9th Annual Workshop Community Bank Investments & Asset Liability Management

September 3–5, 2014 | Bellagio, Las Vegas

Co-sponsored by the Graduate School of Banking at Colorado and the University of South Carolina Darla Moore School of BusinessRegister online at

www.GSBColorado.org Continuing Education tab

PRESORTEDNon-Profit Org.U.S. Postage

PAID Boulder, CO

Permit No. 1518

University of Colorado3215 Marine Street, Suite W198UCB 411Boulder, CO 80309-0411

What Will You Gain by Attending?

• An understanding of how the U.S. and global economies are performing and potentially affect your institution’s operating performance

• You will examine the characteristics of high-performing community bank investment portfolios and funding activities

• You will learn what features make some mortgage-backed securities relatively attractive in the current interest rate environment and when rates actually increase

• You will evaluate the risk and return features of different types of municipals and why municipal securities – both tax-exempt and taxable – are attractive investments

• You will examine the elements of effective beta and decay analysis of your institution’s deposits, and understand the associated management implications

• You will learn how to improve your institution’s interest rate risk modeling by incorporating current best practices

• You will identify interest rate and yield curve trends and assess strategies for balance sheet management

• You will learn what bank-specific attributes buyers of bank stocks look for when banks do an initial public offering (IPO)

• You will learn what bank-specific attributes buyers of banks pay for when doing mergers and acquisitions

• You will examine the costs and benefits of capital raising alternatives

• You will hear a regulatory update on interest rate risk, liquidity risk and investment portfolio analytics

Learn About• Key drivers of high performance banking• Risk-return features of mortgage-backed

securities, agency securities and municipal bonds: What should you be buying and selling in the current environment?

• Core deposit analytics and strategies for wholesale borrowing

Workshop Objective:Uncertainty throughout the U.S. and global economies continues to create threats and opportunities for community bankers. While net interest margins remain under pressure and high quality earning assets are difficult to find in many areas, there are core strategies that bankers can pursue to best position their institutions for rising rates and improved operating performance. This workshop examines opportunities and potential strategies in determining the appropriate balance sheet mix and structure of earning assets and funding sources, managing agency, mortgage-backed and municipal securities, identifying which deposits are truly ‘core’ and getting the most out of your bank’s asset and liability management model. Sessions provide a critique of current investment alternatives including a discussion of what securities are attractive in the current rate environment and when interest rates rise. They demonstrate how to conduct a meaningful core deposit analysis and suggest specific strategies to enhance portfolio performance. Other sessions address methods to improve the institution’s interest rate risk modeling and overall ALCO process and examine community bank valuation, capital raising alternatives and merger/acquisition opportunities. The program specifically identifies key regulatory directives regarding interest rate risk and liquidity risk and their implications.

Prepare for Rising Rates: Improve Your Bank’s Investment Portfolio Performance, Interest Rate Risk & Deposit Analytics and Shareholder Value

Schedule of Events*

Wednesday, September 3

4:30-6:00 p.m.U.S. and Global Economic Outlook Robert Albertson, Sandler O’Neill

Thursday, September 4

8:00-9:30 a.m.Balance Sheet Management in High Performance Community Banks Ed Krei, The Baker Group

9:45-11:15 a.m.Workshop on Agency & Mortgage-Backed Securities: What Should You Be Buying/Selling? Dan Dujmic, BMO Capital Markets

11:30 a.m.-12:45 p.m.Workshop on Municipal Securities: Performance in the Context of Credit and Interest Rate Risk Management Ed Krei, The Baker Group

6:00-7:00 p.m. Reception

12:45-2:00 p.m.Luncheon Address: Interest Rate Risk Modeling & Managing Investments: A Regulatory Perspective Scott Greenup, FDIC

2:15-3:30 p.m.Developing an Effective IRR Modeling Process Matt Pieniazek & Darnell Canada, Darling Consulting Group

3:45-5:00 p.m.Deposit Loyalty Analysis: Beta, Decay and Rising Rates Matt Pieniazek & Darnell Canada, Darling Consulting Group

Friday, September 5

8:00-9:30 a.m.Enhancing Portfolio Risk Management & Reporting at the ALCO and Board Levels Ed Krei, The Baker Group

9:45-11:15 a.m.Protecting Your Portfolio from Rising Rates Jason Mork, BMO Capital Markets

11:30 a.m.-12:45 p.m.Luncheon Address: Capital Planning, IPOs and Bank Valuation Jeff Gerrish, Gerrish McCreary Smith

1:00-2:15 p.m.Building Shareholder Value: Merger and Acquisition Opportunities Jeff Gerrish, Gerrish McCreary Smith

2:30-3:30 p.m.Panel: What Does the Future Hold?

*subject to change

Target Audience• CEOs• Presidents• CFOs• Investment Officers• Controllers & Cashiers• Bank Regulators• Bank Directors• ALCO Members

Registration InformationRegister Today! Visit www.GSBColorado.org (Continuing Education tab) for more information and a registration form.

$975 per attendee*

*$875 if two or more attend from the same institution. Cost includes some meals, reception and program material. Hotel is not included. Payment is due at registration. All cancellations must be received in writing. If a participant cancels prior to the start of the workshop, there will be a full refund of all fees paid with the exception of a $200 administration fee. A participant who cancels after the workshop has started will be liable for the full fee.

Attendees are eligible to receive 19 CPE credits.

• Given the potential for rising rates, determine which securities best fit your risk and return objectives and understand how to structure your investment portfolio

• Improved interest rate risk modeling• How the market currently values community

banks and how to build shareholder value organically and via mergers/acquisitions

Speakers• Robert Albertson, Sandler O’Neill• Darnell Canada, Darling Consulting Group• Dan Dujmic, BMO Capital Markets• Jeff Gerrish, Gerrish McCreary Smith• Scott Greenup, FDIC• Timothy Koch, Graduate School of Banking

at Colorado & University of South Carolina• Ed Krei, The Baker Group• Jason Mork, BMO Capital Markets• Matt Pieniazek, Darling Consulting Group

AccommodationsWe have reserved hotel rooms at the rate of $144 (Wednesday-Thursday, September 3-4) and $214 (Friday, September 5) at the Bellagio

Hotel. An additional $15 resort fee may apply. Please contact the hotel directly at 888-987-6667 and reference Graduate School of Banking at Colorado to make your reservation before August 15, 2014. You will be charged the first night’s room/tax at the time of reservation.