CMS Case Study

5.

Broaden Revenue Sources

To achieve our desired profitability, we must manage all components of our income statement. We must maintain a laser-focus on our non-interest income much like we do on our net interest income and non-interest expense. By broadening our revenue (fee) sources, we better position ourselves to meet our net income goals. We will continue with the development of a comprehensive and formalized fee income plan to be further implemented into our Incentive Plan beginning in 2021. To date, loan-related fees are included in the existing plan, but as the comprehensive plan (together with appropriate tracking) is further developed we will evaluate each component for plan inclusion. Specifically, treasury services, wealth, mortgage, service charge income (including waivers of same), and the Bank’s credit card program are key areas of focus. The Bank’s incentive plan is not a static plan, and tends to be amended based upon needs as we progress. In order to succeed with generation of other revenue, we will continue to revisit how fee income targets factor into our Officers’ incentive programs and make all necessary revisions in time for the 2021 incentive year. Upgrades to our Core system will greatly improve our capacity to appropriately track fees and waivers. Each are key to the efforts to broaden revenue generation. Clearly define and communicate job expectations for each position within the Bank. The Bank will formalize the on-boarding process to include (1) exposure to and discussion of our Mission Statement and Core Values, (2) a discussion and presentation of the basic duties to be required of their role within a department, and (3) a review of the Bank’s plan for training. Further, all new employees will be introduced and given an opportunity to observe specific areas within the Bank that are complementary, adjunct, and/or relevant to their department to insure an understanding of workflow, inter-departmental cooperation, and to provide a better overall understanding of where and how their department fits within the overall operation of the Bank. The Bank will adhere to a 90-day probationary period with all new hires. During this timeframe, management feedback (bi-weekly at a minimum) is key to address the fit of the employee, work performance, and in the case of recurring performance issues with any employee, training needs that might arise. The Bank continues work on a formalized “Training Program”. It is during this probationary timeframe that decisions are to be made, including file documentation (both positive and negative), regarding whether or not the employee is exhibiting the necessary skills for a particular role, whether or not a different role within the Bank may be better, or whether or not they have a longer term future within the Bank in any role. B. Be Accountable 1. Define Job Expectations, Provide Training and Hold to Position Standards

22