Reviewing Your Loans and Mending Fences Before the Regulators Arrive

Course Description

In today’s current economic environment, managing the Commercial and Consumer Loan Portfolio is paramount in order to maintain a safe and sound financial institution. The five regulatory agencies are becoming more demanding in their review of banks in light of the recent large bank failure that occurred on the west coast and the increased number of banks currently on their “Trouble Bank” list.

Managing the loan portfolio in the face of these factors requires a different approach than in normal times. This one-day program is designed for anyone with management responsibilities of a part or the entire bank’s Loan Portfolio.

The program begins with a discussion of those Macro Economic, Industry, Business and Management factors that must be considered as part of loan portfolio management then followed by examining the quality of credit file documentation, which includes an assessment of the Credit Memorandum and Loan Documentation; then, followed by a discussion on effective management tools required to navigate the bank through today’s challenges. Specifically, the course will cover the following areas:

  • Expectations of Regulators as it Relates to a Bank’s Loan Review Program to Insure Safety and Soundness Principles are Maintained
  • Determining Borrowers’ Creditworthiness by Reviewing Financial Statement Analysis Techniques, Ratio Analysis and Cash Flow Analysis for Commercial and Industrial Loans and Commercial Real Estate Loans
  • Review of Proper Loan Grading Techniques Based Upon a Clear, Objective and Measurable Standard and the Use of Credit Scoring Worksheets and Loan Grading Matrix
  • How to Review Essential Loan Documentation Procedures to Ensure the Bank’s Collateral Position is Properly Attached, Perfected and Legally Enforceable
  • Review Effective Methods of Performing an Internal Loan Review Prior to the Arrival of the Regulators
  • Methodology Required for Calculating the Allowance for Loan and Lease Losses in Accordance with Accounting Codification Standard 450-20 (formerly FASB 5) and Accounting Codification Standard 310-10-2 through 30 (formerly FASB 114) Among Other Guidance
  • Review of the Prudent Commercial Real Estate Loan Workout Strategies Guidance Released on October 31, 2009.

Who Should Attend

This course is designed for anyone with management responsibilities of a part or the entire bank’s Loan Portfolio including:

  • Senior Credit Officers/Risk Managers
  • Senior Loan Officers
  • Commercial & Consumer Loan Officers
  • Commercial Branch Officers
  • Credit Analysts
  • Auditors
  • Loan Review Officers
  • Accounting Personnel
  • Directors
  • CEOs & Presidents


"Jeffery did a fantastic job all week keeping us engaged in the material and involved. He was a fantastic coordinator & lead professor"

Cliff Knowlton, Prime South

"WONDERFUL!! Great Instructor, great information. Will definitely attend more of Jeffery's classes".

Ansley Oliver, Georgia Commerce Bank

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