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Introducing Roadways to Retirement

Introducing Roadways to Retirement. Refreshing new options from First National Bank. FNB. Discussion Agenda. Introductions Thank you for the opportunity to meet today! Reviewing your situation and objectives Firm overview: First National Bank and BPAS Program Highlights

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Introducing Roadways to Retirement

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  1. Introducing Roadways to Retirement Refreshing new options from First National Bank FNB

  2. Discussion Agenda • Introductions • Thank you for the opportunity to meet today! • Reviewing your situation and objectives • Firm overview: First National Bank and BPAS • Program Highlights • Simplifying life for Human Resources • Technology and websites • Special product features • Education, Investments and Fiduciary Services • Fee structure • Open discussion / Q&A

  3. Reviewing your situation and objectives • Plan type(s) offered? • Assets and participant count? • Current mix of providers and roles? • How is payroll processed? • Loans? Hardships? • Employer contribution formula and rules? • Recent compliance testing results? • Participation rates, savings rates, key success metrics • Investment menu • Participant perceptions, comfort level with program? • Strength of education program, relationship management services? • Fiduciary status of providers? • Who are your Plan Trustees? • Total cost of services and how are fees handled now? • What is working well? • What areas of the plan could be improved? • Have there been any recent problems, service issues or errors? • Any other objectives or concerns?

  4. First National Bank… Who we arewww.FirstNationalBank.com • One of the State’s five largest banking institutions • Over 600 associates throughout our footprint region • Over $2.5 billion in deposits, $800 million in trust and fiduciary assets • Delivering a comprehensive array of fiduciary and investment services • Retirement plans: Dedicated line of business • Due to the complexities and costs of being in the retirement plan business, we opted to find a strategic partner

  5. BPAS… Our administrative partnerwww.bpas.com • Full-service retirement provider, offering entire spectrum of DCand DB plans • Nine offices across U.S., national team of wholesalers (all time zones) • Administering 3,600 plans in total • 350,000 participants tracked • $6.5 billion in DC plan assets • $18 billion in total under custody • Vertically integrated model: BPAS acts as TPA, recordkeeper, clearing firm and asset custodian within a single organization (extremely unique in the industry). One company. One call. • Wholly owned subsidiary of NYSE-traded institution (ticker: CBU), with 2,200 employees in total. Profitable, stable institution with public financials • Subject to multiple levels of regulatory and audit scrutiny

  6. You’re in Good CompanyMore than 50 household name clients have partnered with BPAS

  7. How we work together to service your plan Educating your plan participants Simplifying life for Human Resources Robust participant and plan sponsor websites (technology) Being accessible for one-on-one participant needs Strength in compliance, consulting and technical matters Helping plan sponsor meetits fiduciary obligations Open architecture investment universe, with SDBA option Investment Policy Statement, ERISA 404(c) assistance Maintaining fund menu,meeting with RP Committee Documents, notices, statements, enrollment kits and materials Responsive, proactive service (a relationship) Responsive, proactive service (a relationship) The Relationship First National Bank The Platform BPAS

  8. Program Highlights

  9. Simplifying Life for Employers(Administration versus recordkeeping , provided by BPAS) • We track all employees on our system (not just those with a balance) • We process census files for a variety of edits before notifying employer of amount to be funded • We determine and monitor eligibility by source, by entry date (mailing welcome letters to newly eligible participants) • We fully support online enrollment, auto enrollment, contribution rate changes, automatic escalation, online beneficiary designations • Vesting updates real time during the year

  10. Simplifying Life for Employers(administration versus recordkeeping) • Streamlined process for loans, hardships, QDROs, distributions • Greatly reduced workload for compliance testing, allocations and Form 5500 process • Reducing the burden of plan audits (certified audit package and direct communication with auditors) • Interacting with HR through “Action Items” in plan sponsor website • Your Plan Consultant: Single point of contact service “You’d be amazed how many errors are found in a typical payroll system. The BPAS approach to administration provides a vital ‘check and balance’ tocatch many possible errors before they are traded into your Plan. This additional audit is a major advantage of BPAS versus other providers we have worked with.” - Plan sponsor client

  11. The Workflow on New Contributions Plan sponsor logs onto CensusPro, reviews / approves ACH verification 3 3 3 4 If approved by 3:30 PM EST, BPAS initiates mutual fund purchases at that evening’s prices. If after 3:30 PM EST, Purchases made on next business day. Plan Sponsor Plan Sponsor Plan Sponsor Plan Sponsor 1 Plan sponsor imports census file into CensusPro, submits to BPAS The next morning, participants see trades reflected on website. BPAS ‘ACH pulls’required funds from plan sponsor checkingaccount to settle prior day’s contributions. 2 2 5 BPAS reviews file for numerous edit checks, sends email to plan sponsor instructing them to log onto CensusProand review ACHverification, which includes corrections we made to data Note: for plan sponsors who prefer, authorization can be given to have BPAS automatically trade new contribution if there are no edits on ACH verification.

  12. BPAS Small Benefits, BIG Difference • Adjudicating loans, hardships, distributions and QDROs… interacting directly with participants and taking HR out of the “hot seat” • Handling all age 70-½ notices for entire plan • Preparing all required notices (safe harbor, QDIA, SMM, SAR, 408(b)(2), 404a-5, etc.) • No redemption fees (opposite way trade block used, where applicable) • No blackout period for fund changes • Plan sponsors can assist participants in a variety of ways • obtaining paperwork in website,transactional access, etc. • We can reset PINs over the phone (after security questions are correctly answered)

  13. Specialists at Plan Design Safe harbor designs Entry dates Hours requirements QNEC and QMACs Vesting True-ups Roth, catch-up contributions New comparability Allocations We help you navigate ERISA and its complexities, helping you make informed plan design decisions. In-service distributions Automatic enrollment Compensation definitions Handling of forfeitures Age-weighted allocations Last day rules Loan provisions QDIA options Distribution options Deferral rate changes Age or service-weighted allocations Social Security integration Contribution limits

  14. Full Service Call Center CSR Team Manager • Instant management reports • Real-time reporting of: • incoming call volume • number of calls on hold • average hold time • call abandonment rate • individual CSR performance • Can add additional CSRs to queue at any time based on volume • ideal system for managing, training individual CSRs CSR CSR CSR CSR CSR CSR CSR CSR • All calls recorded and archived • Next available routing across multiple offices • If queue exists, approximate hold time provided • Option to hang up and get immediate callback when next CSR becomes available • Translator line covers approximately 100 languages • Hours: 8:30 AM – 6:30 PM EST • Email and voicemail available 24/7/ 365

  15. Quarterly Participant Statements • Quarterly statements and newsletters mailed to participant homes • Account Summary • YTD Rate of Return • Detail by source and investment • Investment performance and benchmarks • Expenses • Retirement Projections • Includes investor newsletter • Permanently archived in participant website • Three part option for e-delivery in website (statements, required notices and confirms)

  16. Enrollment Kits Hard copy kits plus the online enrollment kit (always up-to-date) Complete education experience in asingle, bound booklet Hard copy kits can be ordered from plan sponsor website at any time

  17. Our Participant Website Statement on demand Welcome screen Account realignment Online enrollment wizard

  18. Specific features in participant website • Account breakdown by fund, source • Statement on demand with dynamic date ranges • Transaction research, export to Excel • Fund-to-fund transfers • Re-directing new contributions • Account rebalancing • Automatic rebalancing • Online enrollment, deferral rate changes, auto-escalation • Loan modeling and requests • Loan, hardship, distribution paperwork • Personalized rate of return (dynamic date range) • Fund research library • Online fact sheets, prospectuses, performance history • Education and guidance • Education and multimedia library • Secure email with CSR team • Archive of past statements and newsletters • Required notices • Integration with Mint.com • Online beneficiary designations • Continuously evolving features

  19. Financial Resource Center

  20. Online Library of Planning Calculators(23 in total)

  21. Market Dashboard Real-time Market Insights

  22. The MasteryPoint ™ Guidance Plus Suite

  23. Our Plan Sponsor Website Log on as a participant Welcome screen The Resource Center – an online“file cabinet” of all data and reports Participant messaging

  24. Some highlights of the plan sponsor website • Account breakdown by fund, source • Statement on demand with dynamic date ranges (plan level) • Transaction research, export to Excel • Drill down as a participant • Transactional access (enabled or disabled) • Resource Center (library of tools and reports) • Action Items • Informational Reports • Annual Plan Reports • Quarterly Plan Reports • Utilization Reports • Complete data table on employee population through .CSV files • Research status of transactions (loans, hardships, distributions, etc.) • View login, transaction history by participant • Fund research library • Retirement Gap Reports (review retirement income adequacy of participants) • Education and guidance suite • Multimedia library • Banner messaging at participant level • Ongoing rollout of new enhancements over time

  25. The Annual Plan Review Report (APRR)

  26. The Retirement Gap Report • Are your participants headed to a secure retirement? • Monthly report in plan sponsor website, run for all plans (.CSV file with complete data) • Based around goal of 10 times projected final pay in retirement balance • 35 year old earning $40,000 with total balance of $84,000: • Current wealth accumulation factor (WAF) of 2.1 • 62 year old earning $72,000, balance of $850,000: • Current wealth accumulation factor (WAF) of 11.8 • Based on projected final WAF, participants receive grade of A+ to F (A+ for > 10 times) • Plan-level summary report also runs monthly; helps evaluate plan’s overall success

  27. Other key reports • Web utilization report • YTD Rate of Return Report • Participant investment Grid • Login history and transaction report • Beneficiary changes report • Participant email addresses / e-delivery report

  28. Fee Disclosure Process BPAS takes a comprehensive approach which provides significant benefits to your organization 408(b)(2) – plan level 404a-5 – participant level “Go Green” approach, promoting e-delivery Fee Summary Document Mailing Services Team (as needed)

  29. Education, Investments and Fiduciary Services

  30. Answering the Call: Participant Education • First National Bank manages entire process • Initial year enrollments • Ongoing meetings (semiannual, quarterly, etc.) • Continuing education classes on specific topics • Communicating with employees on their level – in a friendly, non-intimidating way • Personalized assistance during the year • Quarterly statements and newsletters • Enrollment kits, online enrollment kits, customizable pieces • Vast education library delivered online through our participant website • Participant advice options available (as driven by client needs)

  31. Some presentations we use

  32. TrueOpen Architecture on Investments Starting point: More than 300 fund families traded across BPAS platform (20,000+ total funds available, counting all fund families) No proprietary funds. No “ratio requirements” or required QDIA funds. No variable annuities or separate accounts. Able to select strongest possible mix of investments for your plan since we are 100% revenue neutral Full range share classes available, with focus on institutional share classes (Admiral Shares, R6, I, etc.) All funds trade no-load with same day trading (4 PM EST participant cutoff time) Any revenue sharing used to offset fees at the level of each fund – far superior to ERISA recapture methodology (fee fairness)

  33. Additional services provided by First National Bank • Fiduciary Services – Serving as Discretionary Trustee • Maintaining Investment Policy Statement, monitoring funds, quarterly scoring, maintaining watch list, making fund changes when needed • Plan update meetings with your retirement plan committee • Important trends / key success measures • Discussion of plan design • Discussion of investments • Administrative issues and ways to improve the plan • Set priorities for coming year • Serving as relationship manager and local point of contact, keeping the plan running smoothly

  34. In our program, any revenue sharing is offset against the Platform Fee (at the level of each fund) = platform true up = revenue sharing Typical platform charge on smaller plan: 35 basis points on mutual fund assets 35 basis points 10 bpcustodial fee 25 bpcustodial fee 35 bpcustodial fee AmericanGrowthFund ofAmericaR435 bps Buffalo Small CapStock 25 bps Dodge & CoxInternational 10 bps “Pure institutional” funds (Vanguard T. Rowe, etc.) Any custodial fee is applied as a level monthly charge against holdings in the fund. For example, if a 25 basis point custodial fee is required, it would be charged as 2.08 basis points / month from that fund, or $2.08 / month for a participant with $10,000 invested.

  35. Easy Onboarding ProcessBPAS Conversion Team manages process and coordinates with all parties to minimize work for plan sponsor Enrollment / education meetings, Forms returned (or online enrollment) Fund map-over process / re-registration of shares (typically 1-2 business days) Plan Profile Form and enrollment booklet order form submitted. Fund selections made. Plan is live! $$ 2 months prior 1 month prior Month #1 Blackout period ends. PINs mailed to participant homes. File received from prior recordkeeper New provider memoand blackout notice given to employees Begin processing employee contributions per investment elections This illustration depicts the typical sequence of events in a map-over process conversion. Actual circumstances of each plan conversion will drive the ultimate outcome, including the timeliness and accuracy of data received from prior recordkeeper.

  36. In summary, our partnership will… • Help you fulfill your duties as a plan sponsor while greatly reducing your fiduciary and compliance risk • Simplify life for your Human Resources team through comprehensive administration and consulting services • Deliver a quality and diverse array of investments thanks to our open architecture platform and ongoing due diligence • Upgrade the client experience through state-of-the-art participant and plan sponsor websites • Move the needle on key success measures, thanks to the local presence and diligence of First National Bank • Deliver all of the above at competitive and fully transparent fees

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