Archive for: Credit Analysis

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Financial Statement Mapping

Financial statements and tax returns are the foundation for understanding the financial condition of businesses and other economic entities. This foundation must be understood by anyone who is responsible for analyzing them to make a loan decision or manage credit risks posed by the lending function of the financial institution.

Economic events will typically start through an entry onto the income statement and the results of that event will find its way to the balance sheet. In other words, whatever occurs on the income statement will end up on the balance sheet. For example, if cash is not collected at the point of sales or an obligation is not settled at the point of incurrence, it will flow to the balance sheet either as an asset, liability or net worth account. There are other economic activities that will be reflected on the balance sheet without first going through the income statement.

Understanding the relationship between the balance sheet and the income statement will enhance an analyst knowledge of why certain items from the income statement and the balance sheet are matched mathematically in a ratio calculation to determine a company’s liquidity, leverage, asset management capabilities, and operating performance. It will also provide the secrets to understanding how a financial statement prepared on an accrual basis is converted into a cash basis financial statement to determine the amount of cash generated or used by an economic entity.

What You’ll Learn

  • Have a better understanding of the income statement and the balance sheet
  • Understand the flow of data from the income statement and other sources and how it will affect the balance sheet
  • Understand the relationship between the income statement and balance sheet and how they are used to calculate financial / credit ratios and cash flow
  • Understand the meaning of the accounts found on a typical income statement and balance sheet
  • Know the types of economic transactions that will not flow through the income statement but will affect the balance sheet

Who Should Attend
Anyone involved in credit analysis or review including, but not limited to Senior Lending Officers, Senior Credit Officers, Chief Financial Officer, Board of Directors, Consumer Lenders, Commercial Lenders, Credit Analysts, Loan Review Personnel, Credit Administration Personnel, and Auditors.

Instructor Bio
Jeffery W. Johnson started his career with SunTrust Bank in Atlanta as a Management Trainee and progressed to Vice President and Senior Lender of SouthTrust Bank and Senior Vice President and Commercial Banking Division Manager for Citizens Trust Bank of Atlanta.

Most of his career has been spent in Credit Administration, Lending, Business Development, Loan Review, Management, and Training & Development. He has managed loan portfolios representing a cross section of loan types including: Large Corporate, High Net Worth Individual, Middle Market Companies, Small Business, Real Estate, and Non-Profit Organizations.

Mr. Johnson is now a training professional in the financial industry by leading various seminars covering important topics relating to issues in financial institutions. He teaches actively for fifteen state banking associations in the United States, Risk Management Association (RMA) and individual financial institutions nationwide. He co-authored a training course entitled “Lending to Service and Other Professional Organizations” for RMA in 2001.

Mr. Johnson earned a B.A. Degree in Accounting from Morehouse College in Atlanta; a MBA in Finance from John Carroll University in University Heights, Ohio; Banking diploma from Prochnow School of Banking at the University of Wisconsin and a Graduate Certificate in Bank Management from the Wharton School of Business at the University of Pennsylvania.

Registration Options

Live Access, 30 Days OnDemand Playback, Presenter Materials and Handouts $279

  • Available Upgrades:
    • 12 Months OnDemand Playback + $110
    • 12 Months OnDemand Playback + Digital Download + $140
    • Additional Live Access + $85 per person
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Maximizing Utilization of the SBA 7(a) Loan Guaranty Program and the Outsourcing Solution

The presentation summarizes the features and benefits of the SBA 7(a) Loan Guaranty Program and focuses on how banks and credit unions can maximize utilization of the 7(a) Loan Program and simultaneously utilize the services of an expert consulting firm to make safe, sound, and secure and profitable commercial loans.

What You’ll Learn

  • The reasons community banks should consider utilizing the SBA 7(a) Loan Guaranty Program as a way to serve those businesses within their communities that cannot meet the bank’s conventional lending guidelines
  • An overview of the program requirements and guidelines and highlights the significant benefits of utilizing the SBA 7(a) Loan Guaranty Program for both the bank and borrower
  • Why outsourcing to a strategic partner and industry expert makes sense

Who Should Attend

Senior Management, Commercial Lenders, and Support Staff.

Instructor Bio
As the son of an accountant, Michael Ryan learned the importance of detail and precision when dealing with numbers. But when Ryan founded Innovative Financing Solutions, it went beyond the numbers. It was about helping people and their businesses through difficult and challenging times. He realized he could use his knowledge and skills to help small-business owners attain funding to invigorate their businesses. These businesses in turn could create the jobs necessary to support the livelihood of their employees and families and build and strengthen the communities they serve. Additionally, IFS has become a leading consultant to community banks through the implementation of their turnkey Government Guaranteed Commercial Loan Program.

Mr. Ryan holds a B.S. in Business Administration and an M.B.A. in Finance from St. Joseph’s University. Before founding Innovative Financing Solutions, Michael Ryan was Executive Vice President and Chief Lending Officer of a Philadelphia-based community bank. He has over a quarter century of commercial lending experience and credit knowledge.

His extensive banking knowledge and experience include commercial middle market and real estate lending, corporate finance, capital markets, and credit analysis, as well as the underwriting of complex and difficult transactions. He also has expertise in the origination, negotiation, structuring, underwriting, and analysis of multi-family, condo, townhouse, office, industrial, specialty investment, and owner-occupied real estate transactions.

Registration Options

Live Access, 30 Days OnDemand Playback, Presenter Materials and Handouts $279

  • Available Upgrades:
    • 12 Months OnDemand Playback + $70
    • 12 Months OnDemand Playback + CD + $100
    • Additional Live Access + $85 per person
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How to Build a Robust Security Training Program – Free Webinar

In this course, we’ll discuss the key elements in building a comprehensive and effective security awareness program, and help you start to understand what it means to build a security-first culture.

Security awareness training helps organizations prepare to defend against today’s most threatening cyberattacks. But if training — often viewed as the last line of defense — is truly impactful, then why do we still have so many breaches? One reason is because of the frequency with which these attacks are occurring. Social engineering and phishing attacks are on the rise.

Another reason is that not all security awareness programs are created equal. While leveraging a “one-size-fits-all” solution can work for maintaining compliance, is it really preparing your employees to take the right action when a phishing attempt sneaks into their inbox? With most people forgetting the majority of infrequent and insufficient training, how can security and risk management leaders ensure their security awareness program sticks?

What You’ll Learn

  • Adult Learning & Content Strategy
  • Security Awareness Topics
  • Phishing Simulations
  • Program Support

Who Should Attend
Everyone is welcome to this webinar as everyone should have a plan in place for security. Security Awareness Training is quickly becoming a mandatory part of everyone’s lives and we want to help keep everyone safe from online attacks.

Instructor Bio
John Trest is responsible for leading the development of Inspired eLearning’s award-winning library of Security Awareness and Compliance training content, from the engaging instructional design to the high-quality multimedia production. He has been a member of Inspired’s team since 2009 and has over 20 years of experience in creating and delivering eLearning courses for a broad variety of industries and subjects. He’s passionate about creating quality security awareness content that is both engaging and impactful.

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Commercial Lending: Risks, Rewards, Controls, & Common Mistakes

The purpose of this webinar is to remind us of our role as arbiters of risk in supporting the economy while making safe and sound loans that are in line with regulatory requirements. Sometimes, these objectives conflict with each other. During this session, we will present the Risk, Rewards, Control Factors, and Common Mistakes made during the Commercial Lending Underwriting Process. We only have one-time to make a good or bad loan decision or face the consequences of the wrong decision, which has proven to be time-consuming and costly for the Financial Institution. Credit Analysis and Lenders can benefit from this knowledge because this should be their primary responsibility within the institution. Interest and fee income from Commercial Loans represent the primary source of revenue for all financial institutions, therefore, thorough credit analysis in Commercial Lending is paramount before loan decisions are made. Commercial Lending is also one of the primary reasons Financial Institutions exist. The continued flow of capital from financial institutions into the economy in the form of loans are the drivers of the national and local economies surrounding our communities financial institution regulators understand the importance of Commercial Lending by encouraging these institutions to support individuals and small businesses through the extension of loans to creditworthy borrowers. This is proven by the guidance issued by the interagency during the height of the worldwide pandemic.

What You’ll Learn

  • Know the nine steps in the Commercial Lending process financial institutions should follow to obtain the desired type of borrower’s financial institutions seek
  • Understand the unique risks involved in Commercial Lending that are not found in other forms of lending
  • Understand the impact of Commercial Lending to financial institutions and how it can be beneficial to all financial institutions
  • Understand the impact of Commercial Lending to the national, state, and local economies and why the regulators encourage financial institutions to support individuals and small companies
  • Know the common mistakes lenders are prone to make during the underwriting and decision-making process of commercial loans

Who Should Attend?

Credit Analysis, Branch Managers, Consumer Lenders, Commercial Lenders, Loan Review Personnel, Senior Loan Officers, Senior Credit Officers, and Credit Administration Personnel.

Instructor Bio
Jeffery W. Johnson started his career with SunTrust Bank in Atlanta as a Management Trainee and progressed to Vice President and Senior Lender of SouthTrust Bank and Senior Vice President and Commercial Banking Division Manager for Citizens Trust Bank of Atlanta.

Most of his career has been spent in Credit Administration, Lending, Business Development, Loan Review, Management, and Training & Development. He has managed loan portfolios representing a cross section of loan types including: Large Corporate, High Net Worth Individual, Middle Market Companies, Small Business, Real Estate and Non-Profit Organizations.

Mr. Johnson is now a training professional in the financial industry by leading various seminars covering important topics relating to issues in financial institutions. He teaches actively for fifteen state banking associations in the United States, Risk Management Association (RMA) and individual financial institutions nationwide. He co-authored a training course entitled “Lending to Service and Other Professional Organizations” for RMA in 2001.

Mr. Johnson earned a B.A. Degree in Accounting from Morehouse College in Atlanta; a MBA in Finance from John Carroll University in University Heights, Ohio; Banking diploma from Prochnow School of Banking at the University of Wisconsin and a Graduate Certificate in Bank Management from the Wharton School of Business at the University of Pennsylvania.

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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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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GSB – Business Financial Statements and Tax Returns: Advanced Financial Statement Analysis

If you are a lender, are you ready to improve your game? If you manage, analyze or review commercial relationships, what are the key drivers of borrower performance after the loan has been closed?

This advanced webinar will take you beyond the basics of financial analysis and portfolio management to provide experienced bankers the advanced tools to influence credit quality and profitability. We will explore critical quantitative factors such as the role of sales growth in the financial performance of the borrower, even the importance of the firm’s blend of fixed and variable costs that influence it’s break-even sales level, which is an important issue when the economy is uncertain (pandemic or recession, for example), as well as qualitative issues of industry, market and management risks, that also were amplified during the pandemic and continuing issues with supply chains, inflation, higher interest rates and hiring/retaining employees.

  • Applying the concept of a firm’s sustainable growth rate (compared to actual sales growth) and its effect on the financial condition, borrowing needs and performance of a business
  • Identifying a firm’s fixed and variable cost structure and related break-even sales level
  • Assessing industry, market and management risk and their effect on financial results and as part of an overall risk rating for the borrower

Target Audience:  Credit analysts, portfolio managers, assistant relationship managers, community bankers, small business lenders, commercial lenders, consumer lenders, branch managers that lend to business owners, private bankers, special assets officers, loan review specialists and others involved in business and commercial lending

Presenter
Richard Hamm, Advantage Consulting & Training

Registration Option

  • Live presentation $330
  • Recording available through March 12, 2024
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CECL and the Call Report Half Day Streaming Event

The filing deadline is April 30, 2023 for the March 31, 2023 report date. Get your questions answered regarding how to report your CECL adoption in the Call Report.

The format for this webinar will be live streaming with 2 designated Q&A sessions.

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.

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.

What You’ll Learn

  • 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.

Instructor Bio
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 Stream: Includes access to the recording for 12 months: $749

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WBA Agricultural Lending School

The 2023 WBA Agricultural Lending School will be held August 22–24, with an optional pre-school workshop on August 21, at the Wisconsin Bankers Association office in Madison. Classes will begin at 9:00 a.m. on Tuesday and conclude at 3:00 p.m. on Thursday. This school was developed as an intermediate-level school. Case studies, in-class work, class discussions, and a farm visit are all elements of this school.

An optional pre-school workshop has been added on August 21. This optional workshop is geared towards those ag lenders and credit analysts who would like to strengthen their foundational knowledge of ag financial statements, the 6 C’s of Credit, and look at some initial ratios. The 3-day school curriculum is based on attendees having an intermediate-level knowledge of these topics. If you’d like a refresher or to reinforce your ag financial statement knowledge, sign up to attend this optional workshop during registration.

Curriculum Includes:

  • “Lenders’ Lens” on Agriculture Today
  • Cyclical Nature of Agriculture
  • Borrower and Lender Relationship
  • Agricultural Financial Statements
    • Farm Business Financial Model for Informed Decisions
  • Cash Flow Budgeting
  • Introduction to Financial and Credit Analysis
  • Financial and Credit Analysis
  • Risk Management
  • Commodity Marketing
  • Credit Structuring
  • Credit Enhancements
  • Loan Narrative/Credit Presentation
  • Farm Visit & Recap
  • Introduction to Problem Loans
    • Looking for Red Flags
  • Bank Policy
  • Preparing for Loan Committee

Optional Pre-School Workshop Curriculum Includes:

  • Farm Business Financial Model for Informed Decisions – a focus on the building of financial statements
    • Balance Sheet
    • Income Statement
    • Statement of Cash Flows
    • Reconciliation
  • The Building Blocks for Credit Decision Making – the 6 C’s of Credit

School Faculty:

  • Bradley Guse, senior vice president – agribusiness banking, BMO Harris Bank, N.A., Marshfield
  • Dr. Kevin Bernhardt, professor and UW Extension Farm Management Specialist, UW-Platteville

Who Should Attend:
This school is designed for ag lenders with a few years of experience, or for those lenders who would like a refresher. Credit analysts, processors, and other ag lending staff will also benefit. Those attendees with less than 2 years of experience should consider registering to attend the optional pre-school workshop on August 21, 2023.

School Requirements:
Successful completion of the school will be based on class attendance and participation on a team for a comprehensive case study including a presentation on the final day.

Registration Information:
The student fee of $895 includes program registration, instruction and materials, and lunch and refreshment breaks daily. Dinner will be provided Thursday evening with the farm visit. Registration for the optional pre-school workshop is an additional $200/attendee.

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Collateral Analysis: Evaluation, Weaknesses, & Monitoring Value

Collateral analysis can be complicated. Every lender hopes that it never comes down to dealing with the collateral — but things don’t always work out as planned. If the cash flow becomes a trickle, you may have to get down to brass tacks. Hopefully the collateral analysis that was performed stands strong. Learn how to deal with all aspects of this complex, yet important, analysis.

After This Webinar You’ll Be Able To:

  • Accurately assess and monitor the value of collateral
  • Explain what can impact the value of collateral
  • Understand the key items in an appraisal when analyzing the value as collateral
  • Comprehend the challenges in taking possession of collateral

Webinar Details

The most frightening thing a lender can say is, “I’m not worried, we’ve got plenty of collateral.” Do you know how to appropriately analyze collateral coverage? This includes looking for the right elements in an appraisal (outside the mandated appraisal review), considerations for various types of collateral, and how to best monitor those values — including marketable securities, accounts receivable, inventory and equipment, and real estate.

This presentation will take a risk-based approach to collateral analysis, adjusting the depth of the analysis to match the strength of the borrower. Collateral only comes into play if cash flow fails. Analysis must be focused on collateral as a secondary or tertiary source of repayment and not as a crutch for poor business results (or poor underwriting).

Who Should Attend?
This informative session is designed for commercial lenders, credit analysts, credit department managers, senior loan officers, senior credit officers, loan review personnel, branch managers serving commercial borrowers, chief risk officers, and auditors.

Take-Away Toolkit

  • Collateral analysis worksheet
  • Collateral monitoring guide
  • 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.

Presenter
Robert L. Viering — RiverPointUSA LLC

Bob Viering brings over 35 years of banking experience to RiverPointUSA, where he concentrates on management and board planning activities, such as strategic, capital, and succession planning, de novo bank formation, assisting with managing regulatory agreements, loan review, and credit process assessment. He has served as a bank director and was an independent member of a bank’s audit committee.

Prior to becoming a consultant, Viering was a de novo bank organizer responsible for all regulatory filings, planning, recruiting, and also serving as CEO. He has been an advisor for other de novo bank formations. Earlier in his career, Viering held various management positions with large and regional banks, including market president and regional credit officer. In addition, he has managed deposit and loan operations groups and was a lender to local, regional, and international businesses. He has also served as a board member of state and national trade associations.

Registration Options

  • $279 – Live Webinar Access
  • $279 – OnDemand Access + Digital Download
  • $379 – Both Live & On-Demand Access + Digital Download
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2023 Credit Analysis Series

Credit analysts are intrinsic to a successful lending program. This series of four webinars will enhance their abilities.
Credit analysts are expected to evaluate numerous types of borrowers, loan proposals, repayment sources, and collateral scenarios. Equip your commercial underwriting staff with tried-and-true methodologies as well as the latest techniques to accurately evaluate cash flow, repayment ability, collateral, and more.
90-minute webinars – available live or on-demand
Included Webinars
  • $1004 – OnDemand Access + Digital Download
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questions@wisbank.com

608-441-1200

4721 S Biltmore Ln.
Madison, WI 53718

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