Session Descriptions
| General Session Descriptions | |
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| Regulatory Panel Panel:
- Shannon M. Beattie, CPA, Chief Accountant, Division of Risk Management Supervision - Federal Deposit Insurance Corporation |
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| Industry Trends and Insights from the Experts Moderator: Scott Baranowski, Principal, Wolf & Company, P.C. Panel: - Mike Guglielmo, Managing Director, Darling Consulting Group The Industry Leaders on the main stage will share the biggest financial institution changes they've seen and the opportunities and threats they see for the next 24 months. |
| Breakout Session Descriptions | |
|---|---|
| Best Practices for a Better ALCO Thomas Griswold, CFA, Managing Director, Advisory Services - ALM First John R. Smith, Director, Advisory Services - ALM First A lender’s Asset Liability Committee (ALCO) is a critical component within the institution’s risk management structure. Successful leaders use their ALCO to drive strategy and manage risk. In this session, we take a deeper dive into the current challenges of effective ALCO management and learn best practices to enhance meeting structure and ensure the balance sheet is appropriately positioned. Key Attendee Takeaways: 1. Recognize differences between Strategic vs. Operational ALCO 2. Understand the importance of a feedback loop 3. Identify pertinent risks 4. Leverage your system tools and reports. |
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| CECL Lessons Learned Garver Moore, Managing Director Advisory Services – Abrigo Most financial institutions will be required to present an Allowance for Credit Losses under the new standard by the end of 2022. In this presentation, tailored for financial institutions that have not yet adopted the standard -- or those who may feel the need to take a second look at their practices given the realities of economic uncertainty. We will discuss lessons learned from implementing the standard at hundreds of SEC Registrant institutions and how those lessons scale to the complexity of smaller/private institutions. The bad news: the transition takes some work. The good news: The work is far less than many fear, so long as it’s done in a thoughtful way. Participants will learn: How to adapt/scale the best practices of SEC registrant institutions to create a durable practice at their own financial institution. How to avoid common stumbling blocks and wasted effort that can be a drain on resources and staff. How to use existing capabilities and assets to implement the standard or ensure their work implementing the standard pays dividends elsewhere at the institution. How to reduce reliance on qualitative overlays and reduce the effort and risk in the estimate compared to prevailing Incurred Loss practices. |
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| Enabling Innovation through Digital Transformation Richard Fay, Principal and Meredith Piotti, Principal – Wolf & Company, P.C. The need for financial institutions to embrace technology and innovation has become increasingly apparent over the past two year. In order for financial institutions to achieve their strategic goals, the need to reexamine existing information technology infrastructures, third party relationships, and access to data is critical. With mounting pressure in the form of increased competition from large banks, fintech companies, and community institutions with advanced online capabilities, the time to explore digital transformation is now. This presentation explains the concept of digital transformation, as well as opportunities that can enable results, and threats if ignored. In this session, we’ll cover: Characteristics of an innovative information technology infrastructure, How digital transformation compliments existing core competencies and Threats caused by the failure to take action. |
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| Funds Transfer Pricing 201: Advanced Topics Bryan Ridgway, Senior Sales Engineer and Kenneth Levey, Managing Director – Empyrean Solutions Funds Transfer Pricing (201): Advanced Topics Net interest margin remains the primary income source for most financial institutions. The ability to better measure, understand and analyze net interest margin across all segments of the organization through funds transfer pricing (FTP) is the cornerstone in financial and performance management. Using a matched-term FTP process is the most common, and best practice approach to transfer pricing. For institutions that are relatively early in their adoption of the FTP process, keeping the process simple, straightforward, and understandable is paramount. However, for institutions more mature in their FTP process and are looking to fine tune their calculations and analysis of the FTP results, several advanced transfer pricing options are available for consideration. In this session we will address these advanced topics and related best practices, including transfer pricing non-maturity accounts, handling prepayments and their related risks, accounting for liquidity in transfer pricing and analysis of the funding center. Specifically, we will: Review the fundamental concepts of matched-term funds transfer pricing o Explore the concepts and rationale behind several advanced FTP topics to consider adopting in your FTP process. Discuss best practices and recommendations related to each of these topics through detailed explanations and examples. |
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| The Future is Now: FinTechs, Crypto & Other Digital Innovations Salvatore Zerilli, Managing Director – Mercadien The future of banking is here - between Robotic Process Automation (RPA), Artificial Intelligence (AI), Machine Learning, FinTechs, Cryptocurrency & more, the possibilities are endless. With new technological innovations & more systems coming into play every day, have you considered updating your business model to adapt to these rapidly changing times? In this session, you’ll learn about the latest cutting-edge technologies & discover ways your institution can remain relevant through partnering with fintech companies, from offering back-end support to providing Banking-as-a-Service (BaaS). We will also discuss the current global outlook on cryptocurrency & how your institution can enact change today to reap the benefits of tomorrow. |
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| Getting Beyond the COVID Credit Tail: Syncing Portfolio Analytics, Testing & Review David Ruffin, Principal – IntelliCredit Going forward, bankers must coordinate all of the tools in their arsenals (stress testing, portfolio analytics, loan review, etc.) to tackle the credit uncertainties residing with main street borrowers. From a credit risk management perspective, these are traditionally seen as separate disciplines – however, together, they are mutually informative and provide an efficient solution to staying ahead of emerging credit risk. We’ll discuss how to interpret the critical markers within each discipline which better inform credit risk managers, and how to create an informative codependency among the three concepts. Attendees will walk away from the session with an understanding of: how to use the combined power of stress testing, portfolio analytics and loan review to stay on top of, and ahead of, emerging credit risk and key components of writing your own script. |
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| The Home-Stretch: Practical CECL tips for Community Banks and Credit Unions Ian F. McDowell, CPA, Senior Vice President - S.R. Snodgrass, P.C. This course will cover the most practical advice for community banks and credit unions that are bringing their CECL calculations down the home-stretch. We will explore the results that a community bank or credit union might expect to see from its allowance for credit losses calculation under ASC 326, evaluate some of the common themes that we are identifying within our Firm’s client base, and dive into specifics on the role that qualitative factors will play in their calculation. Attendees will leave the presentation with information about how their actual results may look different than their original expectations, have some background on the most common issues and themes in the community banking landscape, and have a much more in-depth understanding of how to build a qualitative factor framework that works with CECL and satisfies their auditors. |
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| High Performing Banks - Responding to 2021, Excelling in 2022 Shawn O'Brien, President - QwickRate No one could have predicted what was coming in 2020, or how the economy would respond in 2021. But high-performing institutions find ways to seize opportunities and successfully strategize responses to drive results. These banks know how to use publicly available performance data to their advantage. We’ll show banks how to emulate the top performers by taking their cues from the numbers. Using a proprietary index of `trueʹ community banks, we’ll discuss the metrics and approaches they use and how data analytics can help other banks increase the effectiveness of strategic planning and improve their efficiency ratio via fresh, factual insights. We’ll also review the top performers attending the event and announce awards for high performers in each of three asset classes. Attendees will walk away from the session with an understanding of: • Why and how to use data analytics to help you increase the effectiveness of strategic planning and improve your efficiency ratio via fresh, factual insights on matters such as profitability/earnings and yield/cost analysis. • How to generate and benefit from a comprehensive analysis of your bank’s actual performance relative to your peers, considering specific strengths and weaknesses as well as overall competitive rankings. Awards will be announced in our session for high performers attending the event. |
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| How Do You Eat the NIM Elephant? One BP at a Time. Barry Adcock, Financial Performance Strategist and Mark Swanson, Financial Performance Strategist – Deluxe The past two years have presented bankers with numerous challenges. Among them is the significant compression of your Net Interest Margin (NIM). As the yield curve steepens and the likelihood of tightening by the Fed increases, NIMs will begin to rise from their historic lows. But not all financial institutions are positioned the same. Not all financial institutions will have a plan to optimize their NIM for the long term. Some will leave basis points on the table. In this session veteran bankers Mark Swanson and Barry Adcock will share strategies, tactics and tools to help you Optimize your NIM. They will draw on their experiences, as a former CEO/CFO team during The Great Recession, when they increased their Bank's NIM from 2.95% in 2009 to 4.11% in 2014, one Basis Point (BP) at a time. |
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| Inflation and Residential Mortgage Exposure & Mitigating the Risks Ryan Henley, CFA, Managing Director Head of Financial Institutions Strategies - Stifel - Fixed Income Capital Markets Daniel F. Morrill, CPA, Principal – Wolf & Company, P.C. Over the prior two years, the depository industry experienced extreme growth in liquidity which resulted in meaningful shifts to balance sheet compositions. First, as loan growth in other asset classes stagnated for a period, residential mortgage pipelines flourished. For many, this mortgage engine provided a mechanism to utilize excess liquidity by placing these assets on balance sheet in contrast to selling in secondary markets. Second, the investment portfolio grew considerably in light of a lack of alternative methods to deploy cash, oftentimes into longer duration securities. As a result, several balance sheets now have positions or overall asset liability profiles exposed to inflation induced rising rates. In this session, Dan and Ryan will explore hedging strategies that can help to mitigate these risks. In addition to reviewing guidance and opportunities presented by ASU 2017-12, they will also deconstruct FASB’s recently proposed “Portfolio Layer” hedging method and provide a practical how to guide for use with residential mortgages. They will provide real life examples of strategies and transactions, mitigation benefits to the risks highlighted, and expand on proper management of hedge positions post transaction. Attendees will walk away with a considerably expanded knowledge of hedging in the current environment. |
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| Interest Rate Derivatives - Strategy for Long-Term Success Steven Houle, VP/CCO, Advisory Services, Catalyst Strategic Solutions – Catalyst Corporate FCU Interest rate derivatives is a critical tool in the management of all financial institutions, and credit unions are no different. With mortgage lending becoming the loan of choice for many credit unions, a strong interest rate derivatives program is critical for prudent balance sheet management. While credit unions have historically relied on balance sheet borrowings to manage long-term risk, interest rate derivatives offer a cheaper and more flexible option, while also protecting liquidity risk. This presentation will focus on the core principals of interest rate derivatives, the strategic use in managing balance sheet risk, the cost savings and why these instruments exceed the value created by term borrowings. |
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| Introduction to Freddie Mac's Multifamily CMBS Securities Tim Peacock, Senior Vice President and Jim Powell, Senior Vice President - Multi-Bank Securities, Inc This session will provide you with a broad-based understanding of the value and structure of these investments. You’ll cover general product structure (K and SB deals), term classes (fixed and hybrid), prepayment protection characteristics, safety and credit quality, new-issue offers and pre-purchase analytics, orders, pricing and allocations, CRA investment characteristics and helpful resources. |
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| Liquidity Stress Testing in a Cash Flushed Environment Christine Mills, Senior Director, MountainView Risk & Analytics With all the excess liquidity in the financial system due to continued growth in deposits, the industry fighting the age old risk reward paradigm. It is essential to deploy excess cash to support profitability, but it poses a risk to liquidity. At the same time, regulators remain focused on liquidity demanding more empirical data analysis to support liquidity stress testing assumptions and scenarios. Executing an effective and flexible liquidity stress testing process empowers the institution to make strategic decisions with confidence. In this presentation, MountainView Risk and Analytics will discuss: 1. The current marketplace and liquidity trends across the financial industry 2. How to build an effective liquidity testing framework including scenario development coupled with strategic remediation 3. Supporting liquidity stress testing assumptions with proper data segmentation and quantitative analytics. 4. Preferred practice holistic approach to support enterprise risk management and enhanced strategic decision making for asset deployment and improved profitability. |
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| Marketing as a Strategic Driver of Profitable Growth Tom Sullivan, Founder and CEO - Princeton Partners FSG A recent Princeton Partners FSG study of over 2,300 community banks demonstrated a strong, positive correlation between marketing investments and the resulting growth in assets and earnings. The positive correlation was consistent in all four asset classes analyzed: under $500 million, $500 - $1 billion, $1 - $5 billion and $5-10 billion. Banking is a mature and highly competitive industry with few levers, besides scale and technology, that can be used to grow market share. Where does marketing fit into the equation? Tom Sullivan will share information and insights that will provide bank executives with a richer understanding of marketing and how it can be used as a strategic growth driver with measurable ROI. Key Takeaways: The relationship between Marketing Investments and Growth in Revenues and Earnings. The differences between Strategic Marketing and Tactical Marketing. How to measure the ROI of Marketing Programs and Initiatives Strategies for banks to gain market share versus regional and national competitors. Strategies for banks to defend market share versus neo-banks among Gen X and Z. Discover Answers to Key Questions: Does our institution take a tactical or strategic approach to marketing? Do we understand who our most profitable customers are? |
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| Regulations and Governance and Compliance, oh my! Jim Jarrett, Director – Baker Tilly Over the past year, one of the most commonly cited areas of examiner criticism has centered on sound model risk management. This webinar will review examiner guidance on model risk management programs to help banks learn how they can implement an effective model risk management program. Improving the efficiency of implemented models is an ongoing regulator and compliance exercise. This webinar will walk through the keys to effective model risk management and the components of model validation. Learning Objectives: Review regulatory requirements for a model risk management program Understand best practices for model system validation Learn about tuning and optimizing models Gain an understanding of structuring an appropriate governance program. |
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| Rising Rate Readiness: Strategies to Consider and Avoid Frank Farone, Managing Director – Darling Consulting Group After emerging from the lowest rates in a lifetime, record low loan levels, abysmal margins and historically high liquidity, the times they are a changin'! The challenges are many and those who are best prepared for managing through the new rate cycle will be able to capitalize on the new environment while others are destined to make the same common mistakes, we witness in every rising rate cycle. Topics discussed include loan and deposit product and pricing strategies, investment ideas to optimize income while managing risk, wholesale funding ideas and cost of funds management amid rising rates, capital management and hedging ideas and more. As the current balance sheet within the balance sheet today eventually regresses to the norm, don't be caught by surprise, plan ahead now! |
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| Risk's Role at the ALCO Table: The Key to an Effective ALCO Process Mark Haberland, Managing Director – Darling Consulting Group Coming out of a period of unprecedented challenges and “new normals,” we find ourselves having to look for new ways to increase earnings and manage the risk within our balance sheets. COVID changed the rules, but we know we need to make changes to become stronger than before. To become a “high performing” organization starts with turning your ALCO into a “Profit Center” by making better use of the models, data, assumptions and reporting you have to turn that information into a strategic benefit! The environment has made it more important than ever to review the assumptions that go into your models, analyze the right scenarios, get a better understanding of customer behavior patterns and take the right action. Maintaining the status quo may have worked in the past, but do you have the peace of mind you can monitor potential exposures and optimize earning potential? During this session, participants will gain valuable insights through discussion and case studies of how detrimental some practices can be to your bottom line and the success many institutions are having by promoting a collaborative culture at ALCO and improving the quality of risk model inputs/outputs to make the best decisions for their institutions. |
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| Staying Nimble: The Ins and Outs of Effective Scenario Planning Ed Martinez, Director, Professional Services – Syntellis Performance Solutions How agile is your institution? Though currently in a low-rate, high-deposit environment, have you identified short and long-term scenarios based on key business drivers for when the financial market inevitably changes? In this session, Sr. Solutions Engineer Brett Sturman will walk us through best practices for effective scenario planning and practical applications for financial institutions. You will learn: 1. What scenario planning really means and what you should be modeling in today’s environment 2. The specific drivers you should look at, and tips for incorporating those driver assumptions to create meaningful scenarios 3. How to understand the downstream effects of specific scenarios/assumptions on your current forecast. |
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| Utilizing KPMs in the New Tech Environment Tommy Esposito, Director of Risk Management - Velligan Blaxall Consultants, LLC Find out about Organizing, Accessing, Enriching/Enhancing, Democratizing and Strategizing using all the data available to you. We will demonstrate, with examples how you can enhance your bank’s data with publicly available information. Do you have enough data? Big data requires Big Data. By virtue of being bigger, Big banks have access massive amounts of data We will demonstrate how smaller banks can compete? Key Objectives: Organizing data, Accessing data, KPMs over time, Peer Comparisons Between institutions Over time, Best in Class NMDs, Data visualization, Outliers, Relationships and Other factors. The Fintech Future, Data Access, Speed and Visuals. Takeaways: Understanding and making use of all the information you have available, Identify and follow key metrics over history and compare to peers/competitors/best in class. |
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| You Can't Predict, But You Can Prepare - Hedging and Interest Rate Swaps Scott Hildenbrand, Head of Balance Sheet Analysis and Strategy, Head of Piper Sandler Hedging Services Financial Services Group – Piper Sandler Join Scott Hildenbrand for a discussion of balance sheet strategies and tactics in the current environment. His comments will focus on understanding your A/L position and interest rate hedges while explaining how your institution can use derivatives to drive fee income, enhance NIM, and protect capital and earnings. He will also cover relevant accounting and market updates to contextualize the ideas and help management teams find value for their institutions. |
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| What Makes a High Performing Bank? Timothy Reimink, Managing Director and Stephanie P. White, CPA, Senior Manager, Financial Servicing Consulting - Crowe LLP Over the last decade Crowe has tracked the performance of banks to identify trends and strategies that lead to high performance. High Performing Banks (HPB) outperform their peers consistently and have more opportunities for growth. What are the common characteristics and strategies of high performing banks? What can executives do to make their organizationís high performing? Becoming high performing for some banks may require major transformation. During this session experienced Crowe banking consultants will share the results of their research into high performing banks, and share about the strategies and practices that HPB put in place to help the succeed and outlast competition. |
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| What Your Broker Doesn't Know Can Hurt You: Holistic Investment Management Jason Haley, Chief Investment Officer – ALM First A thoughtful and disciplined investment process should lead to more consistent and predictable earnings from the fixed-income portfolio. In this session we use real life examples to show how the portfolio management process works and review performance results to assist your institution in building its own framework. Key Attendee Takeaways: 1. Recognize the role of a successful portfolio for your balance sheet 2. Understand the appropriate approach to its structuring 3. Review the advantages of a well-modeled portfolio. |
CPE CREDIT HOURS
The Financial Managers Society, 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. Complaints regarding registered sponsors may be addressed to: The National Registry of CPE Sponsors, 150 Fourth Avenue North, Suite 700, Nashville, TN 37219-2417. Web site: www.nasba.org
- Level: Basic, Intermediate and Advanced
- Prerequisites: None
- Advance preparation: None
- Field of Study: Accounting, Auditing, Finance, Management Services and Taxes
- Up to 11 hours
- Instructional Mode: Group Live (In-Person Event) or Group Internet Based (Virtual Event)
