Part 2: Analyzing, Underwriting, and Structuring Loans for Construction Contractors: Build It and They Will Come

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Lending to construction contractors is risky business, but this 2-hour webinar in 2 sessions will show you how to evaluate that risk, how to underwrite an appropriate lending structure, and how to monitor and manage that credit exposure. The construction industry accounts for 10 to 20% of a local economy, so extending credit thoughtfully to this sector benefits both your organization and the market you serve.

Topics discussed include:

  • Volatility of construction risk in economic cycles—accelerator principle
  • Supply chain risk for contractors—scarcity and volatility of construction materials
  • Payment process for contractors and subcontractors
  • Key elements in contractor accounting and financial statements
  • Progress billings, retention, and collateral value
  • Role of sureties in providing bonds to contractors—lien priorities
  • Useful conditions and covenants in contractor loan underwriting

Who Should Attend: Credit Analysts, Loan Underwriters, Commercial Bankers, Loan Review Officers, Credit Department Managers, Senior Lenders, Chief Credit Officers

Learning Objectives

  • Learn how to analyze key contractor accounting disclosures such as underbillings, overbillings, progress billings and the contractor job status reports
  • Learn how to judge your contractor’s financial condition and performance compared to industry ratios and statistics
  • Learn how to evaluate repayment ability by projecting operating cash flow based on the contract status report and the contractor’s financial statements
  • Learn how to assemble key underwriting elements of loans to contractors into a viable credit presentation—cash flow, collateral, guarantees

Speaker

Dev Strischek
Principal
Devon Risk Advisory Group
As principal of Devon Risk Advisory Group, Dev Strischek specializes in credit risk and commercial banking management, training, and development. He is a frequent speaker, instructor, advisor, and writer for many different educational groups and associations. Dev is also recently retired from his role as SVP and senior credit policy officer at SunTrust Bank, Atlanta, where he was responsible for developing, implementing, and administering credit policies for SunTrust’s wholesale lines of business; including commercial, commercial real estate, corporate investment banking, capital markets, business banking and private wealth management.

Webinar Fees

Pricing For Price Season Pass
Bank Member $195 $0
Bank Nonmember $395 $0
Affiliate Member $195 $0
Affiliate Nonmember $395 $0

Season Pass Members receive 4 individual logins to every webinar

Additional Info

Participants will earn 1.0 CPE credit

Field of Study: Specialized Knowledge

Prerequisites: None

Advanced Preparation: None

Program Level: Basic

Delivery Method: Group Internet Based

Refunds and Cancellations: Webinar registrations are non-refundable. If the registrant is unable to attend the designated time and date of the webinar, a playback link and any written materials will be provided within 2 business days following the conclusion of the webinar

Western Bankers Association is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website:www.nasbaregistry.org.

Register

Click here to register online