Texas Seminar

Investment Strategies and
Interest Rate Risk Seminar

Community financial institutions in 2012 are facing new realities. While earnings and other measures of performance have generally improved, loan to deposit ratios remain at historic lows and prospects for loan growth are uncertain. This means that investment portfolio performance will continue to be a prime focus for managers. Moreover, interest rate risk remains high on the list of priorities for regulators, and financial institution managers find that they need growing support for their ALCO processes.

The Baker Group’s upcoming Investment Strategies and Interest Rate Risk Seminar will address specific strategies that can be employed for the bond portfolio in order to improve margin and mitigate unnecessary IRR. Attendees will learn practical steps they can take now in order to enhance performance and prepare for the next rate cycle. We will discuss security selection processes and liquidity management, and present tools for assessing credit risk in municipal bonds. We will also explore additional stress tests for the entire balance sheet using our Interest Rate Risk software.

An In-Depth Program

Financial institution managers will come away with sound ideas for using the bond portfolio as an effective tool in managing liquidity, cash flows, and interest rate risk. Attendees will also gain insight into the remarkable changes that the banking industry is experiencing in the current market environment. Seminar topics include:

• Current Economic Conditions and Fed Policy Outlook
• Pre-Exam Interest Rate Risk Checklist
• Characteristics of High Performance Portfolios
• How to Effectively Reduce Extension Risk in the Bond Portfolio
• Top Strategies to Prepare for the Next Rate Cycle
• Managing Cash Flows and Options Risk in the Investment Portfolio
• How to Analyze Your Municipal Bond Credits
• Managing MBS Cash Flow Volatility With the Right Loan Attributes

Who Should Attend

Financial institutions' CEOs, CFOs, investment officers, board members, and those who are directly or indirectly responsible for financial management functions will benefit from this seminar. There is no cost for this seminar.

Seminar Information

Attendance to the Investment Strategies and Interest Rate Risk Seminar is limited in order to allow attendees as much one-on-one and Q&A time as needed. The level of learning for this seminar is intermediate to advanced, and basic knowledge of finance and banking is recommended. Because this seminar is presented without charge to attendees, there are no refund or cancellation policies. We do, however, welcome any constructive suggestions you might have concerning the seminar. Your comments should be directed to Skoshi Heron at 1.888.990.0010.

CPE Credits

The Baker Group 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 for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.learningmarket.org.

Six hours of CPE credits will be earned for attendance.

Hotel Reservations

You are responsible for your own hotel reservations. A block of rooms has been reserved for The Baker Group Seminar participants. To assure accommodation availability, reservations should be made at the hotel by March 13, 2012. Room reservations received after this date will be confirmed on a space-and-rate available basis.  When you call for hotel reservations, be sure to identify yourself as a Baker Group attendee. For your convenience, call 972.717.0700 to make hotel reservations.

Four Seasons Resort and Club
4150 North MacArthur Boulevard | Irving, TX, 75038
Reservations: 972.717.0700
Hotel price: Superior $195, Deluxe $225, and Villa $250, all + tax
Website

Seminar Schedule

Speakers

Martin H. Barnes, Chief Economist, BCA Research. Mr. Barnes joined BCA Research in late 1987 and for 18 years he was responsible for The Bank Credit Analyst, the company’s highly respected flagship service. His analysis of the economic and financial outlook is widely followed around the world, and he is known for providing leading-edge research on a broad range of subjects of relevance to investors. He is quoted regularly in the press and speaks frequently at investment conferences. In his book The Ultimate Investor, the legendary investor Dean LeBaron featured Mr. Barnes as one of “The People That Make Modern Investment.”

Prior to joining BCA, Mr. Barnes spent 10 years as Chief International Economist with Wood Mackenzie, one of the top U.K. brokerage firms. From 1973 to 1977 he was an economist with British Petroleum in London.

Mr. Barnes is on the Board of Trustees of the University of Victoria Pension Fund, and is a member of the National Association of Business Economists, the Conference of Business Economists, and the Montreal and Victoria Societies of Financial Analysts. He received his economics degree from the University of Strathclyde, Glasgow and moved from Scotland to Canada in 1987.

BCA Research is one of the world’s leading independent providers of global financial market research. Its client base includes financial institutions, corporations, governments and high net worth individuals in every major country.

Jeffrey F. Caughron has worked in financial markets and the securities industry for twenty-five years, always with an emphasis on banking, investments and interest-rate risk management. His trading experience includes several years on the Treasury desk for an international bank on Wall Street and subsequent positions trading Mortgage-Backed Securities and other Taxable Fixed Income products for regional broker/dealers. Jeff has expertise in broad Asset/Liability Management issues, working with institutional accounts on controlling interest rate risk exposures and maximizing returns. He has published numerous articles on various risk management topics through the years, and is frequently quoted in the financial press. Jeff also serves on the faculty of the Midwest School for Community Bankers and the Bank Operations Institute. Jeff earned his degree in economics from the University of Oklahoma and is now an Associate Partner with The Baker Group LP where he serves as a market analyst and portfolio strategist.

Ryan W. Hayhurst joined The Baker Group in 1991 as an intern while attending the University of Oklahoma and is now an Associate Partner and Manager of the Financial Strategies Group. Ryan develops Investment and Asset/Liability Management strategies designed for the specific needs of community banks. He is integrally involved in the development of several software systems by The Baker Group Software Solutions Inc. to help banks with Interest Rate Risk Management, Fixed Income Analytics, Investment Portfolio Accounting, and Bank Budgeting and Planning. Ryan speaks nationally at banking conventions and events and he serves on the faculty of several community banking schools. Ryan regularly develops and presents regional as well as online seminars with a focus on investment and asset/liability education and he presents to community bank Investment, ALCO, and Board Meetings.

Edward A. Krei is a Managing Director of The Baker Group. He performs advisory services relating to balance sheet and investment portfolio strategies, risk management, and strategic planning.

A frequent speaker at banking and investment conferences, Ed has spoken for the FFIEC, the Federal Reserve Board, the Comptroller of the Currency, the OTS, the Conference of State Bank Supervisors, and state banking and securities regulatory agencies. He has served as a faculty member of numerous banking schools, including the Graduate School of Bank Investments and Financial Management, the ABA National Commercial Lending Graduate School, and the Graduate Schools of Banking at LSU, SMU, and Colorado.

Lester F. Murray joined the Baker Group in 1986 and is currently a Sr. Vice-President within the firm’s Financial Strategies Group. In that capacity, he works with community banks in helping them develop and implement Investment and A/L Management strategies. Lester is also a frequent speaker at various investment conferences and educational seminars. Before joining Baker, he worked at two broker/dealer banks in Oklahoma City and was also an Assistant National Bank Examiner. He is a graduate of Oklahoma State University.

Phil Stenseth, CFA is a Managing Director of The Baker Group. He is responsible for directing the firm’s fixed income trading operation. He is instrumental in the firm’s development of bank investment portfolio and interest rate risk management strategies, researching new investment products, and monitoring bank regulatory and compliance issues. Additionally, Phil has revised and continues to enhance the firm’s proprietary software programs designed to assist clients in the management of their investment portfolio (APM) and the overall interest rate risk of the bank (IRRM).

Phil regularly conducts educational seminars for banking groups and associations nationwide. He has addressed various bank trade associations and serves as a faculty member of several national and regional banking schools. Phil has been frequently published in many banking journals and periodicals. Phil holds a Bachelor of Science degree in Finance from the University of Arizona and is a Chartered Financial Analyst (CFA). He is a member of the Association for Investment Management and Research (AIMR) and the Financial Analysts Society. Additionally, Phil is registered as a general securities representative with the Financial Industry Regulatory Authority (FINRA).