2019 Credit Analyst School Agenda

2019 CCBN CREDIT ANALYST SCHOOL
February 26, 27 & 28, 2019,
Marriott Newport Beach Hotel
April 9, 10 & 11, 2019,
​Residence Inn Sacramento Downtown at Capitol Park

AGENDA
 
Day One
 
Role of A Credit Analyst and Why It Is a Vital Part of The Credit Underwriting Process.

• The role of commercial lending in the banking industry
• Organization structure of credit administration and where credit analysts are positioned
• Requirements and responsibilities of the credit analyst
• Skills and professional traits of successful credit analysts required to be successful including:
  • What information is required to match the loan request;
  • Best practices in spreading financial statements;
  • Knowing the right questions to ask;
  • How to communicate analytical results to more senior lenders.

 
Basics of Accounting Refresher

• Understand the role of accountants and the standards they must follow Generally Accepted Accounting Principles (“GAAP”)
• Know the influential organizations responsible for creating and amending accounting standards
• Know the major accounting assumptions utilized to produce financial statements in accordance with GAAP
• Review the rules of debits & credits

 
Introduction of Comprehensive Case Study

• This case study will be used to apply and practice the credit analysis concepts and tools presented over the course of the program.

 
Detailed Review of Financial Statement Components

• Identify the major accounts displayed on financial statements for:
  • Commercial and Industrial Relationships
  • Commercial Real Estate Relationships
• Understand the accounting development of major asset accounts that banks rely upon as a primary source of repayment
• Review the notes to financial statements and understand how useful they are to the underwriting process

 
Best Practices to Spreading Financial Statements

• Understand the importance of being consistent and concise in preparing financial statement spreadsheets
• Understand how to utilize the structure of financial statements to produce the desired results from financial statement analysis software 

 
Day Two
 
Analyzing Corporate Tax Returns

• Review the various tax forms required to be filed by various organizational structures
• Understand the flow of tax forms into Form 1120, 1120S and 1065
• How to analyze schedule K-1 for pass-through entities
• Understand how to maneuver through tax returns in order to obtain required information
• Know how to convert tax return income into cash flow

 
Understand How to Calculate Credit Related Ratios to Determine:

• Liquidity
• Leverage
• Asset management capabilities
• Operating performance

 
Day Three
 
Cash Flow Analysis to Convert Income into Cash

• Financial Statements prepared on an accrual and cash basis:  their advantages and disadvantages
• Understand how cash flow analysis is the process of converting an accrual basis financial statement into a statement of cash flow
• Review the rules of cash flow
• Demonstration of cash flow analysis utilizing the Uniform Cash Analysis (UCA) method
• Comparison of UCA with Traditional, EBITDA and the Indirect Methods of calculating cash flow
• Identification of the four facilities of cash flow analysis utilizing Traditional and EBITDA methods

 
Financial Forecasting and Calculating Sustainable Growth Rates

• Developing a cash budget when a more precise inflow and outflow of cash is required
• Converting management’s assumptions into a projected income statement, balance sheet and cash Flow Analysis statement
• Sensitizing management’s assumptions to create a more conservative financial forecast
• Determine the sales growth level without increasing leverage beyond a safe level

 
Check Your Understanding – Online Multiple-Choice Final Exam
 
Wrap-up
 
Awarding of Certificates
 
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