31 ST Annual BALANCE SHEET MANAGEMENT CONFERENCE. June 1-2, 2015 Marriott Long Wharf Boston, MA

Transcription

1 31 ST Annual BALANCE SHEET MANAGEMENT CONFERENCE June 1-2, 2015 Marriott Long Wharf Boston, MA

2 HIGHLIGHTS GUEST SPEAKERS Focus and Persistence. These are the keys for overcoming the relentless pressures of a sustained low rate and highly competitive environment, while preparing simultaneously for a potential rise in interest rates. Tight credit spreads, core deposit uncertainties, loan growth challenges, margin pressure and increasing compliance costs are a sampling of the resulting, very real current industry challenges. They also set the stage for the comprehensive strategy discussion that will be taking place at our 31st Annual DCG Balance Sheet Management Conference. This year s sessions include: Using Data & Technology for Deposit Intelligence Capital Raising Alternatives & Planning Investment Portfolio Strategy Commercial & Residential Loan Strategy Role of the Secondary Loan Market Strategic Use of Derivatives M&A Perspective (sellers & buyers) Cybersecurity There will also be presentations on effective leadership and using cultural change to drive current and future growth, as well as interactive peer group breakout sessions. As always, there will be a core asset/liability education track focused on liquidity, interest rate risk, risk/return trade-offs and strategy development (with case studies). MONDAY, JUNE 1 Day one of the conference finishes with a keynote general session led by Steven S. Little, a business growth expert. A Boston Harbor cruise will provide a unique setting for what is sure to be an enjoyable cocktail reception followed by an old-fashioned clambake dinner back at the Marriott Long Wharf to interact with colleagues, speakers and peers. TUESDAY, JUNE 2 Day two will begin with an economic update and forecast conducted by Dr. Chris Kuehl, Managing Director of Armada Corporate Intelligence. Please join the DCG team and our expert guest speakers for two days of informative strategically focused interaction and discussion. ALEX HERNANDEZ is VP of Customer Solutions for Praesidio Inc., a provider of financial services specific to cybersecurity solutions. Alex brings over 20 years of security experience in providing security solutions and expertise to some of the largest companies in the world. TORY HOURIET, CPA, is a founding Principal and Head of Analytical Research at Fixed Income Capital Partners (FICP). He has more than 30 years of experience trading fixed income instruments and works extensively researching new and existing product offerings, building analytic platforms and educating clients on the benefits of optimal risk and reward measurement of investment options. J. KEITH HUGHEY is a Senior Consultant with John M. Floyd & Associates, Inc. As lead consultant for JMFA s Business Strategies Practice, Keith s focus includes advising clients on strategic planning, corporate governance, management succession, leadership and organizational health/ human systems. MATT JOHNSTON is CEO of Red Rock Strategic Partners and Red Rock Advisors advising wealth management organizations, banks and RIA firms on strategies to drive top line revenue growth and maximize business opportunities by addressing execution challenges, as well as accelerating profitable business growth, protecting the business, retaining talent and effectively planning for business transitions and succession. WILLIAM F. LOONEY III is President of US Loan Sales at DebtX. Under Bill s sales leadership, DebtX has grown from a start-up to the nation s largest loan sale company. Prior to joining DebtX, Bill was a founding partner in the Boston law firm of Looney, Cohen, Reagan & Aisenberg LLP, which specializes in representing banks and investment banks in commercial loan sales and other commercial transactions. LARRY MIELE serves as Managing Director of Investments with Wells Fargo Advisors, LLC. With over two decades of experience as an investment professional in the institutional fixed income sector working with credit unions and other institutional clients, Larry assists clients with asset-liability issues and helps keep them current on trends that influence their balance sheets. BOB NEWMAN is Managing Director of Financial Institutions at Chatham Financial. Prior to joining Chatham, he worked for 20 years in the banking industry, most recently as a Director at SunTrust Capital Markets, Inc., where he specialized in designing interest rate, currency and equity hedging solutions for the bank s corporate and wealth management clients. FRED D. PRICE, Managing Principal, is a Founding Principal of Sandler O Neill & Partners, L.P., and a member of the firm s three-person Executive Committee. Fred manages the firm s capital market activities from marketing to transaction execution. He also oversees the management of the firm s client support services and other business affairs. JOSH SIEGEL is Managing Partner and Chief Executive Officer of StoneCastle Partners. He is widely regarded as a leading expert and investor in the banking industry and is often quoted in financial media. Prior to co-founding StoneCastle, Josh was a co-founder and Vice President of the Global Portfolio Solutions Group at Salomon Brothers/Citigroup Global Markets. DAVID SWEENEY is a Managing Director leading Chatham Financial s Balance Sheet Strategies and Chatham Investment Advisors. Prior to joining Chatham, Dave spent 14 years with Ernst & Young serving financial services clients across the US and Europe and served as Treasurer and Chief Investment Officer at two community banks with assets between $3 billion and $5 billion. PETER J. TAGLIA, CPA, CGMA, CMB, is Senior Vice President in the Capital Assets Group of FTN Financial, a subsidiary of First Tennessee Bank, concentrating on loan sale/securitization strategies, asset backed structuring and portfolio analysis. He is a Past President of the Illinois Mortgage Bankers Association, a frequent speaker for the MBA (Faculty Fellow/Master Faculty) and a prior senior faculty member for the Freddie Mac School of Mortgage Finance. REGISTER BY APRIL 10 AND SAVE!

3 CONFERENCE SESSIONS KEYNOTE ADDRESS Monday will feature a general session with Steven S. Little, a much sought after expert and best-selling author on the subject of business growth and the future of opportunity. As a former president of three fast-growth companies and an Inc. Magazine consultant, he now advises numerous leaders of growing organizations and communities each year. ECONOMIC UPDATE Leading off Tuesday s program will be a general session conducted by Dr. Chris Kuehl, Managing Director of Armada Corporate Intelligence. He provides economic forecasts and strategic guidance for a wide variety of corporate clients around the world. He is the Chief Economist for several national and international organizations. Capital Strategies for Community Banks While community banks understand the importance of developing capital plans, most wrestle with developing the right capital solution that best meets their needs. Josh Siegel from StoneCastle Partners will bring clarity to the various capital alternatives available to community banks. He will provide an overview of the new capital rules and related implications, discuss tier-1 vs. tier-2 capital alternatives and address strategies for mutual institutions. Josh will also explain what investors are looking for, and discuss the relative cost-benefit dynamics of the capital choices available to community banks. Comparing the Alternatives (Cash vs. Swaps vs. Caps) As the inevitable tightening of short-term interest rates gets nearer, it s understandable that everyone from Board members to investors to regulators wants to know how your institution is preparing to deal with higher rates. In this session, Bob Newman and Dave Sweeney will walk through the array of products available to extend liabilities, including cash market transactions (FHLB advances, brokered CDs) and derivative strategies (swaps, caps) and will discuss how to evaluate which options make the most sense for your institution. Beyond Traditional Investments The extended low interest rate environment has influenced many institutions to explore alternative, nontraditional fixed income securitized products in order to enhance portfolio yields and their institutional performance. But which of these nontraditional products can deliver a higher yield without a disruption to investment policy parameters and opening a Pandora s Box of operational, regulatory, credit, financial and interest rate risk? In this session, Tory Houriet will explore the pros and cons of including a range of alternative, nontraditional products to the investment portfolio, including an overview of the framework that is essential for making them pay off within today s banking environment. Deposit Intelligence in a World of Uncertainty In the next rising rate cycle your institution will experience deposit mix shifts and disintermediation resulting in reduced levels of net interest income, increased interest rate risk and lower levels of liquidity. Quantifying these risks isn t merely an asset liability management best practice it s common sense. ALCOs need to think beyond simply justifying decay, surge and sensitivity betas; they must seek more from their analyses and assumption validation efforts. With the use of state-of-the-art deposit intelligence tools, this session presented by DCG representatives will guide you through practical ways to utilize readily available data to better understand your deposit base. What Is the NIST Cybersecurity Framework and Why Does It Matter to You? This presentation by Alex Hernandez will provide a high level review of the NIST Cybersecurity Framework, and how it is impacting the banking industry (banks and regulators). It will explain how integrating the framework can affect current information security, business continuity and vendor management policies. Discussions will include a deeper dive into the elements of a bank cybersecurity program and methods for demonstrating compliance, including governance, threat awareness and collaboration, third party service providers, vendor risk management and incident response. Secondary Market for Whole Loans Now that credit quality has improved, and competition for CRE and C&I loans has heated up, what opportunities can community banks find in the secondary market? How can banks augment loan production, or take advantage of a robust market to sell excess production or improve key balance sheet components through secondary market transactions? Bill Looney, President of US Loan Sales for DebtX, will discuss the current secondary market for CRE and C&I whole loans, highlighting opportunities and potential pitfalls for community banks. M & A from a Buyers & Sellers Perspective This session, presented by Fred D. Price of Sandler O Neill, will focus on both sides of the current M&A environment by looking at buyers concerns of pricing, market reception and integration as well as sellers concerns of pricing, process and commu - nication. What makes deals come together and what makes them fall apart? The regulatory process will also be discussed as it overrides decisions by both sides of a transaction. The quantitative measures used in M&A will be discussed alongside the equally important qualitative concerns. Investment Portfolio Management and Strategic Considerations During Unprecedented Times A disciplined portfolio management process is challenging enough on its own, but with increased regulatory challenges and an uncertain rate environment, the job is becoming even harder. Larry Miele will explore the current environment, examine products and strategies that have been working well and some that have not, and discuss objective asset selection that is suitable for your interest rate risk profile. Attendees will also learn to recalibrate their thought process to ensure that they are focusing on what matters most when making investment decisions.

4 EARN UP TO 13 CPE CREDITS! CORE SESSIONS All Roads Lead to the Capital Plan Capital planning is no longer an exercise reserved for troubled institutions or growth-oriented companies. It has become the foundation for effective enterprise risk management whereby interest rate risk, liquidity risk, credit risk and operational risk can be simultaneously evaluated under normal operating conditions, as well as under stress. In this session presented by DCG representatives, participants will gain insight into how adoption of this capital-oriented risk management framework is supporting true holistic risk assessment, dynamic capital/ contingency planning and providing strategic advantage to institutions over competitors that think they can continue to survive on traditional profit planning and budget exercises. Having the Title Doesn t Mean You re a Leader In this fast paced session, Keith Hughey will discuss what it means and what it takes to be an effective leader and not just a manager (since one leads people with all of their skills, abilities, experience, personal foibles and ambitions while the role more associated with manager is about managing things including gauging and managing risks and optimizing results within certain constraints). Both are needed, but the knowledge and skill set to be effective at both differ substantially. Residential Mortgages: A View From Washington Phillip Millman from the Federal Housing Finance Agency (FHFA) will provide a Washington perspective on QRM and the implications for the residential lending market: origination, servicing and securitization. As part of this session, Phillip will provide insight on the overall thought process and goals surrounding QRM in particular and the secondary mortgage market in general. What Does Your Cell Phone Look Like A Step By Step Guide to Organic Growth Banking is a competitive business. Changes are occurring all the time. The most successful banking institutions are constantly asking the question, How do we grow and evolve? Much like the cell phones of old, there is a growing gap between the average and the best community banks. The constant is profitable growth and evolution of the business. Matt Johnston will provide a specific and actionable plan to drive cultural change in your bank, lead organic growth opportunities and position your bank for the future. Residential Mortgage Strategy: Opportunities & Realities In this session, Peter Taglia will provide a timely look into the current and prospective residential lending marketplace. He will discuss a comprehensive range of business issues impacting residential strategy, including: the realities of an increasingly compliance-influenced market, observations regarding portfolio vs. secondary market lending and a view of the secondary market from both buyer and seller perspectives. He will also provide an overview of the steps community banks can take to assess the utility of managing existing loan portfolios with whole loan sales and/or securitization. The following four sessions are the equivalent of a full-day seminar on balance sheet management. They are intended to create a base for first-time attendees or as a refresher series for past attendees. Risk/Return Trade-Offs in Balance Sheet Management This session is an introduction to balance sheet management issues and risk/return trade-offs. Subjects discussed will include: fundamental banking concepts in perspective, sources of balance sheet risk, discussions of value versus income protection, regulatory perspectives on risk/return and recent industry issues. Measuring and Managing Interest Rate Risk Now after several years of managing against a low/flat yield curve, a growing number of banking institutions are accepting more interest rate risk to help preserve net interest margin levels. Few have been able to answer a very important and appropriate question: How much is too much? This session will help you answer that very important question by offering you the tools and knowhow to construct an effective interest rate risk management process. We will discuss measurement techniques (net interest income simulation and economic value of equity) and display a comprehensive approach to risk analysis and decision making. Measuring and Managing Liquidity Effective liquidity management can result in increased income, greater control over funding costs and improved regulatory exams. Subjects discussed will include: liquidity measurement and management approaches, strategies to improve liquidity, marginal cost of funds analysis, strategies for controlling funding costs, an overview of funding alternatives for community banks and requirements for a comprehensive liquidity management process. Developing & Documenting BSM Strategies This popular topic includes a separate two-hour handson session using case studies from actual banks. The first portion of the two-part session will discuss strategy formulation and documentation, including such subjects as setting strategy objectives, determining potential risk/return trade-offs and tracking results. Strategies discussed will include lending, investments, deposit pricing, alternative funding sources and the use of offbalance sheet hedging instruments. During the second portion of the session, attendees will be provided the opportunity to work through two case studies in detail. This is a great opportunity for exchanging ideas and approaches and analyzing what if scenarios.

5 REGISTRATION Register online at DarlingConsulting.com or complete the form below. DCG is the premier ALM solutions provider in the U.S., working with over 500 financial institutions nationwide. For more than 30 years, DCG s distinctive mix of education, consulting, analytical services and exceptional staff has resulted in the highest client satisfaction rates in the industry. We welcome your participation in the 31st Annual Balance Sheet Management Conference. INSTITUTION ADDRESS CITY STATE zip CODE TELEPHONE FAX ADDRESS ASSET SIzE CLIENT: YES NO ATTENDEE INFO FIRST NAME TITLE CONFERENCE MATERIALS How would you like to receive your materials? Binder and Electronic Materials LAST Electronic Materials Only (NOTE: No binders will be available on-site at the conference) CONFERENCE REGISTRATION FEE for each attendee is $1275 if payment is received by April 10, 2015 ($1375 after April 10, 2015). Please check here if you have special requirements (including dietary restrictions) in order to fully participate in the DCG conference. DCG will contact you to discuss your specific needs. Sunday & Monday Evening Receptions Please join us for our pre-conference welcoming reception on Sunday evening at the Marriott Long Wharf. Following Monday s session, please join us for a Boston Harbor cruise and lobster bake at the Marriott Long Wharf. Please indicate the total number of people attending (including registered attendees above and guests). Circle the number attending: Sunday Evening Cocktail Reception at Marriott Long Wharf :00 10:00 p.m. Monday Evening Boston Harbor Cruise :00 7:30 p.m. Monday Evening Lobster Bake at Marriott Long Wharf :30 10:00 p.m. $1275 per person by April 10, 2015 $1375 per person after April 10, 2015 Please make checks payable to Darling Consulting Group, Inc. Fee includes continental breakfast, luncheons & conference materials, as well as Sunday/Monday nights social events. Total Amount Enclosed: $ Mail with payment to: DARLING CONSULTING GROUP 260 Merrimac Street Newburyport, MA 01950

6 260 Merrimac Street Newburyport, MA EARN UP TO 13 CPE CREDITS! June 1-2, 2015 Boston Marriott Long Wharf CONFERENCE INFORMATION WHO SHOULD ATTEND This information-packed two-day conference offers timely insight into managing your institution s balance sheet in this challenging environment. Educational sessions and interactive forums, ranging from basic through advanced, are designed to generate comprehensive and lively discussion about the asset/liability funds management and capital planning processes. Directors, CEOs, CFOs, senior management and analysts will benefit from this popular Group-Live conference. Attendees are eligible for up to 13 CPE credits. No pre-requisite and/or advanced preparation is required. DATE AND LOCATION: JUNE 1-2, 2015 Boston Marriott Long Wharf, 296 State Street, Boston, Massachusetts This two-day conference takes place Monday 8:15 a.m. to Tuesday 3:15 p.m. The Marriott Long Wharf is just one block from Faneuil Hall/Quincy Market and the heart of Boston s financial district (approximately 2 miles from Logan Airport). Please contact hotel for directions CANCELLATIONS Conference registration fees are refundable only for cancellations received in writing by May 15, No refunds will be made after this date. Prior to May 15, refunds are subject to a $100 cancellation fee. Substitutions may be made at any time; please advise us in advance. For more information regarding refund and/or program cancellation policies or other concerns, please contact our conference staff at conference@darlingconsulting.com or by calling Darling Consulting Group, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: HOTEL RESERVATIONS For hotel reservations, please contact the Marriott directly at and use room rate group code: DLCDLCA. You can also visit their website at When making your hotel reservation with the Marriott, please be sure to identify yourself as a Darling Consulting Group Conference Attendee to guarantee the preferred room rate. Rooms are available on a first-come, first-served basis. BOSTON MARRIOTT LONG WHARF 296 State Street Boston, MA All room reservations for this conference MUST be received no later than May 8, After May 8th, rooms will be on a space-available basis and the preferred rate may not apply. The rate of $305 per room per night is subject to 12.45% Massachusetts tax. For additional information regarding this conference, contact us at or mmattheson@darlingconsulting.com