CMS Case Study

V.

Strategic Initiatives and Action Items

A.

$1 Billion by 2025

1.

Sustain Loan and Deposit Growth: Officer Calling Program

To quantify our action item of increasing loans and deposits, we will set annual goals, measured monthly/quarterly, with all producers laying out specific targeted growth in the average loan and deposit portfolios of each producer. The goals should be broken down by region/department to allow the supervisor of each department to readily review the results on a monthly basis with each producer. In addition to specific loan and deposit targets, we will implement a formal officer calling program. This program will lay out a minimum number of bona fide marketing calls for each officer to make in a given month. We will track the level of calling activity using the Bank’s Core system or a similar CRM tool. At each monthly meeting the calling officers have with their supervisors, they will review both the loan/deposit growth activity for the month and the calling activity for the month. As part of the formal calling program, we will establish a customer and prospect calling list with minimum engagement benchmarks for each, and insure all contact methodologies are active (email, phone, text, in-person). We will understand that our customer calls serve a variety of purposes. On the loan growth side, for instance, this effort is required for retention, understanding and anticipating upcoming needs, reviewing cap ex needs where necessary, being available as a trusted advisor for thoughts and ideas, evaluating other Bank services that might be helpful or necessary, and for referrals of other businesses or individuals as well. Many businesses have vendors from whom they purchase products or materials, and customers to whom they sell. Both have potential to drive and/or deepen our calling effort. At the outset of each quarter or year, it is necessary to create and maintain a list of all calls on existing customers for the purposes above, and equally important, calls on businesses that have evident borrowing or borrowing needs that can help in reaching personal loan goals. Many calls are simply to position Cloyd Bank & Trust as the strong “No 2” to insure a call when issues arise at their incumbent lending bank. Haphazard and inconsistent calling is a failing method, and proven to fail over time. Another part of our calling effort will be to aggressively pursue centers of influence (COI’s), i.e. accountants, attorneys, real estate agents, economic development professionals, etc. It is important to generate a relationship with those that also provide professional advice and counsel to our borrowers. The professionals in our business understand this and are often in on a transaction much earlier as a result. Historically, Cloyd Bank & Trust has been a “loan oriented” calling institution, and deposits have generally expanded without a concerted effort. Our need for low-cost funding has never been greater, and our need to expand all opportunities for fee income (beyond loan fee income) has also never been

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