct college professor for over 30 years including College of Southern Nevada.

Registration Options
Live Plus Five (days) – $265
OnDemand Recording – $295
CD-ROM – $345
Live Plus Six (months) – $365
Premier Package – $395v

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GSB – Developing a Global Analysis of Property Holdings

In many instances of commercial real estate (CRE) lending, the risks to a borrower/owner/guarantor from contingent liabilities outweigh the strength of the property your bank is proposing to finance. How can you effectively evaluate the risks of these guarantees? This program provides a framework not only for arraying the various properties, but a strategy for determining the risk of individual properties. Yes, developing property cash flows for tax returns and other data is the first step, but bankers need to go deeper into estimating collateral value and any potential shortfall within the property that becomes a direct liability to your borrower/owner/guarantor. Due to the high incidence of banks requiring owners to guarantee a percentage higher than the person’s ownership percentage, minority interests in CRE create a more complicated analysis, even best case/worst case/most likely scenarios. Finally, issues such as property type, location, length of leases in place and strength of tenants quickly take the analysis beyond tax return or operating statement data.

Covered Topics

Net operating income (NOI) components and concepts
Understanding key variables within NOI: vacancy, management fees, replacement reserves and capital expenditures
Understanding cap rates and how they are used to link cash flow to property value
Using tax returns and customer rent rolls, plus issues with commercial leases
Unique characteristics of the major types of real estate
Transaction-level stress-testing of debt service coverage (DSC) and loan-to-value (LTV)
How to use a sample worksheet to explore the major issues, including stress-testing
Issues faced in the global analysis of the various holdings of the borrower/guarantor
Taking the global analysis beyond the face values of guarantees (contingent liabilities analysis)
Using the cash flow analysis as part of ongoing loan monitoring, including estimated property
values, not in lieu of appraisals, but as a key part of the overall CRE process
Brief look at residential rentals and related cash flow and property value issues

Target Audience
Commercial lenders, credit analysts and small business lenders; consumer lenders, mortgage bankers and private bankers; loan review specialists, special assets officers, lending managers and credit officers

Presenter
Richard Hamm, Advantage Consulting & Training

Registration Option

Live presentation $275

Recording available through Jan. 26, 2022

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Madison, WI 53718

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