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

LOAN PRICING FORM

Customer

Officer

Note Number

Maturity Date

(A) Proposed line/loan amount

(B) Projected average loan outstanding

Projected average collected demand deposits, net of reserves

Projected time deposits net of reserves

(C)

Net bank funds employed

Cost of funds (C x Rate)

Administrative cost factor (B x percentage)

▪

Risk cost factor (B x percentage)

▪

•

Projected interest expense on time deposits

Activity charges on deposits

▪

•

Bank's profit objective pretax (B x percentage)

(D)

= Gross income required

-Fee (if any)

= Net interest income required

) Projected average loan outstanding

= Interest rate required

Rate proposed by officer

-9-