2013 Western States Commercial Lending School

Enhance Your Performance Advance Your Career Increase Your Personal Worth

Monday thru Friday August 5 ~ 9, 2013 DoubleTree by Hilton Breckenridge 550 Village Road Breckenridge, Colorado CFTWS  1009 Grant St., Suite 102, Denver, CO 80203  303-825-1590  303-629-1591 (fax) [email protected]  www.cftws.org  www.cfttexas.org

Program Overview PROVIDING SERIOUS INSTRUCTION FOR SERIOUS BANKERS As we move into the future, bankers will see many challenges. One challenge is having qualified lenders who are not only excellent negotiators, but also know documentation, and are current on special issues confronting today’s borrowers. A trained lender is a commodity in today’s market that cannot be overlooked. Whether you are a 15-year veteran lender or junior lender; learning or just refreshing your lending skills is a necessity in today’s competitive banking environment. We highly recommend marking your calendar now for the 2013 Western States Commercial Lending School in Breckenridge, Colorado.

PURPOSE OF THIS SCHOOL The purpose of the Commercial Lending School is to prepare mid-level bankers to serve effectively and profitably as commercial loan officers by developing:

 A better understanding of the economy and how it affects the lending decision;

 An understanding of how a business is structured and how it competes;

 An understanding of the role of a company’s management and how to analyze and evaluate that management;

 A thorough understanding of basic and advanced After successfully completing the Commercial Lending School, lenders will have a full knowledge needed to evaluate, structure and negotiate a commercial loan.

analytical techniques;

 An opportunity to apply these analytical techniques in a series of lending situations and to carry them forward in the structuring of the loans;

 An understanding of relationship banking—how to meet multiple customer financial needs profitability;

 A thorough understanding of how problem loans

John Cochran ~ Facilitator Spanning more than thirty years, John Cochran has served in various management and lending positions that have included Compliance and Loan Review Officer, Consumer and Commercial Lender, Chief Lending Officer and President and CEO of a community bank. Prior to starting his own company in 2000, John, in his last bank assignment, held senior management positions in commercial lending as well as directing consumer banking and sales activities in a large branch network. In addition to his banking assignments, John has been active in the Missouri Bankers Association for many years, leading lending workshops and speaking at MBA conferences. Since 1990, John has served as the lead faculty member for the Missouri School of Lending and Missouri School of Bank Management. He is also a faculty member for other commercial lending schools including the Illinois Bankers Association Commercial Lending School, the Kentucky Bankers Association School of Commercial Lending, and the Minnesota Bankers Association School of Lending Principles and Commercial Lending School. John also conducts lending seminars and presentations for CFTWS as well as several state banking associations across the country.

develop and the appropriate techniques to use in managing a problem loan;

 A understanding of their bank’s tolerance for risk, the risk assumed in the loan portfolio and their bank’s credit process to manage the risks.

ADMISSION REQUIREMENTS For admission, an applicant must: 1. Have a minimum of one year’s experience in commercial lending , or a minimum of one year in credit administration in a bank; or five years’ banking experience. 2. Have successfully completed CFT/AIB or other equivalent courses in Commercial Lending, Analyzing Financial Statements, and Economics; or a demonstrated knowledge. To allow an optimum learning experience, class size is limited. Early enrollment is recommended to ensure a place in the school and allow time to preview student materials.

QUESTIONS? Contact Christine Bumgardner at 303-629-9662 or [email protected]

School Curriculum The External Environment This module begins with an overview of the business of banking and a brief introduction to the elements of the loan evaluation process, which forms the foundation for the Commercial Lending School curriculum. The module then shifts to an examination of the external environment in which businesses operate. This overall perspective on the external environment includes types and causes of economic fluctuations, government alternatives to influence economic activity, and the tools that are available to monitor economic activity and predict future trends.

Understanding the Borrower’s Business Each type of business and industry has a unique mix of assets, liabilities, margins, asset utilization and financial leverage. It is essential that the lender understand these critical differences among businesses. This module begins by reviewing the relationship between the lender and business customer. The module examines how the typical business operates by focusing on the operating, fixed asset, profit, life and cash cycles. It identifies key variables that are going to be critical to the success of the business. The module demonstrates how financing needs arise and defines the source of repayment and appropriate loan structures to meet financing needs.

Assessing the Borrower’s Competitive Position This module explores business strategy, a key to success for any company. The module begins with a look at the role of business and competitive strategy and then defines three basic types of competitive strategies – price, product differentiation, and product focus. It then identifies the various characteristics of a company that should be considered when evaluating business strategy. Product, industry, market structure, stage in life cycle and barriers to entry are all important components of the well-devised business strategy.

Evaluating Management This module examines the management process. The emphasis is on evaluating the management team, focusing on aspects of management including skills, integrity, and core competence. The module also discusses tools available to the lender to evaluate management and monitor management performance.

Assessing the Borrower’s Financial Performance Unlike previous modules, which covered the subjective aspects of financial analysis, this module considers the objective evaluation of a company’s success in managing its key variables. Historical financial analysis is the primary tool used in the objective evaluation. This analysis utilizes tools including component, comparative/common size, cash flow, ratio, commercial real estate, and personal financial statement and tax return analysis.

Projecting Future Performance Projections focus on quantifying the borrower’s ability to make future payments based on financial performance. This module first explores the concept by describing the information and tools needed to prepare pro formas, projections and cash budgets. The module then focuses on stress testing key assumptions to determine the potential volatility in earnings and cash flow and the impact on the borrower’s ability to service debt.

Loan Structure and Support Previous modules have focused on understanding the borrower’s business and quantifying the borrower’s willingness to repay debt. Equally important is structuring the loan to assure that primary and secondary sources of repayment have been identified, the amount of the loan is appropriate, and the term of the loan is reasonable. While not a substitute for demonstrated ability to repay, loan support is useful in shoring up a loan that has a few potential weaknesses. This module defines loan support and identifies those situations where loan support may be required. It then presents four elements of loan support – collateral, guaranty, loan agreement and subordination agreement.

Effective Relationship Management This module focuses on developing and managing profitable customer relationships. The module opens with a discussion of the changing role of the lender. The elements of a value added relationship are defined with emphasis on how the lender can become a trusted advisor. The module then explores life cycle relationship management and effective customer calling. Profitably pricing relationships is often the hardest part of relationship management and the module outlines nine steps for more profitable relationship pricing. The module concludes with a discussion of negotiating skills that enhance the lender’s ability to negotiate a fair relationship package for the borrower and the bank.

Identifying and Managing Problem Loans While problem loans are not always preventable, lenders can minimize losses from them with good underwriting, active monitoring, early problem loan identification and aggressive corrective action. This module both draws on earlier material and presents new information to show how problem loans can be identified and what can be done to curtail losses—from meeting with the borrower to managing a bankruptcy.

Establishing Credit Discipline The module, the final one of the course, outlines a frame-work for establishing credit discipline in a bank. The module then review components of an effective credit administration process— a written loan policy, an asset quality rating system, formalized loan pricing system, effective committee process, strong credit administration and loan review function, well-trained lending officers, and a positive lending environment. When combined, these components result in a quality loan portfolio. The integration of all of the different aspects of credit administration is termed credit discipline.

School Schedule, Lodging, Investment & More SCHOOL SCHEDULE

COURSE MATERIALS

Monday, August 5, 2013 7:30 a.m. Breakfast & Orientation

The course materials used in the Commercial Lending School are written and annually updated by Mr. John Barrickman. These materials are also used in the Commercial Lending Schools held in Kentucky, Illinois, Minnesota and Missouri.

Monday—Thursday, August 5—8, 2013 7:30 a.m. Breakfast 8:00 a.m. Class Begins 5:00 p.m. Adjourn Friday, August 9, 2013 7:30 a.m. Breakfast 8:00 a.m. Class Begins 12:00 p.m. Adjourn

CERTIFICATE OF ACHIEVEMENT Upon completion of the School, participants will receive a ‘CERTIFICATE OF ACHIEVEMENT’ to document their ongoing commitment to improving their knowledge and to award them for their outstanding performance.

SCHOOL LOCATION, ATTIRE & MEALS The School will be held at the DoubleTree by Hilton Breckenridge, 550 Village Road, Breckenridge, Colorado. Casual, comfortable attire is recommended. A complimentary Breakfast Buffet is included with your lodging, and Lunch and refreshment breaks will be served daily, except for Friday, as the School will end at noon. The DoubleTree features convenient access to Breckenridge's charming shops, gourmet restaurants, activities & events. For more information visit their website at: www.Breckendrige.DoubleTree.com

LODGING Tuition DOES NOT include lodging. Students are responsible for securing their own lodging. CFTWS has reserved a block of room with the DOUBLETREE BY HILTON BRECKENRIDGE at a special group rate of $129.00 per night for a King or Double Queen Size Room, plus tax, plus $5.00 per night for valet parking. This block of rooms is reserved until SATURDAY, JULY 6th, at which time they will be released to the public. The availability of the rooms cannot be guaranteed after JULY 6th, therefore, early reservations are encouraged. A link and phone number to make your reservations will be sent to you at the time you register for the School.

TRAINING INVESTMENT & SAVINGS OPTIONS First Attendee = $1,500.00* Additional Attendees = $1,350.00** Tuition includes the School Manual, a complimentary breakfast buffet with lodging (served from 7:30 to 8am), and lunch and refreshment breaks daily. It is does include lodging. *Early Tuition ~ Register By MONDAY, JULY 8, 2013 To ensure your attendance and receive the ‘Early’ Tuition Rate quoted above, a $100 SAVINGS, please register by MONDAY, JULY 8, 2013. Tuition will increase by $100.00 after July 8th. **Multiple Registration Discount Please REGISTER ALL ATTENDEES AT ONCE to receive the Additional Attendees Discount Rate above. Refund Policy $200.00 Cancellation Fee = On or before July 8, 2013 NO Refund = After July 8, 2013 (although a substitute may attend)

QUESTIONS? Contact Christine Bumgardner at 303-629-9662 or [email protected]

Registration Form (Course #N6350G1F13)

FAX:

303-629-1591

  Name: __________________________________________________________________________     Title: ___________________________________________________________________________    Organization: ______________________________________________________________________    Business Address: __________________________________________________________________    Business Phone: ___________________________ Cell Phone: ______________________________    E‐Mail Address: ____________________________________________________________________ 

MAIL:

CFTWS 1009 Grant Street Suite 102 Denver, CO 80203 E-MAIL:

[email protected] ONLINE:

In Case of An Emergency, Contact:

www.CFTWS.org/ Education

Name: ________________________________________________ Phone: ______________________________ Relationship to Student: __________________________________ Experience: Total years of banking experience: _____________Total years of lending experience: _____________ Total years of commercial lending experience: ___________ Please indicate years of experience in the following areas: _____ Real Estate Lending

_____ Ag Lending

_____ Consumer Lending

_____ Loan Administration

_____Chief Executive Officer _____Supervisor-Loan Division

_____ Commercial Lending

_____ Credit Analysis

_____Bank Director

_____ Other? Please list ___________________________________  

 

 

 

 

Total Assets of Bank: 

 

 

 

Size of Commercial Loan   Portfolio You Manage: 

 Under $10 m 

 

 $51 m—$75 m 

 

 Under $10 m 

 

 $51 m—$75 m 

 $11 m—$25 m 

 

 $76 m—$100 m 

 

 $11 m—$25 m 

 

 $76 m—$100 m 

 $26 m—$50 m 

 

 $101 m—$500 m   

 $26 m—$50 m 

 

 $101 m—$500 m   

 

   

Applicant Please Read and Sign I have read the accompanying brochure explaining the school requirements as well as the cancellation policy/refund policy. I agree to abide by all the requirements for participation associated with this school. Applicant’s Signature ________________________________________________ Date: __________________________

QUESTIONS? Contact Christine Bumgardner 303-629-9662 [email protected]

Nominating Officer Please Read and Sign The Bank has approved the submission of this application. I verify the accuracy of the application. (Application must be signed by the Bank’s CEO or President, Department Head or other Executive Officer duly authorized by the Bank.) Nominating Officer (print)____________________________________________ Title: ____________________________ Signature: ________________________________________________________ Date:____________________________

PAYMENT OPTIONS  

CBA

TOTAL AMOUNT DUE $_____________________   

  10% Multiple Registration Discount Applies, Additional Registration Form(s) Attached.  CFTWS 1009 Grant St., Suite 102 Denver, CO 80203 303-825-1590 303-629-1591 (fax) [email protected] CFTWS does not discriminate on the basis of race, color, gender, age, and national or ethnic origin.

TUITION PAYMENT OPTIONS:

  *Bill Organization  Check enclosed (payable to CFTWS) 

 

*Authorized Signature for Billing: _______________________________________________   

  VISA/MC #: _____________________________________________Exp. Date________   

Cardholder’s Name: ________________________________________________________    

Signature: ________________________________________________________________