TECHNOLOGY INTEGRATION TO INCREASE COMMERCIAL REVENUE AT PEOPLESBANK

AVON, CT, September 15, 2003 - PeoplesBank of Holyoke, MA found a winning combination for its commercial portfolio when COCC, its core data processor, integrated Baker Hill's business management solution with the core application.

"The COCC/Baker Hill system enables our lenders to spend more time lending," said PeoplesBank Executive Vice President, Douglas Bowen. "Our support staff is better able to serve commercial customers, and much of the administrative work is automated. Overall, we have a platform for growth without the corresponding increase in expense."

The desire to serve commercial customers cost-effectively while growing the overall portfolio is particularly keen at PeoplesBank where commercial loans now stand at 27% of the bank's $882 million assets. Approximately 65% of the bank's commercial portfolio consists of investment real estate, and 35% is in C&I, which the bank is looking to grow through the COCC/Baker Hill solution.

"These are 'high touch' loans, so we interact frequently with our customers," said Jacqueline B. Charron, PeoplesBank's Vice President - Commercial Loans. "With the COCC/Baker Hill solution, we can use a team approach for customer contact. Because the sales, analysis and administrative information is standardized, we can find the information we need and serve any customer when they call."

Early this year, COCC capitalized on its group buying power by pooling together bank clients that were looking for the next level in commercial customer sales and support. The company negotiated a "wholesale" product arrangement with Baker Hill, agreeing to act as a clearinghouse for training, interface development, and product enhancements.

"COCC organized training for the entire group of Baker Hill customers," said Charron. "Much of that training was scheduled locally, minimizing travel expense and time out of the office. We appreciated the opportunities to exchange ideas with colleagues from other banks."

COCC also developed a special information interface from its core banking applications for Baker Hill's automated credit analysis. The bank receives retail information as well as commercial information for a complete customer profile. The information comes pre-linked from COCC's INSIGHT core applications so the bank can report on customer relationships such as owner, co-signer, and guarantor. Charron reports that the extract serves "as a real data mining tool that enables us to discover additional marketing opportunities."

Embarking on the system installation, PeoplesBank saw the opportunity to re-engineer many of its commercial lending functions. "Our staff has been finding all sorts of opportunities," said David J. Thibault - Commercial Credit Officer at PeoplesBank. "We found that our administrative staff could perform far more tasks because the information is now available to them. For example, they can follow-up with customers for documentation and produce reports that used to be the responsibility of our credit analysts. Even our sales people appreciate the uniformity of information and the ability to produce pipeline reports. It looks like we've got the right people doing the right jobs."

Thibault added that the bank is better able to respond to regulators because of the product's information tracking and report writing capabilities. "With the COCC/Baker Hill product, we can quickly identify the exceptions and list all missing items," said Thibault. "That reduces audit time."

Looking to the future, Charron added, "As our organization grows, information management becomes critical. The combination of COCC's in-depth customer information with Baker Hill's comprehensive sales, tracking and analysis tools gives us more time for activities that will retain current customers and attract new ones."

Further commercial product enhancements are in the works at COCC. President and CEO, Richard A. Leone, said, "Commercial customer relationships are a key component of today's community banking strategies. We are confident that our solutions tap the strengths of the latest technology in support of our clients' business plans."