Community banks continue to operate in an environment characterized by intense competition, regulatory scrutiny, and economic uncertainty.  This program will help shed light on some important changes taking place in the financial industry and their impact on community banks.  With the regulatory landscape as a backdrop, the discussion will then shift to a macro-economic review and its influence of and implications for both investment portfolio strategy and interest rate risk management.  The discussion will continue with specific investment product analyses and potential strategic alternatives.  Throughout the program, emphasis will be focused on the need for community banks to develop compatible and complementary strategies that will promote the optimal utilization of the investment portfolio as a valuable management tool.

Why You Should Attend:

• Explore recent balance sheet trends and regulatory “hot buttons” on interest rate risk
• Discuss the current Federal Reserve policy stance and implications for bond portfolios

• Review FDIC FIL on Sensitivity to Market Risk and how to remain compliant
• Discuss new points of focus on interest rate risk such as assumptions stress testing
• Learn methods of analysis for Non-Maturity Deposits behavior: average lives, sensitivities (betas) and the potential level of surge deposits
• Learn investment management strategies that make sense in the current environment
• Discover reporting tools to measure, monitor and manage interest rate risk in the bond portfolio as well as the entire balance sheet.

Who Should Attend:

This summit was created for presidents and CFOs who feel they need a review, or for assistants who help with the portfolio but have never had the opportunity to be exposed to bond education.

About the Summit:

The extended low rate environment has put pressure on margins, enticing some institutions to “reach for yield” in higher risk assets and driving regulators to focus their attention on interest rate risk like never before. Regulators have put out several specific advisories on IRR since 2009, including system-wide webinars, FILs and articles from the various banking agencies. Examiners have conducted mini exams focused solely on interest rate risk and collecting additional IRR data during regulatory scheduled exams. Regulators are also concerned about risks that reside specifically in the investment portfolio. Attendees to this seminar will learn methods for prudent management of the investment portfolio which emphasize cash flow dynamics, security selection, credit analysis for municipal bonds, and relative value analysis.

This seminar is designed to make you aware of the range of interest rate risk related issues you may face in future exams and will provide you with specific examples of the types of analysis that are necessary to comply with heightened IRR scrutiny.