Audio Dial toll free: 866-740-1260 Access Code: 3289796 For problems call ReadyTalk Customer Care, 800-843-9166 Sponsor “America’s Community Banks – Too.

AudioDial toll free: 866-740-1260

Access Code: 3289796For problems call ReadyTalk Customer Care,

800-843-9166 Sponsor

“America’s Community Banks – Too Small to Fail”

Jim Lynch, CEO, Leaders BankJoe Framptom, CEO, Paducah Bank and Trust

Moderated by Diane Stoneman, Director of Consulting and Training, Winning Workplaces

Start Time: 10 am CT

• Founded in 2001 by co-owners of Fel-Pro

• Committed to small/midsize organizations building healthy, productive work cultures

• Triple bottom line: Business, People, Community.

Winning Workplaces

Online Clearinghouse

Consulting & Training

The Wall Street Journal

Winners profiled @ WSJ.Com/Entrepreneur

Report @ WinningWorkplaces.org

2009 competition underway

Top Small Workplace Recognition

• 8000 Community Banks

• 50,000 locations throughout U.S.

• Assets range: <$10 million-few billion

• 94% of all banks in the nation

Why Community Banks Matter

Approach and philosophies to managing a winning workplace

and the impact upon its customers and business.

Leaders Bank Paducah Bank

The Tale of Two Community Banks

Featured Presenters

Jim LynchCEO

Leaders BankOak Brook, IL

Joe FramptomCEO

Paducah Bank & TrustPaducah, KY

Leaders Bank- The Facts

• Leaders Bank opened in May 2000.Leaders Bank opened in May 2000.

• Premier banking services to meet Premier banking services to meet financial needs of privately held financial needs of privately held business, owners & entrepreneurs. business, owners & entrepreneurs.

• Treat customers and employees as Treat customers and employees as leaders.leaders.

• Attract, engage, develop and retain Attract, engage, develop and retain experienced team of professionals experienced team of professionals (Loan officers average 22 years of (Loan officers average 22 years of experience).experience).

• Turnover avg. 9%-- last four years.Turnover avg. 9%-- last four years.

Growing Stronger

Total Assets:Total Assets: 12/31/0512/31/05

$305,196,668$305,196,668

12/31/0812/31/08

$646,663,656$646,663,656

Revenue:Revenue: 12/31/0512/31/05

$16,509,000$16,509,000

12/31/0812/31/08

$ 30,742,000$ 30,742,000

Employees:Employees: 12/31/0512/31/05

3333

CurrentCurrent

6262

Asset per Asset per Employee:Employee:

$10,685,304*$10,685,304*

*high in banking *high in banking industryindustry

Continuing education

Training

Coaching

Mentoring

Encouragement

Role modeling

Empowering autonomy

Strategies for empowering employeesStrategies for empowering employees

• Employees most Employees most energized and energized and productive if role is productive if role is aligned with their aligned with their “hard-wired” talents. “hard-wired” talents.

• Every employee given Every employee given StrengthsFinder 2.0,StrengthsFinder 2.0, takes survey and takes survey and participates in a participates in a “Strengths Session.”“Strengths Session.”

Tailor Employee Roles to Natural StrengthsTailor Employee Roles to Natural Strengths

Workplace Culture as Anchor for DecisionsWorkplace Culture as Anchor for Decisions

• Measure distress in key areas Measure distress in key areas (leadership, (leadership, collaboration, communication, excellence, collaboration, communication, excellence, change, morale, acknowledgement, learning, change, morale, acknowledgement, learning, and vision).and vision).

• Confidential survey-- Leadership takes action. Confidential survey-- Leadership takes action.

• Address workplace concerns before they Address workplace concerns before they become rooted and normalized in the culture.become rooted and normalized in the culture.

Seek Feedback During Growth and ChangeSeek Feedback During Growth and Change

• Gap analysis of internal Gap analysis of internal talenttalent

• Tailored recruitment Tailored recruitment and training resourcesand training resources

• Annual review of Annual review of promotion readinesspromotion readiness

• Refinement of Refinement of recruitment, training recruitment, training and development.and development.

Succession PlanningSuccession Planning: Developing leaders from Developing leaders from withinwithin

• Every employee has option to participate in performance-focused coaching sessions each year

• With supervisor, each employee establishes three measurable goals

The Leaders Bank Coaching ProgramThe Leaders Bank Coaching Program

• Employee feedback revealed Employee feedback revealed interest in wellnessinterest in wellness

• 3:1 ROI on wellness3:1 ROI on wellness

• Employees use only 21% of sick Employees use only 21% of sick days in 2008days in 2008

• 2007 to 2008- est. cost of 2007 to 2008- est. cost of employee health risk decreased employee health risk decreased by 16%. by 16%. (Lifetime Fitness data).(Lifetime Fitness data).

Embrace Employee WellnessEmbrace Employee Wellness

• Turnover consistently under 10%, customers can rely Turnover consistently under 10%, customers can rely on same professional answering phoneson same professional answering phones

• Put customer first with a competent workforce Put customer first with a competent workforce empowered to take risks and make decisions. empowered to take risks and make decisions.

• Commitment to sustainability so culture remains stable Commitment to sustainability so culture remains stable during cycles of growth and periods of challenge. during cycles of growth and periods of challenge.

Benefits for CustomerBenefits for Customer

Benefits to Employees

• 2006 - #1 Best Place to Work in 2006 - #1 Best Place to Work in Illinois (Illinois Chamber, The Illinois (Illinois Chamber, The Business Ledger and SHRM).Business Ledger and SHRM).

• 2007, 2008, 2009 - Chicago’s 101 2007, 2008, 2009 - Chicago’s 101 Best and Brightest Companies to Best and Brightest Companies to Work For (Nat’l Assoc. of Business Work For (Nat’l Assoc. of Business Resources).Resources).

• 2008 - #51 in Entrepreneur 2008 - #51 in Entrepreneur Magazine’s Hot 100 - one of the Magazine’s Hot 100 - one of the country’s fastest growing country’s fastest growing companies.companies.

• 2008 - One of 35 finalists in the 2008 - One of 35 finalists in the Wall Street Journal/Winning Wall Street Journal/Winning Workplaces Top Small Workplaces Top Small Workplaces. Workplaces.

Founded in 1948; only locally-owned community bank in market

Subchapter S corporation with 46 shareholders

Largest market share at 33%

Competitors: Regions, US Bank, BB&T

Five-year ROE is 15.5% after tax estimated

Total assets on June 30, 2009, of $485 million

Paducah Bank- The Facts

Directors, officers and employees own 91% of our outstanding shares

Our KSOP owns 23% of our outstanding shares

Shareholders live in or are connected to McCracken County

Holding Company Directors served together 25 years

Consistently value creation of long-term shareholder value more than any other statistical measure of success

Never contemplated selling company

What Makes Us Different

Core Values should guide our every action:

People

Moral soundness

Culture

Independent ownership

Community involvement

What We Believe

Employees most important asset

Meaningful relationships highest mission

Serve others with respect and dignity

Fun is an important part of what we do every day

What We Believe

Developed culture that supports Core Values

Created 15 Basics that guide actions and behaviors

Looked outside our industry to find best practices

Commitments of excellence to each other and our customers

What We Have Done

Attract, develop and retain the right people

Unwavering commitment to development of employee/owners

Daily reinforcement of Core Values through Owners’ Meetings

Nurture environment of accountability, openness and communication

Unmatched dedication to creating customer loyalty

How We Sustain Success

#1 mortgage lender in McCracken County

Superior IDC CAMEL score (278 out of 300)

Top small business lender in Paducah/McCracken County

5-star safety and soundness ranking

What Makes Us Proud

Best Place to Work in Kentucky among mid-sized companies in 2006

2008 Top Small Workplace selected by The Wall Street Journal and Winning Workplaces

Paducah Area Chamber of Commerce Business of the Year in 2008

What Makes Us Proud

Prior toSub S YTD2000 2004 2005 2006 2007 2008 6/30/2009

ROAA a 1.04% 1.88% 1.92% 1.91% 2.03% 1.97% 2.08%ROAE a 13.76% 22.56% 22.85% 21.85% 24.00% 22.52% 22.96%ROFTE a 31,720$ 57,342$ 61,304$ 60,527$ 69,751$ 70,111$ 76,237$

HC Stock Value 137$ 285$ 310$ 340$ 368$ 365$ 365$ Market Share b 19.40% 32.0% 31.8% 33.3% 33.6% 31.9% NA

a - On a fully tax equalivent pre-tax basisb - Percent of commercial bank deposits in McCracken County

Core Measurements

If you don’t like where the bus is headed, then please get off.

If you can’t have fun here, go elsewhere.

“Stop doing” list more important than “to do” list.

True wealth is what’s left over after money is gone.

Final Thoughts (But Likely Not Yet Wisdom). .

1) Choose the right people, 2) Empower, 3) Trust

“If you aim at nothing, you’ll be sure to hit it.” (Yogi Berra)

Aim far out into the future, stay the course, be true to your values, and have fun along the way.

A little luck is also very helpful – like when both of your competitors sell!

Final Thoughts

Questions?

King Arthur Flour: Mixing Tradition with New Inventions Steve Voigt, CEO, King Arthur Flour Company, Norwich, VT

September 23, 2009 @ 10:00 a.m. CST

Engaging Fresh Young Talent in the Workplace Dave Schmitz, General Mgr, The Steppenwolf Theatre,

Chicago Tom Walter, CEO, Tasty Catering, Elk Grove Village, IL

October 20, 2009 @ 10:00 a.m. CST

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