Community Bankers of Alabama Endorses JMFA for Overdraft Privilege Program; Popular Program Helps Consumers Avoid Hassle, Added Costs of Bounced Checks.

BAYTOWN, Texas & MONTGOMERY, Ala. -- Alabama consumers who inadvertently overdraw their accounts can avoid embarrassment, inconvenience and onerous costs, if their bank offers a new overdraft privilege program being extended through members of the Community Bankers Association of Alabama (CBAA).

CBAA Services, Inc., the wholly-owned subsidiary of the association, has signed an agreement with John M. Floyd & Associates, Inc. (JMFA) of Baytown, Texas, near Houston, naming the performance improvement firm as its "Preferred Partner" for the JMFA OVERDRAFT PRIVILEGE(SM) program.

The statewide banking trade association, formed in 1986, represents the interests of 130 community banks -- independently owned and operated financial institutions with $16 billion dollars in combined assets (www.cbaaonline.com). Financial organizations in more than 25 states have teamed with JMFA for its "courtesy pay" product (www.OverdraftPrivilege.com).

Discreet, Value-Added Service 

"The public is demanding value-added services like overdraft privilege," John M. Floyd, Chairman and CEO of JMFA, said. Floyd has repeatedly emphasized this point in presentations to the Consumer Advisory Council to the Federal Reserve System, the American Bar Assn. and the Consumer Federation of America. Floyd, who originated the automated program 17 years ago, has been an outspoken advocate for 'best practices" in the implementation and management of the popular service.

"This discreet service avoids the embarrassment of bank customers 'making good' on a check with a valued retailer or creditor. Neither the accountholder nor the merchant loses time or productivity in straightening out an NSF (nonsufficient funds) mess," Floyd says. "Accountholders don't wind up on retailers' bad check lists.

"They can avoid additional NSF charges from a merchant or expensive late payment penalties on mortgages, car loans or tuition payments. They also can prevent negative entries on their credit record or potential visits from law enforcement for inadvertent -- but repeated -- bad checks," he added.

"Alabama community banks with viable overdraft programs have the opportunity to enhance customer satisfaction while increasing their non-interest or fee income," noted Scott

Miller, President of CBAA Services. "Fee income has become more important to profit margins in an era of declining income from lending, bold competition from non-bank institutions and an increasingly stringent regulatory environment."

"We are proud to add John M. Floyd & Associates to our select list of endorsed providers," Miller said. "JMFA's portfolio of products coupled with its competitive pricing and well-recognized customer service clearly made it the best choice for our members."

"Our goal was to identify an outstanding provider that would combine all the benefits of an overdraft program with the community bank philosophy of focusing on the customer's well being," added Scott E. Latham, President and CEO of CBAA. "I'm convinced our relationship with Floyd will help our members implement consumer-friendly programs."

Overdraft Programs Vary Widely

JMFA, founded in 1973, is a leading provider of non-interest or fee income products to financial institutions. The company has installed profit improvement programs in more than 2,000 banks, thrifts and credit unions, adding billions in increased pre-tax earnings for its clients in 49 states and Central America. The company has implemented nearly 1,000 variations of its JMFA OVERDRAFT PRIVILEGE(SM) program in the past 17 years and is partnered with leading national core processors serving financial institutions.

"JMFA OVERDRAFT PRIVILEGE(SM) is nondiscriminatory and guaranteed to be 100% compliant with federal and state regulations, as well as with recently suggested changes," Floyd emphasized. "Our program has a proven track record of producing more income and less charge-offs for financial institutions than typical NSF programs."

He also disclosed:

--Of 18,000 financial institutions in the United States, as many as 3,000 are estimated to now have defined and communicated overdraft programs.

--The typical fee charged on an insufficient funds check is $17 to $35. The average in 2003 was $22.50.

--Studies indicate the average accountholder writes about 3.4 NSF items per year.

"A well-managed overdraft program is a win-win-win for the consumer, the merchant and the financial institution," Floyd said. "Additionally, automated programs help identify troubled accountholders for necessary counseling."

JMFA creates strategic programs, including PRIVILEGE MANAGER CRM(TM) software, specific to each bank, its organization and its market that maximizes all aspects of NSF revenue.

It then delivers expert training, accountholder education and software to assure successful implementation and full regulatory compliance.

About Community Bankers Association of Alabama

The Community Bankers Association of Alabama, founded in 1986, is a member-driven organization, representing about 130 community banks and more than 100 associate members. Its mission is to promote the preservation and continued development of community banking in Alabama through unified efforts of its membership and staff and by representing the political and educational interests of community banks within the state.

JMFA OVERDRAFT PRIVILEGE(SM) and PRIVILEGE MANAGER CRM(TM) are service marks of John M.

Floyd & Associates, Inc. PRIVILEGE MANAGER CRM(TM) is patent pending.