# The Commercial Banker: companion files

Julian R. Sterling

## What is here

- **Commercial_Banker_Model.xlsx**: the workbook that rebuilds the Kessworth case and reproduces the figures of the book with live formulas. Sheets: Read Me, Inputs, Deal, Covenants, Cash Flow, Collateral, Relationship, Checks.
- **Commercial_Banker_Toolkit.docx**: the checklists of Appendix B (prospect research, first meeting questions, due diligence request list, credit memo outline, term sheet, closing, annual review, early warning signs, first steps after a covenant breach), in editable form.

## Which sheet answers which chapter

- Chapter 2: Relationship (spread, deposits, fees, expected loss, capital, return on capital)
- Chapter 5: Cash Flow (operating figures, fixed charge coverage, management and downside cases)
- Chapters 6 and 7: Deal (sources and uses, borrowing base, pricing grid, leverage and cushion at close)
- Chapters 7, 12 and 13: Covenants (the quarterly leverage test, Q2 2024 to Q4 2026)
- Chapters 8 and 14: Collateral (liquidation values and going-concern view)

## Two inputs to change first

1. On Inputs, set the Q4 2025 TTM EBITDA to the downside case figure for 2025: does the covenant still break?
2. On Inputs, set the year 1 operating deposits to zero: see what the loan alone earns on the bank's capital. Reset the inputs afterwards: the Checks sheet compares the workbook with the figures printed in the book.

Blue type on a light blue background is an input, black type a formula. No macro, no circular reference, no external link. The Checks sheet should read ALL CHECKS OK on the default inputs.

Harrowgate Commerce Bank, Kessworth Industrial Controls and every other name in the case are fictional; the model is simplified; all case figures are illustrative assumptions, not market terms or forecasts. Provided as is, without warranty. Not lending, investment, legal, tax or accounting advice.