EXECUTIVE DEVELOPMENT PROGRAM

A 12-month program designed to motivate and accelerate the development of Northwest Banking Industry Leaders

Established 1889

“The Executive Development Program has proven to be a great opportu-nity to groom our industry’s rising stars. This year-long program

provides a comprehensive understanding of the banking industry, from advanced credit skills to leadership development. I encourage all banks to invest in their future leaders by enrolling them in the Executive Development Program.”

James PishueWashington Bankers Association

President and CEO

“Preparing the leaders of tomorrow is essential, and the Executive Development Program has proven value and offers an extraordinary learning experience. The IBA is excited to partner with the WBA and OBA and encourages bankers to seize this oppor-tunity to become a pro-active advocate toward the success and achievement of tomorrow’s industry leaders.”

Dawn JusticeIdaho Bankers Association

President and CEO

“We are pleased to offer this unique profes-sional de-velopment opportunity to future leaders in the Northwest banking community. The Executive Development Program is an unparalleled experiential learning experience and a solid investment in any bank’s future leadership and success.”

Linda NavarroOregon Bankers Association

President and CEO

With the current emphasis on the return to profitability and the related issues surrounding this hurdle,

a critical item is being overlooked — developing leaders for the future! The leaders of tomorrow

realize the issues facing their institutions, and have a strong desire to grow, contribute, and make a

difference.

During the past four years I have actively participated in the Executive Development Program and

witnessed firsthand an astounding level of professional growth from the participants via structured

and rigorous classes that have greatly expanded their knowledge of banking and increased their

awareness of the important links between critical performance areas. Through over 175 hours of

training and self-study, these students have emerged as individuals who are now prepared to accept greater responsibilities at

their institutions.

The research is clear. Employers who have demonstrated to their employees how much they are valued will be rewarded with

lower employee turnover. Lower employee turnover results in lower customer turnover, which yields higher profitability. So while

we’re concerned about the return to profitability, we may be missing our greatest opportunity for long term success. Who are the

future leaders you can least afford to lose, and what is being done to let them know your institution values them?

Joe ZavagliaPresident, Zavaglia Consulting

Executive Development Program Lead Consultant

“The Executive Development Program has opened my eyes to elements of banking outside of my job function. This has resulted in a greater appreciation for how indi-vidual roles within the bank impact and are impacted by others and macro bank economics. From drilling down to the micro components of “Bank Profitability” to the politi-cal issues facing our institutions today, the Executive Development Program has effectively prepared me for positions of increased responsibility and my own value proposition to my organization.”

David Raney, AVP/Residential Lending Manager, Sound Community Bank, 2010 Executive

Development Program Graduate

2014 Executive Development Program

Program Curriculum

UNDERSTANDING BANK FINANCIAL STATEMENTS February 12, 2014 This session will focus on calculating and interpreting key banking ratios so that a comparison with the Uniform Bank Performance Report can be performed to determine how your financial institution compares to your peer group of banks. We will accomplish this by starting with an understanding of the items on the balance sheet and income statement and how each account relates to the other. We will then progress to calculating and interpreting earnings and performance ratios that bank management should monitor to ensure a safe, sound, and high performing bank. We will end the presentation by focusing on the CAMELS rating system and other key risk areas. Session Objectives•Analyzeabalancesheet(includingearningassets,thetypesofdebts

typically found and Stockholders’ Equity Accounts)•Calculateandinterpretkeybankearningsandperformanceratios

and how they compare to peer banks using the BPER•Identifyliquidityandotherfundingsourceopportunitiesandthreats

Instructor: Jeffery Johnson, President, Bankers Insight Group

LEADERSHIP AND MANAGEMENT January 9, 2014The banking industry has recently faced more dramatic financial, technological, and human capital challenges than at any time in recent history. Consequently, banks need contemporary and transformational leaders throughout all levels and areas of their organizations. This class is designed to help participants identify the key components of leadership and management. All participants will complete a leadership self-assessment, analyze the results, and develop a personalized strategy for evolving their leadership skills.Session Objectives•Reviewthemajortasksandpersonalcharacteristicsof

contemporary leadership•CreateapersonalizedLeadershipDevelopmentActionPlanto

utilize during the year•Learnthecriticalframeworkformentoring,coaching,and

developing teams for performance

Instructor: Marcus Mann, Principal, Sound Predictions

THE BIG PICTURE AND BANK EVOLUTIONJanuary 8, 2014This class will examine the current state of the financial industry in the Northwest, the country, and the world. We will analyze the differences among financial institutions such as credit unions, thrifts and commercial banks. Additionally, we will compare the differences between community banks and big banks to include those now deemed “too big to fail”.Session Objectives•Examinehowbankinghaschangedinthelastfewyears•Exploregovernmentregulationsandtheireffects•Discusshowtoregaincredibilityandprofitability

Instructor: Dave Enger, CEO, Pacific Coast Banking School

“The Executive Development Program has opened my eyes to elements of banking outside of my job function. This has resulted in a greater appreciation for how indi-vidual roles within the bank impact and are impacted by others and macro bank economics. From drilling down to the micro components of “Bank Profitability” to the politi-cal issues facing our institutions today, the Executive Development Program has effectively prepared me for positions of increased responsibility and my own value proposition to my organization.”

David Raney, AVP/Residential Lending Manager, Sound Community Bank, 2010 Executive

Development Program Graduate

The Executive Development Program has been an excellent venue for learning about crucial aspects of bank management and a wonderful opportunity to network with other great banking industry professionals.

Gayle Sprute, Vice President/Senior Portfolio Manager, Washington Trust Bank, 2012 Program Graduate

ASSET LIABILITY MANAGEMENT May 14, 2014Bank managers and leaders need to understand the relationship among financial goal setting, budgeting and planning, and the ALCO and balance sheet management process. Externally, bank regulators, shareholders, stock analysts, and the SEC all expect that bank management have an effective plan and process in place to reach financial goals while managing the relationship between various forms of risk and return. The focus of this session is to introduce and apply various tools and techniques in developing an effective ALCO process.

Session Objectives•UnderstandthedifferencebetweenastaticanddynamicALCO

process and why it makes sense to convert to dynamic•Understandandapplythemostcrucialdecisionmakingtoolsin

growing, maintaining, pricing, and assessing deposits•BeabletodiscussissuesinvolvedinmakingALCOdecisionsusing

enterprise risk management metrics.

Instructor: Tom Farin, President and CEO, Farin & Associates, Inc.

BANK PROFITABILITY March 12, 2014Unlike the manufacturing and retail industries, financial institutions rely largely on the assets and liabilities on their balance sheets to generate income. This session will examine how banks make money, the capital required versus the risks inherent in the balance sheet, and an overview of how bank profitability is performed. The day begins with an overview of the industry, and drills down into organizational, product, and customer profitability details, and discusses how profitability is utilized in strategic decision making.

Session Objectives•Orientattendeesonhowprofitabilityreportingisaccomplished•Identifyeffectivewaystouseprofitabilitydata,withanemphasis

on strategic decision making•Buildanunderstandingoffundstransferpricing,andrisk

adjusted return on capitalInstructor: Jeff Marsico, Executive Vice President, The Kafafian Group

SALES PERFORMANCE, EXPECTATIONS, AND MEASUREMENT April 9, 2014In this session, we will conduct an in-depth review of incentive programs, performance scorecards, recognition and reward programs, and the importance of the link among them. Together we will build an incentive program, performance scorecards, and recognition and reward programs that inspire employees to achieve results beyond the norm. We will also discuss setting sales goals and the impact they have on results.

Session Objectives•Demonstratethelinkamongperformancemeasurementsystems,

incentive programs and recognition and reward programs•Provideexamplesofsuccessfulbusinessplansandtheimportance

of measuring how much, and what, by when•Definewhatactionsareneededonadaily,weekly,monthly,and

quarterly basis to ensure you meet and exceed your performance goals

Instructor: Joe Zavaglia, President, Zavaglia Consulting

EXECUTIVE DEVELOPMENT PROGRAM MENTORSHIP PROGRAM

One of the unique aspects of the EDP is the mentorship program. It was designed to pair EDP students with an executive mentor from their bank who works with them on a monthly basis to reinforce the classroom learning experience, introduce them to key executives at their institution, and pair them with business experts for assistance in their homework preparation. Each student is required to have a mentor for the duration of the program; they are expected to interact frequently with them and to use them as a sounding board to assist them in understanding topics that may be outside their current knowledge base. This is one of the few banking related executive development programs in the country where mentor and mentee are partnered to ensure the most complete development of the student.

“We send our up-and-coming employees to the Executive Development Program. They all return with similar experiences: camaraderie within the group; the professionalism of the lecturers and the insight they bring to the sessions; and most importantly, they gain a better understanding of banking from both sides of the balance sheet. From the bank’s standpoint, we can say that our investment in our employees resulted in a better understanding of the individual preparation required to make a significant contribution to the overall betterment of the bank.”

Jack Wagner, President & CEO, Washington Banking Company

AUDIT AND COMPLIANCE August 13, 2014The U.S. government must ensure that all financial institutions are operating in a safe and sound manner. Banking leaders must learn how to maximize their profits, yet stay within a framework provided by certain regulatory oversight groups. Find out who these oversight agencies are, how they measure your bank’s overall health, and how they audit your bank. As a future leader of a bank, you will need to understand what the consequences may be if your bank is unable to comply with the standards set by your oversight agency.

Session Objectives•Reviewthehistoryofbankingproblemsandhowtheregulatoryagenciesare

structured•Explorethedifferentramificationswhenabankfallsoutsidethesafeandsound

criteria rating•Interactwithregulatorstodiscoverwhatactuallyhappensinthefield

Instructor: Dave McCrea, Industry Principal - Solutions Consulting, Infosys

LEGISLATION AND POLITICS July 16, 2014This class is designed to broaden participants’ understanding of the complexities of the legislative process in Washington, Oregon and Idaho. More specifically, we will review legislation and its impact on the banking industry. We will discuss the differences among various banking organizations, their purpose for existence, and key legislative and political challenges facing each organization.

Session Objectives•Discusstherolepoliticshasinthebankingindustrytodaybothonanationaland

local level•Identifyhowlegislationhasnegativelyimpactedthebankingindustryovertheyears

and what the results have been•Definehowcreditunionsarebenefitingfromthecurrentpoliticalenvironmentand

what this means to our industryInstructors: Jim Pishue, President and CEO, Washington Bankers Association Linda Navarro, President and CEO, Oregon Bankers Association Denny Eliason, WBA Lobbyist, Alliances Northwest

CREDIT AND RISK REVIEW June 11, 2014In today’s current economic environment, managing the commercial and consumer loan portfolio is paramount in order to maintain a safe and sound financial institution. The class begins with a discussion of those macro economic, industry, business and management factors that must be considered as part of credit and risk assessment. This is followed by an examination of the bank’s loan management functions including: identification of potential problem loans, management oversight of the loan portfolio, and the bank’s corrective action plans when problems are identified.

Session Objectives•Assigncreditriskratingsutilizingaclear,measurableandobjectiveriskratingsystem•Reviewofessentialloandocumentationprocedurestoensurethebank’scollateral

position is legally enforceable•Discusseffectivemethodsofperforminganinternalloanreviewincludingan

assessment of the bank’s asset quality trend and performance/capital ratiosInstructor: Jeffery Johnson, President, Bankers Insight Group

NEGOTIATIONS AND CONFLICT RESOLUTION October 8, 2014As bank executives struggle to navigate a financial services industry in the throes of tumultuous transition, their negotiating and conflict management skills are being challenged as never before. Whether it’s bargaining with customers over rates or structure, supporting credits through the approval process, dealing with staff performance problems, sorting out compliance issues with regulators, or simply managing everyday differences with colleagues, today’s relentlessly dynamic banking industry demands nothing less than best-in-class negotiating and conflict resolution skills.

Session Objectives•Understandthepowerfulanti-negotiationbiasinAmericanculturethat

underlies our instinctive discomfort with - and avoidance of - the process•Beabletocompetentlyandconfidentlyuseafullrangeofbestnegotiatingand

conflict management practices and countermeasures•Fullyandeffectivelypreparetonegotiateandresolveconflictswitheasy-to-use

planning toolsInstructor: Jim Thomas, Chairman and CEO, Common Ground International

CREDIBILITY AND ETHICS November 5, 2014Banking is one of the most competitive professions on the planet. The banking industry has seen numerous examples of what happens when professionals violate the rules of integrity and ethics in order to satisfy the demands of a competitive environment. This class is designed to help participants understand the principles of ethics and engage in experiential learning activities to measure how they would deal with ethical issues via case studies and hypothetical exercises.

Session Objectives•Exploretheimportanceofvaluesclarificationanditsrelationshiptoethics•Engageinagroupexperientialethicsandmoraldilemmaexercise•Developanunderstandingofthenatureofethicaldilemmas,theprinciplesfor

resolving them, and how to apply them in the banking environmentInstructor: Bill Robinson, Manager, Epiphany Learning Strategies, LLC

**Please note that course dates and instructors may be subject to change.**

COMMUNICATION AND INFLUENCING OTHERS September 10, 2014In this session you will learn about your communication strengths and blind spots and how to recognize those of others. We will cover how to adjust your style to be compatible with those you work with and how to inspire your colleagues to work toward continuous improvement. You will learn how emotions and stress impact your moods and communication. Finally, this session will teach coaching techniques and communication practices to use both in person and through email.

Session Objectives•Identifyyourcommunicationstyleandstylesofothers•Understandhowperceptionandstressaffectemotionsandhealth•Defineyourstrengthsandblindspotsincoachingandcommunication

Instructor: Janaki Severy, Principal and Owner, Managing Dynamics LLC

Congratulations to 2012 Executive Development Program Graduate, Aaron Strong!

When Cashmere Valley Bank Assistant Control-ler and CPA Aaron Strong wanted to better understand the banking industry’s vari-ous aspects and bigger pic-ture, he turned to the WBA’s Executive Development Program (EDP) to advance his knowledge and career.

Aaron found that the twelve months of coursework was a great way to “see all

of the different moving parts; how each area works together and impacts each other.”

He notes that “It was very beneficial to learn how other organizations operated and hear a wide range of per-spectives from people with different specialties.”

In addition to the benefits of the EDP’s leadership development to his professional growth, Aaron also says that, “The networking opportunities were immensely valuable; I made great industry connections and friends.”

As a program graduate, he was able to apply for and receive a scholarship to the Pacific Coast Banking School (PCBS) - part of a joint partnership between the WBA and PCBS. Aaron is the third EDP graduate to receive this scholarship.

He plans to continue building on his skills and knowl-edge developed during the program to become an even better banker and leader. States Aaron, “I am incredibly thankful to the EDP and Cashmere Valley Bank for their support and for providing me the opportunity to continue my development through PCBS.”

HOMEWORKParticipants are required to complete 6-8 hours of homework prior to each class. This prepares them to best understand the topics, challenges them to be proactive in their learning, and to seek out the advice of key individuals within their own institution when needed. After completing their individual assignments, the participants then confer with a diversified study group (bankerswithdifferingskillsets)withintheirclasstocomparenotesandlearnhow their peers approached the questions.

Pacific Coast Banking School believes the Executive Development Program is excellent preparation for the PCBS program. The high-quality content will provide a wider breadth of knowledge about the banking industry to the potential PCBS student. David A. Enger, President & CEO, Pacific Coast Banking School

2014 Executive Development ProgramWho Should Attend?This program is designed for self-starters, bankers who want to proactively direct their own careers. Group study exercises and activities promote a team learning environment where the focus is more than just on the individual but on the ‘we’ as a team, where everyone works together to achieve a common goal. This executive-level program appeals to critical thinkers who want to challenge their understanding of the banking industry, who are eager to learn and share their newly discovered knowledge in better serving their organizations.

This program is designed for those:•Motivatedanddriventosucceed•Withatleastthreeyearsinamanagementpositionorequivalent

banking experience•Keyproducersthatabankwantstoretainforthelongtermand

develop for significant leadership roles•High-potentialemployeespoisedtomoveintonewpositions•AnyoneconsideringattendingPacificCoastBankingSchoolwouldfind

this an excellent precursor

Cost for ProgramRegistration forms must be received by December 13, 2013.Members of the Idaho, Oregon, and Washington Bankers Associations: $3,250 per student until August 31, $3,500 thereafterNon Members: $6,500 per student until August 31, $7,000 thereafter

AttendanceAttendance is required at all sessions. We recognize that certain absences cannot be avoided and will approve missed courses on a case by case basis. It is still expected that all course work be completed for any missed class. In order to complete the entire program, there can be no more than two absences.

It is each student’s personal responsibility to attend all scheduled classes and events, complete all homework assignments, and fully participate in all group assignments and team building exercises.

Registration InformationFor information on how to register and to print the registration form, please visitourwebsiteatwww.wabankers.comorcall(206)447-1700.Thisform requires managerial and executive management approval. Please send your completed form and payment info to: Washington Bankers Association, 1601 Fifth Avenue, Suite 1120, Seattle, WA 98101.

“Our bank has sent several young leaders to the Executive Development Program since its inception. I am very pleased with the big picture thinking and insightful questioning that these young bankers are coming back with. The bank and our employees all benefit from this improvement in skills and strategic thinking. This program has shown excellent results and is a great investment in the future of our bank.“

Laurie Stewart, President and CEO, Sound Community Bank

1601 Fifth Avenue, Suite 1120Seattle, WA 98101Ph: (206) 447-1700Fax: (206) 223-6453

www.wabankers.com

With today’s bankers facing unprecedented economic, regulatory, and competitive pressures, the need for strong leadership has never been greater.

Step up your career.