Dear Cash Management Customer,

It is our pleasure to welcome you to Southern Bank’s Cash Management Services! Enclosed you will find your VIP security token along with the following:

• Information regarding how the merger will affect your Cash Management Services• Initial Online Banking Instructions• Security Token Activation Instructions• Cash Management FAQs• ACH Information ACH Originator Quick Reference Guide Instructions for Importing a NACHA File Instructions for Working with NACHA Import Batch Items Instructions for Viewing NACHA Import Batch Details Instructions for NACHA Import Errors• Wire Information Instructions for Creating a Domestic Single Wire Transfer Instructions for Creating an International Single Wire Transfer• ‘Protecting Your Accounts From Fraud’ Brochure

We would like to thank you for your business with Southern Bank and look forward to offering new and innovative products to better serve you. If you see any additional services that you are interested in learning more about or signing up for, please contact us at ebanking@bankwithsouthern.com or call toll free, 1-855-4KASASA (1-855-452-7272), and ask to speak with your Banking Service Manager. We will be glad to assist you with this matter.

Sincerely,

Southern BankInternet Banking Department

Friday, June 16, 2017, Capaha’s online wire request cut-off time will be 2:00 PM.

Beginning Monday, June 19, 2017 your new online banking wire cut off time will be 3:30 PM.

Your ACH batches will NOT be converting to Southern Bank’s online banking. If you have any expected ACH batches to process file effective 6/19/17, you will need to make arrangements to update.

For ACH credits (i.e. payroll), you will need to change the payroll date from effective 6/19/17 to 6/16/17, or you may pay your employees by other means (i.e. paper check).

For ACH debits (payment collections), we recommend submitting those batches post-merger, with file effective 6/20/17. If you decide to process the debit batch early (pre-merger), you must notify your debt- ors of the date change 7 calendar days prior to the new effective date.

Southern Bank’s ACH cut-off time is 4:00 PM.

Delivery/Approval Date for Debit Entries: 1 business day prior to the effective date of the debit entries.

Delivery/Approval Date for Credit Entries: This should not change from how you are currently set-up. Depending on which risk level you are on, will determine the delivery/approval date.

Early Risk- 3 business days prior to the effective date of the credit entries.

Normal Risk- 2 business days prior to the effective date of the credit entries. Float Risk- 1 business day prior to the effective date of the credit entries.

HOW WILL THIS MERGER AFFECT MY CASH MANAGEMENT SERVICES?

INITIAL ONLINE BANKING ACCESS

• Visit www.bankwithsouthern.com• Enter your Access ID and temporary passcode (passcode template: Access ID + Last 4 of your

TIN); Click LOG IN

You will be directed to your Home page, which provides you with an overview of your accounts and unread messages.

From the Cash Management tab, you can select Cash Management Menu, to navigate to all of your Cash Management Services.

You will have access to all of your Cash Management services from this page. If you do not have access to a specific service, it will not be clickable.

INITIAL ONLINE BANKING ACCESS

SECURITY TOKEN ACTIVATION

For security reasons, you are required to use a VIP Security Token as additional authentication to access your online accounts. A token that has been issued to you must be activated before it can be used.

You must have your security token in order to activate the security token service. Locate your security token and follow the steps on the screen.

The steps on the Activate Your Security Token page vary slightly depending on how many security tokens, if any, you have already been issued. But any case you will need to do the following in order to activate a token: • In the Security Token field, enter or select the token ID number printed on the back of the

token device (typically 12 alphanumeric characters). • Press the button on the security token to generate a one-time security code (typically 6 digits). • In the Security Code field, enter the security code you just generated. • Click Continue.

The token ID and security code you entered are checked for validity. If either entry cannot be validated, you will receive an error message and can try again.

NOTE: Security codes are valid for only 30 seconds. If more than 30 seconds pass between generating a code and entering it, you must generate a new security code.

ACH ORIGINATOR QUICK REFERENCE GUIDE

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ACH ORIGINATOR QUICK REFERENCE GUIDE For more in-depth information please refer to the NACHA Operating Rules & Guidelines- Corporate Edition or contact your financial institution.

ACH Facts

An ACH Originator is an entity or person that creates an ACH transaction. ACH entries are categorized as “consumer” (PPD) or “corporate” (CCD). ACH is capable of crediting or debiting checking or savings accounts ACH entries are received by most financial institutions. ACH is a batch system (not real time). ACH entries are irrevocable once they have been sent for processing. ACH stop payments, for consumers only, no longer have an expiration date, as of March 2010. Non-

consumer written stop payment orders expire six months from the date of stop payment order unless 1) it is renewed in writing 2) the item is returned or 3) the customer withdraws the stop payment.

ACH Originator Responsibilities

Protect the banking information received. Ensure your computer and you are protected by following the guidelines listed in the ODFI- Originator

Agreement (ODFI: Originating Depository Financial Institution), Schedule C. Obtain the receiver’s authorization- dependent on transaction type- and retain authorization for two years

past revocation. A copy of the authorization must be supplied within five banking days, if requested by the Financial

Institution. The authorization must: o Be readily identifiable as an ACH authorization. o Have clear and understandable terms. o Provide that the receiver may revoke the authorization only by notifying the originator in the

manner specified in the authorization. o Provide appropriate notice to debtor, if changing amount or date.

Make necessary changes to payee account information within six banking days upon receipt of Notification of Change.

Cease subsequent entries when appropriate. Check payees against OFAC (Office of Foreign Assets Control) compliance checklists. See OFAC section on

page 4.

ACH Legal Framework

You are required to abide by multiple rules and agreements including, but not limited, to the following when submitting ACH transactions:

NACHA Operating Rules (www.nacha.org)- The NACHA Operating Rules & Guidelines are provided at enrollment and annually via online banking secure message.

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Regulation E (for consumer entries) www.federalreserve.gov- Search: Regulation E UCC4A (for corporate credits) www.uniformlaws.org- Search: UCC Article 4A, Funds Transfer (1989)

Summary Southern Bank ODFI- Originator Agreement Bank/Corporate Agreements Authorizations from employees, customers, vendors, etc.

Consumer Credit Authorizations (Payroll)

Neither NACHA Operating Rules, nor Regulation E require an authorization for ACH credits or reversals. Southern Bank recommends you use a direct deposit authorization form that allows the company to debit

the employee’s account for adjustments. The forms may also be used to collect the proper employee account information.

Southern Bank recommends you obtain a voided check from the employee, to ensure correct account information is provided.

Verify the routing number provided is a valid ACH participant. The most common SEC (Standard Entry Class) code for direct deposit is PPD.

Consumer Debit Authorizations

An authorization to debit must be in writing or “similarly authenticated.” Southern Bank recommends you to obtain a voided check, to ensure correct account information is

provided. The most common SEC (Standard Entry Class) code is PPD.

Corporate Authorizations

For companies, there must be an agreement between the two parties, but the NACHA Operating Rules do not define what business practices constitute agreements.

The most common SEC (Standard Entry Class) code is CCD. Used for debits and credits.

Changing Date or Amount of Debits

The NACHA Operating Rules require you to notify your debtors of any changes in date or amount debited under the following circumstances:

o 7 calendar days- notice for a change of date (consumers and corporate). o 10 calendar days- notice for a change in amount (consumers only).

Sending the notice via U.S. Mail is acceptable.

ACH ORIGINATOR QUICK REFERENCE GUIDE

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Prenotes

Prenotes are zero dollar entries that precede the first live entry. The purpose of a prenote is to verify account information.

Prenotes are optional for you to send. If sent, prenote rules must be followed. A prenote must precede the first live entry by at least six banking days.

The RDFI (Receiving Depository Financial Institution) is not required to validate the name of the payee on the prenote, although many do; they are only required to verify the account number. There is still a risk if the subsequent entry credits the wrong account (this is true for all originations, not just prenotes).

Notice of Change

Southern Bank will notify you of any NOCs received on your behalf When ACH information is incorrect, a Notification of Change (NOC) is sent by the Receiving Bank (RDFI)

requesting the future entries contain corrected information. The NACHA Operating Rules require you to make the change within six banking days (or next time initiated) of receiving the information from Southern Bank.

The Receiving Bank (RDFI) warrants that the information they provide is correct.

Returns

Returns must be process by the Receiving Bank within 24 hours of settlement. Returns that are unauthorized beyond the 24 hours are the company’s liability and any disputes may have to be settled outside the banking network. Southern Bank recommends that you view your account activity daily.

An exception to the 24 hour rule is consumer unauthorized returns, which may be returned within 60 days of posting.

The use of consumer (PPD) or corporate (CCD) entry codes determine applicable ACH return rules. If the Receiving Bank receives a dispute claiming a debit was unauthorized, the Receiving Bank must get a

signed Written Statement of Unauthorized Debit from the account holder. You may obtain a copy of that statement by requesting a copy through Southern Bank.

You may re-initiate a debit entry up to two times if you receive a return entry of “NSF” or “Uncollected Funds”. This gives the Originator a total of three attempts at debiting an account.

A “Stop Payment” return may be re-initiated only if you receive approval from the payee to re-send the item.

It is a violation of the NACHA Operating Rules to re-initiate the debit entry if a return is received for any other reason.

Reversals (Can only be made under certain conditions)

Reversals may only be made for the following three conditions: 1) wrong dollar amount, 2) wrong account, or 3) duplicate transaction.

If a reversing entry must be made, please contact Southern Bank for instructions.

ACH ORIGINATOR QUICK REFERENCE GUIDE

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When completing a reversal, the complete ACH file that was originally submitted must be reversed. The reversing entry must be for the full amount, must be sent within five banking days of the original entry, and must be within 24 hours of discovering the error.

For wrong amount or wrong account reversing entries, a correcting entry must also be sent. The Receiving Bank is under no obligation to post the reversing debit if it overdraws the payee’s account or

if the payee’s account is closed. A payee must be notified if a reversing entry debits his/her account. However, a payee does not need to

authorize the reversing debit.

OFAC

You are required to check payees against OFAC compliance checklists. The Office of Foreign Asset Control (OFAC) lists countries, groups and individuals that U.S. companies are

not allowed to send funds to or receive funds from. Southern Bank must protect itself by informing every customer that it is against the law to send debit or

credit entries to OFAC blocked entities. You may check the OFAC SDN list at: www.treas.gov/offices/enforcement/OFAC.

ACH ORIGINATOR QUICK REFERENCE GUIDE

To import a new NACHA Import transfer file:1. On the Cash Management Menu page, click NACHA File Import under NACHA Import. (Or, on the Pending ACH Batches page, select Import NACHA File in the Pending NACHA Import Batches Actions menu.) The NACHA File Import page appears.2. Find the NACHA-formatted file to import by clicking Browse to open a File Upload dialog box.3. On the Settlement Account list, select the account to which the NACHA Import items should apply.4. Click Import NACHA File.

The file is imported, and the second NACHA File Import page appears.

NoteThe import process for large NACHA files can be time-consuming. In the case of a large file, the system dis-plays a message that the import is in progress, and that an Import Summary Report will be delivered to your Messages inbox when the import is finished.

IMPORTING A NACHA FILE

5. Verify the batch information. If all of the information is correct, click Done.

The NACHA file is added to the Pending NACHA Imports table.6. If any of the information is incorrect, click Delete These Batches. The import is deleted, and the NACHA File Import page appears.Warning!NACHA Imports should not include offsetting entries. For example, the debit amount included with a Pay-roll credit batch should match. If your imported file includes offsetting entries, you must place the offsetting entries on hold before you approve the batch.

IMPORTING A NACHA FILE

WORKING WITH NACHA IMPORT BATCH ITEMSWORKING WITH NACHA IMPORT BATCH ITEMS

Due to audit concerns, users cannot edit batch items after the items have been imported, except to place items on Hold status. If your file contains offsetting entries, you must go to the Batch Items page and place those offsetting entries on hold before you can approve the batch. The system will automatically offset the entries for you when the batch is processed.

If any change is needed to a batch item, the imported batch should be deleted. Corrections can be made in the original header and the revised batch can be re-imported into the system.

To work with NACHA Import Batch Items:

1. On the Cash Management Menu page, click Pending ACH Batches. The Pending ACH Batches page appears.

2. Locate the batch in the Pending NACHA Import Batches section and then click its link in the Batch Name column. Make special note of the status “Edit Offsetting Entry”. This indicates that you need to manually offset your items.

3. On the NACHA Import Batch Header page, change the Batch Name, Company Name, Effective Date, or Settlement account on the Batch Header page, if necessary.

4. Scroll down to the Batch Items section.

5. Review the Batch Items, and then click Hold next to any offsetting entries.

That is, Hold should be selected for any item with “ACH settlement” in the Consumer Name. The system will automatically offset the item.

6. Click Save.

Once you have created the batch header, imported batch items, and scheduled the batch, the batch must be approved for processing.

WORKING WITH NACHA IMPORT BATCH ITEMS

VIEWING NACHA IMPORT BATCH DETAILS

To view NACHA Import batch details:

1. On the Cash Management Menu page, click Pending ACH Batches.

The Pending ACH Batches page appears.

2. Scroll down to the Pending NACHA Import Batches table.

3. Select the batch containing multiple addenda records by clicking the batch name.

The Batch Header page appears, displaying the batch information including the net settlement amount and number of items in the batch.

4. Scroll down to the Batch Items section to view details of the batch.

VIEWING NACHA IMPORT BATCH DETAILS

The system automatically displays the first 10 batch items. You can increase this to 20, 50, or 100 items per page by selecting the appropriate display option and clicking Show.

5. Do one of the following.

◆ Select a page number in the list and click Go To Page >>.

◆ Select 20, 50, or 100 to display more items on the page.

◆ Click Save to save and changes you made and close this page.

VIEWING NACHA IMPORT BATCH DETAILS

NACHA IMPORT ERRORS

After you have clicked the Import NACHA File button, the system automatically parses your NACHA import file to obtain the correct data. If your NACHA file has an error, the system displays an error message.

To troubleshoot any errors in your NACHA Import File:

1. View the NACHA File Import page. All import errors are displayed in red.

2. Open your NACHA Import file in Notepad. Locate your error, correct it, and then save the file. Then, retry the NACHA Import.

NACHA IMPORT ERRORS

CREATING A DOMESTIC SINGLE WIRE TRANSFER

A single wire transfer request is a one-time request for transfer of funds to another financial institution. It will be sent to your financial institution on the Submit Date. If the Submit date falls on a non-business day, the wire transfer request will be sent on the prior business day. As processing times may vary, you should contact your financial institution if you have questions regarding the processing time for a specific wire transfer.

To create a single wire transfer request:

1. In the Wire Transfers section of the Cash Management Menu page, click Single Wire.

2. On the Create Single Wire Transfer page, verify that your address and telephone number information is correct. Make changes if necessary.

3. On the Account to Debit list, select the account to debit for the wire transfer amount. This is a required field.

4. In the Amount box, enter the amount (xxxx.xx, US Dollars only) of the wire transfer. This is a required field.

5. In the Submit date box, enter the date (mm/dd/yyyy) to send the wire transfer request to your financial institution. Or, you can select the date by clicking the calendar icon to the right. This field is not required to save the wire transfer, but a Submit date must be entered before the transfer can be approved.

6. Enter the Beneficiary’s information:

◆ Beneficiary’s Full Name. Enter the full name of the wire transfer recipient. This is a required field.

◆ Beneficiary’s Address 1. Enter the first line of the recipient’s address. This is a required field.

◆ Beneficiary’s Address 2. Enter the second line of the recipient’s address. This is an optional field.

CREATING A DOMESTICSINGLE WIRE TRANSFER

◆ Beneficiary’s City. Enter the recipient’s city. This is a required field.

◆ Beneficiary’s State. Select the recipient’s state in the list. If you selected the Switch to Non US Address option, this field is Beneficiary’s Region/State. This is a required field.

◆ If you selected the Switch to Non US Address option, the Beneficiary’s Country field appears. Select the beneficiary’s country in the list. This is a required field.

◆ ZIP/Postal Code. Enter the recipient’s ZIP or Postal Code. This is a required field.

◆ Beneficiary’s Account Number. Enter the beneficiary account’s account number. This is a required field.

◆ Purpose. If your financial institution subscribes to this feature, this field appears. Enter the reason for the wire transfer.

◆ Special Instructions for the Beneficiary. Enter any brief information you would like to add for the beneficiary. This information is optional.

7. Some institutions may require an intermediary institution to process your wire transfer. If your institution requires an intermediary institution, enter all the following information:

◆ Code Type. Select the type of routing information that is being used (‘Routing Transit #’ or ‘Account #’) in the list.

◆ Routing Code (to the right of Code Type, but not labeled on screen). Enter the number (transit routing number or account number).

◆ Institution Name. Enter the intermediary institution’s name.

◆ Institution Address. Enter the intermediary institution’s address. This is an optional field.

◆ Institution City. Enter the intermediary institution’s city.

◆ Institution State. Select the intermediary institution’s state in the list.

Note

If data is entered in a single field in this section, all fields in this section become required.

CREATING A DOMESTIC SINGLE WIRE TRANSFER

8. Enter the Beneficiary Institution’s information.

◆ Routing Number. Enter the routing and transit number of the beneficiary’s receiving institution. You can obtain this number by clicking on the Look up Institution Transit/Routing Number link.

◆ Institution Name. Enter the name of the recipient’s financial institution. This is a required field.

◆ Institution Address. Enter the address of the recipient’s financial institution. This is a required field.

◆ Institution City. Enter the recipient’s financial institution city. This is a required field.

◆ Institution State. Select the recipient’s financial institution state in the list. This is a required field.

◆ ZIP/Postal Code. Enter the recipient’s financial institution ZIP or Postal Code. This is a required field.

9. In the Special Instructions for the Beneficiary Institution box, enter any brief information you would like to add. You can use up to 195 characters. This information is optional.

10. Once you have completed entering wire information, click Save Wire to save wire transfer information.

CREATING A DOMESTIC SINGLE WIRE TRANSFER

The Single Wire Transfer Confirmation page appears.

11. Review wire information to ensure it is correct, and then click Yes to create the wire transfer.

CREATING A DOMESTIC SINGLE WIRE TRANSFER

The Create Wire Transfer page appears stating that the single wire transfer request has been successfully created. The wire must be approved to schedule it for processing.

CREATING A DOMESTIC SINGLE WIRE TRANSFER

CREATING AN INTERNATIONALSINGLE WIRE TRANSFERCREATING AN INTERNATIONAL SINGLE WIRE

TRANSFER

To create a single international wire transfer request:

1. In the Wire Transfers section of the Cash Management Menu page, click Single Wire.

The Create Single Wire Transfer - Domestic page appears.

2. In the Actions menu, select International Wire Transfer.

The Create Single Wire Transfer - International page appears.

3. Verify that your address and telephone number information is correct. Make changes if necessary.

4. In the Account to Debit list, select the account to debit for the wire transfer amount. This is a required field.

5. In the Amount box, enter the amount (xxxx.xx, US Dollars only) of the wire transfer. This is a required field.

6. In the Submit date box, enter the date (mm/dd/yyyy) to send the wire transfer request to your financial institution. This field is not required to save the wire transfer, but a Submit date must be entered before the transfer can be approved.

7. Enter the Beneficiary’s name and address:

◆ Beneficiary’s Full Name. Enter the full name of the wire transfer recipient. This is a required field.

◆ Beneficiary’s Address 1. Enter the first line of the recipient’s address. This is a required field.

◆ Beneficiary’s Address 2. Enter the second line of the recipient’s address. This is an optional field.

◆ Beneficiary’s City. Enter the recipient’s city. This is a required field.

◆ Beneficiary’s Region/State. Enter the recipient’s region or state. This is a required field.

◆ Beneficiary’s Country. Select the recipient’s country in the list. This is a required field.

◆ ZIP/Postal Code. Enter the recipient’s ZIP or Postal Code. This is a required field.

◆ Beneficiary’s Account Number. Enter the beneficiary account’s account number. This is a required field.

◆ Purpose. If your financial institution subscribes to this feature, this field appears. Enter the reason for the wire transfer.

◆ Special Instructions for the Beneficiary. Enter any brief information you would like to add for the beneficiary. This information is optional.

8. Some institutions may require an intermediary institution to process your wire transfer. If your institution requires an intermediary institution, enter the following information:

NoteIf data is entered in a single field in this section, all fields in this section become required.

◆ Code Type. Select the type of routing information that is being used (Transit or BIC/SWIFT) in the list.

◆ Routing Code (to the right of Code Type, but not labeled on screen). Enter the routing number (transit routing number or BIC/SWIFT code).

NoteIf the Code Type selected is BIC/SWIFT, then the value entered into the Routing Code field must be a valid BIC/SWIFT code.

◆ Local Clearing Code. Enter the intermediary institution’s local clearing code. Validation for this field is as follows.

• A UK wire transfer requires a 6-digit sort code.

• A Canada wire transfer requires a transit code up to 12 digits in length.

• A Mexico wire transfer requires an 18-digit CLABE standardized bank code.

• This field is optional for all other countries.

◆ Institution Name. Enter the intermediary institution’s name.

CREATING AN INTERNATIONAL SINGLE WIRE TRANSFER

◆ Institution Address. Enter the intermediary institution’s address. This is an optional field.

◆ Institution City. Enter the intermediary institution’s city.

◆ Institution Region/State. Enter the intermediary institution’s region or state.

◆ Institution Country. Select the name of the foreign financial institution country in the list.

9. Enter the Beneficiary’s Institution information.

◆ Code Type. Select the type of routing information that is being used (Account, Transit, or BIC/SWIFT) in the list.

◆ Routing Code (to the right of Code Type, but not labeled on screen). Enter the routing number (account number, transit routing number, or BIC/SWIFT code). You can obtain this number by using the Look up BIC/SWIFT Code or Look up Transit/Routing # links. This is a required field.

◆ Local Clearing Code. Enter the beneficiary institution’s local clearing code. Validation for this field is as follows.

• A UK wire transfer requires a 6-digit sort code.

• A Canada wire transfer requires a transit code up to 12 digits in length.

• This field is optional for all other countries.

◆ Institution Name. Enter the name of the beneficiary’s financial institution. This is a required field.

◆ Institution Address. Enter the address of the beneficiary’s financial institution. This is a required field.

◆ Institution City. Enter the beneficiary’s financial institution’s city. This is a required field.

CREATING AN INTERNATIONAL SINGLE WIRE TRANSFER

◆ Institution Region/State. Enter the beneficiary’s financial institution’s region or state. This is an optional field.

◆ Institution Country. Select the country of the beneficiary’s financial institution in the list. This is a required field.

◆ ZIP/Postal Code. Enter the beneficiary’s financial institution Postal Code. This is an optional field.

10. If your financial institution has chosen to display it, enter the Receiving Institution information:

◆ Routing Number. Enter the transit/routing number of the receiving financial institution. You can obtain this number by using the Look up Transit/Routing # link. This is a required field.

◆ Institution Name. Enter the receiving financial institution’s name.

◆ Special Instructions for the Receiving Institution. Enter any brief information you would like to add. You can use up to 195 characters. This information is optional.

11. Once you have completed entering wire information, click Save Wire to save wire transfer information.

The Single Wire Transfer Confirmation page appears.

12. Review wire information to ensure it is correct, and then click Yes to create the international wire transfer.

CREATING AN INTERNATIONAL SINGLE WIRE TRANSFER

The Create Wire Transfer page appears stating that the single wire transfer request has been successfully created. The wire must be approved to schedule it for processing.

CREATING AN INTERNATIONAL SINGLE WIRE TRANSFER