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

Community Bank of Any County Funding Strategy February 12,

Introduction The Community Bank of Any County (the "Bank") is currently facing funding pressures due to increased internal loan demand, as well as, strong loan demand generated by its wholly owned subsidiary, Premier Financial Services, Inc. ("Premier"). Pursuant to a Board Resolution, this written Funding Strategy has been developed by management and has been adopted by the Bank's Board of Directors (the "Board") on February 15, . This Funding Strategy is designed to explore ways to diversify the Bank's funding sources and to decrease the Bank's dependency on volatile funds. The ultimate goals are to improve dependency and liquidity measures, resulting in a lower cost of funds, and improved earnings. Specifically, this strategy will address plans to fund loan demand, and to fund expansion plans and growth.

Management Expertise and Information Systems

Senior Bank Management, with its combined 150+ years of banking experience, has the expertise necessary to support the plan. In addition, the bank utilizes as its outside asset / liability management consultant.

The information systems utilized by the Bank and its subsidiaries include:

• A private Intranet system that tracts all Premier assets and provides management with important information, such as, average life of loans within particular relationships and markets.

• Interest Rate Risk reports produced from our A/L software.

• Impromtu report writer software provided through Peerless systems. This software allows us the ability to extract maturity and rate data into an Excel spreadsheet. This information is obtained for both loans and deposits. Maturity and rate information on other funding sources (i.e. FHLB advances,

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