Sponsored by Business Alliance Financial Services
If you would like to register more than one individual from your organization for our commercial lending school, please contact Jennifer Coppock at email@example.com for an invoice.
Accommodations: A block of rooms has been reserved for this event at the Hilton University of Houston. The special room rate will be available until June 15 or until the group block is sold-out, whichever comes first. | Book your room.
The RMA Lending Academy II course teaches the analytical process and decision-making techniques needed to make sound credit decisions through the application of financial accounting, financial statement analysis, cash flow analysis, and transaction structuring. Participants will establish a foundation in the following areas of study: business and industry risk analysis, management analysis, financial statement analysis, cash flow analysis, cash flow drivers, debt capacity, forecasting, and transaction structuring.
WHO WILL BENEFIT?
This course is designed to be the cornerstone of a strong core credit curriculum. Participants should have a basic knowledge of financial accounting and some familiarity with financial statements.
BAFS member price: $2100
BAFS non-member price: $2600
The RMA Lending Academy II will include a key case study for implementation of the concepts. At a minimum, participants will be required to read the cases and develop a viewpoint based on a set of guidance questions prior to the program. In addition, participants may be required to submit an analysis of the case to the instructor prior to the program depending on the objectives of the credit union. Additional cases will be introduced to allow participants the opportunity to practice the credit skills they learn.
In addition to creating a framework for analyzing credits, the participants will learn the specifics of transaction structuring seasonal financing, permanent working capital, term debt, subordinated debt, and equity. Covenants, collateral and terms and conditions of lending will also be covered.
MODULE 1 – INDUSTRY, BUSINESS AND MANAGEMENT
Participants will get an overview of the framework for analyzing credit risk that will be presented during the program. This first module will introduce the case study Perry’s Pickles, which will form the basis of their analysis. The class will have an opportunity to complete an in- depth review of the industry, business and management considerations in this case study. After completing this module, participants will:
MODULE 2 – INCOME STATEMENT ANALYSIS
Participants will examine the framework for analyzing the income statement. The trend and sufficiency of past earnings provides information about the sustainability and predictability of future earnings. After completing this module, participants will:
MODULE 3 – BALANCE SHEET ANALYSIS
Participants will examine the overview of the framework for analyzing the balance sheet. The balance sheet is a financial snapshot, taken at a point in time, of all the assets the company owns and all the claims against those assets. It should be structured to ensure all obligations are paid as agreed; shareholders receive an appropriate rate of return, and successful implementation of the company’s business strategy. After completing this module, participants will:
MODULE 4 – CASH FLOW ANALYSIS
Analyzing the changes in the balance sheet and the results of the income statement are key to understanding a company’s cash flow. This module will review various cash flow formats in order to evaluate the sufficiency and predictability of the company’s cash flow to repay debt and implement its business strategy. In addition, the determination of an appropriate capital structure and the firm’s financial flexibility will be discussed. After completing this module, participants will:
MODULE 5 – PROJECTIONS
The factors associated with developing financial projections will be discussed. The concept of cash flow drivers will be used to develop forecasts. After completing this module, participants will:
MODULE 6 – TRANSACTION STRUCTURING
Participants will review the concept of capital structure and the types of financing available. Participants will understand the role of covenants, and terms and conditions of lending. How to develop and present a viable recommendation for a transaction based on historical and forecasted information will be discussed. After completing this module, participants will:
MODULE 7 – RESTRUCTURING THE TRANSACTION
The purpose of this module is to provide participants with an opportunity to apply the skills learned throughout the program. Based on new information for Perry’s Pickles one year later, participants will prepare an evaluation of the risk of the relationship, prepare an an analysis of the income statement and balance sheet, create a cash flow forecast, and amend the structure, terms, conditions of lending, and the covenant package. Upon completion of this module, participants will be able to:
MODULE 8 – REAL ESTATE FUNDAMENTALS IN COMMERCIAL LENDING
MODULE 9 – CONSTRUCTION LOAN MANAGEMENT