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

Warning Thresholds for Total Risk-Based

Warning Thresholds for Total Risk-Based Capital CRE Concentration to Total Risk-Based Capital

Classified Asset to Total Risk- Based Cap

Equal or less than

> peers and <= 125% of peers

> 125% and <= 150% of peers

> 150% and <= 175% of peers

> 175% and <= 200% of peers

peers (2)

<10%

10.70%

10.96%

11.21%

11.47%

11.72%

> 10% and <=20%

10.96%

11.21%

11.47%

11.72%

11.98%

> 20% and <=30%

11.21%

11.47%

11.72%

12.23%

11.98%

>30% and <=40%

11.47%

11.72%

11.98%

12.23%

12.49%

>40% and <=50%

11.72%

11.98%

12.23%

12.49%

12.74%

>50% and <=60%

11.98%

12.23%

12.49%

12.74%

13.00%

12.23%

12.49%

12.74%

>60%

13.00%

13.25%

Warning Thresholds for Tier I Risk-Based Capital

Warning Thresholds for

Tier 1 Risk-Based

CRE Concentration to Total Risk-Based Capital

Classified Asset to Total Risk- Equal or less than

> peers and <- 125% of peers

> 125% and <= 150% of peers

> 150% and <= 175% of peers

> 175% and <= 200% of peers

peers (2)

Based Cap

<10%

9.16%

9.36%

9.57%

9.77%

9.98%

> 10% and <=20%

9.36%

9.57%

9.77%

9.98%

10.18%

>20% and <=30%

9.57%

9.77%

9.98%

10.18%

10.38%

> 30% and <=40%

9.77%

9.98%

10.18%

10.38%

10.59%

>40% and <=50%

9.98%

10.18%

10.38%

10.59%

10.79%

>50% and <=60%

10.18%

10.38%

10.59%

10.79%

11.00%

>60%

10.59%

10.79%

11.00%

10.38%

11.20%

Warning Thresholds for Tier I Leverage Capital

Warning Thresholds for

Tier 1 Leverage

CRE Concentration to Total Risk-Based Capital

Classified Asset to Total Risk- Equal or less than

> peers and <= 125% of peers

> 125% and <= 150% of peers

> 150% and <= 175% of peers

> 175% and <= 200% of peers

Based Cap

peers (2)

<10%

7.64%

7.82%

8.00%

8.18%

8.35%

> 10% and <=20%

7.82%

8.00%

8.18%

8.35%

8.53%

>20% and <=30%

8.00%

8.18%

8.35%

8.53%

8.71%

>30% and <=40%

8.18%

8.35%

8.53%

8.71%

8.89%

>40% and <=50%

8.35%

8.53%

8.71%

8.89%

9.07%

>50% and <=60%

8.71%

8.89%

9.07%

9.25%

8.53%

>60%

8.71%

8.89%

9.07%

9.25%

9.43%

MONITORING ACTIVITIES

• Capital Report: This report will be used to monitor the Bank's Total Risk-Based Capital, Tier I Risk- Based Capital and Tier 1 Leverage ratios. Computation of the ratios will come from the following sources: • Balance Sheet: (i) Assets and Liabilities: balances will come from the download of information. (ii) Equity: balances will be reported for common stock, unearned compensation, unrealized gain/(loss) on securities, preferred stock and year-to-date earnings through the previous month-end. (iii) Earnings: balances will come from a pro-rata amount of projected earnings from the current month. The CFO will provide an estimate of current month's earnings to be used in the model. (iv) Off-Balance-Sheet:

Capital Policy

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