Treasury Management Essentials Sponsored by: Copyright 2012 Wintrust Financial Corporation. All Rights Reserved. ALIGNING BANKING SERVICES WITH YOUR ORGANIZATIONAL NEEDS Moderator Jennifer LeTourneau Vice President, Wintrust Treasury Management Panelists Brian Koehler Accountant, Village of Lombard Scott L. Hirsch, CPA-PFS, CFA, CFP®, CFO, The Benida Group LLC Aimee Briles Vice President, Wintrust Government Funds

2 Treasury Management Essentials sponsored by Wintrust Commercial Banking Copyright 2012 Wintrust Financial Corporation. All Rights Reserved. Communication –Regular and effective –Open and honest Commitment –Will work through unique situations –Understands your industry/business –Fully engaged Collaboration –Mutually beneficial –Profitable and productive OPTIMAL BANK RELATIONSHIP

3 Treasury Management Essentials sponsored by Wintrust Commercial Banking Copyright 2012 Wintrust Financial Corporation. All Rights Reserved. Customer Service Woes –No explanations on how/why things work –No one takes ownership of issues –No urgency to find solutions or complete tasks –Endless myriad of voic boxes Communication issues –Withholding information –Blindsiding DYSFUNCTIONAL RELATIONSHIPS

4 Treasury Management Essentials sponsored by Wintrust Commercial Banking Copyright 2012 Wintrust Financial Corporation. All Rights Reserved. Bank Turnover Poorly trained Treasury Reps Slow problem resolution Siloed product groups Lack of resources Introspective Client Turnover Inexperienced and change –averse staff Non-responsive contacts Reactive communication Siloed product groups Lack of resources OBSTACLES TO IDEAL RELATIONSHIP

5 Treasury Management Essentials sponsored by Wintrust Commercial Banking Copyright 2012 Wintrust Financial Corporation. All Rights Reserved. Bank Deliver on commitments Do homework Understand business Regular relationship review Offer proactive solutions Follow up Respond quickly Be available Communicate, communicate, communicate Client Timely reconcilement Monitor accounts daily Utilize dual control Maintain IT protection Restrict access Dedicated PC Talk regularly Be open Don’t procrastinate Trust your gut BEST PRACTICES - KEEPING THE RELATIONSHIP STRONG

6 Treasury Management Essentials sponsored by Wintrust Commercial Banking Copyright 2012 Wintrust Financial Corporation. All Rights Reserved. What are the important components of a banking relationship? –What are you looking for in a relationship management team? –Product offerings and delivery? –Customization of relationship/services? PANEL FEEDBACK

7 Treasury Management Essentials sponsored by Wintrust Commercial Banking Copyright 2012 Wintrust Financial Corporation. All Rights Reserved. Evaluates current banking relationship Provides information on new banking/TM services/technology Improve efficiencies Potentially lower costs through competitive bidding and/or negotiation Mediates political situations (internal and external) WHY SEEK FORMAL PROPOSALS?

8 Treasury Management Essentials sponsored by Wintrust Commercial Banking Copyright 2012 Wintrust Financial Corporation. All Rights Reserved. Are you actually willing to change providers? Understand your current contract, services, fees and relationship Determine minimum qualifications for proposers & list of banks to be included Determine team members to be involved PROPOSAL PREPARATION & CONSIDERATIONS

9 Treasury Management Essentials sponsored by Wintrust Commercial Banking Copyright 2012 Wintrust Financial Corporation. All Rights Reserved. Why explore other banks? –What were your goals? –Board/Senior Mgmt. driven? Contract expiring/fee increase? Are you open to actually changing banks? PANEL FEEDBACK

10 Treasury Management Essentials sponsored by Wintrust Commercial Banking Copyright 2012 Wintrust Financial Corporation. All Rights Reserved. How do you decide what banks to include in the proposal process? –Location convenience –Board/senior management driven –Bankers you know/have worked with –Product/service differentiation –Who internally should be included in the putting together and evaluating the proposals? PANEL FEEDBACK

11 Treasury Management Essentials sponsored by Wintrust Commercial Banking Copyright 2012 Wintrust Financial Corporation. All Rights Reserved. Be specific about your needs and “wants” Allow for question submission & pre-bidder conference Provide a copy of Investment Policy & Collateral requirements if applicable Provide electronic form of RFP and attachments (include any required agreements) Goal is “apples to apples” comparison – maybe even provide current analysis statement PROPOSAL PREPARATION TIPS – HELP BIDDERS AND YOURSELF

12 Treasury Management Essentials sponsored by Wintrust Commercial Banking Copyright 2012 Wintrust Financial Corporation. All Rights Reserved. Banks look at: Is the company financially strong? Length/experience of management team & Board Funding sources Concentration of funding “Back up” funds- Foundation/reserve accts. Outside firms – CPA, Attorney, etc. Companies should look at: Is the bank financially strong? Tenure of management team Work history of RM Support staff depth, breadth and credentials Convenience & service capabilities References from like entities using similar services EVALUATING US; EVALUATING YOU

13 Treasury Management Essentials sponsored by Wintrust Commercial Banking Copyright 2012 Wintrust Financial Corporation. All Rights Reserved. Ability to meet service requirements Creative suggestions for enhancements Industry experience of Bank & RM References Finalist Interviews Bank location Price guarantee EVALUATION PROCESS

14 Treasury Management Essentials sponsored by Wintrust Commercial Banking Copyright 2012 Wintrust Financial Corporation. All Rights Reserved. Low Cost vs. Best Value –Lowest compensating balance, lowest fees, best interest or earnings credit rate, individual price points –Bundled services or menu based –Access and per item charges –Activity retention fees –Discounts for online initiated transactions EVALUATION PROCESS – PRICE CONSIDERATIONS

15 Treasury Management Essentials sponsored by Wintrust Commercial Banking Copyright 2012 Wintrust Financial Corporation. All Rights Reserved. What were deciding factors in the evaluation process? Low cost vs. Best value - Would you allow for “pencil sharpening?” Is there something you did not include that you should have? PANEL FEEDBACK

16 Treasury Management Essentials sponsored by Wintrust Commercial Banking Copyright 2012 Wintrust Financial Corporation. All Rights Reserved. Possible roles for multiple banks –Concentration Bank –Disbursement Bank –Investment Bank –Lockbox Collections Some banks may meet certain product/service needs better Multi-bank information reporting Panel thoughts?? MULTIPLE BANK RELATIONSHIP?

Treasury Management Essentials sponsored by Wintrust Commercial Banking Copyright 2012 Wintrust Financial Corporation. All Rights Reserved. QUESTIONS? THANK YOU!