Peoples Bank Successfully Implements Community Banking Systems' Check 21 and Branch Capture

Business Wire, Nov 28, 2006

Electronic Delivery of Checks Increases Efficiency, Productivity

DALLAS -- Community Banking Systems (CBS), a provider of check imaging products and services for community financial institutions, was selected by Peoples Bank to enhance its check imaging system. Indianola, Iowa-based Peoples Bank uses CBS' check imaging system to electronically exchange imaged cash letters and clear transit items through the Federal Reserve Bank, eliminating costs associated with vehicle transportation of paper transactions via couriers and the end of day rush.

Founded in 1998, Peoples Bank outsourced its check imaging to a data center from its inception. In 2001, bank officials agreed to replace their imaging provider with an in-house solution that would increase efficiency. After consideration of several vendors, Peoples Bank chose CBS' solution for its superior ability to transmit all transactions via the Web, enabling the bank to reduce courier costs. CBS' imaging suite enables Peoples Bank to streamline bank operations, reduce item processing costs and to exercise more freedom with end of day cut off times.

"Using CBS' suite of check imaging products, we are able to provide our customers with the same benefits to which they have become accustomed while increasing our profitability," said Wayne VanderTuig, executive vice president of Peoples Bank. "Because we no longer outsource our imaging, we have increased operational efficiency and experienced tremendous savings from the discontinued use of courier services."

"Peoples Bank wanted an enhanced imaging system that brought their processes in house, helping them take better advantage of Check 21 legislation," said Sean Pennock, president of Community Banking Systems. "Through our longstanding relationship with the Federal Reserve, we enabled the bank to streamline its operations and continue its focus on the customer. Peoples Bank serves as a strong example of the benefits available to financial institutions that incorporate check image exchange to expand service offerings."

Portions of check imaging technology are protected by U.S. Patent Nos. 5,910,988 and 6,032,137, held by DataTreasury Corporation (DTC). DTC patents were issued in 1999 and 2000 for image capture, centralized processing and electronic storage of document and check information. Currently, it is the subject of a series of high-profile patent-infringement lawsuits DataTreasury has filed against a number of banks and financial-services companies. Through Community Banking Systems' patent license agreement with DataTreasury, CBS' bank and credit union customers do not have to worry about legal implications associated with the patent. For more information on the DataTreasury patents, visit www.datatreasury.com.

About People's Bank

Peoples Bank was established in 1998 to provide its community with a locally owned financial partner. Since opening, it has become the "Hometown" Bank of choice, making Peoples Bank one of the fastest growing independent banks in the Midwest. With two locations, the bank has grown to become one of the largest in Warren County, Iowa.

About Community Banking Systems

Dallas-based Community Banking Systems (CBS) employs the most advanced back office imaging technology built solely and specifically for community banks. With a unique combination of technology and process improvement expertise, CBS helps banks improve their customer service and reduce costs by streamlining their imaging operations. Commitment to the independent bank is reflected in the quality of customer care, the industry experience of the CBS team, the design of CBS' software products and the implementation of CBS services.

For more information, visit www.combanksys.com.