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The IBA Commercial Lending School is a six-day intensive study of the Commercial Lending process. Graduates will be better prepared to serve effectively and profitably as commercial loan officers.

ROE:  Return on Education

One of the greatest investments any employer can make is in the continued education of its employees.  Seminars, workshops, conferences, and schools not only provide professionals with an updated and contemporary framework to make better judgments and more informed decisions, but they also assist in developing a resourceful network of peer bankers.

The Indiana Bankers Association prodes itself on providing members with one of the best nonprofit banker education programs in the country.  Featured in this brochure is the highly acclaimed IBA Commercial Lending School, which addresses the most immediate and relevant training needs of the financial industry.

We know that bankers demand a strong return on education, "ROE," in terms of dollars, tima and effort spent.  You can count on this school to provide:

• Practical, hands-on curriculum designed for learning by doing and for easy application at the bank.
   
• Small class size to increase networking opportunities and personalized instruction.
  
• A school designed and governed by bankers and taught by edxperienced bankers and consultants.
  
• Reasonable enrollment fees and an academic atmosphere conducive to a stimulating learning experience.

The Curriculum

The External Environment: This module begins with an overview of the business of banking and a brief introduction to the elements of the loan evaluation process, which forms the foundation for the Commercial Lending curriculum. 

Understanding the Borrower's Business:  Each type of business and industry has a unique mix of assets,liabilities, margins, asset utilization and financial leverage.  It is essential that the lender understand these critical differences among businesses. 

Assessing the Borrower's Competitive Position:  This module explores business strategy, a key to success for any company. 

Evaluating Management:  This module examines the management process.  The emphasis is on evaluat-ing the management team focusing on aspects of management including skills, style and integrity. 

Assessing Borrower's Financial Performance:  Unlike previous modules, which covered the subjective aspects of financial analysis, this module considers the objective evaluation of a company’s success in managing the key variables.  Historical financial analysis is the primary tool used in the objective evaluation. 

Projecting Future Performance:  Projections focus on quantifying the borrower’s ability to make future payments based on past financial performance.

Loan Structure and Support:  Previous modules have focused on understanding the borrower’s business and quantifying the borrower’s willingness and ability to repay debt.  Equally important is structuring the loan to assure that the amount of the loan is appropriate, primary and secondary sources of repayment have been identified and the term of the loan is reasonable.  While not a substitute for demonstrated ability to repay; loan support is useful in shoring up a loan that has a few potential weaknesses. 

Effective Relationship Management:  This module focuses on developing and managing profitable customer relationships.  The module opens with a discussion of the changing role of  the lender.  The elements of a value added relationship are defined with emphasis on how the lender can become a trusted advisor.  

Identifying and Managing Problem Loans:  Although problem loans are not always preventable, lenders can minimize losses from them with good underwriting, active monitoring, early problem loan identification and ag-gressive corrective action. This module both draws on earlier material and presents new information to show how problem loans can be identified, and what can be done to curtail losses — from meeting with the borrower to managing a bankruptcy.

Establishing Credit Discipline:  This module, the final one of the course, outlines a framework for establishing credit discipline in a bank.  The module then reviews the components of an effective credit administration process — a written loan policy, an asset quality rating system, a formal loan pricing system, effective committee process, a strong credit administration and loan review function, well- trained lending officers and a positive lending environment. 

The Faculty

The faculty for the IBA Commercial Lending School represents a wealth of lending experience and the ability to communicate this experience in an effective and enjoyable manner. The majority of the faculty members are bankers who “practice what they preach.” Other faculty members include academics, consultants and professionals who add their expertise to create a truly exceptional team. The faculty roster is deemed reliable, but may be subject to change.

John Cochran.  In a banking career spanning over thirty years, John has served in various lending and management positions that have included Compliance and Loan Review Officer, Consumer and Commercial Lender, Chief Lending Officer and President and CEO of a community bank.  Prior to starting his own company in 2000, John held senior management positions in commercial lending as well as directing consumer banking and sales activities in a large branch network.  Since 1990 he has served as the lead faculty member for the Missouri Bankers Association's School of Lending.  He is a faculty member for other state bank association-sponsored commercial lending schools, including the Illinois, Indiana, Iowa, Kentucky and Minnesota Bankers Associations and the Center for Financial Training-Western States.

Gary D. Maples. Gary has served as lead instructor for the Wisconsin Bankers Commercial Lending School for 25 years and has taught at commercial lending schools in Iowa, Nebraska, Minnesota, Michigan, Pennsylvania & Washington, D.C.  He currently serves as a section leader and curriculum committee member for the Graduate School of Banking at the University of Wisconsin-Madison.

Tentative Schedule

June 1
Applications and fees due in the IBA office.

June 27
Registration -  Noon to 1:30 p.m.
Orientation/Pretest - 2:00 to 3:00 p.m.
Class - 3:00 to 5:15 p.m.
Group Outing/Dinner - 6:00 p.m.

June 28 - 30 
Classes - 8:30 a.m. to 5:30 p.m.
Evening casework

July 1
Class - 8:30 a.m. to 5:30 p.m.
Evening Reception and Banquet

July 2
Class - 8:30 a.m. to 3:00 p.m.
Post-test 3:00 p.m.
Adjourn

Admission Information

Who Should Attend?  Bankers who have not been exposed to formal commercial lending training and lenders who want to broaden their commercial lending knowledge will benefit from the school. Graduates will be better prepared to serve effectively and profitably as commercial loan officers. Students should have a solid foundation in the areas of accounting, financial statement analysis and economics. This understanding can be evidenced by AIB courses, college courses, in-house programs, self-study or experience. Students are expected to have had relevant banking experience prior to the school. This normally means a college degree and at least one year of experience, or a high school diploma and five years of banking experience.

Selection of Applicants:  All applications and full registration fees must be received in the IBA office by May 28, 2010. The IBA Board of Education will consider all applications, determine acceptability, and notify the applicant. Decisions of the board will be final.

Registration: Students will register between 12:00 noon  and 1:30 p.m. on Sunday, June 27, 2010. The school will begin with orientation and a pretest at 2:00 p.m. Attendance for both the pretest and the orientation session is mandatory.

Facilities:  All classes, will be held at the IBA Center for Professional Development in Indianapolis. Housing will be at the Jameson Inn, 3850 Eagle View Dr., Indianapolis, IN 46254.  Students will be assigned to a room.

Cost: Tuition for IBA members is $1,195 double occupancy (you will be assigned a roommate) and $1,295 single occupancy. Nonmembers are $2,390 double occupancy and $2,590 single occupancy. Fees include room, board (Continental Breakfast, Lunch, and Refreshment Breaks each day, Dinner Sunday & Thursday evenings), casebook and study materials.

Requirements and Regulations: Participants are expected to attend all sessions. Absences are excused only because of illness, catastrophe, or extenuating circumstances, based upon a written statement submitted to and approved by the IBA Board of Education.

Certificate of Completion: Student performance will be measured using a combination of written exams, class participation, and group presentations. Students who satisfactorily complete all requirements will receive a certificate of completion. Notification of completion or noncompletion will be communicated to the nominating officer.

Refund Policy: Any applicant who is not admitted to the school will receive a full refund. Any applicant withdrawing from the school prior to June 13, 2010, will receive a full refund. Any applicant canceling after June 13, or failing to appear at the school, will forfeit the entire registration fee. Extenuating circumstances will be considered on an individual basis by the IBA Board of Education. Requests for refunds due to extenuating circumstances should be submitted in writing.

Questions: Contact Laurie A. Rees, Indiana Bankers Association, 6925 Parkdale Place, Indianapolis, IN 46254-4673 (317) 387-9380 or e-mail lrees@indianabankers.org.