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Capital City Bank Case Study

Professional Vendor Contract Review Provides Bank with the Right Services at the Right Prices

Established in 1892 as the Neese Brothers Bank, $435 million Capital City Bank is headquartered in Topeka, KS, with 10 full-service locations in Topeka and nearby cities of Lawrence and Overland Park. Capital City is focused on serving individuals and small to mid-sized businesses, placing emphasis on customer service and keeping pace with advances in technology.

Focus on continuous improvement leads to contract review

As part of its on-going efforts to improve the banking experience for its customers, remain competitive in the market and keep its expenses in check, Capital City management decided it was time to undergo a review of its service contracts.

“While we had good relationships with our vendors, we had no way to measure the current rates and terms of our contracts against what was available in the marketplace,” said Capital City CEO Bob Kobbeman. “We wanted to make sure we were getting the right fit at the right pricing.”

Maintaining long-term business relationship results in substantial savings and added benefits

As a long-time JMFA client, Kobbeman did not hesitate to contact his company representative to discuss the bank’s contract review needs. "The number one reason I felt comfortable contacting JMFA was the success we have had with their other services,” he explained. “We have offered their overdraft product – JMFA OVERDRAFT PRIVILEGE® – for 15 years and have worked with the company’s consultants on other profit and performance enhancement opportunities."

According to Kobbeman, the bank had JMFA review a variety of service contracts, including its data processing agreement. As a result, Capital City was able to save $120,000 per year over a five-year term for data processing services, and achieve smaller savings on other contracts. The bank was also able to add new products based on expert pricing knowledge and guidance on bundling services. "This enabled us to get better pricing on additional tools that we could use internally to support our data processing efforts, as well as some new services that would benefit our customers," he said.

In addition to JMFA’s review and renegotiations expertise, Kobbeman explained that the company’s intelligence database was a tremendous resource for the bank. "Many service contracts are complex and require a great deal of time to review line-by-line. After working through this process with JMFA’s professional consultants, our staff learned a great deal about what to look for in contract language and terms, as well as how to couple services for more attractive pricing."

He continued, "JMFA’s involvement greatly leveled the negotiations playing field and made the process totally painless for everyone. We came away with a new awareness that we have been able to carry over to other contract reviews."

For best results, start process early with contract expertise on your side

Kobbeman recommends that banks take the time to review vendor contract terms well in advance of the renewal date, in order get a better understanding of the scope of services they should be getting. He credits JMFA’s organized methodology and industry knowledge for providing a good payoff in terms of savings for the bank. "Plus, thanks to JMFA’s contingency based fee, we weren’t out any money for the review and renegotiating process."


Like banks across Michigan, ChoiceOne Bank in Sparta is committed to providing its customers with products and services to support their financial well-being. With roots dating back to 1895, when it was established as a private bank, ChoiceOne has continued to grow and demonstrate their commitment to their community.  With more than $600 million in assets they are focused on helping the individuals, families and businesses throughout western Michigan seek financial well-being.


ChoiceOne Bank provided its personal banking customers with an overdraft program to protect them from the inconvenience and added expense of having a returned item. However, ChoiceOne management discovered that with the JMFA OVERDRAFT PRIVILEGE® program there were some additional advantages that would enhance their program offering. Not only were its customers provided a valuable financial safety net, the bank was also protected from regulatory scrutiny by JMFA’s written 100 percent compliance guarantee.


After reviewing the program’s many benefits, ChoiceOne determined that JMFA was the best overdraft provider for the newly merged institution. The company's compliance guarantee was at the top of the bank's priority list as regulatory uncertainty continued on financial products.


After implementing JMFA OVERDRAFT PRIVILEGE®, the bank realized an increase in its non-interest income that allowed it to thrive in difficult economic conditions, This boost to the bottom line also gave the bank one of the highest non-interest income percentages among its peer group. 

Plus, JMFA’s program has helped the bank’s staff manage a more efficient program with such features as:

  • reports which alert staff to excessive overdraft activity;
  • management of risk for all negative balance accounts, not just those in the bank’s overdraft program;
  • reduced risk associated with charge offs;
  • a streamlined collection process; and
  • periodic reviews and recommendations regarding any necessary modifications of program processes and procedures.

Another benefit is the program’s employee training component, which has provided the staff with all of the information and materials they need to explain the program to customers and help them get the most benefit from from the financial safety net it provides. Furthermore, the program’s Privilege Manager CRM® software helps to take the guesswork out of managing an effective overdraft strategywhich translates to improved customer service.


As the economic forecast continues to be somewhat uncertain and banks continue to face challenges from possible regulations and legislation that threaten revenue, the bank appreciates the advantage a program like JMFA OVERDRAFT PRIVILEGE®. It turns out that the benefits are a win-win for both the bank and its customers

About JMFA

JMFA is a leading provider of profitability and performance-improvement consulting. For more than 35 years, JMFA has been recognized as one of the most trusted names in the industry, helping financial institutions reach their goals. JMFA is recognized for earnings enhancement and expense control programs, executive placement, as well as product, service, pricing and technology-improvement consulting. Simply stated, JMFA’s programs and services are designed to increase income or reduce expenses. JMFA is proud to be a preferred provider for performance-enhancement consulting services among many industry groups.

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