Capital Markets School - Case Study

ACTION PLAN If the liquidity condition of the Bank suggests vulnerability and increased risk of a stress event, the following actions will be triggered to mitigate the Bank’s exposure to the emerging risk: The CFP Team will: • Acknowledge the liquidity stress situation and assess the extent of the funding problem, its causes and its likely duration to determine the stress level. • Meet on a weekly basis, at a minimum, to review cash flow models, liquidity reserves and other reports, as needed. The reporting detail and frequency will be determined by the nature of the event. • Evaluate material funding exposures considering each source’s sensitivities to deterioration of the Bank’s condition or general market conditions. • Adjust the prioritization of Funding Sources on page 12 to meet the specific event, if needed. • Authorize public communications to Shareholders, Clients, and Local Media, as well as internal communications with Bank staff. • Direct each Bank department as to actions to be taken within their respective areas. Additionally, the CEO will: • Keep the designated Director closely informed of current and projected liquidity risk, as well as support the Director’s communication with the full Board of Directors. • Brief, when appropriate, Regulators on the risk and steps being taken to correct the condition, with assistance from CFO. • Maintain communications with Shareholders, Clients and Local Media, as appropriate, with assistance from Communications Director and COO. • Work with Senior Credit Officer to identify liquid assets, and coordinate deposit promotions or solicitations for new funds. Additionally, the CFO will: • Prepare and update monitoring items as frequently as reasonable given the specific event. • Maximize borrowing capacity through prudent use of collateral, with assistance from Senior Credit Officer. • Maintain communication with Funding Sources. • Consider lengthening maturities of funding alternatives which might be limited if the event persists. Additionally, the Senior Credit Officer will:

• Track internal credit deterioration and advise of material changes. • Curtail or eliminate new extensions of credit, as appropriate. To facilitate the execution of this plan, a list of key contacts is provided in Exhibit D.

Page 15 Smith Shellnut Wilson, LLC  Investment Counsel and Management  SEC Registered Investment Advisor 661 Sunnybrook Rd., Suite 130  Ridgeland, MS 39157  Telephone 601-605-1776  Fax 601-605-1710