Education Seminar

Writing an Effective Credit Memorandum
Hyatt Regency in Newport Beach

After a detailed credit analysis of a loan request has been performed, it is now time to communicate your findings in writing. Credit memoranda are a primary means of communications within the banking industry. In writing effective credit memoranda, it is not what you say that commands attention, but how you say it.

Credit memoranda serve three functions:

  • They provide information on the condition and status of a customer relationship;
  • They provide a record of thoughts and actions; and
  • They support or recommend action. 

The credit memo should present relevant, material facts and the writers’ thoughts and opinions.  Remember, anything you write in a credit memorandum will become public record if you find yourself in court with a borrower.

Program Objectives

The purpose of this course is to teach skills required to write an effective credit memorandum, which places emphasis upon factors or trends that are important without the need to state the obvious.  At the end of this program you will be able to:

  • Plan and organize the credit memorandum
  • Reduce wordiness and make your memoranda visually appealing
  • Determine what should be covered in a credit memorandum and how to say it
  • Interpret a ratio analysis to enhance the ability to explain the meaning of these ratios in the credit memorandum
  • Explain the results of cash flow analysis to pinpoint the reasons why cash is diminishing or accumulating
  • Identify a series of sample loan presentations that fail to meet the requirements of an acceptable credit memorandum
  • Compose a credit memorandum for an operating company

Agenda

The program will commence at 8:30 a.m. with breakfast and registration beginning at 7:30 a.m., and lunch at noon.

This course will cover the following topics:

  • How to plan and organize the credit memorandum
  • How to reduce wordiness and make your memoranda visually appealing
  • Review a credit memorandum outline and credit approval document preparation policy to determine what should be covered in a credit memorandum and how to say it.
  • Review and interpretation of ratio analysis to enhance the ability to explain the meaning of these ratios in the credit memorandum
  • How to explain the results of cash flow analysis to pinpoint the reasons why cash is diminishing or accumulating
  • Review a series of sample loan presentations that fail to meet the requirements of an acceptable credit memorandum
  • Review a series of sample loan presentations for the following types of loans:
    • Standard commercial real estate loan
    • Acquisition and development loan
    • Multi-family building loan
    • Office building loan
    • Shopping center loan

At the conclusion of the session each participant will compose a credit memorandum for an operating company and receive constructive comments on how the results can be improved, if necessary.
 

Audience

Commercial Loan Officer, Business Banker, Credit Analyst, Loan Underwriter, Loan Review Analyst, Credit Support Officer, Credit Administration, Portfolio Manager, and Personal Banker.

Scheduled Speaker

Jeffery W. Johnson, Principle, Bankers Insight Group

Mr. Johnson started his career with SunTrust Bank in Atlanta as a Management Trainee and progressed to Vice President and Senior Lender for SouthTrust Bank (a large Southeastern Regional Bank) and Senior Vice President and Commercial Banking Division Manager for Citizens Trust Bank of Atlanta (Community Bank).

Most of his career has been spent in Credit Administration, Lending (Commercial, Consumer and Real Estate), Business Development, Loan Review, Management and Training & Development. He has managed loan portfolios representing a cross section of loan types including: Large Corporate, High Net Worth Individuals, Middle Market Companies, Small Businesses, Real Estate and Non-Profit Organizations and managed several loan officers with portfolio management responsibilities.
 

Mr. Johnson is now a training professional in the banking industry by leading various seminars covering important topics relating to issues in banking. He teaches actively for fifteen state banking associations in the United States, Risk Management Association (RMA) and individual banks nationwide. He co-authored a training course entitled “Lending to Service and Other Professional Organizations” for RMA in 2001.
 

Mr. Johnson earned a B.A. Degree in Accounting from Morehouse College in Atlanta, GA; a MBA in Finance from John Carroll University in University Heights, Ohio; Banking Diploma from Prochnow School of Banking at the University of Wisconsin-Madison and a Graduate Certificate in Bank Management from the Wharton School of Business at the University of Pennsylvania.
 

Registration Fees

Early-Bird Registration through Friday, February 8, 2013
CBA Member: $345
Non-Member: $445

Regular Registration
CBA Member: $445
Non-Member: $545

Cancellation & Complaint Resolution Policy

The full registration fee will be refunded if a written notice is received by February 11 and 50% if by February 18. No refunds will be provided after February 18. Substitutions are allowed.

Complaints regarding this program should be directed to John Lingvall, VP & Director of Education at (916) 438-4428.

Location Information

Friday, March 1, 2013
Hyatt Regency Newport Beach
1107 Jamboree Road
Newport Beach, CA 92660
(949) 729-1234

CBA has arranged a special rate of $149 per night. Includes discounted overnight parking and guestroom internet. Please call the hotel to reserve your room prior to February 1, 2013 or click on the following link to reserve online: https://resweb.passkey.com/go/CABN.

CBA will host self parking the day of the event.

Credit Information

Program Level: Intermediate

Prerequisites: Participants should have at least 3 years of experience or prior class work in accounting, analyzing financial statements, ratio and cash flow analysis..

Advance Preparation: None

Method of Presentation: Group – Live (Lecture, Discussion, and Case Study)

Recommended CPE Credits: 6.0 Hours Maximum
(Estimated 2.0 Accounting, 2.0 Specialized Knowledge and Applications, and 2.0 Management Advisory Services)
Sponsored learning activities are measured by program length, with one 50-minute period equal to one CPE credit.  One-half CPE credit increments (equal to 25 minutes) are permitted after the first credit has been earned in a given learning activity.  Please note that not all state boards have adopted this rule.  Some participants may not be able to use one-half credit increments

Commands