Bank Directors Seminar, Coeur d'Alene, ID

tŚĂƚ ƚŚĞ &ĞĚ ĚŽĞƐ ƚŽ ƚŚĞ ĨĞĚĞƌĂů ĨƵŶĚƐ ƌĂƚĞ ;Žƌ ƚŚĞ ϭϬͲLJĞĂƌ dƌĞĂƐƵƌLJ ƌĂƚĞͿ ƐĞĞŵƐ ƚŽ ďĞĂƌ ůŝƚƚůĞ ƌĞůĂƚŝŽŶƐŚŝƉ ƚŽ W/ ŝŶĨůĂƚŝŽŶ ʹ ŝĨ ĂŶLJƚŚŝŶŐ ŝŶ ƚŚĞ ůŽŶŐ ƌƵŶ ůŽǁĞƌ ŝŶƚĞƌĞƐƚ ƌĂƚĞƐ ƐĞĞŵ ƚŽ ĐŽŝŶĐŝĚĞ ǁŝƚŚ ůŽǁĞƌ ŝŶĨůĂƚŝŽŶ ;ƚŚĞ ŽƉƉŽƐŝƚĞ ŽĨ ǁŚĂƚ ƚŚĞ &ĞĚ ĂŶĚ ĐŽŶǀĞŶƚŝŽŶĂů ƚŚŝŶŬŝŶŐ ĂƌŐƵĞ͊Ϳ

&ĞĚĞƌĂů &ƵŶĚƐ ZĂƚĞ ǀƐ͘ dƌĞĂƐƵƌLJ ZĂƚĞ ;ϭϬͲzĞĂƌͿ ǀƐ͘ ŶŶƵĂů W/ ŚĂŶŐĞ

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&ĞĚĞƌĂů &ƵŶĚƐ ZĂƚĞ ;йͿ

dƌĞĂƐƵƌLJ ZĂƚĞ ;ϭϬͲzĞĂƌͿ ;йͿ

W/ ŶŶƵĂů ŚĂŶŐĞ ;йͿ

EŽƚĞ ͗ ƚŚĞ ƌĞŐŝŽŶƐ ƐŚĂĚĞĚ ŝŶ ƌĞĚ ĚŝƐƉůĂLJ ƌĞĐĞƐƐŝŽŶƐ͘

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QE now: Europe and Japanese Central Banks still engaged – Both of these central banks are still seeking to keep low interest rates to stimulate economic growth and are engaged in quantitative easing . – Both Europe and Japan have taken things one more step toward the absurd by targeting negative interest rates, i.e. borrowers give back less than they got originally. This might make borrowers happy, but what about lenders? – Fed is engaged in very small QT (quantitative tightening)