Training the Credit Analyst

Course Overview

Training the Credit Analyst is an introductory course designed to address the needs of beginning credit analysts and reinforce the credit skills of current credit analysts in all aspects of credit analysis. It begins with a thorough review of the components of financial statements and proceeds into analyzing the financial statements by preparing a financial spread and then interpreting the results. The course will teach how to write effective and comprehensive credit analyses which highlight and detail the important trends shown on the financial spread sheet. Other analytical tools that will be covered in detail include: Cash Flow Analysis; Break-Even Analysis; Ratio Analysis, Financial Projections; Sustainable Growth Rate Calculation; Sensitive Analysis; Industry Comparison Analysis and Loan Grading.

Course Objectives

The objective of this course is to provide the Credit Analyst with analytical skills that can be put to immediate use upon return to their respective banks. They will learn to use proven analytical tools which will enable them to assess the degree of risk prior to recommending approval or declination of a credit request. Another objective of this course is to improve the documentation of commercial loan files which will reduce losses and will be viewed favorably by the regulatory community.

Who Will Benefit From This Course?

Training the Credit Analysis is designed for Credit Analysts with little or no experience; Credit Officers; Commercial Loan Officers/Managers; Loan Review Officers and Branch Managers.

After Participating in This Course, The Participants Will:

  • Know the various types of financial statements and be able to identify the components of financial statements including the Balance Sheet, Income Statement, Statement of Cash Flows, and Reconciliation of Net Worth.
  • Know how to read the Notes to Financial Statements and identify latent Notes which may have a major impact on the operating performance of a credit.
  • Know how to spread the financial statements consistently and interpret ratio analysis so that trends can be identified.
    • Know how to perform a detailed Cash Flow Analysis by calculating the sources and uses of funds from one accounting period to another.
    • Know how to prepare financial projections based upon assumptions provided by the borrower, then to test those assumptions by utilizing sensitivity analysis.
    • Know how to calculate the Sustainable Growth Rate and understand how varying rates of growth will impact the financial condition of the borrower.

    Prerequisites

    In order to obtain the greatest benefit from this course, participants should have a general understanding of Accounting and have a basic understanding of financial statement and credit analysis.

    Seminar Speaker - Jeffrey Johnson

    Jeffrey Johnson is Executive Vice President and Senior Consultant at Bankers Management, Inc. in College Park, Georgia, and has more than 24 years' experience in the banking field. Most of Johnson's career has been spent on the sales, lending, and credit analysis side of banking. He has managed several loan portfolios at regional and community banks, representing a cross-section of loan types. Johnson is lead instructor at CBAI's Commercial Lending Institute and is a faculty member at the CBAI's Midwest School for Community Bankers. He also conducts extensive training for the Community Bankers Associations of Georgia, Illinois, and other community bank counterparts. He is a graduate of Morehouse College, Atlanta; John Carroll University, University Heights, Ohio; and Prochnow Graduate School of Banking, Madison, Wisconsin. Johnson received his graduate certificate in bank management from Wharton School of Business at the University of Pennsylvania, Philadelphia.

    Testimonials

    "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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