Pub. 9 2021 Issue 1

ISSUE 1. 2021 13 PROGRAM CURRICULUM April 5 , 2021 Presented by Jeffery Johnson, President, Bankers Insight Group This first session of the Credit Analyst Development Program will provide a clear understanding of the role of a credit analyst and why it is a vital part of the credit underwriting process. 2ne habit of a successful bank is the ability to identify, measure and manage risk in the lending process. The credit analyst has a paramount role in the credit decision process. By attending this training session, you will develop an understanding of the following areas of banking Session Highlights - The role of commercial lending in the banking industry - Characteristics of a successful credit analyst - 5kills required to be successful including what information is required to match the loan request; best practices in spreading financial statements; knowing the right questions to ask - +ow to communicate analytical results to more senior lenders - Products and services offered by banks, including depository and lending services - 4eview of the regulatory agencies and banking regulations that affect commercial lending - Accrual versus cash-basis accounting - Ad=usting entries - Accounting for inventory and receivables - /ong-term liabilities and depreciation - Analysis of notes to the financial statements - Types of financial statements and the CPA option The Role of a Credit Analyst Within the Bank Accounting Basics/Refesher April 12 , 2021 Presented by Jeffery Johnson, President, Bankers Insight Group This session will provide participants with a refresher on the basics of accounting. ,t will demonstrate the ten step accounting cycle leading up to the creation of the income statement, statement of owner s equity, balance sheet, and statement of cash flows and how these financial statements are connected to one another. 1umerous hands on eamples will be included to reinforce the accounting concepts. Session Highlights - The four ma=or financial statements income statement, statement of owner s equity, balance sheet, and statement of cash flows - 4ules of debits and credits Employing Basic Financial Analysis Tools May 6 , 2021 Presented by John Barrick$an, President, e ori ons Financial Group Financial statements are the basis for financial analysis, valuable as a loan monitoring tool used to broaden and deepen the borrower relationship. This session will demonstrate the development and use of comparative and common-size analysis, ratio analysis and cash flow analysis. To make these tools more efficient and enhance the value to the lender the session will introduce 30 5econd analysis and a /oan 5creening Worksheet. Participants will learn how to use the analytical tools to underwrite new relationships, monitor eisting relationships, identify business development opportunities and add value to the borrower relationship. Session Highlights - Demonstrate comparative and common-size analysis including 30 5econd analysis - 8sing business financial statements, demonstrate the calculation and interpretation of siclasses of ratios commonly used in commercial loan financial analysis - ,ntroduce a loan screening worksheet built around the 5 Cs of Credit which utilizes three key ratios - Demonstrate how ratios can be used to determine when it is appropriate to term out a line of credit - Demonstrate how ratios included in covenants in a loan agreement effectively limit - The borrower s ability to grow -The total amount of debt and the amount of short term debt the borrower can have - The amount the owner can take in salary and distributions - 4eview the concept of sustainable growth - Demonstrate how to use business financial statements to identify opportunities to broaden and deepen the customer relationship - Demonstrate how to use business financial statements to assess risk factors in a lending opportunity - Apply the concepts in three case studies