The GSB Online Seminar Series

The GSB Online Seminars Series offers a convenient, cost-effective way to access quality educational opportunities. Please note ALL times below in CENTRAL TIMEZONE.

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Presenter:  Richard Hamm, Advantage Consulting and Training This 90-minute program will be presented live on: July 23, 1:00-2:30  p.m. Central Time Recording available through: October 23, 2020 Price: $275 With intense competition to capture loans, now more than ever it is important to have a strategic approach to loan pricing.  This includes adequately covering your bank's costs and meeting profit objectives.  It also includes differentiating loan interest rates to reflect relative risk, plus knowing that you CAN win the borrower's business on a basis other than the lowest price.  So, improving your banks loan pricing and profitability has three key steps: Understanding how your bank’s financial structure and performance creates advantages and disadvantages.  It all starts with the loan-to-deposit ratio, then extends to the various metrics that drive calculating the profitability of loans, in terms of return on equity (ROE). Knowing these key variables, the next element is scouting the competition. Uncertain times bring confusion to a competitive market.  We’ll cover several ways to do this.  No more complaining that the competition did something foolish, because usually they did not. Sharpening your bidding skills comes next.  Most pricing situations effectively are bid situations, whether you know it or not.  We’ll cover several strategies to use.  Topics to be covered include: The key variables that determine loan profitability, plus a simple calculation example Using each variable to uncover possible advantages and disadvantages your bank may encounter with your competitors Understanding that it is not a “level playing field” when you compare to non-bank competitors Obtaining premiums (yes, you can) Options, options, options are your friend Being proactive Keeping the economic cycle in mind   Target Audience:  Credit analysts, portfolio managers, assistant relationship managers, community bankers, small business lenders, commercial lenders, consumer lenders, branch managers that lend to business owners, private bankers, special assets officers, loan review specialists and others involved in business and commercial lending Read More

Presenter: Richard Hamm This 90-minute program will be  presented live on:  August 11, 8:30-10:00 a.m. Central Time Recording available through: November 11, 2020 Price: $275   An important part of the commercial real estate (CRE) lending process is the review and interpretation of the property appraisal. This program focuses on the three approaches to value that drive the report. We’ll look at both direct capitalization and discounted cash flow (DCF) for the income approach, including key variables and ways an appraiser’s work may differ from your bank underwriting. The cost approach has benefits to the lending process – benefits that seldom are used. Comparables seem simple, but most bankers do not pose a key question that drives the selection of comps. Finally, some reports develop valuations based on the total enterprise.   Specific subjects that will be covered during the seminar: Key variables in the direct capitalization methodology as an income approach to value Why the appraisers cash flow may not (and probably should not) match your underwriting and subsequent reports or financial statement from your customer The role of “rules of thumb” in direct capitalization Identify situations where discounted cash flow (DCF) is appropriate, with an income-producing property and a residential subdivision as examples Three key aspects of depreciation within the cost approach Two items in the cost approach that can enhance your bank’s underwriting The key question that underpins all other factors with comparables Valuation approaches that include the entire business, not just the bricks and mortar   Target Audience: CRE lenders, commercial lenders, mortgage bankers, private bankers, small business lenders, credit analysts, loan review specialists, special assets officers, lending managers and credit officers Read More

Presenter: Richard Hamm This 90-minute program will be presented live on: August 18, 8:30 - 10:00 a.m. Central Time Recording available through: November 18, 2020 Price: $275   Have you ever been faced with two appraisals done within just a few months, but reach very different values for the same property? Bankers usually focus first on the approaches to value, especially the comparables and also the cap rate or vacancy rate used within the income approach. A group of appraisal sections outside of the approaches to value often hold the clues to why two different value were achieved. This program looks at these other sections and how to effectively analyze them as part of the appraisal review process.   Specific subjects that will be covered during the seminar: Why the ownership interest (fee simple, leased fee, etc.) matters and can change the income approach conclusion Key components of highest and best use, and the conclusion does not always match your borrower’s plan or the existing use of the property Don’t skip over the assumptions and limiting conditions as so much “boiler plate” Identify the difference between hypothetical conditions that you need versus those to avoid Why area and economic data should be somewhat similar among different property types in your market, and why some data should be uniquely tailored to the subject’s property type Other common appraisal deficiencies   Target Audience: CRE lenders, commercial lenders, mortgage bankers, private bankers, small business lenders, credit analysts, loan review specialists, special assets officers, lending managers and credit officers Read More

Presenter: Richard Hamm This 90-minute program will be presented live on: August 4, 8:30 a.m. - 10:00 a.m. Central Time Recording available through: November 4, 2020 Price: $275   An important part of the commercial real estate (CRE) lending process is to establish the value of the collateral, and in many cases, the value does not need to come from a new appraisal. This program reviews  these options that have been in place since the initial set of inter-agency appraisal guidelines in 1994. These options typically involve work internally by bankers. At the other end of the spectrum, some projects are very risky or the dollar amount warrants a review of the valuation by third-party appraiser. How does that work and what can bankers learn from the review appraiser’s approach?   Specific subjects that will be covered during the seminar: General situations where an appraisal is not required (exemptions) Options for determining value when the loan is exempt from requiring a new appraisal Situations where portfolio or market conditions might warrant a new appraisal, even in an exempt situation Regulatory requirements for internal evaluations and a sample form Key components in validating an existing appraisal and a sample form Two situations that make a validation a difficult option Types or levels of reviews: Administrative/compliance, technical, and third party Practical suggestions for setting loan-size limits to trigger the levels of review Sample comments from a review by a third-party appraiser, and how these observations often differ from typical banker review points – what can bankers learn from the third-party approach? Practical issues with finding appraisers to do reviews and/or appraisal management companies (AMCs) What is Uniform Standards of Professional Appraisal Practice (USPAP) Standards Rule 3? Review outcomes, and ideas on when and how to request revisions or corrections to the report   Target Audience: CRE lenders, commercial lenders, mortgage bankers, private bankers, small business lenders, credit analysts, loan review specialists, special assets officers, lending managers and credit officers Read More

Presenter:  Richard Hamm, Advantage Consulting and Training This 90-minute program will be presented live on: June 9, 8:30-10:00 a.m. Central Time Recording available through: September 9, 2020 Price: $275 The 2008-2009 downturn in commercial real estate (CRE) exposed many weaknesses in bank construction lending practices.  This was due, in part, to banks attempting to utilize versions of their residential forms and policies to administer commercial construction loans. Such an approach generally does not adequately control the situation due to many important differences between residential and commercial projects.  This program covers the important steps involved in effectively administering commercial construction loans, including common errors to avoid.  Topics to be covered: Differences between residential and commercial construction loans Factors to consider in gauging the level of risk involved in the project/loan Key issues with construction contracts, budgets and the interest reserve items that determine how you handle a specific loan The level of construction risk The type of commercial construction situations (new construction, repair/renovation, etc.) The loan approval and related conditions or contingencies The commitment letter or term sheet written to the customer Your bank’s policies and procedures The construction loan agreement Adjustments as the project unfolds Tips for other documentation: Surveys, title insurance and bonding Funding controls: Inspections, lien waivers and disbursement methods Completion of the project and stabilization (if applicable) Target Audience:  Commercial lenders, credit analysts and support staff that deal directly with commercial construction loans; mortgage bankers, private bankers, small business lenders, loan review specialists, special assets officers, lending managers and credit officers indirectly involved in the construction lending process Related GSB Online programs/topics: CRE Lending: Issues in Underwriting Construction Loans and Determining Key Risks Consumer Lending: Administering & Monitoring Residential Construction Loans Read More

Presenter:  Richard Hamm, Advantage Consulting and Training This 90-minute program will be presented live on: August 18, 1:00-2:30  p.m. Central Time Recording available through: November 18, 2020 Price: $275 Can you identify the factors that cause cap rates to increase or decrease? How can you mitigate the risk posed by properties with short leases and underlying loans with long amortizations (re-lease or rollover risk)? Whether directly financing commercial real estate (CRE) or including CRE income stream(s) in your overall credit analysis of a borrower, it is important to understand key analytical concepts in evaluating CRE beyond the cash flow and debt service coverage (DSC) and loan-to-value (LTV) ratios. This program covers how capitalization (“cap”) rates are derived and their role in the income approach to CRE market value. It demonstrates (from a case study) how bankers can estimate property values as part on ongoing monitoring of CRE loans. We also cover the qualitative or non-financial issues that affect CRE performance, including re-lease and rollover risk. Specific subjects that will be covered during the seminar: Understanding cap rates and how they are used to link cash flow to property value Using cap rates along with the cash flow as part of ongoing loan monitoring, including estimated property values, not in lieu of appraisals, but as a key part of the overall CRE process Six non-financial or qualitative risks with CRE lending (re-lease and roll-over risk, for example) Other characteristics of CRE that affect ongoing property value   Target Audience: Commercial lenders, credit analysts and small business lenders; consumer lenders, mortgage bankers and private bankers; loan review specialists, special assets officers, lending managers and credit officers   Related GSB Online programs/topics: CRE Lending: Developing a Commercial Real Estate Cash Flow and Key Ratios CRE Lending: Issues with Property Types & Lease Structures CRE Lending: Developing a Global Analysis of Property Holdings Read More

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