PROFESSIO NA LS DE D IC A TE D TO YO CC ESS UR SU www.pabanker.com )HEUXDU\, 201 Dear Colleague: I am pleased to present information on the 201 PA Bankers School of Commercial Lending scheduled for June at the Penn Stater Conference Center, State College, Pa. The School of Commercial Lending curriculum primarily focuses on business development, credit structuring, the practical application of commercial lending knowledge, and client and internal communication. The educational content of this program is designed for individuals looking to attain a well-rounded commercial lending skill set. In recent years, it has become increasingly difficult for banks to find and hire quality commercial lenders. As a result, many banks have focused on developing lenders internally, making them responsible for driving this important source of revenue. Upon completion of the School of Commercial Lending, students will possess the skills needed to excel in the commercial lending arena. Please feel free to share this information as appropriate. If you have any questions or need additional information, do not hesitate to call Marilyn Wisniewski, Director of Residential Schools, (717) 255-6934. Best regards, :HV0:H\PHUV 3UHVLGHQWDQG&(2 7KH*UDW]%DQN &KDLUPDQ3$%DQNHUV3URIHVVLRQDO'HYHORSPHQW3ROLF\&RPPLWWHH (QFORVXUH 3897 North Front Street, Harrisburg, PA 17110 • Tel. (717) 255-6900 • www.pabanker.com Professionals Dedicated To Your Success SCHOOL OF COMMERCIAL LENDING PA Bankers School of Commercial Lending primarily focuses on business development, credit structuring and the practical application of commercial lending knowledge, as well as client and internal communication. The educational content of this program is similar to 200- and 300-level college courses and is designed for individuals looking to attain a well-rounded business development and commercial lending skill set. Case studies embedded in the curriculum bring real world scenarios to the classroom providing students with opportunities to share ideas and experiences. Our faculty members add unexplored perspectives, increasing student knowledge and capability. HOW WILL THIS SCHOOL PREPARE STUDENTS FOR THEIR COMMERCIAL LENDING FUTURE? Upon completion of the PA Bankers School of Commercial Lending, students will have a broad-based understanding of their role as commercial lenders and be more effective at business development. The school is a stepping stone to achieving senior lender status. WHO SHOULD ATTEND? • Graduates of PA Bankers Essentials of Commercial Lending Extended Learning Program • Commercial lenders wanting to expand their knowledge and skill set • Branch managers required to be skilled in commercial lending • Credit analysts who need to understand the practical application of lending skills REQUIREMENTS High school diploma and commercial lending and/or credit analysis experience (preferably 2+ years) CONTINUING EDUCATION This program qualifies for continuing professional education credits from the Institute of Certified Bankers. Check www.pabanker.com for credit updates. PROGRAM EXAM Students will be required to take an online exam within 2 weeks of returning to their banking institution. Upon successfully passing the exam, students will receive a Certificate of Completion from PA Bankers. CO-SPONSORED BY New York Bankers Association DIRECT CTOR: CAROLYN CON NCA CANNON CLASS SCHEDULE TIME 8 a.m. 8:15 8:30 8:45 9 a.m. 9:15 9:30 9:45 10 a.m. 10:15 10:30 10:45 11 a.m. 11:15 11:30 11:45 Noon 12:15 12:30 12:45 1 p.m. 1:15 1:30 1:45 2 p.m. 2:15 2:30 2:45 3 p.m. 3:15 3:30 3:45 4 p.m. 4:15 4:30 4:45 5 p.m. 5:15 5:30 5:45 6 p.m. 6:15 6:30 6:45 7 p.m. 7:15 7:30 SUNDAY, JUNE 12 MONDAY, JUNE 13 TUESDAY, JUNE 14 WEDNESDAY, JUNE 15 THURSDAY, JUNE 16 8 a.m. - 10 a.m. How Today’s Environment is Driving the Commercial Lending Business Vince Moye 8 a.m. - 9:30 a.m. Understanding & Analyzing Role of Pers. Fin. Statements in Credit Decisions Jim Kuhn Break 9:45 a.m. - 11:45 a.m. Elements of a Concise Credit Memo John Cochran 8 a.m. - 9:30 a.m. Global Cash Flow Jim Cochran 8 a.m. - 8:55 a.m. Participations & Their Negotiations Al Jones 9 a.m. - 10 a.m. Loan Workouts Session Al Jones Break 10:15 a.m. - 11:30 a.m. Loan Workouts Session (con’t) Break 10:15 a.m. - 11:45 a.m. Financial Statement Analysis: Evaluating a Borrower’s Perform. & Fin. Condition George Kester Lunch Noon - 12:30 p.m. Registration 12:30 p.m. - 1:15 p.m. Welcome & Orientation 1:15 p.m. - 2:45 p.m. Team Building Mark Graziadio 2:45 p.m. - 3:40 p.m. Banking & Cash Management Doug Byers 3:45 p.m. - 4:45 p.m. Accounting Refresher Mark Bettner Break 5 p.m. - 6 p.m. Accounting Refresher (con’t) 6 p.m. - 7 p.m. Class Photo & Welcome Reception w/School of Banking Dinner on Your Own & Read Butler Lumber 12:45 p.m. - 2 p.m. Financial Statement Analysis (con’t) Break Overview-Butler Lumber 2:30 p.m. - 4 p.m. Butler Lumber Group Preparation George Kester 4 p.m. - 5:30 p.m. Butler Lumber Presentations George Kester Lunch 12:45 p.m. - 2:15 p.m. Loan Structure George Kester Break Overview-Toy World 2:45 p.m. - 4 p.m. Toy World, Inc. Group Preparation George Kester 4 p.m. - 5:30 p.m. Toy World, Inc. Presentations George Kester Break 9:45 a.m. - 11:15 a.m. Multi-Family Housing Real Estate Lending John Cochran 11:15 a.m. - 12:15 p.m. The Appraisal Review Process John Cochran Lunch 1:15 p.m. - 3:15 p.m. Relationship Sales Wayne Whipple . Break 3:30 p.m. - 5 p.m. Ethics/Compliance & Corporate Governance Dean Dusinberre Lunch 12:30 p.m. - 1:45 p.m. Presenting to the Borrower & the Loan Committee Jeff Myers Break 2 p.m. - 4 p.m. Moving From Relationship Manager to Resource Manager: Trust-Based Selling in Community Banking Jack Hubbard Wrap-Up & Adjournment Dinner On Your Own Dinner on Your Own &. Read Toy World, Inc. Case Study Dinner on Your Own 2/9/2016 COURSE DESCRIPTIONS TEAM BUILDING Mark Graziadio The course provides an interactive opportunity for students to meet while engaging in a session stressing the value of teamwork and the nature of team operations. BANKING & CASH MANAGEMENT Douglas (Doug) Byers Designed to increase the student’s understanding of cash management, participants will discuss how to increase the bank’s “value” perspective with commercial clients and prospects. Students will use specific examples to “follow customers’ cash,” maximizing their short-term liquidity while increasing the customer’s time efficiencies and security. ACCOUNTING REFRESHER Dr. Mark S. Bettner The course provides a basic overview of general purpose financial statements, their purpose, and their elements. It also illustrates how general purpose financial statements can be used to assess a company’s profitability, solvency and liquidity. HOW TODAY’S ENVIRONMENT IS DRIVING THE COMMERCIAL LENDING BUSINESS Vincent (Vince) D. Moye, Jr. This course will provide the knowledge and skills to be a more effective commercial lender in today’s lending environment. Upon completion, students will be able to explain why good human relations skills are important to the successful lending officer in many stages of the commercial lending process. Participants will learn to: identify the functions of the loan interview and credit investigation; describe how the borrower’s financing needs and business type can affect the structuring of a loan; list important elements of loan documents and describe their functions; recognize warning signs of problem loans; and identify ways to prevent problem loans. FINANCIAL STATEMENT ANALYSIS: EVALUATING A BORROWER’S PERFORMANCE & FINANCIAL CONDITION Dr. George Kester Students will be assisted in using a borrower’s financial statements to evaluate the borrower’s profitability, sources of profitability, financial condition and cash flows. An overview of the basic types of financial statement, the components of financial statements, and auditor opinions will be given. Upon completion of this course, students should be able to perform ratio analysis of a borrower’s financial statements to assess a borrower’s liquidity, asset management, leverage and profitability and understand how to interpret a statement of cash flows. BUTLER LUMBER COMPANY CASE STUDY This case study provides students with hands-on experience in applying the concepts and tools of financial statement analysis to assess a growing company’s performance and financial condition, understand the causes of its increasing borrowing requirements, and evaluate financial alternatives from the viewpoint of both the borrower and lender. The case sets the stage for a module on loan structure. UNDERSTANDING & ANALYZING THE ROLE PERSONAL FINANCIAL STATEMENTS (PFS) PLAY IN CREDIT DECISIONS James (Jim) Kuhn Students will learn how to identify assets/liabilities that haven’t been disclosed on the PFS by using a tax return and credit bureau report. The course will also discuss joint personal financial states vs. guaranty as well as what borrowers may do to protect their assets in a problem situation and what bankers can do to preserve their rights and interests. The value of personal guarantees as secondary and tertiary sources of repayment will be discussed as well. ELEMENTS OF A CONCISE CREDIT MEMO John Cochran The commercial borrower’s credit file must tell a timely and accurate story about the borrower’s current relationship with the bank. This “story” begins with a credit memorandum that will concisely explain the bank’s role in the borrowing relationship. This session, which is structured around the five “C’s” of credit, will address: the borrower’s personal credit history; the key results of financial analysis to be included in the memorandum; the borrower’s liquidity and financial leverage; current and expected economic conditions; the bank’s valuation of current and/ or proposed security interest in collateral; and the value of the borrower’s personal guaranty when and if required. LOAN STRUCTURE Dr. George Kester Covered in this course are issues on how to structure loans according to the borrower’s cash flows and repayment ability. Special emphasis is placed upon financing net working capital, short-term loans, and evaluating a borrower’s debt capacity. TOY WORLD, INC. CASE STUDY Dr. George Kester This case follows the course module on loan structure to provide students with hands-on experience in assessing a company’s borrowing requirements related to a seasonal build-up of current assets. This case is discussed from viewpoints of the company’s management, (who must evaluate the trade-off between profitability and risk in deciding whether or not to adopt a level of production schedule), and the company’s banker, (who must decide whether or not to support the switch to level production by substantially increasing the company’s seasonal line of credit.) Students are provided with monthly forecasted income statements and balance sheets that provide an opportunity to examine the patterns of current assets, cash flows, and borrowing requirements of a seasonal company. Whereas Butler Lumber Company focuses upon growth in “permanent” current assets, Toy World, Inc. focuses upon seasonal swings in “temporary” current assets. GLOBAL CASH FLOW John Cochran Global cash flow integrates the commercial borrower’s business and personal cash flow. The lender’s global analysis of all sources and uses of the borrower’s cash is the essential calculation of repayment capacity for small business owners who typically demonstrate a mix of personal and COURSE DESCRIPTIONS business assets and income. This session will address the following - the multiple applications of the commercial borrower’s global debt service coverage ratio; required borrower financial information to conduct a global cash flow analysis; and the use of a global cash flow template in the calculation of a global debt service coverage ratio. MULTI-FAMILY HOUSE REAL ESTATE LENDING John Cochran The session will address both the underwriting and monitoring requirements for multi-family housing lending. It will address the following: key factors to be considered when underwriting the project’s cash flow and debt service capacity; financial information requirements; project stress testing; project valuation; periodic site visits and market and sub-market conditions. THE APPRAISAL REVIEW PROCESS John Cochran Given the real property concentrations in a bank’s loan portfolio, regulators closely scrutinize the bank’s written appraisal program. The appraisal review process is the bank’s “check and balance” on the effectiveness of this program. The session will address: The Code of Federal Regulations and Financial Institution Letter References; reviewer qualifications; depth of the review and appraisal deficiency resolution; documentation of the review; and three mini-review case studies. RELATIONSHIP SALES Wayne Whipple This course will present a professional approach to building long-term, profitable, multi-product sales relationships with new and existing customers. Retail, commercial services, wealth management and investment sales practices and processes will be explored. Managing the sales interaction will be emphasized without detailing how to sell each unique product a bank may have to offer. ETHICS/COMPLIANCE & CORPORATE GOVERNANCE Dean H. Dusinberre, Esq. This course will involve an interactive discussion of various fact patterns presenting ethical dilemmas that commercial loan officers typically encounter and will explore the corporate governance processes intended to guard against ethical lapses. Students will become more aware of the ways in which their ethics may be tested and how to better respond to those situations. PARTICIPATIONS & THEIR NEGOTIATIONS Albert (Al) Jones Students will learn the basic content of a participation agreement, and will receive an introduction to the key terms in participation agreements. Real-life examples will be provided to explain the interactions between bankers, both as the lead bank and the purchasing participant. LOAN WORKOUTS Albert (Al) Jones Understand how to identify problems surrounding a loan before the loan itself becomes the problem, as well as identify the various types of borrower defaults and remedies available to the lender. This course will feature discussions of various strategies concerning troubled loans and the different types of loans involved. Students will review the basic contents and structure of typical workout agreements, and factors to consider regarding internal loan classifications of troubled loans. PRESENTING TO THE BORROWER & THE LOAN COMMITTEE Jeffery W. Myers Students will learn tips and skills to work with clients in order to prepare for a positive outcome to these questions: How proficiently do you represent your bank across the table from the borrower? Are you creating the win/win relationship? Are you comfortable in how to help the customer save the relationship even when you can’t make the loan? Students will also learn the crucial elements in establishing personal credibility with the loan committee. Students will garner knowledge from the real-life experiences of a seasoned commercial lender on how to effectively manage the difficulties associated with the dual role as a representative for both the bank and the client. MOVING FROM RELATIONSHIP MANAGER TO RESOURCE MANAGER: TRUST-BASED SELLING IN COMMERCIAL BANKING Jack Hubbard Consultative Selling is dead. Solution Selling is in the rear view mirror. The old playbook no longer plays. In this uber competitive environment, the client and prospect are more demanding than ever before. Requires a new approach – Trust-Based Selling. In fact, the Harvard Business Review reports that 60% of potential buyers have researched options and evaluated the seller and the company BEFORE an initial conversation. Today, therefore, and going forward, RM must mean much more than Relationship Manager. This fast-paced class outlines what it takes to become a Resource Manager and provide several practical take homes to help students launch this process immediately. SCHOOL HONOR STUDENTS An online exam will be required of each student upon return to their bank after the conclusion of the program. Students receiving the highest scores will be selected as Honor Students. Their respective Chief Executive Officer will be notified of this achievement and those students will be recognized at the 2017 PA Bankers Spring Summits. Continuing education credits may be earned from attendance at this program toward the Institute of Certified Bankers (ICB) Certified Lender Business Banker (CLBB)* certification program. ATTENTION CPAs: This course has been submitted for CPE credits from the PA State Board of Accountancy. *Certified Lender Business Banker (CLBB): applicable to financial services professionals whose primary function and expertise focuses on the provision of credit and financial transaction services to businesses and/or corporations. DISTINGUISHED FACULTY Mark S. Bettner, Ph.D. Professor of Management Bucknell University Lewisburg, PA Douglas (Doug) L. Byers Sr. Vice President, Commercial Team Leader Northwest Savings Bank Lebanon, PA John Cochran Principal Consultant & Trainer Cochran Associates, LLC Jefferson City, MO Dean H. Dusinberre, Esq. Partner Rhoads & Sinon, LLP Harrisburg, PA Mark A. Graziadio Vice President Honesdale National Bank Honesdale, PA Jack Hubbard Chairman, Chief Sales Officer St. Meyer & Hubbard Elgin, IL Albert (Al) T. Jones Executive Vice President, Commercial Real Estate Penn Liberty Bank Wayne, PA George W. Kester, Ph.D. Martel Professor of Finance Washington & Lee University Lexington, VA James (Jim) F. Kuhn Executive Vice President, Chief Lending Officer Reliance Bank Altoona, PA Vincent (Vince) D. Moye, Jr. Relationship Manager FHLBank Pittsburgh Pittsburgh, PA Wayne R. Whipple Vice President, Business Development & Managing Director PA Bankers Services Corp. Pennsylvania Bankers Association Harrisburg, PA SCHOOL OF COMMERCIAL LENDING JUNE 12 - 16, 2016 THE PENN STATER CONFERENCE CENTER STATE COLLEGE, PA. www.thepennstaterhotel.psu.edu REGISTRATION INFORMATION PA Banker Member ..........................$2,500 Tuition and single room accommodations Affiliate Member ...............................$3,000 Tuition and single room accommodations Non-Member.....................................$3,500 Tuition and single room accommodations Student tuition is for the complete in-residence program and includes registration, single room and board, selected meals and classroom materials. Any registrant withdrawing prior to April 29 is eligible for a refund of 80-percent; there will be a 20-percent retention of the tuition fee for administrative expenses. For withdrawals after April 29, there will be a 50-percent retention of the tuition. No refund will be issued after the school begins. All refund requests must be made in writing to PA Bankers. REQUIREMENTS A high school diploma; some commercial lending and/or credit analysis experience (preferably 2+ years) SUGGESTED COURSE BACKGROUND ABA Training, Accounting, Analyzing Financial Statements, or PA Bankers Essentials of Commercial Lending EXL Program SCHEDULE SUNDAY, JUNE 12 Noon ..............................................................Registration 12:30 p.m. ....................................Welcome & Orientation 1:15 p.m. .....................................................Classes Begin 6 p.m. ............................................... Welcome Reception MONDAY, JUNE 13 – WEDNESDAY, JUNE 15 8 a.m. - 5:30 p.m........................... Classes/Group Work THURSDAY, JUNE 16 8 a.m. - 4:30 p.m........................... Classes/Group Work Visa FOR OFFICE USE ONLY Mastercard #_________________________________ Exp. __________________________________ Date Rec’d __________________________________ Check # __________________________________ Amount: Sgl: R E G I S T R AT I O N F O R M 2016 SCHOOL OF COMMERCIAL LENDING JUNE 12 - JUNE 16 • THE PENN STATER CONFERENCE CENTER • STATE COLLEGE, PA. PA Banker Member – $2,500 Tuition and single room accommodations Affiliate Member – $3,000 Tuition and single room accommodations Non-Member – $3,500 Tuition and single room accommodations Personal Information (please print or type) Name Nickname for Badge Title Bank Name Your Branch Mailing Address City State Business Tel. Cell Zip E-mail Educational Background: High School Some College Associate Degree Bachelor’s Degree Total Years Bank Experience: 1-2 yrs. 3-4 yrs. 5-7 yrs. 8-10 yrs. 11-15 yrs. 16-19 yrs. Gender: Male Female Special needs? No Yes (contact PA Bankers) Master’s Degree 20 or more TUITION: Student tuition is for the complete in-residence program and includes registration, room and board, selected meals and classroom materials. Any registrant withdrawing prior to April 29 is eligible for a refund of 80 percent; there will be a 20 percent retention of the tuition fee for administrative expenses. For withdrawals after April 29, there will be a 50 percent retention of the tuition. No refund will be issued after the school begins. All refund requests must be made in writing to the PA Bankers Association. DEPORTMENT STATEMENT: The banking industry has always prided itself on maintaining a high professional standard of conduct. Individual bankers are expected to perpetuate this reputation by acting in all things and places in a manner that merits trust and confidence. No less is expected of students attending this school. Those who do not comply may be dismissed from the program. An attendance record will be kept throughout the program. PHOTO RELEASE: I hereby grant permission to the Pennsylvania Bankers Association the right to use, reproduce, and/ or distribute photographs of me during my tenure at the School of Commercial Lending, without compensation or approved rights, for use in materials created for purposes of promoting the activities of the Pennsylvania Bankers Association. APPLICANT SIGNATURE: I have read the admission requirements and Deportment Statement and desire to enroll in the school. I agree to abide by all the requirements for participation in this program including adhering to the scheduled arrival and departure times as set by the directors. I have listed all pertinent information regarding my qualifications for admission. Applicant’s Signature Date Mail completed original application and check (payable to Pennsylvania Bankers Association) to: PA Bankers 3897 North Front Street Harrisburg, PA 17110 THIS INSTITUTION DOES NOT DISCRIMINATE WITH REGARD TO RACE, COLOR, GENDER, AGE OR DISABILITY. PRSRT STD US POSTAGE PAID HARRISBURG PA PERMIT NO 775 3897 North Front Street Harrisburg, PA 17110 www.pabanker.com SCHOOL OF COMMERCIAL LENDING DIRECTOR ASSISTANT DIRECTOR Carolyn M. Concannon Sr. Vice President, Chief Credit Officer AmeriServ Financial Bank Johnstown Eric S. Williams Vice President, Commercial Loan Sales Manager Atlantic Community Bankers Bank Camp Hill ADVISORY COMMITTEE Garry R. Benfer Sr. Vice President, Loan Administrator Mifflinburg Bank and Trust Company Mifflinburg Amy L. Doll Sr. Vice President, Chief Lending Officer PEOPLESBANK, A Codorus Valley Company York Brian A. Lawrence Vice President, Commercial Lending Fox Chase Bank Hatboro James A. Cronauer, Jr. Vice President, Chief Lending Officer Marion Center Bank Indiana William J. King, Jr. Sr. Vice President, Commercial Lending Mgr. Washington Financial Bank Washington William F. Wise, Jr. Sr. Vice President, Commercial Lending Mgr. Hometown Bank of PA Bedford PA BANKERS’ CONTACTS Jackie Catalano Vice President, Training & Meeting Management (717) 255-6939 jcatalano@pabanker.com Marilyn Wisniewski Director, Residential Schools & Meeting Operations (717) 255-6934 mwisniewski@pabanker.com PENNSYLVANIA BANKERS ASSOCIATION 3897 North Front Street • Harrisburg, PA 17110 Tel. (717) 255-6900 • FAX: (717) 233-1477 • www.pabanker.com PROFESSIONALS DEDICATED TO YOUR SUCCESS