Chapter Co-Sponsors Joint CFO Conference
Informative Half-Day Conference with N.J. Bankers Association
Members of the FMS NY-NJ Chapter recently joined with Members of the New Jersey Bankers Association for a Half-Day CFO Conference featuring a variety of timely topics for the financial executive. The Chapter co-sponsored the event with the New Jersey Bankers Association on November 15, 2013. The event was held at the Renaissance Woodbridge Hotel in Iselin, NJ. The venue was chosen for the convenience of Members located in the Central New Jersey region. The Chapter recently held a regular Dinner Meeting at this location and has scheduled a Dinner Meeting to be held at the Renaissance on January 29, 2014.
James Hughes, economist from Rutgers University, opened the program with The New Economic and Demographic Reality..
Barry Pelagatti, Partner from BDO, presented an Accounting and Auditing Update.

The program featured expert presentations on a variety of important topics. Dennis Spinelli, Senior Director, BDO welcomed the large contingent of financial executives in attendance while providing opening remarks and a review of the agenda.

The program began with  The New Economic and Demographic Reality provided by James Hughes, Ph.D., an economist from Rutgers University. James reviewed the two significant periods of economic expansion experienced during this century as well as the “Great” Recession experienced from December 2007 through June 2009. James reviewed the improvement in domestic private sector employment during the current period of economic recovery experienced since June 2009. He later identified the major information technology advances that have been made since the introduction of the personal computer in 1981 and the resulting advances in productivity as well as the significant changes in demographics.

Barry Pelagatti, Partner, BDO, presented an extensive and informative Accounting and Tax Update. Barry discussed the implications of the FASB regarding the Current Expected Credit Loss pronouncement or “CECL” model.

He described the key elements of the CECL pronouncement, how it would apply primarily to financial assets, how the disclosures should be made and when the changes will become effective. He further discussed the implications regarding loan impairment and the factors that financial executives should consider for successful implementation. Barry emphasized the possible adverse impact on an institution’s capital position. He concluded by underscoring the importance of establishing and maintaining sound regulatory communication.

Following the coffee break, an expert Regulatory Panel presented Members with valuable perspectives on contemporary regulatory matters. Melissa Schofield, Assistant Deputy Commissioner, Office of the Controller of the Currency, stressed the renewed importance of an institution’s regulatory compliance, the importance of implementing a comprehensive risk management program as well as sound lending guidelines.

Gregory Wyka, Assistant Regional Director, FDIC, discussed the performance of due diligence by the Board of Directors for new lines of business, the need to develop corporate governance sufficient to manage risk, carefully review internal audit procedures and the development of operational risk for third-party vendors. Richard Polliner, Chief Examiner, New Jersey Dept. of Banking and Insurance emphasized the increased importance placed on improving asset quality and reiterated the importance of establishing   broad risk management guidelines. The panel concluded by answering a number of key regulatory questions from the financial managers in attendance.

New Standards for Interest Rate Risk Reporting was the topic of the final session presented by Michael Fasone of Bank Reporting Sciences. Michael noted that interest rate risk is a very hot topic due to the increased emphasis on risk management. He also noted that interest rate risk is becoming increasingly complex which has raised the expectations placed on community bankers to adequately measure and report the risk inherent at their institutions. Michael reviewed the “New Standards” of interest rate risk reporting and recommended the techniques that financial executives should consider in order to implement a comprehensive risk management program.

Topics and Speakers

The New Economic and
Demographic Reality

James Hughes FMS Photo
James Hughes, Ph.D.
Dean
Rutgers University
848 932-2828

jwhughes@rutgers.edu
policy.rutgers.edu/
faculty/hughes/


Slide Presentation


Accounting and Auditing Update

Barry Pelagatti FMS Photo
Barry Pelagatti
Partner, Assurance

BDO
215 241-8967

bpelagatti@bdo.com
www.bdo.com


Slide Presentation

New Standards for
Interest Rate Risk Reporting

Michael Fasone FMS Photo
Michael Fasone
Partner
Bank Reporting Sciences
410 799-7002

mfasone@
bankreportingsciences.com

www.bankreporting
sciences.com


Slide Presentation
Program Agenda

Attendees earn valuable CPE credits while learning the meaning of "Committment" during the Accounting and Auditing Update  presentation by Barry Pelagatti.
An expert Regulatory Panel presented Members with valuable perspectives on contemporary regulatory matters.
Michael Fasone of Bank Reporting Sciences presented New Standards for Interest Rate Risk Reporting following the luncheon break.