Private Banking

Participants develop the skills necessary to be a productive small business lender including teaching a lender to analyze the capacity of the individual to generate recurring cash flows and determining the true value of the individual’s assets and liabilities.


Private Banking

Participants develop the skills necessary to be a productive small business lender including teaching a lender to analyze the capacity of the individual to generate recurring cash flows and determining the true value of the individual’s assets and liabilities.






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info@paragonhill.com

  • Fundamentals of Personal Cash Flow from Individual Tax Returns
Fundamentals of Personal Cash Flow from Individual Tax Returns
Course Overview Participants learn how to use individual federal tax returns and personal financial statements to generate an accurate cash flow statement for an individual, and to use the results in the credit analysis process.

After completing this training, participants should be able to:

  • Demonstrate a knowledge of key individual tax forms and schedules 
  • Explain why tax return adjusted gross income is not a good representation of cash flow
  • Identify information in the tax return vital to cash flow analysis 
  • Convert tax return items of income or loss into a cash flow equivalent, and determine if items have recurring cash flow effects
  • Identify interrelationships of borrower’s various financial activities as presented on a tax return
  • Use a worksheet to quickly convert tax return line items into an accurate cash flow statement
  • Explain tax implications of pass-through entity businesses
  • Evaluate resources available to service debt from analysis of individual tax returns and personal financial statements
Target Audience Any small business/business banker or private banker
Duration 2 days

  • Intermediate Cash Flow Construction & Analysis from Tax Returns
Intermediate Cash Flow Construction & Analysis from Tax Returns
Course Overview This course covers how to accurately calculate cash flow from individual tax forms and schedules, introduce global cash flow perspective, and address more complex tax issues that may affect borrowers.  

After completing this training, participants should be able to:

  • Demonstrate a knowledge of more complex tax issues and how they impact cash flow, including realization of capital gains/losses, installment sales, like-kind exchanges, and LLC/Partnership contributions and distributions
  • Explain tax implications of pass-through entity businesses and what drives business entity choice
  • Identify information in a business tax return vital to cash flow 
  • Explain the concept of global cash flow – how to decipher cash flows between individuals and related entities
  • Construct and analyze cash flow from individual and business tax returns and financial statements, using cash flow worksheets
  • Evaluate global resources available to service debt from analysis of the individual and business tax returns and financial statements.
Target Audience Experienced small business/business banker or private banker
Duration 2 days

  • Global Cash Flow Construction & Analysis
Global Cash Flow Construction & Analysis
Course Overview Participants learn how to consolidate cash flow of related entities into a global cash flow used to analyze the ability of those obligated entities to service debt.

After completing this training, participants should be able to:

  • Identify documents needed to construct a global cash flow statement
  • Explain key concepts regarding how to construct a cash flow statement from an individual tax return
  • Explain key concepts regarding how to construct a cash flow statement from a corporate tax return
  • Construct and analyze global cash flow for related entities through the use of a case study illustrating cash flow movements between related companies and their common owners
  • Use a global cash flow statement to determine the borrower’s ability to service the debt
Target Audience Experienced small business/business banker or private banker
Duration 3 days

  • Analysis of Complex Personal Financial Statements
Analysis of Complex Personal Financial Statements
Course Overview Whether making a decision to lend to an individual for a home or to a privately-held company, lenders will place some, if not all, weight on the strength of the principals’ financial position.  This course will develop the skills necessary to analyze complex personal financial statements, particularly those of high net worth individuals.  The course moves beyond analyzing historical tax returns to forecasting an individual’s future ability to provide either cash flow or collateral support.

After completing this training, participants should be able to:

  • Analyze the capacity of the individual to generate recurring cash flows.
  • Determine the true value of the individual’s assets and liabilities supporting the credit.
Target Audience Experienced small business/business banker or private banker
Duration 2 days

  • Credit Risk for Private Bankers
Credit Risk for Private Bankers
Course Overview Participants are introduced to the risks involved in lending to individuals with focus on individuals whose wealth is derived from ownership in a small or medium sized business enterprise. The training includes the following modules:

Module I – Introduction to Credit Risk:  Five C’s of credit analysis, sources of wealth/wealth life cycle, risks of lending to wealthy individuals, overview of financial statements 

Module II – Fundamental Credit Analysis: Individual income/cash flow analysis, adjusted net worth/contingent liabilities, leverage/liquidity/financial ratios

Module III – Critical Credit Knowledge: Forms of business organization, lending to business owners, lending to different professionals (physicians and attorneys), loan documentation basics

Module IV – Loan Structure: Typical borrowing needs/requests of wealthy individuals, loan structure fundamentals, collateral/guarantees/covenants, loan compliance/monitoring

Module V – Making the Client Call: Call preparation and exploring additional banking opportunities for existing and prospective clients, and understanding the perspective of the underwriter in making credit risk management decisions

Target Audience Any private banker
Duration 2 days

  • Analysis of Credit Risk & Trusts
Analysis of Credit Risk & Trusts
Course Overview This course teaches participants the purpose, structure and use of trusts as well as how to approach credit analysis when considering lending to trusts.  Participants will gain an understanding of:

  • how trusts are used for estate planning purposes
  • differences between grantor trusts vs. non-grantor trusts as well as revocable vs. irrevocable trusts 
  • key trust tax forms and schedules and how to calculate cash flow from a trust tax return, 
  • Distributable Net Income (“DNI”) as well as the difference between Trusts Principal and Trust Accounting Income (“TAI”)
  • how to evaluate the primary and secondary sources of repayment when lending to a trust
Target Audience Any private banker or other lending staff involved with trusts
Duration 1 day

  • Real Estate Underwriting for Private Bankers
Real Estate Underwriting for Private Bankers
Course Overview This course provides the private banking professional with a basic understanding of real property investments and financing, from the perspective of a private banker.  Participants learn:

  • fundamental principle of understanding real property as an important component of an investor’s portfolio
  • techniques for analyzing the client’s real property investment 
  • how to conduct more detailed discussions with bank underwriting personnel
Target Audience Any private banker
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.