INTERNET / ELECTRONIC BANKING REVIEW

When applicable, we will 1) review the following "Areas of Review",
2) provide a written report of our findings, and 3) provide management
with recommendations on how to strengthen the institution’s electronic
banking program.

Areas of Review
• Formal Policies and Procedures
• Management Oversight
• Risk Assessment and Control
• System Usage, Performance, and Monitoring
• External Security – Security issues relating to customers
  and outside threats
• Internal Security – Security issues relating to
  institution’s employees
• Daily Operations and Processing Procedures
• Internal Controls
• Integration of Electronic Banking into Traditional
  Banking Operations
• Customer Service
• Compliance with Consumer Laws and Regulations -
  Including reviews of website, disclosures, etc.
• Periodic System Maintenance
• Vendor Support
• Software Issues
• Hardware Issues
• Internet Service Provider Issues
• Disaster Recovery and Contingency Planning

Along with the review, we will provide specific guidance on how to correct
any deficiencies. For example, if your policies are not adequate, we can
provide sample policies to correct any deficiencies.

ADDITIONAL INTERNET / ELECTRONIC
BANKING SERVICES

For financial institutions that are considering developing or have recently
developed an Internet Banking Program, we can help in the following areas:

• Development of Formal Policies and Procedures
• Risk Assessments and Development of Controls
• Development of Daily Operations and Processing Procedures
• Development of Internet Banking Internal Controls
• Integration of Electronic Banking into Traditional
  Banking Operations
• Development of Customer Service Procedures
• Development of Procedures to help the Institution Comply
  with Consumer Laws and Regulations
• Development of Disaster Recovery and Contingency
  Planning Policies and Procedures

CREDENTIALS, SERVICES, COSTS, BENEFITS, AND
CONTACT INFORMATION

As you can see from our "Staff Credentials", our firm knows the banking
industry well. Our clients include only financial institutions and related entities.
Additionally, we have made it a priority to become and stay current on
internet and electronic banking issues.

We would welcome the opportunity to discuss ways in which our firm can
assist your financial institution. With regard to internet banking, this can
include:

• Performing one-time, annual, or ongoing Internet
  Banking Reviews
• Supplement the institution’s existing Information
  Technology Reviews (Audits)
• Perform integrated Information Technology
  Reviews/Internet Banking Reviews
• Helping management develop appropriate
  policies, procedures, and controls
• Helping management with the risk assessment process
• Helping management with upcoming or prior regulatory
  examinations or other regulatory issues

You will find the overall cost of our services to be very reasonable. Since we
have already developed audit programs and assisted other financial institutions
with their electronic banking policies and programs, there will be no need for
us to "reinvent the wheel" at your expense. Most bankers will experience a
lower total pricetag (including travel costs) for services offered by our firm
when compared to local service providers – assuming you can find a local
service provider with the necessary expertise.

You benefit from our experience in several ways:

• Management has more confidence in the institution’s internet
  banking program and related controls
• Financial institutions get the benefit of banking expertise in
  specialized areas without the cost of a full-time employee
• Financial institutions get less regulatory hassle
• Assignments get done quickly resulting in a lower dollar
  costs to the institution
• Assignments get done quickly resulting in shorter interference
  with the institution’s daily procedures
• Assignments get done quickly resulting in the ability to better
  prepare for that upcoming examination

Please contact us to discuss the ways in which we can help your institution. At that time we can also discuss the cost of our services. Thank you in advance for this opportunity to work together. (My staff and I are often out of the office but we try to return calls quickly.)

Thank you,

James D. Russell, CPA