ARIZONA BANKERS ASSN. APPROVES FLOYD & ASSOCIATES AS PRODUCT SERVICE PROVIDER JMFA OVERDRAFT PRIVILEGESM program helps customers avoid negative consequences of bounced checks.

The Arizona Bankers Association, representing 57 banks serving more than 1 million accountholders, has selected John M. Floyd & Associates of Houston/Baytown TX to market to AzBA members a check overdraft program and other services. Overdraft protection is under attack by consumer groups and new regulations are being considered by the Federal Reserve System.

PHOENIX, AZ . . . HOUSTON – Oct. 28, 2003 – The Arizona Bankers Association (AzBA), based in Phoenix, has signed an agreement with John M. Floyd & Associates, Inc. (JMFA) of Houston, approving the profitability-consulting firm as a Product & Service Provider to its 57 banks serving more than 1 million accountholders.

     Among the companys primary products and services is JMFA OVERDRAFT PRIVILEGESM, a nondiscriminatory program which helps customers avoid the added costs and embarrassment of bounced checks and helps banks manage nonsufficient funds (NSF) items. The New Jersey and Wyoming Bankers associations have recently named JMFA to provide that product (www.overdraftprivilege.com) to their members.

     The public is demanding value-added services like overdraft privilege," CEO John M. Floyd has told both the Consumer Advisory Council to the Federal Reserve System and the Business Law Section of the American Bar Association. This discreet customer service avoids the humiliation of accountholders ‘making good on a check with a valued retailer. Neither the customer nor the merchant loses time or productivity in straightening out an NSF mess," Floyd said. Bank customers dont wind up on retailers bad check lists.

     Accountholders can avoid multiple NSF charges from a merchant, or larger late payment penalties on house notes, car loans and tuition payments. They also can prevent negative entries on their credit record or potential visits from law enforcement for inadvertent -- but repeat -- NSF checks," he added.

     With overdraft privilege, financial institutions have a premier opportunity to enhance customer satisfaction while increasing fee income, which has become progressively more important in the current economy as income from lending has fallen," Floyd explained.

     The AzBA diligently researched and compared suppliers and their capabilities before adding John M. Floyd & Associates to our select list of providers," said Kurt Bauer, Executive Vice President of the association. Our goal was to find a firm that clearly recognized our members philosophy of focusing on the customers well being. The AzBA realized JMFA also provides valuable consulting services and products to bankers and is pleased to have them a part of our Product & Service program."

        Overdraft Programs Vary Widely
     JMFA has installed profit improvement programs for more than three decades in 1500 financial institutions in 46 states, adding more than $5 billion in increased pre-tax earnings for its clients. The company also has successfully implemented variations of its overdraft privilege program in more than 400 banks, thrifts and credit unions. JMFAs overdraft privilege program (www.overdraftprivilege.com) is nondiscriminatory and 100% compliant with federal and state regulations, as well as with recently suggested changes," Floyd emphasized. Our program has a proven track record of producing more income and less charge-offs."

     The Federal Reserve System, at the urging of consumer advocate groups, including the National Consumer Law Center, has been reviewing compliance issues concerning bounce protection" and similar overdraft programs. Some critics contend the programs need stricter controls under the Truth in Lending Act, however, the Fed decided March 28 to make no regulatory changes at this time, but to continue gathering information on the programs.

         Floyd has been speaking from coast to coast, emphasizing the multiple benefits of overdraft programs, as well as the unfair practices endemic to the implementation, marketing and management of some overdraft programs. Some bounce or overdraft protection programs are discriminatory, over-promote the service, under-educate consumers on its use and base overdraft limits on a mystery matrix," he has stated.

About the AzBA:
The Arizona Bankers Association, founded in 1903, is a trade association established to serve the needs of the states commercial banks and thrift institutions. The ABA provides continuing education, develops and monitors state and federal legislative agendas, disseminates information on all facets of the financial services industry and promotes the public image of financial institutions, among other activities. The ABA exists to assure and to promote the continued strength of banking institutions throughout the state.

About JMFA:
JMFA, founded in 1973, also offers operational, financial and delivery system re-engineering services to financial institutions. The company's diverse consulting assignments have brought positive results to more than 1,500 banks, thrifts and credit unions in 46 states and Central America, adding more than $5 billion in increased pre-tax earnings for its clients. The company has installed variations of its overdraft programs in more than 400 financial institutions in the past 15 years. JMFA also is recognized nationally for its training, incentive and earnings enhancement programs, as well as its product, service, pricing and technology improvement consulting services.

JMFA OVERDRAFT PRIVILEGESM is a service mark of John M. Floyd & Associates, Inc.
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FOR MORE INFORMATION OR INTERVIEWS:
John M. Floyd, CEO, John M. Floyd & Associates, Houston, 800-409-8670 or 281-424-3800;
Web site, www.overdraftprivilege.com; e-mail, John.Floyd@jmfa.com

Preston F. Kirk, APR, Kirk Public Relations, Austin TX, 830-693-4447; kirk@281.com

Henry Hyde, VP-Member Services, Arizona Bankers Association, 602-258-1200, hhyde@azbankers.org