CMS Case Study

Despite the changes that may occur due to our growth, we must strive to maintain our culture. Specific ways in which we can do so are as follows:

- Communication - Accountability - Efficiency - Coaching to Core Values - Right individuals in the right seats - Constant re-evaluation of strengths and weaknesses - Consistent feedback and the development of a “Coach up or Coach out” mindset

Additionally, we must recognize that our efforts to maintain our culture in serving our communities will be different across our markets. We will develop separate marketing plans for each market and the development will be undertaken by senior management and other relevant employees. One primary goal of each plan will be to promote our culture to the public and let them know “what Cloyd Bank & Trust is about.” The plans will include specific budgets by market.

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Succession Planning

In order to achieve our $1 Billion by 2025 initiative, the bank must have strong, effective leadership with continuity over time. Succession planning is critical to our future success and needs to be addressed at both Bank and Board levels. Within the Bank, there are a number of departments where we will actively work to ensure proper succession planning. These include but are not limited to:

• Mortgage Division • Wealth Management • Compliance • Loan Operations • Deposit Operations

At the Board level, succession planning is an immediate need that will be addressed. Our current Board of Directors skews older in age and has little diversity. The average age of our 9 directors as of summer 2020 is 63 years. Our mandatory retirement age is 75 years and our bylaws permit up to 12 directors on the board. A specific step we will take to address board succession is creating an ad hoc Succession Committee. The Succession Committee will meet as needed and will be charged with identifying and maintaining a list of at least three new director candidates to allow for emergency offerings of seats should a present director leave the board voluntarily or due to death. In addition, the Bank is in the process of establishing a structure under which a smaller “Advisory Board” can be nominated to serve. This group, aimed to six or so business people that are active in our communities, will serve as advisors with insights into our communities, products, and brand, but will also create a group from which future members of the Board may be selected.

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