What is the Year 2000 (Y2K) issue?

The Year 2000 (Y2K) issue, which at times is called the Millennium Bug, is the possibility that some computer chips, applications and systems may not be able to process the change from December 31, 1999 to January 1, 2000.

How is the bank addressing customer concerns?

Community Bank of Central Wisconsin's main concern is to provide uninterrupted service to our customers at the turn of the century and beyond.  Since early in 1996 the Directors, Management and staff have considered  the Y2K situation seriously and immediately began working through phases the FFIEC (Federal Financial Institutions Examination Council) set as guidelines for the entire banking industry.  The progress on these phases have been reviewed by the regulators through site review to assure each bank is meeting mandated timelines and direction to become Y2K compliant.  The following are the mandated phases:

    1.    Awareness Phase - To define the Year 2000 issue, gain senior management support for the necessary resources, establish a Year 2000 program team and develop an overall strategy.

    2.  Assessment Phase - To assess the size and complexity of the issue and identify all hardware,  software, networks, ATMs, other processing platforms and customer and vendor interdependencies affected by the Year 2000 date change.  Identify resource needs, establish time frames and sequence Year 2000 efforts.

    3.  Renovation Phase - To implement code enhancements, hardware and software upgrades, system replacements, vendor certification and other associated changes.  Prioritize work based on the information gathered during the assessment phase.

       4. Validation Phase - To test all changes to hardware and software components.  Verify all connections and other systems.  Establish controls to assure the effective and timely completion of all hardware and software testing prior to final implementation.

       5. Implementation Phase - To obtain certification that all systems are Year 2000 compliant.

As of the first quarter of 1999, the Community Bank of Central Wisconsin has completed the five phases of the FFIEC guidelines.  Although our testing has proved our computer system, heating and air conditioning systems and all other critical systems will be operable on January 1, 2000, the Bank has taken one more important step.

Contingency Planning

The Bank has adopted a "Contingency Plan".  This Contingency Plan covers any emergency, Y2K, or any other disaster, which might cause the disruption of service caused by the malfunction of the computer system.  The Bank's Contingency Plan covers all aspects of the Bank including but not limited to Checking, Savings, Loans, Certificates of Deposit, Automatic payments and the ATM system.

The Bank has developed  a process by which all deposit and loan information will be tracked even if the computer system is not running.  The Board and Management of the Bank feels it is prudent business planning to prepare  for disruptions of its day to day business whether it be a Y2K issue or a natural disaster issue.

Conclusion

As a customer of the Community Bank of Central Wisconsin you may rest assure that all the necessary testing has resulted in the Bank's confidence that our customers will be served now and into the future with the same service they enjoy today.  If the unforeseen would occur, we are also confident our Contingency Planning will assure our customers that their accounts will be handled with accuracy and professionalism at all times.

Please feel free to contact Chris Elliott at the Community Bank of Central Wisconsin with any questions at 715-223-3998 or 1-888-464-1122.   The Community Bank of Central Wisconsin also has documentation on all of the processes we have gone through to prepare and test for Y2K.  This information is also available for your review at the Abbotsford/Colby office.