2 9 T H A N N U A L

Balance Sheet Management

CONFERENCEJune 3-4, 2013

Marriott Long Wharf • Boston, Massachusetts

EARNUP TO

13 CPECREDITS!

Industry margins continue to besqueezed by economic turmoil,political question marks,regulatory expansion and anultra-competitive marketplace.Gain a competitive advantage atthis year’s DCG Balance SheetManagement Conference byattending sessions on:• The outlook for Enterprise

Risk Management (ERM)• Loan generation through

“non-traditional” channels• Stress testing as part of proactive

risk management• Investment analytics necessary

to outperform• Core deposit analysis,

requirements and best practicestrategic uses

• The role and use of derivativesfor community banks

• Peer group open forumThere will also be sessions onefficiency improvement throughcost control and compliancemanagement, the impact of allof the above on bank valuationstoday and going for ward, inaddition to core asset/liabilityeducation focused on liquidity,interest rate risk and strategicrisk/return trade-offs.

MONDAY, JUNE 3Back by popular demand isWilliam Isaac, former chairmanof the FDIC. Day one of theconference culminates with Mr.Isaac discussing his views onthe current status and futureoutlook of community banking.The Boston Harbor cruise willthen provide the setting for whatis sure to be an enjoyable cocktailreception followed by dinner backat the Marriott Long Wharf tointeract with colleagues, speakersand industry peers.

TUESDAY, JUNE 4Day two will begin with aneconomic forecast for the comingyear and its impact on balancesheet strategies. This year we arepleased to have Mark Vitner,Managing Director and SeniorEconomist at Wells Fargo, sharinghis thoughts and views.

Please join the DCG team andour expert guest speakers for twodays of informative, strategically-focused ideas.

RICHARD S. BERG is CEO and co-founderof Performance Trust Capital Partners, LLC. Richis a committed educator who brings unbridledpassion as a featured speaker at numerous banking,insurance and professional conferences. Addition -ally, he contributes his expertise as a frequentguest on CNBC, Bloomberg TV & Radio, MSNBC,Fox Business News, WLS, WTTW and Reuters andhas testified before the House Committee onFinancial Services in Washington, DC regardingthe issues in the ratings system.

JACK BROEREN is a Managing Director ofLoan Sales and Trading at PNC Capital Markets, Inc.Jack is the Senior Loan Trader and is responsiblefor all par and distressed loan trading for PNC. Inaddition, he oversees the settlement and fundingof all trades in the secondary loan market.

STEVE CASTLETON is the Director ofFinancial Institutions at Chatham FinancialCorp. He directs the accounting policy effortsand develops hedging strategies for Chatham’snearly 100 clients in the financial institutionsector, which range in size from $500 millionto $150 billion.

CRAIG DISMUKE is a Senior Vice Presidentand Chief Economic Strategist for Vining SparksIBG. Advising portfolio managers ranging fromsome of the largest foreign banks to some of thesmallest domestic financial institutions, heevaluates economic developments and fixedincome sector performance to identify risk andopportunities within the US market.

ROBERT DONAHUE is a Managing Directorat Municipal Market Advisors and is the primarypoint of contact for the Portfolio Credit Benchmarkproduct, a cost-effective enterprise risk-managementsolution to help banks navigate their new regulatoryresponsibilities under Dodd-Frank regardingmunicipal securities.

MATT FABIAN is a Managing Director atMunicipal Market Advisors and has been a muni -cipal analyst for 18 years. He is also the lead authorof MMA’s Weekly Outlook and a contributor to theAdvisor.

J. KEITH HUGHEY is Senior Consultant forJohn M. Floyd & Associates. He has more than 35years of consulting and managerial experience.His background includes assisting clients withstrategic planning, organizational health anddevelopment (human systems), managementsuccession, corporate governance and changemanagement, as well as facilitating productivityand performance improvement using his EMBoSProcess.™

WILLIAM M. ISAAC, a former FDIC Chairman,is the Global Head of FTI Consulting’s FinancialInstitutions group that provides regulatory coun -seling and risk management services, strategyconsulting, expert testimony and corporate gov -ernance consulting for financial institutions, lawfirms and governments. Mr. Isaac is also Chairmanof Fifth Third Bancorp and author of SenselessPanic: How Washington Failed America, an insideaccount of the banking and S&L crises of the

1980’s comparing that period to the financialcrisis of 2008 with recommended reforms toprevent future crises.

NICHOLAS W. LAZARES is Chairman andCEO of Admirals Bank in Boston, Massachusetts.Nick and a group of private investors acquired this regional retail bank in mid-2010 intending tocapitalize on the seismic dislocation in the financialservices industry. With fresh capital and a newmanagement team in place, Admirals has beenaggressively acquiring loan portfolios whilecontinuing to organically grow the bankingbusiness.

CLARK MAXWELL is a Managing Director atChatham Financial Corp. He leads the accountingadvisory team, which provides comprehensiveinterest rate, commodity and currency hedgingexpertise to over 1,000 financial institutions, REITs,structured finance companies and other corporateclients in the United States, Europe and Asia.

AMBER L. SALVI, CPA is a Managing Directorin the Derivative Products Group at PNC CapitalMarkets. As a marketing specialist, she concentrateson structuring and executing interest rate hedgingstrategies and structured products for PNC’s cor -porate and financial institution clients. Previously,she was a fixed income derivative trader for PNC’sCapital Markets Group. Before joining PNC, Amberwas an Audit Manager at a regional certifiedpublic accounting and business advisory firm.

JAN SOUTHERN is Relationship Manager atJohn M. Floyd & Associates. She has more than 40years of experience in the field of financial services,including 32 years with JMFA. Her areas of expertiseinclude project management, organizationalstructure effectiveness and staffing, informationtechnology, communications, business processreengineering, income optimization, expensecontrol disciplines and training.

MARK VITNER is a Managing Director andSenior Economist at Wells Fargo, responsible fortracking U.S. and regional economic trends. Basedin Charlotte, NC, he also writes for the company’sMonthly Economic Outlook report, the WeeklyEconomic & Financial Commentary and providesregular updates on housing markets, commercialreal estate, regional economies and inflation.

ROBERT L. WALTERS established The BankAdvisory Group in 1989 following 10 years atSheshunoff & Company where he formed andheaded their community bank merger & acqui -sitions and bank stock valuation advisory services.Bob has represented hundreds of buying andselling banks in brokering deals, developingnegotiating strategies and formulating pricingand transaction structure alternatives.

PETER G. WEINSTOCK is Co-Practice GroupLeader of the national firm of Hunton & Williams.The practice focuses on corporate and regulatoryrepresentation of small to some of the larger regionaland national financial institution franchises. He haswritten numerous banking articles and frequentlyspeaks on various banking topics.

HIGHLIGHTS GUEST SPEAKERS

Let’s Get Banking and America Going Again William M. Isaac, who led the FDIC during the banking and S&Lcrises of the 1980s, is an outspoken critic of the manner in which thegovernment handled the financial crisis of 2008-2009 and stronglyopposed the TARP legislation. He is also deeply concerned aboutcurrent fiscal, monetary and regulatory policies and the adverseeffect they are having on the economy. He will share his insights onthe state of the banking industry, the political leadership chasm inWashington, and what the future may hold in terms of fiscal,monetary and regulatory policies.

Compliance Management Systems,Third-Party Risk and UDAAP

Compliance management systems (CMS) are broken. As a result,good financial institutions with good teams are experiencing adverseregulatory ratings and the resulting consequences. Significantdifferences have developed related to the hot button issues of thevarious regulators. Behind it all, the CFPB is pushing its agenda. Inthis session Peter Weinstock will cover the points of emphasis foreach regulator, how to address the current compliance environment,UDAAP and the pillars of a quality CMS.

Maximizing Investment Returns in aNo Return Market

With yields persistently low and the yield curve relatively flat, thiscontinues to be a challenging environment for bankers trying tomaintain interest margins. Interest expense is low, but floored,while income continues to compress. One of the biggest challengesis maintaining yield in the investment portfolio. In this presentation,Craig Dismuke will look at how bankers are allocating their invest-ments in an effort to retain yield. He will also discuss specificinvestment products and strategies, along with associated risks.

Opportunities and Challenges for Community Banksand Impact on Bank Valuations

This presentation will be wide-ranging and will touch on threedifferent issues. First, what threats currently exist and how are theyimpacting (or likely to impact) community bank performance. Second,what opportunities exist and what should community banks focuson to mine those opportunities. Or in other words, what are higherperforming/faster growing community banks doing to distinguishthemselves from other banks? And finally, Robert Walters will alsotouch on the shareholder value implications of what is currentlygoing on, and what will likely be going on in community bankM&A activities/valuations over the coming year.

Managing Your Income Statement While Living in the Land of Oz

Financial institutions continue to suffer from declining revenues,poor levels of loan requests and the ever-increasing regulatoryburden. As the opportunities to generate fees from traditionally-offered services are reduced, the concern becomes how to maintaina level of income that allows you to offer the services your customersor members demand.

This presentation by Jan Southern will provide you with an overviewof strategies for increasing your revenues and containing expenseswhile keeping at the forefront the need to comply with the regulationsin place and while maintaining a high level of customer service.

ERM Outlook and TrendsThe new reality for risk managers and ALCO is integrated riskmanagement — that is evaluating potential risks on a forward-lookingholistic basis and developing tactical plans and strategies to turnthose potential risks into opportunities and success.

In this interactive session, we will share insightful ideas on howto effectively incorporate Enterprise Risk Management (ERM) intothe ALCO framework, highlight the potential impediments andchallenges that can undo your best laid plans, and provideparticipants with a clear understanding of how to transform acompliance-oriented ERM process into a strategic tool of ALCO.

The Success ParadoxIn Goldsmith and Reiter’s book, What Got You Here Won’t Get YouThere (Hyperion, 2007), the authors examine how old patterns,practices and habits that may have contributed to success at one levelcan very much get in the way of an individual or organization’sfuture effectiveness. We refer to that as “The Success Paradox.” Inthis practical program, Keith Hughey will explore why so many insupervisory, managerial and leadership positions are at risk of fallingvictim to their own success, why the leadership teachings of the past50 years have so often fallen on deaf ears, and what it takes to trulybecome a more effective leader — regardless of a person’s position inthe hierarchy.

Stress Testing: A Focus on Credit and Capital Stress testing risk areas is increasingly becoming the norm forfinancial institutions of all sizes. Given the interconnectivity of risksthat flow out of potential credit problems, stress testing loan portfoliosis gaining more attention. As more bankers explore doing so, manyfind themselves asking what is involved: How deep of a dive into loanlevel credit dynamics is required? What type of testing should beperformed? How significant of an investment in system infrastructureshould I expect to carry out the task? What information should beextracted from the exercise and, most importantly, what should abanker do with the results? This session will cover these topics andprovide insight to emerging expectations for credit stress testing.

Hedging Strategies (Including Deposit Hedging!) toProtect Against Rising Rates

Using a practical and easy-to-understand approach, Clark Maxwelland Steve Castleton of Chatham Financial will discuss how banks cantake advantage of this historically low interest rate environment toguard against rising rates, while profitably meeting customer demandfor long-term fixed rates. The session will focus on how to overcomethe traditional challenges of hedging deposit liabilities, as Chathamshares invaluable insights on how to structure that type of hedgingprogram to make both the economics and the hedge accountingwork. In addition, the session will highlight the key aspects ofhedging wholesale funding, the pros and cons of using forward-starting swaps (or caps) to reduce negative carry and how to profitablybuild a successful loan level (back-to-back) customer swap program,leveraging best practices developed through 10 years of implementingsuch programs at over 60 financial institutions.

CONFERENCE SESSIONS

Are You Afraid of Making Fixed-Rate CommercialLoans in the Current Low-Rate Environment?

As the very low rate environment persists, more borrowers look tolock in low-fixed rates for longer periods of time. This session willhelp you to grow your loan portfolio while avoiding “overloading”on long-term, fixed-rate commercial loans at the lowest rates in ageneration.

Amber Salvi of PNC will show how interest rate swaps can be usedto enable financial institutions to offer commercial loans that arefloating rate to the lender and fixed rate to the borrower. A keyelement of the presentation will be specific examples of howcommunity banks have overcome “cultural” roadblocks inimplementing this strategy.

Managing Municipal Credit Risk with ConfidenceIn 2010, “predictions” for municipal credit defaults gained momentumbased on declining tax revenues, mounting retirement expenses andincreasing operating costs. While some municipalities have, in fact,filed for bankruptcy, the magnitude has fallen far short of the “hundredsof billions” famously predicted. Still, the issues that prompted thenegative sentiment remain and have many bankers and regulatorsnervous on the municipal investment and lending fronts.

This session by Robert Donahue and Matt Fabian will provide attendeesa background on the issues surrounding municipal credit, an update onthe performance of the municipal bond market, thoughts on futureperformance and insights on factors that need to be monitored to meettoday’s regulatory expectations for managing municipal credit risk onyour balance sheet (pre- and post-purchase issues).

The Syndicated Loan Market — An Effective Way forFinancial Institutions to Obtain Funded Assets

Banks continue to struggle to find efficient and effective ways toobtain desired loan growth. This presentation by Jack Broeren andNick Lazares will discuss the leveraged loan market and how it canoffer an alternative investment option by providing fully funded,highly liquid term loans that seek to complement existing C&Ibusiness, while allowing you to use a risk-managed approach. It willcontain details on the leveraged loan market, including availableinformation and process for banks to enter this loan market.

2013 US Economic OutlookThe economic recovery to date has been sluggish compared torecoveries of the past, yet it is the only recovery we have to work with.GDP growth has been stuck in low gear at around two percent, and islikely to remain near that pace in 2013. Mark Vitner, ManagingDirector and Senior Economist at Wells Fargo Securities, LLC, willcover where we are in the economic recovery and where we are likelyto be headed. He will also touch on the ongoing budget battle, theprospects for a recovery in Europe and the outlook for Fed policy andinterest rates.

Investing in a Near 0% Interest Rate EnvironmentHow can a financial institution navigate the risks of ultra-low interestrates and the need to generate interest income? In this session, RichBerg will give practical advice that every financial institution needsto know.

The following four sessions are the equivalent of a full-day seminaron balance sheet management. They are intended to create a base forfirst-time attendees or as a refresher series for past attendees.

Risk/Return Trade-Offs inBalance Sheet Management

This session is an introduction to balance sheet manage-ment issues and risk/return trade-offs. Subjects discussedwill include: fundamental banking concepts in perspective,sources of balance sheet risk, discussions of value versusincome protection, regulatory perspectives on risk/returnand recent industry issues.

Measuring and ManagingInterest Rate Risk

Now after several years of managing against a low/flatyield curve, a growing number of banking institutionsare accepting more interest rate risk to help preserve netinterest margin levels. Few have been able to answer avery important and appropriate question: How much istoo much? This session will help you answer that veryimportant question by offering you the tools and know-how to construct an effective interest rate risk manage-ment process. We will discuss measurement techniques(net interest income simulation and economic value ofequity) and display a comprehensive approach to riskanalysis and decision making.

Measuring and Managing Liquidity Effective liquidity management can result in increasedincome and control over funding costs as well asimproved regulatory exams. Subjects discussed willinclude: liquidity measurement and managementapproaches, strategies to improve liquidity, marginal costof funds analysis, strategies for controlling funding costs,an overview of funding alternatives for communitybanks and requirements for a comprehensive liquiditymanagement process.

Developing & Documenting BSM StrategiesThis popular topic includes a separate two-hour “hands-on” session using case studies from actual banks. Thefirst portion of the two-part session will discuss strategyformulation and documentation, including such subjectsas setting strategy objectives, determining potentialrisk/return trade-offs and tracking results. Strategiesdiscussed will include lending, investments, depositpricing, alternative funding sources and the use of “off-balance sheet” hedging instruments. During the secondportion of the session, attendees will be provided theopportunity to work through two case studies in detail.This is a great opportunity for exchanging ideas andapproaches and analyzing “what if” scenarios.

CORE SESSIONS

INSTITUTION _____________________________________________________________________________________

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FIRST ATTENDEE

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Total Amount Enclosed: $

Mail with payment to: DARLING CONSULTING GROUP � 260 Merrimac Street � Newburyport, MA 01950

CONFERENCE REGISTRATION FEE for each attendee is: $1200 if payment is received byApril 12, 2013 ($1300 after April 12, 2013).

$1200 per person by April 12, 2013$1300 per person after April 12, 2013Please make checks payable to Darling Consulting Group, Inc.Fee includes continental breakfast, luncheons & conference materials,as well as Sunday/Monday nights’ social events.

Register online at DarlingConsulting.com or complete the form below.

� Please check here if you have special requirements (including dietary restrictions) in order to fullyparticipate in the DCG conference. DCG will contact you to discuss your specific needs.

Sunday & Monday Evening ReceptionsPlease join us for our pre-conference welcoming reception onSunday evening at Marriott Long Wharf. Following Monday’s session,please join us for a Boston Harbor cruise and lobster bake at theMarriott Long Wharf.

Please indicate the total number of people (including attendees registered above). Circle the number attending:

Sunday Evening Cocktail Reception at Marriott Long Wharf 0 1 2 3 46:00 – 10:00 p.m.

Monday Evening Boston Harbor Cruise 0 1 2 3 46:00 – 7:30 p.m.

Monday Evening Lobster Bake at Marriott Long Wharf 0 1 2 3 47:30 – 10:00 p.m.

DCG is the premier

ALM solutions provider in

the U.S., working with

over 500 financial

institutions nationwide.

For more than 30 years,

DCG’s distinctive mix

of education, consulting,

analytical services and

exceptional staff has

resulted in the highest

client satisfaction

rates in the industry.

�We welcome your

participation in the

29th Annual

Balance Sheet Management

Conference.

REGISTRATION

Darling Consulting Group, Inc. is registeredwith the National Association of State Boards ofAccountancy (NASBA) as a sponsor of continuingprofessional education on the National Registry ofCPE Sponsors. State boards of accountancy havefinal authority on the acceptance of individual

courses for CPE credit. Complaints regarding registered sponsorsmay be submitted to the National Registry of CPE Sponsors throughits website: www.learningmarket.org.

HOTEL RESERVATIONSFor hotel reservations, please contact the Marriott directly at617.227.0800 or visit their website www.marriott.com/boslw

When making your hotel reservation with the Marriott, please be sureto identify yourself as a “Darling Consulting Group ConferenceAttendee” to guarantee the preferred room rate. Rooms are availableon a first-come, first-served basis.

BOSTON MARRIOTT LONG WHARF296 State Street • Boston, MA 02109

All room reservations for this conference MUST be received nolater than May 10, 2013. After May 10, rooms will be on a space-available basis and the preferred rate may not apply. The rate of$289 per room per night is subject to 12.45% Massachusetts tax.

For additional information regarding this conference, contact us at978.463.0400 or email mmattheson@DarlingConsulting.com

260 Merrimac Street

Newburyport, MA 01950

PresortedStandardUS PostagePAIDNewburyportMA 01950Permit # 78

June 3-4, 2013Boston MarriottLong Wharf

Balance Sheet Management

CONFERENCE

WHO SHOULD ATTENDThis information-packed two-day conference offers timely insightinto managing your institution’s balance sheet in this challengingenvironment. Educational sessions and interactive forums, rangingfrom basic through advanced, are designed to generate comprehen-sive and lively discussion about the asset/liability funds managementand capital planning processes. Directors, CEOs, CFOs, senior man-agement and analysts will benefit from this popular Group-Liveconference. Attendees are eligible for up to 13 CPE credits. No pre-requisite and/or advanced preparation is required.

DATE AND LOCATION: JUNE 3-4, 2013Boston Marriott Long Wharf, 296 State Street, Boston, Massachusetts

This two-day conference takes place Monday 8:15 a.m. to Tuesday3:15 p.m. The Marriott Long Wharf is just one block from FaneuilHall/Quincy Market and the heart of Boston’s financial district(approximately 2 miles from Logan Airport). Please contact hotelfor directions 617.227.0800.

CANCELLATIONSConference registration fees are refundable only for cancellationsreceived in writing by May 17, 2013. No refunds will be made afterthis date. Prior to May 17th, refunds are subject to a $100 cancellationfee. Substitutions may be made at any time; please advise us inadvance. For more information regarding refund and/or programcancellation policies or other concerns, please contact our confer-ence staff at conference@ darlingconsulting.com or by calling978.463.0400.

CONFERENCE INFORMATION