31ST Annual BALANCE SHEET MANAGEMENT

CONFERENCE

June 1-2, 2015 • Marriott Long Wharf • Boston, MA

Capital Strategies for Community BanksWhile community banks understand the importance ofdeveloping capital plans, most wrestle with developing theright capital solution that best meets their needs. Josh Siegelfrom StoneCastle Partners will bring clarity to the various capitalalternatives available to community banks. He will provide anoverview of the new capital rules and related implications,discuss tier-1 vs. tier-2 capital alternatives and address strategiesfor mutual institutions. Josh will also explain what investors arelooking for, and discuss the relative cost-benefit dynamics ofthe capital choices available to community banks.

Comparing the Alternatives (Cash vs. Swaps vs. Caps)As the inevitable tightening of short-term interest rates getsnearer, it’s understandable that everyone from Board membersto investors to regulators wants to know how your institution ispreparing to deal with higher rates. In this session, Bob Newmanand Dave Sweeney will walk through the array of productsavailable to extend liabilities, including cash market transactions(FHLB advances, brokered CDs) and derivative strategies (swaps,caps) and will discuss how to evaluate which options make themost sense for your institution.

Beyond Traditional InvestmentsThe extended low interest rate environment has influencedmany institutions to explore alternative, nontraditional fixedincome securitized products in order to enhance portfolio yields and their institutional performance. But which of thesenontraditional products can deliver a higher yield without adisruption to investment policy parameters and opening aPandora’s Box of operational, regulatory, credit, financial andinterest rate risk? In this session, Tory Houriet will explore thepros and cons of including a range of alternative, nontraditionalproducts to the investment portfolio, including an overview ofthe framework that is essential for making them pay off withintoday’s banking environment.

Deposit Intelligence in a World of Uncertainty In the next rising rate cycle your institution will experiencedeposit mix shifts and disintermediation—resulting in reducedlevels of net interest income, increased interest rate risk and lowerlevels of liquidity. Quantifying these risks isn’t merely an assetliability management best practice—it’s common sense. ALCOsneed to think beyond simply justifying decay, surge andsensitivity betas; they must seek more from their analyses andassumption validation efforts. With the use of state-of-the-artdeposit intelligence tools, this session presented by DCGrepresentatives will guide you through practical ways to utilizereadily available data to better understand your deposit base.

What Is the NIST Cybersecurity Framework andWhy Does It Matter to You?

This presentation by Alex Hernandez will provide a high levelreview of the NIST Cybersecurity Framework, and how it isimpacting the banking industry (banks and regulators). It willexplain how integrating the framework can affect currentinformation security, business continuity and vendor manage-ment policies. Discussions will include a deeper dive into theelements of a bank cybersecurity program and methods fordemonstrating compliance, including governance, threatawareness and collaboration, third party service providers,vendor risk management and incident response.

Secondary Market for Whole LoansNow that credit quality has improved, and competition for CREand C&I loans has heated up, what opportunities can communitybanks find in the secondary market? How can banks augmentloan production, or take advantage of a robust market to sellexcess production or improve key balance sheet componentsthrough secondary market transactions? Bill Looney, Presidentof US Loan Sales for DebtX, will discuss the current secondarymarket for CRE and C&I whole loans, highlighting opportunitiesand potential pitfalls for community banks.

M & A from a Buyers & Sellers PerspectiveThis session, presented by Fred D. Price of Sandler O’Neill, willfocus on both sides of the current M&A environment by lookingat buyers’ concerns of pricing, market reception and integrationas well as sellers’ concerns of pricing, process and commu -nication. What makes deals come together and what makesthem fall apart? The regulatory process will also be discussedas it overrides decisions by both sides of a transaction. Thequantitative measures used in M&A will be discussed alongsidethe equally important qualitative concerns.

Investment Portfolio Management and StrategicConsiderations During Unprecedented Times

A disciplined portfolio management process is challengingenough on its own, but with increased regulatory challengesand an uncertain rate environment, the job is becoming evenharder. Larry Miele will explore the current environment,examine products and strategies that have been working well and some that have not, and discuss objective assetselection that is suitable for your interest rate risk profile.Attendees will also learn to recalibrate their thought processto ensure that they are focusing on what matters most whenmaking investment decisions.

CONFERENCE SESSIONSKEYNOTE ADDRESS

Monday will feature a general session with Steven S.Little, a much sought after expert and best-selling authoron the subject of business growth and the “future ofopportunity.” As a former president of three fast-growthcompanies and an Inc. Magazine consultant, he nowadvises numerous leaders of growing organizations and communities each year.

ECONOMIC UPDATELeading off Tuesday’s program will be a general sessionconducted by Dr. Chris Kuehl, Managing Director ofArmada Corporate Intelligence. He provides economicforecasts and strategic guidance for a wide variety ofcorporate clients around the world. He is the ChiefEconomist for several national and internationalorganizations.

All Roads Lead to the Capital PlanCapital planning is no longer an exercise reserved for troubledinstitutions or growth-oriented companies. It has become thefoundation for effective enterprise risk management wherebyinterest rate risk, liquidity risk, credit risk and operational riskcan be simultaneously evaluated under normal operatingconditions, as well as under stress. In this session presented byDCG representatives, participants will gain insight into howadoption of this capital-oriented risk management framework issupporting true holistic risk assessment, dynamic capital/contingency planning and providing strategic advantage toinstitutions over competitors that think they can continue tosurvive on traditional profit planning and budget exercises.

Having the Title Doesn’t Mean You’re a LeaderIn this fast paced session, Keith Hughey will discuss what itmeans and what it takes to be an effective leader and not just amanager (since one leads people with all of their skills, abilities,experience, personal foibles and ambitions while the role moreassociated with manager is about managing things includinggauging and managing risks and optimizing results within certainconstraints). Both are needed, but the knowledge and skill set tobe effective at both differ substantially.

Residential Mortgages: A View From WashingtonPhillip Millman from the Federal Housing Finance Agency (FHFA)will provide a Washington perspective on QRM and the implicationsfor the residential lending market: origination, servicing andsecuritization. As part of this session, Phillip will provide insighton the overall thought process and goals surrounding QRM inparticular and the secondary mortgage market in general.

What Does Your Cell Phone Look Like…A Step By Step Guide to Organic Growth

Banking is a competitive business. Changes are occurring all the time. The most successful banking institutions are constantlyasking the question, “How do we grow and evolve?” Much likethe cell phones of old, there is a growing gap between theaverage and the best community banks. The constant isprofitable growth and evolution of the business. Matt Johnstonwill provide a specific and actionable plan to drive culturalchange in your bank, lead organic growth opportunities andposition your bank for the future.

Residential Mortgage Strategy: Opportunities & RealitiesIn this session, Peter Taglia will provide a timely look into thecurrent and prospective residential lending marketplace. Hewill discuss a comprehensive range of business issues impactingresidential strategy, including: the realities of an increasinglycompliance-influenced market, observations regarding portfoliovs. secondary market lending and a view of the secondarymarket from both buyer and seller perspectives. He will alsoprovide an overview of the steps community banks can take to assess the utility of managing existing loan portfolios withwhole loan sales and/or securitization.

CORESESSIONS

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

Risk/Return Trade-Offs in Balance Sheet ManagementThis 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 Managing Interest Rate Risk Now after several years of managing against a low/flatyield curve, a growing number of banking institutions areaccepting 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, greater control over funding costs and improvedregulatory exams. Subjects discussed will include:liquidity measurement and management approaches,strategies to improve liquidity, marginal cost of fundsanalysis, strategies for controlling funding costs, anoverview of funding alternatives for community banksand 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.

EARNUP TO

13 CPECREDITS!

HIGHLIGHTS GUEST SPEAKERSALEX HERNANDEZ is VP of Customer

Solutions for Praesidio Inc., a provider offinancial services specific to cybersecuritysolutions. Alex brings over 20 years ofsecurity experience in providing securitysolutions and expertise to some of thelargest companies in the world.

TORY HOURIET, CPA, is a foundingPrincipal and Head of Analytical Researchat Fixed Income Capital Partners (FICP).He has more than 30 years of experiencetrading fixed income instruments andworks extensively researching new andexisting product offerings, building ana-lytic platforms and educating clients onthe benefits of optimal risk and rewardmeasurement of investment options.

J. KEITH HUGHEY is a Senior Consultantwith John M. Floyd & Associates, Inc. Aslead consultant for JMFA’s Business Strate-gies Practice, Keith’s focus includes advisingclients on strategic planning, corporategovernance, management succession,leadership and organizational health/human systems.

MATT JOHNSTON is CEO of Red RockStrategic Partners and Red Rock Advisorsadvising wealth management organiza-tions, banks and RIA firms on strategiesto drive top line revenue growth and maxi-mize business opportunities by addressingexecution challenges, as well as acceleratingprofitable business growth, protecting thebusiness, retaining talent and effectivelyplanning for business transitions andsuccession.

WILLIAM F. LOONEY III is President ofUS Loan Sales at DebtX. Under Bill’s salesleadership, DebtX has grown from a start-upto the nation’s largest loan sale company.Prior to joining DebtX, Bill was a foundingpartner in the Boston law firm of Looney,Cohen, Reagan & Aisenberg LLP, whichspecializes in representing banks andinvestment banks in commercial loan salesand other commercial transactions.

LARRY MIELE serves as Managing Director -Investments with Wells Fargo Advisors, LLC.With over two decades of experience as aninvestment professional in the institutionalfixed income sector working with creditunions and other institutional clients, Larryassists clients with asset-liability issues andhelps keep them current on trends thatinfluence their balance sheets.

BOB NEWMAN is Managing Director ofFinancial Institutions at Chatham Financial.Prior to joining Chatham, he worked for20 years in the banking industry, mostrecently as a Director at SunTrust CapitalMarkets, Inc., where he specialized indesigning interest rate, currency andequity hedging solutions for the bank’scorporate and wealth management clients.

FRED D. PRICE, Managing Principal, is aFounding Principal of Sandler O’Neill &Partners, L.P., and a member of the firm’sthree-person Executive Committee. Fredmanages the firm’s capital market activitiesfrom marketing to transaction execution.He also oversees the management of thefirm’s client support services and otherbusiness affairs.

JOSH SIEGEL is Managing Partner andChief Executive Officer of StoneCastlePartners. He is widely regarded as a leadingexpert and investor in the banking indus-try and is often quoted in financial media.Prior to co-founding StoneCastle, Joshwas a co-founder and Vice President ofthe Global Portfolio Solutions Group atSalomon Brothers/Citigroup Global Markets.

DAVID SWEENEY is a Managing Director leading Chatham Financial’s Balance SheetStrategies and Chatham Investment Advi-sors. Prior to joining Chatham, Dave spent14 years with Ernst & Young serving finan-cial services clients across the US andEurope and served as Treasurer and ChiefInvestment Officer at two communitybanks with assets between $3 billion and$5 billion.

PETER J. TAGLIA, CPA, CGMA, CMB,is Senior Vice President in the CapitalAssets Group of FTN Financial, a subsidiaryof First Tennessee Bank, concentrating onloan sale/securitization strategies, assetbacked structuring and portfolio analysis.He is a Past President of the Illinois Mort-gage Bankers Association, a frequentspeaker for the MBA (Faculty Fellow/MasterFaculty) and a prior senior faculty memberfor the Freddie Mac School of MortgageFinance.

Focus and Persistence. These are the keys forovercoming the relentless pressures of a sustainedlow rate and highly competitive environment, whilepreparing simultaneously for a potential rise ininterest rates. Tight credit spreads, core deposituncertainties, loan growth challenges, marginpressure and increasing compliance costs are asampling of the resulting, very real current industrychallenges. They also set the stage for thecomprehensive strategy discussion that will betaking place at our 31st Annual DCG Balance SheetManagement Conference. This year’s sessionsinclude:

● Using Data & Technology for DepositIntelligence

● Capital Raising Alternatives & Planning

● Investment Portfolio Strategy

● Commercial & Residential Loan Strategy

● Role of the Secondary Loan Market

● Strategic Use of Derivatives

● M&A Perspective (sellers & buyers)

● Cybersecurity

There will also be presentations on effectiveleadership and using cultural change to drivecurrent and future growth, as well as interactive peer group breakout sessions. As always, there willbe a core asset/liability education track focused onliquidity, interest rate risk, risk/return trade-offs andstrategy development (with case studies).

MONDAY, JUNE 1Day one of the conference finishes with a keynotegeneral session led by Steven S. Little, a businessgrowth expert.

A Boston Harbor cruise will provide a unique settingfor what is sure to be an enjoyable cocktail receptionfollowed by an old-fashioned clambake dinner back atthe Marriott Long Wharf to interact with colleagues,speakers and peers.

TUESDAY, JUNE 2Day two will begin with an economic update andforecast conducted by Dr. Chris Kuehl, ManagingDirector of Armada Corporate Intelligence.

Please join the DCG team and ourexpert guest speakers for two days ofinformative strategically focusedinteraction and discussion.

REGISTER BYAPRIL 10AND SAVE!

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CONFERENCE MATERIALS

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□ Binder and Electronic Materials □ Electronic Materials Only(NOTE: No binders will be available on-site at the conference)

Total Amount Enclosed: $

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

CONFERENCE REGISTRATION FEE for each attendee is $1275 if payment is received by April 10, 2015($1375 after April 10, 2015).

$1275 per person by April 10, 2015$1375 per person after April 10, 2015Please 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 on Sunday evening at theMarriott Long Wharf. Following Monday’s session, please join us for a Boston Harborcruise and lobster bake at the Marriott Long Wharf.

Please indicate the total number of people attending (including registered attendees above and guests). 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

31st Annual

Balance Sheet Management

Conference.

REGISTRATION

Darling Consulting Group, Inc. is registered with theNational Association of State Boards of Accountancy(NASBA) as a sponsor of continuing professionaleducation on the National Registry of CPE Sponsors.State boards of accountancy have final authority onthe acceptance of individual courses for CPE credit.

Complaints regarding registered sponsors may be submitted to the NationalRegistry of CPE Sponsors through its website: www.learningmarket.org.

HOTEL RESERVATIONSFor hotel reservations, please contact the Marriott directly at 617.227.0800and use room rate group code: DLCDLCA. You can also visit their website atwww.marriott.com/boslw

When making your hotel reservation with the Marriott, please be sure toidentify yourself as a “Darling Consulting Group Conference Attendee” toguarantee the preferred room rate. Rooms are available on a first-come,first-served basis.

BOSTON MARRIOTT LONG WHARF296 State Street • Boston, MA 02109

All room reservations for this conference MUST be received no later thanMay 8, 2015. After May 8th, rooms will be on a space-available basis andthe preferred rate may not apply. The rate of $305 per room per night issubject to 12.45% Massachusetts tax.

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

260 Merrimac StreetNewburyport, MA 01950

June 1-2, 2015Boston Marriott • Long Wharf

WHO SHOULD ATTENDThis information-packed two-day conference offers timely insight into managing your institution’s balance sheet in this challenging environment.Educational sessions and interactive forums, ranging from basic throughadvanced, are designed to generate comprehensive and lively discussionabout the asset/liability funds management and capital planning processes.Directors, CEOs, CFOs, senior management and analysts will benefit fromthis popular Group-Live conference. Attendees are eligible for up to 13 CPEcredits. No pre-requisite and/or advanced preparation is required.

DATE AND LOCATION: JUNE 1-2, 2015Boston Marriott Long Wharf, 296 State Street, Boston, Massachusetts

This two-day conference takes place Monday 8:15 a.m. to Tuesday 3:15 p.m.The Marriott Long Wharf is just one block from Faneuil Hall/Quincy Marketand the heart of Boston’s financial district (approximately 2 miles fromLogan Airport). Please contact hotel for directions 617.227.0800.

CANCELLATIONSConference registration fees are refundable only for cancellations receivedin writing by May 15, 2015. No refunds will be made after this date. Prior toMay 15, refunds are subject to a $100 cancellation fee. Substitutions may bemade at any time; please advise us in advance. For more information regard-ing refund and/or program cancellation policies or other concerns, pleasecontact our conference staff at conference@darlingconsulting.com or by calling 978.463.0400.

CONFERENCE INFORMATION

EARNUP TO

13 CPECREDITS!