Specialized Lending & Other Topics

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.


Specialized Lending & Other Topics

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.






CONTACT INFO


info@paragonhill.com

  • Developing Innovative Marketing Strategies
Developing Innovative Marketing Strategies
Course Overview Traditional calling efforts tend to develop a mindset of debt products first, any other products or services a distant second.  While this approach serves traditional financial services providers well, the methodology restrains efforts to view the customer calling effort with a mindset of customer objectives first, bank products that help achieve customer objectives second.

After completing this training, participants should be able to:

  • Approach client relationships with a customer-centric mindset
  • Discover the business owners and managers long term objectives
  • Develop an empathetic approach with the clients/prospects
  • Identify debt and non-debt opportunities that support the clients/prospects long-term objectives
  • Develop a long-range plan for the business to achieve their objectives, aligned with bank’s competencies
  • Articulate bank’s capabilities in assisting the business in achieving stated goals, including non-credit oriented groups within the bank

Because the training is based on the goals and objectives of the sponsoring bank, consultation with bank management is required to develop the training so it aligns with the bank’s client and prospect base.

Target Audience Any relationship manager 
Duration 1 or 2 days 

  • Integrating Credit Culture & Guiding Principles
Integrating Credit Culture & Guiding Principles
Course Overview This course focuses on building a common credit and risk management culture within the bank and is designed to bring together a lending group composed of differing career histories with other financial institutions.  The training helps establish and reinforce the common culture representing fundamental principles on which all loans are based and upon which all banking relationships are built. The result is a more coherent and mutually supportive calling, underwriting, and monitoring effort by the bank.

In consultation with bank management, credit values and guiding principles are applied to internal case studies used during the session.

Target Audience Any credit analyst, underwriter, or relationship manager
Duration 1 or 2 days

  • Commercial Real Estate Lending
Commercial Real Estate Lending
Course Overview This training provides a comprehensive view of underwriting when lending on income property. This session provides analytical and diagnostic tools useful for understanding:

  • Real estate finance vocabulary
  • Net operating income, debt service coverage ratios, debt yield and loan-to-value concepts in determining appropriate loan amounts 
  • Value in analyzing a rent roll and tenant credit risk characteristics 
  • Capitalization rates in determining property values
  • Appraisals used in the loan approval process
  • Real estate loan structure decision process, including the use of covenants and other protective features useful to the bank lender
  • Basics of construction lending
  • Importance of scheduling property visits and site inspections
Target Audience Entry level commercial real estate credit analyst, underwriter, or relationship manager
Duration 2 days

  • Analyzing Real Estate Sponsors & Guarantors
Analyzing Real Estate Sponsors & Guarantors
Course Overview The real estate investor/ deal sponsor is an important facet of making a successful real estate loan. This training covers techniques for understanding the true credit value of a real estate guarantor, and an evaluation of the sponsor’s overall integrity and creditworthiness.  Topics include:

  • Personal financial statements of the sponsor and their investments
  • “Peeling away” of different asset classes presented by the sponsor, with a detailed examination of true asset values and cash flow
  • Analysis of sponsor’s liabilities and contingent liabilities 
  • Testing of actual cash flow of sponsor investments, including a detailed examination of the “waterfall” often present in real property investments
  • Overall real estate portfolio evaluation
  • Comprehensive risk assessment of sponsor’s financial strength
Target Audience Entry level commercial real estate credit analyst, underwriter, or relationship manager 
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 

  • Lending to Physicians & Medical Practices
Lending to Physicians & Medical Practices
Course Overview This course focuses on the analytical and marketing skills necessary for bankers servicing physicians and medical services.  Through a combination of lecture and case study work, this training provides participants with: 

  • Knowledge needed to effectively communicate with medical practice managers and physicians, either as clients or prospects, 
  • An understanding of the current health care issues affecting medical practice groups today. 
  • Analytical skills necessary to assess the financial performance of medical practice groups and to underwrite loans accordingly 
Target Audience Any credit analyst, underwriter, relationship manager or other lending staff involved with lending to physicians or medical practices.  Participants should be competent in basic credit underwriting and loan structuring.
Duration 1 day

  • Lending to Law Firms
Lending to Law Firms
Course Overview This training teaches lenders how to evaluate the financial health of a law firm, identify the critical risks associated with lending to a law firm, recognize the key characteristics that signify a potentially successful law firm and finally, and develop an appropriate loan structure to ensure the capacity to access the primary source of repayment. The course will also focus on identifying the numerous opportunities to provide products and services to a law firm, it’s partners and associates.   
Target Audience Any credit analyst, underwriter, relationship manager or other lending staff involved with lending to law firms.  Participants should be competent in basic credit underwriting and loan structuring.
Duration 2 days

  • Energy Lending
Energy Lending
Course Overview This training focuses on lending to upstream and midstream energy companies and emphasizes an analysis of cash flow necessary to amortize the reserve based or midstream energy loan. Topics covered:

  • Bank’s exposure limits and risk tolerance for energy portfolio exposure
  • Development of an oil and gas prospect, from geology to production
  • Mathematics of oil and gas including working interest calculation, overriding royalty interest, royalty interest, and net revenue interest
  • Vocabulary terms used in oil and gas finance and energy-based loans 
  • Common parameters for an oil and gas reserve report and its usage in establishing the reserve based revolving credit facility amounts, including standards for maturity dates and economic reserve life tests 
  • Financial statement analysis, in particular differences between traditional financial presentations and the typical reserve-based company, including use of engineering reports as a proxy for fixed asset valuations
  • Structural techniques used to mitigate risk of lending to energy companies, including differences in covenants used in standard bank underwriting vs. reserve based and midstream loan facilities
Target Audience Any credit analyst, underwriter, relationship manager or other lending staff involved with lending to energy companies.  Participants should be competent in basic credit underwriting and loan structuring.
Duration 2 days

  • Asset Based Lending
Asset Based Lending
Course Overview Often bankers underwrite transactions that have a significant reliance on asset quality, although the transaction may not be considered to be an “asset based” transaction.  Or, a lender makes the assumption that a “hard asset” lender will be their secondary source of repayment without understanding the basics of asset based lending.  This course develops an understanding of the risks associated with financing assets, particularly working capital assets.

After completing this training, participants should be able to:

  • Identify asset based transactions
  • Evaluate and understand the risks of financing A/R, inventory and fixed assets
  • Understand the key role that loan documentation and auditing play in asset based structures
Target Audience Experienced credit analyst, underwriter, or relationship manager.  This course is designed for participants with at least two years of lending/underwriting experience; however, the participant does not need to have asset based lending experience.
Duration 1 day plus 4 hours of pre-work

Interested?

Contact US

today at info@paragon-hill.com

Contact us

Paragon Hill

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