FM Bank Merger Report

Executive Summary On paper, the acquisition of one bank by another is a relatively simple task as you have the “Legal Day” and the ”Go-Live Day.” The challenge is preparing for these two critical days. Each year there are over 300 bank or credit union acquisitions in the US. The only thing they have in common is that they are time-based projects, driven by a sequence of events, managed closely by a detailed calendar. The calendar is an efficient common denominator as the technical, legal, HR and communication efforts are all intertwined. Certain technical tasks need to be accomplished before some of the marketing task can begin. Much of the marketing needs to be completed before human resources and marketing efforts can begin. A successful Go-Live is dependent on the accuracy and timeliness of the marketing tools.

At Murphy and Company, it has been our observation that having a strong master calendar is the best tool for planning merger communication at a high level.

§ Create a calendar across the 6 to 8-month window § Add in the important legal dates associated with the merger § Add in the local, federal and religious holidays § Create a series of marketing tools § Identify the most efficient places on that calendar to deploy the marketing tools

The purpose of the two-day on-site session was to introduce these concepts, lay them out on the table, and prioritize them for action. This report is focused on taking those items which during the session appeared to be most important, then creating the first draft of the calendar, what major events will appear on the calendar, and to highlight opportunities to accelerate or slow down the process. It is also our opinion that creating a calendar that includes months after the Go-Live date is critical so that in a relatively real time setting, management can review the success of the merger activities, have marketing communication tools at the ready and apply them as needed.

Primary gauge for success in a merger is the number of customers who successfully transitioned over and into their new accounts the acquiring bank. Secondary success points include:

§ Manageable customer service impact § Smooth IT migration § Cross sell additional products to acquired customers

CONFIDENTIAL

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JUNE 6, 2019