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| THE
QUICK START PROFIT ENHANCEMENT
PROGRAM (PEP) FOCUSES ON EASY TO IMPLEMENT
PROFIT OPPORTUNITIES WITHIN A BANK'S CURRENT
OPERATIONS, SUCH AS: |
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Check Collection and Cash Management |
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Data
Processing |
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Non
Credit Services |
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Loan
Operations and Loan Services |
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Interest Income and Interest Expense |
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Non
Interest Expense |
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Contract
Cost Reduction for check vendor contracts, ATM/Debit
card processing contracts, item processing services, core
data processing contracts with outside third parties,
Internet banking, and bill payment contracts. |
| This
program normally results in 10 to 20 recommendations that
are quick and easy to implement
Any
recommendations involving the negotiation of a lower
cost contract are negotiated by SVEJDA on your behalf.
Excluded
from this service are:
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Staffing
and Productivity |
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Repricing
of Non-Credit services requiring a change in service brochure
disclosure |
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New
Products and Services |
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Process
and Procedural reviews (sometimes called re-engineering) |
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Recommendations
to set interest rates |
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Recommendations
to increase the fee of NSF/Overdraft items |
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Any
type of overdraft privilege/bounce protection type of
program |
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Any
type of salary/compensation reviews or incentive compensation
systems |
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| PURPOSE
OF THE SVEJDA QUICK START PROFIT ENHANCEMENT
PROGRAM |
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| The
purpose of this program is to find ways to increase income
or decrease expenses in your bank within current operations…ways
with which your management and staff are comfortable.
We have discovered over 500 hidden profit enhancement
opportunities over the years. We know where to look for
them.
This
program will normally result in 10 to 20 recommendations
for profit enhancement that we think the bank's management
will be interested in considering. We try to keep the
number of recommendations small
enough so the bank can easily implement them
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| EXPECTED
BENEFITS RESULTING FROM THE SVEJDA QUICK START
PROFIT ENHANCEMENT PROGRAM |
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The
following table illustrates the average annual value of
recommendations presented for consideration, as well as,
the average annual value of recommendations approved and
implemented by client banks in relation to bank asset
size.
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| Bank
Asset Size |
Average
Annual Value of Recommendations Presented
to Bank for Consideration |
Average
Annual Value of Recommendations Approved and
Implemented by Bank |
| $25
Million to $50 Million |
$60,000.00 |
$40,000.00 |
 |
| $51
Million to $75 Million |
$75,000.00 |
$45,000.00 |
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| $76
Million to $100 Million |
$100,000.00 |
$55,000.00 |
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| $101
Million to $150 Million |
$120,000.00 |
$65,000.00 |
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| $151
Million to 200 Million |
$150,000.00 |
$80,000.00 |
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| $201
Million to $300 Million |
$200,000.00 |
$110,000.00 |
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| $301
Million to $500 Million |
$250,000.00 |
$140,000.00 |
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| Over
$500 Million |
$500
per $1 Million of Assets |
$250
per $1 Million of Assets |
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| The
scope of the SVEJDA Quick Start Profit Enhancement Program
is a review of your bank's current operations. However,
we specifically exclude productivity measurement and staffing
analysis. We try to find ways for your bank to make more
money in ways that are comfortable to your management
and staff, that is not sensitive to customers and by using
your current data processing system. This is not a strategic
business planning program , accounting program, or restructuring
of assets and liabilities. It is a program designed for
increasing earnings under current operations with common
sense, practical ideas.
On
average, the earnings enhancement comes from these areas:
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| Cash
Management and Check Collections |
10% |
| Data
Processing |
10% |
| Loans
and Loan Operations |
15% |
| Noncredit
Services |
40% |
Interest
Income/Interest Expense
(non-sensitive niche areas)
|
10% |
| Contract
Cost Reduction |
10% |
| Miscellaneous
Non-Interest Expense |
5%
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| We
will normally have one or two consultants working directly
with your bank. Much of our analysis, research, market
surveying and report preparation is done by additional
staff at our offices.
Following
is an outline of the typical SVEJDA Quick Start Profit
Enhancement Program:
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Visit
to Financial
Institution
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Purpose
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Length
of Visit
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Elapsed
Time From First Data Gathering Visit |
| First |
Data
Gathering |
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1
day for banks <$200 Million |
----- |
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2
days for banks
> $200 Million
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| Second |
Present
written recommendations to your management
team |
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3
hours |
28
- 35 days |
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| N/A |
Call
bank to schedule a telephone conference
for the bank to tell us what their decisions
are |
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N/A |
30
days following presentation of recommendation |
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| N/A |
Bank
reports its decisions regarding recommendations
by telephone conference with Svejda
and Company, Inc. |
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N/A |
30
- 45 days following presentation of
recommendations |
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Typically,
we present 10 to 20 of the best profit enhancement opportunities
that we can find for your bank. This makes the project
easy to manage for quick profit enhancement results.
Many of the approved recommendations can be implemented
quickly and easily on the same day as approved.
Any
recommendations involving a contract cost reduction
negotiation are negotiated by SVEJDA on your
behalf.
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| KEY
FEATURES OF THE SVEJDA QUICK START PROFIT
ENHANCEMENT PROGRAM |
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| Our
focus for this service is finding hidden profit opportunities
within current operations that are easy to implement and
not customer sensitive. |
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The service includes a review and appraisal of potential
contract cost reductions that can be negotiated (by SVEJDA)
for the following types of third party contracts: |
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ATM/Debit
Card Processing |
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Core
Data Processing |
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Item
Processing |
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Check
Vendor |
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Internet
Banking |
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Bill
Payment |
| This
is not a productivity, time-motion study or staff reduction
program |
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Profit Enhancement may be from revenue increases or cost
reductions |
| There
is no risk to your bank. The annual increase in earnings
(before taxes) to your bank must be at least three (3)
times our one time fee (except the first $20,000 of annual
benefit, where the benefit is two (2) times our fee). |
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We pay our own expenses. Therefore, the only cost to your
bank is the project fee. The fee is contingent on recommendations
approved by your bank. If you approve none of our recommendations,
there is no cost to you. |
| We
only need one or two days of data gathering on site with
1 or 2 consultants |
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Each project normally results in 10 - 20 recommendations
for profit enhancement. |
| Recommendations
will normally be ready to present in a written report
within four to five weeks following our data gathering
visit. |
The
average annual increased earnings (before taxes) to expect
from this Program are:
|
| Bank
Asset Size |
Average
Annual Value of Recommendations
Presented to Bank for Consideration |
Average
Annual Value of Recommendations
Approved and Implemented by Bank |
| $25
Million to $50 Million |
$60,000.00 |
$40,000.00 |
|
| $51
Million to $75 Million |
$75,000.00 |
$45,000.00 |
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| $76
Million to $100 Million |
$100,000.00 |
$55,000.00 |
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| $101
Million to $150 Million |
$120,000.00 |
$65,000.00 |
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| $151
Million to 200 Million |
$150,000.00 |
$80,000.00 |
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| $201
Million to $300 Million |
$200,000.00 |
$110,000.00 |
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| $301
Million to $500 Million |
$250,000.00 |
$140,000.00 |
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| Over
$500 Million |
$500
per $1 Million of Assets |
$250
per $1 Million of Assets |
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Actual
results vary considerably from one bank to another. |
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You
have full control over which recommendations are approved
for implementation |
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The
program is not disruptive to your staff or ongoing operations |
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We
like to involve your staff for their ideas, so they feel
like they are contributing, but without disrupting their
jobs. |
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There
is no upfront fee or deposit payable before the Program
starts. The fee is paid only after our written recommendations
are presented and you feel comfortable that our guarantee
will be satisfied. |
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Approved
recommendations can be implemented quickly and easily.
Many of the recommendations can be
implemented on the same day they are approved. |
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| HOW
MUCH OF YOUR STAFF'S TIME WILL THIS PROGRAM
REQUIRE? |
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| This
program has been designed to be non-disruptive. The following
features of the Program emphasize non-disruption. |
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We
keep data gathering visits short. |
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About
80% of work that goes into Program is done in our offices. |
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Program
does not require detailed logging or record keeping by
your staff. |
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Implementation
of approved recommendations will be quick and easy. Many
can be implemented the same day they are approved. |
