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Middle Market & Corporate Banking

Middle Market & Corporate Banking

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  • Advanced Accounting Concepts
Advanced Accounting Concepts
Course Overview The goal of this course is to further expand the participant’s knowledge regarding more advanced accounting topics necessary to assess risk and determine credit implications.  Topics covered:

  • Differences between International Financial Reporting Standards (“IFRS”) and GAAP accounting 
  • Deferred tax assets and liabilities
  • Pension accounting and liability assessment
  • Stock options and other deferred compensation 
  • Revenue recognition principles; Deferred revenue accounting
  • Percentage of completion accounting method
  • Impact of business combinations and disposals
  • Treatment of complex debt and equity issuance
  • Identification and disclosure of contingent liabilities
Target Audience Any credit analyst, underwriter, or relationship manager familiar with intermediate accounting
Duration 2 days
  • Understanding Industry, Strategy and Management
Understanding Industry, Strategy and Management
Course Overview A complete understanding of historical and future performance of a company is dependent upon understanding the industry in which the company operates, evaluating the company’s strategy, and determining management’s capability to successfully implement the strategy.  This course ties all three qualitative areas together in order to determine the capacity to repay.  

After completing this training, participants should be able to:

  • Identify the industry and evaluate industry drivers and trends
  • Identify key characteristics companies must have to be successful in their industry
  • Evaluate management’s skills and ability to develop and implement appropriate strategies given the identified industry trends and success factors
Target Audience Any credit analyst, underwriter, or relationship manager
Duration 2 days plus approximately 3 hours of pre-work
  • Financial Statement Analysis
Financial Statement Analysis
Course Overview The ability to get behind the numbers when completing a financial statement analysis is critical to understanding the capacity of a borrower to repay.  This course focuses on the analysis of the income statement and balance sheet, and instruction goes beyond traditional trend and ratio analysis.  Conclusions developed focus on understanding the capacity of the company to continue to generate profits and understanding the overall financial position.

After completing this training, participants should be able to:

  • Apply consistent analytical process to financial statement evaluation
  • Understand how accounting issues impact interpretation of results
Target Audience Any credit analyst, underwriter, or relationship manager
Duration 2 days
  • Cash Flow Analysis
Cash Flow Analysis
Course Overview This foundational course introduces the cash flow analysis necessary to begin to analyze a credit.  Various cash flow method are used with a focus on construction, cash impact due to profit verses working capital changes, and analysis of the capacity to meet future capital expenditure requirements, taxes and debt service.  

After completing this training, participants should be able to:

  • Understand the benefits and shortfalls of various cash flow presentations
  • Differentiate between cash necessary to support on-going operations versus cash available for debt service
  • Incorporate sustainable cash flow into measurable, cash flow coverage ratios
Target Audience Any credit analyst, underwriter, or relationship manager new to cash flow analysis or who need to update cash flow analysis skills
Duration 2 days
  • Advanced Cash Flow Analysis
Advanced Cash Flow Analysis
Course Overview This course focuses on issues not evident in a quick review of a company’s cash flow statement but can change the lender’s view of a company’s capacity to generate cash flow.  Participants learn how the footnotes provide a better understanding of the company’s future off-balance sheet obligations, liquidity and actual results.  The course introduces a cash flow definition that focuses on future debt repayment while considering the company’s necessary and on-going operational needs.  

After completing this training, participants should be able to:

  • Understand how accounting affects cash flow and interpretation of results
  • Assess earnings sustainability in relation to working capital and capital expenditures
  • Develop forecasts driven by key cash flow drivers
Target Audience Experienced credit analyst, underwriter, or relationship manager who want to enhance their cash flow analysis skills
Duration 2 days plus approximately 4 hours of pre-work
  • Developing & Analyzing Projections
Developing & Analyzing Projections
Course Overview The course is organized into five modules 1) Understanding the framework for forecasting; 2) Determining forecast assumptions; 3) Developing expected case forecast (based on integration of industry, business strategy, management, and historical performance analysis); 4) Identifying and mitigating key credit risks, and 5) Conducting a sensitivity analysis. The course will use case studies to illustrate the various concepts and apply the assumptions to a pre-existing excel based forecast model.

After completing this training, participants should be able to:

  • Understand the purposes of different types of forecast scenarios
  • Integrate credit risk analysis into scenario development
  • Correctly identify primary and secondary sources of repayment of the forecast
Target Audience Any credit analyst, underwriter, or relationship manager familiar with the fundamentals of accounting, industry analysis, financial statement analysis and cash flow analysis
Duration 3 days
  • Loan Structuring
Loan Structuring
Course Overview The primary tenant of this course is the protection of the primary and secondary sources of repayment.  An appropriate loan structure should go well beyond the loan type.  It involves the integration of loan type, amortization schedules, and basic financial covenants which together create a fundamental “structure” that protects the primary source of repayment and ensures value in the secondary sources when necessary.  

 

After completing this training, participants should be able to:

  • Integrate loan structure with the identified credit risks
  • Create maximum benefit to the bank with a minimum number of covenants
Target Audience Any credit analyst, underwriter, or relationship manager familiar with cash flow construction and analysis
Duration 2 days 
  • Advanced Loan Structuring
Advanced Loan Structuring
Course Overview This session focuses on advanced topics in loan structuring.  Areas of emphasis include creating structures benefiting the senior bank lender in more complex situations, creating covenants which defend the senior bank position vis-à-vis subordinated debt and private equity, and structural safeguards designed to benefit the senior bank lender.

After completing this training, participants should be able to:

  • Identify risk to the senior bank loan
  • Structure transaction in a way that benefits and protects the senior bank loan
Target Audience Experienced credit analyst, underwriter, or relationship manager who want to enhance their loan structuring skills
Duration 2 days
  • Effective Credit Write-Ups
Effective Credit Write-Ups
Course Overview This course helps credit professionals communicate clear, concise, and well-organized credit decisions in order to maximize the asset quality of the bank’s loan portfolio. Using case studies, participants will be required to evaluate, underwrite, and communicate a credit decision applying the concepts presented in the class

After completing this training, participants should be able to:

  • Provide a balanced view of the credit’s strengths and weaknesses
  • Ensure that quantitative results are tied to the dynamics of the business and industry, and management execution capacity
  • Articulate a clear opinion on the risks of the credit supported by pertinent facts
  • Present a forward-looking view of the company’s continuing ability to repay bank debt
  • Tie loan structure, including terms, conditions, and covenants to the overall risk of the transaction
Target Audience Any credit analyst, underwriter, or relationship manager familiar with the fundamentals of accounting, industry analysis, financial statement analysis and cash flow analysis
Duration 2 days 
  • Problem Loan Identification & Prevention
Problem Loan Identification & Prevention
Course Overview The underlying theme of the training is to develop participants’ ability to link bank underwriting values with the recognition of a potential problem loan. Emphasis is placed on identifying and preventing the causes of problem loans, and not on remediation or workout techniques

This course provides a platform for the recognition of early warning signs as a precursor to a loan problem. Further, the program emphasizes proactive responses to early warning signs, while using analytical tools to distinguish between a true problem loan and a temporary liquidity or margin management issue experienced by the borrower.
Target Audience Any credit analyst, underwriter, or relationship manager familiar with the fundamentals of accounting, industry analysis, financial statement analysis and cash flow analysis
Duration 1 day
  • Problem Loan Workout Strategies
Problem Loan Workout Strategies
Course Overview Participants will be introduced to the concepts of a successful workout program and problem loan resolution in the identification of causes, application of resources, and what is necessary to develop and implement a successful workout strategy

Along with exploring the stages of problem loan resolution, the course covers collection methods, working effectively with counsel, and types of bankruptcy. This training is typically taken following the Problem Loan Identification and Prevention course.
Target Audience Any credit analyst, underwriter, or relationship manager familiar with the fundamentals of accounting, industry analysis, financial statement analysis and cash flow analysis
Duration 1 day
  • Lending to Owner-Occupied Real Estate
Lending to Owner-Occupied Real Estate
Course Overview This training is designed to help participants make more informed underwriting decisions when underwriting owner-occupied real estate loans. The session emphasizes the need for sound underwriting of the owner occupant, and further emphasizes aspects of real property finance which must be considered when making an owner-occupied real property loan, including examination of the appraisal from the perspective of the bank lending officer. 

The real property underwriting concepts presented in the session include an explanation of net operating income (NOI) calculation, including replacement reserves and management fees, debt service coverage ratio and debt yield minimums, and loan-to-value parameters. 

While there is an emphasis on sound real property credit underwriting principles, equal weight is given to structuring and underwriting techniques designed to monitor existing loans secured by real property, particularly owner-occupied real property loans. Further analysis of scenarios where real property has inadvertently become the primary source of repayment will also be examined.
Target Audience Any credit analyst, underwriter, relationship manager or other lending staff involved with real estate as a secondary source of repayment
Duration 1 day

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Paragon Hill

Paragon Hill. specializes in the development, design and instruction of training programs for lending professionals at domestic and international banks.