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

Asset/Liability and Investment Committee AGENDA -- xx/xx/1 9

I.

Review and Approve Minutes of Last Meeting

II.

Review of Current Environnzent, Risk Profile, Financial Structure and Trends

1. Net Interest Margin

1. Interest Margin Analysis Report 2. Selected Ratios and Financial Highlights -- Actual versus Budgeted

3. Interest Income and Expense Analysis ($ and %) 4. Peer Comparisons, Trend analysis and Projections

2.

Interest Rate Sensitivity 1. Interest Rate Sensitivity - Earnings and Capital at Risk 2. Interest Rate Risk Exposure - Trends and Analysis 3. Policy Risk Limits and Compliance

3. Investment Portfolio 1. Market and Sector Analysis -- Performance Trends and Market Values 2. Projected Cashflows/Shocks and Maturity Distribution 3. Portfolio Duration Analysis and Value at Risk 4. Cash flow, pledging and liquidity adequacy 5. Credit Quality -- Municipal and Corporate Securities 6. Mortgage and Callable Security Analysis 7. Quarterly Strategy - Current Position, Purchases and Sales 8. Policy Compliance 4. Capital, Liquidity Position and Funding Alternatives 1. Balance Sheet and Funding Mix - Current and Projected 2. Liquidity Analysis, Projections, Ratios and Trends 3. Deposit and Loan Maturities -- Growth/Depletion Trends 4. Capital Position/Utilization and Leverage Alternatives 5. Policy Compliance

5. Loan and Deposit Pricing

I. Competitive Environment - Loans and Deposits 2. Market and Interest Rate Environment 3. Repricing Opportunities 4. Overall Funding Needs and Alternatives

III. Analysis of External Factors and Strategy Development

1. Economic and Interest Rate Outlook and Competitive/Peer Analysis 2. Expected Loan Demand, Deposit Grovvtliffrends, Risk Profile and Capital Needs 3. Assessment of Prior Strategies compared to Expectations 4. Opportunities: Investments, Loan Terms and Pricing, Deposit Pricing and Funding Alternatives 5. Alternative Strategies to be Evaluated and Modeled - Rewards vs Risk 6. Formalize Strategies -- Actions to be Taken

IV. Meeting Calendar for 2019 - 2020 and Adjournment

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