www.uaa.alaska.edu/ccpd907-786-4938

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1901 Bragaw Street, BOC 3 199

Anchorage, Alaska 99508-3471

T 907.786.4938www.uaa.alaska.edu/ccpd

commercial Lending Education in AlaskaI 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 hindsdirectoruAA’s Center for Corporate and Professional development

www.uaa.alaska.edu/ccpd907-786-4938

financial Statement AnalysisDescription 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 AnalysisDescription 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

credit Presentation, Authorization and Underwriting the Loan Request

Description of Classthis 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 complianceDescription 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

www.uaa.alaska.edu/ccpd907-786-4938

tax Return AnalysisDescription 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 Classthe 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)

Law for BankingDescription of ClassBanking 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

www.uaa.alaska.edu/ccpd907-786-4938

negotiationDescription 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 developmentDescription 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

“The lessons from the leadership seminar are something 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

“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, Directorsphinds@uaa.alaska.edu

907-786-49381901 Bragaw St.

Anchorage, AK 99508

Jacob Taylor, Program Specialistjacobtaylor@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.