2. 1901 Bragaw Street, BOC 3199
Anchorage,Alaska 99508-3471
T 907.786.4938
www.uaa.alaska.edu/ccpd
Commercial Lending Education in Alaska
I would like to introduce you to UAA’s Center for Corporate and Professional Development’s new Commercial Lending
program.We are very pleased to have this opportunity of working with Northrim Bank, First National Bank Alaska and Mt.
McKinley Bank in putting this program together. This will benefit those organizations as well as any lending institutions
within the state of Alaska who currently send their employees out of state for training.
The program was the brainchild of UAA’s Center for Corporate and Professional Development in partnership with Northrim
Bank. Further discussion lead to the fact that other organizations may want to participate in the design and development
of the classes which would make up the core of the Commercial Lending program. First National Bank Alaska and Mt.
McKinley Bank volunteered to assist in the development of the program. Key faculty from UAA’s College of Business
and Public Policy worked alongside the three banks to determine learning objectives for the classes. We decided upon
9 core classes to start. Those classes are Financial Statement Analysis, Cash Flow Analysis, Income Tax Analysis,
Credit Presentation, Loan Structure, Law for Banking, Presentations and Communications, Business Development and
Negotiations. These will make up the core of the Center’s Certificate in Commercial Lending program.
The classes offer the opportunity for individuals within Alaska to gain development opportunities right here in the state,
without the need for that individual to go out of state. We are all aware of issues that someone has to deal with seeking
development outside the state. First, when you go out of state you incur expenses for travel, lodging, meals to mention
a few. You are also gone from the office for days, some involving travel and some involving the class itself. The Center
for Corporate and Professional Development structures classes differently than you will find in a number of professional
development programs. We believe in separating classes by a few days which gives people the opportunity of gaining
the knowledge of the class and then processing it prior to delving into another class. I have seen significantly higher
retention rates for students that have gone through our classes based on that model.
Welcome to the Commercial Lending program! Although the program was developed in conjunction with Northrim Bank,
First National Bank Alaska and Mt. McKinley Bank, it is open to individuals within any financial institution. I encourage
you to look at the information that is included with this introduction. I also encourage you to enroll your employees in the
classes at your earliest opportunity as classes will be limited to 20 individuals. Those who enroll in the first session will
be given priority status for subsequent classes.
Finally, I would like to encourage you to participate in assisting us continue the development of the program. We have a
number of exceptional classes available at this point. I want to make sure that we listen to your needs, which will include
developing additional classes to meet the needs of your organizations and the needs of your employees. As we work
together, more will learn about the exceptional opportunities which exist in the world of banking.
Thank you for being part of this,
Steve Hinds
Director
UAA’s Center for Corporate and Professional Development
3. www.uaa.alaska.edu/ccpd
907-786-4938
Financial Statement Analysis
Description of Class
Participants will have a rudimentary understanding of
financial statement analysis. This course is proposed as a
refresher course for bankers that may have been absent
from commercial lending for a period of time. It is also for
those who may not have received formal credit training.
What you will Learn
• Discuss the use of industry and comparative data within
financial analysis
• Explain and use basic financial ratios to establish the
financial situation of a commercial business
• Compute efficiency and debt ratios for an example
business and explain the results
• Define the basis of accounting used and its effect on
the tax return and their financial statement
• Compute traditional cash flow measures and profitability
for an example business and interpret the result
• Identify financial statement analysis opinions and tools
• Identify key components of an income statement
• Explain the basic structures and purposes of financial
statement components and their tax return equivalents
• Identify situations with positive or negative working
capital
• Compare and contrast the three methods of accounting
• Compute leverage ratios and liquidity for an example
business and interpret your findings
• Describe key standards, limitations and alternatives
within accrual accounting or generally accepted
accounting principles (GAAP)
• Identify key components of a balance sheet
• Identify where other comprehensive basis of accounting
are and are not appropriate
• Explain basis guidelines for classifying and spreading
the data
• Identify several levels of accountant prepared financial
statements
• Discuss the differences in all three presentations of the
financial performance of an example business
• Build a balance sheet, income statement, schedule
M-1 and schedule M-2 on the cash basis for example
businesses
Cash Flow Analysis
Description of Class
Participants will have rudimentary understanding of cash
flow analysis. This course is proposed as a refresher
course for bankers that may have been absent from
commercial lending for a period of time. It is also for those
who may not have received formal credit training.
What you will Learn
• Know ratios to analyze the financial circumstance of
businesses
• Clarify how the SCF and UCA results increase and assist
in the complete financial analysis
• Develop and examine a cash flow model for a more
comprehensive picture of business cash flow
• Describe the benefits and drawbacks of the UCA and
SCF
• Clarify the confines of ratio analysis and why cash flow
analysis is needed
• Recognize cash flow statements and models and their
development
• Describe the two approaches to a statement of cash
flows (SCF)—indirect and direct
• Build a UCA model for an example business and
understand the results
• Build an SCF on the indirect method for an example
business
• Compare the presentations of the banker-developed
UCA cash flow model and the accountant-developed SCF
4. Credit Presentation, Authorization and Underwriting the
Loan Request
Description of Class
This course will focus on the factors to consider when underwriting a credit loan request to a business client. You will be able
to confirm or set the amount, term, conditions, covenants, guarantees and collateral to repay the loan based on the recognized
risks. Case studies will be used to assist participants in recognizing these risks.
What you will Learn
• Identify the strengths and weaknesses of the collateral and guarantors
• Determine the proper size of a line of credit
• Explain the major risks in a credit request and how to mitigate those risks through loan structure
• Explain the risk pyramid: business, financial, structural and operational risk
• Identify industry issues: current and future environmental, industry dynamics and management strategy
• Discuss underwriting cash flow: simple, UCA and global
• Be able to evaluate collateral: lines of credit, real estate and equipment
• Evaluate guarantors: common errors and where to focus
• Discuss loan structure and pricing: loan grading, pricing factors and covenants
Loan Structure, Documentation and Compliance
Description of Class
A comprehensive review of commercial lending requirements from a loan structure, documentation and compliance
perspective. Basic business structure will be covered along with loan structure and loan support. Commercial lending issues
related to loan documentation will be presented along with loan pricing and monitoring in relation to current compliance issues.
What you will Learn
• Evaluate comprehensive loan structure, documentation and compliance case study
• Discuss basic business structure from C corporations to LLC’s
• Discuss current compliance issues such as: Equal Credit Opportunity Act, Truth in Lending Act, Bank Secrecy Act, Fair Credit
Reporting Act, Fair Debt Collection Practices Act and the UCC Article 9
• Review the six elements of loan support: collateral, guaranties, loan agreements, subordination agreements
• Review loan pricing and monitoring issues
• Discuss commercial loan documentation issues with promissory notes, security agreements and guaranties
5. www.uaa.alaska.edu/ccpd
907-786-4938
Tax Return Analysis
Description of Class
Participants will comprehend tax concepts relating to
personal and business entities. They will know how to use
tax returns to estimate the customer’s ability to service
debt. The course will present several aspects of examining
tax returns, including estimating cash flow from tax returns
and defining how taxes influence cash flow and customer
operations. Using various scenarios, this course will cover
all types of business entities - C-corp, S-corp, LLP and
LLC.
What you will Learn
• Explain what constitutes a complete tax return and fraud
identification
• Examine how taxes effect cash flow
• Recognize income trends and non-recurring situations
used in analysis
• Examine tax fundamentals
• Explain the areas on tax returns that can be used to
identify cross-sell opportunities
• Estimate and examine cash flow from business tax
returns
• Examine wage and tip income including the non-cash
and pre-tax benefits related with the source of income
• Generate strategies for predicting future cash flow
• Examine taxable and non-taxable interest and dividend
income
• Estimate the business cash flow using a worksheet and
be able to use the system on the job
• Explain and calculate the source of income information
on Schedule C
• Recognize which sections of the tax return can be
ignored
• Discuss and calculate capital gains and losses
• Know what tax return is most relevant for cash flow
approximation
• Calculate limited partnership income
• Distinguish the areas on Schedule E and compute rental
income
Presentations and
Communications
Description of Class
The primary purpose of this seminar is to enhance your
professional presentation skills. Emphasis is placed on
improving your ability to prepare and deliver presentations
effectively and efficiently. You will receive professional
tips and best practices to deliver information powerfully,
persuasively and professionally to engage and persuade
your audience.
What you will Learn
• Enhance your communication skill for more effective
and persuasive presentations
• Develop powerful, professional presentations around an
essential objective that gains attention and prompts action
• Determine appropriate presentation methods for an
identified audience - internal and external audiences
• Design and develop professional presentations, notes
and handouts
• Deliver successful informative and persuasive
presentations
• Demonstrate the ability to receive, acknowledge and
answer questions following a presentation
• Communicating clearly and concisely
• Tailoring your presentations to meet your audiences’
needs
• Present key concepts and ideas to multiple audiences
• Project control and confidence through effective and
appropriate delivery skills
• Heighten your credibility to advance your career success
“Our next generation of managers and executives
are developing the essential skills for us to carry
our organization forward into the future. I strongly
recommend UAA’s Center for Corporate and
Professional Development to any individual and
organization that wants to maximize on the potential
of its employees and improve its overall performance.”
Timothy J. Vig
President,
USKH
(2007-2014)
6. Law for Banking
Description of Class
Banking and Commercial Lending in particular, are surrounded by laws and regulations. This class will cover legal aspects
of customer types, unsecured and secured lending, creditor’s rights, lender liability, contracts and Uniform Commercial
Code.
At the conclusion of this course you will be able to understand the legal aspects of your work, identify the four sources of
laws that pertain to your work, how to find those laws, and useful interpretive resources, identify the seven different types
of customers you will encounter and the six most important legal issues for each, understand the law of agency and why
it is critical to ensure you are dealing with someone with the appropriate authority, understand the legal issues involved
in unsecured and secured lending, identify the different types of interests in property used as collateral for secured loans,
and to identify your rights as creditor, critical issues you will encounter in bankruptcy, and situations that give rise to liability
claims.
What you will Learn
• Be aware of when its time for you to seek competent legal advice
• Understand the legal aspects of your work
• Identify operational risks you face and ways to mitigate those risks
• Identify the four sources of laws that pertain to your work, how to find those laws, and useful interpretive resources
• Identify the seven different types of customers you will encounter and the six most important legal issues for each
• Demystify the Uniform Commercial Code including negotiable instruments, letters of credit, and secured transactions
• Understand the law of agency and why it is critical to ensure you are dealing with someone with the appropriate authority
• Understand the formation of your agreements
• Understand the legal issues involved in unsecured and secured lending
• Identify your rights as creditor, critical issues you will encounter in bankruptcy, and situations that give rise to liability claims
• Identify the different types of interests in property used as collateral for secured loans
“Two months ago Al Bolea delivered his Applied Leadership Seminar to 16 employees representing
a cross section of the company from the top to the front line. I have seen a change already –
the collective behaviors have advanced and a stronger team is emerging. We are dedicating
the last half of our twice monthly operations leadership meeting to continuing the discussion that
the leadership training has begun. In addition I’ve brought Al back for a repeat performance with
another 16 employees. It’s all about the conversation and my senior leadership team and I have
made the Applied Leadership model part of what we do.”
Rock Hengen
President & General Manager,
NANA WorleyParsons LLC
7. www.uaa.alaska.edu/ccpd
907-786-4938
Negotiation
Description of Class
This course will prepare participants to achieve a mastery
of negotiation so that they will be successful and help their
organization succeed in the world of banking. Participants
will be able to move in and out of business situations with
confidence and success.
What you will Learn
• Master negotiation techniques, strategies and tactics
• Apply the principles of effective negotiation
• Be able to come to an agreement
• Identify objectives, entry and exit points and tradables
within a negotiation discussion that may occur with a
colleague, supplier or customer
• Conduct negotiation discussions
• Enhance communication skills to achieve a win-win
outcome
• Apply effective communication skills in negotiation -
listening, questioning, and nonverbal cues.
• Practice tested negotiation strategies and tactics to
achieve an agreement
• Plan and prepare for a negotiation - setting objectives,
entry and exit points and establishing tradables
• Understand the principles of effective negotiation
including the five stages of negotiation
Business Development
Description of Class
Participants will learn the basic principles of business
development, business development plan creation,
networking skills and time management. This course
will increase efficiency and allow for improved business
processes.
What you will Learn
• Understand basic principle of business development
• Create a business development plan
• Improve networking skills
• Better understand using the telephone as an effective
tool
• Conduct an introductory client meeting
• Be able to discuss strategies to build client loyalty
• Create a selling proposal
• Conduct research, create and present a short-list
presentation
• Show proficiency in speaking and technical
presentations
• Understand the essential elements of time management
• Conduct productive internal business development
meetings
“Thelessonsfromtheleadershipseminararesomething
I practice daily, which is of course a lesson from your
course: that leadership needs to be practiced, that it
can be learned, and should be shared. The beauty of
this is that these practices set up a positive feedback
loop. If you practice well you see an immediate positive
impact, which makes you more determined to practice,
which leads to more noticeable results, and so on and
so forth. One guarantee I think you can make to all
of seminar attendees: they’ll know how to be better
leaders by the time they’re done.”
Isaac Vanderburg
Executive Director,
Alaska Small Business Development Center
8. “In my career as an engineer, I have attended many classes on a variety of
topics and some of them did not turn out to be as beneficial as expected.
However, in this case, I was quite satisfied with the outcome. I think Soren
Orley is an outstanding instructor and he did a great job in teaching us
about financial statement analysis and managerial accounting. Mr. Orley’s
experience in both the public and private sectors helped make this class
much more relevant than if he were just teaching out of a textbook. I
would highly recommend the UAA Center for Corporate and Professional
Development and this class in particular to anyone who wants to learn more
about accounting and finance.”
Roger Weese, P.E., RCDD
Vice President,
Principal Electrical Engineer,
RSA Engineering, Inc.
“For Petro Star and me personally, I found the Applied
Leadership Seminar to be exactly what we were looking
for to take our refinery management team to the next
level. It was so beneficial we conducted an abbreviated
version for our entire refinery operations department.”
Jim Boltz
Senior Vice President,
Engineering & Refining,
Petro Star Inc.
Steve Hinds, Director
sphinds@uaa.alaska.edu
907-786-4938
1901 Bragaw St.
Anchorage, AK 99508
Jacob Taylor, Program Specialist
jacobtaylor@uaa.alaska.edu
907-786-7226
The Center for Corporate and Professional
Development is a program of the Business
Enterprise Institute at the University of Alaska
Anchorage.
