INTERNSHIP PAPER: National City Corporation
This past summer (2002), I was an intern in the Credit Department at the corporate headquarters of National City Bank located in downtown Cleveland. During my time as an intern I was able to put my classrooms knowledge and experience into practice dealing with real world situations. Let me give you an overview of what our department basically did on a day to day basis. We were what you would call the “number crunchers” of the building. Senior Credit Officers, Loan Officers, and Secured Credit Analysts would send numerous financial statements for various companies to our floor. These financials, with the attached project (I will explain the projects/assignment later) would then be assigned by our department head to specific analysts. We were then responsible for completing the desired task that the Officer had requested by a certain date and time. Analysts would gather as much information about the company as needed and perform the various tasks in order to get the Officer’s approval of the completed product. All in all, that is basically what the Credit Department did on a day to day basis, but this is just a brief overview. I will go into further detail throughout the remainder of the paper. On my first day at the internship, I was introduced to my supervisor and Assistant Vice President of Credit, Anita Swoboda (she interviewed me and gave me the job over the phone, so we had never met) and the rest of my coworkers on the 9th floor. After the introductions were made and I was situated in my new desk, I was instructed to go to a computer in the back of the office to learn the system that the department worked off of. The instructional tour took me through the database that I would be using on an everyday basis and showed me what everything the specifics of the system. The database was constructed like an Excel spreadsheet, but it was specifically made with equations for the different data entries. After I was fully acquainted with the database (it is called FAMAS), I was given my first assignment to complete. The slang term used around the office for these financial tables was “spreads”. The spreads were the end result of the data entered into FAMAS. I was given a set of financial statements from a specific company and my job was to enter the relevant data into the necessary categories and subcategories in the system. After all of the data was entered, I had to check to make sure that the balance sheet was in balance, the income statement provided the correct net income for the period ending, and the cash flow statement was in accordance to the company’s given data. If everything was in place and all of the data was correct, I then would print off the “output”. The output gave six pages of the summarized data that I had entered. Three pages were the replicas of the balance sheet, the income statement, and the statement of cash flows. The other three pages gave concise ratios and detailed reconciliations pertaining to the data. This, inevitably, was used by the Officer to make an accurate assumption about the stability of the company’s cash/asset/liability position. This was the most basic and most assigned project for the analysts in general. The next type of responsibility that I had was in the contents of what was called a Criticized Asset Sheet or CAC for short. These CACs were used by Officers when a company was underperforming according to National City’s standards for loan payments. These companies often times would have negative net income levels for more than one year, poor repayment practices in the past, and overall bad quality dealings with National City in general, just to name a few. The CAC required the analyst to do the assigned company’s spreads as well as a number of other pieces of financial analysis in order to give the Officer and the committee a better idea of where exactly this company stood and if it was beneficial...
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