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Thursday, May 6, 2021

Credit Analyst Series: Loan Stress Testing for the Credit Analyst

Start Date: 5/6/2021 1:00 PM MDT
End Date: 5/6/2021 2:30 PM MDT


Organization Name: Independent Bankers of Colorado

Contact:
Tara F. Hunter
Email: thunter@ibcbanks.org
Phone: (303) 832-2000

Credit Analyst Series: Loan Stress Testing for the Credit Analyst
1:00 pm – 2:30 pm MT

Stress tested? Not you, your bank’s transactions! Although credit analysts work in the background, they play an extremely crucial role in identifying, measuring, and monitoring credit risk. Stress testing is one tool they can use. This in-depth webinar will explain transaction-level stress testing for both commercial non-real estate and commercial real estate loans.
 
AFTER THIS WEBINAR YOU’LL BE ABLE TO:

  • Recognize the need for stress testing at the borrower level
  • Determine which factors (based on loan type) should be considered in stressing a borrower’s repayment ability for both commercial real estate and commercial and industrial loans
  • Understand the impact of stressed cash flow on both repayment ability and commercial real estate value
  • Distinguish between stress testing based on predetermined factors and the break-even point for individual borrowing entities
  • Describe the impact of borrower stress testing within a loan presentation and how the stress test impacts loan decisioning and risk rating
WEBINAR DETAILS
Credit analysts are charged with identifying, measuring, and monitoring credit risk in any given transaction. An analyst must understand the borrower’s sustainable repayment ability, including both primary and secondary repayment sources. Repayment ability in a “normal” or positive market condition can be relatively easy to determine and used as a basis for the loan decision and risk rating. However, market conditions are not always favorable and adverse conditions can arise relatively quickly (as in 2020). Credit analysts should apply factors which reflect the impact of an adverse market on a borrower’s primary and secondary repayment sources. This presentation will provide insight for credit professionals regarding transaction-level stress testing, including impact to operating income, guarantor support, and collateral, and will include considerations for both commercial non-real estate and commercial real estate loans.
  
WHO SHOULD ATTEND?
This informative session is best suited for commercial lending personnel, such as loan officers, credit analysts, and others responsible for identification and ongoing monitoring of credit risk.
 
TAKE-AWAY TOOLKIT
  • Employee training log
  • Interactive quiz
   MEET THE PRESENTER
Dawn Kincaid, Brode Consulting Services, Inc.
Aaron Lewis, Young & Associates, Inc.
Aaron Lewis is a senior consultant at Young & Associates, Inc. With over 15 years in the banking industry, his expertise is now dedicated to the lending division of Young & Associates where he assists financial institutions with loan, ALLL, policy, and credit-process and compliance reviews. He also conducts seminars on credit risk and compliance.
 
Prior to joining Young & Associates, Aaron was the Vice President Credit Administrator of a community financial institution in southeast Michigan and managed all facets of the lending function, including originations, underwriting, ALLL analysis, servicing, and secondary market compliance. He holds a Bachelor’s in finance from Michigan State University and graduated from the Graduate School of Banking, University of Wisconsin.

THREE REGISTRATION OPTIONS – WHAT YOU GET
1. Live Webinar Includes
  • Unlimited connections within your institution to the Live Webinar
  • Handout and Take-Away Toolkit
  • Available on desktop, mobile & tablet
  • Presenter’s contact info for follow-up
 2. Recorded Webinar Includes
  • Recording of the Live Webinar
  • Available two business days following Live date
  • Handout and Take-Away Toolkit
  • Available on desktop, mobile & tablet
  • Free Digital Download, yours to keep
  • Share link with anyone at your institution
  • Presenter’s contact info for follow-up
3. Purchase the BOTH Option to receive all the benefits listed above!