|General Session Descriptions
|Economic Trends and Why They Matter
Thomas Hoeing - Former Vice Chairman of the Federal Deposit Insurance Corporation, Former President and Chief Executive Officer of the Federal Reserve Bank of Kansas City and Distinguished Senior Fellow at the Mercatus Center at George Mason University
With the Country’s eyes back on the Financial Services Industry, the latest trends and hot topics are more vital than before. Our opening General Session will focus on economic shifts such as, “What’s happening in Washington,” “The role regulators will be playing moving forward” and “How many of these topics and changes will land on your desk in time.” With a 40+ year career in Financial Services, Mr. Hoenig will share his expertise and beliefs on how best to approach the ever-changing environment as well as provide key points that all financial institutions should focus on, regardless of asset size, location and/or history.
|Accounting & Regulatory Panel
- Sydney Garmong, CPA, Partner, National Office - Crowe LLP
|Breakout Session Descriptions
|2023 – What Have We Learned? What Now?
Gary Svec, Managing Director – Performance Trust
Hindsight is 20/20…only if you look. In this session, the discussion will focus on the impact of going from zero interest rates with asset challenges, excess capital and liquidity in 2021 to rates up 525 basis points in 16 months with margin compression, capital stress and limited liquidity. Now, are we making knee-jerk decisions that will hurt us even more in the future? What we have learned, what to do now and how to prepare for volatility in the future.
|Accounting and Audit Update - Hot Topics and Critical Updates
JP Shelly, Partner – Crowe LLP
Erin Twitchell, Senior Manager – Crowe LLP
This session is designed to provide conference participants with up-to-date information on the impact of new and emerging topics in accounting and auditing, including a discussion of newly issued standards, emerging topics, and other current events. Speakers will discuss the "Big C's" impacting our industry today, among other things: CECL (adoption by 2023 adopters), Climate-related disclosures and Cryptocurrency.
|ALM & Liquidity Model Performance Management in Challenging Times
Brett Aitken, Director, Risk Management Analytics & Validations – Darling Consulting Group
With the precipitous rise in interest rates and other economic challenges, the performance and reliability of our interest rate and liquidity risk models and the supporting assumptions are under pressure and increased regulatory scrutiny. During this session, DCG’s leading ALM and liquidity risk modeling experts will highlight the most common modeling and assumption challenges given today’s unprecedented economic environment and how to address them successfully and inspire ongoing confidence in your interest rate and liquidity risk assessments and strategy. Key takeaways include: Emerging practices on ALM and liquidity model performance monitoring, effective assumption management, given today’s challenging economic environment and how to inspire confidence with ALCO, your Board, model risk/audit and avoid regulatory scrutiny.
|Back To The Future: NIM Management Lessons From The Past
Barry Adcock, Financial Performance Strategist – Deluxe
Mark Swanson, Financial Performance Strategist – Deluxe
After three years of NIM compression and excess liquidity on bank balance sheets, the tide has changed. Short-term rates have risen significantly and earning asset yields and NIMs are on the rise. But this is no time to get complacent in your NIM management strategies. Decreasing liquidity and an everchanging yield curve presents similar challenges to previous rising rate cycles. Applying lessons from the past can help you optimize your NIM in the future. In this session veteran bankers Mark Swanson and Barry Adcock will share loan pricing and cost of funds management strategies, tactics and tools to help you Optimize your NIM over the long term and through the changing rate environment. They will draw on their experiences, as a former CEO/CFO team during The Great Recession, when they increased their Bank's NIM from 2.25% in 2009 to 4.16% in 2014, as well as, their interactions with their 300 client banks.
|Become Hercules – Ensure strength no matter what you face
Heather Hinchley, Senior Solutions Engineer – Syntellis Performance Solutions
As continual changes in the market create tighter margins for financial institutions, leaders must uncover different ways to realize profitable growth for the organization. The tight job market means many financial services companies are operating with fewer people or have limited personnel adept at managing core systems and processes. A looming recession combined with rising interest rates crunch the already small margins, and consolidation within the industry is changing the competitive landscape. These challenges are much different than the challenges financial institutions faced over the past few years. So, what can you do to ensure success, no matter what the world throws your way? Learn how to use the momentum of market changes to your advantage and find new sources of profitable growth to hedge against an uncertain environment. Understand how you can do more with less, ensure smart strategic decisions with your investment dollars and be nimble with response to changes in the industry.
|Creating Funding Stability in Uncertain Times
Todd Terrazas, Vice President, Institutional Investment Manager – PMA Funding
Today’s dynamic funding environment is forcing institutions to frequently assess their surroundings from an economic, competitive and regulatory standpoint. In the face of these uncertainties, it is important for financial institutions to understand and seek stable funding sources, along with diversified funding vehicles, to navigate the many complexities in the financial industry. Key takeaways include: deposit trends amongst community, regional, money center and credit unions, insights into institutional pricing strategies based on the business cycle, understanding competitive forces influence over deposit base, how to predict and manage depositor decay rate, the pros and cons of various funding vehicles and alternatives to LIBOR as its being phased out.
|Gaining More Control over Deposit Acquisition Through ROI-Driven Marketing
Tom Sullivan, Founder and CEO – Princeton Partners FSG
To meet their deposit needs, many community banks primarily rely on sources like federal funds, municipal deposits, and brokered deposits. However, some banks have learned the benefits of using marketing programs to reliably acquire deposits. These benefits include gaining new, local-market customers, lowering the cost of funds, and enhancing brand awareness. Tom Sullivan will share practical information about proven tools, approaches and programs that enable bank executives to reliably predict the deposit outcomes of strategic, data-driven marketing programs. Key takeaways include: how combining three different approaches to deposit marketing programs generates results, how highly targeted campaigns create the best results, best practices that many community banks fail to execute on their website, their digital front door and how to attribute results to your marketing programs to understand the ROI achieved.
|Hedging Your Balance Sheet for the Unknown and Unexpected
Ben Lewis, Managing Director – Chatham Financial
Recent events have highlighted the importance of preparing your business for what you don’t think is going to happen. In this session, you’ll learn how FIs use hedging strategies to prepare their balance sheets for expected and unexpected outcomes in rising and falling rate environments, and how to get your institution set up for hedging to be prepared to execute strategies when the time is right.
| High-Performance Banking – What Are the Numbers and What Drives Performance
Stephanie White, Senior Manager – Crowe LLP
Marianne Wade, Managing Director – Crowe LLP
Over the last decade, Crowe LLP has tracked the performance of banks to identify trends and strategies that lead to high performance. Crowe continues to gather insights into how High Performing Banks (HPB) outperform their peers consistently and have more opportunities for growth. Becoming high performing for some banks may require a major transformation. During this session, experienced Crowe banking consultants share the results of their research into high-performing banks, insights into current economic conditions and share the strategies and practices that HPB implement to help them succeed and outlast the competition.
|A Holistic Approach to Financial Institution Performance
Elisabeth Vogel, Managing Director, Head of Financial Institutions Strategy Group – Raymond James
Financial institutions are facing many challenges in a post-COVID world, some due to fiscal and monetary policy and some due to internal decisions made in times of uncertainty. The goal of this presentation is to share similar conversations we are having with banks and credit unions, along with concerns we know regulators and examiners have given focus. How should you manage unrealized and evolving interest rate risk while not restraining income today? Helping each institution recognize and appreciate its unique position allows for optimal navigation in volatile environments.
|It’s Time to Focus Your Attention to Liquidity
Mark Haberland, Managing Director – Darling Consulting Group
Eric Poulin, Senior Consultant - Darling Consulting Group
Throughout the pandemic, high levels of liquidity and a lack of reinvestment opportunities put liquidity management on the back burner for many risk managers. But with rates on the rise and uncertainty abounding in deposit portfolios, it’s time to refocus attention on your liquidity management process, before it’s too late. A right-sized liquidity management process is critical in today’s environment to optimize liquidity levels and sources, understand the impact of deposit flows, and identify proper stress scenarios that could significantly impact availability over time. Join Darling Consulting Group as they will cover: current trends and what lies ahead for the industry, critical elements all institutions should have in their liquidity management process (both operational and contingency), and real-life case studies that highlight strategies to increase margin while managing liquidity risk.
|Leveraging your Budgeting and Planning Processes to Optimize Performance
Bryan Ridgway, Director, Performance Management Solutions – Empyrean Solutions
Ken Levey, Managing Director - Empyrean Solutions
Implementing a best practices approach to budgeting and planning by having the right people, planning the right areas, and planning the right way can help organizations optimize performance through their planning processes. By understanding the drivers of performance at your institution and having the right people in the organization plan those drivers, the budgeting and planning process will inherently become more efficient, more effective, and more valuable. In this interactive, discussion-based session, we will present best practices learned through working with hundreds of financial institutions, across various budgeting and planning-related topics and then open the floor to the audience for discussion, ideas, and approaches that they utilize at their own institutions. Topic areas will include best practices in balance sheet and margin planning, non-interest income and expense planning, personnel and payroll planning, along with overall budgeting and planning processes.
|Managing Loan Pricing in Changing Rates How to stay abreast, and profitable
Dave Koch, Managing Director, Advisory Services – Abrigo
Market rate movements are inevitable! But institutional loan rates are not as elastic. Is your lending team is originating both high quality and profitable loans? In times of changing rates, history has proven that there is a lag in your loan offer and that often rates move by less than the market movements. This gap comes from a pricing process that is both reactive and lacks the right metrics for measuring well-priced loans. During this session we will outline the best practices for determining profitability in loan pricing and present a concrete decision-making process to help ensure a more proactive and profitable margin under changing market rates.
|Model Risk Management in an Evolving World
Meredith Piotti, Principal – Wolf & Company, P.C.
As technology continues to change the way we rely on and interpret data, developing a strong model risk management program becomes paramount to ensuring strategic decisions are made using reliable, accurate information. Many institutions are struggling as they try to harness the data they have to gain insights in customer’s behavior and leverage that information to gain a competitive advantage. The failure rate for big data projects is reported to be between 60-85%. Join Wolf & Company, P.C. to find key steps to take to ensure your project is successful. Attendees will leave the presentation with an understanding how to establish and the importance of a strong model risk management program in the evolving world of model, data analytics and machine learning/Artificial Intelligence, key things to consider in their Model Risk Management Policy and overall Risk Appetite Statements and oversight requirements to ensure controls are in place to address model risk.
|Navigating the Storm: Minimizing Uncertainty
R. Joseph Vandergrift, Managing Director, Credit Union Financial Strategy – Piper Sandler
Join R. Jospeh from Piper Sandler to discuss managing interest rate and liquidity risks specific to Credit Unions. He will talk about effective security portfolio management, how loan and deposit pricing can impact liquidity, as well as how hedging strategies can be used to mitigate risk to both net interest income and NEV on either side of current interest rates. He will also explore how some short-term decisions, thought to benefit the member, could actually have unintended consequences. Attendees will leave with a better understanding of the need to be proactive when managing all aspects of one’s balance sheet.
|Non-Maturity Deposits – History has not been Repeating Itself
Nathaniel Eidt, Senior Director – MountainView Risk & Analytics/SitusAMC
Financial models require model owners to input assumptions about customer behaviors to drive the results. The typical practice is to base assumptions off institution-specific historical data. The assumption is that your institution’s pricing strategies from the past will influence and drive the future. But the industry has seen dramatic change, and with less price sensitivity and non-intuitive behaviors, these anomalies need to be considered in forecasting behavior. On this topic, MountainView Risk & Analytics will examine the history of institution deposit pricing and customer behaviors and provide insight into: how to utilize the data/information available to develop deposit strategies, how to utilize these deposit strategies to improve model outputs and make management and regulators comfortable along the way and the need for additional NMD segmentation to assist with profitability management and liquidity risk management.
|Plan ahead or get left behind: helpful tips to handle corporate tax changes
Tanya Thomas, Partner – BakerTilly US, LLP
With the sunsetting of particular Tax Cuts and Jobs Act tax laws drawing nearer, corporations need to plan ahead in order to leverage current tax laws and mitigate the possible impact of changes that are scheduled to occur should Congress take no further action. That, along with the potential of future tax rate increases, and the enactment of the 2022 Inflation Reduction Act, has many organizations concerned about what the future holds. In our discussion, we will review these acts and discuss how they might affect your organization. Alongside this, we will present a handful of tax planning techniques that can help with accelerating — or deferring — your organization’s taxable income. We will also discuss the present congressional makeup and how it will impact banks with current and future legislation.
|Robust Liquidity Management & Funding Evaluation
Brent Lytle, Director, Advisory Services – ALM First
With liquidity tightening rapidly across the industry and remaining a top supervisory priority, now is the time to review your institution's liquidity management practices and evaluate whether your liquidity position is sufficient to navigate a wide range of potential stress events. In this session, we will discuss the guiding principles of sound liquidity management, including a systematic approach to liquidity monitoring and prudent contingency planning. We’ll review various methods of liquidity measurement and discuss the pros, cons, and costs of liquidity solutions, including short-term funding alternatives, term advances, and deposit strategies to help your depository better prepare for crisis situations. Key takeaways include: how to quantify your store of liquid assets and access dependable cash flow projections, how to develop thorough stress testing and identify contingent liquidity sources and ensure your institution has the tools and strategies needed to survive the next stress event.
|Sight vs. Vision: Preparing your Balance Sheet for the Future
Scott Hildenbrand, Head of Piper Sandler Financial Strategies & Piper Sandler Hedging Services, LLC – Piper Sandler
Join Scott Hildenbrand from Piper Sandler for a discussion of balance sheet strategies and tactics in the current environment. He will review common mistakes in volatile environments and explain the difference between having sight and having vision for your institution. He will discuss examples for companies with different risk profiles and examine which strategic options are available on the asset and liability sides of the balance sheet. This will include market updates to contextualize the ideas and help management teams prioritize the right things for 2023 and beyond.
|Understanding the transition from TDR’s to Modified loan disclosures
Michael Umscheid, President/CEO – ARCSys
While we should all happy that TDR’s are going away, the replacement is not a walk in the park and will require each institution to change process and policies to meet the new disclosure requirements. This session will help you gain a practical and functional understanding of the new standard. Key takeaways include: when are TDR’s gone and how to transition, understanding when a loan will meet the new modification requirements, changes in policies and procedures you need to consider and why and disclosure requirements and how to make this easier.
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 - Technical, Business Management & Organization - Non-Technical, Finance - Technical, Management Services - Technical, Taxes - Technical
- Up to 9.5 hours
- Instructional Mode: Group Live