Sunday, October 26, 2014
Conference Opens
5:15 p.m. – 6:00 p.m.
Conference Opening Keynote
Spyro Karetsos, Director of Enterprise Risk Management, Vanguard Group
6:00 p.m. – 7:30 p.m.
Opening Reception in Exhibit Hall
Monday, October 27, 2014
7:00 a.m. – 7:45 a.m.
Breakfast in Exhibit Hall
7:00 a.m. – 7:45 a.m.
Innovation Sessions (includes breakfast)
What Does “Moneyball” Have to Do With Surviving the Next Downturn?
Best Practices Around Risk Rating Assessment Models
Selecting and managing your bank’s credit risks -- while producing accurate and timely risk ratings -- is a critical function in today’s rapidly changing regulatory and competitive environment. The type of risk rating systems employed must not only reflect the complexity of a bank’s commercial lending activities and overall levels of risk involved, but should allow for monitoring of changes and trends in risk levels, facilitate informed decision making, differentiate individual and groups of credit by the risk they pose, and manage overall credit risk in a way that optimizes returns over the long run and satisfies requirements of your regulator.
Gain insights from Michael Fuchs, director of commercial lending for Wolters Kluwer Financial Services, in this session designed to show how a more targeted, data-oriented approach to implementing credit risk ratings systems can help you field a more competitive, successful credit team and position you for the next downturn.
Michael Fuchs, Director of Commercial Lending, Wolters Kluwer Financial Services
Stressing the Top Line: Forecasting Your Bank's Nonaccrual Rates in the CCAR Scenarios
As the DFAST stress testing process matures, regulators are starting to expect banks to use statistical modeling to forecast more than just net charge-off rates. The next wave
of loss drivers that will need to be covered are historically more volatile, often have unintuitive relationships with economic indicators, yet in aggregate impact your bank's submission results
nearly as much as the forecasted net charge-off rates. At this session, hear approaches to modeling one of these next wave loss drivers that is directly linked to the bank's top line: nonaccrual rates.
Ryan Hoffman, Risk Consultant, SunGard
8:00 a.m. – 8:30 a.m.
A Message from Our Leadership
Bill Githens, CRC, President and CEO, RMA
Nancy Foster, Chief Risk Officer and Executive Vice President, Park Sterling
Bank
8:30 a.m. – 9:00 a.m.
Chapter Awards
9:00 a.m. – 9:30 a.m.
Keynote Speaker
Martin J. Gruenberg, Chairman, FDIC
9:45 a.m. – 10:45 a.m.
Breakout Sessions Group I
HELOC Portfolio Risk Strategies for Community Banks
Faced with the impending draw-down period, regulators want banks to ensure that they have identified the risks that are hidden in their HELOC portfolios. Are you looking
beyond the credit scores of the borrowers and the LTV of the deals? Hear the integrated methodologies the regulators promote as best practices to follow as you manage through the HELOC draw-down
situation. Hear how some banks are managing this process today.
Michael Webb, Managing Examiner, The Federal Reserve Bank of Richmond
Martin Gallagher, EVP & CCO, Beneficial Bank
Meg Mueller, EVP/Chief Credit Officer, Fulton Financial Corp
Construction Lending Risk Management Administration (New Time)
Cranes are back in many cities as developers are starting more construction projects. Developers who survived the downturn are stronger today and seem to be getting as many if
not more concessions as they did before the crisis. Are your credit structures and your construction administration function ready to manage today’s new realities and expectations? Ensure that
your bank’s credit appetite is in synch with your operating risk structure.
Dev Strischek, SVP/Corporate Risk Management, SunTrust Bank
Richard Hamm, Owner/President, Advantage Consulting and Training
Bill Tryon, Technical Director/Construction Services, Partner Engineering and Science, Inc.
Model Validation for Community Banks
There has been a proliferation of models to measure all the risk disciplines banks have. As such, some smaller institutions are flocking to vendors to sell them a model to address their
needs. While resources and expertise may be limited at the community banks, it is more desirable from the regulators perspective to have banks develop and validate their own models. Being able to
understand and defend your model methodology to the regulators is paramount.
Stephen D. Phillips, EVP/Chief Credit & Risk Officer, First United Bank
Michael G. Nassy, Executive Vice President & Chief Credit Officer, First Virginia Community Bank
Joel J. Pruis, Senior Business Consultant, Experian Information Solutions, Inc
Moderator: Michael Horrocks, Senior Solutions Manager, Experian Information Solutions, Inc
DFAST and Stress Testing: Lessons Learned for Banks of All Sizes and Complexities
Stress testing provides a way for bank management to impose market-based
shocks to their portfolios to ensure risks are being properly mitigated. Over
the past several years, large bank stress testing, followed by DFAST for the
$10-50B banks, has been force-placed by the regulators on a much wider scale
than the bank's loan portfolio. Learn how some banks are using this exercise
as a strategic tool to better understand the risks at hand and to run more efficient
operations.
Kimy Metivier, CFA, Senior Sales Engineer, Wolters Kluwer Financial Services
Elliott R. Carpenter, CTP, SVP, Manager-Asset/Liability Management, Hancock Holding Company
Building an Effective Flood Compliance Program
Flood compliance is an issue that banks have managed for years. Now there is
increased government scrutiny and fines for faulty compliance processes. It
is imperative that the bank build out and document itsprocess for certifying
flood compliance on all real estate deals. Vendor reliance now ultimately falls
to the bank to ensure compliance with the regulations.
Victor J. Kapusinski, VP/Lending and Foreign Exchange Services, US Bank, NA
The Challenges and Future of Commercial Banks of All Sizes: How to Cope with Regulators and Unintended Consequences of Government Policies
All too often, government policies and inside-the-beltway politics have had serious adverse consequences on the commercial banking industry. Historically, financial crises have spawned massive growth in the number and power of regulatory agencies. The lines of responsibility between “competing” regulatory agencies have become increasingly blurred, while the introduction of new statutes frequently results in undesirable social costs. Much of the same is true regarding fiscal and monetary policies. This interactive session will prepare you for dealing with a more intrusive regulatory environment and costlier compliance, and will provide a pragmatic blueprint for getting politicians, regulatory officials, and banks on the same page.
Rick Buczynski, Ph.D., SVP/Chief Economist, IBIS World
Richard J. Parsons, Author, Broke: America’s Banking System
10:45 a.m. – 11:15 a.m.
Break in Exhibit Hall
11:15 a.m. – 12:15 p.m.
Breakout Sessions Group I (repeat of 9:30 a.m. sessions)
HELOC Portfolio Risk Strategies for Community Banks
Construction Lending Risk Management and Administration
Model Validation for Community Banks
DFAST and Stress Testing: Lessons Learned for Banks of All Sizes and Complexities
Building and Effective Flood Compliance Program
The Challenges and Future of Commercial Banks of All Sizes: How to Cope with Regulators and Unintended Consequences of Government Policies
12:15 p.m. – 1:15 p.m.
Luncheon
12:15 p.m. – 1:00 p.m.
Innovation Sessions (includes
lunch)
The Perils of Prudence
Accounting rules will soon require all financial institutions to calculate expected loss in place of the current incurred loss model. The
idea is progressive but the implementation is likely to fraught with potentially damaging problems mostly caused by a level of irrationality
masquerading as prudence. Brian Ranson, author of Credit Risk Management and a speaker with global experience, will argue that banks must
look beyond accounting to amass and acquire reliable data sources to survive and prosper in this new environment.
Brian Ranson, Author of Credit Risk Management
The Fab Four versus the Greatest: Their Famed Meeting as an Example of Coming Success in Commercial Lending
When The Fab Four met The Greatest in 1964, Cassius Clay mugged for the camera
and the Beatles ran around the ring dodging punches. Just like this iconic meeting,
bankers are connecting with business owners and propelling the economy ahead with
credit to expand and fund operations. Just as the careers of The Fab Four and
The Greatest advanced, bankers and U.S. businesses seem poised for success over
the near-term.
This presentation will outline the rising credit risks that accompany accelerated
economic growth. It will rely on the largest database of commercial loans on
private companies to support results for rising risks. Specifically, this presentation
will outline the following:
- Stage and composition of the business cycle of the U.S. economy.
- Lending growth by industry and geographic region (by state and industry within state).
- Loan delinquencies by industry and geographic region (by state and industry within state).
- Historical default rates for the private C&I loans.
- Portfolio credit quality.
- Forecast of future defaults by industry and geographic region.
- Stress tests on forecasts of probabilities of default under differing hypothetical macroeconomic scenarios.
- Business start-ups.
- Credit gap.
Attend this session to learn how bankers and business owners are growing commercial
loans and to learn about the sources of growth and emerging credit risks over
the next few quarters.
William Phelan, President, PayNet, Inc.
1:15 p.m. – 2:15 p.m.
Keynote Speaker
Dr. Charles Krauthammer, Pulitzer Prize–Winning Syndicated Columnist and Political Commentator
2:15 p.m. – 2:45 p.m.
Break in Exhibit Hall
2:45 – 3:45 p.m.
Breakout Sessions Group II
Leveraged Lending: Key Issues in the Marketplace
From comparing your bank's definition of leveraged lending to the guidance, to interpreting what the regulators see as the critical issues, leveraged lending has been a
source of great challenge for many banks. Banks are getting mixed messages from the field as to whether the guidelines are hard and fast rules, or common-sense guide posts to overall
compliance. Hear what the regulators are saying from both the policy and supervisory sides of this issue as we review the most recent Shared National Credit (SNC) exam and put some
clarity around the guidance.
Thomas Guenther, National Bank Examiner, OCC Shared National Credit Program Manager
Daniel J. Neumeyer, Chief Credit Officer, Huntington National Bank
Darrin Benhart, Director/Commercial Credit Policy, Office of the Comptroller of the Currency Central Dist.
Health Care Lending Outlook (New Time)
It used to be that lending to doctors was pretty straight forward. They borrowed for equipment, had decent deposits and cash
management, and sometimes purchased their building with your commercial mortgage loan. Much of the medical lending market has changed with the
advent of new health care operating models, major changes to patient privacy requirements and a general consolidation of hospitals and private
practices. Come hear the trends you need to understand to best position the bank’s health care portfolio over the next five years.
Gregory P. Shufelt, Vice President, The Camden Group
Risk Rating Management
Risk grading models have grown more sophisticated over the past ten years as many banks have transitioned to a dual risk grading model. Banks have become increasingly reliant
on their grading accuracy as it applies to portfolio management. Are grades adjusted/confirmed each year, each quarter, or every time an analyst works on the credit? Are you adjusting your pricing
when there is a downgrade to the credit? Who is responsible for the risk rating: Line or Credit? Discuss the processes some banks use to effectively manage renewals, downgrades, and upgrades back
to the line of business.
Kaizad Cama, Director/Risk Consulting, Sungard
David S. Adcock, Senior Vice President, BancorpSouth Bank
David G. Mercer, Risk Rating Group Executive, BB&T
Vendor Management: What Heightened Expectations Means for Banks Who Outsource Critical Banking Functions
The use of vendors to save costs and increase efficiencies is
not new to banking. What is new is the increased scrutiny banks must put on
any vendor that has contacts with the customers themselves, such as an auto
dealer, or has access to critical customer data. There is also the expectation
that banks underwrite their vendors (as if they were borrowers) to assess the
operating risks in the event that the vendor should fail. Managing this
process can be onerous for banks with a throng of vendor relationships. Come
hear how some banks have set up their vendor management process to manage this
ever-increasing facet of banking.
Mary Barnes, Senior Risk Advisor, Treliant Risk Advisors, LLC
Debbie Manos-McHenry, SVP/Chief Sourcing Officer, Huntington National Bank
J. Leigh Weaver, SVP/Third Party Compliance Risk Manager, Regions Bank
Risk Issues Facing Community Banks Today
What are the hot lending trends to watch out for and how is your bank prepared
to enter new products and services. What do you see as your bank's top opportunities
and threats as you look forward over the next 12-18 months. Hear a panel of
three community bank chief credit/risk officers as they discuss these and other
topics critical to their banks' future success.
Bob Rose, Chief Credit Officer, Brookline Bank
Nancy Foster, EVP/Chief Risk Officer, Park Sterling Bank
Terrie McQuillen, SVP/Chief Credit Officer, Community National Bank
Moderator: Lou Dunham, SVP/Senior Director/Risk Consulting, Ardmore Banking Advisors
Achieving Automation in Capital Management
Despite many advancements, manual methods of stress test data compilation, analysis and reporting are still alive and well. Proper automation has proven to lower CCAR costs, improve data quality, and save on staff burnout. In this session, attendees will hear about lessons learned "from the CCAR trenches" of a leading regional Bank, including how Banks that can bring effective automation to the capital management process can lower regulatory risk and stay ahead of the game.
H. Walter Young, Chief Data/Analytics Officer& Liquidity Risk Officer Regulatory Affairs & Capital Adequacy, M&T Bank
Doug Skinner, Director of Regulatory Compliance, AFS
3:50 p.m. – 4:50 p.m.
Breakout Sessions Group II (repeat of 2:45 p.m. sessions)
Leveraged Lending: Key Issues in the Marketplace
Health Care Lending Outlook
Risk Rating Management
Vendor Management: What Heightened Expectations Means for Banks Who Outsource Critical Banking Functions
Risk Issues Facing Community Banks Today
Achieving Automation in Capital Management
5:00 p.m. – 6:30 p.m.
Networking Reception
Tuesday, October 28, 2014
7:00 a.m. – 7:45 a.m.
Breakfast in Exhibit Hall
7:00 a.m. – 7:45 a.m.
Innovation Session (includes
breakfast)
Compete and Win with Technology Driven Loan Lifecycle Management
Technology and innovation are not only on the forefront for large financial institutions, but are rapidly growing in importance to community banks. Community banks are quickly adopting software-as-a-service (SaaS) technologies that are easily deployable and highly scalable and which position the bank for future growth. SaaS technologies offer community banks efficiencies which result in better resource allocation, increased profits, risk monitoring, regulatory compliance and operating transparency at all levels and across all lines of business. Through the use of cloud technology, community banks can streamline processes to better compete in the market while improving decision quality from origination throughout the life of the loan.
Arvind Thapar, Chief Technology Officer at WebEquity Solutions
8:00 a.m. – 8:30 a.m.
Awards
Bill Githens, CRC, President and CEO, RMA
Nancy Foster, Chief Risk Officer and Executive Vice President, Park Sterling Bank
8:30 a.m. – 9:15 a.m.
Keynote Speaker
John Silvia, Chief Economist, Wells Fargo Bank
9:30 a.m. – 10:30 a.m.
Regulatory Panel
Toney Bland, Senior Deputy Comptroller, Midsize; Community Bank Supervision, OCC
Jack Jennings, Senior Associate Director, Federal Reserve Bank
Doreen R. Eberley, Director, Division of Risk Management, FDIC
10:30 a.m. – 11:00 a.m.
Break in Exhibit Hall
11:00 a.m. – 12:00 p.m.
Breakout Sessions Group III (These
sessions do not repeat)
How Does Your Bank Communicate the Risk Appetite throughout the Organization?
Most banks are several years into creating their Risk Appetite statements as one way to ensure a common credit culture throughout their organizations. How is your bank
translating the credit limits and values (board and senior management approved) to the front line and credit analysts? Hear from bank leaders who must ensure the message is heard, understood, and
executed on a daily basis. Discuss the long-term cultural benefits to this approach.
Bob Rose, Chief Credit Officer, Brookline Bank
Ed Schreiber, Chief Risk Officer, Zions Bancorporation
ALLL- Implications of the Proposed New Methodology from FASB
FASB is proposing changes for how to account for credit losses known as the Current Expected Credit Loss (CECL), which some are relabeling the "Life of the Loan" approach. This
will change how losses are estimated because new methodologies will have to replace traditional thinking around the loss emergence period (LEP). Hear from practitioners who are looking at the
impact of these proposed changes, and assess what these changes mean to your institution.
Robert Messer, EVP/Chief Financial Officer, American National Bank of Texas,
Robert Wadley, Partner, Ernst & Young, LLP
Chris Wells, CRC, SVP/Portfolio Risk Analytics, Comerica Bank
Transitioning your Credit Loan Review
What was once thought to be a static annual exercise of reviewing
loan files for proper documentation and signature approval has now morphed into
a much greater and more important role for the bank. Credit Review is evolving
into a much higher-profile unit than in years past due to the increased responsibilities
being laid at its door. Credit Review is finding ways to work with the line
to avoid regulatory failures and to ensure that the line understands the bank's
stated risk appetite. Having access to the board and gaining a more elevated
stature in the organization has resulted in Credit Review changes few banks
had foreseen prior to the crisis.
Tim Long, Managing Director, Regulatory Compliance Practice Lead, (formerly with OCC over 30 years, most recent roles: Senior Deputy Comptroller for Bank Supervision Policy and Chief National Bank Examiner) Protiviti
Kevin M. Bates, Director of Credit Review Department, BankUnited
Walter C. Shields, Head of Loan Review, TD Bank, NA
Moderator: Bill Byrnes, Managing Director, Credit Risk Practice, Protiviti
No Accounting for Mad Haste: GAAP, IFRS, and Beyond
The FASB is contemplating and implementing changes that will affect bankers and customers alike. Whether it is the FASB Private Company Council’s desire to change GAAP for non-public firms or instituting new principles on Revenue Recognition and Lease Capitalization, these proposed actions could have serious repercussions in future credit underwriting standards and balance sheet structures. In addition, the AICPA’s new framework is has caused some confusion for bankers and there is a growing disconnect with FASB over the private company accounting space. Come hear our panel discuss where the rules stand as of now, what is due to be instituted, and what you should know about all this.
Dev Strischek, SVP/Corporate Risk Management, SunTrust Bank
MaryAnn Lawrence, Cleveland State University
12:15 p.m. – 1:15 p.m.
Luncheon
1:15 p.m.
Conference Adjourns