b'Investment Policy and StrategyThe investments are pooled with the pension assets of other participating Allegheny Group Retirement Plan member banks and are allocated based on a formula established by the pension committee.The policy, as established by the Pension Committee, is to invest in assets per the target allocations stated above.The assets will be reallocated periodically to meet the above target allocations.The objective of the portfolio is to meet present and future benefit obligations through investments in capital markets to enable payment of benefits in a timely manner.The investment policy will be reviewed at least annually, under the advisement of an investment advisor, to determine if the policy should be changed. The overall investment return goal is to achieve a return greater than a blended index of the S&P 500 and the Barclays Capital Aggregate Bond Index, which is comprised of an asset mix similar to the retirement plan assets, by 0.5% annualized after fees over a rolling 5-year moving average basis.Allowable assets include, but are not limited to:cash and cash equivalents, fixed income securities, equity securities, hedge funds and fund of funds, mutual funds, exchange traded index funds, managed separate accounts, investment partnerships and commingled funds.Prohibited assets include, but are not limited to: private placements, limited partnerships, venture-capital investments, direct investment in private real estate properties, and residual real estate mortgage investment conduits.Unless explicitly authorized by the Pension Committee, the use of leverage or speculative use of derivatives is prohibited unless as part of an alternative asset program or as a means for real asset managers to hedge investment risk or replicate investment positions at a lower cost than would otherwise be created in a cash market.In order to achieve a prudent level of portfolio diversification, the securities of any one company should not exceed more than 15% of the cost and/or market value of the total retirement plan assets, and no more than the 25% of the total retirement plan assets should be invested in any one industry other than securities of U.S. Government or agencies thereof. Additionally, no more than 25% of the market value of the total retirement plan assets shall be invested in foreign securities (both equity and fixed), if any.Determination of Expected Long-term Rate of ReturnThe expected long-term rate of return for the plans total assets is based on the expected return of each of the above categories, weighted based on the median of the target allocation for each class.Cash flowsExpected contributions for fiscal year ending December 31, 2019 Expected employer contributions $ - Expected employee contributions $- Estimated future benefit payments reflecting expected future service for the fiscal year(s) ending 12/31/2019 $ 454,160 12/31/2020 $ 463,679 12/31/2021 $ 504,307 12/31/2022 $ 512,554 12/31/2023 $ 521,414 12/31/2024 - 12/31/2028 $3,010,726 34'