Bank Directors Seminar, Coeur d'Alene, ID, September 15-17, 2019

LOAN QUALITY REPORTING

RATIOS

1. ALLL to total Loans 2. ALLL to nonperforming loans

3. ALLL to criticized loans 4. Criticized loans to Equity 5. LL Reserve to annualized charge-offs 6. Provision to average total loans 7. Charge-offs to total loans 8. $ weighted overall risk grading of portfolio

9. $ weighted overall risk grading by department/loan type/industry sector 10.$ weighted risk grading of newly approved loans by department 11.Recoveries to charge-offs 12.Nonperforming loans plus OREO to loans plus OREO 13.Nonperforming assets to equity plus LL Reserve

REPORTS

1. $ Level of nonaccrual loans by month 2. $ Level of watch list credits by month

3. Past due trends by officer, location and sector (30-59, 60-89 & >90) 4. $ and # of loans with collateral exceptions (30-59,60-89 & >90) 5. $ and # of loans with credit exceptions (>90) 6. Renewals of criticized loans 7. Charge-offs by loan type 8. Loans for which interest accrued and not paid last 90 days 9. Loans renewed 3 times in last 18 months 10.OREO activity 11.Changes in balances criticized assets 12.Overdrafts (>7 days and >14 days) 13.Loans past due > 3 times in past 6 months 14.$ and # loans approved with exception to policy 15.New loans funded with exceptions (# and $) by officer 16.Borrowing base compliance report 17.Collateral deficiencies in loans secured by marketable securities 18.Loan covenant compliance report 19.Appraisals over 12 months old 20. Real estate loans showing declines in appraised values

21 Interest capitalized 22. Legal/House Limit 23. Funding of criticized loan commitments 24. Collections of charged-off loans 25. Loans to officers, directors, insiders

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