#TBAcredit FEBRUARY 7 & 8, 2017 OMNI HOTEL, NASHVILLE

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1 AGENDA Mobile App sponsored by Crowe Horwath LLP, Franklin, TN Pocket Agendas sponsored by First National Bankers Bank, Birmingham, AL Notepads & Pens sponsored by Kirkland Financial LLC, Goodlettsville, TN Treat/Candy Basket at Registration Desk sponsored by PNC Capital Markets, LLC, Pittsburgh, PA Conference Handout Books sponsored by ServisFirst Bank, Birmingham, AL Tuesday, February 7 8:00 a.m. Registration/Continental Breakfast Coffee station sponsored by Mauldin & Jenkins CPA, LLC, Chattanooga, TN 9:00 a.m. Call to Order/Opening Remarks Tina Cline, First Vice President/Chief Compliance Officer/CRA Officer/Audit Manager, First Century Bank, Tazewell, TN 9:15 a.m. General Session #1 What Happens Next? Looking Backwards to See Into the Future Mark Zinder, CEO, Mark Zinder and Associates, Nashville, TN It s been around six years since the financial crisis, yet pessimism persists. Budget crises, long-term unemployment, volatile foreign markets bad news has become the new normal. No wonder polls show that most Americans believe we re still in recession and investors are sitting on cash, too afraid to get back in the market. Have we been blinded by it all? Are we extrapolating the present? The history books are full of examples of previous technology revolutions: the industrial revolution, the railroad revolution, electrification, mass production, and most recently, the information revolution. Have we failed to see that there is a new engine of growth in its very early stages? The world is changing technology is accelerating fortunes are being made. Now is the time to ask yourself, What Happens Next? 10:15 a.m. Break Coffee sponsored by Kraft CPAs PLLC, Nashville, TN 10:45 a.m. General Session #2 Getting Back to the Basics David Kemp, President, Bankers Management, Inc, McDonough, GA In this session, David Kemp will focus on the fundamentals of successful lending, such as Who is the borrower? Identifying the actual owners of assets and the primary source of revenue are keys to the loan process. A strong loan policy is required as the initial building block but must be supported by an equally strong credit culture. The credit culture ingrains credit quality into the DNA of the bank. Kemp will also discuss collateral considerations to the role of the Guarantor. Noon Lunch Dessert sponsored by Southeastern Commercial Finance, LLC, Memphis, TN 12:45 p.m. Luncheon Speaker Brace for Impact The Miracle on the Hudson Dave Sanderson, Managing Partner/Author/Speaker, Dave Sanderson Speaks Enterprises, Charlotte, NC When US Airways Flight 1549, or The Miracle on the Hudson, ditched into the Hudson River on January 15, 2009, David Sanderson knew he was exactly where he was supposed to be. The last passenger off the back of the plane on that fateful day, he was largely responsible for the well-being and safety of others, risking his own life in frigid water to help other passengers off the plane. Despite the hazards to himself, Sanderson thought only of helping others and emerged from the wreckage with a mission: to encourage others to do the right thing. That experience profoundly changed his life and today, he travels the globe sharing his inspirational and motivational leadership messages to help people make a difference in how they do business and live their lives.

2 1:45 p.m. Workshop I The Role of Collateral in the Lending Decision David Kemp, President, Bankers Management, Inc, McDonough, GA Banks are faced with the considerable burden of understanding the value of collateral as loan transactions are structured. The benefit of this valuation process not only mitigates the risk to the bank, but satisfies the regulatory community requirement for adequate controls. Bankers have an array of choices for the level of collateral control, ranging from borrowing based certificates to lock lax payments. Commercial Real Estate (CRE) lending requires complete understanding of the valuation process, from cap rates to appraisal management programs. This valuation process also extends to our management of classified loans to the disposition of OREO property. 3:00 p.m. Coffee Break Workshop II Making Cents Out of Your Farmers Financials Freddie Barnard, Ph.D., Professor in Agricultural Economics, Purdue University, West Layfayette, IN All too often, we see our agricultural customers showing a big loss on their tax returns, but they assure you as the banker that the operation is doing well. Dr. Freddie Barnard will equip lenders with the tools and information necessary to make the key adjustments to better depict your borrower s financial position and make more informed credit decisions. Dr. Barnard stated, It isn t uncommon to see the difference between cash net farm income and accrual-adjusted net farm income to be more than 60 percent. Workshop III Interest Rate and Liquidity Risk Management R. Jason Caskey, CPA, Shareholder and Financial Services Practice Leader, Elliott Davis Decosimo, LLC, Columbia, SC; and Michael Koupal, CPA, Senior Manager, Elliott Davis Decosimo, LLC, Charlotte, NC In this presentation, Jason Caskey and Michael Koupal will present a general discussion on interest rate risk and liquidity risk management, including an overall review of the related regulatory guidance, best practices, and what auditors and regulators will look for in your next internal audit/validation. 3:20 p.m. Workshop IV (Workshop I Repeated) The Role of Collateral in the Lending Decision David Kemp, President, Bankers Management, Inc, McDonough, GA Workshop V Commercial Real Estate Lending (CRE).Caution Ahead! John Barrickman, President, New Horizons Financial Group, LLC, Amelia Island, FL Community banks are aggressively growing CRE lending again. The regulators have urged caution including issuing an Interagency Statement on Prudent Risk Management for Commercial Real Estate Lending (December 2015) and the OCC s Semiannual Risk Assessment (Spring 2016). Specific concerns include: Historically low capitalization rates and rising property values Easing underwriting standards less restrictive loan covenants extended maturities longer interest only periods limited guaranty requirements Greater number of underwriting exceptions Insufficient monitoring of market conditions

3 3:20 p.m. Workshop V (continued) In this session, Barrickman s focus is on: Risk management processes required to monitor and manage the increasing risk in CRE lending The implications of exceeding the regulatory guidance on concentrations in CRE, i.e. 100/300 percent of capital The impact of the High Volatility CRE (HVCRE) classification on the profitability of CRE construction lending The importance of global cash flow in assessing CRE borrower creditworthiness Stress testing the CRE portfolio it is much more than interest rates The role of participations in CRE lending Workshop VI Tennessee Housing Market Forecast Edsel Charles, Chairman, MarketGraphics Research Group, Inc, Franklin, TN Join Edsel Charles as he covers the new home forecast for Knoxville, Nashville, Chattanooga, and Memphis. He will address the next recession and project both the timing and the depth, as well as the present state of the U.S. housing market and will look at the present rental market and his thoughts about whether or not that market will hold up. Charles will discuss his interest rate forecast and how that will affect housing and how to see lending for homes and lots in a safer way that actually is better for the industry. 5 6 p.m. Reception Sponsored by Financial Products and Services, Inc. (Financial PSI), Nashville Wednesday, February 8 7:30 a.m. Continental Breakfast Sponsored by Elliott Davis Decosimo, LLC, Franklin, TN 7:30 a.m. Graduate School of Banking at LSU Alumni Breakfast Sponsored by The Graduate School of Banking at LSU, Baton Rouge, LA Pre-registration required. Please contact Penny Powlas to register at ppowlas@tnbankers.org or call or :30 a.m. Call to Order Tina Cline, First Vice President/Chief Compliance Officer/CRA Officer/Audit Manager, First Century Bank, Tazewell, TN 8:40 a.m. SIGNiX Overview Jay Jumper, President/CEO, SIGNiX, Chattanooga, TN Learn how TBA s newest endorsed partner is helping banks use digital signatures to become more efficient while easing the burden of compliance. 8:50 a.m. State and Federal Legislative Update Timothy L. Amos, Executive Vice President and General Counsel, Tennessee Bankers Association, Nashville, TN In this update, Amos will highlight expected federal and state legislative and regulatory issues. 9:15 a.m. General Session #3 State Banking Update Greg Gonzales, Commissioner, Tennessee Department of Financial Institutions, Nashville, TN Join Commissioner Gonzales as he provides an update on the current state of Tennessee banking and what is needed for our state s banks to thrive in today s environment.

4 9:45 a.m. General Session #4 The Lending Cycle Is It Different This time? John Barrickman, President, New Horizons Financial Group, LLC, Amelia Island, FL The economy continues a slow recovery. Loan demand has been solid but not spectacular. After the credit crisis, community banks tightened underwriting standards and shifted their lending focus from commercial real estate lending to traditional C&I lending. The pressure for earnings in the face of increased capital requirements, tightening net interest margins, reduced fee income and increased regulatory costs has forced many banks to focus on growing the top line which means increased lending. Banks of all sizes are now aggressively growing C&I and CRE lending. The fierce competition for loans has attracted regulatory attention. By historical standards, this recovery is getting old. The Federal Reserve continues to pursue an aggressive monetary policy. History shows a large percentage of losses banks incur are on loans made in the last two years of a recovery. Will history repeat itself? In this session, Barrickman will address these topics: The current credit cycle prudent growth or impending bust? Is your bank a candidate to experience large numbers of problem loans? What industries will make up the next concentrations of problem commercial loans? Which borrowers have a high probability of experiencing credit problems? What steps should your bank take to prepare for the next downturn in the credit cycle? 10:45 a.m. Wrap-Up Tina Cline, First Vice President/Chief Compliance Officer/CRA Officer/Audit Manager, First Century Bank, Tazewell, TN 11:00 a.m. Adjourn CREDIT COMMITTEE Chairman: Tina Cline, First Vice President/Chief Compliance and CRA Officer/Audit Manager, First Century Bank, Tazewell Scott Bagwell, Executive Vice President & Market President, Reliant Bank, Springfield Joel Beavers, Regional Credit Officer, SmartBank, Knoxville Robert Bradley, Executive Vice President/Chief Risk Officer, Bank of Tennessee, Johnson City Tom Caldwell, CPA, Senior Manager, KraftCPAs PLLC, Nashville Larry Estepp, Executive Vice President, Citizens Bank, Kingsport Philip Fons, Chief Credit Officer, InsBank, Nashville Nina Gourley, Audit Manager, Watkins Uiberall, PLLC Emily B. Gray, Senior Vice President/Senior Credit Officer, The Hardin County Bank, Savannah Billy Harvel, Vice President, First Farmers and Merchants Bank, Pulaski Charles Hooks, Executive Vice President/Chief Credit Officer, Sumner Bank & Trust, Gallatin Kevin W. Horne, Executive Vice President/Chief Credit Officer/Chief Operating Officer & Area President, Mountain Commerce Bank, Johnson City Christopher Jernigan, Credit Administrator, The Farmers Bank, Portland Monte Jones, Community President, Commercial Bank & Trust Co., Jackson James W. Kiser, Senior Commercial Banking Officer, New Peoples Bank, Inc, Bristol, VA John C. McDearman, III, Executive Vice President, Wilson Bank & Trust, Lebanon Jason Price, CPA, Senior Manager, Elliott Davis Decosimo, LLC, Franklin Ricky Sample, City President, Home Banking Company, Savannah Elizabeth W. Sims, Attorney, Butler Snow LLP, Nashville Wendy Geurin Smith, Law Office of Wendy Geurin Smith, Memphis Brad Snider, Senior Consultant, Professional Bank Services, Inc, Brentwood Terry M. Todd, Market Executive/Chattanooga, Atlantic Capital Bank, N.A., Chattanooga, TN Scott Uselton, Executive Vice President, First National Bank of Middle Tennessee, McMinnville Steve Weaver, Community President-Memphis, Simmons Bank, Memphis Timothy E. Wilson, Executive Vice President, The Bank of Jackson, Jackson

5 WHO SHOULD ATTEND This program is designed for executive and senior management, commercial loan officers, and loan support personnel. THANK YOU TO OUR SPONSORS Crowe Horwath, LLC, Franklin, TN (Mobile App) Elliott Davis Decosimo, LLC, Franklin, TN (Day 2 Coffee Station at Continental Breakfast) Financial PSI, Nashville, TN (Reception) First National Bankers Bank, Birmingham, AL (Pocket Agendas) Kirkland Financial LLC, Goodlettsville, TN (Notepads/Pens) Kraft CPAs PLLC, Nashville, TN (Day 1 Mid-Morning Coffee Station) Mauldin & Jenkins CPA, LLC, Chattanooga, TN (Day 1 Coffee Station at Continental Breakfast) PNC Capital Markets, LLC, Pittsburgh, PA (Candy/Treat Basket at Registration) ServisFirst Bank, Birmingham, AL (Conference Handout Booklets) Southeastern Commercial Finance, LLC, Memphis, TN (Desserts at Luncheon) Synovus Correspondent Division, Columbus, GA (General Sponsor) MOBILE APP Stay up to date while on the go! Follow these four easy steps: 1. Open or Download your Guidebook App 2. Select the box that says: Enter Passphrase 3. Type TBAcredit17 4. Tap Get This Guide! GRADUATE SCHOOL OF BANKING AT LSU ALUMNI BREAKFAST Wednesday, February 8, 2017, 7:30 8:30 a.m. Cumberland 1 at the Omni Hotel, Nashville Pre-registration is required. Contact Penny Powlas to register at ppowlas@tnbankers.org or LEGISLATIVE RECEPTION Join us the night before Credit Conference for TBA s Legislative Reception. Monday, February 6, 2017, 5 7 p.m. War Memorial Auditorium th Avenue North Early Registration: $50 Contact Penny Powlas to register at ppowlas@tnbankers.org or

6 GENERAL INFORMATION Special Needs If you have a special need that may affect your participation in this program, or special dietary requests, please contact us detailing your needs at least 10 days before the program. Cancellation Policy Cancellations received in the TBA office 5 business days prior to the scheduled program will be refunded in full. Due to facility guarantees, cancellations received less than 5 business days prior to the scheduled program are not refundable. Substitutions are welcome. Registrants who do not attend the program or send a substitute will be responsible for the entire registration fee. Inclement Weather Policy Cancellations due to inclement weather are refundable, minus a late cancellation fee of $50 for a one-day program or $75 for a two-day program. Please call the TBA office at or x 150 concerning the status of a program due to inclement weather. This will provide information concerning program status, cancellation fee, and refund requests. You may call the program site phone number to check the status of the program. Attire Business casual attire is appropriate for all TBA programs. Because of temperature variations in meeting rooms, please bring a sweater or jacket for your comfort. Photography/Audio/Video Policy During TBA events, the Association and its staff regularly take photographs to highlight the speakers or participants, and opportunities available to its member companies, and the industry at large. By attending a TBA event, attendees give TBA permission to use any attendee s voice and image in any such archival or promotional recording, photograph or streaming activity. For more information, please contact the TBA communications team at or Antitrust Policy Federal Antitrust laws prevent the discussion of certain pricing or market control actions among competitors. It is also a violation for the TBA to facilitate or permit such discussions at TBA meetings and events. Care should be exercised by both TBA staff and bankers, as antitrust liability is often established through circumstantial evidence. Please be conscious of the TBA antitrust policy and assist us in maintaining good corporate governances practices. For more information, please contact the TBA legal team at or ADDITIONAL INFORMATION Advance Preparation: No advance preparation is required for this program Prerequisites: Previous experience in the lending arena is helpful Program Level: Intermediate to advanced Delivery Method: Group-Live CONTINUING EDUCATION CREDIT Attendees qualify for 9 hours of Continuing Professional Education (CPE) credit in the area of Specialized Knowledge and Application. In accordance with the standards of the National Registry of Continuing Professional Education (CPE) Sponsors, CPE credits have been granted based on a 50-minute hour. Tennessee Bankers Association 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 addressed to the National Registry of CPE Sponsors (150 Fourth Avenue North, Suite 700, Nashville, TN, ). Visit their website at This program has not been pre-approved for ICB CE credits. Attendees who require ICB credits should go to for further instructions. For additional continuing education information, administrative policies or complaints, call the TBA education department at or

7 HOTEL INFORMATION This year s conference is held at the Omni Nashville Hotel (250 5th Avenue South, 37203). A variety of shops, restaurants, and entertainment options are within the hotel and right outside the hotel s front door. The Omni Hotel is holding a block of rooms on a first-come, first-served basis at a special group rate of $229 single/double per night. To make reservations, please contact Omni Reservations at 800-THE-OMNI ( ) and request the Tennessee Bankers Association Credit Conference to receive the special group rate. The deadline for making hotel reservation at this special conference rate is Monday, January 16, When the allotted room block is sold, room rates will return to standard prices on a space-available basis, even if it is BEFORE the January 16 deadline. Due to an increase in convention activity at the hotel during these dates, an option to extend the conference deadline will NOT be available. Please make your reservations early. REGISTRATION FEES TEAM DISCOUNT: A discount of $25 per person is available for multiple registrations from the same institution, after the initial registration. Only the first registrant from your institution pays the full fee. To be eligible for the team discount, you MUST register all your attendees at the same time. Members / Associate Members Member / Associate Nonmembers Nonmember Spouses Member Spouses Early Registration $495 $50 $990 $100 Each Additional Person $470 $50 $965 $100 Early registration deadline is January 17. Registration $525 $50 $1,020 $100 Each Additional Person $500 $50 $995 $100 Day-of-Program $575 $75 $1,070 $125 Full conference fees include instructional materials, continental breakfast and refreshment breaks both days, and lunch and reception on Thursday. Spouse fees include reception on Thursday evening. Please register early. Day-of-program registrants will be assessed an additional $50 late registration fee. The team discount is not available to day-of-program registrants. Participation in TBA programs is limited to members, associate members, and nonmembers from an eligible membership category at applicable member or nonmember rates. No written confirmation of registration will be sent from the TBA. TBA CONTACT Susan Taylor, CMP Senior Vice President of Professional Development staylor@tnbankers.org or

8 REGISTRATION FORM (P) ATTENDEE INFORMATION Please print or type. List name and badge nickname for each attendee. Check space if registrant is a spouse. List last four digits of your social security number. (Delegates only. Used for educational tracking purposes only.) 1. Name Nickname Spouse SS# 2. Name Nickname Spouse SS# 3. Name Nickname Spouse SS# 4. Name Nickname Spouse SS# 5. Name Nickname Spouse SS# Contact Company Address City State Zip Phone Fax REGISTRATION FEES TEAM DISCOUNT: A discount of $25 per person is available for multiple registrations from the same institution, after the initial registration. Only the first registrant from your institution pays the full fee. To be eligible for the team discount, you MUST register all your attendees at the same time. Members / Associate Members Member / Associate Member Spouses Nonmembers Nonmember Spouses Early Registration $495 $50 $990 $100 Each Additional Person $470 $50 $965 $100 Early registration deadline is January 17. Registration $525 $50 $1,020 $100 Each Additional Person $500 $50 $995 $100 Day-of-Program $575 $75 $1,070 $125 PAYMENT METHOD TOTAL: $ Please make check payable to Tennessee Bankers Association. Method of payment: q VISA q MasterCard q Check Ck# Card # Exp Date Name as appears on card (please print) Card billing address City State Zip Signature Return completed form and payment to: Tennessee Bankers Association Attn: Monique Jenkins 211 Athens Way, Ste 100 Nashville, TN or Fax (Fax for credit cards only) 4 WAYS TO REGISTER! 1. Register online at 2. Scan this form and it to mjenkins@tnbankers.org 3. Mail this form to the address above 4. Fax this form to