Education Seminar

CFO Conference
Hyatt Regency Newport Beach

The latest FDIC report shows at the end of the year, funding costs for banks under $1B were still running 22bp higher (about 48%) than banks over $1B, so there is still plenty of room for community banks to improve.

While the industry showed signs of improvement in 2012, we know that there are several key headwinds in 2013. At the top of that list are the interest rate environment and the problems this could create for yields in both our loan and investment portfolios. On the loan side, we have been successful in pricing with floors during most of the banking crisis, but that situation may change in 2013 as the better “A” borrowers look for more attractive pricing based strictly off the prime rate. For those of us who have been around awhile, this is not a surprise as this is exactly what happened in the 1990’s as we exited that crisis. This could result in a significantly lower overall loan portfolio yield at a time when lowering our cost of funds may not be possible. The “juice” from that orange may be all squeezed out leaving us with a margin problem.

This can be partially overcome by growing our loan portfolio and using some of that excess capital we have in our business. But, that will be highly dependent upon an improving economic environment. We are sure that leverage will play a major role in developing ROE in 2013 and without loan demand, we will all be looking at our investment portfolios for a lift in net income. Fortunately, we do expect to have some leveraging capability in 2013 and that may well be the answer for many of us. Having a complete investment picture will, we think, be key for 2013 and may well be the “wild card” in this difficult environment.

M&A is also heating up, and some community banks are going to have a harder time staying independent. Mounting costs, succession issues, capital-raising problems and fears over a hike in the capital-gains tax are among the reasons. “Strategic alternatives to enhance shareholder value” — including, of course, a sale — are being considered by selective banks in the right markets — ones that are healthy enough to attract buyers, yet not so powerful that they are guaranteed to thrive.

As we wait for Dodd-Frank, BASEL III, and the CPFB to unfold, we are a bit anxious about the prospects for 2013. Our goal in this workshop is to discuss ways to get you and your organization on top of this wave before it comes crashing down on us.

Program Objectives

The purpose of this seminar is to share new perspectives, tools and techniques to help finance officers better run their banks. They will leave better equipped to:

  • Incorporate trends in the banking industry into their planning
  • Describe the outlook for capital markets
  • Determine the impact of Basel III on their organization
  • Ensure their executive compensation program is competitive and meets all regulatory requirements
  • Identify new sources of fee income
  • Consider the benefits of M&A as a strategic alternative
  • Better build their franchise’s future value


The session will run from 9:00 a.m. to 4:00 p.m. on Wednesday April 3 and continue Thursday, April 4 from 9:00 a.m. to 3:30 p.m. Breakfast will begin at 8:00 a.m. and lunch at 12:30 on both days.  

April 3, 2013


9:00Introduction – Karl Nelson, KPN Consulting

9:15: Keynote Address:  2013 Outlook for California Banking – Bill Haraf, Promontory Financial Group

10:00: A Capital Markets Perspective – What To Look For in the Coming Year: Steve Miller, First Principles Capital Management

10:45: Break

11:00: Fee Income for the New Era: John Brinkworth, Harland Clarke Marketing Services


1:00:  The Evolution of Stress Testing and its critical integration Into Strategic Planning: Kamal Mustafa, Invictus Consulting Group

2:00:  Bank Assetpoint, CDARS, and ICS – Paths to Profitability in 2013: H.D. Barkett, Promontory Interfinancial Network

2:45: Networking Break

3:00: Executive Compensation: Ken Derks and Eric Johnsen, Equias Alliance


April 4, 2013


9:00:  Managing the M & A Process: Aaron Axton – KBW

9:45:  M & A – A Line of Business:  Aaron Axton – KBW

10:15: Networking Break

10:30: M & A Discussion – Aaron Axton, KBW; Bob Rogowski, McAdams Wright Ragen, Inc.; Ken Derks, Equias Alliance


1:00: Looking Ahead – The Outlook for Community Banks in an Unstable Economic World: Vitex, Inc.

1:30:  Real Solutions for Increasing Profits in 2013: Bob Colvin, First Principles Capital Management; Al Forrester, FICast Data Corporation; and Karl Nelson, KPN Consulting

3:00:  Panel Discussion – Tying it all Together:  All

3:30:  Adjourn


  • Chief executive officers
  • Chief financial officers
  • Chief administrative officers
  • Chief operating officers
  • Presidents and other senior managers
  • Controllers, treasurers, cashiers, finance, audit, and accounting managers, financial analysts
  • Bank directors and ALCO teams

Scheduled Speakers

The industry experts you’ll hear from include: 

  • William S. Haraf, Managing Director, Promontory Financial Group, LLC and former Commissioner, California Department of Financial Institutions
  • Karl Nelson, President & CEO, KPN Consulting
  • Robert Colvin, Senior Advisor, Financial Institutions, First Principles Capital Management, LLC
  • Stephen R. Miller, Chief Risk Officer, Partner, First Principles Capital Management, LLC
  • Aaron Axton, Managing Director, Keefe, Bruyette & Woods, Inc.
  • H.D. Barkett, Managing Director, Promontory Interfinancial Network, LLC
  • Ken Derks, Independent Consultant, Equias Alliance 
  • Eric Johnsen, Consultant, Equias Alliance
  • Kamal Mustafa, Chairman and CEO, Invictus Consulting Group
  • Robert Rogowski, investment banking managing director, McAdams Wright Ragen, Inc.
  • Albert A. Forrester, Jr., CEO, FICast Data Corporation
  • John Brinkworth, Executive Director of Strategy, Harland Clarke Marketing Services
  • David Powell, President, Vitex, Inc.

Registration Fees

Early-Bird Registration EXTENDED through Friday March 15,
CBA Member: $795
Non-Member: $995

Regular Registration
CBA Member: $995
Non-Member: $1195

Cancellations & Complaint Policy:

Substitutions are allowed, at no additional cost. Written notice is required for all cancellations. The full registration fee will be refunded if the written request is received by Wednesday, March 13, 2013 and 50 percent if by Wednesday, March 20. There will be no refunds after March 20. Registrations made after March 20 are not subject to refund.

Complaints regarding this program should be directed to John Lingvall, VP & Director of Education at (916) 438-4428.

Location Information

Wednesday and Thursday, April 3 – 4, 2013
Hyatt Regency Newport Beach
1107 Jamboree Road
Newport Beach, CA 92660
(949) 729-1234

CBA has a room block arranged at the hotel at a rate of $149/night plus taxes.  If you are interested in reserving a room, please contact the hotel at (888) 421-1442  and reference the CA Bankers Association Rooming Block or reserve online by clicking: Room rate includes self parking and internet.  Please make your reservations by Friday March 15, 2013; requests after this date will be accepted on a space-available basis at the regular room rate.

CBA will host self parking.

Credit Information

Program Level: Intermediate/Advanced

Prerequisite: At least three years experience as a bank financial officer

Advance Preparation: None

Method of Presentation: Group – Live (Lecture, Discussion, and Table Exercises)

Recommended CPE Credits: 12.5 Hours Maximum
(Estimated 3.0 Economics, 3.0 Accounting and 6.5 Finance)
Sponsored learning activities are measured by program length, with one 50-minute period equal to one CPE credit.  One-half CPE credit increments (equal to 25 minutes) are permitted after the first credit has been earned in a given learning activity.  Please note that not all state boards have adopted this rule.  Some participants may not be able to use one-half credit increments.