Page 20 - Membership Guide

It is important to keep in mind:

• The stretch for yield is already present in many facets of bank operations and lines of
business, ranging from pricing to re-evaluation of credit standards and consideration of
new lines of business that have different profitability and risk tradeoffs. And, as that
occurs, we will see boards and senior management searching for new innovative
products to increase the bottom line income.

• Our economy is more vulnerable to shocks, such as fiscal cliff, natural disasters etc. This
volatility challenge raises concerns of another recession, which, in turn, could have a
major negative impact on our housing market.

At this point you may be asking: How in the world can the bank address all of these concerns and what
exactly are the regulatory expectations? Just as important, how can we as a financial institution make a
profit?

At Compliance Alliance, we believe this can be accomplished by implementing a compliance framework
that is integrated throughout the bank and always keeps in mind the bank's operational view of the risk.

Integrating the management of all areas of risk offers tangible benefits. It ensures a comprehensive
coverage of risks while facilitating a more efficient allocation of resources and management attention.

This model is exactly what we at Compliance Alliance strive to provide for our member banks. We provide
a staff of attorneys and compliance specialists (who all have banking backgrounds) to assist our members
by providing them with an entire lineup of toolkits and hotline services to give them the opportunity to be
bankers.

Scott Daugherty serves as the President & General Counsel for Compliance Alliance. Scott has been an
integral part of its startup and growth since its inception in 2011. Prior to Compliance Alliance, he joined
the legal staff of the Texas Bankers Association in 2003, serving as the primary contact for the legal and
compliance hotline, while also tackling legislative issues. Scott brings a combination of community and
regional bank experience along with his legal expertise. Prior to law school, Scott enjoyed a career in
banking with a broad background that includes retail and branch management and consumer and
commercial lending responsibilities. He is one of the leading bank regulatory, compliance and legal experts
in the nation.

Compliance Alliance offers a wide variety of compliance support solutions. To learn how to put them to
work for your bank, call us at (888) 353-3933 or visit compliancealliance.com.