Advanced Credit Analysis School

Date:

Oct 7, 2024 to Oct 8, 2024

Location:

This two-day course provides lenders and analysts with important tools beyond basic business financial ratios and credit analysis. First, it expands the conventional ratio analysis into cash flow analysis. Second, the non-financial issues faced by the business (industry, market and management risk) are discussed in relation to the ratios and cash flow results. Third, we introduce advanced tools that bring all of these concepts together: sustainable growth rate and break-even analysis. These tools lay the groundwork for developing assumptions to be used with computerized projection models. Finally, we discuss how to bring these issues into your written analysis of the credit. This course is “hands on” (bring a calculator) with cases and exercises demonstrating key concepts.

PDF Brochure

Agenda
8:45 a.m.                   Registration and Continental Breakfast
9:00 a.m.                   Program Begins
12:00 Noon               Lunch 
1:00 p.m.                   Program Resumes
4:00 p.m.                   Program Adjourns
Topics
  • Review of basic financial statement analysis and ratios, with an emphasis on themes and flow of the written analysis
  • How the accountant-prepared statement of cash flow (SCF) is constructed
  • Overview of Uniform Credit Analysis (UCA) cash flow model and how it is derived from financial statements or tax returns
  • Analytical conclusions that can be made from the SCF or the UCA model, including five key cash flow relationships, plus a brief review of how CRE cash flow differs and involves a projection component
  • How to assess repayment ability and collateral with operating lines of credit
  • How to assess industry, market and management risks and their effect on financial results and your risk rating for the borrower, plus similar, non-financial risks for CRE lending
  • Introduction to the concept of sustainable growth rate (SGR)
  • Introduction to the concept of sales break-even point (BE)
  • How to use SGR and BE to identify key variables and expedite the computerized financial statement projection process
  • Tips for writing up your projections and other analytical conclusions
Speaker

Richard Hamm has been training bankers for over 30 years, specializing in all phases of commercial lending and credit, including portfolio & risk management, commercial real estate and appraisals, plus selling & negotiating skills. His training work includes our top industry associations (the ABA & RMA), regional banking schools (Barret School of Banking - Memphis, Graduate School of Banking - Wisconsin, Southwestern Graduate School of Banking - Dallas, and Graduate School of Banking at Colorado), numerous statewide banking and community banking associations, plus individual banks. 

On the consulting side, he has been involved in director training, loan policy formation, bank formation (start-ups & acquisitions) and related strategic planning.  The RMA Journal has published over 20 articles by Hamm on various lending topics, and he has served for many years on its Editorial Advisory Board.  He is based in Huntsville, AL and has owned/operated Advantage Consulting & Training for 12 years, after a 22-year banking career including senior positions in lending and credit.  He has BS & MBA degrees from the University of Alabama and holds the CTP (Certified Treasury Professional) designation.

Additional Information

Who Should Attend?

Branch managers, small business lenders, commercial lenders, credit analysts, loan review specialists, lending managers and credit officers.

Fees

The following fees include the program, training materials, continental breakfast, lunch & refreshments.

$425 IBA Members

Participation in IBA programs is limited to members, associate members, and nonmembers from an eligible membership category at applicable member or non-member rates. Surcharge of 100% for Non-Members.
location

This two-day course will be held on Monday & Tuesday, October 7-8, 2024 at the IBA Center for Professional Development, 8425 Woodfield Crossing, Suite 155E, Indianapolis, IN 46240.

Directions, a map & list of local hotels are available by calling the IBA office at 317-387-9380.

Association Contact

For more information please contact Elizabeth DeHaven via e-mail at edehaven@indiana.bank or call 317-387-9380.

Cancellation Policy

Within three or more business days prior to the day of an educational program, no cancellation charge will be assessed. Within two days prior, 50% of the fee is assessed.  Refunds are not provided for cancellations 1 day prior or absences on the day of the program.  Substitutions are welcome at any time.