CMS Case Study

more important. With products such as RDC, Lockbox, ACH, Positive Pay, and credit and P-Cards our calling effort requires a broadened approach. (See Insert Below) Finally, we will formalize a Pre-Call Planning process for both loans and deposits as it is critical we understand the industry and business we are visiting. For loans, review existing customers in the same industry, utilize First Research to familiarize yourself with the industry, current issues within the industry, and use the questions and direction offered through this program. Our Bankers are our most significant differentiating point – it’s not rate, and it takes no skill to be cheap. For deposits, attempt to understand services that might fit, numbers of employees, depository needs, and tailor the call after the preparation. For existing customers, know the products already in use and show up with a Plan, and be unafraid to ask for help or specialists in our products. Reasons for Deposits • 87% of new HH’s begin their relationship w/ a deposit account. • 83% view their depository institution as their “primary” bank, and their 2 ½ times as likely to go to their primary bank for credit. • Deposits fund earning assets - low cost source of funding • The Market Value of the Bank is dependent on low-cost deposit funds • Deposits provide an excellent platform to sell other services • Growth in Core Deposits generate much more net interest income than does expanding loan margins - both at the same time are even better. Target Deposit Industries • Real Estate Title Companies: high transaction volumes, high balances from escrowed funds. • Rental Businesses: multiple locations, high volume • Small Insurance Agencies: high volume of deposit items and checks paid, real estate financing opportunities. • Wholesalers: high volume, often require financing of working assets • Manufacturers: high volume, more credit opportunities, generally higher balance customers • Contractors: often collect in advance for large jobs, high numbers of deposits • Professionals: Medical, CPA’s, Vets, Architects -- value simplicity of online banking, value their RM’s expertise, often require real estate financing. • Large Non-Profits • Existing single product HH’s (and know the customer well enough to understand what deposits exist elsewhere) Best Practices • Sell your Expertise - more than 50% of businesses rank a superior RM as their No. 1 issue in selecting a Bank. • Work your Top 10 Prospect List • Identify your Loan Only relationships within your portfolio • Focus on Mixed HH’s - combined business and personal relationships generate almost twice the return of business only relationships. The following are more specific components of our Officer Calling Program.

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