Main Session I – High Performance Idea Exchange

Facilitated by Julia Hernandez, Executive Vice President, The CorePoint

The High Performance Idea Exchange provides an open forum for senior lending and senior credit officers to discuss the opportunities and challenges facing community banks today. Facilitated by an industry expert, the session allows attendees to actively contribute and determine the topics of discussion. This unique format gives participants the chance to shape the session dialogue and fosters the free exchange of information among peers. Ideas shared typically focus on hot topics in the industry, including the various loan strategies, risk management tactics, services and products that have proven successful for today’s community banks. This session will:

  • Consider ways to promote and encourage more innovation in the lending area for enhanced profitability
  • Share ideas to increase earnings and compete effectively in the current lending environment
  • Provide an opportunity for attendees to develop knowledge in areas of utmost importance to today’s lending and credit executives

Main Session II – High Performance Idea Exchange

Facilitated by John Hurlock, President, SMARTER Risk Management

Interest rates continue to be an issue for financial institutions. The current rates are impacting the ability to find qualified borrowers and possibly the strength of your loan portfolio. Additionally, loans up for renewal may have to be altered to ensure the borrower can cashflow the payments.  Increased margins are being offset by higher costs and the potential for increased problem loans. In addition, new lending is flattening for some financial institutions. And, of course, fintechs continue to both compete and be a source for new loans.

Things to consider:

  • How has the interest rate environment affected your lending?
  • How have you changed the types of loans you are making? Have you restructured your loan portfolio? Have you tightened you credit standards?
  • What new products and services are you offering?
  • Are you acquiring loans from FinTechs or other third party providers? Will you change this in 2025?
  • What technologies are you deploying to be more efficient? Are your service providers offering AI solutions to increase efficieny?
  • Do you think delinquencies and defaults will increase? Which portfolios are you monitoring?
  • How have you modified your CRE stress test (origination and servicing)? Are you stressing more portfolios?
  • How do you think the regulatory exam will be different in 2025?
  • How are you addressing staffing issues?

General Session – Economic Update

The Fed’s inflation fight has stalled, putting in jeopardy the projected rate cuts in 2024. Yet, the US economy remains recession free even with the highest interest rates in over two decades.  What happens next?

 

Facilitated by Dr. Ed Seifried

 

The US economy continues to baffle experts.  The Fed is now in the second year of its battle against inflation which began in the spring of 2022.  The FOMC has implemented one of its most powerful anti-inflationary policy regimes in decades.  The fed policy rate currently stands at its highest level in over 20 years. While inflation has responded well to the tightening imposed by the Fed in 2023, progressed on inflation as recently slowed.  The current inflation rate remains well above the target of 2.0% and at this point one can hear the word stagflation bandied about by certain pundits.  The expected rate cuts projected for calendar year 2024 are now being questioned, and some experts are suggesting rate hikes are now in play.

 

Surprisingly, the US economy has remained recession-free during the entire process. Real GDP increased 2.5 percent in 2023 (from the 2022 annual level to the 2023 annual level), compared with an increase of 1.9 percent in 2022.  The first quarter GDP growth rate for 2024 was relatively low at 1.6%, but remained in the positive range.  However, monetary policy works with a significantly long, albeit, variable lag, and most experts suspect that the slowdown in economic activity due to almost two years of monetary tightening is sure to kick in soon.  Dr Ed will report on these developments and much more during his session.

 

General Session- Breaking through the C&I Ceiling

Facilitated by Joel Pruis, Senior Director,  Cornerstone Advisors

With a potential $1.7 trillion in new C&I balances generated during the next expansion, is strengthening your C&I segment worth it?  During this session, Cornerstone Advisors will present its analysis of a strong C&I lending segment and the potential impact on a bank’s overall performance.  Leveraging a combination of call report data and Cornerstone performance metrics, we will work to uncover typical obstacles to expanding a bank’s C&I portfolio and strategies to make sure your bank gets its fair share of the $1.7 trillion growth.

Takeaways from this session will include:

  • Industry performance benchmarks to highlight your bank’s potential opportunity
  • Cornerstone performance metrics covering new loan production targets, portfolio management capacity and staffing needs for supporting functions
  • Strategies for your bank’s opportunities/obstacles