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

Retention and Growth of Core Deposits — An Introspective Analysis

1. Are we easy to do business with? Are we operationally efficient and accurate?

2. Are our products simple and easy for customers and employees to understand? Do employees have sufficient understanding to convey the benefits of each product? 3. Can we track cross sales to existing customers (accounts per customer by customer type)?

4. Are we able to measure the "quality" of new accounts?

5. Our best customers should get our best rates.. .when we give benefit of deposits to a loan customer do we include provision in our loan agreement and track deposit balances 6. Do lenders regularly make calls for deposits? If not, who is working loan customers for their deposits? Do all of our employees (new accounts reps, CSR's, call center staff) regularly ask for deposits? Do we need "deposit specialists"? 7. Deposit growth must be measured at the appropriate level of accountability (Branch managers, lenders, etc)

8. Do we set clear goals for each branch and each lenders for deposit growth?

9. Do our training programs include knowledge and skill sets that support deposit growth (sales skills, listening skills, communication skills, product knowledge, etc)

10. Is deposit growth included in incentive compensation plans with appropriate emphasis?

11. Do we promote alternative delivery and other offerings that will tie customers to our bank? (ACH, online bill pay, remote deposit capture, etc)

12. When a customer is in the mindset to change do we get as much business as possible?

13. Do we regularly say thank you?

14. Do we regularly ask customers how we're doing?

15. Do management, ALCO committee and the Board spend sufficient time on deposit growth issues? Are lending and marketing functions represented on the ALCO committee?

-24-