Subchapter S Bank Association

Dividend Planning & Optimizing Tax-Exempts for Sub S Banks

Telephone – Webinar – Audio/Visual CD Rom

Wednesday, July 28, 2010

8:00 am –   9:30 am Pacific

     9:00 am – 10:30 am Mountain

10:00 am – 11:30 am Central

11:00 am – 12:30 pm Eastern

The past few years have brought a myriad of challenges to small banks, including increased loan losses, securities losses, and increased deposit insurance premiums.  In addition, a dizzying array of tax law changes is on the horizon.  The combination of decreased earnings and uncertain tax rates means that many institutions may not be fully utilizing their tax-exempt income.  Many go into a Sub S conversion thinking they need the maximum municipals possible in their portfolio, but very few consistently review their allocations.  Join us to examine a model that can be used to quantify the effect of various allocations to tax-exempts on after-tax income, dividend tax, the AAA account, and other factors.

HIGHLIGHTS

• Examine a sample Sub S bank dividend policy
• Learn how the level of municipals in the portfolio affects the amount of dividend that can be paid to shareholders without additional tax
• Understand how the amount of tax-exempt income affects the AAA account balance
• Learn how to determine whether the portfolio’s municipal allocation is optimal
• Review recent and proposed changes to tax law that may impact Sub S shareholders and how to incorporate these changes into your dividend planning

WHY SHOULD YOU PARTICIPATE?

This session is a cost-effective way to learn how your municipal bonds allocations affect shareholders’ taxes, particularly the dividend tax.  You’ll learn new techniques for assessing the payout ratio and how to optimize tax-exempt-earnings vehicles.  There will be no travel costs, no time lost from work, and no one will be required to leave the institution.

WHO SHOULD ATTEND?

Community bank presidents, CFOs, board members, treasurers/comptrollers, and investment portfolio managers will benefit from this presentation.

Please note:  Your registration fee allows you to have one telephone connection.  However, as many people as you like may listen from your office speaker phone.  If you register for the webinar, your registration fee also includes one internet connection from a single computer terminal.

ABOUT THE PRESENTER – Monica S. Sonnier, CPA, CFA, FTN Financial

As a Senior Vice-President and Portfolio Strategist at FTN Financial, Monica has over 20 years’ experience in the institutional investment arena, including managing a bank portfolio over $2 billion.  Monica assists FTN’s depository clients with portfolio technical analysis, as well as monitoring regulatory, tax, and accounting issues.  She has worked extensively with all types of financial institutions on forecasting, regulatory issues, and tax issues (including Sub S planning).  Monica is a frequent speaker at financial institution and investment conferences. 

WHAT IS A TELEPHONE/WEBINAR SEMINAR?

This training method allows unlimited listeners on your office speaker phone.  By choosing the webinar option, participants will also be able to view online visuals as the presentation is delivered.  Registrants receive a toll-free number and pass code that will allow entrance to the seminar.  The session will be approximately 90 minutes, including question and answer sessions.  Seminar materials will be sent prior to the broadcast along with hookup instructions.  Your pin number, hookup instructions and handouts will be emailed to you.  You will need the most current version of Adobe Acrobat Reader available free at www.adobe.com.

CAN’T ATTEND THE SCHEDULED TRAINING?  ORDER THE AUDIO/VISUAL CD ROM!

As an added benefit, you may purchase a CD Rom* of this presentation.  The CD includes the original audio/visual presentation, the question and answer sessions, and the handouts.  In addition, you will be able to contact the presenter if you have follow-up questions.  Use this “off-the-shelf” training program for those that could not attend the live seminar and for future training.  AFFORDABLE, PROFESSIONAL TRAINING, WHEN AND WHERE YOU CHOOSE.

*CD Rom for PC use only