Friday, June 12, 2020 (2 parts with 30 min break)
12:00 – 3:30 pm (Eastern Time)
11:00 – 2:30 pm (Central Time)
10:00 – 1:30 pm (Mountain Time)
9:00 – 12:30 pm (Pacific Time)
The COVID-19 virus has accelerated the potential for a recession. History suggests that most of the losses incurred by banks are loans made in the last two years of a recovery. Prior to COVID-19, banks had become more aggressive in their underwriting, structure, and pricing of loans raising concerns with the regulators.
Now is the time to remind experienced lenders and educate young lenders how to identify potential problem industries and borrowers while the borrower is still reasonably cooperative, has a viable core business, the bank still has a reasonable collateral position and the opportunity to encourage the borrower to find another bank. This credit webinar will focus first on the three deadly sins that cause large numbers of problem loans in banks. Participants will then learn how to identify potential problem borrowers and industries.
Identifying a potential problem loan must be followed by a meeting with the borrower. The credit webinar will outline the “first steps” to prepare for the meeting and discuss the objectives of the first and subsequent meetings. Students will work through a structured process to evaluate alternatives and reach a decision on the approach which provides the most money-present valued, in the least time, with the least cost and least risk. A case study will be used to demonstrate application of the concepts.
At the end of this credit webinar, participants should be able to:
- Identify three deadly sins that lead to large numbers of problem loans in banks
- Describe the causes of problem loans
- Employ tools to quickly Identify potential problem loans
- Perform the first steps to prepare for a meeting with a problem borrower
- Outline the objectives of the first meeting with a problem borrower
- Evaluate the alternatives available to resolve a problem loan
- Understand how to prepare for a bankruptcy
- Outline steps to avoid lender liability
- Apply the concepts in a case study
Who Should Attend:
- Line Lenders with 2 or more years of lending experience and credit personnel who are responsible for identifying potential problem loans and taking the first steps to protect the bank’s position and begin to resolve the problem.
- This course is not designed for workout specialists who will manage protracted workouts, liquidations, bankruptcies or litigation.
For 27 years, John Barrickman has served as President of New Horizons Financial Group, a financial services industry consulting firm nationally recognized as an expert in the areas of comprehensive credit risk management, credit process, loan policy formation, asset quality rating frameworks, risk based pricing and lender development. John is a frequent speaker and subject matter expert on credit policies and procedures at industry events nationwide. John is also a Consulting Associate for Capital Performance Group.
3.0 CPE Credits