Education & Events
Annual Conference & Trade Show - Concurrent Sessions
Tuesday, June 17
10:45 a.m. - 11:45 a.m.
The Changing Role of the Investment Portfolio and the Impact of Regulation
John Smith, Managing Director, Hancock Institutional Advisors
The function of the investment portfolio has changed as a result of the prolonged low rate environment. Bonds have assumed the role of income generator and the traditional “liquidity portfolio” has been phased out at many institutions as bankers reach for yield, bend on credit quality or accept cash flow volatility. With more moving parts and additional pressure to drive earnings, fixed income has caught the attention of regulators and examiners. This session offers insight on how the investment portfolio can be more of a help than a hindrance and what must be done to avoid regulatory scrutiny.
Loan Participations: Problems in the Making and How to Avoid Them
Michael A. Campbell, Chair for the Creditors Rights, Loan Enforcement, and Creditor Bankruptcy Representation Practice Group, Polsinelli PC
This session provides useful information to bank management and lenders who engage in loan participations, whether as a lead bank or a participant. The presentation covers pre-participation considerations, rights and duties of lead banks, rights and remedies of participants, common features of participation agreements, communication issues, and steps to be taken to minimize liabilities. The material is designed to assist lead banks in improving their administration of participated loans, and to assist participants in understanding their risks, rights and remedies.
The Rise of the Chief Risk Officer: Your Purpose and What’s Expected of You
Michael D. Cohn, CPA, CISA, CGEIT, Director, WolfPAC Solutions Group, Wolf & Company P.C.
While many community-based banks conduct risk management by committee, they are also increasingly looking at elevating key staff members to the newly created role of chief risk officer. This session examines best practices associated with the risk officer responsibilities, either with a CRO or by committee, including oversight of risk operations and risk management costs. The presentation is geared for CROs and officers with risk management responsibilities yet is beneficial to all levels of management committed to improving risk management practices.
Tuesday, June 17
1:30 p.m. - 2:30 p.m.
Executive Briefing on Current Issues and Opportunities for Banks
John Freechack, Rob Fleetwood and John Geiringer, Partners, Barack Ferrazzano Financial Institutions Group
Banks looking for dance partners? Balancing risk and new opportunities/products? Directors struggling to define their roles? Shouldn’t regulators be getting easier to deal with? Heightened scrutiny of vendor management? All this and more as this session features an executive briefing on current legal and regulatory issues and trends affecting financial institutions. The focus will be on practical suggestions and best practices taken from long time experience in representing a large and diverse banking practice.
Balance Sheet Management in Today’s Environment
Scott Hildenbrand, Managing Director, Sandler O’Neill + Partners
Over the past few years, low interest rates, poor loan demand, and growing cash positions have put significant pressure on banks’ balance sheets. With the recent rise in long term rates and a tougher regulatory environment, financial institutions have heightened focus on their interest rate risk position. Concerns around potential deposit outflow, demand for longer term fixed rate assets, and extended securities portfolios have banks looking for ways to improve profitability and key metrics, while protecting themselves against higher rates.
Capital Planning: Regulatory Expectations for Determining Capital Adequacy
Donald Musso, President and Scott Polakoff, Executive Managing Director, FinPro
There are seven distinct steps for determining capital adequacy. Deploying each of these practices allows banks to maintain appropriate capital levels for their risk profiles and strategic plans. The regulators agree that the foundation to capital planning is enterprise risk management. This presentation provides a framework to generate the strongest return on the most appropriate capital level.
Tuesday, June 17
2:45 p.m. - 4:00 p.m.
The Regulators’ Perspective: Navigating the Supervisory Landscape
Anticipating, planning for and complying with evolving regulations and supervisory expectations require significant commitments of time, resources and perseverance from senior management and their directors. A distinguished panel of senior regulators will cover a range of the latest supervisory developments affecting the industry today, with an emphasis on emerging enforcement issues and trends, plus how they see banks reshaping themselves and restructuring their businesses to adapt to new market and regulatory realities.
Moderator: Bruce Jay Baker, Executive Vice President and General Counsel, IBA
Manuel Flores, Acting Secretary, IDFPR
Christopher A. Lombardo, Assistant Regional Director - Midwest Supervision, CFPB
M. Anthony Lowe, Regional Director, FDIC
Bert A. Otto, Deputy Comptroller, Central District, OCC
Julie A. Williams, Senior Vice President, Supervision and Regulation, FRB Chicago
Wednesday, June 18
9:00 a.m. - 10:00 a.m.
Community Banking Performance Trends and M&A Review
John Adams, Director of M&A, Sheshunoff & Co. Investment Banking
As community banks adapt to the new interest rate and regulatory environment, a few key elements have emerged among the high performers. This session examines the performance differences between banks of differing size, loan and provision trends across the industry, the dramatic performance differences for banks with high loan volume, a review of publicly-traded bank valuations which appreciated substantially throughout 2013 and the resulting impact being felt in 2014, and recent local and national merger activity and pricing.
Today’s Investment Decisions Will Drive Tomorrow’s Performance
Steve Twersky, CPA, Executive Vice President, FTN Financial
The increase in market rates has extended the duration of investment portfolios, pushing most into a net unrealized loss position. Beyond negatively impacting bond values and GAAP capital, this hampers the ability to capitalize on the increased loan demand that should accompany further increases in interest rates. This presentation focuses on maximizing returns while ensuring the portfolio provides adequate ongoing liquidity as the economy recovers, as well as ways to mitigate further declines in value through bond selection and hedging strategies.
The State of Security: Past, Present, and Future
Susan Orr, CISA, CISM, CRISC, CRP, Susan Orr Consulting, Ltd.
Protecting an institution’s information assets is mandated by regulation and requires an ongoing security program to ensure customer confidence and trust, compliance with the law, and shielding of the bank’s reputation. Data security is a critically important issue today – as evidenced by recent data breaches by retailers like Target and Schnucks. As technology evolves, risk and threats increase, requiring changing or developing processes, more policies, controls and training. Therefore, it is imperative to understand the risks and subsequent safeguards to properly govern and maintain a secure environment.
Wednesday, June 18
10:15 a.m. - 11:15 a.m.
Mark Angott, President, Angott Search Group
Succession planning is an organization’s dynamic ability to look at the future and prepare tomorrow’s talent. Most experts agree that having a successful transition starts with a well developed and tested plan in place. This presentation emphasizes the importance of succession planning by illustrating the steps for creating a plan, providing examples of banks that have effective plans in place and the competitive advantage these banks have over others. Having a well thought-out plan in place reduces the likelihood of crisis if a key employee leaves and helps keep the mission of the bank on track. Perhaps just as important, it forces accountability and talent assessment.
Interest Rate Risk: What Does the Future Hold?
Kraig Ritter, CPA, and Bob Swartz, CPA, Partners, BKD, LLP
We have been in a unique economic and interest rate environment since 2008. In that time, deposit bases have grown and loan demand has decreased. With recent indications that the economy is on the path of recovery, will this trend continue, and what impact will it have on your interest rate risk model? Are you prepared to update assumptions to account for the changing interest rate environment and change in customer behavior? This session discusses expectations for your interest rate risk model, assumptions and how they impact your model, and back-testing and why you may not be getting the full picture.
Business and Regulatory Aspects of Third Party Relationships
Marc Franson, Managing Partner, and Scott Fryzel, Managing Partner, Chapman and Cutler LLP
Vendor relationships and outsourcing have always been important to financial institutions. Additional regulatory scrutiny has been added to the mix. This session provides practical strategies for vendor selection and due diligence as well as important terms and conditions to satisfy compliance requirements. Vendor problems and escape routes will also be reviewed. Implications for banks are significant and will be discussed.