Alan J. Bender, EVP and CFO of Unity Bank served as moderator for the event. He welcomed the large contingent of financial executives in attendance and introduced Bill Dunkelberg, Chief Economist from the National Federation of Independent Business. Bill presented a very informative and entertaining opening session entitled The Election and the Economy. Bill discussed the current state of the economy since the recent Presidential election and summarized the top ten problems and priorities facing small business. He noted that although the cost of health care is by far the biggest concern, the single most important problem facing business owners has turned from sales to inflation. Bill noted that the small business optimism index remained considerably below average during the Obama administration and rose well above average immediately after the 2016 presidential election. He noted that the index has recently peaked, resulting in a decline in business expansion. Bill forecasts slower economic growth, higher interest rates, higher inflation and a lower stock market.

Glenn James, Partner from BDO presented The Aftermath of New Jersey Tax Reform – What’s Left? Glenn is a frequent speaker at Chapter events and specializes in federal and state taxation. He summarized the latest tax reform legislation in New Jersey and primarily discussed the New Jersey investment company and REIT special exclusions for tax periods ending after June 30, 2019. Glenn provided specific examples of how the exclusion of dividend income for a combined group would affect taxable income. He also provided a comprehensive example of a New Jersey investment company tax calculation.

An expert outlook on the New Jersey economy was presented by Brian Jones, Financial Economist from the Federal Home Loan Bank of New York. Brian discussed the key economic factors affecting housing in the New Jersey economy, including the following trends:

• Multi-family lending declining;
• Single family housing: Lack of supply, rising prices and  SALT deduction;
• Rising prices continue to pressure home affordability;
• Home prices remain below pre-financial crisis levels.

Following a buffet luncheon, a panel featuring four Chief Financial Officers from member community banks discussed Hot Topics for Bank CFO’s. The panel was moderated by Dennis Spinelli, CPA. The panel discussed a series of issues and presented strategies, including the following observations:

• Economic recovery cycle ending;
• Rising interest rates;
• Flattening yield curve;
• Interest rate margin compression – biggest challenge facing all institutions;
• Liquidity regulatory compliance risk;
• Capital adequacy.

Topics and Speakers