The increase in market interest rates and a slowing economy are starting to expose weaknesses with some bank borrowers. While credit quality appears to be good, especially when viewed in the context of historical non-performing loans and losses, banks are starting to experience some credit problems. Now is the time when smart bankers take the opportunity to “prune” their portfolio either by forcing potential problem borrowers to address weaknesses in their businesses or encouraging them to find another bank.

This course will focus first on the three deadly sins that cause large numbers of problem loans in banks. Students 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 course 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 series of exercises and case studies will be used to demonstrate application of the concepts.

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.

Program Length: One Day