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

Construction loans have an average life of 11 months). In addition to the Credit Availability Line, the FHLB has extended to the Bank a $40,000,000 Warehouse Line of Credit to be used specifically for the purpose of funding mortgage loans held for resale which have an average life of 15 days. With current combined borrowings from the FHLB of $35 million outstanding, the Board acknowledges that the Bank currently exceeds the Department of Banking and Finance's regulatory limitations defined in Section 7-1-291(C).

3. In addition to increasing core deposits and having in place FHLB borrowing capabilities, the Bank will utilize the following options:

• Fed Funds lines are currently available with Bank, National Bank and State Bank in the amount of $4.8 million, 4.5 million, and 2.0 million, respectively. In addition, the Bank has established a correspondent line with its affiliate, Community Bank of Next County. These can be utilized for short term needs.

• The Bank has established a $12 million secured line of credit with the Bank.

• The Bank will continue to price its CDs in the local market competitively.

• Management will explore bank to bank deposit-gathering opportunities with the Bankers Bank and have these in place as needed.

• The Express Data CD network has been used, and currently approximately $34 million in these deposits are on the balance sheet. In addition, the Bank will maintain a well-capitalized status, which will allow us to utilize the brokered CD market. The Bank has established a limit for these type deposits at 25% of total assets. Although these deposits are typically at a higher cost, these remain an option for funding if needed.

• TT&L note option (limit set at a maximum of $700,000).

• Management will sell loan participations as needed to allow core deposits to catch up with loan demand and help minimize total borrowing needs.

-32-