Case Studies

Centurion Designs Tailor-Made Disaster Recovery Plan for First Savings Bank of Angola

Client Profile
Institution: First Savings Bank of Angola
Address: 212 E. Maumee Street, Indiana 46703
Telephone: (219) 665-7556
President: George Gilbert
Electronic Data Processing Manager: Angel Ginzer
Bank Assets: $121 million
Date Founded: 1933
Branches: 1
Employees: 34
Jack Henry & Associates Software Solutions:
   CIF 20/20™ core processing
   Streamline™ platform
   Vertex™ Teller system
   Pinpoint Report Retrieval

A solution is only as good as its effectiveness for an organization. As president of First Savings Bank of Angola, George Gilbert has seen many vendors whose tactic is to propose a plan and then try to force the bank into their model. Not so with Jack Henry & Associates.

Throughout the years that First Savings Bank has used Jack Henry's CIF 20/20 core processing system, as well as several complementary products, the provider has consistently delivered flexible solutions. "Jack Henry has worked around our demands," Gilbert reports, "building solutions around us."

This way of doing business resonates with Gilbert because that's the way First Savings Bank relates to its own customers. An independent institution since 1933, the community bank has carved out a niche as a family-oriented lender. Unlike many big bank holding companies, First reaches out to customers with non-conforming lending. That means offering small loans with no minimum loan amount on applications. That, along with low service fees made possible through in-house processing, continues to bring new customers to the thriving bank.

Implementing a Full Business Recovery Plan
Part of First Savings Bank's customer commitment involves ensuring that operations continue in the event of a disaster. In the fall of 2000, a decision was made to update the old recovery plan that was limited to data processing and implement a full business recovery plan. Decision makers at the bank knew exactly who to call.

"In addition to Jack Henry's strong history as a company, they had built a reputation with us based on reliability," Gilbert explains. "We had no reason not to believe we would see the same type of quality in their disaster recovery services." That said, Jack Henry's Centurion™ Disaster Recovery Division was on the job.

Centurion personnel sat down with bank officers and began to flesh out a priority list regarding functions and tasks of each department. From that, Centurion developed a plan in terms of what needed to be on line first should a disaster occur. "They didn't try to dictate how our plan was going to be designed," says Gilbert, "because they readily admitted that every institution operates differently and has different priorities."

"In addition to Jack Henry's strong history as a company, they had built a reputation with us based on reliability. We had no reason not to believe we would see the same type of quality in their disaster recovery services as well."
          George Gilbert
          President
          First Savings Bank of Angola

Within three months, databases were developed and responsibilities designated within the organization. A very detailed plan emerged. "Now we have an actual blueprint of what to do in various disaster situations," Gilbert relates.

Abundant Benefits
Beyond disaster recovery, benefits have been realized that deal with day-to-day departmental operations. The information gathered has increased the knowledge of managers regarding operations details that go on in various areas of the bank. "As we continue to grow, year after year," shares Gilbert, "it's easy to lose sight of all the technicalities involved on a regular basis. Going through the business recovery planning process has greatly improved our efficiency and brought to light both internal and processing problems that were going unnoticed."

Gilbert elaborates, "Because of the amount of detail Centurion asked for, we were forced to really reexamine ourselves. We had previously taken a lot for granted and had rarely thought about tracking things such as CD or bank investments, for example, and evaluating backup procedures. Centurion has really opened our eyes and delivered a lot more than expected."

"Now we have an actual blueprint of what to do in various disaster situations." - George Gilbert

Test Results
With the plan completed and in place in March of 2001, all that remained was for it to be tested. The first annual testing of main data was performed at a Centurion hot site during the summer. To evaluate the business recovery process, Centurion was onsite at the bank, conducting exercises in which a disaster scenario was presented. First went through the necessary steps, determining what action would be taken to address the hypothetical crisis.

Gilbert learned that in spite of any plans set in place, there would always be variables. One of his responsibilities if the bank were to be damaged or destroyed would be to locate an offsite facility. "It's a workable plan," he says, "but it may not be as easy as we first thought to locate another place to operate." Gilbert now has a more realistic view of what needs to be done to accomplish this and other disaster recovery objectives. And because variables change, he states, "We know we must meet annually to revisit our plan if it is to be effective."

EDP Manager for First Savings Bank, Angel Ginzer, also learned some valuable lessons, going through the disaster recovery planning process. The test exercises revealed practical ways to improve the plan. For instance, the bank did not have enough supplies on hand to use at an offsite facility in the case of a disaster. Now they have those supplies.

Ginzer also gained insight by attending classes offered by Centurion at various conferences and listening to speakers who had actually been through disasters. First Savings Bank has been able to benefit from the shared experiences of these bankers. "One of the things we learned was not to take chances with backup," says Ginzer. "Doing a complete system backup every 6 months is not adequate. As a safeguard, we do it monthly now. At the same time, we do a printout of our tapes to make sure the information is there."

Another bank that had faced a disaster had problems with personnel getting past police barricades in order to enter the building and assess damage. Ginzer has therefore seen to it that key staff members at First have security badges to avoid a similar situation.

A Workable Plan
Centurion has made the recovery planning and maintenance process as simple as possible for the bank. "I like the fact that we have the actual tapes of databases they built so we can update them ourselves," says Ginzer. Phone numbers and addresses are kept current, as well as information surrounding any new equipment acquired. First also sees to it that employees receive the most up-to-date training with regard to their areas of responsibility.

When questions have arisen, answers have been just a phone call away. "Centurion has been very supportive," Ginzer asserts. Gilbert is quick to add, "If there's a problem, we can call one person. It's been our experience that Jack Henry communicates among themselves, then speaks with one voice to us. It's a turnkey-type of operation. If there's a problem, we get it fixed."

And if there's ever a large problem, the unthinkable kind a disaster, George Gilbert knows First Savings Bank of Angola is ready. "We feel confident that we can hit the ground running based on what we have prepared. We feel confident that it will work. And we're very glad that we chose Centurion to do it."

By Marsha Cansler