Note: The next session of Analyst Training in the Banks Sector is scheduled for June 22-24, 2011. The material below is from the most recent (August 2010) session. To be on the mailing list for this program, please click here.

 

Day One

Registration with continental breakfast opens at 8:00 a.m. Program begins at 9:00 a.m.

Introduction to Bank Analysis

Avi Barak, Managing Director - Equity Research, Sandler O'Neill & Partners

·	Overview of the bank business model
·	Identifying sources of revenue and risk
·	Interpreting and calculating key performance and financial strength metrics, including efficiency ratios, net interest margin, asset quality, capital adequacy and reserve coverage ratios

Assessing Interest Rate Risk

Dr. William McGuire, President and CEO, McGuire Performance Solutions

·	The fundamental concepts of balance sheet behavior and asset-liability management
·	Floating vs. fixed rate exposures
·	Interest rate risk patterns
·	Common methods financial institutions use to measure and manage interest rate sensitivity
·	Analyzing bank and thrift interest rate risk data to predict changes in income and equity

Lunch

Advanced Topics in Interest Rate Risk

Dr. William McGuire, President and CEO, McGuire Performance Solutions

·	Significant interest rate risk influences, including embedded options and core deposits
·	Strategies for hedging balance sheet risk
·	Using interest rate risk disclosures to assess an institution's earnings outlook quality

Advanced Bank and Thrift Analysis: Earnings Quality and Risk

Jason B. Polun, Equity Research Analyst, U.S. Large Cap Banks, T. Rowe Price

·	Sources of data critical to analyzing a bank's reported earnings and underlying economic health; deciphering quarterly and annual results
·	Assessing earnings quality and capacity: recurring and core earnings
·	Techniques for normalizing earnings and capital structure among companies
·	Understanding capital structure and its impact on earnings and return metrics
·	Case study: Comparing banks

Bank Analysis from the Regulatory Perspective

Deborah Prutzman, Chief Executive Officer, The Regulatory Fundamentals Group

William B. Bowden, Jr., Senior Consultant, The Regulatory Fundamentals Group, former General Counsel, Office of the Comptroller of the Currency.

 

Program ends for the day at approximately 5:30 p.m. Cocktail reception follows.

 

Day Two

Continental breakfast opens at 7:30 a.m. Program begins at 8:30 a.m.

Evaluating Macroeconomic Trends

Jeff K. Davis, CFA, Managing Director, Guggenheim Partners, LLC

·	How key macroeconomic conditions influence bank performance and stock valuation
·	Understanding previous cycles and their application to current conditions
·	Understanding leading and lagging macroeconomic indicators
·	Incorporating macroeconomics: How bank management and investors can maximize returns in varied operating environments

Industry Perspective

O.R. "Ed" Barham Jr., President & CEO, StellarOne Corporation

Lunch

Luncheon Address

Jennifer J. Burns, Senior Vice President, Supervision, Regulation and Credit, Federal Reserve Bank of Richmond

Accessing and Managing Capital

James C. Mabry, Managing Director, Keefe, Bruyette & Woods

·	Types of capital available to banks
·	Advantages and drawbacks of various capital-raising techniques
·	Effects of capital-raising techniques on the balance sheet and income statement

Introduction to Bank Valuation (Part 1)

Jon C. Walls, Principal, Principle Management Consulting

·	Fundamental techniques used in valuing banks and thrifts: peer comparables, deal comparables, discounted dividend and discounted cash flow analyses
·	Capital Asset Pricing Model and cost of capital
·	Key drivers of valuation
·	The relative merits of various valuation techniques

Introduction to Bank Valuation (Part 2)

Ken Segal, SVP and Senior Vice President, Howe Barnes Hoeffer & Arnett

John Schramm, Managing Director, Howe Barnes Hoeffer & Arnett

·	Techniques for evaluating a potential bank merger or acquisition
·	The potential impact of synergies
·	Identifying and valuing intangibles
·	Economic and accounting accretion/dilution
·	Current valuation trends
·	Valuing the assets on a bank balance sheet

Program ends for the day at approximately 5:30 p.m.

Evening activities include your choice of a tour of Thomas Jefferson's home Monticello or a vineyard tour and tasting.

 

Day Three

Continental breakfast opens at 7:30 a.m. Program begins at 8:30 a.m.

Bank Credit Analysis

Gennie Pilotta-Medici, CFA, Vice President-Enterprise Risk Management, State Street Bank & Trust

·	Key metrics used to assess a bank's credit quality
·	Earnings power, embedded risk, funding and liquidity, capital adequacy
·	Assessing risks: Credit, interest rate, market, operational
·	Differing views between management, regulators, creditors and shareholders
·	The fixed-income investor's perspective

Bank Valuation: A Case Study

Dr. Yiorgos Allayannis, Associate Professor of Administration, Darden School of Business, University of Virginia

·	A hands-on analysis and valuation of a publicly-traded bank as a potential investment or acquisition
·	Employs the metrics and methods presented in preceding sessions

Bank Program concludes at approximately 12:30 p.m.

 

 

For training programs in the Insurance sector, please see our Insurance home page: www.snlcenter.com/insurance.asp.