To: Employees of First Federal Bank From: Haylie Schuster, Head of IT Subject: Recent deposit posting date errors

Date: October 5, 2013 Finally the recent problems with our new system have been fixed. This memo is in regards to the incorrect deposit dates and the bounced checks that customers have brought to our attention. Recently we have had an increased amount of inquiries from our customers regarding bounced checks even when the deposits were made before the 2 p.m. deadline. After an information flow audit and a technology audit we discovered that the steps for the new system to properly close out were not always executed. This has been pinpointed as an internal issue where the prompt screen was not coming up when needed and also the screen being too small to ensure the correct button is selected. Without that prompt screen the consolidate/merge step (which is essential at the 2 p.m. reconciliation) was not closing out properly, resulting in deposits not being posted until the next day. So after this diligent inspection from our amazing technical team they figured out that the system was not prompting employees correctly so that is what has been fixed. To ensure this is no longer a matter these steps should be carried out at each 2 p.m. reconciliation to ensure that our customers will no longer have bounced checks due to a flaw in our new system. I am hoping that once everyone gets a chance to work with our new system you will all agree that it has its perks. So the following steps should be taken to help ensure the system is properly closed out and deposits post on the appropriate date. 1. 2. 3. 4. Close Register Consolidate/merge Post

If these steps are taken this will eliminate many of the discrepancies with deposits and our dislike with this new system and we can direct our jokes towards Whitney and her horrible coffee making skills instead of me. I appreciate all of your patience through this very distressing time that has caused more work for all of you.

Thank you all, Haylie Schuster