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Writing an Effective Credit Memorandum

Learn skills required to write an effective credit memorandum.

OnDemand
Recorded Tuesday,
August 3rd, 2021
Presented by Jeffery Johnson
2h total length
2.5 CEU Credits
$279.00 or 1 Token

Includes: 30 Days OnDemand Playback, Presenter Materials and Handouts

  • Lending
  • Branch Manager
  • Commercial Lender
  • Compliance Officer
  • Consumer Lender/Retail Banker
  • Credit Analyst
  • Internal Auditor
  • Loan Closer
  • Loan Operations Manager/Specialist

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After a detailed credit analysis of a loan request has been performed, it's now time to communicate your findings in writing. Credit memoranda are a primary means of communication within the banking industry. When writing effective credit memoranda, it's not what you say that commands attention, but how you say it. Credit memoranda serve three functions: 1) they provide information on the condition and status of a customer relationship; 2) they provide a record of thoughts and actions; and 3) they support or recommend action.

This course teaches skills required to write an effective credit memorandum. Learn to emphasize important factors and trends without stating the obvious. In short, your credit memoranda should present relevant, material facts, along with your thoughts and opinions. Remember, anything you write in a credit memorandum will become public record if you find yourself in court with a borrower.

What You'll Learn

  • Balance Sheet analysis
  • Income Statement analysis
  • Cash Flow analysis
  • Calculating and interpreting financial ratios and cash flow
  • Using analysis to determine the Financial Impact of changes in financial factors
  • Questions to raise with the customer after the credit analysis is completed
  • Outline of relevant factors to include in a credit memorandum
  • How to report your finding efficiently and effectively in credit memoranda
  • Apply the concepts to a study case
We'll also explore underwriting and reporting on Commercial Real Estate, Construction Loans, Acquisition and Development Loans and Multi-Family Unit loans. Samples of proven credit memos will be examined to insure bankers are covering the areas required by banking regulators. Learn to:
  1. Strengthen your understanding of credit analysis
  2. Clearly describe the Financial Impact of changes in financial factors, and not just report on what changed
  3. Interpret financial trends and financial ratios
  4. Write succinct and focused credit memoranda
  5. Meet with management armed with relevant questions and issues to be addressed
  6. Feel more confident in defending a recommended course of action based on relevant facts and not instinct

Who Should Attend

  • Commercial Loan Officers
  • Consumer Loan Officers
  • Credit Analysts
  • Loan Review Personnel
  • Compliance Officers
  • Internal Auditors
  • Branch Managers

Participant should have some experience or prior class work in analyzing financial statements and/or credit analysis.

"Excellent presentation for beginner credit analysts as well as a sound refresher for those with credit analytic experience. The instructor was well versed in the topic and presented an engaging style. Easy to follow and understand for all levels. Worth signing up for." -- Catherine Kaminer, Vice President-Commercial Credit, Middlesex Federal

Jeffery Johnson

Instructor Bio

Jeffery W. Johnson started his career with SunTrust Bank in Atlanta as a Management Trainee and progressed to Vice President and Senior Lender of SouthTrust Bank and Senior Vice President and Commercial Banking Division Manager for Citizens Trust Bank of Atlanta.

Most of his career has been spent in Credit Administration, Lending, Business Development, Loan Review, Management and Training & Development. He has managed loan portfolios representing a cross section of loan types including: Large Corporate, High Net Worth Individual, Middle Market Companies, Small Business, Real Estate and Non-Profit Organizations.

Mr. Johnson is now a training professional in the financial industry by leading various seminars covering important topics relating to issues in financial institutions. He teaches actively for fifteen state banking associations in the United States, Risk Management Association (RMA) and individual financial institutions nationwide. He co-authored a training course entitled "Lending to Service and Other Professional Organizations" for RMA in 2001.

Mr. Johnson earned a B.A. Degree in Accounting from Morehouse College in Atlanta; a MBA in Finance from John Carroll University in University Heights, Ohio; Banking diploma from Prochnow School of Banking at the University of Wisconsin and a Graduate Certificate in Bank Management from the Wharton School of Business at the University of Pennsylvania.

Continuing Education Credit Information

Recommended for 2.5 CEU Credit Hours. After attending this webinar, each attendee can receive a Certificate of Attendance for self-reporting of CEU Credits.

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