Loan Committee Presentation Skill Building Techniques Presented by

Loan Committee Presentation Skill Building Techniques Presented by: Osburn & Associates, LLC 1

Author/Instructor DAVID L. OSBURN, MBA, CCRA David Osburn, is the founder of Osburn & Associates, LLC that specializes in providing seminars, webinars, and keynote speeches to bankers, CPAs, attorneys, and credit managers on topics such as Banking/Finance/Credit, Negotiation Skills, Marketing, and Management. David also functions as a Contract CFO and works with financial institutions, CPA firms, construction companies, and real estate developers. He is also an adjunct faculty member of both an accredited MBA program and the accounting department of a community college with over 29 years of teaching experience. David’s extensive professional background includes 15 years as both a Business Trainer and Contract CFO and 16 years in banking (commercial lending) including the position of Vice President & Senior Banking Officer. David has an MBA in Finance/Marketing from Utah State University and a BS degree in Finance from Brigham Young University. He is also a graduate of the ABA National Commercial Lending School held at the University of Oklahoma. David also holds the professional designation of Certified Credit and Risk Analyst (CCRA) as granted by the National Association of Credit Management (NACM). Osburn & Associates, LLC A Business Training & Contract CFO Firm David L. Osburn, MBA, CCRA Managing Member 7426 Alamo Summit Drive Las Vegas, Nevada 89129 Direct: (702) 655 -1187 E-Mail: dlosburn@cox. net Web: dlosburn. com 2

Loan Committee Presentation Skill Building Techniques I. Effective Loan Committee Presentations a) How Effective are you Today? b) Where do you Want to Be in the Future? c) How are you Going to Get There? 3

II. How Does the Loan Committee Really Work? a) Group of Human Beings b) Group Dynamics c) Individual Dynamics 4

III. How to Overcome the Fear and Intimidation Factor? a) The Psychology of Fear/ Intimidation! b) Overcoming Fear/ Intimidation-How do you really do it? Ex. The Loan Committee Member: How is Bob’s Heart? Ex. The Loan Committee Member: Changes Position during the Meeting? Ex. The Loan Committee Member: Always Looks to the Chair to See How to Vote! 5

IV. Loan Committee Skill Building Techniques a) Do’s and Don’ts of Loan Committee: Do’s Don’ts 6

IV. Loan Committee Skill Building Techniques (Continued) b) “Reading” the Personalities of the Committee Members aka “Reading” The Audience 1. Erotic 2. Obsessive 3. Narcissistic c) “Outside” versus “Inside” Committee Members 7

IV. Loan Committee Skill Building Techniques (Continued) d) “Group” Dynamics: 1. Group Think 2. Roles of Group Members The Team Leader The Gate Keeper The Cheerleader The Money Bags The Auditor 8

IV. Loan Committee Skill Building Techniques (Continued) e) Clear, Concise, and Motivating Presentations 1. What are the Components of the Presentation Technical versus Management Review 2. Length of Presentation 3. Style of Presentation 4. Motivating the Audience 9

V. “Supporting” Discipline: Negotiation Skill Building a) How would you define Negotiations? b) How Important is the Negotiation Process in Loan Committee Presentations c) How Often does the Loan Officer Negotiate? d) Can a Loan Officer Improve their Negotiation Skills? 10

V. Negotiation Skill Building (Continued): e) Between Two Parties (Even in a Large Organization) f) Just Open Your Mouth (Practice Makes Perfect) g) Communications at its Best! h) The “American” Way i) Strive for Win, Win (The Covey Concept) 11

VI. “Supporting” Discipline: Effective Communications Two Way Sender < > (Encodes) Static <> Receiver (Decodes) a) Oral b) Written (E-mail, Text, “Snail” Mail) c) Body Language 12

VI. “Supporting” Discipline: Effective Communications (Continued) d) “Space” Dynamics 1. The Office 2. The Conference Room 3. The Restaurant 13

VI. “Supporting” Discipline: Effective Communications (Continued) a) Psychology: 1. Empathy 2. Ego 3. Needs 14

VI. “Supporting” Discipline: Effective Communications (Continued) b) Diversity: 1. Gender: 2. Generations: Baby Boomers Generation X Generation Y 3. Other: Ethnicity, Age, Marital Status, Creed 15

VII. “Supporting” Discipline: Personal Marketing The Target Market: The Four Ps: a) Product b) Place c) Price d) Promotion (Advertising & Personal Selling) 16

VII. “Supporting” Discipline: Personal Marketing (Continued) Advertising a) Personal Appearance- First Impressions b) The Hand Shake c) The Business Card d) Speech Patterns e) Listening Skills f) Social Media 17

VII. “Supporting” Discipline: Personal Marketing (Continued) Personal Selling- Yourself: a) Negotiation Skills b) Communication Skills c) Mediation Skills 18

VIII. Loan Committee Presentation Skill Building Techniques. Case Studies a) You are a brand new loan officer having worked as a credit analysts for 2 years. You are presenting your first loan to committee and would like to “bone up” on your presentation skills. What do you do? How do you start? How do you prepare? b) You are a seasoned loan committee “veteran” but have recently “come under fire” by one committee member for no apparent reason. You have noticed that she continuously questions the management portion of your write-ups. What do you do? How do you address this situation? 19

VIII. Loan Committee Presentation Skill Building Techniques Case Studies (Continued) c) You are a senior vice president with 25 years of credit experience. You have found that you sometimes get too “buried” in the numbers while presenting your loans to the committee. You have also found that several of the committee members seem to “hibernate” while you make your presentations. What do you do? How do you motivate the committee members to pay attention to your presentations? d) You are a loan committee member and have found that some of the loan officers seem to be “sluffing” their way through their presentations. When asked about certain parts of the write-ups including the cash flow analyses and key ratios, they are not too quick or clear in their responses. What do you do? How do you promote more effective presentations? 20

IX. Loan Committee Presentation Skill Building Techniques. Some Final Thoughts a) Lack of Loan Committee Presentation Training in the Banks b) We have the Power to Improve our Presentation Skill Set c) We can Train Others to Improve Their Presentation Skills d) Presentation Skills are Valuable! 21