The credit cycle has turned – dramatically! The banking industry is challenged by the worst combination of credit and economic factors in two decades! For Community Banks, Commercial Lending is an increasingly important part of building a profitable, diversified portfolio. It is also increasingly risky as underwriting and servicing habits developed in recent years do not adequately protect the bank in the current environment. The ABA’s three day Commercial Lending School reinforces the fundamentals that are re-emerging as critical to any bank’s growth and health. These include:
- – for businesses and individuals. Understanding the relationship between small businesses and their owners is critical to establishing reasonable probability of repayment for a commercial purpose loan.
- – If a business experiences difficulty, what outside resources does the owner have to prevent default? The answer is found here – and often only here!
- – Understanding how Balance Sheets and Income Statements intersect is critical to understanding all aspects of cash flow analysis and for identifying important ratios used in credit analysis – both prior to loan origination and for subsequent servicing.
- – Loan to Value (LTV) means nothing if the lender does not understand the advantages and limitations of taking liens against various types of common commercial collateral such as Inventory, Accounts Receivable, Equipment, etc.
- – Commercial Loan structure includes many options and choices, but a lender can only arrive at the correct structure if they understand the borrower’s needs and the inherent risks of the proposed transaction.
- – In general, a Community Bank’s largest loans – and thus potentially biggest headaches. Even with an outside appraisal in hand, understanding risk requires complete underwriting of the project, the owner and the market.
The seminar provides tremendous insight for almost anyone involved in the Commercial Lending process. Those with underwriting responsibility and approval authority will probably benefit most. Lenders without underwriting responsibility will take away an improved ability to “speak” the language of credit to a customer. Loan Operations, Loan Review and other support staff will take away increased appreciation for common risk factors and solutions.
Student notebooks containing curriculum materials are provided at registration. Attendees register on Tuesday, October 28 from 8:30 a.m. until 9 a.m. Classes will begin at 9 a.m. and end at 4 p.m. each day.
The course is presented by Credit Risk Management, LLC, the pre-eminent Community Bank consulting firm in the Southeastern United States. Credit Risk Management has over 175 client banks and provides a wide range of products, services, and advice to assist those banks in achieving the best possible balance of fundamental risk, competitive pressure and substantial regulatory scrutiny. No matter what type of Community Bank commercial lending scenario might arise, Credit Risk Management has seen it and solved it. Credit Risk Management has partnered with the ABA for several years.
The registration fee for this three-day program is $575 before September 1 and $625 after September 1 for The Alabama Bankers Association members and $875 before September 1 and $925 after Septemberr 1 for nonmembers. Registration fees include instruction, materials, refreshments and lunch.
Full registration fees will be refunded if a cancellation is received on or before ten business days prior to the program. If date of cancellation is less than ten business days prior to the program, a $100 processing fee will be retained. No refunds will be given the day of the program. Substitutions are welcome. All cancellations and substitutions must be received in writing.
Dress for the program is business casual. To ensure your comfort, please bring a jacket or sweater. If you need additional information, please contact The Alabama Bankers Association office, (334) 834-1890 by email at info@alabamabankers.org.
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