Identifying Issues in Bank & Thrift Accounting
- Understanding a bank’s market risks and how they are mitigated
- Managing the balance sheet - asset and liability matching
- Fair-value vs. cost-based accounting
- Regulatory capital and reporting standards vs. GAAP accounting
Interest Rate Risk and Net Interest Earnings
- Amortized cost-accounting for interest revenue and expense
- Analysis of net interest income—looking at bank disclosures
- Analyzing maturity, repricing, and interest rate sensitivity disclosures
Credit Risk and Losses
- Accounting for loss contingencies (SFAS No. 5)
- application to heterogeneous and homogenous loan types
- discretion
- Accounting for loan impairments (SFAS Nos. 114 and 118)
- Accounting for transfers of troubled loans (SOP 03-3)
- Recent FASB decisions regarding loan commitments (SFAS No. 149) and guarantees (FIN 45)
An Analyst’s Look at the Numbers
Presenter to be announced
- This session presents the sell-side research analyst’s perspective on how to comb through complicated financial data in order to identify financial stability or financial weakness within a bank or thrift. Participants will learn how different accounting treatments affect key performance indicators and where management has discretion and latitude in reporting their financial results.
Day One concludes at approximately 5:30 p.m.
Day Two
Bank and Thrift session begins at 8:30 a.m. and concludes at 12:30 p.m.
Insurance registration opens at 12:30 p.m. Insurance session begins at 1:30 p.m.
Fair Value Accounting for Financial Instruments: Disclosures and Investment Securities
- Fair value disclosures for all financial instruments (SFAS No. 107)
- estimating unrealized gains and losses
- Fair values of investment securities (SFAS No. 115)
- implications of trading vs. available for sale vs. held to maturity designations
- assessing gains trading
- other-than-termporary impairments (FSP FAS 115-1, FAS 124-1)
- Accounting treatment for mortgage and other servicing rights under FAS 156 amd FAS 159
Derivatives and Hedging
- Accounting for derivatives and hedging (SFAS Nos. 133, 138, and 149)
- Analyzing how firms use derivatives to modify their market and nonmarket risks
Bank and Thrift session concludes at 12:45 p.m.
Insurance session begins at 1:30 p.m.
Fundamentals of Insurance Accounting and the Analysis of Insurers
- Discussion of property & casualty and life/health products and investment risks
- Policy tail & duration
- Reinsurance
- Main accounting standards (FAS 60, FAS 97, FAS 113, SOP 03-1)
- Statutory accounting principles
Day Two concludes at approximately 5:30 p.m.
Day Three
Day Three begins at 8:30 a.m.
An Analyst’s Look at the Numbers
Mr. Eric Berg, CPA, CFA, Managing Director and Senior Research Analyst
LEHMAN BROTHERS, INC.
- This session presents the sell-side research analyst’s perspective on how to comb through complicated financial data in order to identify financial stability or financial weakness within an insurance underwriter. Participants will learn how different accounting treatments affect key performance indicators and how adjustments can be made to manipulate these figures.
Property & Casualty Loss Reserves
- Accounting for loss reserves and analysis of the loss-reserve triangle
- Redundancies and deficiencies
- Calendar year vs. accident year
- Analysis of loss ratios & profitability
- Effects of finite reinsurance on loss ratios and profitability
Day Three concludes at approximately 1 p.m..
Free Bonus Session
Following the seminar, participants will have the opportunity to explore SNL Financial’s data products in a hands-on environment at SNL’s downtown New York office. Led by SNL product specialists, participants can gain experience on getting more out of SNL's major financial data products: SNL Interactive (SNLi) and SNLxl, the web-based Excel add-In.
