Delaware Bankers Association

Breaking into Banking

The DBA is pleased to offer two new online videos in Keusal Learning's "Breaking into Banking" series. Breaking into Banking 101: Fundamentals of Commercial Banking; and, Breaking into Banking 201: Analyzing Repayment Sources. Breaking into Banking 101 contains 10 learning modules, over 5 hours in total content. Breaking into Banking 201's nine modules covers topics including how to analyze income statements, balance sheets, collateral, and risk rating. Each module includes a video lesson and a multiple-choice self-check. Many of the lessons include exercises for learners to work through that are related to a sample company outlined in the course’s Reference Guide (pdf). This course is appropriate for credit analysts, lenders, portfolio managers, and others who need skills in financial statement analysis and writing credit documents.

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Breaking into Banking 101:
Fundamentals of Commercial Banking

Course Description: Commercial banking can be intimidating because of its complexity and the risk-oriented nature of the work. This course is a clear and thorough introduction to the key concepts, terminology, and processes involved in credit and lending. It doesn’t assume much prior knowledge of the topic, so it’s ideal for those in their first year in the industry. Learners will walk away with a clear understanding of their job and how their specific role fits into the bank’s overall profitability goals.

Target audience: New credit analysts, lenders, and underwriters, as well as bankers who don’t do credit analysis but need a working knowledge of the process. This may include statement spreaders, loan processors and closers, treasury management associates, administrative support for credit or lending officers, branch managers, and interns.

Duration: In-person workshop: Typically 1 day; includes 6 hours of facilitation plus breaks Online videos: Ten 30-minute modules, total of five hours of instruction plus self-checks

1. The Business of Banking Why customer relationships matter
Identifying and managing risk
Net interest income vs. fee income
2. Why Businesses Borrow Money Working capital financing
Real estate and capital expenditures
Start-ups, buyouts, bridge loans, and losses
3. The Art of Underwriting - Part I Industry considerations
Life cycle stage of your borrower
Analyzing quality of management
4. The Art of Underwriting - Part II  Four levels of quantitative analysis
Balance sheet: liquidity and leverage
Income statement: margins and coverage
5. Loan Structuring - Part I Types of loan facilities
How loan pricing really works
Tenor and amortization
6. Loan Structuring - Part II Analyzing your collateral
What loan covenants do for you
The value of guarantees
7. The Credit Approval Process Courtship and the “life of a loan”
Selling the deal twice – bank and customer
Loan documentation
8. Loan and Portfolio Monitoring Understanding “Expected loss”
Loan grading – regulatory definitions
Asset performance and loan loss provisions
9. The Complex Lending Machine Internal relationships
Introduction to twelve key banking groups
Critical partnership: Credit and Lending
10. Test Drive Your Job A day in the life of a credit analyst
Prerequisite traits for success
Career advice and how to love your job

Breaking into Banking 201: Analyzing Repayment Sources

Course Description: This 9-module online course is a “sequel” to the 101 course and is best taken after completion of that course, though it is not a prerequisite. The 201 course dives deeper into topics covered in modules 4, 6, and 8 of the 101 course: analyzing a borrower’s balance sheet, income statement, collateral, and risk ratings.

Target audience: This course is most appropriate for credit analysts, lenders, portfolio managers, and others who need skills in financial statement analysis and writing credit documents.

Duration: In-person workshop: Typically 4 hours of facilitation plus breaks Online videos: Nine 20-minute modules, total of three hours of instruction, plus exercises and self-checks

1. Introduction and Overview Outline of course objectives and topics
Understanding primary and secondary repayment sources
Why banks need accurate loan data to estimate credit losses
2. Balance Sheet Analysis, Part 1: Analyzing Liquidity Better definitions of assets, liabilities, and equity
Measuring liquidity: beyond formulas and ratios
Quality of current assets
3. Balance Sheet Analysis, Part 1: Analyzing Leverage The difference between debt and equity
How to measure leverage
Highly leveraged lending
4. Income Statement Analysis, Part 1: Revenues and Profit Margins Analyzing revenues: growth and drivers
Keys to analyzing gross margin and operating margin
Why Return on Assets (ROA) matters
5. Income Statement Analysis, Part 2: Coverage Ratios Explanation of fixed charges
EBITDA as a proxy for cash flow
Measuring debt service coverage and fixed charge coverage
6. Collateral Analysis, Part 1: Non-current Assets Why bankers need a back-up plan
Commercial real estate as collateral
How to evaluate fixed assets
7. Collateral Analysis, Part 2: Trading Assets Understanding self-liquidating collateral
How to assess the value of inventory
Analyzing a borrower’s Accounts Receivable
8. Collateral Analysis, Part 3: Solving the Problems Understanding Accounts Receivable Aging reports
Borrowing base formulas and certificates
Unsecured and under-secured loans
9. Risk Ratings, Expected Loss, and Provision for Credit Losses Assessing an obligor’s likelihood of repayment
Dual risk ratings and expected loss
Provision for Credit Losses and why it matters

Andy Keusal - Founder and President, Keusal Learning : Andy Keusal is passionate about using his teaching gift to help others reach their God-given potential. After earning his B.A. in Psychology from the University of Notre Dame, he spent eighteen years in commercial banking, during which he interviewed, hired, and trained hundreds of new bankers. He also helped build and run one of the nation’s premier credit training programs at a large Midwest regional bank. He left his corporate career in 2015 to found Keusal Learning, where he now helps people master the basics of banking. Many of his trainees have moved on to prosperous careers in banking, private equity, and even business ownership.

As a husband and father of ten children, Andy devotes much of his time and energy to helping his wife Andrea educate their nine children still living at home. Whether at home or in the workplace, Andy has a knack for making complex things simple, using humor and a comfortable presentation style to communicate with his audience. He is the author of the popular book, “Breaking into Banking: Cracking the Code on Launching a Successful Career in Commercial Banking,” and the creator and facilitator of the video course by the same name.