Day 1 - March 30, 2023 8:30am-4:30pm
Day 2 - March 31, 2023 8:00am-4:00pm
Member Fee: $425
Non-Member Fee: $625
This workshop is unique as it is entirely case-driven, using reality-based examples; real businesses, real financial reports, real situations to evaluate. The instructor has 25 years of experience as a commercial lender and manager of credit analytic departments, and he will share tips, techniques, and lessons learned from real-life situations. Attendees will work on cases in teams and share ideas and different ways to underwrite. Complex concepts will be illustrated with humor, games, and funny stories so as to provide an enjoyable learning experience.
The topics covered with the case studies will include:
- Walking through business and personal tax returns to identify capacity and conclude a global cash flow. Identify and discuss subjective areas.
- How to analyze any cash flow statement (direct, indirect, UCA) in 5 minutes.
- How to analyze any ratio and determine what is driving the number. Learn new ways to use ratios, including DuPont analysis.
- How to differentiate the real loan purpose(s) if you have a loan request for “working capital.”
Seminar Highlights include:
- Using real-life business examples, learn how to quickly identify and underwrite the business model and key variables with a deeper understanding of ratios and cash flow drivers for early identification of the strengths, weaknesses and uncertainties of a business.
- Learn how to evaluate industry trends, competition, and market disruptors.
- Identify often-overlooked early indicators of stressed business cash flow well before any payment delinquency. Learn what steps to take if you suspect a potential problem loan.
- Determine proper loan structure, matching repayment source(s) with appropriate level of covenant monitoring combined with credit enhancement strategies that actually strengthen the borrower’s relationship and provide value to the business.
- Develop a deeper reality-based understanding of how to increase recovery from loan collateral, ensuring attachment and perfection, and commensurate monitoring to mitigate risk.
- Obtain a working knowledge of income-producing real estate lending and underwriting, property-specific operating ratios, loan sizing using Debt Yield, as well as evaluating appraisal valuations and their subjective considerations.
- Deepen understanding of tenant rent rolls and lease clauses, stress-testing real estate loans, and cap rates, including their impact on future valuation.
- Discuss how to strengthen portfolio risk management with practical examples of alignment of credit culture with credit policy, staff behavior, and strategic mission as well as effective risk rating protocols.
- Lenders: Proven ways (from a lender) to start and sustain your own business banking calling program, bolster quality referrals and never have to do a cold call ever again. Learn techniques to increase the relationship’s net interest margin for the bank.
- Analysts: Learn how to provide a continual value-add to existing and new business relationships. Learn how to ask the ‘right’ questions.
- Free online resources and job aids for continued use.
This program is targeted to newer hires or those new to Commercial and Industrial lending or analytics.
Mike Wear is owner of 39 Acres Corporation, specializing in banker training and bank consulting services in credit risk underwriting and loan portfolio risk management. Less lecture—real-life business cases—more hands-on practice… and more fun! Over his 41-year banking career, he served in commercial lending and senior credit management positions with Omaha-area community banks. Wear retired as a Senior Analyst in the Credit Risk Administration department of First National Bank of Omaha, a $26B regional community bank, specializing in underwriting large commercial real estate projects throughout the country. In addition, he developed curriculum and conducted multi-tier training programs in credit analytics on an enterprise-wide basis. He is the Loan Portfolio Management Section Leader and serves as a member of the faculty and board of trustees at the Graduate School of Banking at the University of Wisconsin in Madison, as well as GSB’s four Specialty Schools. He is a former adjunct professor for the University of Nebraska-Omaha. He has authored articles for banking publications and has served as a textbook editor/reviewer for the American Bankers Association. Mike is now expanding his advanced Commercial and CRE Lending workshops and teaches for several State Banking Associations. Bank consulting services include tailored credit analytics coaching, building loan portfolios, and loan portfolio risk management strategies and tools to identify risk early in your pass-rated portfolio.