This session will focus on the basics of a bank’s balance sheet. By analyzing a sample bank balance sheet, participants will demonstrate an understanding of the institution’s primary sources of earning assets, funding liabilities and total capital. Participants will practice identifying potential risks and limitations on financial performance and will leave with an understanding of how leverage, risk management and asset allocation impact earnings and performance.

Participants will analyze a sample bank income statement and relate it to the institution’s balance sheet. This session will address the differences between interest and non-interest income. Participants will learn how to analyze and explain a bank’s overall cost structure based on its balance sheet and income statement. The material covered will empower participants to interpret a bank’s financial statements and understand cash flow on both sides of the balance sheet.

Participants will examine credit metrics looking at typical types of loans, as well as specialized lending and the importance of credit quality. Participants will also examine risks related to asset mix concentrations to assess methods to achieve the greatest return at a given level of risk tolerance.

How efficiently a bank funds its earning assets is one of the single largest determinants of financial performance and is a critical component of an institution’s overall business plan. Participants will examine how funding strategies impact a bank’s overall liquidity and operational costs. Building on key concepts developed in earlier sessions, participants will arrive at a detailed understanding of how banks fund themselves and how various factors come into play in this process.

This session focuses on capital components, strategies, attributes, structure and other factors that drive value. Participants will consider these topics from several different perspectives, first learning the basics and then progressing through increasingly complex analyses of the subjects covered. By considering how a wide array of variables interact with one another to affect performance, participants will arrive at a dynamic understanding of the role of capital in banking.

Financial performance is a function of leverage, earnings, and expenses. As banks make decisions affecting each of these three factors, they also increase or decrease the risk of loss to shareholders and may impact the deposit insurance fund. Participants will gain a broad understanding of risk considerations as they relate to a bank’s financial performance.

The capstone overview session will bring together the core lessons from previous sessions and prepare participants to test their mastery of the topics covered. Key performance indicators will be reviewed and capstone assignment criteria will be shared. Participants will be expected to assess various aspects of the bank’s performance and make suggestions related to increasing performance and managing risk.

The proforma capstone overview session will bring together the core lessons from previous sessions. Key performance indicators will be reviewed using a proforma report generated from a real financial institution not previously considered during the course. Using the information in the proforma, participants will have the opportunity to assess various aspects of the bank’s performance and make suggestions related to increasing performance and managing risk.