2007 San Francisco Region Directors' and Officers' College

Partners Committed to Banking Excellence

The FDIC, in cooperation with the state banking agencies and trade associations in the San Francisco Region, is pleased to announce the fifth installment of our popular Directors' College program. This year, bank officers are also invited to attend and the Program has been renamed Directors' and Officers' College. Additionally, breakout sessions have been added to the Program to allow directors and officers to choose topics that are most relevant to them. We will offer the Colleges in all eleven states in the San Francisco Region as well as the territory of Guam. You may attend any of the Colleges held in the Region, and are not limited to the session in your immediate area.

The Program is an interactive, one-day seminar which provides ongoing education on current topics of interest and various elements of bank supervision. Highlights of the day include a regulatory panel discussion, three breakout sessions, a luncheon presentation on local economic and banking conditions, and opportunities to participate in hands-on exercises and group discussions.

You will have the opportunity to attend three of the following breakout sessions (click on the link to see a detailed description):

• Bank Regulations - Playing by the Book
• Bank Secrecy Act/Anti-Money Laundering - Hot Topics
• CAMELS - Getting Over the Hump
• Commercial Real Estate
• Compliance - Hot Topics
• Corporate Governance – Exercising Your Duty of Care
• FDIC Resources
• Industrial Loan Companies
• Interest Rate Risk - A Complex Subject Made Simple
• Lending - The Basics
• Lending - Beyond the Basics
• New Director Survival Kit
• Suspicious Activity Reports - To File or Not to File

To attend, you must register in advance as space is limited. Click on the Dates and Locations link and select the date and location that is convenient for you. Registration is through the sponsoring state trade association listed for each College. The enrollment deadline for each location is ten calendar days prior to the event date. We hope to see you at one of our Colleges. If you have any questions, please contact Field Supervisor Bob McGibbon at (310) 670-0433, ext. 4211.

Agenda

Continuing Professional Education (CPE) information

BREAKOUT SESSION DESCRIPTIONS

Bank Regulations - Playing by the Book

Following the rules is easy, but first you have to know what the rules are. This session helps to direct you through the myriad of regulations that your bank operates under and provides useful information to help you comply with regulations governing insider and affiliate transactions, as well as, real estate appraisal requirements.

Target Audience: Directors and Executive Officers

Bank Secrecy Act/Anti-Money Laundering (BSA/AML) - Hot Topics

The Bank Secrecy Act and Anti-Money Laundering regulations remain regulatory hot topics. This session addresses frequent violations or contraventions of the regulations and frequently asked questions. The session will address risk assessments, training, money services business oversight, and OFAC compliance. There will be an open forum for attendees to share best practices.

Target Audience: Directors, Executive Officers, BSA Officers, and BSA Staff

CAMELS – Getting Over the Hump

CAMELS don't just live in the desert..."CAMELS" is the regulatory acronym used to assign risk-ratings to your institution based on examination findings. This session provides an introductory discussion of each of the CAMELS component ratings (capital, asset quality, earnings, management, liquidity, and sensitivity to market risk), as well as the composite rating. You will learn how each component rating is determined and get a chance to assign ratings to the case study bank.

Target Audience: New Directors

Commercial Real Estate

Commercial real estate concentrations of credit have grown to record levels, with some of the highest levels found in banks in the Western United States. This session covers the recently issued interagency guidance, offering practical tools for measuring, monitoring, and controlling commercial real estate risk exposure.

Target Audience: Directors and Executive Officers

Compliance - Hot Topics

Financial institutions operate in a dynamic environment influenced by industry consolidation, convergence of financial services, emerging technology, and market globalization. To remain profitable in such an environment, financial institutions must develop and maintain a sound compliance management system that is integrated into the overall risk management strategy of the institution. Discover how to incorporate the elements of an effective compliance management system into the overall risk management strategy of the institution.

Target Audience: Directors, Executive Officers, Compliance Officers

Corporate Governance - Exercising Your Duty of Care

Risk Management starts in the board room. This session explores the three pillars of corporate governance and the directors' role in building a strong internal control structure. Bank failures are often due to ineffective controls that could have been identified and addressed with good corporate governance techniques. You will learn about red flags that notify you if your institution is at risk and we will introduce you to some management tools that can enhance your supervision of the bank. PLEASE NOTE: This session is a repeat of the 2006 presentation. Sign up if you missed the session last year or you enjoyed it so much that you wish to experience it again.

Target Audience: New Directors

FDIC Resources

The FDIC Division of Insurance and Research will show you how to access an abundance of banking data, analyses, and research information; how to develop a custom peer analysis to monitor the performance of your bank and those of your competitors; how to track economic conditions and trends locally, state-wide, or nationally. Our analysts explain how to easily gather the statistics and research necessary for you to compete. This session will introduce the many online tools and free resources available at www.fdic.gov and other websites. The session will also discuss deposit insurance pricing and how bank ratings and capital levels impact that pricing.

Target Audience: Executive Officers

Industrial Loan Companies

Industrial loan companies face unique challenges and opportunities. We will discuss hot topics, current events, and regulatory issues during this informative and interactive session. PLEASE NOTE: This session will be offered only at the Salt Lake City College.

Target Audience: Directors and Executive Officers of ILCs

Interest Rate Risk - A Complex Subject Made Simple

This session takes one of the most complex banking topics and makes it easy to understand and evaluate. It addresses sources of interest rate risk and why it is important to community banks. It will include information on risk measurement systems, including risk models and key assumptions. Additionally, this session covers director responsibilities for establishing interest rate risk guidelines and oversight; including best practices, pitfalls, and red flags.

Target Audience: Directors and Executive Officers

Lending - The Basics

Can you name the five P's of credit? If not, report to this session immediately. Knowledge of the five P's is necessary for loan analysis and review. This session addresses the importance of the lending function, the director's role in loan approval and monitoring, and the importance of comprehensive loan policies.

Target Audience: New Directors

Lending - Beyond the Basics

This session will answer questions regarding the purpose and proper function of a loan review system, components of an effective credit grading system, and how they relate to the loan loss reserve analysis. It will also provide an update on the newly revised and issued "Interagency Policy Statement on the Allowance for Loan and Lease Losses".

Target Audience: Directors and Executive Officers

New Director Survival Kit

Now that your new bank is open, what comes next? This session offers useful information about regulatory examinations and oversight during the first three years of operation. Learn about board committee structures and how they should operate. Gain practical tips for conducting effective meetings, keeping adequate minutes, and more. We will also provide some useful web-site information for directors.

Target Audience: New Directors

Suspicious Activity Reports (SAR) - To File or Not to File

Are your internal control systems effective in identifying suspicious activity? Do you wonder whether to file a SAR or not? This interactive session utilizes case studies to help identify situations where SAR filings are appropriate, or not. This session also explores effective monitoring methods to identify suspicious activity.

Target Audience: Bank Secrecy Act Officers