CapStar Bank acquired Athens Federal Community Bank and needed to assimilate their lending processes and systems within 4 months as Athens' legacy system was sunsetting. CapStar implemented Baker Hill's Bank2Consumer platform for consumer origination. They engaged the Athens team in planning, chose product "ambassadors" to advocate, and went live two weeks ahead of schedule. An expected listening tour afterward heard universal praise for the new platform and support instead of concerns, showing the successful integration of the two banks' processes and systems.

1. Chris Tietz and Robert LaMendola – CapStar Bank
Doug Johnson – Baker Hill
Assimilating an Acquired Institution
into Your Bank2Consumer
Implementation

2. Introductions
Doug Johnson
Senior Business
Process Architect
Baker Hill
Chris Tietz
Chief Credit Officer
CapStar Bank
Robert LaMendola
Senior Credit
Officer
CapStar Bank

3. Session overview
Case study of how CapStar Bank successfully completed the
acquisition of Athens Federal Community Bank into their
Bank2Consumer system including:
• Strategic considerations
• Planning and preparation
• Project execution
• Outcome and lessons learned

4. Meet CapStar Bank
• $2 billion in assets
• Located in Nashville, TN
• 5 office locations
• Primary focus:
– Corporate/Middle Market Commercial
– Private Banking

5. The challenge
• Limited focus on consumer/business banking
• Consumer lending at CapStar in 2016:
– Only consumer product was HELOCs
• Offered through Private Banking
• 50% average utilization
• 759 average score
– High quality, low yield, low volume, no fees and costly to originate!

6. The challenge—continued
• One product
• Manual underwriting process
• 3 FTEs
• A need to scale!

7. Building to scale
• 2017 executive decision to:
– Implement Baker Hill Bank2Consumer™ for consumer origination platform
– Based on expertise and prior smooth implementation
• But then something new happened…

8. Meet Athens Federal Community Bank
• $450 million in assets
• Located in Athens, TN
• 10 office locations
• Primary focus:
– Community
– Consumer
– Business Banking

9. Game changer!
• Complementary merger
• Different region of the state
• Products
• Business focus

10. But there was a complication
• Core conversion targeted for April 2019 but…
• The Athens LOS was sunsetting on 12/31/2018
– Athens origination process was totally dependent
on that LOS
• We had 4 months to:
– Merge our product offerings
– Merge operational and cultural aspects
– Complete training
– And, bring them up live on AppLink and
Bank2Consumer

11. How we did it
• Partnership, not a “cram
down”
• Leveraged Baker Hill to help
sell them on B2C
• Engaged AFCB team in
needs assessment
• But there was still some
apprehension

12. There were challenges
• How to assimilate the two disparate lending processes?
CapStar Athens Federal
Underwriting thresholds Higher Lower
Lending authority Centralized Decentralized
Lender expertise Commercial Retail
Market overrides Limited Individual authorities
Products Limited Broad range

13. There were concerns
• Concern for the unknowns
• We did say “trust us” a lot
• Chose “ambassadors” to be
the leading edge
advocates
• Leveraged Baker Hill for
AppLink and
Bank2Consumer product
changes

14. Did we make it? YES!
• The Ambassadors went live
on December 15th – two
weeks ahead of the sunset
• Went live system wide on
December 31st

15. Where are we now?
• Executive “Listening tour” in
late January
• Expected to hear some
concerns, but heard quite
the opposite
– Universal acclaim for the platform
– Accolades for the support team

16. Bottom line
CapStar Then CapStar Now
3 FTEs 3 FTEs
Supporting 5 branches Supporting 15 branches (200 miles apart)
A single HELOC product Robust product suite
Manual Fully automated application-to-close
process, including core integration

17. Thank you!
Doug.Johnson@bakerhill.com
Ctietz@CapStarBank.com
Rlamendola@CapStarBank.com