Curriculum | Commercial Lending School - Foundational

8:00 AM – 9:30 AM

The Importance of Cash Flow

Commercial lenders must discern with every loan how a borrower will access or generate the required cash necessary to repay loan(s) to the bank in full. This course prepares participants to identify and document the borrowing cause(s) and the key sources of cash required for loan repayment. Participants will apply the 5 C’s of lending to analyze, document and mitigate risks that could negatively impact cash available for loan repayment. They will gain an understanding of how borrowers’ and guarantors’ personal and business financial statements and tax returns aid in underwriting the various repayment sources. Participants will examine the most used lending cash flow analysis methods (including traditional debt service coverage analysis, global debt service coverage analysis and uniform direct cash flow analysis) and discuss the benefits of drawbacks of the application of each method.

• Speaker: Christie Drexler

9:30 AM – 9:45 AM

Break

9:45 AM – 12:15 PM

The Importance of Cash Flow (Cont’d)

Commercial lenders must discern with every loan how a borrower will access or generate the required cash necessary to repay loan(s) to the bank in full. This course prepares participants to identify and document the borrowing cause(s) and the key sources of cash required for loan repayment. Participants will apply the 5 C’s of lending to analyze, document and mitigate risks that could negatively impact cash available for loan repayment. They will gain an understanding of how borrowers’ and guarantors’ personal and business financial statements and tax returns aid in underwriting the various repayment sources. Participants will examine the most used lending cash flow analysis methods (including traditional debt service coverage analysis, global debt service coverage analysis and uniform direct cash flow analysis) and discuss the benefits of drawbacks of the application of each method.

• Speaker: Christie Drexler

12:15 PM – 1:15 PM

Lunch

1:15 PM – 2:15 PM

Fundamentals of Commercial Construction Lending

This course covers the basic elements of construction lending and the factors that impact the credit decision. Is this construction project economically viable? Will the project of the proposed income producing or owner-occupied business building meets the owner’s requirements? Will the general contractor (G/C) complete the project on time and budget to the specifications of the architectural plan and owner?

• Speaker: Dan Harrington

2:15 PM – 2:30 PM

Break

2:30 PM – 3:15 PM

ABA Commercial Loan Simulation™ Orientation

The ABA Commercial Loan Simulation™ at the Foundational Commercial Lending School offers students a real-world, decision-making tool focused on educating, collaborating and negotiating between a wide range of commercial loans. The team-based exercises use practical scenarios allowing students to practice blending the art of deal selection with the rigors of loan pricing and credit underwriting — while aiming to maximize shareholder value.

3:15 PM – 3:30 PM

Break

3:30 PM – 4:45 PM

Simulation Breakout 1

4:45 PM – 5:30 PM

Simulation Bid Session 1

8:00 AM – 9:30 AM

Monitoring Your Commercial Loan Portfolio

This course will cover a wide array of portfolio risk management activities. Balancing business development and portfolio management is a necessary requirement in today’s business banking world. Regulators expect banks to have a robust risk management process in place, while still maintaining profitability. Regulatory oversight also includes evaluating how well the risks associated with the bank’s lending activities are accurately identified, communicated to senior management and the board of directors, and, when necessary, whether appropriate corrective action is taken. The program will cover specific aspects of the risk management process, including procedures and reporting tools that are part of portfolio risk management. It will also include benchmark performance measurements in order to assess loan portfolio quality.

• Speaker: Christie Drexler

9:30 AM – 9:45 AM

Break

9:45 AM – 12:00 PM

Fundamentals of Commercial Real Estate Lending

Commercial real estate (CRE) loans continue to be a major portion of bank loan portfolios. Also, many borrowers continue to hold significant amounts of income-producing or rental real estate on their balance sheets.  Whether directly financing these assets or including the income stream(s) in your overall credit analysis, it is important to understand key analytical concepts in evaluating real estate cash flow.  And with the longer-term structure of these credits, it is important to use the updated cash flow analysis as part of ongoing loan monitoring and updating of collateral values – not in lieu of appraisals, but as interim and supplemental steps between formal valuations.

• Speaker: Richard Hamm

12:00 PM – 1:00 PM

Lunch

1:00 PM – 2:30 PM

Fundamentals of C&I Lending

An emphasis on growing and effectively underwriting and managing C&I loans is essential to the success of banks of all sizes, especially in today’s highly competitive lending environment, yet C&I Lending is still underappreciated by many lenders. This course will clearly define Commercial and Industrial (C&I) Lending and the opportunities this lending line of business can provide for profitable loan portfolio growth, as well as the often-unforeseen risks lenders assume when extending credit to C&I borrowers. This session will explore the fundamentals of C&I financial statement analysis, business SWOT analysis, collateral evaluation, proper loan structuring and underwriting, and portfolio management.

• Speaker: Christie Drexler

2:30 PM – 2:45 PM

Break

2:45 PM – 4:00 PM

ABA Commercial Loan Simulation™

The ABA Commercial Loan Simulation™ at the Foundational Commercial Lending School offers students a real-world, decision-making tool focused on educating, collaborating and negotiating between a wide range of commercial loans. The team-based exercises use practical scenarios allowing students to practice blending the art of deal selection with the rigors of loan pricing and credit underwriting — while aiming to maximize shareholder value.

4:00 PM – 4:15 PM

Break

4:15 PM – 5:15 PM

Simulation Breakout 2

5:30 PM – 6:00 PM

Simulation Bid Session 2

8:00 AM – 9:30 AM

An Introduction to Credit Risk Management: Credit Policy and  Credit Culture

In this session, learn tested best practices for topics such as approval of specific credits, loan committee structures, risk-rating systems, Board of Director input and involvement, MIS systems and more. Learn how they all interact with a bank’s strategic plan, loan reviews and bank examinations.

• Speaker: Derrick Jackson

9:30 AM – 9:45 AM

Break

9:45 AM – 10:15 AM

An Introduction to Credit Risk Management: Credit Policy and Credit Culture

In this session, learn tested best practices for topics such as approval of specific credits, loan committee structures, risk-rating systems, Board of Director input and involvement, MIS systems and more. Learn how they all interact with a bank’s strategic plan, loan reviews and bank examinations.

• Speaker: Derrick Jackson

10:30 AM – 12:00 AM

Evaluating the Commercial Borrower's Business Strategy

A successful business requires borrowers to have a sound business strategy. This course will focus on understanding the key business strategies a borrower should consider in order to be successful. It will cover some critical areas where businesses can go wrong. The content will include such areas of industry considerations, understanding the business cycle and determining if your borrower has devoted sufficient time to understanding critical challenges that can impact their business strategy.

• Speaker: Kevin Nickodem

12:00 AM – 1:00 PM

Lunch

1:00 PM – 2:00 PM

A Conversation with Federal Regulators – Emerging Issues for Lending Portfolios

The session is a panel discussion with representatives of the Federal Reserve, the FDIC, and OCC. Each panelist has a strong credit background, knowledge in regulatory lending emerging issues, and current or recent bank examination experience.

• Panelists: Lorenzo Garza, Joseph Hoge and Kevin Cole

2:00 PM – 2:15 PM

Break

2:15 PM – 3:45 PM

Electives

Profitability: Bank Financial Analysis and Asset/Liability Management

Understanding the components of a balance sheet, and how they drive the income statement, is critical to understanding how commercial lending affects bank performance. Management reporting, including Asset-Liability Management (ALCO) and profitability reporting, are used internally to manage risks, measure progress and drive decision-making. In this course, you’ll learn to identify profit drivers that result in positive financial performance and how to develop a strategy that focuses on strategic objectives that drive long-term success.

• Instructor: Jeff Marsico

Deep Dive into C&I Lending 

This elective applies key Commercial & Industrial (C&I) Lending concepts through real-world business cases in small group settings. Students focus on identifying cash flow and liquidity challenges to enhance their credit analysis and deliver greater value to clients. The course also covers working capital analysis to assess funding needs, the application of UCA cash flow methods for loan evaluations, and the principles of source and use of funds. Participants will gain access to resources, including a cash flow early warning checklist, a 5-minute cash flow statement analysis, and an Excel template for evaluating the monetary implications of inefficiencies in the cash conversion cycle.

• Instructor: Michael Wear

Navigating Commercial Real Estate Lending

This elective course is designed for professionals in the commercial lending industry who want to deepen their understanding of current trends and best practices in commercial real estate (CRE) lending. The course will cover hot topics in the market, key appraisal considerations, and the intricacies of perfecting liens. Through an interactive Q&A format, participants will have the opportunity to engage with industry experts and network with peers, fostering a collaborative learning environment.

• Instructor: Joseph Javitz

Understand the Purpose and Benefits of the Small Business Administration Program

• Instructors: Rosemarie Drake and Jeffrey Patterson

3:45 PM – 4:00 PM

Break

4:00 PM – 5:30 PM

Electives

Profitability: Bank Financial Analysis and Asset/Liability Management

Understanding the components of a balance sheet, and how they drive the income statement, is critical to understanding how commercial lending affects bank performance. Management reporting, including Asset-Liability Management (ALCO) and profitability reporting, are used internally to manage risks, measure progress and drive decision-making. In this course, learn to identify profit drivers that result in positive financial performance and how to develop a strategy that focuses on strategic objectives that drive long-term success.

• Instructor: Jeff Marsico 

An Intermediate Guide to Hotel Underwriting and Financing

This course provides a comprehensive primer on hotel underwriting, designed to give participants enough information to be effective in the field. Participants will explore the unique requirements, tools and techniques necessary to identify and understand the credit risks involved in originating a loan for a hotel. This course also covers best practices for documenting the loan, including essential information from the franchisor, franchisee and borrower.

The course assumes participants have some background in CRE underwriting but may not be familiar with hotel-specific requirements. It will introduce industry jargon and concepts that may be new to some participants, while not ignoring the basics entirely. By the end of the course, participants will be able to engage in high-level conversations with potential loan clients, understand best practices when structuring the request, and bridge the gap between initial discussions and detailed underwriting.

• Instructor: John Blanton

Current Industry Updates

This comprehensive panel discussion brings together leading subject matter experts in commercial lending compliance to address the latest regulatory changes and their implications for financial institutions. Participants will gain valuable insights into the latest advancements in Artificial Intelligence (AI), understand the nuances of AI applications in commercial lending and explore the critical compliance requirements under Section 1071 of the Dodd-Frank Act. Additionally, the panel will delve into best practices for underwriting and managing participation loans.

• Moderator: Suzanne Cumming
• Panelists: Derrick Jackson, Rob Newberry, Charles LeFevre

Deep Dive into C&I Lending

This elective applies key Commercial & Industrial (C&I) Lending concepts through real-world business cases in small group settings. Students focus on identifying cash flow and liquidity challenges to enhance their credit analysis and deliver greater value to clients. The course also covers working capital analysis to assess funding needs, the application of UCA cash flow methods for loan evaluations, and the principles of source and use of funds. Participants will gain access to resources, including a cash flow early warning checklist, a 5-minute cash flow statement analysis, and an Excel template for evaluating the monetary implications of inefficiencies in the cash conversion cycle.

• Instructor: Michael Wear

Navigating Commercial Real Estate Lending 

This elective course is designed for professionals in the commercial lending industry who want to deepen their understanding of current trends and best practices in commercial real estate (CRE) lending. The course will cover hot topics in the market, key appraisal considerations, and the intricacies of perfecting liens. Through an interactive Q&A format, participants will have the opportunity to engage with industry experts and network with peers, fostering a collaborative learning environment.

• Instructor: Joseph Javitz

8:00 AM – 9:30 AM

Underwriting the Loan Request

This session focuses on the factors to consider when underwriting a credit loan request to a business client: Analyze the cash flow, confirm or set the amount, term, pricing, collateral, guarantees, covenants and conditions to repay the loan based on the identified risks. Case studies are utilized to assist participants in identifying these risks. 

• Speaker: Kevin Nickodem

9:30 AM – 9:45 AM

Break

9:45 AM – 11:45 AM

Developing the Credit Memo

The session covers the critical elements of constructing a credit memorandum typically associated with commercial lending, including details that should be included in a formal loan presentation. You’ll even be provided with a framework to construct and make improvements to your own credit memo.

• Speaker: Wayne Trotman

11:45 AM – 12:30 PM

Lunch

12:30 PM – 2:15 PM

Underwriting Case Study

In this session, review an actual credit presentation and underwriting analysis that a bank has previously completed. Participants will divide into groups in order to work more efficiently in completing the analysis, and allow time for group discussion.

• Speaker: Wayne Trotman

2:15 PM – 2:30 PM

Break

2:30 PM – 3:30 PM

Influential Client Conversations

At times, you’ll need share news with clients that may be hard for them to hear. It’s critical that you communicate this information properly, as to not damage your lender-client relationship. During this session, we’ll discuss best practices for difficult conversations that will help you make meaningful connections with clients, and maintain their trust.

• Speaker: Vernon Roberts

3:30 PM – 4:00 PM

Class Photo

4:00 PM – 5:00 PM

Simulation Breakout 3

5:00 PM – 5:30 PM

Simulation Bid Session 3

6:30 PM – 8:30 PM

Tacos and Karaoke

Get ready for an exciting evening filled with delicious tacos and epic karaoke performances. Whether you're a taco enthusiast or a karaoke superstar, this event is the perfect opportunity to mingle with students from both schools, have fun, and showcase your hidden talents.

8:00 AM – 9:00 AM

Presentation Skills for Leaders

Lenders make formal and informal presentations to clients and peers. The challenge is cutting through all the noise to be heard and understood. Failing to do this could hurt client satisfaction and how you are viewed internally. This session will cover the basics of thinking clearly to create a strong message — and articulating your message in a way that gets the intended results.

• Speaker: Vernon Roberts

9:00 AM – 9:15 AM

Break

9:15 AM – 10:15 AM

Think Like a Leader

Leadership today is about adapting to change and empowering teams to thrive in uncertain environments. Effective leaders have a deep understanding of self, prioritize purpose over process and focus on creating value. In this session, we will introduce you to several components of the leader's mind. We want you to focus your leadership journey by understanding how today's leaders cultivate a mindset that drives success and resilience in their teams and organizations.

• Speaker: Vernon Roberts

10:00 AM – 10:15 AM

Break

10:15 AM – 11:30 AM

ABA Commercial Loan Sim Review and Debrief

11:30 AM

School Concludes

Please do not make travel plans to depart before the session ends at 11:30 AM. If you elect to depart early, we cannot grant a program certificate.