---

A message from T. Alexander (Sandy) Spratt, Founder & President of Ardmore Banking Advisors

The news on Covid-19 is getting worse every day from many states, the Federal government, Moody’s, the news services, CPA firms, and other professionals. This appears to be something that will be with us into the summer or longer. It is quite apparent that the very expansive Stimulus package may be insufficient, and that we may be facing an extended global recession. At Ardmore, the executive management team meets daily to evaluate any impact to Ardmore, our people, and our clients. We also meet weekly with our senior credit professional leadership team, and monthly with our entire company, to enhance internal communication and learn of how we can improve our work environment and our services for our clients. Incidentally, everyone at Ardmore is working from home, which many of us typically do as we supply most of our services remotely to our clients. We have actively had discussions with a number of clients, particularly those who have scheduled reviews during the first and second quarters. We have learned a lot about their preparedness and actions that gives us some insight into best practices and the needs of many banks. All banks are in uncharted waters, and no matter how prepared any of them are, this is a massive challenge and a disrupter. We understand what banks are going through as we face some of the same issues at Ardmore. With recent talk about bank failures and credit risk issues, we believe that the most success long term will be achieved by those who act pro-actively and strategically now, by focusing on, among other things:

• Discussion(s) on market best practices being observed at banks that are forward-looking and prepared for the inevitable credit risk elevation and scrutiny by regulators
• Additional non-scheduled exams not covered by our contract on specific segments or portfolios
• Stress testing on a limited number of borrowers, segments or portfolios
• Credit data assessment to identify needed modifications

Please contact any of our Leadership Team or me if you have some questions or needs that you think we could help you meet. Thank you and stay safe. T. Alexander Spratt President & CEO 484-417-2080 taspratt@ardmoreadvisors.com

---