Events : Bank Board Training Forum

Welcoming Reception | Sunday, September 13

5:00 PM – 6:00 PM
Welcoming Reception & Registration
We welcome all registered participants to a kick-off reception.

Day One | Monday, September 14

7:00 AM – 8:00 AM
Breakfast & Registration

7:30 AM – 7:45 AM
Welcoming Remarks

8:00 AM – 8:15 AM
Welcome: Developing the Strongest Board Agenda
For CEOs, Chairs, Lead Directors and Board Members
Al Dominick, CEO, Bank Director
As we welcome attendees to Chicago for the annual Bank Board Training Forum, we share how high-performing banks develop an agenda — and foster effective discussions — that pay particular attention to their core areas of responsibility: strategy and oversight.

8:15 AM – 8:45 AM
The Current State of Banking
For CEOs, Chairs, Lead Directors and Board Members
Steven Hovde, Chairman & CEO, Hovde Group, LLC
This session provides a high level overview of dominant trends in banking today including regulation, the U.S. economy, margin pressure, consolidation and M&A.

8:45 AM – 9:15 AM
Innovation in Banking
For CEOs, Chairs, Lead Directors and Board Members
From upgrading a bank’s digital banking experience to expediting account openings, from providing asset-based lending solutions for small businesses to improving a bank’s operations, we explore how and where banks recognize creative partnerships to build relationships and enhance their franchise’s value.

9:15 AM – 9:45 AM
Building Blocks of an Effective Board
For CEOs, Chairs, Lead Directors and Board Members
James McAlpin, Jr., Partner, Bryan Cave Leighton Paisner LLP
A diversity of skills, experience and attitude constitutes a strong board — which reflects a set of enlightened governance policies and procedures that center on honesty, personal integrity and accountability. This session focuses on best practices that every board member should follow in order to maximize their time and contributions to their colleagues, constituents and shareholders.

9:45 AM – 10:15 AM
The Different Ways to Grow The Bank
For CEOs, Chairs, Lead Directors and Board Members
Dan Flaherty, Managing Director FIG Investment Banking, Janney Montgomery Scott LLC
Matt Veneri, Head of Investment Banking, Janney Montgomery Scott LLC
There are a variety of ways a bank can grow, be it through acquisitions, de novo expansion, product-line growth (i.e., commercial loan production offices), using a lift-out strategy or pursuing a broader digital platform. Each strategy presents a unique set of challenges and opportunities. This session covers the risks and rewards of different approaches to growth and looks at successful banks that have pursued different paths.

10:15 AM – 10:30 AM
Refreshment Break

10:30 AM – 11:20 AM
Exclusive CEO, Chair & Lead Director Peer Exchange: Session I
Exclusively for CEOs, Chairs and Lead Directors
During the peer exchange sessions, CEOs, chairs and lead directors candidly discuss a variety of topics in a private, off-the-record setting. By the end of the conference, each peer group will have had the opportunity to participate in all five of the topic exchanges listed below:

Organic Growth and M&A Issues
Advised by: Kirk Hovde, Managing Principal & Head of Investment Banking, Hovde Group, LLC
Examples of topics discussed include:

  • What is your view on bank valuations in your market, and how is that likely to impact your behavior as a potential buyer or seller?
  • Have you discussed a possible acquisition with your primary regulator? If so, what was their reaction?
  • How is your bank viewing big bank competitors in your area, and what impact do they have on your bank? How is your bank positioning itself to respond/prepare?

Compensation & Talent Issues
Examples of topics discussed include:

  • Which committee has oversight for board compensation?
  • How often do you benchmark board pay?
  • How are directors at your bank compensated? What compensation components do you use, and how are they paid?

Legal & Governance Issues
Examples of topics discussed include:

  • Rank the top three regulatory compliance challenges facing your bank. How are management and the board addressing these challenges?
  • How does the board incorporate regulatory compliance into the institution’s business model?
  • How does the board monitor management’s progress in responding to regulatory changes?

Audit & Risk Issues
Examples of topics discussed include:

  • Are risk tolerance strategies reviewed annually or in advance of an examination with bank regulators?
  • What role should the audit committee/risk committee play in setting the risk appetite for the institution?
  • What role should risk governance play in strategic planning?

Innovation & Technology – Challenges & Opportunities
Examples of topics discussed include:

  • Has your bank hired a Chief Information Security Officer? If so, who does that person report to, and how frequently do they interact with the board?
  • Who do you primarily rely upon to stay informed about technology trends related to the financial services industry?
  • Do you feel that your board has a sufficient level of expertise regarding technology?

10:30 AM – 11:10 AM
Breakout Sessions (select one)
For Board Members Only

Breakout I: Bank Director 101: The Role of The Board
Jack Milligan, Editor-in-Chief, Bank Director
The first session in our series, Bank Director 101, focuses on the duties and attributes of an effective board.

Breakout II: Board Skills Assessments
Most boards don’t look for new directors until they have to – and many boards may not realize what skills they are missing on their current board. This session covers everything from using a matrix to identify skills gaps and learning tips to find and attract talented potential directors to serve on your board. Hear how you can create a process that is proactive and ongoing.

Breakout III: Strategies to Improve Bank Performance
The ultimate objective of most banks is to maximize performance, but how do you go about doing so?  This session focuses on specific bank case studies — a highly efficient bank, a bank with a history of low credit losses and a bank that has historically performed well through crises — showing you exactly what others have done to improve and maximize their overall performance.

Breakout IV: The Secret Sauce of Technology Integration
A bank can no longer rely only on its own products and services if it wants a competitive advantage today; it must also quickly and efficiently integrate the products and services of third-party fintech vendors. The secret to good integration lies largely in the way the relationship between bank and fintech is structured. Hear how to structure contracts, focus on collaboration and successfully integrate a third party with your bank.

11:20 AM – 12:00 PM
Breakout Sessions (select one)
For Board Members Only

Breakout I: Bank Director 101: How to Read and Interpret Bank Performance Metrics
Jack Milligan, Editor-in-Chief, Bank Director
This second session in our series, Bank Director 101, focuses on an overview of the basic terminology that all new directors must know in order to be an effective member of a bank’s board.

Breakout II: Business Continuity Resiliency Planning for the Board
Mike Dempsey, Senior Manager, Dixon Hughes Goodman LLP
Most boards are not prepared for a crisis, yet a business continuity event (a hurricane or cyberattack) can strike your bank all too quickly. This session delves into the questions directors should be asking to strengthen policies and procedures in place at their bank. Directors will leave this session with ideas to increase resilience and understand business risks that affect profitability and operational continuity.

Breakout III: Audit Best Practices
Michael Davis, Member, Assurance Services, KraftCPAs PLLC
This session reviews the latest information on best practices related to the audit oversight function, including topics like BSA/AML, CECL, vendor management and new accounting standards on the horizon.

Breakout IV: Preparing to Go Public
What steps should the board and management at a privately held bank follow when they have made a decision to go public? What is the process, how long does it take and what is the board’s role? What are the advantages and disadvantages of public ownership – and what can go wrong?

11:30 AM – 12:10 PM
Exclusive CEO, Chair & Lead Director Peer Exchange: Session II
Exclusively for bank CEOs, Chairs and Lead Directors
CEOs, chairs and lead directors attend the second round of peer exchange sessions facilitated by industry leaders. By the end of the conference, each peer group will have had the opportunity to participate in all five of the topic exchanges listed below:

Innovation & Technology – Challenges & Opportunities
Examples of topics discussed include:

  • What security issues concern you the most?
  • What compliance issues do you face?
  • Who is responsible for innovation at your bank?  Does your bank have a culture of innovation?

Organic Growth and M&A Issues
Advised by: Kirk Hovde, Managing Principal & Head of Investment Banking, Hovde Group, LLC
Examples of topics discussed include:

  • What drives value today if you are considering a sale and, likewise, what are buyers looking for?
  • If you are a buyer, is there a minimum asset size you look for when identifying targets?  Are there specific qualities you look for in a target today when identifying acquisition opportunities?
  • How involved is your board in discussing and identifying opportunities for growth, including organic growth or acquisitive growth?  Would you like them to be more or less involved?

Compensation & Talent Issues
Examples of topics discussed include:

  • Do you have an emergency succession plan in place in the event of a sudden departure of your CEO or other members of your executive team?
  • What kind of training/development programs do you offer for leadership?
  • What percentage of your senior management team will retire in the next five or so years? Do you have a workable succession plan in place?

Legal & Governance Issues
Examples of topics discussed include:

  • Who has the ultimate responsibility for strategy at your bank?  What is the role of management in setting strategy? What is the role of the board in setting strategy?
  • What communication occurs between the board and shareholders with regard to the ongoing performance of the bank and its strategic direction?
  • Is there a policy in place at the board level to ensure consistency of process in exploring or responding to overtures for a possible merger?

Audit & Risk Issues
Examples of topics discussed include:

  • What staffing and resources are devoted to regulatory compliance?
  • How often does the risk committee meet with examiners? 
  • Are you currently working with or considering working with any regtech companies?  If so, who and why did you choose that company?

12:00 PM – 1:15 PM
Networking Lunch

1:15 PM – 1:30 PM
Welcome Back
For CEOs, Chairs, Lead Directors and Board Members
An opportunity to talk about member services, Board Performance Surveys and Board Structure Guidelines.

1:20 PM – 1:30 PM
Bank Director’s Governance Survey Update
For CEOs, Chairs, Lead Directors and Board Members
Jack Milligan, Editor-in-Chief, Bank Director

1:30 PM – 2:00 PM
Recruiting for the Best
For CEOs, Chairs, Lead Directors and Board Members

2:00 PM – 2:30 PM
Emerging Cybersecurity Threats
For CEOs, Chairs, Lead Directors and Board Members
Dave McKnight, Senior Manager, Crowe LLP
The cybersecurity landscape is constantly evolving. Two years ago, one of the biggest vulnerabilities came from ransomware, a type of malicious software that threatens to publish a bank’s data or block access to digital distribution channels unless a ransom is paid. But last year, the prevalence of ransomware attacks dropped, as the rising price of bitcoin led cyber actors to focus instead on surreptitiously co-opting banks’ servers to mine cryptocurrencies. Hear about the biggest cybersecurity threats confronting banks right now.

2:30 PM – 3:00 PM
Liquidity Strategies For Bank’s Today
For CEOs, Chairs, Lead Directors and Board Members
Timothy Kosiek, Partner, Baker Tilly Virchow Krause, LLP
This session highlights the current state of liquidity management in the banking industry with a focus on the shifting dynamics of bank deposits, the emergence and expansion of alternative payment solutions and the challenges facing community banks in achieving desired liquidity levels.

3:00 PM – 3:15 PM
Refreshment Break

3:15 PM – 3:55 PM
Exclusive CEO, Chair & Lead Director Peer Exchange: Session III
Exclusively for bank CEOs, Chairs and Lead Directors
CEOs, chairs and lead directors attend the third round of peer exchange sessions facilitated by industry leaders. By the end of the conference, each peer group will have had the opportunity to participate in all five of the topic exchanges listed below:

Audit & Risk Issues
Examples of topics discussed include:

  • What role, if any, should the internal auditing team play in risk management?
  • Describe the internal controls your board has in place to monitor risk.  Do you feel they are adequate?
  • What areas of risk management do you believe your institution could improve upon?  What resources do you need to make those improvements?

Innovation & Technology – Challenges & Opportunities
Examples of topics discussed include:

  • How do you know if your bank is staying relevant?
  • How does your bank handle customer experiences and the customer interface?
  • What is your bank doing to improve the customer experience through the use of technology?

Organic Growth and M&A Issues
Advised by: Kirk Hovde, Managing Principal & Head of Investment Banking, Hovde Group, LLC
Examples of topics discussed include:

  • What are the best organic growth opportunities in your market?
  • How are you approaching these growth opportunities?  
  • Are you attempting to grow by expanding your existing business lines, or are there new business ventures that you are considering?

Compensation & Talent Issues
Examples of topics discussed include:

  • How broadly do you offer incentives in at your bank?
  • Do you have different programs for executives, producers, tellers, etc.?
  • What incentive measures do you use to reward employees? 

Legal & Governance Issues
Examples of topics discussed include:

  • If the CEO of your bank is also the chair of the board, do you have a designated lead independent director?
  • If you have a lead independent director, what are the responsibilities and expectations of that person?
  • When was the last time the content and structure of your board’s meeting agenda were reviewed and discussed by the board as a whole?  What changes to the agenda resulted?

3:15 PM – 3:55 PM
Breakout Sessions (select one)
For Board Members Only

Breakout I: Bank Director 101: Audit & Risk Committee Basics
Jack Milligan, Editor-in-Chief, Bank Director
This third session in our series, Bank Director 101, provides participants with foundational knowledge about the roles and responsibilities of both the audit and risk committees from an expert in the industry.

Breakout II: Regulatory Trends the Board Should Know
There is so much to know when serving on a bank board – especially with regard to regulations – current ones as well as those that are on the horizon. Learn about those regulations as well as the regulatory trends that all directors must know in order to serve the board well.

Breakout III: The Future for Family-Owned Banks
Many of today’s community banks have some form of family ownership, but what does that mean for the board – and how does the full board work with the family to ensure the success and growth of the bank?

Breakout IV: How To Value Your Bank
Do you know how much your bank is worth? Do you know what factors go into creating a bank’s valuation? Learn how to value and what matters during this informative session.

4:05 PM – 4:45 PM
Exclusive CEO, Chair & Lead Director Peer Exchange: Session IV
Exclusively for bank CEOs, Chairs and Lead Directors
CEOs, chairs and lead directors attend the fourth round of peer exchange sessions facilitated by industry leaders. By the end of the conference, each peer group will have had the opportunity to participate in all five of the topic exchanges listed below:

Legal & Governance Issues
Examples of topics discussed include:

  • Overall, how would you rate the performance of your bank’s board — high, medium or low?  And why? 
  • Does the board evaluate its performance on an annual basis?  Are individual directors evaluated? If so, what tool or process is used for this?
  • How do you address board members who are not carrying their weight in fulfilling their responsibilities as directors?

Audit & Risk Issues
Examples of topics discussed include:

  • What is the role of the audit committee in overseeing risk if the board also has a risk committee?
  • Where do committee members get information to stay on top of hot topics, and do you feel you get adequate information on hot topics from management?
  • How does your bank’s risk committee participate in examinations, including entrance and exit interviews?

Innovation & Technology – Challenges & Opportunities
Examples of topics discussed include:

  • What advice would you give to a fintech if they wanted to work with your bank? Who should they approach at your bank? How long is your bank’s approval process? Does it go to the board?
  • What technologies do you find most interesting to consider at your bank?
  • What area of fintech do you believe your bank will receive the biggest bang for the buck if you were to partner?

Organic Growth and M&A Issues
Advised by: Kirk Hovde, Managing Principal & Head of Investment Banking, Hovde Group, LLC
Examples of topics discussed include:

  • Has size or scale become a more important consideration for your bank, and if so, why?
  • How do you source potential acquisitions, and what are your evaluation criteria?  Is this process driven by the CEO? How does the board become involved?  
  • Do you rely on investment bankers to bring you deals?

Compensation & Talent Issues
Examples of topics discussed include:

  • Do you have challenges attracting or retaining certain (“hot”) roles at your bank?
  • What are the most challenging roles for you to attract and retain?
  • How is your bank finding and recruiting the next generation of talent?

4:05 PM – 4:45 PM
Breakout Sessions (select one)
For Board Members Only

Breakout I: Bank Director 101: Compensation Committee Basics
Jack Milligan, Editor-in-Chief, Bank Director
In this fourth session in our series, Bank Director 101, learn about issues related to the compensation committee including answers to questions such as: How should incentive goals be selected? How do you incorporate discretion? What differentiates a risk adjustment from a clawback or a forfeiture? How do you know if there is appropriate pay and performance alignment?

Breakout II: The Board’s Role in Lending
Whether or not the board approves individual loans, there’s still a lot for directors to do from an oversight capacity. Here’s what directors should focus on.

Breakout III: Surviving an Economic Downturn
Many economic indicators are pointing towards an impending downturn, but how can your bank prepare – and even thrive – should the economy slow down? Learn what steps your institution can take NOW.

Breakout IV: ESG & Why It Matters To You

4:45 PM – 5:45 PM
Networking Peer & Guest Reception

Day Two | Tuesday, September 15

7:00 AM – 8:00 AM
Breakfast

8:00 AM – 8:15 AM
Day Two Opening Remarks: Planning Productive Board Retreats
As Bank Director welcomes attendees back for day two of the Bank Board Training Forum, we focus on board retreats – and how to make them productive and even transformative.

8:15 AM – 8:45 AM
Red Flags for Regulators
For CEOs, Chairs, Lead Directors and Board Members
Jennifer Burke, Partner, Crowe LLP
Joseph Durham, Senior Manager, Crowe LLP
This session discusses the five issues that examiners really focus on when they are looking for deficiencies.

8:45 AM – 9:15 AM
Creating an Effective ESG Program
For CEOs, Chairs, Lead Directors and Board Members
Shannon Patterson, Counsel, Troutman Sanders LLP
Seth Winter, Partner, Troutman Sanders LLP
Investors continue to place greater emphasis on environmental, social and governance (ESG) factors when evaluating financial institutions. ESG issues and ESG risk management are growing concerns for bank regulators and, in some cases, bank customers. This session summarizes key ESG trends and steps that can improve your bank’s ESG program.

9:15 AM – 9:45 AM
What’s Driving M&A Pricing?
For CEOs, Chairs, Lead Directors and Board Members
Curtis Carpenter, Principal & Head of Investment Banking, Sheshunoff & Co. Investment Banking
Bank merger prices change from year to year and vary among banks of different sizes, geographies and business models. In this session learn what factors drive M&A pricing and how you can best position your shareholders to maximize their opportunities as buyers, sellers or investors in this rapidly changing environment.

9:45 AM – 10:00 AM
Refreshment Break

10:00 AM – 10:40 AM
Breakout Sessions (select one)
For Board Members Only

Breakout I: Bank Director 101: Board Performance & Evaluation
Jack Milligan, Editor-in-Chief, Bank Director
Scott Petty, Partner, Chartwell Partners
In this fifth and final session of our series, Bank Director 101, new directors learn about the basics related to overall board performance and evaluation of the board.

Breakout II: CEO Succession
Kathy Baron, Vice President, Pearl Meyer
Laura Hay, Managing Director, Pearl Meyer
Managing the CEO succession process is one of the board’s key responsibilities. A regularly reviewed emergency plan and a closely followed long-term strategic succession plan are necessary for risk mitigation and protection of shareholder value. Join us as we discuss how to develop properly designed and executed succession plans, which help build and maintain the confidence of your investors, customers and employees.

Breakout III: Diversity (in All Things) & The Board
Research proves that great boards have truly diverse populations, but what does that mean – and how do you find the best candidates that strengthen not only your board but your business as well.

Breakout IV: The Board’s Role in Growing The Bank
What is the board’s role in business development, and how can each member contribute to the growth of the institution while keeping in mind the differences between the board and management?

10:00 AM – 10:40 AM
Exclusive CEO, Chair & Lead Director Peer Exchange: Session V
Exclusively for bank CEOs, Chairs and Lead Directors
CEOs, chairs and lead directors attend the fifth round of peer exchange sessions facilitated by industry leaders. By the end of the conference, each peer group will have had the opportunity to participate in all five of the topic exchanges listed below:

Compensation & Talent Issues
Examples of topics discussed include:

  • Do you have challenges attracting or retaining certain (“hot”) roles at your bank?
  • What are the most challenging roles for you to attract/retain?
  • How is your bank finding and recruiting the next generation of talent?

Legal & Governance Issues
Examples of topics discussed include:

  • Overall, how would you rate the performance of your bank’s board — high, medium or low?  And why? 
  • Does the board evaluate its performance on an annual basis?  Are individual directors evaluated? If so, what tool or process is used for this?
  • How do you address board members who are not carrying their weight in fulfilling their responsibilities as directors?

Audit & Risk Issues
Examples of topics discussed include:

  • What is the role of the audit committee in overseeing risk if the board also has a risk committee?
  • Where do committee members get information to stay on top of hot topics, and do you feel you get adequate information on hot topics from management?
  • How does your bank’s risk committee participate in examinations, including entrance and exit interviews?

Innovation & Technology – Challenges & Opportunities
Examples of topics discussed include:

  • Have you partnered with a fintech?  If so, who and why? What problem(s) were you trying to solve?
  • What challenges have you faced (or are you concerned about) when partnering (or considering to partner) with a fintech?  
  • What part of the due diligence process do you think needs more time and attention?

Organic Growth and M&A Issues
Advised by: Kirk Hovde, Managing Principal & Head of Investment Banking, Hovde Group, LLC
Examples of topics discussed include:

  • Has size or scale become a more important consideration for your bank, and if so, why?
  • How do you source potential acquisitions, and what are your evaluation criteria?  Is this process driven by the CEO? How does the board become involved?  
  • Do you rely on investment bankers to bring you deals?

10:50 AM – 11:20 AM
Findings From Bank Director’s Governance Best Practices Study
For CEOs, Chairs, Lead Directors and Board Members
Jack Milligan
, Editor-in-Chief, Bank Director
Bank Director and Bryan Cave Leighton Paisner LLP conducted our first-ever Governance Best Practices Study this year. Hear the most significant findings from the Study and what you can learn from those who participated.

11:20 AM – 12:00 PM
Thoughts from the Chairs of the Board
For CEOs, Chairs, Lead Directors and Board Members
Moderated by: Jack Miligan, Editor-in-Chief, Bank Director
As the head of the board of directors, a bank’s chair focuses on stability, profitability and culture. While not taking an active role in everyday management, he or she sets the board’s agenda. With this in mind, we invite the perspectives of three leading bank chairs to discuss the challenges and opportunities they see community banks facing today and in the near future.