CMS Case Study

I. Executive Summary The 2020-22 Strategic Plan for Cloyd Bank & Trust is underpinned by four big-picture strategic initiatives that will guide our growth into the future. Within each initiative are action items which outline concrete steps we will take to achieve each objective. This document is written so that our goals and how we will reach them can be clearly communicated to every member of our team. Our first and most aspirational strategic initiative is to be $1 billion in assets by the end of 2025 (“$1 Billion by 2025”). As part of that initiative, this document includes a multi-year capital plan designed to guide us in our pursuit of $1 Billion by 2025 while ensuring Cloyd Bank & Trust will continue to operate in a prudent and sound manner. Our strategic initiatives and corresponding action items are as follows. 1. $1 Billion by 2025 a. Sustain our Loan and Deposit Growth: Officer Calling Program b. Capital Plan c. Maintain our Existing Culture d. Succession Planning e. Broaden Revenue Sources

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Be Accountable a. Define Job Expectations, Provide Training and Hold to Position Standards b. Periodic Management Assessments, Coach Up/Out and Course Corrections c. Periodic Employee Assessments d. Do it Right the First Time but Don’t Be Afraid to Make Mistakes

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Be Efficient a. Separation of Duties b. Ensure Successful Integration of New Core c. Reduce Efficiency Ratio to 55-60% d. Do Not Sacrifice Asset Quality

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Communicate Well a. Executive Management Spend More Time in the Field b. Training Program to Include Interdepartmental Exposure c. Replace “Kinder/Gentler” Mentality with Constructive Criticism/Course Correction d. Drive the Strategic Plan Deeper into the Bank

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