ALCO memo

12-month CD pricing decision

Riverbend Community Bank · drafted 2026-09-25 · for ALCO review

Decision

Match, raise the 12-month CD to 4.75%

Trigger

First County Bank raised its 12-month CD from 4.35% to 4.75%, Millbrook County

Projected 90-day cost

$180,000

Projected runoff if not taken

$1,800,000

First County Bank, our closest competitor by branch count in Millbrook County, raised its 12-month CD rate three days ago. Our own posted rate has been unchanged for 62 days. Holding at the current rate is projected to lose $6.0M in balances at this term over the next 90 days; matching the new rate is projected to hold that to $1.8M at a cost of roughly $180K over the same window.

Declined options: Defend (hold current rate, no cost, but the larger projected runoff); Lead (price above the new market rate at 4.90%, lowest projected runoff at $0.4M, but the highest cost at roughly $260K).

Source: Rate Watch observation, three days ago. Cost and runoff figures: Rate Advisor, this institution's own deposit-beta history.