Pub. 1 2012 Issue 8

8 l e a d i n g a d v o c a t e f o r t h e b a n k i n g i n d u s t r y i n k a n s a s A TTENDEES OF THE KBA ECONOMIC OUTLOOK and Investment Conference were eager to hear econo - mists’ forecast following the 2012 elections, held the week before. The conference opened with a presentation titled “A Tale of Two Economies” by Brian Wesbury, First Trust Advisors. Brian recapped employment numbers, consumer confidence, private industry profits and personal consumption experi - ences over the last several years and applied the current trends to what we should see in the near future. Providing clarity on the relationship between government spending and GDP benefit from new industry, Brian was able to demonstrate that it is not a party issue but a spending issue that has fundamentally violated the free marketplace and prevented economic growth. With personal consumption at an all-time high and new technology rolling forward to make living easier, the economy should be rolling, but it remains at a slow growth due to extreme deficits in government spending. Wesbury concluded his talk with a forecast that we will see some form of Simpson Bowles event that will slow spending. We will not see a double dip recession and the GDP will slowly improve over the next few years. Following a short break, the group was attentive as Edward Krei, The Baker Group, presented a talk titled “PreparingYour Bank for the Uncertain Times Ahead.” While the title sounds as if he’s predicting harder times down the road, the presentation was uplifting and detailed about steps to take to make sure banks are prepared to survive regardless of what lies ahead. Mr. Krei spent his time discussing qualitative steps to secure the industry from risk management and capital strategy missteps that we’ve seen in our past. Margins are compressing and will probably continue to do so over the next two years according to Krei, however, he stresses that if you are using the right tools to measure your risk then performance can still be manageable. Considerable time was spent reviewing specific tools to measure portfolio risk and strategic planning as well as outlining the seven items that a high-performing financial institution does well. There were multiple concurrent sessions to choose from includ- ing: Gray Bowles, FTN Financial, “Managing your Investments in an Uncertain Environment”; John McQueen, UMB Bank, “Bond Portfolio Mix: Maintaining a Well-Balanced Portfolio in a Low Interest Rate Environment”; Matt Lephardt, BOSC, Inc., “Funds Management and Use of Brokered Deposits”; and Brian Paugoulatos, Commerce Bank, “What Should I Do Now? How to Invest in a Low Interest Rate Environment.” The second set of concurrent sessions included: Sean Doherty, Country Club Bank, “Investing Excellence with an Eye to Interest Rate Risk”; Dennis Wagner and Tim Siengsukon, Central States Capital Markets, “Fixed Income Traps and Yield Illusions”; and Kenneth Bretthorst, First Bankers’ Banc Securities, “Alternative Investments in Unsettled Times.” The conference closed with a talk motivating attendees to keep pres- sure on regulators in regard to Basel III. Jay Brew, co-chairman, Siefried & Brew, was engaging as he delivered a presentation on traditional conservative banking that has not only survived but thrived even in economic downturns. He gave alternatives to Basel III for community banks that would prevent risk for failure and support risk as necessary. With customized bank data packets for every attendee, Brew was able to demonstrate how these strategies work. ECONOMIC OUTLOOK & INVESTMENT CONFERENCE Terry Puett, Bankers’ Bank of Kansas NA, Wichita, KBA Chairman-elect Leonard Wolfe, United Bank &Trust, Marysville and KBATreasurer Bob Leftwich, Impact Bank, Wellington listen as Brian Wesbury remarks on the economy and the election.