Curriculum

Case Study Approach and Overview of Cases

The core of the Advanced Lending School centers around four case studies. Each case has been developed to address a wide variety of decision-making challenges typically presented to community bank lenders.

Approximately four hours will be devoted to each case. The instructor will introduce and develop key variables, the operating cycle, typical financing requirements and borrower financial information. Case study groups will work each case independently for two hours. At the conclusion of group work, groups will present their findings and support their decisions. During the summary session students will be asked to present cases from various perspectives, including the lender, the stockholder and the regulator. The class will be divided into teams.

The four cases could include the following.

Case One

This company operates in the retail space with most revenues generated through company operated retail stores and, to a lesser extent, some revenues generated through a distribution channel that sells products to other retail stores. Most of the products are imported; however, the company does some light manufacturing. All products are targeted at the leisure aspect of the consumer and include: patio furniture, barbeque equipment, and indoor and outdoor fireplaces. The case is challenging and creates opportunities to develop strategies and provide analysis pertaining to real estate, working capital and acquisition financing, lease versus buy decision for a corporate aircraft, return on capital assessment, management succession and unique family issues when owning and managing a family business. The group will be asked to assess the situation and provide recommendations as well as review and discuss strategic corporate initiatives.

Case Two

Commercial real estate lending has been a major source of revenue for many banks. Traditional lending focused on one CRE transaction at a time. Traditional lending wisdom got many banks in trouble starting in 2007. During the period between 2007 and 2013, many banks incurred large CRE loan losses. Many of these banks failed. This case study will focus on today’s commercial real estate lending pressure points and address the question: Is the banking industry already repeating mistakes made in the past?

Case Three

This comprehensive case study starts with a review of a new loan proposal and follow it through the various preparation stages all the way to a presentation to a large loan committee. During the discussion, participants will examine: the loan origination process; the role of the credit analyst; financial statement analysis; the role of the senior lender and the role of the large loan committee.

Case Four

An asset-based lending case that addresses the credit and operational risks associated with this type of small business lending. A range of topics will be discussed including structuring revolving lines of credit; the borrower’s business operating cycle; projecting working capital requirements; establishing the borrowing base; defending against the deterioration of accounts receivable and inventory assets; and how to determine when it is time to term out revolving debt. All of these aspects will be incorporated into a case study.