Background

•   Founded by Francis E. DiBacco, Chairman and CEO.

•   A proven 35-year track record of bank fee review services.

•   Company established to help organizations interpret their

bank service fees.

1

How do banks price their services

•   Bank fees are set on “what the

market will bear.”

•   Not all bank fees are created equal.

•   Banks typically increase fees both

vertically and horizontally.

2

The banking environment is ever changing

•   Bank earnings are under pressure from: –  The current economic environment

–  Banking regulators

–  U.S. Congress and Senate

•   The composition of bank earnings has shifted over the last 30 years from margin to fee income brought on by their need to:

–  Reduce volatility in earnings from margin

–  Reduce balance sheet growth and risk

–  Reduce leverage and preserve capital

•   Banking fees will continue to trend higher!!

3

Our process •   We offer specialized, in-depth and incisive analysis

of your current depository relationships and identify opportunities to reduce fees being paid.

•   Depository Diagnostics, internally developed and patented bank fee analyzer software.

•   Five step comprehensive review... more than just lowering fees:

1.  Review – low and non-earning asset 2.  Analyze – bank fees

3.  Study – all product groups (ACH, LBX, WIRES, ETC.) 4.  Drilldown – each subsidiary account

5.  Diagnose – unit costs of product groups, ratios 4

The project funds itself

•   Compensation is paid on a 100% contingency basis – fees

are calculated on realized savings and only paid when you

save money.

•   The DiBacco team will provide a thorough analysis with

minimal involvement required from your staff.

5

Why can’t I do this myself

The answer is three-fold…

•   First – our patented bank fee analyzer software “Depository

Diagnostics” is proprietary and not available elsewhere.

•   Second – Today’s demands on financial executives and their team

make it difficult to dedicate the time and resources necessary to sort

through the maze of line items to identify errors and overcharges, as

well as the identification of efficiencies.

•   Third – The banking industry is in a constant state of change and we

are always up-to-date on the latest depository prices.

6

Why engage DiBacco

•   Our process is unique; no other company has our patented bank fee analysis software.

•   Our client base is extensive; hundreds of satisfied clients including many Fortune 500 companies.

•   Clients savings results are impressive; over $100 million cumulatively saved since 1991.

•   “No Risk” review.

•   DiBacco is paid on a 100% contingency basis.

•   Our review is independent and objective. We do not work for banks.

•   Our team does most of the work so your staff can focus on other tasks. 7

Appendix

The Tip of the Iceberg… is what others do...

RFPs

Internal Review

Seminars

Average Price Comparison

External Review Bank Support

...DiBacco Does It All!

Low - Non Earning Assets

Check Float – One Day/Two Day

Deposit Timeliness LBX, Armored Car

Each Product Group (PG)

ACH, LBX, Checks Paid, etc.

Components in Each PG

Actual Not Average Price Comparison

Product Groups

Unit Costs on LBX and Checks Paid, Diagrams, Ratios, Diagnostics

1 - Review Fee Comparison Actual and Average

6,000 Actual Analysis in Data Base

Benchmark to Other FED Fortune 1,000

Product Group Composition

Product Group (PG) Alignment

Review EVERY Line Item of EVERY PG

of EVERY A/C of EVERY Bank

PG Percentage Ratios

3 - Study

5 - Diagnose

4 - Drilldown

2 - Analyze

8

Banks

Drilldown of subsidiary accounts in the summary

Unit Summary Component 1 31713 2 2267 3 2516 4 0242 5 1805

Description Code Vol Price Total Percentage V Ttl V Ttl V Ttl V Ttl V Ttl

LBX PRODUCT PROCESSING COSTS 00475 125 0.03 3.75 0.83% 96 2.88 29 0.87

LBX PRODUCT PROCESSING COSTS 00506 871 0.05 43.55 9.59% 95 4.75 660 33.00 116 5.80

LBX MANUFACTURED COSTS 00530M 3 85.15 255.45 56.24% 1 85.15 1 85.15 1 85.15

LBX OTHER PROCESSING COSTS 00518 101 1.50 151.50 33.35% 36 54.00 20 30.00 30 45.00 15 22.50

DEPOSIT PRODUCT PROCESSING COSTS 22000 1 602.30 602.30 56.42%

DEPOSIT MANUFACTURED COSTS 21000 1 10.00 10.00 0.94%

DEPOSIT OTHER PROCESSING COSTS 20000 1 455.20 455.20 42.64%

CHECKS PAID PRODUCT PROCESSING COSTS 32000 1 16,261.01 16,261.01 79.68%

CHECKS PAID MANUFACTURED COSTS 31000 1 2,163.72 2,163.72 10.60%

CHECKS PAID OTHER PROCESSING COSTS 30000 1 1,983.26 1,983.26 9.72%

ACH PRODUCT PROCESSING COSTS 42000 1 11,621.71 11,621.71 135.15%

ACH MANUFACTURED COSTS 41000 1 2,635.20 2,635.20 54.47%

ACH OTHER PROCESSING COSTS 40000 1 1,449.85 1,449.85 41.72%

WIRE PRODUCT PROCESSING COSTS 52000 1 5,089.25 5,089.25 80.39%

WIRE MANUFACTURED COSTS 51000 1 825.94 825.94 13.05%

WIRE OTHER PROCESSING COSTS 50000 1 415.25 415.25 6.56%

INFO REPORTING PRODUCT PROCESSING COSTS 62000 1 1,927.50 1,927.50 39.76%

INFO REPORTING MANUFACTURED COSTS 61000 1 785.51 785.51 16.20%

INFO REPORTING OTHER PROCESSING COSTS 60000 1 2,135.15 2,135.15 44.04%

MISCELLANEOUS PRODUCT COST 12000 1 15.98 15.98 0.78%

MISCELLANEOUS MANUFACTURED COSTS 11000 1 2,000.00 2,000.00 97.51%

MISCELLANEOUS OTHER COSTS 10000 1 35.00 35.00 1.71%

Total 50,866.08 56.88 119.90 163.15 113.45 0.87

PRODUCT GROUP (PG) GRID LOCKBOX COMPONENT

LOCKBOX 0.89% 454.25 Processing 5.06% 3.96% 20.23% 5.11% 100.00%

DEPOSITS 2.10% 1,067.50 Manufactured 0.00% 71.02% 52.19% 75.06% 0.00%

CHECKS PAID 40.12% 20,407.99 Other 94.94% 25.02% 27.58% 19.83% 0.00%

ACH 30.88% 15,706.76

WIRES 12.45% 6,330.44

INFO REPORTING 9.53% 4,848.16

MISCELLANEOUS 4.03% 2,050.98

Total 100.00% 50,866.08

Annual Total 610,392.96

FED's patented system converts the Analysis Summary data, while it is benchmarking prices, into incisive spread sheets. Each item is clearly identified by Product Group, a grouping of one specific

service (see Product Group Grid) by color coding each cell. FED isolates the PG's to determine how the Processing, Manufactured, and Other Costs components are aligned within the PG. Each

component is highlighted by color coding the font. The combined data becomes the basis for performing thousands of calculations to determine each PG's component composition. If the processing

costs are less than 80%, then that PG needs attention. In essence, EVERY line item of EVERY Product Group of EVERY account of EVERY bank will be subjected to FED's diagnostic review.

Analyze

Four different ways to show pricing

Bench marked

low to high

Banks

Drilldown

Product Costs: % Components

Manufactured: % Components

Other Fees: % Components

Component Comparisons

Study

9

F.E.Di Bacco, Inc. Bank Services Consultants 730 North Broad Street

Suite 205 Woodbury, NJ 08096

Phone 856-848-8040 Fax 856-848-9767

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