Strunk & Associates, L.P.

Dave Eytcheson

Sr. Vice President, COO
United Security Bank
Fresno, California
Asset Size: $670 MM
Core Processor: ITI (in House)

“We were one of the first banks in the area to adopt overdraft privilege. Five or six years ago we worked with Strunk & Associates and they did an excellent job in introducing the product and in training our people. We had a big kick-off event to get it going. The program has been extremely successful for our bank. Overdraft Privilege increased our customer base and drew a lot of interest.

We did some marketing of the product initially. Strunk was helpful in advising us on how to introduce and market it properly and effectively to the community.

We never considered implementing a program on our own or going with anyone but Strunk. We learned about Strunk when our CEO attended a banking conference where they had sessions on ideas on improving bank performance. He learned about Strunk and the discretionary Overdraft Privilege Program at the conference. That’s when we contacted the company for more information.

The program has become a popular service for our customers. They look at it as a product with tremendous value. They truly appreciate the bank making an overdraft payment and the cost has not been a major concern. Getting checks paid and eliminating the embarrassment of having their checks returned was greatly appreciated. That’s how we sold the program. We heard a lot of positive stories from our customers about how it saved them from the embarrassment of a returned check.

Strunk paid attention to detail. We had a number of training meetings, we had people in from all of our branches so everyone understood the service.

One of the things that our management was impressed with was the way Strunk paid attention to detail with the regulatory environment, keeping abreast of changes, submitting regulatory updates. The company did everything they promised and kept our program in compliance.”

Matt Morris

President, CEO
Fort Madison Bank & Trust
Fort Madison, Iowa
Asset Size: $142 MM
Core Processor: Fiserv

“When we decided to look into an overdraft payment service we did some checking around. In the end, we decided to go with Strunk because, one, they had good references and two, they understood compliance.

Before we had overdraft privilege, we handled overdrafts in the traditional way . . . all done internally, we had officers assigned accounts and they took care of it by customer. When we went to the overdraft privilege service, it not only was accepted by our customers but it saved us a lot of time.

We learned that Strunk was on top of the regulatory issues because they had endorsements from some leading banking organizations and we were very comfortable with their references. We’ve also had bank examiners in and they have not had an issue with our overdraft privilege service.

They were on top of training. They were efficient, provided good follow-up, monitored our program and did an excellent job overall. They provided us with all the forms, they made sure everything was loaded into our system, and conducted testing. We had our ducks in a row before going live. It was more or less a seamless transition.

We didn’t hear much from our customers about the service to start but we had no closed accounts and people in general appreciated it. We didn’t promote the service but we let our customers know it was available. We also made sure we had full program disclosure with our customers.

It’s helped out our bank, increasing fee income substantially.”

Veronica Killen

VP Retail Coordinator
Persons Banking Company
Perry, Georgia
Asset Size: $412 MM
Core Processor: ITI

OVERDRAFT PRIVILEGE: “I work with four banks in Georgia as Retail Coordinator. I’m actually employed by a bank holding company that owns all four. When I came on board two years ago only one of our banks had an overdraft payment program. And, like many community banks, much of their focus was on commercial lending as opposed to the retail business.

Interest was developing, however in an overdraft service so I set out to learn what I could and who had the best program. The one bank of ours that had the overdraft service had worked with Strunk & Associates so I gave them a call first. I spoke to Dick Gowdy and was very impressed with both his knowledge and integrity. I was already familiar with the concept and had used another overdraft vendor previously and found Mr. Gowdy and Strunk to be a refreshing change from their competition.

We eventually decided to go with Strunk for all four banks and have been very pleased. Randy Adams came in and explained to us how we could integrate the program in all our banks. He gave an excellent presentation and worked with our management as well as tellers and customer service representatives to insure no detail was overlooked.

Strunk also pays a lot of attention to program compliance. They are the experts when it comes to regulatory issues relating to overdraft payment services. They had sample documents and forms and from their materials we were able to formalize our own tailored program for our banks. Another thing that impressed me – they never took the approach of ‘How do we get around the regulators’; rather they took the high ground and it was evident they worked with the regulators and administrators in making sure they had a sound product.

A well structured overdraft service is a plus for the bank and for the customer. With the Strunk overdraft program, we’ve more than doubled deposit service charge income over the past couple of years. And, we have had no complaints with our program. In fact, our customers love it. It is not unusual for a customer to call just to say”Thank You for paying my check. That really helped me out.” Customers appreciate that you’re offering the service.”

 

Ken Richards

Vice President Of Operations
Roma Bank
Robinsville, New Jersey
Asset Size: $1,788 MM
Core Processor: OSI

“When we first considered an overdraft payment service we did a little research. Our core processor provided Strunk’s name along with one other for consideration.

Our first contact with Strunk was Tom Dufner. He presented the information on the company and the service. We liked the presentation and the information he provided. We went through everything very thoroughly. I must say, we felt very comfortable with Strunk and Associates’ Overdraft PrivilegeSM Service Program.

We were most impressed with the simplicity of the system. We also felt comfortable with the way it was designed—how straightforward it was — and we felt there would be no issues with compliance, which was a concern of ours. Compliance is definitely one of the company’s strong points.

Previously we handled overdrafts on a case by case basis. We returned overdrafts for most part, but had a few exceptions for a limited number of customers. But even those were required to make a deposit within 24 hours.

Chris Kendall, an Account Manager from Strunk and Associates, came in to help us implement the program. But he first conducted a training session with all of our employees. He basically did a presentation we understood and he explained exactly what we were offering to our customers.

As far as program materials, Strunk had all the basics. They provided some prepackaged documents and letters as well as information on handling collections and compliance for our back-office staff.

We started up last August. Federal bank examiners have audited us since then. They were very satisfied with our discretionary overdraft payment service. We also had our independent auditors look at it early on and they found it was up to par as well.

Honestly, we’ve had feedback on the program from both directions — but the majority of our customers are happy to have it. For the ones that seemed a little disgruntled, we always explain we’d be glad to take them off the program. Surprisingly, they never demand to be taken off.

I’ve been with Roma Bank for 15 years. We definitely have to find new ways to generate revenue. It’s not like it used to be. The business has changed. It’s been gradual. I was at one of our branches until five years ago. When I came into operations at the main branch I really began to notice things were getting tough with narrowing margins and all. It was hard to compete.

Although we haven’t adopted a lot of non-interest services, we have been looking at more fee based ways to generate revenue. Right now we’ve introduced overdraft privilege as well as started a title business. Those services are helping a great deal with revenue.

Strunk’s Overdraft Privilege Service Program has done a lot to make up for lost income. When we first implemented the program Strunk gave us some projections. We thought they were over-projecting — too high — unrealistic. As it turned out, the program exceeded both ours as well as Strunk’s projections. We’ve been very satisfied.

Pete Williston

Chief Executive Officer
Citizen’s Bank
Lafayette, Tennessee
Asset Size: $435 MM
Core Processor: Jack Henry Core Director System

“I’ve been here about 18 months and we installed the Strunk and Associates’ Overdraft Privilege Service Program 2001 prior to my joining. It seemed to be working pretty well and in September of 2005 we went to a Strunk meeting conducted by the Tennessee Bankers Association on ODP Plus. It peaked my interest. I felt we needed to take a look at it.

We implemented the ODP Plus program and have had good results. A Strunk audit was completed in November and December of 2005. Following the audit, Strunk provided excellent training, conducted with our staff over three or four sessions. It was well received. Gary Lidiak [Sr. Vice President, Account Manager, Strunk & Associates] handled it for Strunk and did an outstanding job. We were also provided with excellent materials — disclosures, brochures, and marketing letters — they provided everything.

We’ve made some important changes. Originally, we offered ODP to only consumer customers, but now we’ve expanded to commercial customers. Secondly, we’ve refreshed our marketing efforts, promoted it, and talked it up. We’ve also sharpened our processes and procedures and brought our ODP program back into focus.

We’ve had good positive results with Strunk. ODP Plus is our single largest fee income generator in this bank. It significantly enhanced that position after we implemented ODP Plus.

We found Strunk personnel to be very helpful. They understand the regulatory issues surrounding ODP. In fact, we went through a regulatory exam conducted by the state shortly after we implemented Strunk’s ODP Plus service and we had absolutely no issues.”

Gail Baker

Vice President Of Operations
Federal Savings Bank
Dover, New Hampshire
Asset Size: $264 MM

Core Processor: Fiserv

“Our Vice President of Retail Lending looked at three outsourced providers of overdraft payment programs who presented their programs. Actually two did presentations and one provided a proposal. First we looked at the software they provided which is an important consideration for me. We liked what Strunk had to offer. It fit our bank. We also were very impressed with their compliance expertise and their understanding of regulatory and legal issues. In September of 2005, we implemented the program.

Training was phenomenal. Sherri Trial came out from Strunk. She made sure we understood all aspects, and she trained our staff and made sure they understood the program fully. She also helped ensure it fit into our core processor system.

Strunk also provided the marketing materials we used for our customers, including the bank’s overdraft policy. We used all the information, tailored of course to our own bank criteria. They furnished us with the most up-to-date and detailed regulatory information — including recommendations on recently issued regulations now in place.

Previously we handled overdrafts on an “exception” basis. As a general rule, we returned the check and charged a fee. Under our new discretionary overdraft payment program, we have had some good customer feedback. A few opted out, but overall the feedback has been positive. It was pretty much a non-event if you want to know the truth.

Our revenue from the program is substantial.” It has produced above what Strunk predicted.”

Dan Doyle

President & Ceocentral Valley Community Bank
Fresno, California
Asset Size: $834 MM
Core Processor: Fiserv (on CBS System)

“We’ve been a Strunk customer for about five years now. The program has been very successful for us. I’ve been CEO here for about eight years. I worked with Sam Davis [President, Strunk & Associates] initially. I was very impressed with his knowledge.

We looked at a number of companies that sold ODP. We decided to look at different ODP providers. . . we probably did more due diligence than anyone.

We liked the fact that Strunk had a number of clients across the country and we were able to verify implementation as well as results. Second, they did a great job on the regulatory front. They had more knowledge and experience in the area of compliance than other companies we contacted.

For a service like overdraft privilege, we feel training is critical. It was a new mind set so it was important to teach and make our employees understand how the service works. Strunk provided all the materials we needed from manuals to form letters. And we pretty much adhered to their recommendations and their model and it has been successful for us.

Like most banks, we saw overdrafts as a bad thing and one of the most interesting challenges we had to deal with was with our own employees. We took Strunk’s recommendation and when we rolled it out, we presented it to our employees first. We wanted to make sure they understood it and also that they understood that it was okay for people to use the service as long as the systems are in place to monitor and control it. We’ve had very good experience with it as have our customers.

We expanded the service two years ago to small business clients, sole proprietors, whose profile is very much like a consumer. We introduced it through direct mail announcing that the service was extended to all sole proprietor businesses with the option of them opting out if they wished.

As a general rule, our customers appreciate the service because it’s a convenience and it saves embarrassment and they are willing to pay a fee to have that protection.

The program definitely enhanced our bottom line. Strunk forecasted that we would double our revenue and that is what we did.”

Gerald “Jerry” Coia

President, Chief Executive Officer
Eastern Federal Bank
Norwich, Connecticut
Asset Size: $159 MM
Core Processor: COCC

“In mid year of 2004, our Board sought a change in management. I was brought in as the new CEO and we also brought in a new management team. One of our charges was to come up with ways to enhance our non-interest income.

At my previous bank we had some interest in an overdraft payment program but never implemented one. Here at Eastern Federal Bank they had historically returned checks, didn’t cover any overdrafts, and charged the standard fees.

I had an interest in developing a program here so we asked Mike Potter to give us the details. Mike’s presentation was straightforward, easy to understand, and said it will help with fee income and add a service for our customers.

We then pitched it to the Board and it’s been very well received by our customers. We have received a number of complements from customers on the program.

Sherri Trial was our Strunk Account Manager and she handled our training. She explained the program thoroughly, but more importantly, she explained the concept of the program. Once our folks understood it, and the benefits, they supported it.

Strunk was instrumental in training, explaining the program, implementation, covering opt out and proper methods of notification. They also provided forms, form letters, and standard letters for various account criteria. Their form letters, incidentally, worked very well with our logo and business stationery. Strunk did everything we needed to get us up and running.”

Keith W. Ogle

Vice President
All America Bank
Oklahoma City, Oklahoma
Asset Size: $125 MM
Core Processor: ITI

“I learned about Strunk from a long-time friend who is a commercial banker at Quail Creek Bank here in Oklahoma City.

We felt Strunk was value-added based on the word of several other bankers who were using their program. Mike Sobba made an excellent presentation and that set them apart. He was friendly, professional and he presented his program as a banker, not a salesman. It was evident his ODP program was well thought out by bankers and legal experts.

Our previous overdraft program was informal. Each bank officer had a list of customers and they decided who to cover and who to return. Any account not assigned an officer went to our bookkeeping department and they followed pay-return guidelines set up by senior management.

Our experience with Strunk in terms of regulatory compliance has been outstanding. It is evident that their staff and legal partners have extensively read and researched the regulations. They have cut through the cumbersome and often hard to understand regulatory verbiage. Strunk’s materials make it much easier to understand and comply with the many complex regulations.

Strunk provided a full range of materials from sample forms, brochures and best practices guide. They also provided examples for print advertising as well as training guides for employees. Also helpful was the software which allowed us to customize the letters used for delinquency and collection of accounts. It was also comforting to know that these materials had been prepared and reviewed in compliance with current regulatory guidelines.

We have had excellent feedback from customers. Very few have chosen to opt out. We have had numerous complements from customers on how the program has been of benefit to them.

The additional non-interest income has helped the bank’s earnings. The fact that you have a product that adds income but also promotes customer good will is what makes the service a winner. Our senior management and board of directors are also delighted with the results.”

Brenda Morris

Senior Vice President
First National Bank Of Liberal
Liberal, Kansas
Asset Size: $243 MM
Core Processor: Fiserv

“When we first considered an overdraft protection program, a competitor of Strunk’s had contacted us. One of our questions for this company was how many other clients did they have that were using the same systems processor that we were currently using. It was important to us to have references from other institutions using the same systems processor in conjunction with the overdraft protection program. They did not at the time have clients utilizing the same system.

We had received materials from Strunk & Associates and decided to request additional information. A representative from Strunk came to visit with our Operations Officer and me. We were so impressed with the product that we set a time for the program to be presented our executive staff. That was in 2003. We implemented the program and it has performed far beyond our expectations.

The training and attention to detail also impressed us. Edgar Millan, from Strunk, spent a week working with our product team, training everyone, and when we had questions later, he had the answers.

We also like the way Strunk & Associates provide our institution with materials on regulatory compliance. They shared a roadmap of Best Practices, sample forms and documents along with everything we needed to make sure our program complied with the new rules and regulations.

We’ve had excellent feedback from our customers. They appreciate the program and the option of choosing to have overdraft protection. We’ve found that most customers want it.

When we initiated the Strunk program, we were advised by the company not to try and make a lot of changes to it. Keep it structurally the same and the product’s performance will remain consistent. We were looking for an alternative revenue source to non-interest income for our bank and this program has provided it.”

Tom Beene

President & CEO
Visalia Community Bank
Visalia, California
Asset Size: $196 MM
Core Processor: Fiserv CBS

“What stands out in my mind about Strunk & Associates is their professionalism. They came in and met with us, then introduced their company and program. They asked questions of us, gathered information, then came back and presented a very impressive, low-pressure pitch. Their presentation consisted of a customized plan for our organization with estimated revenue numbers. We clearly knew what to expect and our expectations were met. In fact, they understand the value of the program and that impressed me.”
Training

“The second thing that stands out with Strunk & Associates was the efficiency in which they implemented the Overdraft Privilege Program and the way they trained our staff. Strunk representatives were attentive and supportive in every way. Not everyone gets it the first time. Your personnel have to be comfortable with the program for it to be successful.

So often I’ve experienced vendors who are skilled at front-end sales then hand it off to their implementation crew and they fall very short in delivering what the sales people promise. That’s not the case with Strunk. They worked well with our team and they are professional. When I buy into a program, I’m putting myself on the line. In Strunk’s case, they did everything they said they would do.

One more thing that impressed me – they grade very high in monitoring and follow-up. They helped us lay out a very straightforward way to monitor how the program performs. Every Manager, CEO and Board likes to see that type of clear and concise reporting. We get that from Strunk.”

“When I buy into a program, I’m putting myself on the line. In Strunk’s case, they did everything they said they would do.”

Jeanine Pelchat

SVP Retail Banking
Peoples Bank
Holyoke, Massachusetts
Asset Size: $1,650 MM
Core Processor: COCC

“We were interested in ways to improve our free-based income so we decided to put out feelers to various Overdraft Privilege Program (ODP) providers. We were very interested in the Strunk ODP program. We were also evaluating others. Frankly, we were bombarded with vendors wanting to sell us something. After looking at other companies, I realized I didn’t have a comfort level with them. When I asked other vendors questions that Strunk had answered thoroughly – they didn’t have answers. That told me something.”
Compliance

“Strunk & Associates is up to speed on all issues surrounding ODP, one of the most important of which is compliance. They understand state and federal regulations. That’s very important to me and it’s very important in our state of Massachusetts.

Implementation went without a hitch. After their sales team presented and sold us on the program, they assigned an engagement manager to implement it. They worked very well with our core processor, Connecticut Online. The system has to interface with your processor. All information must be consistent – from the ATM report, teller receipts, bank statements, all have to clearly represent the customer’s current balance and available balance. Strunk’s program does.”

Customer Response

“Customer response has been excellent. We found that reversing the first overdraft fee increased customer satisfaction as they readily accepted the service. We have generated the projected revenue that was quoted by Strunk & Associates and couldn’t be more satisfied with our decision to offer this solution.

If we have anyone who does not want to be on the ODP program, we offer them the opportunity to opt-out. We have had isolated cases where someone was charged an ODP fee and questioned it. We then offer to take them off ODP. To date, after explaining the program, no one has opted out.”