CDARS and IND

1. CDARS and IND

2. Promontory Interfinancial Network Over 2,700 institutions use our services to enhance their profitability, attract large-dollar deposits or obtain wholesale funding. Certificate of Deposit Account Registry Service® (CDARS®) • Offer customers up to $50 million in FDIC insurance • Earn fee income by selling "excess" deposits to other network members • Purchase funds at competitive rates (without collateralization or credit limits) Insured Network DepositsSM Service (INDSM) • Tap into another wholesale funding option; access large blocks of long-term funding ($25 million up to multi-billions) at floating rates

3. The Certificate of Deposit Account Registry Service® or CDARS® is a service that your organization can use to provide customers with access to up to $50 million in FDIC insurance on CD investments. CDARS is also a funding and liquidity management tool that your organization can use to access funds, manage its balance sheet, and enhance its profitability. What is CDARS? CDARS is a registered service mark of Promontory Interfinancial Network, LLC.

4. More than 2,700 financial institutions across the nation offer CDARS and billions of dollars are placed through the service every month. Network Footprint & Growth Only headquarters of our Member Banks are shown on this map. Additionally, we have network members in Alaska and Hawaii.

5. Retain & Increase Deposits Earn Fee Income Obtain Funding Make Portfolio Investments Put CDARS to Work for Your Bank Today

6. Retain & IncreaseDeposits Earn Fee Income Obtain Funding Make PortfolioInvestments Banks Use CDARS to: • Retain and increase deposits. (CDARS®Reciprocal transactionsSM) • Earn fee income by selling “excess deposits” to other banks while maintaining full ownership and control over the customer relationship. (CDARS®One-Way SellSM transactions) • Make a portfolio investment for your bank’s own account and earn a rate that may compare favorably to other alternatives. (CDARS® One-Way SellSM transactions) • Purchase deposits from other banks without having to establish or manage new customer relationships. (CDARS® One-Way BuySM transactions)

7. Retain & IncreaseDeposits Earn Fee Income Obtain Funding Retain & Increase Deposits Make PortfolioInvestments How CDARS Works Reciprocal transactions • Your bank can attract large-dollar customers by offering them access to up to $50M in FDIC insurance, and the conveniences of one bank, one rate and one statement. • The customer makes a large deposit with your bank. You place those funds into CDs issued by other members of the Network. Since funds are deposited in increments of < $100,000, both principal and interest are eligible for full FDIC insurance. • Other Network Members do the same thing with their customers' funds. • With help from a sophisticated matching system, Network Members exchange deposits on a dollar-for-dollar basis.

8. Retain & IncreaseDeposits Earn Fee Income Obtain Funding Earn Fee Income Make PortfolioInvestments How CDARS Works One-Way Sell transactions • Your bank can avoid keeping deposits on its balance sheet without turning good customers away and can earn fee income in the process. • Depending on prevailing rates, your bank may be able to offer higher rate deposits without increasing its cost of funds. • Example: • One Way Sell Rate Sheet • Given high CDARS reinvestment rates, your bank may be able to convert those accounts to Reciprocal transactions upon maturity if it wants funds at that time.

9. Retain & IncreaseDeposits Earn Fee Income Obtain Funding Make Portfolio Investments Make PortfolioInvestments How CDARS Works One-Way Sell transactions • Invest for your bank’s own investment or liquidity portfolio in a product that is eligible for full FDIC insurance at a favorable spread versus alternative investments like Treasuries and Agencies. Treasury Rates are Constant Maturity Yields as reported by the U.S. Treasury. One-Way Sell APYs are calculated using a 365-day accrual basis and daily compounding of interest. The APYs assume amounts remain on deposit until maturity. Selection of other available payment options may result in different amounts earned and different yield.

10. Retain & IncreaseDeposits Earn Fee Income Obtain Funding Obtain Funding Make PortfolioInvestment How CDARS Works One-Way Buy transactions • One-Way Buy transactions may represent a cost-effective alternative to other funding sources. Your bank can bring in large deposits and reduce the administrative costs typically associated with deposit gathering. • There are no credit line requirements and no collateralization needs. • Banks looking for funds bid on the maximum amounts they are willing to accept at their bid rates in six different maturities. • Results are posted Wednesday and funds are available the next business day. • One Way Sell Rate Sheet

11. Why CDARS is Good For Your Bank BENEFITS TO BANKS - SUMMARY CDARS Reciprocal CDARS One-Way Sell CDARS One-Way Buy • No credit lines needed • No collateralization required • No audit fees • No need to purchase stock • Quick turnaround – bid Wednesday and receive funds the next business day • Offer customers multi-million dollar FDIC insurance • Create a new revenue stream: non-interest fee income • Own the customer relationship • Gain pricing leverage • Customers receive consolidated statements from your bank • Customers’ confidential information remains protected • You can offer customers access to multi-million dollar FDIC insurance • You set the interest rate • You own the customer relationship • Customers communicate with your service team • Customers receive consolidated statements from your bank • Customers’ confidential information remains protected

12. Why CDARS is Good For Your Customers Before CDARS After CDARS Open accounts in multiple names, deal directly with multiple banks Negotiate interest rates Manually consolidate statements every month Track changing collateral values for collateralized deposits One bank – Your bank One interest rate One account statement No need to track

13. Non-Profits Others Businesses Public Funds • Government agencies • Municipalities (villages, • towns, cities, counties) • Police departments • Fire districts • Public colleges and • universities • Public hospitals • School districts • State funds (such as • state workers’ • compensation funds) • Utility districts (sewer, • water, power, etc.) • Charities • Churches • Colleges & universities • Community foundations • Endowment funds • Foundations • Homeowners • associations • Hospitals • Religious institutions • Attorneys and law firms • Banks and credit • unions (for CRA credit • or as earning assets) • CPAs • Financial planners • Escrows • 1031 tax-free property exchanges • Estate planners • Farms and ranches • Private investors • Trusts/Trustees Of All Sizes: Small businesses, • including partnerships, sole proprietorships, and entrepreneurial ventures Mid - size companies • (public and private) Corporations (public • and private) Franchises • Of All Types: Distributors • Manufacturers • Wholesalers • Retailers • Customers Who Can Benefit from CDARS® The authority of institutional customers to invest through CDARS may be subject to restrictions under applicable law and/or investment policies.

14. Availability of CDARS for Public Fund Investors WASHINGTON NORTH MAINE MONTANA MINNESOTA DAKOTA VT OREGON NH WISCONSIN MASS SOUTH IDAHO DAKOTA NEW YORK MICHIGAN WYOMING RI CONN IOWA PENN NEW NEBRASKA JERSEY NEVADA OHIO DELAWARE INDIANA UTAH ILLINOIS COLORADO MARYLAND WV KANSAS VIRGINIA MISSOURI KENTUCKY CALIFORNIA* NORTH CAROLINA TENNESSEE ARIZONA ARKANSAS OKLAHOMA SOUTH CAROLINA NEW MEXICO MISS GEORGIA ALABAMA TEXAS FLORIDA CDARS Enabled LOUISIANA ALASKA Legislation in the Pipeline HAWAII If a depositor is subject to restrictions with respect to the placement of funds in depository institutions, it is the responsibility of the depositor to determine whether the placement of the depositor's funds through CDARS or a particular CDARS transaction satisfies those restrictions.

15. Becoming a CDARS Member is Easy • Implementation is simple and quick. A four-step process… • Our team provides: • Financial goal-setting support • Accounting and operations training • Turn-key marketing assistance (including a complementary initial supply of marketing materials and templates) • On-going support Set Your Bank’s Goals On-Board Your Bank Receive Training Begin Marketing CDARS

16. What is IND? Insured Network DepositsSM, or INDSM, is a new offering from Promontory that provides banks with a brand new way to acquire stable, wholesale, floating-rate funding.It enables broker-dealers and other financial institutions to offer their customers a multi-bank, FDIC-insured deposit sweep account.

17. How IND Works • Funding comes from hundreds of thousands of brokerage account cash balances being “swept” into your bank. • Amounts range from $25 million up to multiple billions of dollars. • Rates are based on a set spread above the daily Federal Funds Effective Rate. • Terms range from 3 to 5 years. • Funding is similar to taking out a multi-year floating rate advance from your Federal Home Loan Bank without the collateralization and stockholding requirements.

18. Benefits of IND to Banks • Your bank can receive a cost-effective, stable source of deposit funding from IND. • The overwhelming majority of deposits comes in the form of MMDA balances, which are not subject to reserves. • There is no setup fee. • You account for IND deposits on an omnibus basis. • We handle all the individual records. • You work with an industry leader known for its regulatory experience and emphasis on compliance.

19. Founders, Board of Directors, and Bank Advisory Board Founders Board Members & Bank Advisory Board Representation Eugene A. LudwigChairman & CEO, Promontory Interfinancial NetworkFormer Comptroller of the Currency Anne L. ArmstrongChairman, Executive Committee of the Board of Trustees,Center for Strategic International StudiesFormer U.S. Ambassador to the United Kingdom Alan S. BlinderVice Chairman, Promontory Interfinancial NetworkFormer Vice Chairman, Federal Reserve Board James M. CulbersonChairman Emeritus, First National Bank & TrustFormer President, American Bankers Association Art CertosimoVice Chairman, Promontory Interfinancial NetworkEVP and Head of Broker Dealer Services, The Bank of New York Kenneth M. DubersteinChairman & CEO, The Duberstein GroupFormer White House Chief of Staff Mark P. JacobsenPresident & COO, Promontory Interfinancial NetworkFormer Chief of Staff, Comptroller of the Currency and FDIC Edward W. Kelley, Jr.Former Governor, Federal Reserve Board Frank N. NewmanChairman & CEO, Shenzhen Development Bank, China Chairman Emeritus, Bankers Trust Company Donald G. OgilvieChairman, American Bankers Association InternationalFormer President and CEO, ABA Warren RudmanPartner, Paul, Weiss, Rifkind, Wharton & GarrisonFormer U.S. Senator Jeffrey B. SchreierManaging Director, The Bank of New York L. William SeidmanChief Commentator of CNBC-TVFormer Chairman, FDIC J. Michael ShepherdPresident & COO, Bank of the West O. Jay TomsonChairman, First Citizens National Bank, Mason City, IA Former President, Independent Community Bankers of America Frank G. ZarbChairman, Frank Zarb AssociatesFormer Chairman & CEO, NASD William Isaac, Chairman, Bank Advisory BoardChairman, The Secura GroupFormer Chairman, FDIC Eugene A. Ludwig Chairman & CEO Former Comptroller of the Currency Alan S. Blinder Vice Chairman Former Vice Chairman of the Board of Governors of the Federal Reserve System Mark P. Jacobsen President & COO Former Chief of Staff of the FDIC and Office of the Comptroller of the Currency

20. AK HI Contact Information North Great Lakes Mark Martello [x3444] North Plains Lance Caldwell [x3487] Northeast Phil Pratt[x3485] Promontory Interfinancial Network, LLC 1515 N. Courthouse Road Arlington, VA 22201 1.866.776.6426 www.promnetwork.com For IND specific information, please contact H.D. Barkett, Managing Director of our Treasury Desk 1.866.776.6426 x 3447 hdbarkett@promnetwork.com South Great Lakes Mark Martello [x3444] WA MT ME ND VT OR MN NH MA ID WI NY SD MI CT WY RI NJ IA PA NE IN OH NV DE UT IL CO CA MD WV KS MO VA Pacific Reg Truman[x3448] KY Mid-Atlantic Erich Buckenmaier [x3354] NC TN OK AZ AR NM SC GA AL MS TX LA Rocky Mountain Reg Truman [x3448] South Central Chuck McBrayer [x3432] South Atlantic Danny Capitel [x3476] FL Deep South Kenny Heredia [x3486] Florida Danny Capitel [x3476] South Plains Lance Caldwell [x3487]