Case Studies

Frontier State Bank Turns to Centurion when Raging Forest Fire Forces Evacuation

Client Profile
Institution: Frontier State Bank
Address: P. O. Box 1030, Show Low, AZ 85902
Telephone: (800) 266-2933
Web site: www.frontierstatebank.com
Information Systems Manager: Jennifer Fite
Bank Assets: $97 million
Date Founded: 1982
Locations: 6
Employees: 76
Jack Henry & Associates Software Solutions:
   CIF 20/20™ core processing
   Streamline Platform Automation™
   Deposit and Loan
   Enhanced POD
   PassPort™ ATM
   PinPoint Report Retrieval™

"It will never happen to us." The mentality of many financial institutions is a dangerous one when it comes to anticipating disaster, according to Jennifer Fite of Frontier State Bank. The IS Manager knows all too well that the risk is real, as is the potential for devastating consequences.

When the Rodeo-Chediski Fire that ravaged the White Mountains of east-central Arizona was closing in on the town of Show Low, Frontier State Bank was ready.

Bank Tests for Disaster Recovery
With foresight that proved to be critical, the bank had signed a contract with Centurion™ in February of 2002, for disaster recovery support. The Jack Henry & Associates' division offered superior expertise and a number of recovery centers from which Frontier State Bank could operate, should the need arise.

The bank had implemented Jack Henry's CIF 20/20 core processing system and several complementary products in 2001 and had experienced nothing but outstanding customer service. For that reason, Jennifer Fite trusted Centurion to handle the bank's first test of day-end processing on its own.

"We were in a crunch time and had auditors coming in," explains Fite. The March test was therefore unattended by bank employees, who forwarded the necessary backup tapes to the recovery center in Sun Valley, California.

Not only did testing run smoothly, but FDIC examiners were quite impressed with the documentation provided and the full array of Centurion offerings and capabilities. Fite's plans were to undergo full recovery testing with Centurion the following year.

"I know without a doubt that whatever problem the bank may encounter, Centurion has the equipment and staff available to keep us up and running."
          Jennifer Fite
          IS Manager
          Frontier State Bank

Disaster Strikes
Only three months later, however, the bank was put to a real test. It was on June 22nd that fire officials called for evacuation of the once peaceful community of Show Low. The wildfire had already consumed 160,000 acres of ponderosa pine, ruthlessly destroying homes and businesses in its path.

The wall of flames now lurked within three miles of Show Low city limits, threatening the central operations center of Frontier State Bank, along with three of its six branches. Before the fire was ultimately contained on July 8th, 468,638 acres of pristine mountain terrain would succumb to its destructive force.

Bank officials understood the gravity of the situation and had anticipated the evacuation, making necessary plans as early as Thursday, June 20th. The AS/400 and all network systems would be relocated to the remote site at Camp Verde, Arizona, some 200 miles away.

Centurion Moves Recovery into High Gear
Centurion was notified, as there were not enough phone lines or communications at the Camp Verde branch to handle the complete network and AS/400. "We needed support to run the banking system from the Sun Valley recovery center," says Fite.

Centurion immediately issued procedures regarding backups that must be performed as well as the AS/400 shut down prior to transporting the equipment. The bank was closed on Friday, while the system was being moved. That morning, a bank employee flew to California to deliver the backup tapes and necessary paper supplies to a Centurion representative.

Centurion worked diligently through the weekend, loading backup tapes. And because Frontier State Bank outsources its network system, Centurion collaborated with the third party vendor to set up connectivity with the bank branches, then tested the backups to ensure all information was accurate.

As fate would have it, Fite was out of state when it became clear that the wildfire posed a threat to the bank. "Centurion stresses in its seminars the need for cross-training in the event that a bank's key personnel is not present during a disaster situation," muses Fite. "This was the first time in two years that I'd taken vacation."

Her vacation was cut short, however, and on June 24th, Fite found herself in Sun Valley. "When I walked in Monday morning, everything was done," she says. "Aside from nightly processing, all I had to do was the daily processing of NSFs and various functions that the Camp Verde staff was not equipped to handle."

"Centurion fought our battles and was the voice that got things done." - Jennifer Fite

Support that Goes the Extra Mile
For approximately ten days, Frontier State Bank ran from Sun Valley. At the onset of any problem, Centurion was quick to respond. Fite relates, "Because Centurion is tied to Jack Henry, they have available to them the resources and expertise to immediately resolve any support issues."

Even when a third party vendor was involved, such as the company used to drive the bank's ATMs, Centurion stepped in to help. "Centurion fought our battles and was the voice that got things done," Fite asserts.

Planning for the Future
Having come successfully through a disaster scenario, Frontier State Bank personnel learned how to better prepare for the future. For instance, the Camp Verde office wasn't equipped with the phone lines needed to operate as an effective backup site. These lines have since been added.

In addition, the site that houses nightly backup tapes was in the evacuated area. Because bank officials had advance warning, there was time to pull the tapes required for recovery. Next time, they may not be so lucky. That's why considerations are being made to move the backup site to a remote, and thereby safer, location.

During the evacuation period, customers had access to three branches and were taken care of. However, it became clear to Fite that the bank's disaster recovery plan was not as complete as it could be. "We had a plan in the event that isolated incidents might occur at different branches, but we had not addressed the possibility of the main processing center and half the branches being inaccessible." Fite hopes to engage Centurion to update the business recovery plan in the near future.

Had the bank not been aligned with Centurion when disaster struck, Fite speculates, "It would have taken at least a week to recover. The doors would have remained open, but we would have been forced to work in a time-consuming, offline environment, greatly increasing the chance for errors."

Thankfully, that was not the case at Frontier State Bank. Fite can now say based on experience, "I know without a doubt that whatever problem the bank may encounter, Centurion has the equipment and staff available to keep us up and running."

As for the upcoming test? It will be performed. But, laughs Fite, "We know it works!"

By Marsha Cansler