1. High Performance in the “True Local Community Bank” L.T. “Tom” Hall President & CEO Resurgent Performance, Inc. Alpharetta, GA 1

2. Banks with assets less than $350 million Primarily focused on banking needs of local community Often overlooked and underappreciated Generally excelling in customer service, but under- serving when it comes to technology and meeting the changes of the new banking atmosphere WHAT IS A TRUE LOCAL COMMUNITY BANK (“TLC BANK”)? 2

3. As of September 30 th 2015, there are 6,247 FDIC Insured banks. 3,711 or 59% of these banks are True Local Community banks (<$350 million in assets) 3

4. One in four banks have failed or been acquired since 2008. 4 * Institute for Local Self-Reliance

5. Given this Statistic, is there a Future for the True Local Community Bank?? Due to regulatory demands and economic factors, a significant amount of TLC banks have disappeared in recent years. TLC banks will continue to be acquired, at a decreased rate, by the mid-sized and larger banks. However, the TLC banks overwhelmingly make up the largest asset size group, making it statistically and realistically unlikely that this important group will become extinct. Not to mention, they are a pivotal part of many communities. 5

6. BUT... TLC Banks that want to THRIVE, not only survive, will have to create a culture of Continuous Change. MORE ON THIS LATER… 6

7. How have the TLC Banks been performing in the last few years? How has their performance compared to the mid- and large- sized banks? 7

8. RETURN ON EQUITY $1 billion to $3 billion $50 million to $300 million (TLC BANKS) $300 million to $1 billion 8

9. RETURN ON ASSETS $1 billion to $3 billion $50 million to $300 million (TLC BANKS) $300 million to $1 billion 9

10. EFFICIENCY RATIO $1 billion to $3 billion $50 million to $300 million (TLC BANKS) $300 million to $1 billion 10

11. NON INTEREST INCOME / AVERAGE ASSETS $1 billion to $3 billion $50 million to $300 million (TLC BANKS) $300 million to $1 billion 11

12. NET INTERST MARGIN $1 billion to $3 billion $50 million to $300 million (TLC BANKS) $300 million to $1 billion 12

13. OTHER INTERSTING TRENDS IN COMMUNITY BANKING… 13

14. 14 Banks less than $10 billion, greater than $1 billion Banks less than $1 billion Banks greater than $10 Billion ( excluding five largest banks) Top 5 Largest Banks * “The State & Fate of Community Banking,” Harvard Kennedy School, 2015

15. 15 Banks less than $10 billion, greater than $1 billion Banks less than $1 billion Banks greater than $10 Billion ( excluding five largest banks) Top 5 Largest Banks * “The State & Fate of Community Banking,” Harvard Kennedy School, 2015

16. 16 “Community banks also make up a disproportionately large share, 46 percent, of the commercial real estate lending market.” * “The State & Fate of Community Banking,” Harvard Kennedy School, 2015

17. 17 Banks less than $10 billion, greater than $1 billion Banks less than $1 billion Banks greater than $10 Billion ( excluding five largest banks) Top 5 Largest Banks * “The State & Fate of Community Banking,” Harvard Kennedy School, 2015

18. 18 * “The State & Fate of Community Banking,” Harvard Kennedy School, 2015

19. 19 * “The State & Fate of Community Banking,” Harvard Kennedy School, 2015

20. 20 * “The State & Fate of Community Banking,” Harvard Kennedy School, 2015

21. 21 “Community Banks’ share of U.S. banking assets has decreased by more than half – from about 41 percent to 18 percent since 1994. The five largest banks’ share of U.S. commercial banking assets has more than doubled – from roughly 18 percent to 46 percent.” In Other Words… * “The State & Fate of Community Banking,” Harvard Kennedy School, 2015

22. PRESCRIPTON EMBRACE CHANGE With the industry changing as rapidly as it is, only those banks who adapt to a culture of endless change will prosper. Leaders must be the starting point of change and ensure their staff knows their change improvement ideas are appreciated (consider anonymous staff surveys to identify how processes can be improved or updated) Those who fail to embrace the banking revolution, and change accordingly, will ultimately fail to exist. 22

23. PRESCRIPTON 23 AIM HIGH Seek High Performance in every aspect and area of your bank. Setting incremental goals is surely the most effective way to attain truly great performance. Even if you are looking to be acquired, High Performance sets your bank up to receive the highest valuation. Download High Performance briefings off RPI website to track performance and set goals

24. PRESCRIPTON 24 HAVE A STRATEGY Stay Independent or Be Acquired? Both provide the best returns with High Performance. But, other strategy tactics differ greatly depending on the end goal. Having a plan and strategy in place is immensely important.

25. PRESCRIPTION 25 REVIEW OFFERINGS Better align bank’s product service offerings with customer demands. Branch Traffic is obviously diminishing. Often when customers do enter a branch, they are looking for advice; Become the TRUSTED ADVISOR. The modern day banking consumer is looking for information and advice on how to save for retirement, the best investment options, when to start saving for their children’s college, etc., etc., etc. Advice related community classes, product offerings, and marketing materials will take community banks far in the new banking atmosphere.

26. PRESCRIPTION 26 UPDATE TECHNOLOGY Consumers (especially millennials) demand online banking, functional banking apps, money transfer options, remote check capture, etc. To stay in the game community banks must make technology a priority. And, “big bank” technology is now much more affordable for smaller banks. First step: Invest in an easy-to-use, eye appealing website and app. Many community bank websites are severely outdated and hard to navigate, which results in lost business Set a timeline and strategy for updating technology

27. 27 Always Provide top-notch service like a True Local Community Bank… but THINK like a Big Bank. Final Thoughts…

28. 28 QUESTIONS? L.T. “Tom” Hall President & CEO Resurgent Performance, Inc. Lthall@ResurgentPerformance.com 770-664-9329