<SUBMISSION>
<ACCESSION-NUMBER>0000950124-06-003093
<TYPE>424B3
<PUBLIC-DOCUMENT-COUNT>5
<FILING-DATE>20060601
<DATE-OF-FILING-DATE-CHANGE>20060531
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>GLACIER BANCORP INC
<CIK>0000868671
<ASSIGNED-SIC>6022
<IRS-NUMBER>810519541
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>424B3
<ACT>33
<FILE-NUMBER>333-134153
<FILM-NUMBER>06878292
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>49 COMMONS LOOP
<STREET2>.
<CITY>KALISPELL
<STATE>MT
<ZIP>59901
<PHONE>4067564200
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>49 COMMONS LOOP
<STREET2>.
<CITY>KALISPELL
<STATE>MT
<ZIP>59901
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>424B3
<SEQUENCE>1
<FILENAME>v20560b3e424b3.htm
<DESCRIPTION>FORM 424(B)(3)
<TEXT>
<HTML>
<HEAD>
<TITLE>e424b3</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="right" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Filed Pursuant to Rule&#160;424(b)(3)
</DIV>

<DIV align="right" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Registration
    <FONT style="white-space: nowrap">No.&#160;333-134153</FONT>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="33%"></TD>
    <TD width="33%"></TD>
    <TD width="33%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">    <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV><DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV><B><FONT style="font-family: 'Times New Roman', Times">PROXY
    STATEMENT</FONT></B></TD>
    <TD nowrap align="center">    <B><FONT style="font-family: 'Times New Roman', Times">PROSPECTUS
    OF<BR>
    OF CITIZENS DEVELOPMENT COMPANY</FONT></B></TD>
    <TD nowrap align="right">    <B><FONT style="font-family: 'Times New Roman', Times">GLACIER
    BANCORP, INC.</FONT></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 15pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">MERGER
    PROPOSED&#160;&#151;&#160;YOUR VOTE IS VERY IMPORTANT</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Dear Citizens Development Company Shareholders:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The boards of directors of Citizens Development Company and
    Glacier Bancorp, Inc. have agreed on a merger of Citizens into
    Glacier. When the merger occurs, the current subsidiary banks of
    Citizens will operate as subsidiaries of Glacier.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the terms of the Plan and Agreement of Merger, dated
    April&#160;20, 2006, between Glacier and Citizens, Glacier will
    pay a total of $77&#160;million (less any specified excess
    transaction fees, and plus a possible &#147;earnings
    adjustment&#148; based on Citizens&#146; adjusted after-tax
    earnings from July&#160;1, 2006 to the effective date of the
    merger), in cash and in Glacier common stock. The Merger
    Agreement provides that the portion of the merger consideration
    payable in Glacier common stock will be fixed at 40% of the
    total merger consideration and the portion payable in cash will
    be fixed at 60% of the total merger consideration. However,
    individual Citizens&#146; shareholders will be allowed to choose
    whether to exchange their Citizens shares entirely for shares of
    Glacier stock, or for a combination of Glacier stock and cash.
    Those electing to receive all stock will receive the number of
    Glacier shares having a market value equal to the value of their
    Citizens shares, based on the market value of Glacier stock
    during a five-day trading period shortly before closing. The
    exact percentage of cash and Glacier common stock to be received
    by Citizens shareholders electing a combination of cash and
    stock will not be known until the effective date of the merger.
    However, under reasonable assumptions, it is anticipated that
    those electing a combination of stock and cash will receive
    approximately 35% to 40% of the purchase price in shares of
    Glacier stock and approximately 60% to 65% of the purchase price
    in cash. <B>A form for making your election is enclosed.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The number of shares of Glacier common stock that will be
    exchanged for shares of Citizens common stock will not be
    determined until five days prior to the merger. As explained in
    more detail in this document, whether you elect to receive
    Glacier common stock or a combination of stock and cash for your
    shares, the value of the consideration that you receive as of
    the completion date will be substantially the same, based on the
    average Glacier common stock price used to calculate the merger
    consideration.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the merger, assuming that the base merger consideration of
    $77&#160;million is not decreased by the amount of any excess
    transaction fees or increased by the amount of any earnings
    adjustment, Citizens shareholders will receive $163.32, in cash
    and/or Glacier common stock, per Citizens share. Based on the
    same assumptions, Citizens shareholders will own approximately
    3.08% of Glacier&#146;s outstanding common stock following the
    merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Your board of directors believes that the terms of the merger
    are fair and in the best interest of Citizens and its
    shareholders. In reaching this decision, the board considered
    numerous factors as described in the attached proxy
    statement/prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>The merger cannot be completed unless you approve it.</B>
    Approval requires the affirmative vote of at least two thirds
    (66<FONT style="vertical-align: top; font-size: 70&#37;">2</FONT>/<FONT style="font-size: 70&#37;">3</FONT>%)
    of each of the Class&#160;A and Class&#160;B shares entitled to
    be cast at a special meeting of Citizens shareholders called to
    consider the merger. We will hold a special shareholders&#146;
    meeting to vote on the merger proposal. <B>The Citizens special
    shareholders&#146; meeting will be held on Wednesday,
    June&#160;28, 2006, at 4:00&#160;p.m. local time, at First
    Citizens Bank of Billings, 2812 First Avenue North, Billings,
    Montana.</B> Whether or not you plan to attend the special
    meeting, please take the time to vote by completing and mailing
    the enclosed form of proxy.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On behalf of the Citizens board of directors, I recommend that
    you vote&#160;FOR approval of the merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="v20560b3v2056003.gif" alt="-s- Dean Comes" > <BR>
    Dean Comes<BR>
    President and Chief Executive Officer
</DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>None of the Federal Deposit Insurance Corporation, Securities
    and Exchange Commission, nor any state securities commission has
    approved the securities to be issued by Glacier or determined if
    this proxy statement/prospectus is truthful or complete. Any
    representation to the contrary is a criminal offense. The shares
    of Glacier common stock to be issued in the merger are not
    savings or deposit accounts or other obligations of a bank and
    are not insured by the Federal Deposit Insurance Corporation,
    the Bank Insurance Fund or any other governmental agency. Such
    shares are not guaranteed by Glacier or Citizens and are subject
    to investment risk, including the possible loss of
    principal.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 18%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=455 length=84 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This proxy statement/prospectus is dated May&#160;25, 2006, and
    is first being
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    mailed to Citizens shareholders on May&#160;26, 2006.
</DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 14pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">CITIZENS
    DEVELOPMENT COMPANY<BR>
    <FONT style="font-size: 10pt">2812
    1<SUP style="font-size: 85%; vertical-align: text-top">ST</SUP>Avenue
    North, Suite&#160;324</FONT></FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Billings, Montana 59101</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 12pt">NOTICE OF SPECIAL MEETING OF
    SHAREHOLDERS</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 12pt">TO BE HELD JUNE&#160;28,
    2006</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <U>TO THE SHAREHOLDERS OF CITIZENS DEVELOPMENT COMPANY</U>:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A special meeting of shareholders of Citizens Development
    Company will be held on June&#160;28, 2006, at 4:00&#160;p.m.
    local time, at the offices of First Citizens Bank of Billings,
    2812 First Avenue North, Billings, Montana. The special meeting
    is for the following purposes:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    1.&#160;<I>MERGER AGREEMENT.</I>&#160;&#160;To consider and vote
    upon a proposal to approve the Plan and Agreement of Merger,
    dated as of April&#160;20, 2006, among Glacier Bancorp, Inc. and
    Citizens, under the terms of which Citizens will merge with and
    into a newly-formed subsidiary of Glacier, as more fully
    described in the accompanying proxy statement/prospectus. The
    Merger Agreement is attached as <B>Appendix&#160;A </B>to the
    proxy statement/prospectus that accompanies this notice.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.&#160;<I>OTHER MATTERS.</I>&#160;&#160;If necessary, to
    consider and act upon a proposal to adjourn the meeting to
    permit us to solicit additional proxies in the event that we do
    not have sufficient votes to approve the merger as of the date
    of the meeting.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Holders of record of Citizens common stock at the close of
    business on May&#160;24, 2006, the record date for the special
    meeting, are entitled to notice of, and to vote at, the special
    meeting or any adjournments or postponements of it. The
    affirmative vote of the holders of at least two thirds
    (66<FONT style="vertical-align: top; font-size: 70&#37;">2</FONT>/<FONT style="font-size: 70&#37;">3</FONT>%)
    of each of the Class&#160;A and Class&#160;B shares entitled to
    be cast, voting as separate groups, at the Citizens special
    meeting is required for approval of the Merger Agreement. As of
    May&#160;24, 2006, there were 43,151.33&#160;shares of
    Class&#160;A common stock and 428,321.82&#160;shares of
    Class&#160;B common stock, outstanding and entitled to vote at
    the special meeting.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Citizens shareholders have the right to dissent from the merger
    and obtain payment of the fair value of their Citizens shares
    under the applicable provisions of Montana law. A copy of the
    applicable statutes regarding dissenters&#146; rights is
    attached as <B>Appendix&#160;B </B>to the accompanying proxy
    statement/prospectus. For details of your dissenters&#146;
    rights and how to exercise them, please see the discussion under
    the heading &#147;The Merger&#160;&#151;&#160;Dissenters&#146;
    Rights of Appraisal.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>The board of directors of Citizens has determined that the
    Merger Agreement is fair to and in the best interests of
    Citizens and its shareholders and recommends that you
    vote&#160;FOR approval of the Merger Agreement.</B>
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    By Order of the Board of Directors,
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="v20560b3v2056004.gif" alt="-s- Jason Hinch" >
</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Jason Hinch, Secretary
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Billings, Montana
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    May&#160;25, 2006
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


</DIV>
<DIV style="border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>YOUR VOTE IS IMPORTANT.</B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Whether or not you plan to attend the special meeting, please
    complete, sign, date and promptly return the accompanying proxy
    using the enclosed envelope. If for any reason you should desire
    to revoke your proxy, you may do so at any time before it is
    voted at the meeting. If you do not vote your shares, it will
    have the same effect as voting against the merger.</B>
</DIV>
</DIV><!-- End box 1 -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">REFERENCES
    TO ADDITIONAL INFORMATION</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>This proxy statement/prospectus incorporates important
    business and financial information about Glacier from documents
    that are not included in or delivered with this document.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You can obtain documents incorporated by reference into this
    proxy statement/prospectus by requesting them in writing or by
    telephone from Glacier at the following address:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Glacier Bancorp, Inc.
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    49 Commons Loop
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Kalispell, Montana 59901
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    ATTN: James H. Strosahl, Corporate Secretary
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Telephone:
    <FONT style="white-space: nowrap">(406)&#160;751-4702</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You will not be charged for the documents that you request. If
    you would like to request documents, please do so by
    June&#160;13, 2006 in order to receive them before the Citizens
    special shareholders&#146; meeting.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    See &#147;Where You Can Find More Information About
    Glacier.&#148;
</DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

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    <B><FONT style="font-family: 'Times New Roman', Times">TABLE OF
    CONTENTS</FONT></B>
</DIV>
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<!-- TOC -->
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<DIV align="left">
<A name="tocpage"></A>
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<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

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<TR style="font-size: 1pt" valign="bottom">
    <TD width="97%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 8pt">Page</FONT></B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#101'><FONT style="font-size: 10pt">QUESTIONS AND
    ANSWERS ABOUT THIS DOCUMENT AND THE MERGER</A>
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">ii
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#102'><FONT style="font-size: 10pt">SUMMARY</A>
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">1
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#103'><FONT style="font-size: 10pt">RISK FACTORS</A>
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">6
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#104'><FONT style="font-size: 10pt">CAUTIONARY
    NOTE&#160;REGARDING FORWARD-LOOKING STATEMENTS</A>
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">7
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#105'><FONT style="font-size: 10pt">SELECTED HISTORICAL
    FINANCIAL INFORMATION OF GLACIER</A>
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">9
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#106'><FONT style="font-size: 10pt">HISTORICAL AND PRO
    FORMA PER SHARE DATA</A>
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">10
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#107'><FONT style="font-size: 10pt">COMPARATIVE STOCK
    PRICE AND DIVIDEND INFORMATION</A>
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">11
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#108'><FONT style="font-size: 10pt">CITIZENS
    DEVELOPMENT COMPANY SPECIAL SHAREHOLDERS&#146; MEETING</A>
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">11
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#109'><FONT style="font-size: 10pt">BACKGROUND OF AND
    REASONS FOR THE MERGER</A>
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">13
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#110'><FONT style="font-size: 10pt">THE MERGER</A>
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">21
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#111'><FONT style="font-size: 10pt">INFORMATION
    CONCERNING CITIZENS DEVELOPMENT COMPANY</A>
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">35
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#112'><FONT style="font-size: 10pt">DESCRIPTION OF
    GLACIER&#146;S CAPITAL STOCK</A>
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">39
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#113'><FONT style="font-size: 10pt">COMPARISON OF
    CERTAIN RIGHTS OF HOLDERS OF GLACIER AND CITIZENS DEVELOPMENT
    COMPANY COMMON STOCK</A>
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">40
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#114'><FONT style="font-size: 10pt">CERTAIN LEGAL
    MATTERS</A>
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">43
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#115'><FONT style="font-size: 10pt">EXPERTS</A>
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">43
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#116'><FONT style="font-size: 10pt">WHERE YOU CAN FIND
    MORE INFORMATION ABOUT GLACIER</A>
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">43
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#117'><FONT style="font-size: 10pt">Appendix&#160;A&#160;&#151;&#160;Plan
    and Agreement of Merger</A>
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#118'><FONT style="font-size: 10pt">Appendix&#160;B&#160;&#151;&#160;Montana
    Statutes Regarding Dissenter&#146;s Rights</A>
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#119'><FONT style="font-size: 10pt">Appendix&#160;C&#160;&#151;&#160;Opinion
    of Financial Advisor to Citizens</A>
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left">
<!-- /TOC -->
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    i
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<A name='101'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">QUESTIONS
    AND ANSWERS ABOUT THIS DOCUMENT AND THE MERGER</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">What is
    the purpose of this proxy statement/prospectus?</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This document serves as both a proxy statement of Citizens
    Development Company and a prospectus of Glacier Bancorp, Inc. As
    a proxy statement, it is being provided to you by Citizens
    because the board of directors of Citizens is soliciting your
    proxy to vote to approve the proposed merger of Citizens with
    and into Glacier. After the merger, Glacier will own the
    subsidiary banks of Citizens, which are referred to in this
    document as the &#147;Citizens Banks.&#148; As a prospectus, it
    is being provided to you by Glacier because Glacier is offering
    you shares of its common stock as partial consideration for your
    Citizens shares.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">What will
    Citizens shareholders receive in the merger?</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the terms of the Plan and Agreement of Merger, dated as of
    April&#160;20, 2006, by and between Glacier and Citizens,
    Glacier will pay cash and issue shares of its common stock in
    exchange for all outstanding shares of Citizens common stock.
    The Merger Agreement provides that the total merger
    consideration will be $77&#160;million, plus a possible
    &#147;earnings adjustment&#148; in an amount equal to the amount
    of Citizens&#146; adjusted after tax-earnings from July&#160;1,
    2006 to the effective date of the merger. The total merger
    consideration may be reduced, if applicable, by the amount of
    any excess Citizens &#147;transaction fees&#148; as defined in
    the Merger Agreement. The total amount of stock that Glacier
    will be required to issue in the merger is fixed at 40% of the
    total merger consideration.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Based on the 471,473.15 Citizens&#146; shares that are currently
    outstanding, and assuming the $77&#160;million purchase price is
    not increased for the earnings adjustment or the decreased for
    excess transaction fees, the purchase price per Citizens share
    will be $163.32.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">What will
    I receive in the merger?</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the Merger Agreement, unless you provide a notice of
    dissent, you may elect to receive for your shares either:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    all Glacier common stock (a &#147;Stock Election&#148;),&#160;or
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a combination of cash and Glacier common stock (a
    &#147;Combination Election&#148;).
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Both the Stock Election and the Combination Elections are
    subject to the allocation procedures described in this document.
    As a result, the mix of cash and Glacier common stock that you
    receive will not be known until five days prior to the effective
    date of the merger. See &#147;The
    Merger&#160;&#151;&#160;Allocation&#148; for a more detailed
    discussion of allocation procedures under the Merger Agreement.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">What
    happens if I elect to receive Glacier stock in the
    merger?</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If you make a Stock Election, you will receive shares of Glacier
    common stock in payment for your shares of Citizens. The exact
    number of Glacier shares that you will receive for each Citizens
    share will not be determined until five days prior to the
    closing of the merger, when the value of the Glacier stock is
    established as provided in the Merger Agreement.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">What
    happens if I elect to receive a combination of Glacier stock and
    cash in the merger?</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If you make a Combination Election, you will receive Glacier
    stock for that portion of your shares that will cause the total
    Glacier shares issued in the merger to equal 40% of the total
    merger consideration, (after taking into account the shares to
    be issued to those making Stock Elections), with the balance of
    your shares paid in cash. The percentage mix of cash and Glacier
    common stock will not be known until the effective date of the
    merger. However, under reasonable assumptions, it is anticipated
    that those making a Combination Election will receive 35% to 40%
    of the purchase price in shares of Glacier stock and 60% to 65%
    in cash. See &#147;The Merger&#160;&#151;&#160;Allocation.&#148;
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    ii
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">What is
    the amount of cash
    <FONT style="white-space: nowrap">and/or</FONT> the
    number of shares of Glacier common stock that I will receive for
    my shares of Citizens common stock?</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The total merger consideration will not be determined until the
    effective date of the merger, because such consideration may be
    subject to the &#147;earnings adjustment&#148; described in this
    document, and the amount of any such earnings adjustment cannot
    be calculated until the effective date. The total merger
    consideration is also subject to possible reduction in the event
    of certain excess transaction fees as defined in the Merger
    Agreement. Additionally, the actual aggregate number of shares
    of Glacier common stock to be issued in the merger will not be
    determined until the fifth business day immediately prior to the
    effective date of the merger. As a result, the actual amount of
    cash <FONT style="white-space: nowrap">and/or</FONT>
    number of shares of Glacier common stock that you will receive
    for each of your Citizens shares will not be determined until
    shortly after the effective date of the merger. Those amounts
    will be determined based on a formula set forth in the Merger
    Agreement and described in this document, and once they are
    determined, those amounts will be made available on
    Glacier&#146;s website at www.glacierbancorp.com.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Will the
    value of the per share consideration that I receive be
    substantially equivalent regardless of which election I
    make?</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Yes. The formula that will be used to calculate the
    consideration is intended to substantially equalize the value of
    the consideration to be received for each share of Citizens
    common stock in the merger, as measured during the valuation
    period ending on the determination date, regardless of whether
    you make a Stock Election or a Combination Election. As the
    value of Glacier stock fluctuates with its trading price,
    however, the value of the Glacier stock you receive for a
    Citizens share likely will not be the exact same as the cash to
    be paid per share on any given day after the fifth business day
    preceding the merger (that is, after the Glacier value per share
    for the merger is established, as described elsewhere in this
    document).
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">What are
    the tax consequences of the merger to me?</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We expect that for United States federal income tax purposes,
    the exchange of shares of Citizens common stock solely for
    shares of Glacier common stock generally will not cause you to
    recognize any taxable gain or loss. We also expect that if you
    receive a combination of cash and stock in exchange for your
    Citizens shares, you will be required to recognize any gain to
    the extent cash is received in the merger, and you will not be
    entitled to recognize any loss realized. If you receive solely
    cash in the merger, which will occur only if you exercise
    dissenters&#146; rights, you will recognize any gain or loss
    realized on the disposition of your Citizens shares. We urge you
    to consult your tax adviser to fully understand the tax
    consequences of the merger to you. Tax matters are very
    complicated and in many cases tax consequences of the merger
    will depend on your particular facts and circumstances.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Will the
    shares of Glacier that I receive in the merger be freely
    transferable?</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Glacier common stock issued in the merger will be
    transferable free of restrictions under federal and state
    securities laws, except for shares of Glacier common stock
    received by persons who are deemed to be &#147;affiliates&#148;
    of Citizens as defined under applicable federal securities laws.
    See &#147;The Merger&#160;&#151;&#160;&#160;Stock Resales by
    Citizens Affiliates.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">How do I
    elect the form of consideration I prefer to receive?</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A green election form with instructions for making your election
    as to the form of consideration you prefer to receive in the
    merger accompanies this proxy statement/prospectus. To make your
    election, you must submit a green election form to
    Glacier&#146;s exchange agent before 5:00&#160;p.m. Mountain
    Time on July&#160;13, 2006, which is the tenth
    (10<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>)
    business day after the date of the Citizens special meeting. The
    election procedures are described under &#147;The
    Merger&#160;&#151;&#160;Election Procedure.&#148; <B>Note that
    you must enclose your Citizens stock certificate(s) with the
    green election form.</B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">What is
    the deadline for receipt of my election form?</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The green election forms must be received by the exchange agent
    by 5:00&#160;p.m., Mountain Time, on July&#160;13, 2006.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    iii
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">May I
    change my election once it has been submitted?</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Yes. You may change your election so long as your new election
    is received by the exchange agent prior to 5:00&#160;p.m. on
    July&#160;13, 2006. To change your election, you must send the
    exchange agent a written notice revoking any election previously
    submitted. You may at that time provide a new election.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">What
    happens if I do not make an election prior to the
    deadline?</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If you fail to submit a valid green election form to the
    exchange agent prior to 5:00&#160;p.m. Mountain Time on
    July&#160;13, 2006, then you will be deemed to have made a
    Combination Election.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">When and
    where will the special meeting take place?</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Citizens will hold a special meeting of its shareholders on
    Wednesday, June&#160;28, 2006, at 4:00&#160;p.m., at the offices
    of First Citizens Bank of Billings, 2812 First Avenue North,
    Billings, Montana.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">How do I
    vote?</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To vote, please indicate on the enclosed proxy card how you want
    to vote and then sign, date, and mail your proxy card in the
    enclosed white envelope <B><U>as soon as possible</U> </B>so
    that your shares will be represented at the special meeting.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Why is my
    vote important?</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If you fail to vote, that will have the same effect as voting
    against approval of the Merger Agreement. Approval of the Merger
    Agreement requires the affirmative vote of at least two thirds
    (66<FONT style="vertical-align: top; font-size: 70&#37;">2</FONT>/<FONT style="font-size: 70&#37;">3</FONT>%)
    of the Class&#160;A and Class&#160;B shares of Citizens common
    stock outstanding and entitled to vote at the special meeting.
    The directors of Citizens, the Presidents of the Citizens Banks,
    the John T. Vucurevich Living Trust (the &#147;Trust&#148;), the
    John T. Vucurevich Foundation (the &#147;Foundation&#148;) and
    the Presidents of the subsidiary banks of Citizens&#146;
    affiliated bank holding companies who are not also Citizens
    directors (collectively, the &#147;Voting Agreement
    Shareholders&#148;), beneficially own and have the right to
    vote&#160;403,021.40&#160;shares, representing 85.48% of the
    shares entitled to be voted at the meeting (constituting 79.5%
    of the outstanding Class&#160;A shares, and 86.1% of the
    outstanding Class&#160;B shares), and they have each agreed to
    vote for the merger.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">What
    happens if I return my proxy but do not indicate how to vote my
    shares?</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If you sign and return your proxy card, but do not provide
    instructions on how to vote your shares, your shares will be
    voted &#147;FOR&#148; approval of the Merger Agreement.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Can I
    change my vote after I have mailed my signed proxy
    card?</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Yes. You may change your vote at any time before your proxy is
    voted at the special meeting. If your shares are held in your
    own name, you may change your vote as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    You may send a written notice stating that you would like to
    revoke your proxy and provide new instructions on how to vote;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    You may complete and submit a later-dated proxy card;&#160;or
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    You may attend the meeting and vote in person. If you intend to
    vote in person and your shares are held by a broker, you should
    contact your broker for instructions.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If you choose either the first or second method above, you must
    submit your notice of revocation or your new proxy card to
    Citizens&#146; secretary prior to the special meeting.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Who may
    vote at the meeting?</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The board of directors of Citizens has set May&#160;24, 2006, as
    the record date for the meeting. If you were the owner of
    Citizens common stock at the close of business on May&#160;24,
    2006, you may vote at the meeting.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    iv
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">When will
    the merger occur?</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We presently expect to complete the merger during the third
    quarter of 2006. The merger will occur after approval of the
    shareholders of Citizens is obtained and after the merger has
    received regulatory approval and the other conditions to the
    merger are satisfied or waived. Glacier and Citizens are working
    toward completing the merger as quickly as possible.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">How soon
    after the merger is completed can I expect to receive my cash or
    Glacier common stock?</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Glacier will work with its exchange agent to distribute
    consideration payable in the merger as promptly as practicable
    following the completion of the merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">What do I
    need to do now?</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We encourage you to read this proxy statement/prospectus in its
    entirety. Important information is presented in greater detail
    elsewhere in this document and documents governing the merger
    are attached as appendices to this proxy statement/prospectus.
    In addition, much of the business and financial information
    about Glacier that may be important to you is incorporated by
    reference into this document from documents separately filed by
    Glacier with the Securities and Exchange Commission
    (&#147;SEC&#148;). This means that important disclosure
    obligations to you are satisfied by referring you to one or more
    documents separately filed with the SEC.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Following review of this proxy statement/prospectus, <B>please
    complete, sign, and date the enclosed proxy card and return it
    in the enclosed white envelope <U>as soon as possible</U> </B>so
    that your shares can be voted at Citizens&#146; special meeting
    of shareholders.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Additionally, <B>please complete, sign and date the green
    election form</B>, <B>and return it in the enclosed green
    envelope, </B>to Glacier&#146;s exchange agent before the close
    of business on July&#160;13, 2006. <B>Note that your Citizens
    stock certificate(s) must be submitted together with the green
    election form.</B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">What if I
    choose not to read the incorporated documents?</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Information contained in a document that is incorporated by
    reference is part of this proxy statement/prospectus, unless it
    is superseded by information contained directly in this proxy
    statement/prospectus or in documents filed with the SEC after
    the date of this proxy statement/prospectus. Information that is
    incorporated from another document is considered to have been
    disclosed to you <B>whether or not you choose to read the
    document.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">What
    risks should I consider?</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You should review carefully our discussion of &#147;Risk
    Factors.&#148; You should also review the factors considered by
    the Citizens board of directors in approving the Merger
    Agreement. See &#147;The Merger&#160;&#151;&#160;Background of
    the Merger&#148; and &#147;Reasons for the
    Merger&#160;&#151;&#160;Citizens.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Who can
    help answer my questions?</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If you have questions about the merger, the meeting, or your
    proxy, or if you need additional copies of this document or a
    proxy card, you should contact:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Marcy Mutch<BR>
    Citizens Development Company<BR>
    2812
    1<SUP style="font-size: 85%; vertical-align: text-top">st</SUP>&#160;Avenue
    North, Suite&#160;324<BR>
    Billings, Montana 59101<BR>
    <FONT style="white-space: nowrap">(406)&#160;247-4269</FONT><BR>
    <FONT style="white-space: nowrap">e-mail:</FONT>
    mmutch@cdc-ubc.com
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This proxy statement/prospectus does not cover any resale of the
    securities to be received by shareholders of Citizens upon
    consummation of the proposed merger, and no person is authorized
    to make any use of this proxy statement/prospectus in connection
    with any such resale.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>The date of this proxy statement/prospectus is May&#160;25,
    2006.</B>
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    v
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
<A name='102'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">SUMMARY</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>This summary, together with the preceding section entitled
    &#147;Questions and Answers about this Document and the
    Merger,&#148; highlights selected information about this proxy
    statement/prospectus. We urge you to read carefully the entire
    proxy statement/prospectus and any other documents to which we
    refer to fully understand the merger. The Merger Agreement is
    attached as <B>Appendix&#160;A </B>to this proxy
    statement/prospectus. Each item in the summary refers to the
    page in this proxy statement/prospectus where that subject is
    discussed in more detail.</I>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Information
    About Glacier and Citizens</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Glacier Bancorp, Inc.<BR>
    </B>49 Commons Loop<BR>
    Kalispell, Montana 59901<BR>
    <FONT style="white-space: nowrap">(406)&#160;756-4200</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Glacier, headquartered in Kalispell, Montana, is a Montana
    corporation, initially incorporated in Delaware in 1990, and
    subsequently incorporated under Montana law in 2004. Glacier is
    a regional multi-bank holding company providing commercial
    banking services from 71 banking offices throughout Montana,
    Idaho, Wyoming, Utah and Washington. Glacier offers a wide range
    of banking products and services, including transaction and
    savings deposits, commercial, consumer and real estate loans,
    mortgage origination services, and retail brokerage services.
    Glacier serves individuals, small to medium-sized businesses,
    community organizations and public entities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Glacier is the parent holding company of nine wholly owned
    subsidiary commercial banks: Glacier Bank; Mountain West Bank;
    First Security Bank of Missoula; Western Security Bank; First
    National Bank&#160;&#151;&#160;West; Big Sky Western Bank;
    Valley Bank of Helena; Glacier Bank of Whitefish; and Citizens
    Community Bank. Glacier is also the holding company of three
    financing subsidiaries.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of March&#160;31, 2006, Glacier had total assets of
    approximately $3.8&#160;billion, total net loans receivable and
    loans held for sale of approximately $2.5&#160;billion, total
    deposits of approximately $2.7&#160;billion and approximately
    $344.4&#160;million in shareholders&#146; equity. Glacier common
    stock trades on the Nasdaq National Market under the symbol
    &#147;GBCI.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Financial and other information regarding Glacier is set forth
    in Glacier&#146;s annual report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ending December&#160;31, 2005, and the quarterly
    report on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarter ending March&#160;31, 2006. Information
    regarding Glacier&#146;s executive officers and directors, as
    well as additional information, including executive
    compensation, certain relationships and related transactions, is
    set forth or incorporated by reference in Glacier&#146;s annual
    report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ending December&#160;31, 2005 and Glacier&#146;s
    proxy statement for its 2006 annual meeting of shareholders, and
    the
    <FONT style="white-space: nowrap">Forms&#160;8-K</FONT>
    filed by Glacier and incorporated by reference into this proxy
    statement/prospectus. See &#147;Where You Can Find More
    Information About Glacier.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Citizens Development Company<BR>
    </B>2812
    1<SUP style="font-size: 85%; vertical-align: text-top">st</SUP>&#160;Avenue
    North, Suite&#160;324<BR>
    Billings, Montana 59101<BR>
    <FONT style="white-space: nowrap">(406)&#160;247-4275</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Citizens, headquartered in Billings, Montana, is a Montana
    corporation, initially incorporated in Montana in 1968. Citizens
    is a multi-bank holding company providing commercial banking
    services from 11 banking offices throughout Montana. Citizens
    offers a wide range of banking products and services, including
    transaction and savings deposits, commercial, consumer and real
    estate loans, mortgage origination services, and retail
    brokerage services. Citizens serves individuals, small to
    medium-sized businesses, community organizations and public
    entities. Approximately 82% of the Company is owned by the Trust
    and related entities, with the balance owned primarily by
    current and former officers and directors of Citizens and its
    subsidiary banks.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Citizens is the parent holding company of five subsidiary
    commercial banks: First Citizens Bank of Billings; First
    National Bank of Lewistown; Citizens State Bank (Hamilton);
    First Citizens Bank, N.A. (Columbia Falls) and Western Bank of
    Chinook, N.A. (collectively, the &#147;Citizens Banks.&#148;)
    The Citizens Banks have been in existence from 35 up to
    100&#160;years.
</DIV>
</DIV><!-- End box 1 -->

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    <BR>
    1
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of March&#160;31, 2006, Citizens had total assets of
    approximately $410&#160;million, total net loans receivable and
    loans held for sale of approximately $285&#160;million, total
    deposits of approximately $360&#160;million and approximately
    $36&#160;million in shareholders&#146; equity.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Citizens
    Will Merge into Glacier</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Merger Agreement provides for the merger of Citizens with
    and into a newly formed wholly-owned subsidiary of Glacier. When
    the merger is effective, the Citizens Banks will become
    subsidiaries of Glacier. Glacier anticipates that following an
    initial transition period after the merger, the Citizens Banks
    will be merged into currently existing Glacier banks, based on
    geographic location.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the merger, your shares of Citizens common stock will be
    exchanged for shares of Glacier common stock or a combination of
    cash and Glacier common stock. After the merger, you will no
    longer own shares of Citizens.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Merger Agreement is attached as <B>Appendix&#160;A </B>to
    this document. We encourage you to read the Merger Agreement in
    its entirety.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Citizens
    Special Meeting</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The special meeting of shareholders of Citizens will be held at
    the offices of First Citizens Bank of Billings, 2812 First
    Avenue North, Billings, Montana, on Wednesday, June&#160;28,
    2006 at 4:00&#160;p.m., local time. At the meeting you will be
    asked to consider and vote upon a proposal to approve the Merger
    Agreement and consider and act upon such other matters as may
    properly come before the meeting or any adjournment of the
    meeting.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You will be entitled to vote at the Citizens special meeting if
    you owned Citizens common stock at the close of business on
    May&#160;24, 2006. As of that date there were
    471,473.15&#160;shares of Citizens Class&#160;A and Class&#160;B
    common stock entitled to be voted at the special meeting
    (43,151.33 Class&#160;A shares and 428,321.82 Class&#160;B
    shares).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Approval of the Merger Agreement Requires the Affirmative
    Vote of Two Thirds
    (66<FONT style="vertical-align: top; font-size: 70&#37;">2</FONT>/<FONT style="font-size: 70&#37;">3</FONT>%)
    of the Shares of Citizens Common Stock that Are Outstanding and
    Entitled to Vote</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In order to approve the Merger Agreement, at least two thirds
    (66<FONT style="vertical-align: top; font-size: 70&#37;">2</FONT>/<FONT style="font-size: 70&#37;">3</FONT>%)
    of the outstanding shares of each of Citizens Class&#160;A and
    Class&#160;B common stock outstanding and entitled to vote as of
    the record date, voting as separate groups, must be voted at the
    special meeting in favor of approval. Glacier&#146;s
    shareholders do not have to vote on the transaction.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of the record date for the meeting, the Voting Agreement
    Shareholders beneficially owned approximately 85.48% of the
    outstanding shares of Citizens common stock. This amount
    constitutes 79.5% of the outstanding shares of Class&#160;A
    common stock of Citizens and 86.1% of the outstanding shares of
    Class&#160;B commons stock of Citizens. The Voting Agreement
    Shareholders of Citizens have agreed to vote their shares in
    favor of approval of the Merger Agreement.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">What
    Citizens Shareholders Will Receive in the Merger</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the Merger Agreement, Glacier will issue shares of its
    common stock and pay cash for all shares of Citizens common
    stock outstanding as of the date of the Merger Agreement. The
    total merger consideration that Glacier will pay will be
    $77&#160;million, less the amount of any specified excess
    transaction fees and plus the amount of any earnings adjustment.
    The total merger consideration will be paid in cash and in
    shares of Glacier common stock. The total dollar value of
    Glacier common stock that Glacier will issue in the merger is
    fixed at 40% of the total merger consideration.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If you do not provide notice of dissent, you may elect to
    receive in exchange for each of your shares of Citizens common
    stock either (1)&#160;all shares of Glacier common stock, or
    (2)&#160;a combination of cash, without interest, and shares of
    Glacier common stock. In the either case, the percentage of
    Glacier common stock and cash that you receive will be subject
    to the allocation procedures described in this document.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The total merger consideration that Glacier will pay for the
    shares of Citizens shares will be equal to
    (i)&#160;$77&#160;million, plus (ii)&#160;the amount of the
    earnings adjustment, if applicable. The Merger Agreement
    provides that
</DIV>
</DIV><!-- End box 1 -->

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    <BR>
    2
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    the base merger consideration of $77&#160;million will be
    reduced by the amount that Citizens&#146; transaction fees in
    connection with the merger exceed $810,000. Subject to certain
    conditions set forth in the Merger Agreement, the earnings
    adjustment is an amount equal to the amount of Citizens&#146;
    adjusted consolidated after-tax earnings from July&#160;1, 2006
    to the effective date of the merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The actual aggregate number of shares of Glacier common stock to
    be issued in the merger cannot be determined until the fifth
    business day immediately prior to the effective date of the
    merger. The actual amount of cash
    <FONT style="white-space: nowrap">and/or</FONT>
    Glacier common stock that you will receive for each of your
    Citizens shares will not be determined until shortly after the
    effective date of the merger. Those amounts will be determined
    based on a formula set forth in the Merger Agreement and
    described under the heading &#147;The
    Merger&#160;&#151;&#160;Merger Consideration.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The formula is intended to substantially equalize the value of
    the consideration to be received for each share of Citizens
    common stock, as measured during the valuation period ending on
    the determination date, regardless of whether you make a Stock
    Election or a Combination Election.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The actual amounts received will depend on (i)&#160;the total
    merger consideration payable by Glacier under the Merger
    Agreement and (ii)&#160;the average closing price of Glacier
    common stock as of the determination date. Actual values of
    Glacier common stock received will depend on the market price of
    Glacier common stock at the time of the merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>The allocation of cash and Glacier stock that you will
    receive if you make either the Stock Election or the Combination
    Election will be subject to the allocation procedures described
    under the heading &#147;The
    Merger&#160;&#151;&#160;Allocation.&#148; .</B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">You May
    Elect to Receive Stock Consideration or a Combination of Stock
    and Cash</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the merger, if you do not provide a notice of dissent, you
    may elect to receive in exchange for your shares either:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    all Glacier common stock (a &#147;Stock Election&#148;),&#160;or
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a combination of cash and Glacier common stock (a
    &#147;Combination Election&#148;).
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If you perfect your dissenters&#146; rights, you will receive
    cash for your shares as provided under the applicable provisions
    of Montana law. See &#147;The
    Merger&#160;&#151;&#160;Dissenters&#146; Rights of
    Appraisal&#148; and &#147;The
    Merger&#160;&#151;&#160;Allocation.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    With this proxy statement/prospectus, you will receive a green
    election form with instructions for making your election as to
    the form of consideration that you prefer to receive in the
    merger. The available elections, election procedures and
    deadline for making elections are described under the heading
    &#147;The Merger&#160;&#151;&#160;Election Procedure.&#148; If
    you fail to submit a valid green election form by the election
    deadline, you will be deemed to have made a Combination
    Election. <B>You must submit your Citizens stock certificates
    together with the green election form.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As described under &#147;The
    Merger&#160;&#151;&#160;Allocation,&#148; because the dollar
    value of Glacier common stock that will be issued in the merger
    is fixed at 40% of the total merger consideration, and because
    the number of Citizens shareholders who will choose to make
    Stock Elections is not currently known, the percentage of
    Glacier common stock and cash that you will receive if you make
    the Combination Election cannot be determined until the
    effective date of the merger.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Certain
    Federal Income Tax Consequences</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Neither Citizens nor Glacier is required to complete the merger
    unless each of them receives a legal opinion of Glacier&#146;s
    counsel that the merger will be treated as a
    &#147;reorganization&#148; for federal income tax purposes.
    Assuming such opinion is received, we expect that for United
    States federal income tax purposes, Citizens shareholders
    generally will not recognize any gain or loss on the conversion
    of shares of Citizens common stock into shares of Glacier common
    stock (although the receipt of any cash will be a taxable
    event). This tax treatment may not apply to some Citizens
    shareholders. Determining the actual tax consequences of the
    merger to you may be complex. They will depend on your specific
    situation and on factors not within our control. You should
    consult your own tax advisor for a full understanding of the
    merger&#146;s tax consequences to you.
</DIV>
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    <BR>
    3
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Citizens
    Shareholders Have Dissenters&#146; Rights</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under Montana law, Citizens shareholders have the right to
    dissent from the merger and receive cash for the fair value of
    their shares of Citizens common stock. A shareholder electing to
    dissent must strictly comply with all the procedures required by
    Montana law. These procedures are described later in this
    document, and a copy of the relevant portions of Montana law is
    attached as <B>Appendix&#160;B.</B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">The
    Citizens Board of Directors Recommends Shareholder Approval of
    the Merger</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Citizens board of directors believes that the merger is in
    the best interests of the Citizens shareholders and has
    unanimously approved the Merger Agreement. The Citizens board of
    directors recommends that Citizens shareholders vote
    &#147;FOR&#148; approval of the Merger Agreement.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Citizens
    Financial Advisor Says the Merger Consideration is Fair to
    Citizens Shareholders From a Financial Point of View</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Hovde Financial, Inc. has served as financial advisor to
    Citizens in connection with the merger and has given an opinion
    to Citizens&#146; board of directors that, as of April&#160;18,
    2006, the consideration that Citizens shareholders will receive
    for their Citizens shares in the merger is fair, from a
    financial point of view, to Citizens shareholders. A copy of the
    opinion delivered by Hovde is attached to this document as
    <B>Appendix&#160;C.</B> Citizens shareholders should read the
    opinion carefully to understand the assumptions made, matters
    considered and limitations of the review undertaken by Hovde in
    providing its opinion. The opinion is more fully described under
    the heading &#147;Opinion of Financial Advisor to Citizens&#148;
    below. Citizens agreed to pay Hovde a fee for its services and
    indemnify Hovde against certain liabilities arising out of the
    merger or Hovde&#146;s engagement.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Citizens
    Officers and Directors Have Interests in the Merger that Are
    Different from or in Addition to Their Interests as
    Shareholders</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Certain members of Citizens management have interests in the
    merger that are different from, or in addition to, their
    interests as Citizens shareholders. These interests arise out of
    existing agreements that they have entered into with Citizens,
    provisions in the Merger Agreement relating to indemnification
    of certain directors, and, in the case of the chief executive
    officers of the Citizens Banks, employment agreements that will
    take effect upon consummation of the merger. See &#147;The
    Merger&#160;&#151;&#160;Interests of Certain Persons in the
    Merger.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Citizens board of directors was aware of these interests and
    took them into account in its decision to approve the Merger
    Agreement.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">The
    Merger Is Expected to Occur in the Third Quarter of
    2006</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Currently, we anticipate that the merger will occur in the third
    quarter of 2006. However, we cannot assure you when or if the
    merger will occur.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Completion
    of the Merger Is Subject to Satisfaction or Waiver of Certain
    Conditions</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Completion of the merger is subject to the satisfaction or
    waiver of certain conditions including, among others:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    approval of the Merger Agreement by shareholders holding at
    least two thirds
    (66<FONT style="vertical-align: top; font-size: 70&#37;">2</FONT>/<FONT style="font-size: 70&#37;">3</FONT>%)
    of the outstanding shares of Citizens Class&#160;A and
    Class&#160;B common stock that are outstanding and entitled to
    vote;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    approval of the merger by federal and state regulatory
    authorities;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    accuracy of the other party&#146;s representations in the Merger
    Agreement;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    compliance by the other party with all material terms, covenants
    and conditions of the Merger Agreement.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Merger Agreement provides that either Glacier or Citizens
    may terminate the merger either before or after the Citizens
    special meeting, under certain circumstances. Among other
    things, the merger may be terminated under certain circumstances
    if the average closing price of Glacier common stock during the
    valuation period either exceeds or is lower than specified
    amounts. See &#147;The Merger&#160;&#151;&#160;Termination of
    the Merger Agreement.&#148;
</DIV>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    4
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">We May
    Not Complete the Merger Without All Required Regulatory
    Approvals</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The merger must be approved by the Federal Reserve and the
    Montana banking regulators. We have filed applications with
    these regulatory bodies seeking such approval. We expect to
    obtain all such regulatory approvals, although we cannot be
    certain if or when we will obtain them.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Either
    Citizens or Glacier, as the Case May Be, Must Pay a Termination
    Fee Under Certain Circumstances</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Merger Agreement provides that Citizens must pay Glacier a
    termination fee of $250,000 if Glacier terminates the Merger
    Agreement due to a breach by Citizens of its representations or
    covenants, or if the Citizens board of directors does not
    recommend approval of the merger to Citizens shareholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Merger Agreement also provides that Glacier must pay
    Citizens a termination fee of $250,000 if Citizens terminates
    the Merger Agreement due to a breach by Glacier of its
    representations or covenants. See &#147;The Merger
    Agreement&#160;&#151;&#160;Termination Fees.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Citizens
    Must Pay Glacier a
    <FONT style="white-space: nowrap">Break-up</FONT> Fee
    Under Certain Circumstances</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the Merger Agreement, Citizens must pay Glacier a
    <FONT style="white-space: nowrap">break-up</FONT> fee
    of $2.25&#160;million, if the Merger Agreement is terminated due
    to the failure of the Citizens board of directors to recommend
    the merger to its shareholders, or due to the receipt of a
    superior acquisition proposal which is acted upon by Citizens.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Citizens agreed to pay the
    <FONT style="white-space: nowrap">break-up</FONT> fee
    under the circumstances described above in order to induce
    Glacier to enter into the Merger Agreement. This arrangement
    could have the effect of discouraging other companies from
    trying to acquire Citizens. See &#147;The Merger
    <FONT style="white-space: nowrap">Agreement&#160;&#151;&#160;Break-up</FONT>
    Fee.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Citizens
    Shareholders Will Have Different Rights After the
    Merger</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The rights of Citizens shareholders are governed by Montana law,
    as well as Citizens&#146; articles of incorporation and bylaws.
    After completion of the merger, the rights of the former
    Citizens shareholders receiving Glacier common stock in the
    merger will be continue to be governed by Montana law, and by
    Glacier&#146;s articles of incorporation and bylaws. Although
    Glacier&#146;s articles of incorporation and bylaws are similar
    in many ways to Citizens&#146; articles of incorporation and
    bylaws, there are some substantive and procedural differences
    that will affect the rights of Citizens shareholders. See
    &#147;Comparison of Certain Rights of Holders of Glacier and
    Citizens Stock.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Glacier
    intends to conduct an underwritten common stock offering in
    connection with, but not as a condition to, the Merger</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Prior to the closing of the merger, Glacier intends to register
    and sell, in an underwritten offering, approximately one million
    shares of its common stock, including any underwriter&#146;s
    over-allotment. The occurrence of this offering is not a
    condition to the closing of the merger. The proceeds of the
    offering will strengthen Glacier&#146;s tangible and regulatory
    capital position, particularly in light of the significant
    amount of cash being paid in connection with the merger. Subject
    to any earnings adjustment, Citizens shareholders will receive a
    fixed amount of consideration for their shares, although the
    number of Glacier shares exchanged for such Citizens shares will
    fluctuate based on the &#147;average closing price&#148; of
    Glacier Common stock, as determined under the Merger Agreement.
    Since the offering will occur prior to the period during which
    the average closing price will be determined, any effect of the
    offering on the trading price of Glacier common stock will be
    taken into account under the Merger Agreement, and reflected in
    the number of Glacier shares that Citizens shareholders receive
    in the merger.
</DIV>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    5
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<A name='103'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">RISK
    FACTORS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>In addition to the other information contained in or
    incorporated by reference into this document, including the
    matters addressed under the caption &#147;Cautionary
    Note&#160;Regarding Forward-Looking Statements,&#148; you should
    consider the matters described below carefully in determining
    whether to approve the Merger Agreement and the transactions
    contemplated by the Merger Agreement.</I>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">The
    Merger Agreement limits Citizens&#146; ability to pursue other
    transactions and provides for the payment of a break up fee if
    Citizens does so.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    While the Merger Agreement is in effect and subject to very
    narrow exceptions, Citizens and its directors, officers and
    agents are prohibited from initiating or encouraging inquiries
    with respect to alternative acquisition proposals. The
    prohibition limits Citizens&#146; ability to seek offers that
    may be superior from a financial point of view from other
    possible acquirers. If Citizens receives an unsolicited proposal
    from a third party that is superior from a financial point of
    view to that made by Glacier and the Merger Agreement is
    terminated, Citizens may be required to pay a $2.25&#160;million
    <FONT style="white-space: nowrap">break-up</FONT>
    fee. This fee makes it less likely that a third party will make
    an alternative acquisition proposal.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Under
    certain conditions, the Merger Agreement requires Citizens to
    pay a termination fee.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under certain circumstances, Glacier can terminate the Merger
    Agreement and require Citizens to pay a termination fee of
    $250,000.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Because
    the market price of Glacier common stock may fluctuate, you
    cannot be sure of the number of shares of Glacier common stock
    that you will receive.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At the time of the Citizens special meeting, you will not be
    able to determine the number of shares of Glacier common stock
    you would receive upon completion of the merger. Fluctuations in
    Glacier&#146;s stock price will impact how much Glacier common
    stock you own relative to existing Glacier shareholders. Your
    relative portion will be less the higher Glacier&#146;s stock
    price, and more the lower Glacier&#146;s stock price. We urge
    you to obtain current market quotations for Glacier common stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The percentage mix of stock and cash to be received by Citizens
    shareholders making Combination Elections will not be determined
    until closing.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If you make a Combination Election, you will receive Glacier
    stock for that portion of your shares that will cause the total
    Glacier shares issued in the merger to equal 40% of the total
    merger consideration (after taking into account the shares to be
    issued to those making Stock Elections), with the balance of
    your shares paid in cash. However, the number of Citizens
    shareholders who will make Stock Elections are currently
    unknown. Accordingly, the percentage of Glacier common stock and
    cash that you will receive if you make a Combination Election
    cannot be determined until the effectiveness of the merger. For
    a detailed description of the allocation procedures, please see
    the discussion under the heading &#147;The
    Merger&#160;&#151;&#160;Allocation&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Combining
    our two companies may be more difficult, costly or
    time-consuming than we expect.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Glacier and Citizens have operated and, until the completion of
    the merger, will continue to operate, independently. It is
    possible that the integration process could result in the loss
    of key employees, the disruption of the ongoing business of the
    Citizens Banks or inconsistencies in standards, controls,
    procedures and policies that adversely affect our ability to
    maintain relationships with customers and employees or to
    achieve the anticipated benefits of the merger. As with any
    merger of banking institutions, there also may be disruptions
    that cause us to lose customers or cause customers to take their
    deposits out of former Citizens Banks.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Unanticipated
    costs relating to the merger could reduce Glacier&#146;s future
    earnings per share.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Glacier believes that it has reasonably estimated the likely
    costs of integrating the operations of Citizens into Glacier,
    and the incremental costs of operating as a combined company.
    However, it is possible that unexpected transaction costs or
    future operating expenses, as well as other types of
    unanticipated adverse developments, could
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    6
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    have a material adverse effect on the results of operations and
    financial condition of Glacier after the merger. If the merger
    is completed and unexpected costs are incurred, the merger could
    have a significant dilutive effect on Glacier&#146;s earnings
    per share, meaning earnings per share could be less than if the
    merger had not been completed.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Glacier
    may grow through future acquisitions, which could, in some
    circumstances, adversely affect net income.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Glacier anticipates engaging in selected acquisitions of
    financial institutions and assets in the future. There are risks
    associated with Glacier&#146;s acquisition strategy that could
    adversely impact net income. These risks include, among others,
    incorrectly assessing the asset quality of a particular
    institution being acquired, encountering greater than
    anticipated costs of incorporating acquired businesses into
    Glacier, and being unable to profitably deploy funds acquired in
    an acquisition. Furthermore, we can give you no assurance about
    the extent to which Glacier can continue to grow through
    acquisitions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the future, Glacier may issue capital stock in connection
    with additional acquisitions. These acquisitions and related
    issuances of stock may have a dilutive effect on earnings per
    share and ownership. Glacier does not currently have any
    definitive understandings or agreements for any acquisitions
    that involve the issuance of Glacier capital stock. However, as
    noted above, Glacier anticipates that it will continue to expand
    by acquisition in the future.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Glacier
    has various anti-takeover measures that could impede a takeover
    of Glacier.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Glacier has various anti-takeover measures in place, some of
    which are listed elsewhere in this document. Any one or more of
    these measures may impede the takeover of Glacier without the
    approval of the Glacier board of directors and may prevent you
    from taking part in a transaction in which you could realize a
    premium over the current market price of Glacier common stock.
    See &#147;Comparison of Certain Rights of Holders of Glacier and
    Citizens Common Stock.&#148;
</DIV>
<A name='104'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">CAUTIONARY
    NOTE&#160;REGARDING FORWARD-LOOKING STATEMENTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This document, including information included or incorporated by
    reference in this document may contain forward-looking
    statements within the meaning of the Private Securities
    Litigation Reform Act of 1995. These forward-looking statements
    include, but are not limited to, (i)&#160;statements about the
    benefits of the merger, including future financial and operating
    results, cost savings, enhancements to revenue and accretion to
    reported earnings that may be realized from the merger;
    (ii)&#160;statements about our respective plans, objectives,
    expectations and intentions and other statements that are not
    historical facts; and (iii)&#160;other statements identified by
    words such as &#147;expects,&#148; &#147;anticipates,&#148;
    &#147;intends,&#148; &#147;plans,&#148; &#147;believes,&#148;
    &#147;seeks,&#148; &#147;estimates,&#148; or words of similar
    meaning. These forward-looking statements are based on current
    beliefs and expectations of management and are inherently
    subject to significant business, economic and competitive
    uncertainties and contingencies, many of which are beyond
    Glacier&#146;s and Citizens&#146; control. In addition, these
    forward-looking statements are subject to assumptions with
    respect to future business strategies and decisions that are
    subject to change.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following factors, among others, could cause actual results
    to differ materially from the anticipated results or other
    expectations in the forward-looking statements:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our business may not be integrated successfully, or such
    integration may take longer to accomplish than expected;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the anticipated growth opportunities and cost savings from the
    merger may not be fully realized or may take longer to realize
    than expected;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    operating costs, customer losses and business disruption
    following the merger, including adverse developments in
    relationships with employees, may be greater than expected;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    adverse governmental or regulatory policies may be enacted;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the interest rate environment may change, causing margins to
    compress and adversely affecting net interest income;
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    7
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the risks associated with continued diversification of assets
    and potential adverse changes in credit quality;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    increased loan delinquency rates;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    competition from other financial services companies in our
    markets;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the risk of an economic slowdown adversely affecting credit
    quality and loan originations.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Additional factors that could cause actual results to differ
    materially from those expressed in the forward-looking
    statements are discussed in Glacier&#146;s reports filed with
    the SEC.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All subsequent written and oral forward-looking statements
    concerning the proposed transaction or other matters
    attributable to Glacier or Citizens or any person acting on
    behalf of Glacier or Citizens are expressly qualified in their
    entirety by the cautionary statements above. Neither Glacier nor
    Citizens undertake any obligation to update any forward-looking
    statements to reflect circumstances or events that occur after
    the date the forward-looking statements are made.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    8
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<A name='105'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">SELECTED
    HISTORICAL FINANCIAL INFORMATION OF GLACIER</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following selected financial information for the fiscal
    years ended December&#160;31, 2005, 2004, 2003, 2002 and 2001 is
    derived from audited consolidated financial statements of
    Glacier. The financial information of and for the three months
    ended March&#160;31, 2006 and 2005 are derived from unaudited
    financial statements. The unaudited financial statements include
    all adjustments, consisting of normal recurring accruals, which
    Glacier considers necessary for fair presentation of the
    financial results of operations for such periods. The operating
    results for the three months ended March&#160;31, 2006 are not
    necessarily indicative of the results that may be expected for
    the entire year ending December&#160;31, 2006. The financial
    data below should be read in conjunction with the financial
    statements and notes thereto, incorporated by reference in this
    proxy statement/prospectus. See &#147;Where You Can Find More
    Information About Glacier.&#148;
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">GLACIER
    BANCORP, INC. AND SUBSIDIARIES<BR>
    SELECTED CONDENSED CONSOLIDATED AND OTHER FINANCIAL
    INFORMATION</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="38%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 7pt">At or for the Three Months Ended
    March 31</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 7pt">At or for the Fiscal Years Ended
    December&#160;31</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 7pt">2006</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 7pt">2005</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 7pt">2005</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 7pt">2004</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 7pt">2003</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 7pt">2002</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 7pt">2001</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="26" align="center" valign="bottom">
    <B><FONT style="font-size: 7pt">($ in thousands, except per
    share data)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <B><FONT style="font-size: 9pt">Summary of Operations</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 9pt">Interest income
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    55,952
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    40,507
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    189,985
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    147,285
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    130,830
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    133,989
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    137,920
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 9pt">Interest expense
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,644
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,051
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    59,978
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    39,892
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    38,478
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    47,522
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    65,546
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 9pt">Net interest income
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    36,308
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28,456
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    130,007
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    107,393
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    92,352
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    86,467
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    72,374
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 9pt">Provision for loan losses
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,165
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,490
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,023
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,195
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,809
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,745
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,525
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 9pt">Net interest income after provision
    for loan losses
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35,143
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26,966
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    123,984
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    103,198
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    88,543
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    80,722
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    67,849
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 9pt">Noninterest income
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,156
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,108
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    44,626
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    34,565
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    33,562
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25,917
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23,251
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 9pt">Noninterest expenses
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25,827
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,074
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    90,926
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    72,133
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    65,944
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    57,813
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    57,385
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 9pt">Pre-tax net income
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,472
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    77,684
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    65,630
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    56,161
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    48,826
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    33,715
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 9pt">Taxes
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,843
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,480
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25,311
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21,014
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,153
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,424
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,026
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 9pt">Net income
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,629
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,520
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    52,373
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    44,616
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    38,008
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    32,402
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21,689
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 9pt">Basic earnings per share
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.42
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.37
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1.67
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1.46
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1.26
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1.10
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.80
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 9pt">Diluted earnings per share
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.42
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.37
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1.64
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1.43
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1.24
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1.08
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.78
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 9pt">Cash dividends per share
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.16
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.14
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.60
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.54
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.48
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.39
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.35
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <B><FONT style="font-size: 9pt">Statement of Financial
    Condition:</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 9pt">Total assets
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,800,158
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,306,440
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,706,344
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,010,737
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,739,633
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,281,344
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,085,747
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 9pt">Net loans receivable and LHFS
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,527,432
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,879,932
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,397,187
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,701,805
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,430,365
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,300,653
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,322,327
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 9pt">Total deposits
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,693,399
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,976,681
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,534,712
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,729,708
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,597,625
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,459,923
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,446,064
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 9pt">Total borrowings
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    640,190
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    943,943
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    719,413
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    900,148
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    842,280
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    544,953
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    399,880
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 9pt">Shareholder&#146;s equity
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    344,391
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    273,449
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    333,239
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    270,184
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    237,839
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    212,249
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    176,983
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 9pt">Book value per share
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10.66
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8.86
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10.36
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8.80
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7.86
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7.14
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6.11
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <B><FONT style="font-size: 9pt">Key Operating Ratios:</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 9pt">Return on average assets
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.48
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.50
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.52
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.54
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.53
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.50
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.10
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 9pt">Return on average
    shareholders&#146; equity
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16.21
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17.06
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17.62
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17.61
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16.82
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16.57
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13.49
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 9pt">Average equity to average assets
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.12
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.80
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.61
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.75
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.10
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.08
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.26
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 9pt">Net interest margin(1)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.32
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.08
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.20
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.15
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.20
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.51
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.08
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 9pt">Non-performing over assets
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.27
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.27
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.26
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.32
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.48
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.51
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.53
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 9pt">Dividend payout ratio
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    38.10
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37.84
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35.93
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37.36
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    38.07
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35.45
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    43.48
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Calculated on a tax equivalent basis.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    9
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<A name='106'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">HISTORICAL
    AND PRO FORMA PER SHARE DATA</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The table set below presents the historical earnings, book value
    and cash dividends per share as of March&#160;31, 2006, and the
    three months then ended, and as of December&#160;31, 2005, and
    the year then ended, for Glacier, together with the pro forma
    amounts after giving effect to the merger. This data should be
    read in conjunction with the Glacier financial statements and
    other financial information included elsewhere in this document
    or incorporated into this document by reference. The pro forma
    data are not necessarily indicative of future operating results
    or financial position.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The table below also presents the closing prices per share for
    Glacier and Citizens common stock, respectively, on the day
    prior to the announcement of the merger together with the pro
    forma equivalent market value of Citizens shares after giving
    effect to the merger. The pro forma equivalent per share data
    for Citizens is calculated by multiplying the historical per
    share data for Glacier by the implied exchange ratio of 5.201
    used to calculate the merger consideration. The pro forma
    information provided below assumes that the total merger
    consideration equals $77&#160;million, and is not
    (i)&#160;decreased by the amount of any excess transaction fees,
    or (ii)&#160;increased by the amount of any earnings adjustment,
    both as described elsewhere in this document. See the discussion
    under the heading &#147;Comparative Stock Price and Dividend
    Information&#148; on the next page for important information
    about the limited trading in stock of Citizens and the effect
    that may have on the reliability of the share price data. The
    pro forma combined and pro forma equivalent information provided
    below does not reflect the effect of the proposed issuance by
    Glacier of up to 1&#160;million additional shares of common
    stock in the underwritten public stock offering described under
    &#147;Summary&#148; above.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="60%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 8pt">Glacier</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 8pt">Citizens</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="font-size: 8pt">Pro Forma <BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="font-size: 8pt">Pro Forma <BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 8pt">Historical</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 8pt">Combined</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 8pt">Historical</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 8pt">Equivalent</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-size: 10pt">Basic earnings per share:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    <FONT style="font-size: 10pt">Year ended December&#160;31, 2005
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1.67
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1.77
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10.15
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8.69
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    <FONT style="font-size: 10pt">Three months ended March&#160;31,
    2006
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.42
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
     .41
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (0.32
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2.18
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-size: 10pt">Diluted earnings per share:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    <FONT style="font-size: 10pt">Year ended December&#160;31, 2005
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1.64
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1.74
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10.15
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8.53
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    <FONT style="font-size: 10pt">Three months ended March&#160;31,
    2006
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.42
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
     .40
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (0.32
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2.18
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-size: 10pt">Book value per share at:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    <FONT style="font-size: 10pt">December&#160;31, 2005
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10.36
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10.98
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    77.46
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    53.88
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    <FONT style="font-size: 10pt">March&#160;31, 2006
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10.66
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    11.27
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    76.14
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    55.44
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-size: 10pt">Cash dividends per share declared:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    <FONT style="font-size: 10pt">Year ended December&#160;31, 2005
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
     .60
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
     .65
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1.72
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3.12
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    <FONT style="font-size: 10pt">Three months ended March&#160;31,
    2006
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
     .16
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
     .19
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1.06
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    .83
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-size: 10pt">Market value per share at
    April&#160;20, 2006
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    31.40
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
     N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
     N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    163.32
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    10
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<A name='107'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">COMPARATIVE
    STOCK PRICE AND DIVIDEND INFORMATION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Glacier
    Common Stock</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Glacier common stock is quoted on the Nasdaq National Market
    under the symbol &#147;GBCI.&#148; The following table sets
    forth for the periods indicated:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the high and low sale prices for Glacier common stock as
    reported on the Nasdaq National Market,&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    dividends per share on Glacier common stock.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="72%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="font-size: 8pt">Cash<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="font-size: 8pt">Dividends <BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 8pt">High*</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 8pt">Low*</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 8pt">Declared</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">2004
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">First quarter
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    21.63
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    18.88
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.13
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Second quarter
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    22.60
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    19.59
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.13
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Third quarter
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    24.28
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    20.60
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.14
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Fourth quarter
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    28.71
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    23.12
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.14
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">2005
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">First quarter
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    27.98
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    23.59
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.14
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Second quarter
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    26.39
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    21.07
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.15
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Third quarter
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    31.40
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25.91
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.15
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Fourth quarter
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    33.50
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    28.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.16
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">2006
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">First quarter
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    32.71
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    29.58
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.16
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Second quarter (through
    May&#160;8, 2006)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    31.80
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    29.37
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    * </TD>
    <TD></TD>
    <TD valign="bottom">
    Adjusted for stock splits and stock dividends.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At May&#160;8, 2006, the 32,337,527 outstanding shares of
    Glacier common stock were held by approximately
    10,932&#160;holders of record.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Citizens
    Common Stock</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Citizens common stock is not quoted on a stock exchange or
    market and no broker makes a market in the stock. Stock transfer
    records maintained by Citizens indicate that there have been
    very infrequent transactions in Citizens&#146; stock, other than
    purchases and sales to certain qualified individuals made in
    accordance with the Citizens Shareholders Agreement. Other sales
    and purchases of shares of Citizens common stock are privately
    negotiated, and Citizens is often not aware of the price for
    those transactions. Citizens is aware of no transfers of
    Citizens common stock between independent parties (persons not
    subject to the Citizens Shareholder Agreement) since 1995.
    Consequently, no trading price date is available which would
    accurately reflect the actual market value of the shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At May&#160;8, 2006, the 471,473.15 outstanding shares of
    Citizens Class&#160;A and Class&#160;B common stock were held by
    approximately 66&#160;holders of record.
</DIV>
<A name='108'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">CITIZENS
    DEVELOPMENT COMPANY SPECIAL SHAREHOLDERS&#146; MEETING</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Date,
    Time, Place</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Citizens special meeting of shareholders will be held on
    Wednesday, June&#160;28, 2006, at 4:00&#160;p.m. local time, at
    the offices of the First Citizens Bank of Billings, 2812 First
    Avenue North, Billings, Montana.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As described below under &#147;Vote Required,&#148; approval of
    the Merger Agreement requires the affirmative vote of at least
    two thirds
    (66<FONT style="vertical-align: top; font-size: 70&#37;">2</FONT>/<FONT style="font-size: 70&#37;">3</FONT>%)
    of the shares of each of the Citizens Class&#160;A and
    Class&#160;B common stock that are outstanding and entitled to
    vote on the record date, each class voting separately as a
    group. If there are not sufficient votes represented at
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    11
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    the special meeting, either in person or by proxy, to approve
    the Merger Agreement, or if a quorum is not present, Citizens
    may adjourn or postpone the meeting in order to permit further
    solicitation of proxies by Citizens. The persons appointed as
    proxies on the form accompanying this document are authorized to
    vote to approve such adjournment or postponement, unless the
    proxy appointing them instructs them to vote against approval of
    the Merger Agreement.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Purpose</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At the special meeting, Citizens shareholders will:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    consider and vote on a proposal to approve the merger,&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    if necessary, consider and act upon a proposal to adjourn the
    special meeting to allow additional time to solicit proxies
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Record
    Date; Shares&#160;Outstanding and Entitled to Vote</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Citizens board of directors has fixed 5:00&#160;p.m. on
    May&#160;24, 2006 as the record date for determining the holders
    of shares of Citizens common stock entitled to notice of and to
    vote at the special meeting. At the close of business on the
    Citizens record date, there were 471,473.15 total shares of
    Class&#160;A and Class&#160;B common stock issued and
    outstanding held by approximately 66&#160;holders of record.
    Holders of record of Citizens common stock on the record date
    are entitled to one vote per share, and are also entitled to
    exercise dissenters&#146; rights if certain procedures are
    followed. See &#147;The Merger&#160;&#151;&#160;Dissenters&#146;
    Rights of Appraisal&#148; and <B>Appendix&#160;B.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Voting Agreement Shareholders have agreed to vote all
    Citizens shares held or controlled by him or it in favor of
    approval of the merger. A total of 403,021.40 outstanding
    shares, or approximately 85.48% of the outstanding shares of
    Citizens common stock, are covered by this voting agreement.
    This percentage represents more than the two-thirds
    (66<FONT style="vertical-align: top; font-size: 70&#37;">2</FONT>/<FONT style="font-size: 70&#37;">3</FONT>%)
    vote of each of the Class&#160;A common stock and the
    Class&#160;B common stock required to approve the merger. See
    &#147;The Merger&#160;&#151;&#160;Voting Agreement.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Vote
    Required</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The affirmative vote of at least two thirds
    (66<FONT style="vertical-align: top; font-size: 70&#37;">2</FONT>/<FONT style="font-size: 70&#37;">3</FONT>%)
    of the shares of Citizens Class&#160;A and Class&#160;B common
    stock outstanding and entitled to vote on the record date, each
    voting separately as a group, is required to approve the merger.
    At least fifty percent (50%) of the total outstanding shares of
    Class&#160;A and Class&#160;B Citizens common stock must be
    present, either in person or by proxy, in order to constitute a
    quorum for the meeting. For this purpose, abstentions and broker
    nonvotes (that is, proxies from brokers or nominees, indicating
    that such person has not received instructions from the
    beneficial owners or other persons entitled to vote shares as to
    a matter with respect to which the broker or nominees do not
    have discretionary power to vote) are counted in determining the
    shares present at a meeting.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For voting purposes, however, only shares actually voted <B>for
    </B>the approval of the Merger Agreement, and neither
    abstentions nor broker nonvotes, will be counted as favorable
    votes in determining whether the Merger Agreement is approved by
    the holders of Citizens common stock. <B>As a result,
    abstentions and broker nonvotes will have the same effect as
    votes against approval of the Merger Agreement.</B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Voting,
    Solicitation, and Revocation of Proxies</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the enclosed proxy card is duly executed and received in time
    for the special meeting, it will be voted in accordance with the
    instructions given. If the proxy card is duly executed and
    received but no instruction is given, it is the intention of the
    persons named in the proxy to vote the shares represented by the
    proxy <B>for the approval of the merger and in the proxy&#146;s
    discretion on any other matter coming before the meeting.</B>
    Any proxy given by a shareholder may be revoked before its
    exercise by:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    written notice to the Secretary of Citizens;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a later-dated proxy;&#160;or
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    appearing and voting at the special meeting in person.
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    12
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Citizens is soliciting the proxy for the special meeting on
    behalf of the Citizens board of directors. Citizens will bear
    the cost of solicitation of proxies from its shareholders. In
    addition to using the mails, Citizens may solicit proxies by
    personal interview, telephone, and facsimile. Banks, brokerage
    houses, other institutions, nominees, and fiduciaries will be
    requested to forward their proxy soliciting material to their
    principals and obtain authorization for the execution of
    proxies. Citizens does not expect to pay any compensation for
    the solicitation of proxies. However, Citizens will, upon
    request, pay the standard charges and expenses of banks,
    brokerage houses, other institutions, nominees, and fiduciaries
    for forwarding proxy materials to and obtaining proxies from
    their principals.
</DIV>
<A name='109'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">BACKGROUND
    OF AND REASONS FOR THE MERGER</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Background
    of the Merger</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Citizens was formed in 1968. In 1976, John T. Vucurevich
    acquired majority ownership of Citizens. In 1998,
    Mr.&#160;Vucurevich transferred his majority ownership in
    Citizens, together with his ownership interests in two other
    bank holding companies, to the Trust. The Trust provided for the
    transfer at the time of Mr.&#160;Vucurevich&#146;s death of
    substantially all of Mr.&#160;Vucurevich&#146;s banking
    interests to the Foundation. The trustee of the Trust is advised
    by a board of advisors with regard to all activities related to
    bank holding company stock owned by the Trust, including the
    Trust&#146;s ownership of Citizens. Similarly, the trustee of
    the Foundation is advised by a board of advisors with regard to
    activities related to bank holding company stocks owned by the
    Foundation, including Citizens. Subsequent to
    Mr.&#160;Vucurevich&#146;s death in June of 2005, the board of
    advisors of the Trust and of the Foundation reviewed and
    discussed alternatives relating to the transfer of Trust assets
    to the Foundation and the disposition and use of those assets.
    In November of 2005, both the Foundation and the Trust concluded
    that the most prudent alternative would be to pursue a sale of
    Citizens in order to realize the full value for the Trust&#146;s
    ownership interest in Citizens and to diversify and enhance the
    liquidity of the Foundation&#146;s overall assets once it had
    received a final distribution of the Trust&#146;s assets.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In November of 2005, the Trust and the Foundation informed the
    Citizens board of directors of their decision, and the board
    agreed to move forward with the sale of Citizens. In November of
    2005, Citizens solicited proposals from investment banking firms
    to provide advisory services in connection with the sale
    process. In December of 2005, Citizens hired D.A.
    Davidson&#160;&#38; Co. (&#147;Davidson&#148;) to serve as its
    investment banking advisor.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In January and February of 2006, Davidson conducted due
    diligence, met with Citizens management, prepared financial
    analyses, and assisted management in drafting an informational
    memorandum and identifying and qualifying prospective acquirers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    From February 14 to February&#160;28, 2006, Davidson contacted
    prospective acquirers, received signed confidentiality
    agreements from such parties, provided interested parties with
    the informational memorandum, and assisted Citizens management
    in providing supplemental information.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On March&#160;10, 2006, the board of directors of Glacier met
    and authorized management to submit a preliminary proposal for
    the merger of Citizens into Glacier, substantially on the terms
    subsequently reflected in the Merger Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On March&#160;10, 2006, Davidson received preliminary proposals
    and indications of interest from prospective acquirers,
    including Glacier. From March 13 to March&#160;15, 2006,
    Davidson had follow-on discussions with several of the
    interested parties to discuss and clarify or confirm various
    aspects of their proposals.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On March&#160;16, 2006, the board of directors and professional
    advisors and counsel to Citizens and the Trust met to review and
    consider the various proposals. The Board reviewed and discussed
    their fiduciary duties to the shareholders and other
    stakeholders of Citizens, the process undertaken to date, the
    terms of the various proposals, and in particular, the terms and
    related considerations of the top three proposals. The board
    determined that the proposal from Glacier was most favorable to
    Citizens, and instructed Davidson to contact Glacier to further
    negotiate the mix of stock and cash (to provide more cash to the
    Citizens shareholders), and to request that the
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    13
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Glacier shares to be delivered in the merger would be registered
    shares. After discussion and negotiation, Glacier agreed to
    provide 60% of the merger consideration in cash, and further
    agreed to register the Glacier shares to be issued to Citizens
    shareholders in the merger. The Citizens board informed Glacier
    that the Company would move forward under the revised terms and
    requested that Glacier provide an updated term sheet reflecting
    the revised terms. On the morning of March&#160;17, 2006, the
    board of directors of Citizens and the board of advisors to the
    trustees of the Trust separately met and adopted resolutions
    formally approving of entering into the updated term sheet with
    Glacier.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    From March 17 to April&#160;18, 2006, Glacier and its advisors
    conducted due diligence, performed independent loan reviews at
    the Citizens Banks, conducted a financial audit of the Citizens
    balance sheet, and delivered and negotiated drafts of the Merger
    Agreement and related documents and agreements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    From March 22 to March&#160;28, 2006, Citizens solicited
    proposals from experienced financial advisory and investment
    banking firms for the delivery and support of an independent
    opinion as the fairness of the merger to the Citizens
    shareholders, from a financial point of view. On March&#160;29,
    2006, Citizens selected Hovde Financial, Inc.
    (&#147;Hovde&#148;) to provide services related to the support
    and delivery of the fairness opinion. From March 29 to
    April&#160;18, 2006, Hovde conducted due diligence reviews,
    prepared financial analyses, evaluated information related to
    other bank merger transactions and publicly traded banks,
    reviewed the Merger Agreement, and prepared a presentation of
    its findings.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On April&#160;18, 2006, Hovde presented its analyses and
    findings to the board of directors of Citizens, comparing the
    value to be received by Citizens shareholders in the merger to
    valuations under other comparable transactions and valuation
    methodologies, and providing information concerning the
    valuation, performance, and trading characteristics of Glacier
    shares. Hovde advised the board of its opinion that the merger
    is fair to Citizens shareholders, from a financial point of
    view, and delivered its formal written opinion to that effect.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On April&#160;19, 2006, the board of directors of Glacier met to
    consider approval of the merger. Matters discussed included the
    fiduciary duties of the directors, the results of due diligence
    reviews, the terms of the Merger Agreement and related
    documents, the pro forma financial impact and strategic
    implications of the merger, and the timing and process for
    consummation of the merger. After due consideration of these
    matters, the Glacier board approved the merger by unanimous vote.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On the morning of April&#160;19, 2006, the board of advisors to
    the trustee of the Trust and the board of advisors to the
    trustee of the Foundation met and adopted resolutions formally
    approving the proposed merger and approving the execution of the
    Merger Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On April&#160;20, 2006, the board of directors of Citizens met
    to consider approval of the merger with Glacier. Matters
    discussed included the fiduciary duties of the directors, the
    process undertaken to date, the terms of the Merger Agreement,
    the conditions to closing, the termination and
    <FONT style="white-space: nowrap">break-up</FONT> fee
    arrangements, the form of consideration to be received, the
    analyses and findings of Hovde, the process required before
    closing, and the implications of the merger to Citizens
    shareholders, employees, and customers. After due consideration
    of these matters, the Citizens board approved the merger by
    unanimous vote.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Glacier and Citizens executed the Merger Agreement and related
    documents on the afternoon of April&#160;20, 2006. After the
    close of business on April&#160;20, 2006, the parties issued a
    joint press release announcing the execution of the Merger
    Agreement.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Reasons
    For The Merger&#160;&#151;&#160;Citizens</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Citizens board of directors believes the merger is in the
    best interests of Citizens and the Citizens shareholders. The
    Citizens board of directors unanimously recommends that Citizens
    shareholders vote <B>for </B>the approval of the Merger
    Agreement and the consummation of the transaction contemplated
    by that Merger Agreement.
</DIV>

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    <BR>
    14
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In reaching its determination to approve the Merger Agreement,
    the Citizens board of directors consulted with its management
    and its financial and legal advisors, and considered a number of
    factors. Following is a description of each of the material
    factors that Citizens board of directors believes favor the
    merger:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Terms of the Merger.</I>&#160;&#160;The terms of the merger,
    including the total dollar amount of the consideration being
    paid, the form of consideration, the potential increase in
    purchase price through the earnings adjustment, and the
    flexibility allowed Citizens to pay dividends, stay bonuses, and
    transaction expenses, and to incur other adjustments that will
    affect closing capital. The fact that the aggregate
    consideration being paid to Citizens shareholders represented a
    premium over the value of Citizens established by other recent
    appraisals and valuation analyses.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Liquidity for Glacier Shares.</I>&#160;&#160;The expectation
    that Glacier common stock will provide a high level of liquidity
    for Citizens shareholders, with an average weekly trading volume
    during the past ninety days of more than 400,000 Glacier shares.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Confidence to Close.</I>&#160;&#160;The fact that Glacier has
    substantial financial resources, with no dependence on outside
    funding to consummate the merger. The fact that Glacier has a
    demonstrated and favorable track record of having completed bank
    acquisitions on the terms and within the timeframes initially
    agreed upon by the parties.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Fairness Opinion.</I>&#160;&#160;Hovde&#146;s opinion,
    discussed below in &#147;Opinion of Company Financial Advisor to
    Citizens,&#148; stating that, based upon and subject to, the
    assumptions made, matters considered and qualifications and
    limitations stated in the opinion, as of April&#160;18, 2006,
    the merger consideration was fair to Citizens shareholders from
    a financial point of view.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Products&#160;&#38; Services.</I>&#160;&#160;The fact that
    Citizens&#146; customers would be afforded new products and
    services not previously available. For instance, larger credit
    relationships, additional deposit and loan products, expanded
    online, and enhanced cash management services will be available.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Corporate Values.</I>&#160;&#160;The understanding that
    Glacier and Citizens share a common vision of the importance of
    customer service and local decision making and that management
    and employees of the Citizens Banks and Glacier possess
    complementary skills and expertise.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Competitive Issues.</I>&#160;&#160;The fact that competition
    in the Citizens market has increased in the past few years and
    is expected to increase in the future as other larger banks
    enter the market.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Future Prospects.</I>&#160;&#160;The belief that future
    business and expansion prospects of the Citizens Banks will be
    stronger on a combined basis.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Employee Matters.</I>&#160;&#160;The expectation that the
    merger will generally expand the career opportunities and
    employee benefits available to many Citizens employees.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Tax Free Reorganization.</I>&#160;&#160;The expectation that
    the merger will constitute a tax free reorganization under
    section&#160;368(a) of the Internal Revenue Code.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Approvals.</I>&#160;&#160;The likelihood of receiving
    required regulatory approvals and achieving other conditions to
    closing in a timely fashion.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the course of its deliberations regarding the merger, the
    Citizens board of directors also considered the following
    information, which the board of directors determined did not
    outweigh the benefits to Citizens and its shareholders expected
    to be generated by the merger:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Consideration Unknown until Closing.</I>&#160;&#160;Because
    the market price of Glacier common stock will fluctuate, and
    because the total merger consideration is payable in cash and in
    Glacier common stock, Citizens shareholders cannot be sure of
    the number of shares of Glacier common stock that will be
    exchanged for shares of Citizens common stock, or the form of
    merger consideration that they will receive until the completion
    of the merger.
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    15
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Business Interruption.</I>&#160;&#160;The possible disruption
    to Citizens Banks&#146; business that may result from the
    announcement of the merger and the resulting distraction of
    management&#146;s attention from the
    <FONT style="white-space: nowrap">day-to-day</FONT>
    operations of the Citizens Banks&#146; business.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Integration Issues.</I>&#160;&#160;The difficulty inherent in
    integrating two businesses and the risk that the cost
    efficiencies, synergies and other benefits expected to be
    obtained in the merger may not be fully realized.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Operational Restrictions.</I>&#160;&#160;The restrictions
    contained in the Merger Agreement on the operation of
    Citizens&#146; business during the period between the signing of
    the Merger Agreement and completion of the merger.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Termination, No-Approval and Break-Up
    Fees.</I>&#160;&#160;Under certain circumstances, Glacier may
    terminate the Merger Agreement and require Citizens to pay a
    termination fee of $250,000. In certain circumstances where the
    Merger Agreement is terminated following the receipt of a
    superior proposal prior to the consummation of the merger and
    such a superior proposal is accepted within the twelve months
    following such termination and then subsequently consummated,
    Citizens may be required to pay a
    <FONT style="white-space: nowrap">break-up</FONT> fee
    of $2.25&#160;million.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Risk of Termination.</I>&#160;&#160;The possibility that the
    merger might not be completed and the effect of the resulting
    public announcement of the termination of the Merger Agreement
    on, among other things, the market price of Citizens common
    stock and Citizens operating results, particularly in light of
    the costs incurred in connection with the transaction.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Other Matters.</I>&#160;&#160;Other matters described in the
    sections entitled &#147;Risk Factors&#148; and &#147;The
    Merger&#160;&#151;&#160;Interests of Certain Persons in the
    Merger.&#148;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The foregoing discussion of the information considered by the
    Citizens board of directors is not intended to be exhaustive but
    includes all of the material factors considered by the board of
    directors. In reaching its determination to approve and
    recommend the merger, the Citizens board of directors did not
    assign any relative or specific weights to the factors
    considered in reaching that determination and individual
    directors may have given differing weights to different factors.
    Given the above, the Citizens board of directors determined that
    the Merger Agreement is in the best interests of Citizens and
    its shareholders and unanimously approved the merger.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Opinion
    of Financial Advisor to Citizens</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Hovde has delivered to the Board of Directors of Citizens its
    opinion that, based upon and subject to the various
    considerations set forth in its written opinion dated
    April&#160;18, 2006, the total transaction consideration to be
    paid to the shareholders of Citizens is fair from a financial
    point of view as of such date. In requesting Hovde&#146;s advice
    and opinion, no limitations were imposed by Citizens upon Hovde
    with respect to the investigations made or procedures followed
    by it in rendering its opinion. <B>The full text of the opinion
    of Hovde, dated April&#160;18, 2006, which describes the
    procedures followed, assumptions made, matters considered and
    limitations on the review undertaken, is attached to this
    document as Appendix&#160;C. Citizens shareholders should read
    this opinion in its entirety.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Hovde is a nationally recognized investment banking firm and, as
    part of its investment banking business, is continually engaged
    in the valuation of financial institutions in connection with
    mergers and acquisitions, private placements and valuations for
    other purposes. As a specialist in securities of financial
    institutions, Hovde has experience in, and knowledge of, banks,
    thrifts and bank and thrift holding companies. The Board of
    Directors of Citizens selected Hovde to act as its financial
    advisor in connection with the merger on the basis of the
    firm&#146;s reputation and expertise in transactions such as the
    merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Hovde received a fee from Citizens for performing a financial
    analysis of the merger and rendering a written opinion to the
    Board of Directors of Citizens as to the fairness, from a
    financial point of view, of the merger to the shareholders of
    Citizens. Hovde received all of such fee subsequent to its
    presentation of its fairness opinion and analysis to the Board
    of Directors of Citizens. Citizens has also agreed to indemnify
    Hovde Financial against any claims, losses and expenses arising
    out of the merger or Hovde&#146;s engagement that did not arise
    from Hovde&#146;s gross negligence or willful misconduct.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    16
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Hovde&#146;s opinion is directed only to the fairness, from a
    financial point of view, of the total transaction consideration,
    and, as such, does not constitute a recommendation to any
    shareholder of Citizens as to how the shareholder should vote at
    the Citizens shareholder meeting. The summary of the opinion of
    Hovde set forth below is qualified in its entirety by reference
    to the full text of the opinion.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following is a summary of the analyses performed by Hovde in
    connection with its fairness opinion. Certain of these analyses
    were confirmed in a presentation to the Board of Directors of
    Citizens by Hovde. The summary set forth below does not purport
    to be a complete description of either the analyses performed by
    Hovde in rendering its opinion or the presentation delivered by
    Hovde to the Board of Directors of Citizens, but it does
    summarize all of the material analyses performed and presented
    by Hovde.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The preparation of a fairness opinion involves various
    determinations as to the most appropriate and relevant methods
    of financial analyses and the application of those methods to
    the particular circumstances. In arriving at its opinion, Hovde
    did not attribute any particular weight to any analysis and
    factor considered by it, but rather made qualitative judgments
    as to the significance and relevance of each analysis and
    factor. Hovde may have given various analyses more or less
    weight than other analyses. Accordingly, Hovde believes that its
    analyses and the following summary must be considered as a whole
    and that selecting portions of its analyses, without considering
    all factors and analyses, could create an incomplete view of the
    process underlying the analyses set forth in its report to the
    Citizens board of directors and its fairness opinion.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In performing its analyses, Hovde made numerous assumptions with
    respect to industry performance, general business and economic
    conditions and other matters, many of which are beyond the
    control of Citizens and Glacier. The analyses performed by Hovde
    are not necessarily indicative of actual value or actual future
    results, which may be significantly more or less favorable than
    suggested by such analyses. Such analyses were prepared solely
    as part of Hovde&#146;s analysis of the fairness of the
    transaction consideration, from a financial point of view, to
    Citizens shareholders. The analyses do not purport to be an
    appraisal or to reflect the prices at which a company might
    actually be sold or the prices at which any securities may trade
    at the present time or at any time in the future. Hovde&#146;s
    opinion does not address the relative merits of the merger as
    compared to any other business combination in which Citizens
    might engage. In addition, as described above, Hovde&#146;s
    opinion to the Citizens board of directors was one of many
    factors taken into consideration by the Citizens board of
    directors in making its determination to approve the Merger
    Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    During the course of its engagement, and as a basis for arriving
    at its opinion, Hovde reviewed and analyzed material bearing
    upon the financial and operating conditions of Citizens and
    Glacier and material prepared in connection with the merger,
    including, among other things, the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the Merger Agreement;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    certain historical publicly available information concerning
    Citizens and Glacier;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    certain financial projections prepared by the managements of
    Citizens;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    certain internal financial and other information provided to
    Hovde by the managements of Citizens and Glacier;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    historical market prices and trading volumes of Glacier stock;
    and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the nature and terms of recent merger transactions involving
    banks and bank holding companies that Hovde considered relevant;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Hovde conducted meetings and had discussions with members of the
    senior managements of Citizens and Glacier for purposes of
    reviewing the future prospects of Citizens and Glacier. Hovde
    also took into account its experience in other transactions, as
    well as its knowledge of the commercial banking industry and its
    general experience in securities valuations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In rendering its opinion, Hovde assumed, without independent
    verification, the accuracy and completeness of the financial and
    other information and relied upon the accuracy of the
    representations of the parties contained in the Merger
    Agreement. Hovde also assumed that the financial forecasts
    furnished to or discussed with Hovde by Citizens and Glacier
    were reasonably prepared and reflected the best currently
    available estimates and judgments of
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    17
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    the senior managements of Citizens and Glacier as to the future
    financial performance of Citizens and Glacier. Hovde has not
    made any independent evaluation or appraisal of any properties,
    assets or liabilities of Citizens or Glacier. Hovde assumed and
    relied upon the accuracy and completeness of the publicly
    available and other non-public financial information provided to
    it by Citizens and Glacier, relied upon the representations and
    warranties of Citizens and Glacier made pursuant to the Merger
    Agreement, and did not independently attempt to verify any of
    such information.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Analysis of Selected Mergers.</I>&#160;&#160;As part of its
    analysis, Hovde reviewed two groups of comparable merger
    transactions. The first peer group included transactions, which
    have occurred since January&#160;1, 1995, that involved target
    banks in the Inland Northwestern United States (MT, ID, WY) that
    had total assets greater than $50.0 million (the &#147;Inland
    Northwestern Merger Group&#148;). This Inland Northwestern
    Merger Group consisted of the following 17&#160;transactions:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="50%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="48%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B><FONT style="font-size: 8pt">Buyer</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B><FONT style="font-size: 8pt">Seller</FONT></B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">United Bancorp. of WY (WY)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">First Natl Bk Hldg Co. Inc. (WY)
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Glacier Bancorp Inc. (MT)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Thompson Falls Holding Company (MT)
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Glacier Bancorp Inc. (MT)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Citizens Bank Holding Company (ID)
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Glacier Bancorp Inc. (MT)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">First National Banks-West Co. (WY)
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Intermountain Community Bncp (ID)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Snake River Bancorp (ID)
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Heartland Financial USA Inc. (IA)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Rocky Mountain Bancorp. Inc. (MT)
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Glacier Bancorp Inc. (MT)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Pend Oreille Bancorp (ID)
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Stockman Financial Corp. (MT)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Marquette Bank Montana, NA (MT)
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Inter-Mountain Bancorp, Inc. (MT)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Chouteau Cnty Bancshares, Inc. (MT)
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">First Interstate BancSystem (MT)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Equality Bankshares Inc. (WY)
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">First Interstate BancSystem (MT)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Security State B&#38;TC (MT)
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Norwest Corp. (MN)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Riverton State Bk Hldg Co. (WY)
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Montana Security, Inc. (MT)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">NE Montana Bk Shares, Inc. (MT)
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Community First Bankshares (ND)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">KeyBank
    NA&#160;&#151;&#160;Wyoming (WY)
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">First Interstate BancSystem (MT)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">First Interstate BK of WY, NA (WY)
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Rocky Mountain Bancorp., Inc. (MT)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">N.E. Montana Bancshares, Inc. (MT)
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">First Interstate BancSystem (MT)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">First Park Cnty Bkshrs, Inc. (MT)
    </FONT>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    18
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Hovde also reviewed comparable mergers involving target banks in
    the State of Montana that had total assets greater than
    $30.0&#160;million (the &#147;Montana Merger Group&#148;). This
    Montana Merger Group consisted of the following 15 transactions:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="50%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="48%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B><FONT style="font-size: 8pt">Buyer</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B><FONT style="font-size: 8pt">Seller</FONT></B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Glacier Bancorp Inc. (MT)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Thompson Falls Holding Company (MT)
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Heartland Financial USA Inc. (IA)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Rocky Mountain Bancorp. Inc. (MT)
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">First Interstate BancSystem (MT)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Silver Run Bancorp, Inc. (MT)
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Mountain West Financial Corp. (MT)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Bankwest Financial, Inc. (MT)
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Stockman Financial Corp. (MT)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Marquette Bank Montana, NA (MT)
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Inter-Mountain Bancorp, Inc. (MT)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Chouteau Cnty Bancshares, Inc. (MT)
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Flathead Hldg Co. of Bigfork (MT)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Mountain Bank System, Inc. (MT)
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Stockman Financial Corp. (MT)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Terry Bancshares, Inc. (MT)
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">First Interstate BancSystem (MT)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Security State B&#38;TC (MT)
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Montana Security, Inc. (MT)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">NE Montana Bk Shares, Inc. (MT)
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Rocky Mountain Bancorp., Inc. (MT)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">N.E. Montana Bancshares, Inc. (MT)
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">First Interstate BancSystem (MT)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">First Park Cnty Bkshrs, Inc. (MT)
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">First Interstate BancSystem (MT)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Citizens Bancshares, Inc. (MT)
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Bank of Montana System (MT)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Montana Bancsystem, Inc. (MT)
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Glacier Bancorp Inc. (MT)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Everreen Bancorporation, Inc. (MT)
    </FONT>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Hovde calculated the medians and averages of the following
    relevant transaction ratios in the Inland Northwestern Merger
    Group and the Montana Merger Group: The multiple of the offer
    value to the acquired company&#146;s earnings for the twelve
    months preceding the announcement date of the transaction; the
    tangible book value premium to core deposits; and the multiple
    of the offer value to the acquired company&#146;s book value.
    Hovde compared these multiples with the corresponding multiples
    for the merger, valuing the total consideration that would be
    received pursuant to the Merger Agreement at $77.0&#160;million
    (approximately 40% of the consideration in the form of
    Glacier&#146;s stock, and approximately 60% in cash for Citizens
    common stock). In calculating the multiples for the merger,
    Hovde used Citizens&#146; earnings for the 12&#160;months ended
    December&#160;31, 2005, and Citizens&#146; book value, and total
    deposits as of December&#160;31, 2005. The results of this
    analysis are as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="61%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="12%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="font-size: 8pt">Offer Value to<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="font-size: 8pt">Ratio of Tangible<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="font-size: 8pt">12 Months<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="font-size: 8pt">Book Value<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="font-size: 8pt">Preceding<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="font-size: 8pt">Premium to Core<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="font-size: 8pt">Earnings<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="font-size: 8pt">Deposits<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="font-size: 8pt">Book Value<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 8pt">(x)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 8pt">(%)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 8pt">(x)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Citizens
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Inland Northwestern Merger Group
    median
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13.9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Inland Northwestern Merger Group
    average
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Montana Merger Group median
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Montana Merger Group average
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Discounted Cash Flow Analysis.</I>&#160;&#160;Hovde estimated
    the present value of all shares of Citizens common stock by
    estimating the value of Citizens&#146; estimated future earnings
    stream beginning in 2006. Reflecting Citizens&#146; internal
    projections and Hovde estimates, Hovde assumed net income in
    2006, 2007, 2008, 2009, and 2010 of $4.0&#160;million,
    $5.9&#160;million, $6.3&#160;million, $6.7&#160;million, and
    $7.2&#160;million, respectively. Net income in 2006 reflects an
    after-tax charge of $1.4&#160;million to loan loss reserve
    levels, thus directly impacting initially projected earnings.
    The present value of these earnings was calculated based on a
    range of discount rates between 12.0% and 15.0%. In order to
    derive the terminal value of Citizens&#146; earnings stream
    beyond 2010, Hovde assumed a terminal value based on a multiple
    of between 13.0x and 17.0x applied to free cash flows in 2010.
    The present value of this terminal amount was then calculated
    based on the range of discount rates mentioned above. These
    rates and values were chosen to reflect different assumptions
    regarding the required rates of return of holders or prospective
    buyers of Citizens&#146; common stock. This analysis and its
    underlying assumptions yielded a range of value for all the
    shares of
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    19
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Citizens&#146; stock of approximately $60.1&#160;million (at a
    12.0% discount rate and a 13.0x terminal multiple) to
    $67.3&#160;million (at a 15.0% discount rate and a 17.0x
    terminal multiple) with a midpoint of $64.0 (using a 13.5%
    discount rate and a 15.0x terminal multiple), compared to total
    merger consideration of $77.0&#160;million.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Comparable Company Analysis.</I>&#160;&#160;Using publicly
    available information, Hovde compared the financial performance
    and stock market valuation of Glacier with the following
    publicly traded Northwestern banking institutions with assets as
    of December&#160;31, 2005 or March&#160;31, 2006 (depending on
    availability of financial information):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="87%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B><FONT style="font-size: 8pt">Company Name (Ticker)</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B><FONT style="font-size: 8pt">Assets ($mm)</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">AmericanWest Bancorporation (AWBC)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,109,134
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Banner Corporation (BANR)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,040,555
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Cascade Bancorp (CACB)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,350,664
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Cascade Financial Corporation
    (CASB)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,211,784
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Columbia Banking System, Inc.
    (COLB)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,377,322
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Frontier Financial Corporation
    (FTBK)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,637,005
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Horizon Financial Corp. (HRZB)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,083,743
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">PremierWest Bancorp (PRWT)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    940,188
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Umpqua Holdings Corporation (UMPQ)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,360,639
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">West Coast Bancorp (WCBO)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,997,138
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Indications of such financial performance and stock market
    valuation included profitability measures, earnings composition,
    operating and performance metrics, loan portfolio compositions,
    deposit compositions, yield and cost analysis, capital adequacy,
    asset quality, and reserve adequacy, all based on financial
    information as of December&#160;31, 2005 or March&#160;31, 2006
    (depending on availability of financial information) and, where
    relevant, closing stock market information as of April&#160;13,
    2006. Selected market information for Glacier and the group of
    comparable companies that was analyzed is provided below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="33%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="font-size: 7pt">Stock<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="font-size: 7pt">Price/ <BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="font-size: 7pt">Price/ <BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="font-size: 7pt">Price/ <BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="font-size: 7pt">Div. Yield<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="font-size: 7pt">Mkt. Cap<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="font-size: 7pt">Inside <BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 7pt">Price</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 7pt">TBV (%)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 7pt">Book (%)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 7pt">LTM EPS (x)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 7pt">(%)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 7pt">($m)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 7pt">Ownership (%)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Glacier
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    30.36
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    396.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    293.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.11
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    980.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.88
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Comparable
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Company
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    292.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    244.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19.4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.49
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    500.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.50
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Average
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="36%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="font-size: 7pt">Net Interest <BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="font-size: 7pt">NPAs/ <BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="font-size: 7pt">Reserves/<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="font-size: 7pt">ROAE <BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="font-size: 7pt">ROAA <BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="font-size: 7pt">Tangible Equity<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="font-size: 7pt">Margin<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="font-size: 7pt">Efficiency <BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="font-size: 7pt">Average<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="font-size: 7pt">NPAs<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 7pt">(%)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 7pt">(%)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 7pt">Ratio (%)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 7pt">(%)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 7pt">Ratio (%)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 7pt">Assets (%)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 7pt">(%)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Glacier
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17.61
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.54
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.80
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.06
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    51.04
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.27
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    383.14
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Comparable
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Company
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13.32
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.34
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.25
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.88
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    57.52
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.34
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    415.39
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Average
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Based upon the foregoing analyses and other investigations and
    assumptions set forth in its opinion, without giving specific
    weightings to any one factor or comparison, Hovde determined
    that the transaction consideration was fair from a financial
    point of view to Citizens shareholders.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Recommendation
    of the Citizens Board</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Citizens board of directors unanimously recommends that its
    shareholders vote <U>for</U> approval of the Merger Agreement.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    20
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<A name='110'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">THE
    MERGER</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following is a brief description of the material aspects of
    the merger. There are other aspects of the merger that are not
    discussed below, but that are contained in the Merger Agreement.
    You are being asked to approve the merger in accordance with the
    terms of the Merger Agreement, and you are urged to read the
    Merger Agreement carefully. The Merger Agreement is attached to
    this proxy statement/prospectus as <B>Appendix&#160;A.</B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Basic
    Terms of the Merger</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Merger Agreement provides for the merger of Citizens with
    and into a newly formed wholly-owned subsidiary of Glacier.
    Following the merger, the Citizens Banks will become
    subsidiaries of Glacier. Following an initial transition period
    after the merger, Glacier anticipates that the Citizens Banks
    will be merged into currently existing Glacier banks, based on
    the geographical location of such banks.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the merger, Citizens shareholders will receive either Glacier
    common stock or a combination of Glacier common stock and cash
    for their Citizens common stock, as described below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    While Glacier and Citizens believe that they will receive the
    necessary regulatory approvals for the merger, there can be no
    assurance that such approvals will be received or, if received,
    as to the timing of such approvals or as to the ability to
    obtain such approvals on satisfactory terms. See
    &#147;&#151;&#160;Conditions to the Completion of the
    Merger&#148; and &#147;&#151;&#160;Regulatory Requirements.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Merger
    Consideration</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Merger Agreement provides that as of the effective date of
    the merger, each share of Citizens common stock issued and
    outstanding immediately prior to the effective date will be
    converted into the right to receive either Glacier common stock
    or a combination of Glacier common stock and cash, in each case
    as described below. Under the Merger Agreement, Glacier will pay
    a total of $77.0&#160;million, less that amount of any excess
    transaction fees, and plus the amount of any &#147;Earnings
    Adjustment,&#148; both as described below. This amount (less
    specified transaction fees) is referred to in the Merger
    Agreement as the &#147;Total Consideration.&#148; The Merger
    Agreement provides that the dollar value of the Glacier common
    stock to be issued in the merger will be fixed at 40% of the
    Total Consideration.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The base merger consideration of $77.0&#160;million will be
    increased by the amount of an Earnings Adjustment, which is
    defined in the Merger Agreement as an amount equal to the dollar
    amount of Citizens&#146; consolidated adjusted after-tax
    earnings, excluding extraordinary expenses, from July&#160;1,
    2006 to the end of the month immediately preceding the effective
    date of the merger, plus an additional per diem payment, in the
    event the effective date occurs mid month, equal to the number
    of days in the period from the month end immediately preceding
    the effective date until the effective date, multiplied by the
    average daily earnings for Citizens from January&#160;1, 2006 to
    the most recently reported month end prior to the effective date
    of the merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The base merger consideration of $77.0&#160;million will be
    decreased by the amount that Citizens&#146; transaction fees
    exceeds $810,000. &#147;Transaction fees&#148; for this purpose
    are defined as all cost and expenses incurred by Citizens or
    owed or paid by Citizens, to investment advisors, independent
    accountants (up to a limit of $40,000), legal counsel, printers,
    and other professional advisors in connection with the
    preparation, execution and execution of the Merger Agreement and
    the consummation of the merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each Citizens shareholder will have the right to elect to
    convert such shareholder&#146;s Citizens common stock into
    (i)&#160;shares of Glacier common stock, or (ii)&#160;a
    combination of shares of Glacier common stock and cash. See
    &#147;&#151;&#160;Election Procedure.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The value of the consideration (whether stock or cash) that a
    Citizens shareholder will receive for each share of Citizens
    stock is referred to in the Merger Agreement as the &#147;per
    share consideration.&#148; Per share consideration is the dollar
    amount obtained by dividing the Total Consideration by the
    number of outstanding Citizens shares on April&#160;20, 2006,
    the date the Merger Agreement was executed.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The amount of cash that a Citizens shareholder will receive for
    each share of his or her Citizens stock is referred to in the
    Merger Agreement as the &#147;per share cash
    consideration,&#148; which is defined as cash in an amount equal
    to the per share consideration.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    21
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The amount of Glacier common stock that a Citizens shareholder
    will receive for each share of Citizens stock is referred to in
    the Merger Agreement as the &#147;per share stock
    consideration.&#148; The per share stock consideration is
    defined as the number of shares of Glacier stock equal to the
    quotient obtained by dividing the per share consideration by the
    &#147;average closing price&#148; of Glacier common stock. The
    average closing price (as defined in the Merger Agreement) of
    Glacier common stock will be determined during a five-day period
    ending on the fifth day prior to the effective date of the
    merger. As a result, the per share stock consideration cannot be
    determined until the fifth day immediately prior to the
    effective date of the merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The formula described above is intended to substantially
    equalize the value of the consideration to be received for each
    share of Citizens common stock in the merger as measured during
    the valuation period, regardless of whether a Citizens
    shareholder elects to receive all Glacier common stock or a
    combination of Glacier common stock and cash. This equalization
    mechanism was deemed to be desirable because the value of
    Glacier common stock will fluctuate. In order to best ensure
    that the value of the consideration for each share of Citizens
    common stock is as equal as possible upon receipt by Citizens
    shareholders, regardless of the form of the consideration, the
    per share stock consideration is based on the average closing
    price.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>The following hypothetical example is provided for
    illustration purposes only, and does not reflect the actual
    amounts that will be payable in the merger. The example assumes
    that (i)&#160;the Total Consideration payable under the Merger
    Agreement is $77&#160;million, and has not been increased by the
    amount of any earnings adjustment, or decreased by the amount of
    any excess transaction fees, (ii)&#160;the average closing price
    of Glacier common stock, as determined under the Merger
    Agreement, is $31.00, (iii)&#160;and that there were 471,473.15
    outstanding shares of Citizens stock on the execution date of
    the Merger Agreement, and (iv)&#160;that as a result of the
    allocation procedures described below under
    &#147;Allocation,&#148; a Citizens shareholder making a
    Combination Election receives 64% cash and 36% Glacier common
    stock:</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Assuming a Citizens shareholder owns 100&#160;shares of Citizens
    common stock, and makes:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    A Stock Election, such shareholder would receive 526&#160;shares
    of Glacier common stock (and $25.79 in cash in lieu of a
    fractional share) having a total value (based on Glacier&#146;s
    average closing price) of $16,331.79;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    A Combination Election, such shareholder would receive
    189&#160;shares of Glacier common stock and cash of $10,472.79
    (including $20.44 cash in lieu of a fractional share), which
    together with the stock would have a total value of $16,331.79.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the price of Glacier common stock (based on the average
    closing price) increases, then the number of shares of Glacier
    common stock received for each share of Citizens would decrease.
    If the price of Glacier common stock decreases, the number of
    shares being exchanged for Glacier common stock would increase.
    For example, if the average closing price during the valuation
    period is $34.00 (approximately 10% higher than the assumed
    average closing price shown in the example above), then a
    Citizens shareholder receiving stock would receive approximately
    4.80&#160;shares of Glacier common stock per Citizens share,
    although the value per share of Citizens common stock would
    remain at $163.32&#160;per share. Similarly, if the average
    closing price during the valuation period is $27.00
    (approximately 10% lower than the assumed average closing price
    shown in the example above), then a Citizens shareholder
    receiving stock would receive approximately 6.05&#160;shares of
    Glacier common stock per Citizens share, although the value per
    share of Citizens common stock would remain at $163.32&#160;per
    share.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>No assurance can be given that the current fair market value
    of Glacier common stock will be equivalent to the fair market
    value of Glacier common stock on the date that stock is received
    by a Citizens shareholder or at any other time. The fair market
    value of Glacier common stock received by a Citizens shareholder
    may be greater or less than the current fair market value of
    Glacier common stock due to numerous market factors.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Citizens may terminate the Merger Agreement if the Glacier
    average closing price is greater than $34.88&#160;per share,
    unless Glacier elects to adjust the per share stock
    consideration. Glacier may terminate the Merger Agreement if the
    Glacier average closing price is less than $27.13&#160;per
    share, unless Citizens agrees to accept an adjustment in the per
    share stock consideration. See &#147;&#151;&#160;Termination of
    the Merger Agreement.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The terms of the merger were determined by Glacier and Citizens
    on the basis of arms-length negotiations.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    22
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Election
    Procedure</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subject to the allocation mechanism described in the next
    section, each Citizens shareholder will have the right to elect
    to receive with respect to such shareholder&#146;s shares of
    Citizens common stock:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    all Glacier common stock (a &#147;Stock Election&#148;) ;&#160;or
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a combination of Glacier common stock and cash (a
    &#147;Combination Election&#148;).
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Stock Election</U>.</I>&#160;&#160; A shareholder who
    makes a Stock Election will receive shares of Glacier common
    stock in exchange for his or her shares of Citizens stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Combination Election</U>.</I>&#160;&#160; A shareholder
    who elects the Combination Election will receive a combination
    of Glacier common stock and cash. The exact percentages of
    Glacier common stock and cash that will be received under a
    Combination Election will be determined as described under
    &#147;&#151;&#160;Allocation&#148; below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>No-Election Shares</U>.</I>&#160;&#160; Shareholders who
    indicate that they have no preference as to whether they receive
    cash or a combination of Glacier common stock and cash, and
    shareholders who do not make a valid election, will be deemed to
    have made a Combination Election. See
    &#147;&#151;&#160;Allocation&#148; below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Proposed Dissenting Shares</U>.</I>&#160;&#160; If a
    Citizens shareholder provides notice of dissent to Citizens in
    accordance with the Montana Business Corporation Act, such
    shareholder will have the rights provided by applicable Montana
    law, as described under &#147;Dissenters&#146; Rights of
    Appraisal&#148; below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Election Form</U>.</I>&#160;&#160; A green election form
    accompanies this proxy statement/prospectus. The green election
    form allows the holder to make the Stock Election or the
    Combination Election, or to indicate that the holder makes no
    election. Citizens and Glacier will make available election
    forms to persons who become holders of Citizens common stock
    between the record date for the Citizens special meeting and the
    close of business on the day prior to the election deadline.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Holders of Citizens common stock who wish to elect the type of
    merger consideration they will receive in the merger should
    carefully review and follow the instructions set forth in the
    green election form. Shareholders of Citizens who have not made
    a valid election prior to the election deadline, which is
    5:00&#160;p.m., Mountain Time, on July&#160;13, 2006, will be
    deemed to have made a Combination Election.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To make an election, a holder of Citizens common stock must
    submit a properly completed election form so that it is actually
    received by the exchange agent at or prior to the election
    deadline in accordance with the instructions on the election
    form.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    An election may be revoked or changed by the person submitting
    the election form prior to the election deadline. The exchange
    agent will have reasonable discretion to determine whether any
    election, revocation or change has been properly or timely made
    and to disregard immaterial defects in the election forms, and
    any good faith decisions of Glacier regarding these matters will
    be binding and conclusive. Neither Glacier or Citizens nor the
    exchange agent will be under any obligation to notify any person
    of any defects in an election form.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>You must surrender your Citizens stock certificates together
    with the green election form.</B> The green election form
    contains instructions on how to surrender shares of Citizens
    common stock in exchange for the merger consideration the holder
    is entitled to receive under the Merger Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All shares of Glacier common stock issued to the holders of
    Citizens common stock pursuant to the merger will be deemed
    issued as of the effective date. Until you surrender your
    Citizens stock certificates for exchange, you will accrue, but
    will not be paid, any dividends or other distributions declared
    after the effective date with respect to Glacier common stock
    into which any of your shares may have been converted. When you
    surrender your certificates, Glacier will pay any unpaid
    dividends or other distributions, as well as any merger
    consideration payable in cash, without interest. After the
    effective time, there will be no transfers on the stock transfer
    books of Citizens of any shares of Citizens common stock. If
    certificates representing shares of Citizens common stock are
    presented for transfer after the completion of the merger, they
    will be cancelled and exchanged for the merger consideration
    into which the shares of Citizens common stock represented by
    those certificates shall have been converted.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    23
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If a certificate for Citizens common stock has been lost, stolen
    or destroyed, the exchange agent will issue the consideration
    properly payable under the Merger Agreement upon receipt of
    appropriate evidence as to that loss, theft or destruction,
    appropriate evidence as to the ownership of that certificate by
    the claimant, and reasonable assurances, such as a bond or
    indemnity, satisfactory to Glacier in consultation with
    Citizens, and appropriate and customary identification.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Allocation</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the terms of the Merger Agreement, the amount of
    Glacier common stock that will be issued in the merger is fixed
    at the dollar amount that is equal to 40% of the Total
    Consideration payable in the merger. Shares of Glacier common
    stock will be allocated first to Citizens shareholders making
    Stock Elections. Since the Trust has informed Glacier and
    Citizens that it intends to make a Combination Election, and
    since the Citizens shares owned by shareholders other than the
    Trust account for only approximately 20% of the outstanding
    Citizens shares, the practical effects of the allocation
    procedures set forth in the Merger Agreement are as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Stock Elections</U>.</I>&#160;&#160; Shareholders who
    elect the Stock Election will receive Glacier common stock (in
    an amount equal to the per share stock consideration) in respect
    of their shares of Citizens common stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Combination Elections</U>.</I>&#160;&#160; The Merger
    Agreement provides that Citizens shares as to which a
    Combination Election has been made will be converted, on a pro
    rata basis, after giving effect to the allocation of Stock
    Election shares described above, such that holders of those
    shares will receive (i)&#160;shares of Glacier common stock (in
    an amount equal to the per share stock consideration) for that
    portion of their shares that would cause the total dollar value
    of Glacier common stock issued in the merger to equal 40% of the
    Total Consideration, and (ii)&#160;cash (in the amount of the
    per share cash consideration) for the balance of their shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The allocation described above will be computed by the exchange
    agent as soon as practicable after the election deadline and
    may, if necessary, be computed after the completion of the
    merger in accordance with the Merger Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Merger Agreement provides that any cash remaining after the
    allocation of the allocation to Stock Election and Combination
    Election shares as described above will be held or applied by
    the Exchange Agent for the payment of dissenting shares and
    fractional shares. The amount of cash paid for shares of
    Citizens stock, including proposed dissenting shares, may not
    exceed 60% of the Total Consideration.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Because the federal income tax consequences of receiving cash,
    Glacier common stock, or both cash and Glacier common stock will
    differ, Citizens shareholders are urged to read carefully the
    information set forth under the caption
    &#147;&#151;&#160;Federal Income Tax Consequences of the
    Merger&#148; and to consult their own tax advisors for a full
    understanding of the merger&#146;s tax consequences to them. In
    addition, because the stock consideration can fluctuate in value
    from the final stock price calculated during the valuation
    period, the economic value per share received by Citizens
    shareholders who receive the stock consideration may, as of the
    date of receipt by them, be more or less than the amount of cash
    consideration per share received by Citizens shareholders who
    receive cash consideration.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Fractional
    Shares</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    No fractional shares of Glacier common stock will be issued to
    any holder of Citizens common stock in the merger. For each
    fractional share that would otherwise be issued, Glacier will
    pay cash in an amount equal to the fraction multiplied by the
    average closing price of Glacier common stock during the
    valuation period. No interest will be paid or accrued on cash
    payable in lieu of fractional shares of Glacier common stock.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Effective
    Date of the Merger</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subject to the conditions to the obligations of the parties to
    complete the merger as set forth in the Merger Agreement, the
    effective date of the merger will occur as soon as practicable
    after such conditions have been satisfied or waived. Subject to
    the foregoing, it is currently anticipated that the merger will
    be consummated during the third quarter of 2006. Either Glacier
    or Citizens may, subject to certain conditions, terminate the
    Merger Agreement if the effective date does not occur on or
    before October&#160;31, 2006.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    24
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Federal
    Income Tax Consequences of the Merger</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following is a discussion of the material federal income tax
    consequences of the merger that are generally applicable to
    holders of Citizens common stock who are citizens of, reside in
    or are organized under the laws of the United States. This
    discussion is based on currently existing provisions of the
    Internal Revenue Code of 1986, as amended (the
    &#147;Code&#148;), existing regulations thereunder (including
    final, temporary or proposed regulations) and current
    administrative rulings and court decisions, all of which are
    subject to change. Any such change, which may or may not be
    retroactive, could alter the tax consequences described herein.
    The following discussion is intended only as a general summary
    of the material federal income tax consequences of the merger
    and is not a complete analysis or listing of all potential tax
    effects relevant to a decision on whether to vote in favor of
    approval of the Merger Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This discussion assumes that the Citizens shareholders hold
    their shares of Citizens common stock as a capital asset within
    the meaning of section&#160;1221 of the Code. Further, the
    discussion does not address all aspects of federal income
    taxation that may be relevant to Citizens shareholders in light
    of their particular circumstances or that may be applicable to
    them if they are subject to special treatment under the Code,
    including, without limitation, shareholders who are subject to
    such special treatment because they are:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    financial institutions, mutual funds, dealers in securities or
    insurance companies;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    tax-exempt organizations;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    S&#160;corporations or other pass-through entities;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    non-United States persons;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Citizens shareholders whose shares are qualified small business
    stock for purposes of section&#160;1202 of the Code or who may
    be subject to the alternative minimum tax provisions of the
    Code;&#160;or
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Citizens shareholders who received their Citizens common stock
    through the exercise of employee stock options or otherwise as
    compensation or through a tax-qualified retirement plan.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Consummation of the merger is conditioned upon the receipt by
    Citizens of the opinion of Graham&#160;&#38; Dunn PC, counsel to
    Glacier, dated as of the effective date of the merger,
    substantially to the effect that, on the basis of facts,
    representations and assumptions set forth or referred to in the
    opinion, which are consistent with the state of facts existing
    as of the effective date of the merger, the merger will be
    treated for United States federal income tax purposes as a
    reorganization within the meaning of section&#160;368(a) of the
    Code. The tax opinions to be delivered in connection with the
    merger are not binding on the Internal Revenue Service
    (&#147;IRS&#148;) or the courts, and neither Citizens nor
    Glacier intends to request a ruling from the IRS with respect to
    the United States federal income tax consequences of the merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Assuming consummation of the merger on the basis of facts,
    representations and assumptions as set forth in the opinion
    referred to above, the United States federal income tax
    consequences of the merger to a holder generally will depend on
    whether the holder exchanges such shareholder&#146;s Citizens
    common stock for cash, Glacier common stock or a combination of
    cash and Glacier common stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Exchange Solely for Glacier Common
    Stock</U>.</I>&#160;&#160; If pursuant to the merger a holder
    exchanges all of its shares of Citizens common stock solely for
    shares of Glacier common stock, the holder will not recognize
    any gain or loss except in respect of cash received in lieu of
    any fractional share of Glacier common stock (as discussed
    below). The aggregate adjusted tax basis of the shares of
    Glacier common stock received in the merger will be equal to the
    aggregate adjusted tax basis of the shares of Citizens common
    stock surrendered for the Glacier common stock (reduced by the
    tax basis allocable to any fractional share of Glacier common
    stock for which cash is received), and the holding period of the
    Glacier common stock will include the period during which the
    shares of Citizens common stock were held. If a holder has
    differing bases or holding periods in respect of its shares of
    Citizens common stock, the holder should consult its tax advisor
    prior to the exchange with regard to identifying the bases or
    holding periods of the particular shares of Glacier common stock
    received in the exchange.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Exchange for Glacier Common Stock and
    Cash</U>.</I>&#160;&#160; If pursuant to the merger a holder
    exchanges all of its shares of Citizens common stock for a
    combination of Glacier common stock and cash, the holder will
    generally recognize
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    25
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    gain (but not loss) in an amount equal to the lesser of
    (1)&#160;the amount of gain realized (i.e., the excess of the
    sum of the amount of cash, excluding any cash received in lieu
    of fractional shares, and the fair market value of the Glacier
    common stock received pursuant to the merger over the
    holder&#146;s adjusted tax basis in its shares of Citizens
    common stock surrendered) or (2)&#160;the amount of cash
    (excluding any cash received in lieu of fractional shares)
    received pursuant to the merger. For this purpose, gain or loss
    must be calculated separately for each identifiable block of
    shares surrendered in the exchange, and a loss realized on one
    block of shares may not be used to offset a gain realized on
    another block of shares with a different holding period. Any
    recognized gain will generally be long-term capital gain if the
    holder&#146;s holding period with respect to the Citizens common
    stock surrendered is more than one year. If, however, the cash
    received has the effect of the distribution of a dividend, the
    gain would be treated as a dividend to the extent of the
    holder&#146;s ratable share of accumulated earnings and profits
    as calculated for federal income tax purposes. See
    &#147;&#151;&#160;Possible Treatment of Cash as a Dividend&#148;
    below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The aggregate tax basis of Glacier common stock received by a
    holder that exchanges its shares of Citizens common stock for a
    combination of Glacier common stock and cash pursuant to the
    merger will be equal to the aggregate adjusted tax basis of the
    shares of Citizens common stock surrendered for Glacier common
    stock and cash, reduced by the amount of cash received by the
    holder pursuant to the merger (other than cash received in lieu
    of a fractional share), and increased by the amount of gain
    (including any portion of the gain that is treated as a dividend
    as described below), if any, recognized by the holder on the
    exchange (other than gain recognized as a result of cash
    received in lieu of a fractional share). The holding period of
    the Glacier common stock will include the holding period of the
    shares of Citizens common stock surrendered. If a holder has
    differing bases or holding periods in respect of its shares of
    Citizens common stock, the holder should consult its tax advisor
    prior to the exchange with regard to identifying the bases or
    holding periods of the particular shares of Glacier common stock
    received in the exchange.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Possible Treatment of Cash as a
    Dividend</U>.</I>&#160;&#160; In general, the determination of
    whether the gain recognized in the exchange will be treated as
    capital gain or has the effect of a distribution of a dividend
    depends upon whether and to what extent the exchange reduces the
    holder&#146;s deemed percentage stock ownership of Glacier. For
    purposes of this determination, the holder is treated as if it
    first exchanged all of its shares of Citizens common stock
    solely for Glacier common stock and Glacier then immediately
    redeemed (the &#147;deemed redemption&#148;) a portion of the
    Glacier common stock in exchange for the cash the holder
    actually received. The gain recognized in the exchange followed
    by a deemed redemption will be treated as capital gain if the
    deemed redemption is (1)&#160;substantially disproportionate
    with respect to the holder, or (2)&#160;not essentially
    equivalent to a dividend.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The deemed redemption, generally, will be substantially
    disproportionate with respect to a holder if the holder owns,
    actually and constructively, (i)&#160;less than 50% of the total
    combined voting power of all classes of Glacier stock entitled
    to vote and (ii)&#160;less than 80% of the percentage of Glacier
    stock the holder actually and constructively owned before the
    deemed redemption. Whether the deemed redemption is not
    essentially equivalent to a dividend with respect to a holder
    will depend upon the particular circumstances of the holder. At
    a minimum, however, in order for the deemed redemption to be not
    essentially equivalent to a dividend, the deemed redemption must
    result in a meaningful reduction in the holder&#146;s actual and
    constructive percentage stock ownership of Glacier. In general,
    that determination requires a comparison of (1)&#160;the
    percentage of the outstanding stock of Glacier the holder is
    deemed to actually and constructively own immediately before the
    deemed redemption and (2)&#160;the percentage of the outstanding
    stock of Glacier the holder actually and constructively owns
    immediately after the deemed redemption. In determining whether
    the deemed redemption is substantially disproportionate or not
    essentially equivalent to a dividend, a holder is deemed to own
    stock actually owned and, in some cases, constructively owned,
    by certain family members, by certain estates and trusts of
    which the holder is a beneficiary, and by certain affiliated
    entities. As these rules are complex, each holder that may be
    subject to these rules should consult its tax advisor. The
    Internal Revenue Service has ruled that a relatively minor
    reduction in the percentage stock ownership of a minority
    shareholder in a publicly held corporation whose relative stock
    interest is minimal and who exercises no control with respect to
    corporate affairs is a meaningful reduction.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Cash Received in Lieu of a Fractional
    Share</U>.</I>&#160;&#160; Cash received by a holder of Citizens
    common stock in lieu of a fractional share of Glacier common
    stock generally will be treated as received in redemption of the
    fractional share, and gain or loss generally will be recognized
    based on the difference between the amount of cash received in
    lieu of the fractional share and the portion of the
    holder&#146;s aggregate adjusted tax basis of the share of
    Citizens
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    26
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    common stock surrendered allocable to the fractional share. Such
    gain or loss generally will be long-term capital gain or loss if
    the holding period for such shares of Citizens common stock is
    more than one year.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Dissenting Shareholders</U>.</I>&#160;&#160; Holders of
    Citizens common stock who dissent with respect to the merger, as
    discussed in &#147;Dissenters&#146; Rights,&#148; and who
    receive cash in respect of their shares of Citizens common
    stock, and who own such shares as a capital asset and who do not
    actually or constructively own shares of Glacier after the
    merger, will recognize gain or loss in an amount equal to the
    difference between the amount of cash received in the exchange
    and the holder&#146;s aggregate tax basis in his or her shares
    of Citizens common stock. The gain or loss will be long-term
    capital gain or loss if the shares of Citizens were held for
    more than one year.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Backup Withholding</U>.</I>&#160;&#160; Non-corporate
    shareholders of Citizens may be subject to information reporting
    and backup withholding on any cash payments they receive.
    Shareholders will not be subject to backup withholding, however,
    if they:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    furnish a correct taxpayer identification number and certify
    that they are not subject to backup withholding on the
    substitute
    <FONT style="white-space: nowrap">Form&#160;W-9</FONT>
    or successor form included in the election form/letter of
    transmittal they will receive;&#160;or
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    are otherwise exempt from backup withholding.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Any amounts withheld under the backup withholding rules will be
    allowed as a refund or credit against a shareholder&#146;s
    federal income tax liability, provided he or she furnishes the
    required information to the IRS.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Reporting Requirements</U>.</I>&#160;&#160; Shareholders
    who receive Glacier common stock as a result of the merger will
    be required to retain records pertaining to the merger and each
    shareholder will be required to file with such holder&#146;s
    federal income tax return for the year in which the merger takes
    place a statement setting forth certain facts relating to the
    merger. Citizens shareholders will be responsible for the
    preparation of their own tax returns.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Graham&#160;&#38; Dunn PC has delivered an opinion to the
    foregoing effect to Glacier. The opinion has been filed as an
    exhibit to the registration statement of which this proxy
    statement/prospectus is a part. The foregoing is only a summary
    of the tax consequences of the merger as described in the
    opinion. The opinion is based on assumptions and on
    representations made by officers of Glacier and Citizens to
    Graham&#160;&#38; Dunn PC, and contains qualifications
    appropriate to the subject matter.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    An opinion of counsel only represents counsel&#146;s best legal
    judgment, and has no binding effect or official status of any
    kind. No assurance can be given that contrary positions will not
    be taken by the Internal Revenue Service or a court considering
    the issues. Neither Citizens nor Glacier has requested or will
    request a ruling from the IRS with regard to the federal income
    tax consequences of the merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>The foregoing is a general summary of the material federal
    income tax consequences of the merger to Citizens shareholders,
    without regard to the particular facts and circumstances of each
    shareholder&#146;s tax situation and status. In addition, there
    may be relevant state, local, foreign or other tax consequences,
    none of which is described above. Because certain tax
    consequences of the merger may vary depending on the particular
    circumstances of each shareholder, each Citizens shareholder
    should consult its own tax advisor regarding its specific tax
    situation and status, including the specific application of
    state, local and foreign laws to such shareholder and the
    possible effect of changes in federal and other tax laws.</B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Voting
    Agreement</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Voting Agreement Shareholders have entered into a Voting
    Agreement, dated as of April&#160;20, 2006 (the &#147;Voting
    Agreement&#148;). In the Voting Agreement, the Voting Agreement
    Shareholders agree, among other things, to vote the shares of
    Citizens common stock that he or it owns or controls in favor of
    the merger. The persons or entities that have entered into this
    Voting Agreement are entitled to vote a total of 403,021.40
    outstanding shares of Citizens common stock, which is
    approximately 85.48% of the total shares outstanding (79.5% of
    the total shares of Class&#160;A common stock outstanding, and
    86.1% of the total shares of Class&#160;B common stock
    outstanding).
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    27
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Dissenters&#146;
    Rights of Appraisal</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under Montana law, Citizens shareholders have the right to
    dissent from the merger and to receive payment in cash for the
    &#147;fair value&#148; of their shares of Citizens common stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Citizens shareholders electing to exercise dissenters&#146;
    rights must comply with the provisions of the Montana appraisal
    laws in order to perfect their rights. The following is intended
    as a brief summary of the material provisions of the procedures
    that a Citizens shareholder must follow in order to dissent from
    the merger and perfect dissenters&#146; rights. <B>This summary,
    however, is not a complete statement of all applicable
    requirements and is qualified in its entirety by reference to
    the Montana appraisal laws, the full text of which is set forth
    in Appendix&#160;B to this document.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A shareholder who wishes to assert dissenters&#146; rights must:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    deliver to Citizens before the special meeting written notice of
    the shareholders&#146; intent to demand payment for the
    shareholder&#146;s shares in the merger is completed,&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    not vote in favor of the merger.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A shareholder wishing to deliver a notice asserting
    dissenters&#146; rights should hand deliver or mail the notice
    to the following address:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Citizens Development Company<BR>
    2812
    1<SUP style="font-size: 85%; vertical-align: text-top">st</SUP>&#160;Avenue
    North, Suite&#160;324<BR>
    Billings, Montana 59101<BR>
    ATTN: Marcy Mutch
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A shareholder who wishes to exercise dissenters&#146; rights
    generally must dissent with respect to all of the shares the
    shareholder owns or over which the shareholder has the power to
    direct the vote. However, if a record shareholder is a nominee
    for several beneficial shareholders, some of whom wish to
    dissent and some of whom do not, then the record holder may
    dissent with respect to all the shares beneficially owned by any
    one person by notifying Citizens in writing of the name and
    address of each person on whose behalf the record shareholder
    asserts dissenters&#146; rights. A beneficial shareholder may
    assert dissenters&#146; rights directly by submitting to
    Citizens the record shareholder&#146;s written consent and by
    dissenting with respect to all the shares of which the
    shareholder is the beneficial shareholder over which the
    shareholder has power to direct the vote.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>A shareholder who does not, prior to the special shareholders
    meeting, deliver to Citizens a written notice of the
    shareholder&#146;s intent to demand payment for the &#147;fair
    value&#148; of the shares will lose the right to exercise
    dissenters&#146; rights. In addition, any shareholder electing
    to exercise dissenters&#146; rights must either vote against the
    merger or abstain from voting.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the merger is completed, Glacier (as the surviving
    corporation) will, within 10&#160;days after the effective date
    of the merger, deliver a written notice to all Citizens
    shareholders who properly gave notice of their intent to
    exercise dissenters&#146; rights. The notice will, among other
    things:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    supply a form for demanding payment;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    set a date by which Glacier must receive the payment demand,
    which date will be between 30 and 60&#160;days after notice is
    delivered;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    state Glacier&#146;s estimate of the &#147;fair value&#148; for
    the shares and the date by which any notice to withdraw
    (discussed below) must be received;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    provide a copy of the dissenters&#146; rights provisions of the
    Montana Code Annotated,
    <FONT style="white-space: nowrap">Sections&#160;35-1-826</FONT>
    through 35-1-839).
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A shareholder wishing to exercise dissenters&#146; rights must
    at that time file the payment demand and deliver share
    certificates as required in the notice. Failure to do so will
    cause that person to lose their dissenters&#146; rights.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A shareholder who has complied with the requirements summarized
    in the previous paragraph may nevertheless decline to exercise
    dissenters&#146; rights and withdraw from the appraisal process
    by notifying Citizens by the
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    28
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    date set forth in the written notice provided by Glacier
    following consummation of the merger. If the shareholder does
    not withdraw from the appraisal process by the specified date,
    he or she may not do so thereafter unless Glacier consents to
    such withdrawal in writing.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon completion of the merger or receipt of the payment demand,
    whichever is later, Glacier will pay each dissenter with
    properly perfected dissenters&#146; rights Glacier&#146;s
    estimate of the &#147;fair value&#148; of the shareholder&#146;s
    shares, plus accrued interest from the effective date of the
    merger. With respect to a dissenter who did not beneficially own
    shares of Citizens prior to the public announcement of the
    merger, Glacier is not required to make the payment until the
    dissenter has agreed to accept the payment in full satisfaction
    of the dissenter&#146;s demands. &#147;Fair value&#148; means
    the value of the shares immediately before the effective date of
    the merger. The rate of interest is required to be the average
    rate then being paid by Citizens on its principal bank loans, or
    if Citizens has no loans from other banks, at a rate that is
    fair and equitable under all the circumstances.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Within 30&#160;days of Glacier&#146;s payment (or offer of
    payment in the case of shares acquired after public announcement
    of the merger) to a dissenting shareholder, a dissenter
    dissatisfied with Glacier&#146;s estimate of the fair value may
    notify Glacier of the dissenter&#146;s own estimate of the fair
    value and demand payment of that amount. If Glacier does not
    accept the dissenter&#146;s estimate and the parties do not
    otherwise settle on a fair value, then Glacier must, within
    60&#160;days of receiving the estimate and demand, petition a
    court to determine the fair value.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In view of the complexity of the Montana statutes governing
    dissenters&#146; rights of appraisal, Citizens shareholders who
    wish to dissent from the merger and pursue appraisal rights
    should consult their legal advisors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>The failure of a Citizens shareholder to comply strictly with
    the Montana statutory requirements will result in a loss of
    dissenters&#146; rights. A copy of the relevant statutory
    provisions is attached as Appendix&#160;B. You should refer to
    this appendix for a complete statement concerning
    dissenters&#146; rights and the foregoing summary of such rights
    is qualified in its entirety by reference to that appendix.</B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Conditions
    to the Merger</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Consummation of the merger is subject to various conditions. No
    assurance can be provided as to whether these conditions will be
    satisfied or waived by the appropriate party. Accordingly, there
    can be no assurance that the merger will be completed.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Certain conditions must be satisfied or events must occur before
    the parties will be obligated to complete the merger. Each
    party&#146;s obligations under the Merger Agreement are
    conditioned on satisfaction by the other party of conditions
    applicable to them. Some of these conditions, applicable to the
    respective obligations of both Glacier and Citizens, are as
    follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    approval of the merger by Citizens shareholders;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    accuracy of the other party&#146;s representations in the Merger
    Agreement and any certificate or other instrument delivered in
    connection with the Merger Agreement;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    compliance by the other party of all material terms, covenants,
    and conditions of the Merger Agreement;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    that there shall have been no damage, destruction, or loss, or
    other event or sequence of events, that has had or potentially
    may have a material adverse effect with respect to the other
    party;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    that no action or proceeding has been commenced or threatened by
    any governmental agency to restrain or prohibit or invalidate
    the merger;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Glacier&#146;s receipt of a tax opinion from Graham&#160;&#38;
    Dunn PC;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the registration statement filed with the SEC, required to
    register the Glacier common stock to be issued to shareholders
    of Citizens in the merger has become effective, and no
    stop-order suspending such effectiveness has been issued and no
    proceedings for that purpose have been initiated or threatened
    by the SEC.
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    29
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition to the above, the obligations of Glacier under the
    Merger Agreement are subject to conditions that include the
    following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Citizens&#146; has delivered a statement regarding the amount of
    transaction fees (as defined in the Merger Agreement) and that
    such transaction fees are in compliance with the terms of the
    Merger Agreement;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    That in the opinion of the executive officers of Citizens and
    the Citizens Banks, each Citizens Bank&#146;s allowance for loan
    and lease losses (&#147;ALLL&#148;), as adjusted for specified
    required increases or charge-offs, is adequate to absorb such
    bank&#146;s anticipated loan losses;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    That after giving effect to the payment of all Citizens&#146;
    transaction fees and the payoff of notes receivable from certain
    Citizens shareholders (but excluding the impact of specified
    required increases in ALLL or charge offs or other receivables),
    the capital of Citizens (as defined in the Merger Agreement) is
    not less than $36.1&#160;million at the closing of the merger.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    That the aggregate deposits of the Citizens Banks, excluding
    certificates of deposit (or equivalents) of $100,000 or more and
    brokered deposits, is not less than $300&#160;million at the
    closing of the merger
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    That the aggregate amount of cash to be paid for shares of
    Citizens common stock, including proposed dissenting shares,
    will not exceed 60% of the total merger consideration, as it may
    be adjusted under the Merger Agreement.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Additionally, either Glacier or Citizens may terminate the
    merger if certain conditions applicable to the other party are
    not satisfied or waived. Those conditions are discussed below
    under &#147;&#151;&#160;Termination of the Merger
    Agreement.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Either Glacier or Citizens may waive any of the other
    party&#146;s conditions, except those that are required by law
    (such as receipt of regulatory and Citizens shareholder
    approval). Either Glacier or Citizens may also grant extended
    time to the other party to complete an obligation or condition.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Amendment
    of the Merger Agreement</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Merger Agreement may be amended upon authorization of the
    boards of directors of the parties, whether before or after the
    Citizens special meeting of the shareholders. To the extent
    permitted under applicable law, the parties may make any
    amendment or supplement without further approval of Citizens
    shareholders. However, after shareholder approval, any
    amendments that would reduce the amount or change the form of
    consideration Citizens shareholders will receive in the merger
    or the allocation of the cash percentage and stock percentage
    would require further Citizens shareholder approval.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Termination
    of the Merger Agreement</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Merger Agreement contains several provisions entitling
    either Glacier or Citizens to terminate the Merger Agreement
    under certain circumstances. The following briefly describes
    these provisions:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Lapse of Time</U>.</I>&#160;&#160; If the merger has not
    closed by October&#160;31, 2006, then at any time after that
    date, the board of directors of either Glacier or Citizens may
    terminate the Merger Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Glacier Average Closing Price Greater than
    $34.88</U>.</I>&#160;&#160; Citizens may terminate the Merger
    Agreement if the Glacier average closing price (as defined in
    the Merger Agreement) is greater than $34.88.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If Citizens provides written notice of its intent to terminate
    the Merger Agreement because the Glacier average closing price
    is greater than $34.88, Glacier may elect, within two business
    days of its receipt of such notice, to adjust the per share
    stock consideration through the issuance of additional shares of
    Glacier common stock, such that the per share stock
    consideration equals the number of share of Glacier common stock
    that a Citizens shareholder would have received if the Glacier
    average closing price had been $34.88. If this election is made
    by Glacier, no termination of the Merger Agreement will occur
    and the Merger Agreement will remain in effect according to its
    terms, except that the per share stock consideration will have
    been adjusted.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    30
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Glacier Average Closing Price Less than
    $27.13</U>.</I>&#160;&#160; Glacier may terminate the Merger
    Agreement in the Glacier average closing price (as defined in
    the Merger Agreement) is less than $27.13.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If Glacier provides written notice of its intent to terminate
    the Merger Agreement because the Glacier average closing price
    is less than $27.13, Citizens may elect, within two business
    days of its receipt of such notice, to accept an adjustment to
    the per share stock consideration through the issuance of fewer
    shares of Glacier common stock, such that the per share stock
    consideration equals the number of shares of Glacier common
    stock that a Citizens shareholder would have received in the
    Glacier average closing price had been $27.13. If this election
    is made by Citizens, no termination of the Merger Agreement will
    occur and the Merger Agreement will remain in effect according
    to its terms, except that that the per share stock consideration
    will have been adjusted.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Mutual Consent</U>.</I>&#160;&#160; The parties may
    terminate the Merger Agreement at any time before closing,
    whether before or after approval by Citizens shareholders, by
    mutual consent.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>No Regulatory Approvals</U>.</I>&#160;&#160; Either party
    may terminate the Merger Agreement if the regulatory approvals
    required to be obtained are denied, or if any such approval is
    conditioned on a substantial deviation from the transactions
    contemplated by the Merger Agreement, subject to certain rights
    granted in the Merger Agreement to appeal the denial of such
    regulatory approval.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Breach of Warranty</U>.</I>&#160;&#160; Either party may
    terminate the Merger Agreement (so long as the terminating party
    is not then in material breach of any of its representations,
    warranties, covenants or other agreements in the Merger
    Agreement) if there has been a material breach of any of the
    representations or warranties set forth in the Merger Agreement
    on the part of the other party, which breach is not cured within
    30&#160;days following written notice to such party, or which
    breach cannot, by its nature, be cured prior to the closing of
    the merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Breach of Covenant</U>.</I>&#160;&#160; Either party may
    terminate the Merger Agreement (so long as the terminating party
    is not then in material breach of any of its representations,
    warranties, covenants or agreements in the Merger Agreement) if
    there has been a material breach of any covenants or agreements
    set forth in the Merger Agreement by the other party, which is
    not cured within 30&#160;days following written notice to the
    party committing such breach, or which breach, by its nature,
    cannot be cured prior to the closing of the merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Failure to Recommend or Obtain Shareholder
    Approval</U>.</I>&#160;&#160; Glacier may terminate the Merger
    Agreement (so long as it is not then in material breach of any
    of its representations, warranties, covenants or agreements in
    the Merger Agreement), if (i)&#160;the Citizens board of
    directors fails to recommend to its shareholders approval of the
    merger, or (ii)&#160;modifies, withdraws or changes in a manner
    adverse to Glacier its recommendation to shareholders to approve
    the merger. Additionally, regardless of whether the Citizens
    board of directors recommends approval of the merger to its
    shareholders, Glacier may terminate the Merger Agreement if
    Citizens shareholders elect not to approve the merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Impracticability</U>.</I>&#160;&#160; Either party may
    terminate the Merger Agreement upon written notice to the other
    party if the board of directors of the party seeking termination
    has determined in its sole judgment, made in good faith and
    after due consideration and consultation with counsel, that the
    merger has become inadvisable or impracticable by reason of
    actions taken by the federal government or the government of the
    State of Montana to restrain or invalidate the merger or the
    Merger Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Potential Dissenting Shares</U>.</I>&#160;&#160; Glacier
    may terminate the Merger Agreement if holders of 10% or more of
    the outstanding shares of Citizens common stock are proposed
    dissenting shares (as defined in the Merger Agreement).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Superior Proposal</U>.</I>&#160;&#160; Citizens may
    terminate the Merger Agreement if its board of directors
    determines in good faith that Citizens has received a
    &#147;Superior Proposal&#148; as defined in the Merger
    Agreement. This right is subject to the requirement that
    Citizens may terminate the Merger Agreement only if Citizens
    (i)&#160;has not breached its covenants regarding the initiation
    or solicitation of acquisition proposals from third parties; and
    (ii)&#160;subsequent to delivering the notice of termination to
    Glacier, Citizens intends to enter into a letter of intent,
    acquisition agreement or similar agreement relating to such
    Superior Proposal, and (iii)&#160;Citizens has provided Glacier
    with at least five business days prior notice that Citizens
    intends to accept a Superior Proposal and
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    31
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    given Glacier, if it so elects, an opportunity to amend the
    terms of the Merger Agreement (negotiated in good faith between
    Glacier and Citizens) in such a manner as would enable Citizens
    to proceed with the merger.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Termination
    Fees</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subject to certain exceptions, Citizens will pay Glacier a
    termination fee of $250,000 if Glacier terminates the Merger
    Agreement based on a Citizens breach of its representations or
    breach of its covenants. Glacier will pay Citizens a termination
    fee of $250,000 if Citizens terminates the Merger Agreement
    based on a Glacier breach of its representations or breach of
    its warranties.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Break-Up
    Fee</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the Merger Agreement is terminated (i)&#160;because the
    Citizens board of directors fails to recommend shareholder
    approval of the Merger Agreement; or (ii)&#160;Citizens
    terminates the Merger Agreement after receiving a Superior
    Proposal (as defined in the Merger Agreement) and Glacier
    declines the opportunity to amend the terms of the Merger
    Agreement to enable Citizens&#146; Board to proceed with the
    merger; or (iii)&#160;Glacier terminates the Merger Agreement
    after Citizens&#146; receipt of a Superior Proposal followed by
    an immediate acquisition event, then Citizens will immediately
    pay Glacier a
    <FONT style="white-space: nowrap">break-up</FONT> fee
    of $2.25&#160;million. If the Merger Agreement is terminated by
    Glacier due to Citizens&#146; receipt of a Superior Proposal and
    prior to or within six months after such termination, Citizens
    or the Citizens Banks enter into an agreement, or publicly
    announce an intention, to engage in an acquisition event, or
    within 12&#160;months after such termination an acquisition
    event has occurred, then Citizens will promptly pay to Glacier
    the <FONT style="white-space: nowrap">break-up</FONT>
    fee in the amount of $2.25&#160;million.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Allocation
    of Costs Upon Termination</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the Merger Agreement is terminated (except under
    circumstances that would require the payment of a termination
    fee or
    <FONT style="white-space: nowrap">break-up</FONT>
    fee) Glacier and Citizens will each pay their own
    <FONT style="white-space: nowrap">out-of-pocket</FONT>
    expenses incurred in connection with the transaction and, except
    for any applicable termination or
    <FONT style="white-space: nowrap">break-up</FONT>
    fees, will have no other liability to the other party.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Conduct
    Pending the Merger</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Merger Agreement provides that, until the merger is
    effective, Citizens and each Citizens Bank will conduct their
    respective businesses only in the ordinary and usual course. The
    Merger Agreement also provides that, unless Glacier otherwise
    consents in writing, and except as required by applicable
    regulatory authorities, Citizens and each Citizens Bank will
    refrain from engaging in various activities such as:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    effecting any stock split or other recapitalization with respect
    to Citizens or the shares of any Citizens Bank, or pledge or
    encumber any shares of such stock or grant any options for such
    stock;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    other than in the ordinary course of business, consistent with
    past practice, and as necessary to pay Citizens transaction fee
    expenses consistent with the Merger Agreement, declaring or
    paying dividends (except quarterly dividends to be paid in April
    2006 and July 2006 of approximately $500,000&#160;per quarter)
    or other distributions;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    acquiring, selling, transferring assigning or encumbering or
    otherwise disposing of assets or making any commitment other
    than in the ordinary course of business;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    soliciting or accepting deposit accounts of a different type
    than previously accepted by the Citizens Banks or at rates
    materially in excess of prevailing interest rates, or, with
    specified exceptions, incurring any indebtedness for borrowed
    money;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    offering or making loans or other extensions of credit of a
    different type, or applying different underwriting standards,
    from those previously offered or applied by the Citizens Banks,
    or offering or making a loan or extension of credit in am amount
    greater than $1&#160;million without prior consultation with
    Glacier;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    with specified exceptions, acquiring an ownership or leasehold
    interest in real property without conducting an appropriate
    environmental evaluation;
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    32
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    with specified exceptions, entering into, renewing, amending or
    terminating any contracts calling for a payment of more than
    $25,000, with a term of one year or more;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    with specified exceptions, entering into or amending any
    contract calling for a payment of more than $25,000, unless the
    contract may be terminated without cause or penalty upon
    30&#160;days notice or less;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    with specified exceptions, entering into any personal services
    contract;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    selling any securities other than in the ordinary course of
    business, or selling any securities even in the ordinary course
    of business if the aggregate gain realized from all sales after
    the date of execution of the Merger Agreement would exceed
    $25,000, or transferring investment securities between
    portfolios;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    amending or materially changing its operations, policies or
    procedures;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    with specified exceptions, making capital expenditures in excess
    of $25,000&#160;per project or related series of projects or
    $50,000 in the aggregate;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    entering into transactions or making any expenditures other than
    in the ordinary course of business except for expenses
    reasonably related to the completion of the merger.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Citizens
    Bank Management and Operations After the Merger</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon the effectiveness of the merger, Citizens will merge with
    and into a newly formed, wholly-owned subsidiary of Glacier (the
    &#147;Holding Subsidiary&#148;), and each of the Citizens Banks
    will become subsidiaries of Glacier by virtue of being
    subsidiaries of the Holding Subsidiary. For an initial period
    following the merger (the &#147;Transition Period&#148;), the
    various Citizens Banks will operate under their current names
    and with their current boards of directors and executive
    officers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Following the Transition Period, the various former Citizens
    Banks will be merged with and into currently existing Glacier
    subsidiary banks, based upon geographic location (the &#147;Bank
    Mergers&#148;). Upon the closing of the Bank Mergers, the former
    Citizens Banks will operate as divisions of the Glacier
    subsidiary banks into which they have merged. As described under
    &#147;&#151;&#160;Interests of Certain Persons in the
    Merger&#160;&#151;&#160;Employment Agreements&#148; below, each
    of the current Presidents of the various Citizens Banks have
    entered into employment agreements under which they will
    continue to serve as President during the Transition Period, and
    will serve in a senior management role following the Bank
    Mergers.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Employee
    Benefit Plans</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Merger Agreement provides that Glacier and Citizens intend,
    as soon as practicable after the merger, to transfer the accrued
    benefits of employees of Citizens and the Citizens Banks under
    Citizens&#146; Pension Plan that are intended to be qualified
    under Section&#160;401(a) of the Internal Revenue Code to a
    similar plan maintained by Glacier. Citizens&#146; other
    existing benefit plans will be terminated. If the employment of
    any persons who are Citizens Bank employees is terminated within
    three months of the closing of the Bank Mergers as a result of
    the consolidation of staff functions, such persons will be
    entitled to receive the severance payment specified in
    Glacier&#146;s severance plan for employees as then in effect.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Interests
    of Certain Persons in the Merger</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Certain members of the Citizens board of directors and
    management may be deemed to have interests in the merger, in
    addition to their interests as shareholders of Citizens
    generally. The Citizens board of directors was aware of these
    factors and considered them, among other things, in approving
    the Merger Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Stock Ownership.</I>&#160;&#160;The Voting Agreement
    Shareholders beneficially owned, as of the record date for the
    special meeting, a total number of shares of Citizens common
    stock representing approximately 85.48% of all outstanding
    Citizens shares. The Voting Agreement Shareholders of Citizens
    will receive the same consideration in the merger for their
    shares as other shareholders of Citizens.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Voting Agreements.</I>&#160;&#160;The Voting Agreement
    Shareholders of Citizens have entered into a Voting Agreement,
    dated as of the same date as the Merger Agreement. Pursuant to
    this agreement, each Voting Agreement Shareholder
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    33
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    agrees to vote the shares of Citizens common stock that he owns
    or controls in favor of the merger. The persons or entities that
    have entered into this agreement are entitled to vote a total of
    403,021.40 outstanding shares of Citizens common stock, which is
    approximately 85.48% of the total shares outstanding.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Employment Agreements.</I>&#160;&#160;Each of the Citizens
    Banks have entered into an employment agreement, ratified by
    Glacier, with its current President (Mr.&#160;Bob Whalen of
    Citizens State Bank of Hamilton; Mr.&#160;Jason Hinch of First
    Citizens Bank of Billings; Mr.&#160;Dean Comes of First National
    Bank of Lewiston; Mr.&#160;Bob Sizemore of Western Bank of
    Chinook, N.A.; and Mr.&#160;Scott Weaver of First Citizens Bank,
    N.A.). Each employment agreement provides that following the
    merger, the relevant Citizens Bank will operate as a subsidiary
    of the Holding Subsidiary during the Transition Period, and that
    following the Transition Period, the relevant former Citizens
    Bank will merge with and into an existing Glacier subsidiary
    bank in the Bank Mergers, and thereafter operate as a division
    of such Glacier subsidiary bank.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each employment agreement provides that during the Transition
    Period the named executive will serve as President of the
    relevant former Citizens Bank, and that after the Transition
    Period, the named executive&#146;s title will be determined by
    the board of directors of the Glacier subsidiary into which the
    relevant former Citizens Bank merged.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each of the employment agreements provides that if the
    employment of the named executive is terminated without cause
    (as defined in the agreement) or if the named executive resigns
    with good reason (as defined in the agreement), the relevant
    employing bank will pay to the named executive a lump sum
    payment based on the named executive&#146;s monthly base salary
    and the terms of the agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each of the employment agreements provide that during the term
    of employment and for a one year after the named
    executive&#146;s employment has ended, the named executive will
    not provide management, supervisory or other similar services to
    any person or entity engaged in any business within the County
    in which the employing bank is located, that is competitive with
    the business of the employing bank or Glacier.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each of the employment agreements provides for an initial annual
    salary, with subsequent salary increases subject to the
    employing bank&#146;s annual review of the named
    executive&#146;s compensation and performance. The initial
    annual salaries for the Citizens Banks Presidents range from
    $86,000 to $120,000.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Citizens Director Non-Competition
    Agreement.</I>&#160;&#160;All members of the board of directors
    of Citizens (except Messrs.&#160;Dean Comes and Jason Hinch, who
    are subject to an employment agreement) have entered into a
    non-competition agreement with Glacier. Except under certain
    limited circumstances, the non-competition agreement prohibits
    directors from competing with Glacier, the Citizens Banks that
    will become Glacier subsidiaries following the merger, and their
    successors within the State of Montana. The term of the
    non-competition agreement commences upon the effective date of
    the merger and continues for two years.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Citizens Principal Shareholder Non-Competition
    Agreement.</I>&#160;&#160;The Trust, the Foundation and the
    Presidents of the subsidiary banks of Citizens affiliated bank
    holding companies who are not also Citizens directors have
    entered into a non-competition agreement with Glacier. Except
    under certain limited circumstances, the non-competition
    agreement prohibits such principal shareholders from competing
    with Glacier, the Citizens Banks that will become Glacier
    subsidiaries following the merger, and their successors, within
    Yellowstone, Ravalli, Fergus, Blaine and Flathead Counties in
    Montana. The term of the non-competition agreement commences on
    the effective date of the merger and continues for two years.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Stay Bonuses.</I>&#160;&#160;Certain Citizens employees and
    Presidents and other senior officers of the Citizens Banks will
    receive stay bonuses in the aggregate amount of
    $1.2&#160;million (of which $700,000 in the aggregate will be
    paid to the Presidents of the Citizens Banks) immediately prior
    to the consummation of the merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Potential Conflict of Interest of Citizens&#146; Investment
    Banking Advisor.</I>&#160;&#160;Citizens&#146; investment
    banking advisor in the merger, Davidson, has conflicts or
    potential conflicts of interest as a result of the fact that
    Davidson has advised Glacier on previous bank acquisition
    transactions and public or private securities offerings,
    currently makes a market in and provides investment research
    coverage of Glacier&#146;s common stock and is expected to serve
    as an underwriter of shares of Glacier&#146;s common stock that
    may be issued by Glacier in connection with the merger. Davidson
    advised the Citizens board of directors of such conflicts or
    potential conflicts of interest and further
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    34
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    advised the board, and the board determined, to obtain an
    independent opinion as to the fairness of the merger to Citizens
    shareholders, from a financial point of view.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Indemnification of Directors and Officers;
    Insurance.</I>&#160;&#160;The Merger Agreement provides that
    Glacier will, for a period of four years following the closing
    of the merger, indemnify the present and former directors and
    officers of Citizens and the Citizens Banks against liabilities
    or costs that may arise in the future, incurred in connection
    with claims or actions arising out of or pertaining to matters
    that existed or occurred prior to the effective date of the
    merger. The scope of this indemnification is to the fullest
    extent that such persons would have been entitled to
    indemnification under Montana law or the articles of
    incorporation or bylaws of Citizens
    <FONT style="white-space: nowrap">and/or</FONT> the
    Citizens Banks.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Merger Agreement also provides that for a period of four
    years following the closing of the merger, Glacier will use
    reasonable efforts to cause to be maintained in effect, director
    and officer liability insurance substantially similar to that
    maintained by Glacier with respect to claims arising from facts
    or events that occurred before the effective date of the merger.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Accounting
    Treatment of the Merger</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The acquisition of Citizens will be accounted for using the
    purchase method of accounting by Glacier under generally
    accepted accounting principles. Accordingly, using the purchase
    method of accounting, the assets and liabilities of Citizens
    will be recorded by Glacier at their respective fair values at
    the time of the merger. The excess of Glacier&#146;s purchase
    price over the net fair value of assets acquired including
    identifiable intangible assets and liabilities assumed is
    recorded as goodwill. Goodwill will be periodically assessed for
    impairment but no less frequently than on an annual basis. Prior
    period financial statements are not restated and results of
    operation of Citizens will be included in Glacier&#146;s
    consolidated statement of operations after the date of the
    merger. The intangible assets will be amortized against the
    combined company&#146;s earnings following completion of the
    merger.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Stock
    Resales by Citizens Affiliates</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Glacier common stock to be issued in the merger will be
    transferable free of restrictions under the Securities Act of
    1933 (&#147;1933&#160;Act&#148;), except for shares received by
    persons, including directors and executive officers of Citizens,
    who may be deemed to be &#147;affiliates&#148; of Citizens, as
    that term is defined in the rules under the 1933&#160;Act.
    Affiliates may not sell their shares of Glacier common stock
    acquired in the merger, except (a)&#160;pursuant to an effective
    registration statement under the 1933&#160;Act covering those
    shares, (b)&#160;in compliance with Rule&#160;145, or
    (c)&#160;in accordance with an opinion of counsel reasonably
    satisfactory to Glacier, under other applicable exemptions from
    the registration requirements of the 1933&#160;Act. Glacier will
    obtain customary agreements with all Citizens directors,
    officers, and affiliates of Citizens, under which such persons
    will represent that they will not dispose of their shares of
    Glacier received in the merger or the shares of capital stock of
    Citizens or Glacier held by them before the merger, except in
    compliance with the 1933&#160;Act and the rules and regulations
    promulgated under the 1933&#160;Act. This proxy
    statement/prospectus does not cover any resales of the Glacier
    common stock received by affiliates of Citizens.
</DIV>
<A name='111'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INFORMATION
    CONCERNING CITIZENS DEVELOPMENT COMPANY</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Business</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Citizens is a Billings, Montana-based bank holding company that
    owns the five separately chartered community banks throughout
    Montana. Citizens was founded in 1968 and the Citizens Banks
    have been in existence from 35 up to 100&#160;years.
    Consequently, Citizens enjoys excellent banking office
    locations, solid market positions, and a strong and loyal
    customer base. Approximately 82% of Citizens is owned by the
    Trust, with the balance owned primarily by current and former
    officers and directors of Citizens and Citizens Banks. With only
    three full-time employees at the holding company level (whose
    services are partially allocated to affiliated banking groups in
    South Dakota and Wisconsin), management of Citizens is very
    de-centralized, with significant autonomy provided to each of
    the Citizens Banks. Citizens believes this approach reflects a
    genuine community banking philosophy, with decisions and
    relationships based at the local level.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    35
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Citizens
    Banks&#146; Products, Services and Markets</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Citizens Banks provide traditional commercial and retail
    banking services to businesses, agricultural producers, and
    individuals in the markets they serve. The Citizens Banks
    include:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I><U>First Citizens Bank of Billings</U>
    (&#147;FCB-Billings&#148;)</I>, a state-chartered bank with
    $170&#160;million in assets.
    <FONT style="white-space: nowrap">FCB-Billings</FONT>
    was established in 1969 and acquired by Mr.&#160;John Vucurevich
    in 1975. Today, the bank provides full services from four
    branches in Billings and one branch in Laurel, a community
    approximately 15&#160;miles to the west. FCB-Billings provides
    its customers a variety of lending and deposit products and
    services, with a strong emphasis on commercial lending to small
    and medium-sized businesses. Billings is the state&#146;s
    largest market, with 130,000 people in Yellowstone County and a
    diversified and growing economy supported by trade center
    activities, manufacturing, construction, energy, health care,
    education, and agriculture.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I><U>First National Bank of Lewistown</U>
    (&#147;FNB-Lewistown&#148;)</I>, a nationally-chartered bank
    with $89&#160;million in assets. FNB Lewistown was established
    in 1924 and acquired by Mr.&#160;Vucurevich in 1987. Today, the
    bank is the leading provider of banking services to customers in
    the Lewistown market. Approximately half of the bank&#146;s
    loans are agricultural loans (principally related to cattle
    ranching and wheat farming), with the balance concentrated among
    commercial and residential loans. Lewistown is the seat of
    Fergus County, a central Montana agricultural and commercial
    center with approximately 10,000 residents. The local economy,
    while tied strongly to agriculture, has enjoyed meaningful
    diversification recently through government spending, retiree
    in-migration, health care, and construction services.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;<I>&#160;</I>
</TD>
    <TD align="left">
    <I><U>Citizens State Bank of Hamilton</U>
    (&#147;CSB-Hamilton&#148;)</I>, a state-chartered bank with
    $73&#160;million in assets.
    <FONT style="white-space: nowrap">CSB-Hamilton</FONT>
    was established in 1905 and acquired by Mr.&#160;Vucurevich in
    1991. Today, the bank provides banking services from one branch
    in Hamilton and one branch in Corvallis, a town eight miles to
    the north. CSB-Hamilton provides its customers traditional
    banking services, with a particularly strong base of commercial
    and residential real estate loans. Hamilton and the surrounding
    area is one of the fastest growing areas of Montana (with a 2004
    population for Ravalli County of approximately 40,000 people),
    with significant in-migration from retirees and those desiring
    to live and work in the beautiful Bitterroot Valley. The local
    economy is supported by manufacturing, construction, real estate
    development, health care, government spending (including the
    state&#146;s only national laboratory), and tourism.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;<I>&#160;</I>
</TD>
    <TD align="left">
    <I><U>First Citizens Bank, NA</U> (&#147;FCB-Columbia
    Falls&#148;)</I>, a nationally-chartered bank with
    $63&#160;million in assets. FCB-Columbia Falls was established
    in 1891 as The Bank of Columbia Falls and acquired by
    Mr.&#160;Vucurevich from the FDIC in 1986. Today, the bank
    provides banking services from its main office in Columbia Falls
    and from a new branch (completed in 2002)&#160;just north of
    Kalispell. FCB-Columbia Falls focuses its lending activities on
    commercial and real estate lending related to construction,
    residential, and commercial projects. The bank also owns and
    operates an affiliated insurance agency. Columbia Falls and
    Kalispell are two of the three principal communities in
    rapidly-growing Flathead County which, with over 90,000
    residents, is the state&#146;s third largest county. The area
    economy is supported by tourism, real estate development,
    construction, manufacturing (principally timber processing),
    health care, and trade center activities.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;<I>&#160;</I>
</TD>
    <TD align="left">
    <I><U>Western Bank of Chinook, NA</U>
    (&#147;WB-Chinook&#148;)</I>, a nationally-chartered bank with
    $32&#160;million in assets.
    <FONT style="white-space: nowrap">WB-Chinook</FONT>
    was established in 1933 and acquired by Mr.&#160;Vucurevich in
    1972. The bank is the leading provider of banking services to
    the residents of Blaine County from its single office in
    Chinook, approximately 20&#160;miles east of Havre. WB-Chinook
    is primarily an agricultural lender to the area&#146;s large
    base of wheat farmers and cattle producers, although the bank
    also has developed a specialty niche in providing funding to
    municipalities for equipment needs through municipal leases.
    Blaine County is home to 6,700 people along the
    &#147;Hi-Line&#148; in north-central Montana. The area&#146;s
    economy is tied strongly to agriculture, with additional
    economic contributions from energy, the railroad, and health
    care.
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    36
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Citizens
    Summary Financial Information</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following selected financial information for the fiscal
    years ended December&#160;31, 2005, 2004 and 2003 is derived
    from unaudited consolidated financial statements of Citizens.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Citizens
    Balance Sheet</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="68%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 8pt">Year Ended
    December&#160;31,</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 8pt">2003</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 8pt">2004</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 8pt">2005</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom">
    <B><FONT style="font-size: 8pt">(Dollars in thousands)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">Cash&#160;&#38; Equivalents
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    48,329
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    39,649
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25,673
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">Fed Funds
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,644
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,053
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    30,056
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">Securities
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    69,252
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    74,454
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    77,657
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">Gross Loans
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    271,028
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    278,962
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    281,987
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <FONT style="font-size: 10pt">Allowance for Loan Loss
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,406
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,823
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,931
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B><FONT style="font-size: 10pt">Net Loans</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    267,622
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    275,139
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    278,056
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Premises&#160;&#38; Fixed Assets
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,956
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,823
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,726
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">OREO
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    718
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    580
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    550
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Other Assets
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,082
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,916
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,254
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B><FONT style="font-size: 10pt">Total Assets</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    413,603
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    415,614
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    429,972
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Deposits
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    367,066
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    370,911
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    381,100
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Fed Funds&#160;&#38; Repos
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,514
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,246
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,629
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Borrowings
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,479
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,902
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,904
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Trust&#160;Preferred Securities
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Other Liabilities
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,159
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,282
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,146
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B><FONT style="font-size: 10pt">Total Liabilities</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    380,998
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    381,341
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    391,779
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Minority Interest
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    780
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    790
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    698
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Equity
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    32,605
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    33,483
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,495
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B><FONT style="font-size: 10pt">Total Liabilities and
    Shareholders Equity</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    413,603
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    415,614
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    429,972
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Citizens
    Income Statement</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="71%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 8pt">Year Ended
    December&#160;31,</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 8pt">2003</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 8pt">2004</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 8pt">2005</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Interest Income
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    21,055
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    20,334
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    23,124
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Interest Expense
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,536
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,514
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,678
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Net Interest Income
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,519
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,820
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,446
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Loan Loss Provision
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    823
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    963
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    240
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Non-Interest Income
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,658
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,342
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,543
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Non-Interest Expense
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,492
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,929
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,057
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Gains (losses) on Securities Sales
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (83
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#151;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Pre-Tax Income
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,864
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,187
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,692
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Minority Interest
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    90
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    69
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    108
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Taxes
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,113
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,181
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,799
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Net Income
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,661
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,937
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,785
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Competition</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The markets in which the Citizens Banks operate are highly
    competitive. The banks compete with other financial institutions
    and providers of financial services, including banks, savings
    institutions, credit unions,
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    37
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    government agencies, finance companies, and brokerage firms.
    Many of these competitors have substantially greater resources
    than the Citizens Banks.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Competition for the Citizens Banks varies by local or regional
    market conditions. Principal competitors for FCB-Billings
    include First Interstate Bank, Wells Fargo, US Bank, Western
    Security Bank, Stockman Bank of Montana, Yellowstone Bank, and
    Rocky Mountain Bank. Principal competitors for FNB-Lewistown
    include Wells Fargo, Basin State Bank, Western Security Bank,
    Farmers State Bank of Denton, Fergus County Federal Credit
    Union, and the Farm Credit Service. Principal competitors for
    CSB-Hamilton include Farmers State Bank, Ravalli County Bank,
    Rocky Mountain Bank, First Interstate Bank, and Sterling Savings
    Bank. Principal competitors for FCB-Columbia Falls include
    Glacier Bank, First Interstate Bank, Wells Fargo, Valley Bank of
    Kalispell, Three Rivers Bank of Montana, Flathead Bank of
    Bigfork, and Mountain West Bank. Principal competitors for
    <FONT style="white-space: nowrap">WB-Chinook</FONT>
    include Bank of Bridger, Wells Fargo, Independence Bank, and the
    Farm Credit Service.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Facilities</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Citizens Banks provide services from eleven banking offices
    in Billings, Laurel, Lewistown, Hamilton, Corvallis, Columbia
    Falls, Kalispell, and Chinook.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    FCB-Billings has five branches: a large downtown facility, a
    Billings Heights branch, a west Billings branch, an in-store
    branch in a County Market grocery store (also in west Billings),
    and a full service branch in Laurel. All of the FCB-Billings
    branches are owned, except the County Market branch which is on
    a
    <FONT style="white-space: nowrap">year-to-year</FONT>
    lease.
    <FONT style="white-space: nowrap">FNB-Lewistown</FONT>
    operates out of one leased location in a prime location in
    downtown Lewistown. CSB-Hamilton has one large branch in
    downtown Hamilton and one branch in Corvallis, both of which are
    owned locations.
    <FONT style="white-space: nowrap">FCB-Columbia</FONT>
    Falls has two branches, one in downtown Columbia Falls and a
    location in north Kalispell, both of which are owned. WB-Chinook
    has one owned location in Chinook.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Employees</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of March&#160;31, 2006, Citizens and the Citizens Banks had
    163 employees, of which 141 are full-time equivalent employees.
    None of the employees are covered by a collective bargaining
    agreement. Management believes relations with its employees are
    good.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Legal
    Proceedings.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Citizens is not a party to any pending or threatened
    proceedings. Certain subsidiary banks currently are, and from
    time to time may continue to be, a party to various legal
    actions in the ordinary course of business. Two such actions are
    now pending. FCB-Billings and WB-Chinook are currently
    defendants in these actions. Management believes that resolving
    the matters will not have a material adverse impact on either
    bank&#146;s financial position or operations.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    38
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Security
    Ownership of Management and Certain Beneficial Owners</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following tables set forth information as of March&#160;31,
    2006, regarding the shares of Citizens common stock beneficially
    owned by (i)&#160;each person (other than executive officers or
    directors whose stock ownership is listed below), known by
    Citizens to own beneficially more than 5% of Citizens&#146;
    Class&#160;A and Class&#160;B common stock, (ii)&#160;each
    director of Citizens, (iii)&#160;all directors and executive
    officers of Citizens as a group. For purposes of the following
    table, persons serving as Presidents of the Citizens Banks are
    included as executive officers. Except as noted below, each
    holder has sole voting and investment power with respect to
    shares of Citizens common stock listed as owned by such person
    or entity.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Principal
    Shareholders</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="37%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="20%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="17%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="14%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="font-size: 8pt">Percentage of<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="font-size: 8pt">No. of Shares<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="font-size: 8pt">Outstanding Common<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B><FONT style="font-size: 8pt">Name</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B><FONT style="font-size: 8pt">Address</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 8pt">of Common Stock Owned</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 8pt">Stock</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">1<SUP style="font-size: 85%; vertical-align: text-top">st</SUP>&#160;National
    Bank Sioux Falls,
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">c/o Shawn Bolender,
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    386,561.4(1
</TD>
<TD nowrap align="left" valign="top">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    81.99
</TD>
<TD nowrap align="left" valign="top">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Trustee of the John
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">AVP + Trust Officer
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">T. Vucurevich Living
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <FONT style="font-size: 10pt">PO Box&#160;5186
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
    <FONT style="font-size: 10pt">Trust
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Sioux Falls, SD  57117
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Directors
    and Executive Officers</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="54%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="21%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="16%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="font-size: 8pt">Percentage of<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="font-size: 8pt">No. of Shares<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="font-size: 8pt">Outstanding Common<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B><FONT style="font-size: 8pt">Name and Position</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 8pt">of Common Stock
    Owned(2)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 8pt">Stock</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Dean Comes, <I>Director,
    President&#160;&#38; CEO; President, FNB-Lewiston</I>
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,220
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.47
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Gregory Borman, <I>Director</I>
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,220
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.47
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Gregory LeGare, <I>Director</I>
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,220
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.47
</TD>
<TD nowrap align="left" valign="bottom">
    %(3)
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Jon Sustarich, <I>Director</I>
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,220
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.47
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Jason Hinch, <I>Director,
    President, FCB-Billings</I>
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,220
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.47
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Robert Sizemore, <I>President,
    WB-Chinook</I>
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,290
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.49
</TD>
<TD nowrap align="left" valign="bottom">
    %(4)
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Scott Weaver, <I>President,
    FCB-Columbia Falls</I>
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,220
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.47
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Robert Whalen, <I>President,
    CSB-Hamilton</I>
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,220
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.47
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B><FONT style="font-size: 10pt">Officers and Directors as a
    Group (8&#160;Individuals)</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,830
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.78
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes 7,668.14 Class&#160;A shares and 354,850.26
    Class&#160;B shares. Also includes 13,863 Class&#160;B shares
    separately owned by the John T. Vucurevich Foundation, of which
    Thomas Vucurevich is one of five voting members of the advisory
    committee which directs voting of the Citizens stock owned by
    the Foundation; also includes 5,980&#160;shares (598
    Class&#160;A shares and 5,382 Class&#160;B shares) owned
    directly by Thomas Vucurevich; also includes 4,200&#160;shares
    (420 Class&#160;A shares and 3,780 Class&#160;B shares) owned by
    the United Corporation, which is controlled by the Thomas
    Vucurevich family.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    All shares indicated are Class&#160;A shares.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (3) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes 212&#160;shares held in an IRA.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (4) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes 70&#160;shares held in an IRA.</TD>
</TR>

</TABLE>
<A name='112'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">DESCRIPTION
    OF GLACIER&#146;S CAPITAL STOCK</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Glacier&#146;s authorized capital stock consists of
    78,125,000&#160;shares of common stock, $0.01&#160;par value per
    share, and 1,000,000&#160;shares of preferred stock,
    $0.01&#160;par value per share. As of the date of this proxy
    statement/prospectus, Glacier had no shares of preferred stock
    issued. The Glacier board of directors is authorized, without
    further shareholder action, to issue preferred stock shares with
    such designations, preferences and rights as the Glacier board
    of directors may determine.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    39
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Glacier common stock is listed for trading on the Nasdaq
    National Market under the symbol &#147;GBCI.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Glacier&#146;s shareholders do not have preemptive rights to
    subscribe to any additional securities that may be issued. Each
    share of Glacier common stock has the same relative rights and
    is identical in all respects to every other share of Glacier
    common stock. If Glacier is liquidated, the holders of Glacier
    common stock are entitled to share, on a pro rata basis,
    Glacier&#146;s remaining assets after provision for liabilities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For additional information concerning Glacier&#146;s capital
    stock, see &#147;Comparison Of Certain Rights Of Holders Of
    Glacier And Citizens Common Stock.&#148;
</DIV>
<A name='113'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">COMPARISON
    OF CERTAIN RIGHTS OF HOLDERS OF<BR>
    GLACIER AND CITIZENS DEVELOPMENT COMPANY COMMON STOCK</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Montana law and Glacier&#146;s Articles of Incorporation and
    Bylaws govern the rights of Glacier shareholders and will govern
    the rights of Citizens shareholders who become shareholders of
    Glacier as a result of the merger. The rights of Citizens
    shareholders are currently governed by Montana law and by
    Citizens&#146; Articles of Incorporation and Bylaws. The
    following is a brief summary of certain differences between the
    rights of Glacier and Citizens shareholders. This summary does
    not purport to be complete and is qualified by the documents
    referenced. See also &#147;Where You Can Find More Information
    About Glacier.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">General</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under its Articles of Incorporation, Glacier&#146;s authorized
    capital stock consists of 78,125,000&#160;shares of common
    stock, $0.01&#160;par value per share, and 1,000,000&#160;shares
    of preferred stock, $0.01&#160;par value per share. No shares of
    preferred stock are currently outstanding.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under its Articles of Incorporation, Citizens&#146; authorized
    capital consists of 500,000&#160;shares of Class&#160;A common
    stock, no par value per share, and 500,000&#160;shares of
    Class&#160;B common stock, no par value per share.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following is a more detailed description of Glacier&#146;s
    and Citizens&#146; capital stock.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Common
    Stock</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of March&#160;31, 2006, there were 32,314,112&#160;shares of
    Glacier common stock issued and outstanding, in addition to
    options for the purchase of 2,164,521shares of Glacier common
    stock under Glacier&#146;s employee and director stock option
    plans.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of March&#160;31, 2006, there were 43,151.33&#160;shares of
    Citizens Class&#160;A common stock and 428,321.82 Class&#160;B
    common stock issued and outstanding.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Preferred
    Stock</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of the date of this proxy statement/prospectus, Glacier had
    no shares of preferred stock issued. The Glacier board of
    directors is authorized, without further shareholder action, to
    issue preferred stock shares with such designations, preferences
    and rights as the Glacier board of directors may determine.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Dividend
    Rights</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Dividends may be paid on Glacier common stock as and when
    declared by the Glacier board of directors out of funds legally
    available for the payment of dividends. The Glacier board of
    directors may issue preferred stock that is entitled to such
    dividend rights as the board of directors may determine,
    including priority over the common stock in the payment of
    dividends. The ability of Glacier to pay dividends basically
    depends on the amount of dividends paid to it by its
    subsidiaries. The payment of dividends is subject to government
    regulation, in that regulatory authorities may prohibit banks
    and bank holding companies from paying dividends in a manner
    that would constitute an unsafe or unsound banking practice. In
    addition, a bank may not pay cash dividends if doing so would
    reduce the amount of its capital below that necessary to meet
    minimum applicable regulatory capital requirements. State laws
    also limit a
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    40
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    bank&#146;s ability to pay dividends. Accordingly, the dividend
    restrictions imposed on the subsidiaries by statute or
    regulation effectively may limit the amount of dividends Glacier
    can pay.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Dividends may be paid on Citizens common stock as and when
    declared by the Citizens board of directors out of funds legally
    available for the payment of dividends. The ability of Citizens
    to pay dividends is essentially subject to the same factors
    applicable to Glacier, as discussed above.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Voting
    Rights</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All voting rights are currently vested in the holders of Glacier
    common stock. The Class&#160;A shares of Citizens common stock
    have voting rights, with each share being entitled to one vote.
    The Class&#160;B shares of Citizens common stock are non-voting
    shares, except for matters related to certain extraordinary
    events including, without limitation, a merger or consolidation
    involving Citizens, in which case each Class&#160;B share is
    entitled to one vote.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Articles of Incorporation of Glacier provide that
    shareholders do not have cumulative voting rights in the
    election of directors. Citizens shareholders do not have
    cumulative voting rights for the election of directors.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Preemptive
    Rights</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Glacier&#146;s and Citizens shareholders do not have preemptive
    rights to subscribe to any additional securities that may be
    issued.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Liquidation
    Rights</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If Glacier is liquidated, the holders of Glacier common stock
    are entitled to share, on a pro rata basis, Glacier&#146;s
    remaining assets after provision for liabilities. The Glacier
    board of directors is authorized to determine the liquidation
    rights of any preferred stock that may be issued.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If Citizens is liquidated, the holders of Citizens common stock
    are entitled to share, on a pro rata basis, Citizens&#146;
    remaining assets after provision for liabilities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All outstanding shares of both Glacier and Citizens common stock
    are, and the shares to be issued in the merger will be, fully
    paid and nonassessable.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Amendment
    of Articles of Incorporation and Bylaws</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Montana Business Corporation Act (&#147;MBCA&#148;)
    authorizes a corporation&#146;s board of directors to make
    various changes of an administrative nature to its articles of
    incorporation, including increasing the number of outstanding
    shares in proportion to a stock split or stock divided in the
    corporation&#146;s own shares. Other amendments to a
    corporation&#146;s articles of incorporation must be recommended
    to the shareholders by the board of directors, unless the board
    determines that because of a conflict of interest or other
    special circumstances it should make no recommendation, and must
    be approved by a majority of all votes entitled to be cast by
    each voting group that has a right to vote on the amendment. The
    Glacier board of directors may, by a majority vote, amend
    Glacier&#146;s bylaws.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The bylaws of Citizens may be amended by a vote of shareholders
    representing two thirds of all of the stock issued and
    outstanding.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Approval
    of Certain Transactions</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The MBCA does not contain any &#147;anti-takeover&#148;
    provisions imposing specific requirements or restrictions on
    transactions between a corporation and significant shareholders.
    Glacier&#146;s articles of incorporation contain a provision
    requiring that specified transactions with an &#147;interested
    shareholder&#148; be approved by 80% of the voting power of the
    then outstanding shares unless it is (i)&#160;approved by
    Glacier&#146;s board of directors, or (ii)&#160;certain price
    and procedural requirements are satisfied. An &#147;interested
    shareholder&#148; is broadly defined to include the right,
    directly or indirectly, to acquire or to control the voting or
    disposition of 10% or more of Glacier&#146;s voting stock. The
    Citizens articles of incorporation do not contain any provisions
    relating to transactions with significant or interested
    shareholders.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    41
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Board of
    Directors&#160;&#151;&#160;Number of Directors and Staggered
    Board</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Glacier&#146;s articles of incorporation provide that the number
    of directors may not be less than seven (7)&#160;or more than
    seventeen (17). The articles further provide that the board must
    generally be staggered if there are nine (9)&#160;or more
    members. Glacier&#146;s board currently consists of nine
    (9)&#160;members, each of whom has a staggered three-year term.
    The Citizens bylaws provide that there will be five
    (5)&#160;directors who hold office until the next annual meeting
    of the shareholders and until successors have been elected and
    qualified.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Indemnification
    and Limitation of Liability</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the MBCA, indemnification of directors and officers is
    authorized to cover judgments, amounts paid in settlement, and
    expenses arising out of actions where the director or officer
    acted in good faith and in or not opposed to the best interests
    of the corporation, and in criminal cases, where the director or
    officer had no reasonable cause to believe that his or her
    conduct was unlawful. Unless limited by the corporation&#146;s
    articles of incorporation, Montana law requires indemnification
    if the director or officer is wholly successful on the merits of
    the action. Glacier&#146;s bylaws provide that Glacier shall
    indemnify its directors and officers to the fullest extent not
    prohibited by law, including indemnification for payments in
    settlement of actions brought against a director or officer in
    the name if the corporation, commonly referred to as a
    derivative action. Under the MBCA, any indemnification of a
    director in a derivative action must be reported to shareholders
    in writing prior to the next annual meeting of shareholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Neither Citizens articles of incorporation nor bylaws provide
    for indemnification or limitation on liability for officers and
    directors. As such, the provisions of the MBCA govern the
    indemnification of directors and officers by Citizens.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Restriction
    of Transfer of Shares</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Glacier&#146;s articles and bylaws do not provide any specific
    limitations on its ability to transfer shares, nor require the
    company&#146;s shares to bear a restrictive legend. The
    Presidents of the Citizens Banks, the Presidents of affiliated
    banks of Citizens, Citizens and its affiliated bank holding
    companies, United Bancorporation and Midwest Bancorporation,
    have entered into an Amended and Restated Shareholders Agreement
    dated February&#160;2, 2004, as amended by that certain
    Amendment No.&#160;1 to Amended and Restated Shareholders
    Agreement dated February&#160;9, 2006 (the &#147;Citizens
    Shareholders Agreement.&#148;) The Citizens Shareholders
    Agreement with respect to Citizens and the shares of Citizens
    owned by the shareholder parties to the Citizens Shareholders
    Agreement will terminate on the effective date of the merger.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Potential
    &#147;Anti-Takeover&#148; Provisions</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Glacier&#146;s articles of incorporation include certain
    provisions that could make more difficult the acquisition of
    Glacier by means of a tender offer, a proxy contest, merger or
    otherwise. These provisions include: (i)&#160;a &#147;staggered
    board,&#148; whereby only one-third of the members of the board
    of directors are elected in any particular year; and (ii)&#160;a
    requirement that any &#147;Business Combination&#148; (as
    defined in the articles of incorporation) be approved by the
    affirmative vote of not less than 80% of the voting power of the
    then outstanding shares unless it is either approved by the
    board of directors or certain price and procedural requirements
    are satisfied.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, the authorization of preferred stock, which is
    intended primarily as a financing tool and not as a defensive
    measure against takeovers, may potentially be used by management
    to make more difficult uninvited attempts to acquire control of
    Glacier (for example, by diluting the ownership interest of a
    substantial shareholder, increasing the amount of consideration
    necessary for shareholder to obtain control, or selling
    authorized but unissued shares to friendly third parties).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The staggered board structure of the board of directors, the
    &#147;supermajority&#148; approval requirement for certain
    business transactions, and the availability of Glacier&#146;s
    preferred stock for issuance without shareholder approval, may
    have the effect of lengthening the time required for a person to
    acquire control of Glacier through a tender offer, proxy contest
    or otherwise, and may deter any potentially unfriendly offers or
    other efforts to obtain control of Glacier. This could deprive
    Glacier&#146;s shareholders of opportunities to realize a
    premium for their Glacier common stock, even in circumstances
    where such action was favored by a majority of Glacier&#146;s
    shareholders.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    42
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<A name='114'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">CERTAIN
    LEGAL MATTERS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The validity of the Glacier common stock to be issued in the
    merger will be passed upon for Glacier by its special counsel,
    Christensen, Moore, Cockrell, Cummings&#160;&#38;
    Axelberg,&#160;P.C., Kalispell, Montana.
</DIV>
<A name='115'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">EXPERTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The consolidated financial statements of Glacier Bancorp, Inc.
    as of December&#160;31, 2005 and the year then ended have been
    incorporated by reference herein and in the registration
    statement in reliance upon the report of BKD, LLP, independent
    registered public accounting firm, and upon the authority of
    said firm as experts in accounting and auditing.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The consolidated statement of financial condition of Glacier
    Bancorp, Inc. as of December&#160;31, 2004 and the related
    consolidated statements of operations, stockholders&#146; equity
    and comprehensive income, and cash flows for each of the years
    in the two-year period ended December&#160;31, 2004, have been
    incorporated by reference herein and in the registration
    statement in reliance upon the report of KPMG LLP, independent
    registered accounting firm, and upon the authority of said firm
    as experts in accounting and auditing.
</DIV>
<A name='116'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">WHERE YOU
    CAN FIND MORE INFORMATION ABOUT GLACIER</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Glacier files annual, quarterly and current reports, proxy
    statements, and other information with the SEC. You may read and
    copy any reports, statements, or other information that Glacier
    files at the SEC&#146;s public reference room at 450&#160;Fifth
    Street, N.W., Washington,&#160;D.C. 20549. You can request
    copies of these documents, upon payment of a duplicating fee, by
    writing the SEC. Please call the SEC at
    <FONT style="white-space: nowrap">1-800-SEC-0330</FONT>
    for further information on the operation of the public reference
    rooms. Glacier&#146;s SEC filings are also available to the
    public on the SEC Internet site (http://www.sec.gov). As
    described below, you may also obtain the documents that Glacier
    is incorporating by reference into this proxy
    statement/prospectus from Glacier.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Glacier has filed a Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;S-4</FONT>
    to register with the SEC the shares of Glacier common stock to
    be issued to Citizens shareholders in the merger. This proxy
    statement/prospectus is part of that Registration Statement and
    constitutes a prospectus of Glacier in addition to being a proxy
    statement of Citizens for the Citizens special shareholders
    meeting. As allowed by SEC rules, this proxy
    statement/prospectus does not contain all of the information
    that you can find in the Registration Statement or the exhibits
    to the Registration Statement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The SEC allows Glacier to &#147;incorporate by reference&#148;
    information into this proxy statement/prospectus, which means
    that Glacier can disclose important information to you by
    referring you to another document filed separately by Glacier
    with the SEC. The information incorporated by reference is
    deemed to be part of this proxy statement/prospectus, except for
    any information superseded by any information in this proxy
    statement/prospectus. This proxy statement/prospectus
    incorporates by reference the documents set forth below that
    Glacier has previously filed with the SEC (other than current
    reports furnished under Item&#160;9 or Item&#160;12 of
    <FONT style="white-space: nowrap">Form&#160;8-K).</FONT>
    These documents contain important information about Glacier and
    its finances:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2005;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Quarterly Report on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarter ended March&#160;31, 2006;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Proxy Statement for Glacier&#146;s 2006 Annual Meeting of
    Shareholders;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Current Reports on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed February&#160;2, 2006; February&#160;3, 2006;
    April&#160;12, 2006; April&#160;21, 2006; April&#160;24, 2006;
    and April&#160;28, 2006.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Glacier is also incorporating by reference additional documents
    that Glacier files with the SEC between the date of this proxy
    statement/prospectus and the date of the special meeting of
    Citizens shareholders (other than current reports furnished
    under Item&#160;9 or Item&#160;12 of
    <FONT style="white-space: nowrap">Form&#160;8-K).</FONT>
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    43
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>You can obtain the documents that are incorporated by
    reference through Glacier or the SEC. You can obtain the
    documents from the SEC, as described above. These documents are
    also available from Glacier without charge, excluding exhibits
    unless Glacier has specifically incorporated such exhibits by
    reference in this proxy statement/prospectus. You may obtain
    documents incorporated by reference in this proxy
    statement/prospectus by requesting them from Glacier at 49
    Commons Loop, Kalispell, Montana 59901, telephone number
    <FONT style="white-space: nowrap">(406)&#160;751-4703,</FONT>
    ATTN: James H. Strosahl, Corporate Secretary. If you would like
    to request documents from Glacier, please do so by June&#160;13,
    2006 to receive them before the Citizens special shareholders
    meeting. Certain reports can also be found on Glacier&#146;s
    website at <U>www.glacierbancorp.com</U>.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Glacier has supplied all of the information concerning it
    contained in this proxy statement/prospectus, and Citizens has
    supplied all of the information concerning it.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You should rely only on the information contained or
    incorporated by reference in this proxy statement/prospectus in
    deciding how to vote on the merger. We have not authorized
    anyone to provide you with information other than what is
    contained in this proxy statement/prospectus. This proxy
    statement/prospectus is dated May&#160;25, 2006. You should not
    assume that information contained in this proxy
    statement/prospectus is accurate as of any other date, and
    neither the mailing of this proxy statement/prospectus to
    Citizens shareholders nor the issuance of Glacier common stock
    in the merger will create any implication to the contrary.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    44
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<A name='117'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="right" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">APPENDIX
    A</FONT></B>
</DIV>
</A>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 2pt solid #000000"></CENTER><!-- callerid=999 iwidth=455 length=0 -->

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=455 length=0 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>PLAN AND AGREEMENT OF MERGER</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>BETWEEN</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>GLACIER BANCORP, INC.</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>AND</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>CITIZENS DEVELOPMENT COMPANY</B>
</DIV>

<DIV style="margin-top: 48pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>DATED AS OF APRIL&#160;20, 2006</B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=455 length=0 -->

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 2pt solid #000000"></CENTER><!-- callerid=999 iwidth=455 length=0 -->

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><U><FONT style="font-family: 'Times New Roman', Times">TABLE
    OF CONTENTS</FONT></U></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="10%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="85%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="20%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=quadright -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 8pt">Page</FONT></B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">AGREEMENT
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">A-1
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">DEFINITIONS
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">A-2
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B><FONT style="font-size: 10pt">SECTION&#160;1.</FONT></B><FONT style="font-size: 10pt">&#160;&#160;TERMS
    OF TRANSACTION
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">A-7
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B><FONT style="font-size: 10pt">1.1</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Effect of Merger
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">A-7
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B><FONT style="font-size: 10pt">1.2</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <FONT style="font-size: 10pt">Merger Consideration
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">A-7
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B><FONT style="font-size: 10pt">1.3</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Conversion Election Procedures and
    Allocation
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">A-8
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B><FONT style="font-size: 10pt">1.4</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">No Fractional Shares
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">A-9
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B><FONT style="font-size: 10pt">1.5</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Payment to Dissenting Shareholders
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">A-9
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B><FONT style="font-size: 10pt">1.6</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Deposit of Cash and Shares
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">A-9
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B><FONT style="font-size: 10pt">1.7</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <FONT style="font-size: 10pt">Certificates
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">A-9
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B><FONT style="font-size: 10pt">SECTION&#160;2.</FONT></B><FONT style="font-size: 10pt">&#160;&#160;CLOSING
    OF TRANSACTION
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt"><FONT style="white-space: nowrap">A-10</FONT>
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B><FONT style="font-size: 10pt">2.1</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <FONT style="font-size: 10pt">Effective Date
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">A-10
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B><FONT style="font-size: 10pt">2.2</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Events of Closing
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">A-10
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B><FONT style="font-size: 10pt">2.3</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Place and Time of Closing
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">A-10
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B><FONT style="font-size: 10pt">SECTION&#160;3.</FONT></B><FONT style="font-size: 10pt">&#160;&#160;REPRESENTATIONS
    AND WARRANTIES
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">A-11
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B><FONT style="font-size: 10pt">3.1</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Representations and Warranties of
    CDC
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">A-11
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B><FONT style="font-size: 10pt">3.2</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Representations and Warranties of
    Glacier
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">A-16
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B><FONT style="font-size: 10pt">SECTION&#160;4.</FONT></B><FONT style="font-size: 10pt">&#160;&#160;CONDUCT
    AND TRANSACTIONS PRIOR TO CLOSING
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">A-18
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B><FONT style="font-size: 10pt">4.1</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Conduct of CDC&#146;s and CDC
    Banks&#146; Businesses Prior to Closing
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">A-18
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B><FONT style="font-size: 10pt">4.2</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <FONT style="font-size: 10pt">Registration Statement
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">A-22
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B><FONT style="font-size: 10pt">4.3</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <FONT style="font-size: 10pt">Affiliate Letters
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">A-23
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B><FONT style="font-size: 10pt">4.4</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Submission to Regulatory
    Authorities
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">A-23
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B><FONT style="font-size: 10pt">4.5</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <FONT style="font-size: 10pt">Public Announcements
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">A-23
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B><FONT style="font-size: 10pt">4.6</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <FONT style="font-size: 10pt">Consents
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">A-23
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B><FONT style="font-size: 10pt">4.7</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <FONT style="font-size: 10pt">Further Actions
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">A-23
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B><FONT style="font-size: 10pt">4.8</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <FONT style="font-size: 10pt">Notice
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">A-23
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B><FONT style="font-size: 10pt">4.9</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <FONT style="font-size: 10pt">Confidentiality
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">A-23
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B><FONT style="font-size: 10pt">4.10</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Availability of Glacier&#146;s
    Books, Records and Properties
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">A-24
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B><FONT style="font-size: 10pt">4.11</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Blue Sky Filings
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">A-24
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B><FONT style="font-size: 10pt">4.12</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <FONT style="font-size: 10pt">Tax Treatment
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">A-24
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B><FONT style="font-size: 10pt">4.13</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Completion of Distribution of
    Securities
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">A-24
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B><FONT style="font-size: 10pt">4.14</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <FONT style="font-size: 10pt">Best Efforts
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">A-24
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B><FONT style="font-size: 10pt">SECTION&#160;5.</FONT></B><FONT style="font-size: 10pt">&#160;&#160;APPROVALS
    AND CONDITIONS
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">A-24
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B><FONT style="font-size: 10pt">5.1</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <FONT style="font-size: 10pt">Required Approvals
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">A-24
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B><FONT style="font-size: 10pt">5.2</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Conditions to Obligations of
    Glacier
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">A-24
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B><FONT style="font-size: 10pt">5.3</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Conditions to Obligations of CDC
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">A-27
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B><FONT style="font-size: 10pt">SECTION&#160;6.</FONT></B><FONT style="font-size: 10pt">&#160;&#160;DIRECTORS,
    OFFICERS AND EMPLOYEES
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">A-28
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B><FONT style="font-size: 10pt">6.1</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <FONT style="font-size: 10pt">Controlling Shareholders
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">A-28
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B><FONT style="font-size: 10pt">6.2</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Officer&#146;s Employment Contract
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">A-28
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B><FONT style="font-size: 10pt">6.3</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Employee Benefit Issues
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">A-28
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B><FONT style="font-size: 10pt">6.4</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Indemnification of Directors and
    Executive Officers
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">A-28
    </FONT>
</TD>
<TD>
</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    i
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="10%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="85%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="20%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=quadright -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 8pt">Page</FONT></B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B><FONT style="font-size: 10pt">SECTION&#160;7.</FONT></B><FONT style="font-size: 10pt">&#160;&#160;TERMINATION
    OF AGREEMENT AND ABANDONMENT OF TRANSACTION
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">A-28
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B><FONT style="font-size: 10pt">7.1</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Termination by Reason of Lapse of
    Time
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">A-28
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B><FONT style="font-size: 10pt">7.2</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Termination Due To Glacier Average
    Closing Price Greater Than $34.88
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">A-29
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B><FONT style="font-size: 10pt">7.3</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Termination Due To Glacier Average
    Closing Price Less than $27.13
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">A-29
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B><FONT style="font-size: 10pt">7.4</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Other Grounds for Termination
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">A-29
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B><FONT style="font-size: 10pt">7.5</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Termination Fee Payable By CDC
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">A-31
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B><FONT style="font-size: 10pt">7.6</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Termination Fee Payable By Glacier
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">A-31
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B><FONT style="font-size: 10pt">7.7</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <FONT style="font-size: 10pt">Break-Up Fee
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">A-31
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B><FONT style="font-size: 10pt">7.8</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Cost Allocation Upon Termination
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">A-31
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B><FONT style="font-size: 10pt">SECTION&#160;8.</FONT></B><FONT style="font-size: 10pt">&#160;&#160;MISCELLANEOUS
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">A-31
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B><FONT style="font-size: 10pt">8.1</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <FONT style="font-size: 10pt">Notices
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">A-31
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B><FONT style="font-size: 10pt">8.2</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Waivers and Extensions
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">A-32
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B><FONT style="font-size: 10pt">8.3</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Construction and Execution in
    Counterparts
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">A-32
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B><FONT style="font-size: 10pt">8.4</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Survival of Representations,
    Warranties, and Covenants
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">A-33
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B><FONT style="font-size: 10pt">8.5</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Attorneys&#146; Fees and Costs
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">A-33
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B><FONT style="font-size: 10pt">8.6</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <FONT style="font-size: 10pt">Arbitration
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">A-33
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B><FONT style="font-size: 10pt">8.7</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Governing Law and Venue
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">A-33
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B><FONT style="font-size: 10pt">8.8</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <FONT style="font-size: 10pt">Severability
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">A-33
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B><FONT style="font-size: 10pt">8.9</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <FONT style="font-size: 10pt">No Assignment
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">A-33
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B><FONT style="font-size: 10pt">SECTION&#160;9.</FONT></B><FONT style="font-size: 10pt">&#160;&#160;AMENDMENTS
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">A-33
    </FONT>
</TD>
<TD>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    ii
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><U><FONT style="font-family: 'Times New Roman', Times">LIST
    OF SCHEDULES AND EXHIBITS</FONT></U></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="15%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="83%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B><FONT style="font-size: 10pt">SCHEDULES:</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Schedule&#160;3.1.1
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Offices of CDC/CDC Banks
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Schedule&#160;3.1.2
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Third Party Consents Required by
    CDC/CDC Banks
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Schedule&#160;3.1.3
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Capital
    Stock&#160;&#151;&#160;CDC/CDC Banks
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Schedule&#160;3.1.5
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">CDC Financial Statements
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Schedule&#160;3.1.6
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 10pt">CDC Properties
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Schedule&#160;3.1.7
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">CDC Environmental Matters
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Schedule&#160;3.1.9
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">CDC Regulatory Actions
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Schedule&#160;3.1.11
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">CDC Material Contracts
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Schedule&#160;3.1.16
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 10pt">Asset Classifications
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Schedule&#160;3.1.17
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 10pt">CDC Litigation
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Schedule&#160;3.1.18
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">CDC Insurance Policies
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Schedule&#160;3.1.20
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">CDC Benefit Plans
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Schedule&#160;4.3.1
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">CDC Rule&#160;145 Affiliates
    </FONT>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="15%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="83%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B><FONT style="font-size: 10pt">EXHIBITS:</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Exhibit&#160;A
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Form of Affiliate Letter
    </FONT>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    iii
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PLAN AND
    AGREEMENT OF MERGER<BR>
    BETWEEN<BR>
    GLACIER BANCORP, INC. AND CITIZENS DEVELOPMENT COMPANY</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This Plan and Agreement of Merger (the
    &#147;<U>Agreement</U>&#148;), dated as of April&#160;20, 2006,
    is made by and between GLACIER BANCORP, INC.
    (&#147;<U>Glacier</U>&#148;), acting on its own behalf and on
    behalf of a Montana corporation to be formed by Glacier pursuant
    to this Agreement (&#147;<U>Holdings</U>&#148;), and CITIZENS
    DEVELOPMENT COMPANY (&#147;<U>CDC</U>&#148;).
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PREAMBLE</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The management and boards of directors of Glacier and CDC
    believe that the proposed Merger, to be accomplished in the
    manner set forth in this Agreement, is in the best interests of
    the respective corporations and their shareholders.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">RECITALS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>A.&#160;<U>The Parties and Certain Subsidiaries.</U></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (1)&#160;Glacier is a corporation duly organized and validly
    existing under Montana law and is a registered bank holding
    company under the Bank Holding Company Act of 1956, as amended
    (&#147;<U>BHC Act</U>&#148;). Glacier&#146;s principal office is
    located in Kalispell, Montana.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;Among its wholly owned subsidiaries, Glacier owns all
    of the outstanding common stock of the following banks: Western
    Security Bank, a Montana state-chartered bank with its principal
    office in Billings, Montana (&#147;<U>Western
    Security</U>&#148;); Glacier Bank, a Montana state-chartered
    bank with its principal office in Kalispell, Montana
    (&#147;<U>Glacier Bank</U>&#148;); and First Security Bank of
    Missoula, a Montana state-chartered bank with its principal
    office in Missoula, Montana (&#147;<U>First Security</U>&#148;).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (3)&#160;Holdings is a corporation to be formed by Glacier under
    applicable Montana and federal law for purposes of effecting the
    Merger as described in this Agreement. Upon its formation,
    Holdings will be a wholly owned subsidiary of Glacier.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (4)&#160;CDC is a corporation duly organized and validly
    existing under Montana law and is a registered bank holding
    company under the BHC Act. CDC&#146;s principal office is
    located in Billings, Montana.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (5)&#160;CDC owns all of the outstanding capital stock of
    Citizens State Bank, a Montana state-chartered bank with its
    principal office in Hamilton, Montana
    (&#147;<U>CSB-Hamilton</U>&#148;), and more than 80% of the
    outstanding capital stock of the following banks: First Citizens
    Bank of Billings, a Montana state-chartered bank with its
    principal office in Billings, Montana
    (&#147;<U>FCB-Billings</U>&#148;); First National Bank of
    Lewistown, a national banking association with its principal
    office in Lewistown, Montana (&#147;<U>FNB-Lewistown</U>&#148;);
    Western Bank of Chinook, N.A., a national banking association
    with its principal office in Chinook, Montana
    (&#147;<U>WB-Chinook</U>&#148;); and First Citizens Bank, N.A.,
    a national banking association with its principal office in
    Columbia Falls, Montana (&#147;<U>FCB-Columbia Falls</U>&#148;).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>B.&#160;<U>The Transaction.</U></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (1)&#160;Promptly following execution of this Agreement, Glacier
    will cause the formation of Holdings as a wholly owned
    subsidiary of Glacier.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;On the Effective Date, (i)&#160;CDC will merge with and
    into Holdings, with Holdings surviving as a wholly owned
    subsidiary of Glacier; and (ii)&#160;CSB-Hamilton, FCB-Billings,
    FNB-Lewistown, WB-Chinook and FCB-Columbia Falls (collectively,
    the &#147;<U>CDC Banks</U>&#148;) will become subsidiaries of
    Holdings.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (3)&#160;Glacier and CDC anticipate that for an initial
    transition period following the Effective Date, the CDC Banks
    will operate as subsidiaries of Holdings. Following such
    transition period, it is expected that (i)&#160;each of
    FCB-Billings, FNB-Lewistown and WB-Chinook will merge with and
    into Western Security, with Western Security surviving as a
    wholly owned subsidiary of Glacier, (ii)&#160;FCB-Columbia Falls
    will merge with and into Glacier Bank, with Glacier Bank
    surviving as a wholly owned subsidiary of Glacier,
    (iii)&#160;CSB-Hamilton will merge with and into
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-1
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    First Security, with First Security surviving as a wholly owned
    subsidiary of Glacier, and (iv)&#160;Holdings will be merged
    with and into Glacier or otherwise dissolved (each of
    (i)&#160;through (iv), a &#147;<U>CDC Bank Merger</U>&#148;).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>C.&#160;<U>Board Approvals.</U></B>&#160;&#160;The respective
    boards of directors of Glacier and CDC have approved this
    Agreement and authorized its execution and delivery.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>D.&#160;<U>Other Approvals.</U></B>&#160;&#160;The Merger is
    subject to:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (1)&#160;Satisfaction of the conditions described in this
    Agreement;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;Approval by CDC&#146;s shareholders;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (3)&#160;Approval or acquiescence, as appropriate, by the Board
    of Governors of the Federal Reserve System (&#147;<U>Federal
    Reserve</U>&#148;) and any other agencies having jurisdiction
    over the Merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>E.&#160;<U>Employment Agreements.</U></B>&#160;&#160;Each CDC
    Bank has entered into or anticipates entering into an employment
    agreement with such CDC Bank&#146;s President, which agreement
    will take effect as of the Effective Date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>F.&#160;<U>Controlling Shareholder, Director and Executive
    Officer Agreements.</U></B>&#160;&#160;In connection with the
    parties&#146; execution of this Agreement, the Trust, the
    Foundation, and each Executive Officer and director of CDC and
    the CDC Bank Executive Officers (the &#147;<U>Approving
    Persons</U>&#148;) have entered into agreements, the forms of
    which have been approved by Glacier, pursuant to which, among
    other things, each agrees to vote such holder&#146;s shares of
    CDC capital stock in favor of the actions contemplated by this
    Agreement and to refrain from competing with Glacier
    <FONT style="white-space: nowrap">and/or</FONT> the
    CDC Banks and their respective successors for a period of time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>G.&#160;<U>CDC Shareholder
    Agreement.</U></B>&#160;&#160;Certain shareholders of CDC are
    parties to an Amended and Restated Shareholders Agreement, dated
    February&#160;2, 2004, as amended February&#160;9, 2006, which
    agreement will be terminated with respect to CDC in connection
    with the Merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>H.&#160;<U>Intention of the Parties&#160;&#151;&#160;Tax
    Treatment.</U></B>&#160;&#160;The parties intend for the Merger
    to qualify, for federal income tax purposes, as a tax-free
    reorganization under IRC Section&#160;368(a), and the parties
    hereto hereby adopt this Agreement as a plan of reorganization
    within the meaning of
    <FONT style="white-space: nowrap">Sections&#160;1.368-2(g)</FONT>
    and as required under 1.368-3(a) of the United States Treasury
    Regulations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>I.&#160;<U>Transfer of CDC Common Stock from the Trust to the
    Foundation.</U></B>&#160;&#160; The Foundation may apply to the
    Federal Reserve Bank of Minneapolis for approval to become a
    bank holding company, which status would result from the
    proposed transfer of the CDC Common Stock currently owned by the
    Trust to the Foundation (the &#147;<U>Foundation
    Transfer</U>&#148;).
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">AGREEMENT</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In consideration of the mutual agreements set forth in this
    Agreement, Glacier and CDC agree as follows:
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">DEFINITIONS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following capitalized terms used in this Agreement will have
    the following meanings:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Acquisition Event&#148; means any of the following:
    (i)&#160;a merger, consolidation or similar transaction
    involving CDC or any successor, (ii)&#160;a purchase, lease or
    other acquisition in one or a series of related transactions of
    assets of CDC or any of its Subsidiaries representing 25% or
    more of the consolidated assets of CDC and its Subsidiaries, or
    (iii)&#160;a purchase or other acquisition (including by way of
    merger, consolidation, share exchange or any similar
    transaction) in one or a series of related transactions of
    beneficial ownership of securities representing 50% or more of
    the voting power of CDC or its Subsidiaries (except for the
    Foundation Transfer), in each case with or by a person or entity
    other than Glacier or one of its Subsidiaries.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Acquisition Proposal&#148; has the meaning assigned to
    such term in <I>Section&#160;4.1.11</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Agreement&#148; means this Plan and Agreement of Merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;ALLL&#148; means allowance for possible loan and lease
    losses.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-2
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Approving Persons&#148; has the meaning assigned to such
    term in Recital F.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Asset Classification&#148; has the meaning assigned to
    such term in <I>Section&#160;3.1.16</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Average Daily Earnings&#148; has the meaning assigned to
    such term in <I>Section&#160;1.2.3</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Base Consideration&#148; means $77&#160;million.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;BHC Act&#148; has the meaning assigned to such term in
    Recital A.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Break-Up Fee&#148; has the meaning assigned to such term
    in <I>Section&#160;7.7</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Business Day&#148; means any day other than a Saturday,
    Sunday, legal holiday or a day on which banking institutions
    located in the State of Montana are required by law to remain
    closed.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;CDC&#148; is Citizens Development Company, a Montana
    corporation that has its principal place of business in
    Billings, Montana, and that is a bank holding company registered
    pursuant to the BHC Act.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;CDC Banks&#148; has the meaning assigned to such term in
    Recital B.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;CDC Bank Merger&#148; has the meaning assigned to such
    term in Recital B.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;CDC Common Stock&#148; means the shares of CDC
    Class&#160;A common stock, no par value, and the shares of CDC
    Class&#160;B common stock, no par value, issued and outstanding
    from time to time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;CDC Contract&#148; has the meaning assigned to such term
    in <I>Section&#160;3.1.2</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;CDC Financial Statements&#148; means CDC&#146;s
    (i)&#160;audited consolidated balance sheet as of
    February&#160;28, 2006; (ii)&#160;unaudited consolidated balance
    sheet as of the end of each fiscal quarter following
    December&#160;31, 2005 but preceding the Execution Date, and the
    related unaudited consolidated statements of income, cash flows
    and changes in shareholders&#146; equity for each such quarter;
    and (iii)&#160;unaudited consolidated balance sheets and related
    consolidated statements of income and shareholders&#146; equity
    for each of the fiscal quarters ending after the Execution Date
    and before Closing or the Termination Date<I>, </I>as the case
    may be.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;CDC Meeting&#148; has the meaning assigned in
    <I>Section&#160;4.2.2</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;CDC Transaction Fees&#148; has the meaning assigned to
    such term in <I>Section&#160;5.2.3</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Certificate&#148; has the meaning assigned to such term in
    <I>Section&#160;1.7.1</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Closing&#148; means the closing of the Merger contemplated
    by this Agreement, as more fully specified in
    <I>Section&#160;2.2</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Combination Election Shares&#148; has the meaning assigned
    to such term in <I>Section&#160;1.3.2</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Commissioner&#148; means the Commissioner of the Division
    of Banking and Financial Institutions for the State of Montana.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Compensation Plans&#148; has the meaning assigned to such
    term in <I>Section&#160;3.1.20</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;CSB-Hamilton&#148; has the meaning assigned to such term
    in Recital A(5).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Daily Sales Price&#148; for any Trading Day means the
    daily closing price per share of Glacier Common Stock on the
    NASDAQ Global Market, as reported on the website www.nasdaq.com.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Determination Date&#148; means the fifth (5th) Business
    Day immediately preceding the Effective Date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Determination Period&#148; means the five (5)&#160;Trading
    Day period immediately preceding the Determination Date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Distribution&#148; has the meaning assigned to such term
    in <I>Section&#160;4.1.3</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Earnings Adjustment&#148; has the meaning assigned to such
    term in <I>Section&#160;1.2.3</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Effective Date&#148; means the date on which the Merger
    takes place, as more fully specified in <I>Section&#160;2.1</I>.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-3
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Election Deadline&#148; has the meaning assigned to such
    term in <I>Section&#160;1.3.2</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Election Form&#148; has the meaning assigned to such term
    in <I>Section&#160;1.3.1</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Employees&#148; has the meaning assigned to such term in
    <I>Section&#160;3.1.20</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Environmental Laws&#148; has the meaning assigned to such
    term in <I>Section&#160;3.1.7</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;ERISA&#148; means the Employee Retirement Income Security
    Act of 1974, as amended.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;ERISA Affiliate&#148; means, with respect to CDC, any
    other entity that is considered one employer with CDC under
    Section&#160;4001 of ERISA or Section&#160;414 of the IRC.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Excess Transaction Fees&#148; has the meaning assigned to
    such term in <I>Section&#160;1.2.4</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Exchange Act&#148; has the meaning assigned to such term
    in <I>Section&#160;3.1.5</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Exchange Agent&#148; means American Stock Transfer and
    Trust Co.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Exchange Fund&#148; has the meaning assigned to such term
    in <I>Section&#160;1.6</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Execution Date&#148; means the date of this Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Executive Officers,&#148; with respect to Glacier, means
    Michael J. Blodnick and James H. Strosahl.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Executive Officers,&#148; means, (i)&#160;with respect to
    CDC, its President, and (ii)&#160;with respect to each CDC Bank,
    the President of such CDC Bank.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Extraordinary Expenses&#148; has the meaning assigned to
    such term in <I>Section&#160;1.2.3</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;FCB-Billings&#148; has the meaning assigned to such term
    in Recital A(5).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;FCB-Columbia Falls&#148; has the meaning assigned to such
    term in Recital A(5).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;FDIC&#148; means the Federal Deposit Insurance Corporation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Federal Reserve&#148; means the Board of Governors of the
    Federal Reserve System.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;First Security&#148; has the meaning assigned to such term
    in Recital A(2).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;FNB-Lewistown&#148; has the meaning assigned to such term
    in Recital A(5).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Foundation&#148; means the John T. Vucurevich Foundation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Foundation Transfer&#148; has the meaning assigned to such
    term in Recital I.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;GAAP&#148; means United States generally accepted
    accounting principles.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Glacier&#148; is Glacier Bancorp, Inc., a Montana
    corporation that has its principal place of business in
    Kalispell, Montana, and that is a bank holding company
    registered pursuant to the BHC Act.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Glacier Average Closing Price&#148; means the average
    Daily Sales Price of Glacier Common Stock for the Determination
    Period.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Glacier Bank&#148; has the meaning assigned to such term
    in Recital A(2).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Glacier Common Stock&#148; means the shares of Glacier
    common stock, $0.01&#160;par value per share, issued and
    outstanding from time to time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Glacier Contract&#148; has the meaning assigned to such
    term in <I>Section&#160;3.2.2</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Glacier Financial Statements&#148; means Glacier&#146;s
    (i)&#160;audited consolidated balance sheets as of
    December&#160;31, 2005, 2004 and 2003 and the related audited
    consolidated statements of income, cash flows and changes in
    shareholders&#146; equity for each of the years ended
    December&#160;31, 2005, 2004 and 2003; (ii)&#160;unaudited
    consolidated balance sheet as of the end of each fiscal quarter
    following December&#160;31, 2005 but preceding the Execution
    Date, and the related unaudited consolidated statements of
    income, cash flows and changes in shareholders&#146; equity for
    each such quarter; and (iii)&#160;unaudited consolidated balance
    sheets and related consolidated statements of income
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-4
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    and shareholders&#146; equity for each of the fiscal quarters
    ending after the Execution Date and before Closing or the
    Termination Date<I>, </I>as the case may be.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Glacier Shares&#148; means the shares of Glacier Common
    Stock to be issued to the holders of CDC Common Stock as Merger
    Consideration in accordance with <I>Section&#160;1.2.2</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Hazardous Substances&#148; has the meaning assigned to
    such item in <I>Section&#160;3.1.7</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Holdings&#148; is a Montana corporation that will be
    formed after the Execution Date as a wholly owned subsidiary of
    Glacier for purposes of effecting the Merger pursuant to this
    Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Interim Earnings Period&#148; has the meaning assigned to
    such term in <I>Section&#160;1.2.3</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;IRC&#148; means the Internal Revenue Code of 1986, as
    amended.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Knowledge&#148; has the following meanings: (i)&#160;CDC
    will be deemed to have &#147;Knowledge&#148; of a particular
    fact or matter if any Executive Officer of CDC or a CDC Bank has
    actual knowledge of such fact or matter or if any such person
    could reasonably be expected to discover or otherwise become
    aware of such fact or matter in the course of making a
    reasonable inquiry into such areas of CDC&#146;s and the CDC
    Banks&#146; business that are under such individual&#146;s
    general area of responsibility; and (ii)&#160;Glacier will be
    deemed to have &#147;Knowledge&#148; of a particular fact or
    matter if any Executive Officer of Glacier has actual knowledge
    of such fact or matter or if any such person could reasonably be
    expected to discover or otherwise become aware of such fact or
    matter in the course of making a reasonable inquiry into such
    areas of Glacier&#146;s business that are under such
    individual&#146;s general area of responsibility.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Leased Real Property&#148; means the real properties
    subject to Leases as identified in <U>Schedule&#160;3.1.6</U>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Leases&#148; means the terms and conditions governing the
    leasehold interests in the Leased Real Property as identified in
    <U>Schedule&#160;3.1.6</U> to this Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Liens&#148; means, collectively, liens, pledges, security
    interests, claims, proxies, preemptive or subscriptive rights or
    other encumbrances or restrictions of any kind.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Material Adverse Effect&#148; with respect to a Person
    means an effect that: (i)&#160;is materially adverse to the
    business, financial condition, results of operations or
    prospects of the Person and its Subsidiaries taken as a whole;
    (ii)&#160;significantly and adversely affects the ability of the
    Person to consummate the Merger on or by the Termination Date or
    to perform its material obligations under this Agreement; or
    (iii)&#160;enables any Person to prevent the consummation of the
    Merger on or by the Termination Date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;MBCA&#148; means the Montana Business Corporations Act, as
    amended.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Merger&#148; means the merger of CDC with and into
    Holdings or, if Glacier so elects, the merger of CDC with and
    into Glacier.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Merger Consideration&#148; means the aggregate
    consideration contemplated by <I>Section&#160;1.2.2</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;OCC&#148; means the Office of the Comptroller of the
    Currency.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;PCAOB&#148; means the Public Company Accounting Oversight
    Board.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Pension Plan&#148; has the meaning assigned to such term
    in <I>Section&#160;3.1.20</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Per Share Cash Consideration&#148; means cash in an amount
    equal to the Per Share Consideration.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Per Share Consideration&#148; means the quotient, rounded
    to the nearest thousandth, obtained by dividing the Total
    Consideration by the number of shares of CDC Common Stock
    outstanding as of the close of business on the Execution Date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Per Share Stock Consideration&#148; means the number of
    Glacier Shares equal to the quotient, rounded to the nearest
    thousandth, obtained by dividing the Per Share Consideration by
    the Glacier Average Closing Price.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Person&#148; includes an individual, corporation,
    partnership, association, limited liability company, trust or
    unincorporated organization.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-5
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Plan&#148; has the meaning assigned to such term in
    <I>Section&#160;3.1.20</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Properties,&#148; with respect to any party to this
    Agreement, means properties or other assets owned or leased by
    such party or any of its Subsidiaries including, with respect to
    CDC, Real Property.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Proposed Dissenting Shares&#148; means those shares of CDC
    Common Stock as to which shareholders have properly given notice
    of their intent to assert appraisal rights pursuant to
    <FONT style="white-space: nowrap">Section&#160;35-1-830</FONT>
    of the MBCA.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Prospectus/Proxy Statement&#148; means the
    Prospectus/Proxy Statement referred to in
    <I>Section&#160;4.2.1</I>, to be provided to all shareholders of
    CDC in connection with their consideration and approval of the
    Merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Real Property&#148; means any real property that CDC or
    any CDC Bank owns in fee title, other than &#147;other real
    estate owned.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Registration Statement&#148; has the meaning assigned to
    such term in <I>Section&#160;4.2.1</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Reports&#148; has the meaning assigned to such term in
    <I>Section&#160;3.1.5</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;SEC&#148; means the United States Securities and Exchange
    Commission.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Securities Act&#148; has the meaning assigned to such term
    in <I>Section&#160;3.1.5</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Securities Laws&#148; has the meaning assigned to such
    term in <I>Section&#160;3.1.5</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Stay Bonuses&#148; has the meaning assigned to such term
    in <I>Section&#160;4.1.7</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Stock Election Shares&#148; has the meaning assigned to
    such term in <I>Section&#160;1.3.2</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Subject Property&#148; has the meaning assigned to such
    term in <I>Section&#160;3.1.7</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Subsequent CDC Financial Statements&#148; means CDC
    Financial Statements for each month ending after the Execution
    Date and prior to Closing.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Subsidiary&#148; with respect to any party to this
    Agreement means any Person in which such party owns the majority
    of outstanding capital stock or voting power.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Superior Proposal&#148; means, with respect to CDC
    <FONT style="white-space: nowrap">and/or</FONT> the
    CDC Banks, any Acquisition Proposal made by a Person other than
    Glacier or its Subsidiary(A) that is for (i)&#160;a merger,
    reorganization, consolidation, share exchange, business
    combination, recapitalization or similar transaction involving
    CDC or the CDC Banks, (ii)&#160;a sale, lease, exchange,
    transfer, or other disposition of at least 25% of the assets of
    CDC or the CDC Banks, taken as a whole, in a single transaction
    or a series of related transactions, or (iii)&#160;the
    acquisition, directly or indirectly, by a person of beneficial
    ownership of 50% or more of the CDC Common Stock or a CDC
    Bank&#146;s outstanding shares whether by merger, consolidation,
    share exchange, business combination, tender, or exchange offer
    or otherwise, and (B)&#160;that is otherwise on terms which the
    Board of Directors of CDC in good faith concludes (after
    consultation with its financial advisors and outside counsel),
    taking into account, among other things, all legal, financial,
    regulatory, and other aspects of the proposal and the Person
    making the proposal, (x)&#160;would, if consummated, result in a
    transaction that is more favorable to its stockholders (in their
    capacities as stockholders), from a financial point of view,
    than the transactions contemplated by this Agreement, and
    (y)&#160;is reasonably probable of being completed.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Termination Date&#148; means <I>October&#160;31, 2006</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Termination Fee&#148; has the meaning assigned to such
    term in <I>Section&#160;7.5</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Title&#160;Companies&#148; has the meaning assigned to
    such term in <I>Section&#160;4.1.12</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Total Consideration&#148; means the sum of the Base
    Consideration plus any Earnings Adjustment less any Excess
    Transaction Fees.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Total Stock Consideration&#148; means the dollar amount,
    rounded to the nearest cent, that is equal to 40% of the Total
    Consideration.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Trading Day&#148; means a day on which Glacier Common
    Stock is traded on the NASDAQ Global Market.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Trust&#148; means the John T. Vucurevich Living Trust.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-6
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;WB-Chinook&#148; has the meaning assigned to such term in
    Recital A(5).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Western Security&#148; has the meaning assigned to such
    term in Recital A(2).
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">SECTION&#160;1.
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    TERMS OF TRANSACTION
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>1.1&#160;&#160;<U>Effect of Merger</U>.</B>&#160;&#160;Upon
    Closing of the Merger, pursuant to the provisions of the MBCA,
    all shares of CDC Common Stock issued and outstanding
    immediately prior to Closing, except for Proposed Dissenting
    Shares, will, by virtue of the Merger and without any action on
    the part of any holder of shares of CDC Common Stock, be
    converted into the right to receive the merger consideration as
    described in <I>Sections&#160;1.2 and 1.3</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>1.2&#160;&#160;<U>Merger
    Consideration</U>.</B>&#160;&#160;Subject to the provisions of
    this Agreement, on the Effective Date:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>1.2.1&#160;&#160;<U>Outstanding Glacier and Holdings Common
    Stock</U>.</B>&#160;&#160;The shares of Glacier Common Stock and
    Holdings common stock issued and outstanding immediately prior
    to the Effective Date will, on and after the Effective Date,
    remain as issued and outstanding shares of, respectively,
    Glacier and Holdings.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>1.2.2&#160;&#160;<U>Outstanding CDC Common
    Stock</U>.</B>&#160;&#160;Each share of CDC Common Stock issued
    and outstanding immediately prior to the Execution Date, except
    for Proposed Dissenting Shares, will automatically and without
    any action on the part of the holder of such share be converted
    into and represent the right to receive from Glacier either
    Glacier Shares or a combination of Glacier Shares and cash in
    accordance with the provisions of <I>Section&#160;1.3.2</I>. The
    aggregate consideration payable or issuable pursuant to the
    Merger is referred to as the &#147;<U>Merger
    Consideration</U>&#148; and has a dollar value equal to the sum
    of $77&#160;million plus any Earnings Adjustment, less any
    Excess Transaction Fees.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>1.2.3&#160;&#160;<U>Earnings
    Adjustment</U>.</B>&#160;&#160;&#147;<U>Earnings
    Adjustment</U>&#148; means the dollar amount of CDC&#146;s
    consolidated after-tax earnings from July&#160;1, 2006 to the
    Effective Date, determined in accordance with GAAP and
    consistent with past practices, but without regard to
    non-recurring or extraordinary expenses related to the Merger
    such as the CDC Transaction Fees (up to the maximum amount
    specified in <I>Section&#160;5.2.3</I>), the Stay Bonuses, any
    increases to ALLL or charge-offs or other reserves that BKD, LLP
    or Glacier may require, and the cost of title commitments
    obtained and/or policies issued in accordance with
    <I>Section&#160;4.1.12 </I>(collectively, the
    &#147;<U>Extraordinary Expenses</U>&#148;). The Earnings
    Adjustment will be based on the actual consolidated earnings of
    CDC (excluding the Merger-related expenses described in the
    preceding sentence) as reflected on CDC&#146;s monthly internal
    reported results for each month commencing after June&#160;30,
    2006 until the Effective Date. If the Effective Date occurs
    mid-month, then the Earnings Adjustment for the period following
    the most recently reported month-end until the Effective Date
    (the &#147;<U>Interim Earnings Period</U>&#148;) shall be
    calculated by multiplying (i)&#160;the number of days in the
    Interim Earnings Period, by (ii)&#160;the Average Daily
    Earnings. The &#147;<U>Average Daily Earnings</U>&#148; is the
    quotient obtained by dividing (i)&#160;CDC&#146;s actual
    consolidated earnings from January&#160;1, 2006 through the most
    recently reported month-end, excluding Extraordinary Expenses,
    by (ii)&#160;the number of days elapsed in such period.
    Notwithstanding anything in this Agreement to the contrary, if
    all conditions to Closing in <I>Section&#160;5 </I>are satisfied
    (or waived) but Closing is delayed solely to accommodate
    completion of the Foundation Transfer, then the number of days
    by which Closing is so delayed shall be excluded from the
    calculation of any Earnings Adjustment.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>1.2.4&#160;&#160;<U>Excess Transaction
    Fees</U>.</B>&#160;&#160;To the extent the CDC Transaction Fees
    exceed $810,000, the Base Consideration shall be decreased by
    the amount that such CDC Transaction Fees exceed $810,000 (the
    &#147;<U>Excess Transaction Fees</U>&#148;).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>1.2.5&#160;&#160;<U>Change in Equity
    Capital</U>.</B>&#160;&#160;If, after the date of this Agreement
    but before the Effective Date, the number of shares of Glacier
    Common Stock or CDC Common Stock issued and outstanding
    increases or decreases in number or is changed into or exchanged
    for a different kind or number of securities, through a
    recapitalization, reclassification, stock dividend, stock split,
    reverse stock split or other similar change in capitalization
    (not including increases in number due to issuances of shares
    upon exercise of any outstanding options or warrants) of Glacier
    or CDC, as the case may be, then, as appropriate, a
    proportionate adjustment will be made to the Per Share
    Consideration.
</DIV>

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    <BR>
    A-7
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>1.3&#160;&#160;<U>Conversion Election Procedures and
    Allocation</U>.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>1.3.1&#160;&#160;<U>Election Form</U>.</B>&#160;&#160;An
    election form and other appropriate and customary transmittal
    materials (which will specify that delivery will be effected,
    and risk of loss and title to the certificates theretofore
    representing shares of CDC Common Stock will pass, only upon
    proper delivery of such certificates to the Exchange Agent) in
    such form as Glacier and CDC will mutually agree (the
    &#147;<U>Election Form</U>&#148;) will be mailed with the
    Prospectus/Proxy Statement on the date of mailing of the
    Prospectus/Proxy Statement to each holder of record of CDC
    Common Stock as of the close of business on the record date for
    the CDC Meeting.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>1.3.2&#160;&#160;<U>Election Options</U>.</B>&#160;&#160;Each
    Election Form will permit the holder (or the beneficial owner
    through appropriate and customary documentation and
    instructions) to elect to receive (a)&#160;the Per Share Stock
    Consideration in respect of all of such holder&#146;s CDC Common
    Stock (&#147;<U>Stock Election Shares</U>&#148;) or (b)&#160;a
    combination of the Per Share Cash Consideration and the Per
    Share Stock Consideration for such shares (&#147;<U>Combination
    Election Shares</U>&#148;), which combination will be determined
    in accordance with <I>Section&#160;1.3.5</I>. Any CDC Common
    Stock with respect to which the Exchange Agent has not received
    an effective, properly completed Election Form on or before
    5:00&#160;p.m., Mountain Time, on the tenth (10th) Business Day
    following the CDC Meeting (or such other time and date as
    Glacier and CDC may mutually agree) (the &#147;<U>Election
    Deadline</U>&#148;) will be deemed to be &#147;Combination
    Election Shares.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>1.3.3&#160;&#160;<U>Availability of
    Forms/Information</U>.</B>&#160;&#160;Glacier will make
    available one or more Election Forms as may reasonably be
    requested from time to time by all persons who become holders
    (or beneficial owners) of CDC Common Stock between the record
    date for the CDC Meeting and the close of business on the
    Business Day prior to the Election Deadline, and CDC will
    provide to the Exchange Agent all information reasonably
    necessary for it to perform as specified herein.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>1.3.4&#160;&#160;<U>Effective
    Elections</U>.</B>&#160;&#160;Any election will have been
    properly made only if the Exchange Agent shall have actually
    received a properly completed Election Form by the Election
    Deadline. Any Election Form may be revoked or changed by the
    person submitting such Election Form at or prior to the Election
    Deadline. In the event an Election Form is revoked prior to the
    Election Deadline, the shares of CDC Common Stock represented by
    such Election Form will become Combination Election Shares.
    Subject to the terms of this Agreement and of the Election Form,
    the Exchange Agent will have reasonable discretion to determine
    whether any election, revocation or change has been properly or
    timely made and to disregard immaterial defects in the Election
    Forms, and any good faith decisions of Glacier regarding such
    matters will be binding and conclusive. Neither Glacier nor the
    Exchange Agent will be under any obligation to notify any person
    of any defect in an Election Form. To the extent the holder of
    Proposed Dissenting Shares submits an Election Form to the
    Exchange Agent, such holder&#146;s election will have no effect,
    the Exchange Agent will disregard such Election Form, and the
    Proposed Dissenting Shares will be converted in accordance with
    <I>Section&#160;1.5</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>1.3.5&#160;&#160;<U>Allocation of Glacier Shares and
    Cash</U>.</B>&#160;&#160;Within five Business Days after the
    later of the Election Deadline or the Effective Date, Glacier
    will cause the Exchange Agent to effect the allocation among the
    holders of CDC Common Stock of rights to receive Glacier Shares
    or cash in the Merger in accordance with the Election Forms as
    follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;All Stock Election Shares will then be converted into
    the right to receive the Per Share Stock Consideration;
    <U>provided</U>, however, that if the aggregate dollar value of
    the Glacier Shares that would be issued upon the conversion in
    the Merger of the Stock Election Shares exceeds the Total Stock
    Consideration, then the holders thereof will receive
    (a)&#160;the Per Share Stock Consideration for that portion of
    their shares that would cause the total dollar value of the
    Glacier Shares issued in the Merger (using the Glacier Average
    Closing Price) to equal as closely as practicable the Total
    Stock Consideration, and (b)&#160;the Per Share Cash
    Consideration for the balance of their shares;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;All Combination Election Shares will then be
    converted, on a pro rata basis, so that the holders thereof will
    receive (a)&#160;the Per Share Stock Consideration for that
    portion of their shares that, after giving effect to the
    conversion and allocation of the Stock Election Shares pursuant
    to <I>Section&#160;1.3.5(i)</I>, would cause the total dollar
    value of the Glacier Shares issued in the Merger (using the
    Glacier Average Closing Price) to equal as
</DIV>

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    <BR>
    A-8
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    closely as practicable the Total Stock Consideration, and
    (b)&#160;the Per Share Cash Consideration for the balance of
    their shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Any cash remaining after the allocation to the Stock Election
    Shares and the Combination Election Shares pursuant to
    <I>Section&#160;1.3.5(i) </I>and <I>Section&#160;1.3.5(ii)
    </I>shall be held or applied by the Exchange Agent for the
    payment of dissenting shares and fractional shares.
    Notwithstanding anything in this <I>Section&#160;1.3.5 </I>to
    the contrary, in no event shall the aggregate amount of cash
    paid for shares of CDC Common Stock, including Proposed
    Dissenting Shares, exceed sixty percent (60%) of the Total
    Consideration.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>1.4&#160;&#160;<U>No Fractional Shares</U>.</B>&#160;&#160;No
    fractional shares of Glacier Common Stock will be issued. In
    lieu of fractional shares, if any, each holder of CDC Common
    Stock who is otherwise entitled to receive a fractional share of
    Glacier Common Stock will receive an amount of cash equal to the
    product of such fractional share times the Glacier Average
    Closing Price. Such fractional share interests will not include
    the right to vote or receive dividends or any interest on
    dividends.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>1.5&#160;&#160;<U>Payment to Dissenting
    Shareholders</U>.</B>&#160;&#160;Proposed Dissenting Shares will
    have the rights provided by Title&#160;35, Chapter&#160;1,
    Part&#160;8 of the MBCA.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>1.6&#160;&#160;<U>Deposit of Cash and
    Shares</U>.</B>&#160;&#160;On or before the Effective Date,
    Glacier will deposit, or will cause to be deposited, with the
    Exchange Agent, for the benefit of the holders of certificates
    representing CDC Common Stock, for exchange in accordance with
    this <I>Section&#160;1.6</I>, (i)&#160;certificates representing
    the Glacier Shares; (ii)&#160;the aggregate cash consideration
    for payment of the Per Share Cash Consideration; and
    (iii)&#160;the cash in lieu of fractional shares to be paid in
    accordance with <I>Section&#160;1.3</I>. Such cash and
    certificates for Glacier Shares, together with any dividends or
    distributions with respect thereto, are referred to in this
    Agreement as the &#147;<U>Exchange Fund</U>.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>1.7&#160;&#160;<U>Certificates</U>.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>1.7.1&#160;&#160;<U>Letter of
    Transmittal</U>.</B>&#160;&#160;Glacier will cause the Exchange
    Agent to mail to each holder of record of a certificate
    evidencing CDC Common Stock shares (a
    &#147;<U>Certificate</U>&#148;) a form letter of transmittal
    (which will specify that delivery will be effected, and risk of
    loss and title to the Certificates will pass, only upon delivery
    of the Certificates to the Exchange Agent) and instructions for
    use in effecting the surrender of the Certificates in accordance
    with <I>Section&#160;1.7.2</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>1.7.2&#160;&#160;<U>Surrender of
    Certificates</U>.</B>&#160;&#160;Subject to
    <I>Section&#160;1.5</I>, each Certificate will, from and after
    the Effective Date, be deemed for all corporate purposes to
    represent and evidence only the right to receive the Merger
    Consideration (or to receive the cash for fractional shares) to
    which the CDC Common Stock shares converted in accordance with
    the provisions of <I>Section&#160;1.3.5</I>. Following the
    Effective Date, holders of Certificates will exchange their
    Certificates in accordance with instructions provided by the
    Exchange Agent pursuant to <I>Section&#160;1.7.1 </I>and
    together with a properly completed and executed form of
    transmittal letter in order to effect their exchange for, as
    applicable, (i)&#160;certificates representing Glacier Common
    Stock; (ii)&#160;a check or, at the election of the CDC
    shareholder, a wire transfer (but only if the amount of cash
    included in that shareholder&#146;s Merger Consideration exceeds
    $100,000), representing any cash consideration to be received
    pursuant to <I>Section&#160;1.2.2</I>; and/or (iii)&#160;a check
    representing the amount of cash in lieu of fractional shares, if
    any. Until a Certificate is so surrendered, the holder will not
    be entitled to receive his, her or its portion of the Merger
    Consideration.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>1.7.3&#160;&#160;<U>Issuance of Certificates in Other
    Names</U>.</B>&#160;&#160;Any person requesting that any
    certificate evidencing Glacier Shares be issued in a name other
    than the name in which the surrendered Certificate is registered
    must: (1)&#160;establish to the Exchange Agent&#146;s
    satisfaction the right to receive the certificate evidencing
    Glacier Shares and (2)&#160;either pay to the Exchange Agent any
    applicable transfer or other taxes or establish to the Exchange
    Agent&#146;s satisfaction that all applicable taxes have been
    paid or are not required.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>1.7.4&#160;&#160;<U>Lost, Stolen, and Destroyed
    Certificates</U>.</B>&#160;&#160;With respect to a Certificate
    that has been lost, stolen or destroyed, the Exchange Agent will
    be authorized to issue or pay the holder&#146;s portion of the
    Merger Consideration in exchange thereof, if the holder provides
    the Exchange Agent with: (1)&#160;satisfactory evidence that the
    holder owns CDC Common Stock and that the certificate
    representing this ownership is lost, stolen, or destroyed,
    (2)&#160;any appropriate affidavit or security the Exchange
    Agent may require, and (3)&#160;any reasonable assurances that
    the Exchange Agent or Glacier may require.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-9
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>1.7.5&#160;&#160;<U>Rights to Dividends and
    Distributions</U>.</B>&#160;&#160;After the Effective Date, no
    holder of any Certificate will be entitled to receive any
    dividends or other distributions otherwise payable to holders of
    record of Glacier Common Stock on any date after the Effective
    Date, unless the holder (1)&#160;is entitled by this Agreement
    to receive a certificate representing Glacier Common Stock and
    (2)&#160;has surrendered in accordance with this Agreement his,
    her or its Certificates (or has met the requirements of
    <I>Section&#160;1.7.4</I>) in exchange for certificates
    representing Glacier Shares. Surrender of Certificates will not
    deprive the holder of any dividends or distributions that the
    holder is entitled to receive as a record holder of CDC Common
    Stock on a date before the Effective Date. When the holder
    surrenders his, her or its Certificates in exchange for Glacier
    Shares, the holder will receive the amount, without interest, of
    any cash dividends and any other distributions distributed after
    the Effective Date on the whole number of Glacier Shares into
    which the holder&#146;s CDC Common Stock was converted at the
    Effective Date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>1.7.6&#160;&#160;<U>Checks in Other
    Names</U>.</B>&#160;&#160;Any person requesting that a check for
    cash to be received in the Merger or cash in lieu of fractional
    shares be issued in a name other than the name in which the
    Certificate surrendered in exchange for the cash is registered,
    must establish to the Exchange Agent&#146;s satisfaction the
    right to receive this cash.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>1.7.7&#160;&#160;<U>Affiliates</U>.</B>&#160;&#160;Certificates
    that are surrendered for exchange by any person constituting an
    &#147;affiliate&#148; of CDC for purposes of Rule&#160;145 under
    the Securities Act will not be exchanged for certificates
    representing Glacier Shares until Glacier has received a written
    agreement from such person as specified in
    <I>Section&#160;4.3.1</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>1.7.8&#160;&#160;<U>Undelivered
    Certificates</U>.</B>&#160;&#160;Any portion of the Exchange
    Fund that remains unclaimed by shareholders of CDC on a date
    that is six months after the Effective Date may be paid to
    Glacier, at Glacier&#146;s election. To the extent so paid,
    holders of CDC Common Stock who have not, prior to such time,
    complied with the provisions of this <I>Section&#160;1.7
    </I>will, from such time forward, look only to Glacier for
    payment of the Merger Consideration, the cash in lieu of
    fractional shares, and/or unpaid dividends and distributions on
    the Glacier Shares deliverable with respect to each share of CDC
    Common Stock held by such holder as determined pursuant to this
    Agreement, in each case, without any interest. Neither Glacier
    nor CDC will be liable to any holder of CDC Common Stock for any
    amount properly delivered to a public official pursuant to
    applicable abandoned property, escheat or similar laws.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">SECTION&#160;2.
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    CLOSING OF TRANSACTION
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>2.1&#160;&#160;<U>Effective Date</U>.</B>&#160;&#160;The
    Merger shall be consummated by the filing with and acceptance by
    the Montana Secretary of State of Articles of Merger, in the
    form required by and executed in accordance with the relevant
    provisions of the MBCA, and by the issuance of a Certificate of
    Merger by the Secretary of State of Montana. Unless Glacier and
    CDC agree upon a different date, the Effective Date will occur
    on the date of Closing or within three (3)&#160;Business Days
    following the date of Closing. If the Effective Date does not
    occur on or prior to the Termination Date and the parties do not
    mutually agree in writing to extend the Termination Date, either
    party may terminate this Agreement in accordance with
    <I>Section&#160;7.1</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>2.2&#160;&#160;<U>Events of
    Closing</U>.</B>&#160;&#160;Closing shall occur within five
    (5)&#160;Business Days after fulfillment or waiver of each
    condition precedent set forth in, and the granting of each
    approval (and expiration of any waiting period) covered by
    <I>Section&#160;5</I>. At the Closing, all properly executed
    documents required by this Agreement will be delivered to the
    proper party, in form consistent with this Agreement. If any
    party fails to deliver a required document at the Closing or
    otherwise defaults under this Agreement on or prior to the
    Effective Date, then the Merger will not occur unless the
    adversely affected party waives the default.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>2.3&#160;&#160;<U>Place and Time of
    Closing</U>.</B>&#160;&#160;The Closing will take place at the
    office of Glacier Bancorp, Inc., 49&#160;Commons Loop,
    Kalispell, Montana 59901, or such other place as the parties
    agree, at 9:00&#160;a.m.&#160;Mountain Time, or such other time
    as the parties agree.
</DIV>

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    <BR>
    A-10
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">SECTION&#160;3.
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    REPRESENTATIONS AND WARRANTIES
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>3.1&#160;&#160;<U>Representations and Warranties of
    CDC</U>.</B>&#160;&#160;CDC represents and warrants to Glacier
    that, except as disclosed in a Schedule to this Agreement:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>3.1.1&#160;&#160;<U>Organization and Good
    Standing</U>.</B>&#160;&#160;CDC is a corporation duly
    organized, validly existing and in good standing under the laws
    of the State of Montana, is a registered bank holding company
    pursuant to the BHC Act, and has all requisite power and
    authority to own and operate its properties and to carry on its
    businesses as now conducted. Each of its Subsidiaries is either
    a commercial bank or a corporation duly organized, validly
    existing and in good standing under the laws of its state of
    incorporation and has all requisite power and authority to own
    and operate its Properties and to carry on its businesses as now
    conducted. The locations of all offices, including approved and
    unopened offices of its Subsidiaries, are listed in
    <U>Schedule&#160;3.1.1</U>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>3.1.2&#160;&#160;<U>Corporate
    Authority</U>.</B>&#160;&#160;The execution, delivery and
    performance by CDC of this Agreement does not and will not, and
    the consummation by CDC of the Merger will not, constitute or
    result in: (1)&#160;a breach or violation of, or a default
    under, its articles of incorporation or bylaws; (2)&#160;a
    breach or violation of, or a default under, or the acceleration
    of or the creation of a Lien (with or without the giving of
    notice, the lapse of time or both) under, any provision of any
    agreement, lease, contract, note, mortgage, indenture,
    arrangement or other obligation by which it or any of its
    Subsidiaries is bound or to which it or any of its Subsidiaries
    is a party (collectively, the &#147;<U>CDC Contracts</U>&#148;);
    or (3)&#160;a material violation of any law, rule, ordinance or
    regulation or judgment, decree, order, award, or governmental or
    non-governmental permit or license to which it is subject; or
    (4)&#160;any change in the rights or obligations of any party
    under any of the CDC Contracts. <U>Schedule&#160;3.1.2</U>
    contains a list of all consents CDC or the CDC Banks must obtain
    from third parties under any CDC Contracts before consummation
    of the Merger, the failure of which to obtain would have a
    Material Adverse Effect.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>3.1.3&#160;&#160;<U>Capital Stock</U>.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;The authorized capital stock of CDC consists of
    500,000&#160;shares of CDC Class&#160;A Common Stock, no par
    value and 500,000&#160;shares of CDC Class&#160;B Common Stock,
    no par value. A total of 43,151.33&#160;shares of CDC
    Class&#160;A Common Stock and 428,321.82&#160;shares of
    Class&#160;B Common Stock are issued and outstanding as of the
    date of this Agreement, all of which were validly issued and are
    fully paid and nonassessable.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;<U>Schedule&#160;3.1.3</U> sets forth, for each CDC
    Bank, such bank&#146;s authorized capital stock, par value per
    share and the number of shares issued and outstanding. All of
    the issued and outstanding shares of the CDC Banks are owned by
    the shareholders and in the amounts listed on <U>Schedule
    3.1.3</U>. All of the issued and outstanding shares of each CDC
    Bank are fully paid and nonassessable, except to the extent of
    any assessment required under
    <FONT style="white-space: nowrap">Section&#160;32-1-506</FONT>
    of the Montana Banking Act or under the National Bank Act.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;No unissued shares of common stock or any other
    securities of CDC or the CDC Banks or any of their Subsidiaries,
    are subject to any warrants, options, conversion privileges,
    rights or commitments of any character, kind or nature. Neither
    CDC nor any of the CDC Banks has issued or is obligated to issue
    any additional shares of common stock or any other security to
    any other person.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>3.1.4&#160;&#160;<U>Subsidiaries</U>.</B>&#160;&#160;CDC has
    no Subsidiaries other than the CDC Banks. The shares of capital
    stock of each of CDC&#146;s Subsidiaries are owned by it free
    and clear of all liens, claims, encumbrances and restrictions on
    transfer, other than the restrictions imposed by applicable
    federal and state securities laws.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>3.1.5&#160;&#160;<U>Reports and Financial Statements</U>.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;<U>Filing of Reports</U>.&#160;&#160; Since
    January&#160;1, 2002, CDC and each of its Subsidiaries has filed
    all reports and statements, together with any required
    amendments to these reports and statements, that they were
    required to file with (1)&#160;the Federal Reserve, (2)&#160;the
    FDIC, (3)&#160;the OCC and (4)&#160;any other applicable federal
    or state banking, insurance, securities, or other regulatory
    authorities. Each of these reports and statements, including the
    related financial statements and exhibits, complied as to form
    in all material respects with all applicable statutes, rules and
    regulations as of their respective dates.
</DIV>

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    <BR>
    A-11
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;<U>Delivery to Other Party of Reports</U>.&#160;&#160;
    CDC has delivered or otherwise made available to Glacier a copy
    of each and any registration statement, offering circular,
    report, definitive proxy statement or information statement
    (collectively, its &#147;<U>Reports</U>&#148;) under the
    Securities Act of 1933, as amended (&#147;<U>Securities
    Act</U>&#148;), the Securities Exchange Act of 1934, as amended
    (&#147;<U>Exchange Act</U>&#148;), and state securities and
    &#147;Blue Sky&#148; laws (collectively, the &#147;<U>Securities
    Laws</U>&#148;) filed, used or circulated by it or any CDC Bank
    with respect to periods since January&#160;1, 2002, through the
    Execution Date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;<U>Compliance with Securities Laws</U>.&#160;&#160;As
    of their respective dates (and without giving effect to any
    amendments or modifications filed after the Execution Date),
    each of the Reports, including the related financial statements,
    exhibits and schedules, filed, used or circulated before the
    Execution Date complied (and each of the Reports filed after the
    Execution Date, will comply) in all material respects with
    applicable Securities Laws, and did not (or in the case of
    reports, statements, or circulars filed after the Execution
    Date, will not) contain any untrue statement of a material fact
    or omit to state a material fact required to be stated therein
    or necessary to make the statements made therein, in light of
    the circumstances under which they were made, not misleading.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iv)&#160;<U>Financial Statements</U>.&#160;&#160; Each of
    CDC&#146;s balance sheets included in the CDC Financial
    Statements fairly presents (or, in the case of CDC Financial
    Statements for periods ending on a date following the Execution
    Date, will fairly present) the financial position of CDC and its
    Subsidiaries as of the date of the balance sheet. Except as
    disclosed in&#160;&#160;<U>Schedule&#160;3.1.5</U><B>, </B>each
    of the statements of income, cash flows and shareholders&#146;
    equity included in the CDC Financial Statements fairly presents
    (or, in the case of CDC Financial Statements to be prepared in
    accordance with <I>Section&#160;4.1.9</I>, if required, or for
    periods ending on a date following the Execution Date, will
    fairly present) the results of operations, shareholders&#146;
    equity and cash flows, as the case may be, of CDC and its
    Subsidiaries for the periods set forth in these statements
    (subject, in the case of unaudited statements, to normal
    year-end audit adjustments), in each case in accordance with
    GAAP, except as may be noted in these statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>3.1.6&#160;&#160;<U>Properties</U>.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;CDC and its Subsidiaries are not a party to any real
    property lease, whether as landlord, tenant, guarantor or
    otherwise, except as disclosed in <U>Schedule&#160;3.1.6</U>.
    Except as disclosed or reserved against in the CDC Financial
    Statements or in <U>Schedule&#160;3.1.6</U>, CDC and/or one of
    its Subsidiaries have good and marketable title, free and clear
    of all Liens (other than Liens for taxes not yet delinquent or
    pledges to secure deposits and other security provided in the
    ordinary course of business including, without limitation,
    security for Federal Home Loan&#160;Bank borrowings, federal
    funds and repurchase agreements) to all of the properties and
    assets, tangible or intangible, reflected in the CDC Financial
    Statements as being owned or leased by any of them as of the
    Execution Date. Except as disclosed in <U>Schedule 3.1.6</U>,
    all buildings and structures on the Real Property and the
    equipment located thereon are in all material respects in good
    operating condition and repair (ordinary wear and tear excepted)
    and conform in all material respects to all applicable laws,
    ordinances and regulations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;To the Knowledge of CDC, all buildings and all
    fixtures, equipment and other property and assets that are
    material to CDC&#146;s business on a consolidated basis are
    owned by it or one of its Subsidiaries or are held under leases
    or subleases by it or one of its Subsidiaries, enforceable in
    accordance with their respective terms (except as may be limited
    by applicable bankruptcy, insolvency, reorganization, moratorium
    or other laws affecting creditors&#146; rights generally or by
    general equitable principles).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;<U>Schedule&#160;3.1.1</U> lists all of its existing
    branches and offices and all new branches or offices that any
    CDC Bank has applied to establish or purchase, along with the
    estimated cost to establish or purchase those new branches.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iv)&#160;CDC has provided to Glacier copies of existing title
    policies, if any, held in its files relating to the Real
    Property, and, to the Knowledge of CDC, no exceptions,
    reservations, or encumbrances have arisen or been created since
    the date of issuance of those policies (other than Liens for
    taxes not yet delinquent).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>3.1.7&#160;&#160;<U>Environmental Matters</U>.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;For purposes of this <I>Section&#160;3.1.7</I>, the
    following definitions apply:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (1)&#160;&#147;<U>Subject Property</U>&#148; with respect to a
    party means (i)&#160;all real property at which its business has
    been conducted, and any property where under any Environmental
    Law it is deemed to be the owner or operator of the property;
    (ii)&#160;any facility in which it is the owner or operator of
    the facility; and (iii)&#160;all other real property
</DIV>

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    <BR>
    A-12
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<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    that, for purposes of any Environmental Law, it otherwise could
    be deemed to be an owner or operator of or as otherwise having
    control over.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;&#147;<U>Environmental Laws</U>&#148; means any
    federal, state or local law, regulation, order, decree,
    judgment, judicial opinion, or any agreement between CDC or any
    of its Subsidiaries and any Governmental Entity presently in
    effect relating to: (i)&#160;the manufacture, generation,
    transport, use, treatment, storage, recycling, disposal,
    release, threatened release or presence of Hazardous Substances,
    or (ii)&#160;the protection of human health or the environment.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (3)&#160;&#147;<U>Hazardous Substances</U>&#148; means any
    substance, material or waste that is (a)&#160;defined as a
    &#147;hazardous substance&#148; in 42&#160;USC &#167; 9601(14),
    (b)&#160;defined as a &#147;pollutant or contaminant&#148; in
    33&#160;USC &#167; 1362(6), (c)&#160;defined as a
    &#147;hazardous waste&#148; in 42&#160;USC &#167; 6903(5), or
    (d)&#160;petroleum or a petroleum product or any other substance
    defined as &#147;hazardous,&#148; &#147;dangerous&#148; or
    &#147;toxic&#148; under any federal or state law or regulation
    enacted for the protection of human health or the environment;
    <U>provided, however</U>, that supplies and materials used by
    CDC and/or its Subsidiaries for general office purposes will not
    be deemed to be Hazardous Substances for the purposes of this
    Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;Except as disclosed in <U>Schedule&#160;3.1.7</U>, to
    CDC&#146;s Knowledge, CDC, its Subsidiaries and the Subject
    Property are, and have been, in material compliance with all
    applicable Environmental Laws, and to CDC&#146;s Knowledge, no
    circumstances exist that would result in a material violation of
    such Environmental Laws.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;Except as disclosed in <U>Schedule&#160;3.1.7</U>,
    none of the following exists, and to CDC&#146;s Knowledge, no
    reasonable basis for any of the following exists: pending or
    threatened claims, actions, investigations, notices of
    non-compliance, information requests or notices of potential
    responsibility or proceedings involving CDC, any of its
    Subsidiaries or any Subject Property, the occurrence or
    existence of which would result in a Material Adverse Effect,
    relating to:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (1)&#160;an asserted liability of CDC or any of its Subsidiaries
    or any prior owner, occupier or user of Subject Property under
    any applicable Environmental Law or the terms and conditions of
    any permit, license, authority, settlement, agreement, decree or
    other obligation arising under any applicable Environmental Law;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;the handling, storage, use, transportation, removal or
    disposal of Hazardous Substances;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (3)&#160;the actual or threatened discharge, release or emission
    of Hazardous Substances from, on or under or within Subject
    Property into the air, water, surface water, ground water, land
    surface or subsurface strata;&#160;or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (4)&#160;personal injuries or damage to the Subject Property
    related to or arising out of the release of Hazardous Substances.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iv)&#160;Except as disclosed in <U>Schedule&#160;3.1.7</U>, no
    storage tanks underground or otherwise are present on the
    Subject Property or, if present, none of such tanks are leaking
    and each of them is in full compliance with all applicable
    Environmental Laws (except where the failure to be in full
    compliance would not have a Material Adverse Effect). With
    respect to any Subject Property, except as permitted by
    applicable Environmental Laws, neither CDC nor any of its
    Subsidiaries owns, possesses or controls any PCBs,
    PCB-contaminated fluids, wastes or equipment, or any material
    amount of asbestos or asbestos-containing material, the
    existence of which would have a Material Adverse Effect. No
    Hazardous Substances have been used, handled, stored,
    discharged, released or emitted, or are threatened to be
    discharged, released or emitted, at or on any Subject Property,
    except in compliance with applicable Environmental Laws (except
    where failure to be in compliance would not have a Material
    Adverse Effect).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (v)&#160;Except as disclosed in <U>Schedule&#160;3.1.7</U>, to
    CDC&#146;s Knowledge, no part of the Subject Property has been
    or is scheduled for investigation or monitoring under any
    applicable Environmental Law.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (vi)&#160;Except as disclosed in <U>Schedule&#160;3.1.7</U>, no
    condition from, on or under the Subject Property exists with
    respect to the Subject Property which would have a Material
    Adverse Effect that would require remediation under applicable
    Environmental Laws.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>3.1.8&#160;&#160;<U>Taxes</U>.</B>&#160;&#160;All tax returns
    and reports required by law to be filed by CDC and its
    Subsidiaries have been duly filed, and all taxes, assessments,
    fees and other government charges upon CDC or any of its
    Subsidiaries or
</DIV>

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    <BR>
    A-13
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    upon any of their respective properties, assets, income or
    franchises that are due and payable have been paid, of which the
    failure to file or pay would have a Material Adverse Effect. The
    federal income portion of such taxes have been paid in full as
    indicated in the tax returns of CDC and its Subsidiaries for the
    past five years or adequate provision has been made for any such
    taxes on its balance sheet in accordance with GAAP, of which the
    failure to pay or provide for on the balance sheet would have a
    Material Adverse Effect. No material objections to returns or
    claims for additional taxes are being asserted with respect to
    federal or state tax returns of CDC and its Subsidiaries for any
    prior years, except for such audits, objections or claims which
    are being contested in good faith, by appropriate proceedings
    and with establishment of appropriate reserves, and which have
    been disclosed in writing to the other parties to this
    Agreement. Except as specified in the foregoing sentence, in the
    past five years, there has been no past audit, objection to
    returns, or claim for additional taxes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>3.1.9&#160;&#160;<U>Absence of Regulatory
    Action</U>.</B>&#160;&#160;Except as disclosed in
    Schedule&#160;3.1.9, neither CDC nor any of its Subsidiaries is,
    to the Knowledge of CDC, in material violation of any statute,
    rule or governmental regulation applicable to them (including,
    without limitation, the Community Reinvestment Act, Bank Secrecy
    Act, Truth in Lending Act, Equal Credit Opportunity Act, and
    statutes, rules and regulations governing the reporting of
    taxpayer identification numbers of its customers). Except as set
    forth on <U>Schedule 3.1.9</U>, neither CDC nor any of its
    Subsidiaries is a party to any cease and desist order, written
    agreement or memorandum of understanding with, or a party to any
    commitment letter or similar undertaking to, or is subject to
    any order or directive by, or is a recipient of any
    extraordinary supervisory letter from, or has adopted any board
    resolutions at the request of, federal or state regulatory
    authorities, nor have they been advised by such authorities that
    they are contemplating issuing or requesting any such order,
    agreement, memorandum or similar document or undertaking.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>3.1.10&#160;&#160;<U>Allowance for Loan
    Losses</U>.</B>&#160;&#160;In the opinion of its management, the
    ALLL shown in the latest CDC Financial Statements is, and that
    which will be stated in the Subsequent CDC Financial Statements
    prior to Closing, in both cases as adjusted for any increases in
    ALLL or charge-offs reasonably required by BKD, LLP or Glacier,
    will be, adequate to absorb its anticipated loan losses.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>3.1.11&#160;&#160;<U>Material Agreements</U>.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;Except for arrangements made after the date and in
    accordance with the terms of this Agreement, CDC and its
    Subsidiaries are not bound by any material contract (as defined
    in Item&#160;601(b)(10) of
    <FONT style="white-space: nowrap">Regulation&#160;S-K</FONT>
    under the Securities Act) that: (1)&#160;is to be performed
    after the date of this Agreement and (2)&#160;has not been set
    forth in <U>Schedule 3.1.11</U>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;Neither CDC nor any of its Subsidiaries is in default
    under any contract, agreement, commitment, arrangement, lease,
    insurance policy or other instrument, which default would result
    in a Material Adverse Effect.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>3.1.12&#160;&#160;<U>Compliance with
    Laws</U>.</B>&#160;&#160;CDC and each of its Subsidiaries has
    all material permits, licenses, certificates of authority,
    orders, and approvals of, and has made all filings,
    applications, and registrations with, federal, state, local, and
    foreign governmental or regulatory bodies that are required in
    order to permit CDC or its Subsidiaries to carry on their
    respective businesses as they are presently conducted and the
    absence of which, individually or in the aggregate, can
    reasonably be expected to have a Material Adverse Effect on
    them. All such material permits, licenses, certificates of
    authority, orders and approvals are in full force and effect,
    and, to the Knowledge of CDC, no suspension or cancellation of
    any of them is threatened.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>3.1.13&#160;&#160;<U>Knowledge as to
    Conditions</U>.</B>&#160;&#160;Except as set forth in
    Schedule&#160;3.1.9, CDC Knows of no reason why the approvals,
    consents and waivers of governmental authorities referred to in
    <I>Section&#160;5.1</I> cannot be obtained.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>3.1.14&#160;&#160;<U>No Material Adverse
    Effect</U>.</B>&#160;&#160;Since December&#160;31, 2005,
    (i)&#160;CDC and its Subsidiaries have conducted their
    respective businesses only in the ordinary and usual course of
    business, and (ii)&#160;there has not been any change in the
    financial condition (which includes, without limitation, the
    condition of assets, franchises, results of operations and
    prospects) that has had or may reasonably be expected to have a
    Material Adverse Effect on CDC or any of its Subsidiaries.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>3.1.15&#160;&#160;<U>Completeness of
    Representations</U>.</B>&#160;&#160;No representation or
    warranty made by or with respect to CDC or its Subsidiaries in
    this Agreement (or in the Schedules to this Agreement) contains
    any untrue statement of a
</DIV>

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    <BR>
    A-14
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    material fact or omits to state a material fact necessary to
    make the statements contained in this Agreement (or in such
    Schedules) or in such representation or warranty not misleading.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>3.1.16&#160;&#160;<U>Asset Classification</U>.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;<U>Schedule&#160;3.1.16</U> sets forth a list, accurate
    and complete, as of March&#160;31, 2006 except as otherwise
    expressly noted, and separated by category of classification or
    criticism (&#147;<U>Asset Classification</U>&#148;), of the
    aggregate amounts of loans, extensions of credit and other
    assets of CDC and its Subsidiaries that have been criticized or
    classified by any internal audit conducted by CDC, taking into
    account any assets that have been criticized or classified by
    any governmental or regulatory authority.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;Except as shown in <U>Schedule&#160;3.1.16</U>, no
    amounts of its loans, extensions of credit or other assets that
    have been classified or criticized by any representative of any
    governmental entity as &#147;Other Assets Especially
    Mentioned,&#148; &#147;Substandard,&#148; &#147;Doubtful,&#148;
    &#147;Loss&#148; or words of similar effect are excluded from
    the amounts disclosed in the Asset Classification, other than
    amounts of loans, extensions of credit or other assets that were
    paid off or charged off by CDC or its Subsidiaries before the
    date of this Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>3.1.17&#160;&#160;<U>Litigation</U>.</B>&#160;&#160;Except as
    disclosed in <U>Schedule 3.1.17</U>, no material litigation,
    proceeding or controversy before any court or governmental
    agency is pending (other than routine foreclosure proceedings),
    and there is no pending claim, action or proceeding against CDC
    or any of its Subsidiaries, which is reasonably likely,
    individually or in the aggregate, to have a Material Adverse
    Effect on them or to materially hinder or delay consummation of
    the Merger, and, to the Knowledge of CDC, no such litigation,
    proceeding, controversy, claim or action has been threatened or
    is contemplated.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>3.1.18&#160;&#160;<U>Insurance</U>.</B>&#160;&#160;CDC and
    each of its Subsidiaries have taken all requisite action
    (including the making of claims and the giving of notices) under
    their respective directors&#146; and officers&#146; liability
    insurance policy or policies in order to preserve all rights
    under such policies with respect to all matters known to them
    (other than matters arising in connection with, and the
    transactions contemplated by, this Agreement).
    <U>Schedule&#160;3.1.18</U> lists all directors&#146; and
    officers&#146; liability insurance policies and other material
    insurance policies maintained by CDC or its Subsidiaries.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>3.1.19&#160;&#160;<U>Labor
    Matters</U>.</B>&#160;&#160;Neither CDC nor any of its
    Subsidiaries is a party to, or is bound by, any collective
    bargaining agreement, contract, or other agreement or
    understanding with a labor union or labor organization. Neither
    CDC nor any of its Subsidiaries is the subject of any
    proceeding: (1)&#160;asserting that they have committed an
    unfair labor practice or (2)&#160;seeking to compel them to
    bargain with any labor organization as to wages or conditions of
    employment. No strike involving CDC or its Subsidiaries is
    pending or, to CDC&#146;s Knowledge, threatened. CDC has no
    Knowledge of any activity involving its or the CDC Banks&#146;
    employees seeking to certify a collective bargaining unit or
    engaging in any other organizational activity.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>3.1.20&#160;&#160;<U>Employee Benefits</U>.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;For purposes of this Agreement, &#147;Plan&#148; or
    &#147;Plans&#148;, individually or collectively, means any
    &#147;employee benefit plan,&#148; as defined in
    Section&#160;3(3) of ERISA, maintained by CDC or its
    Subsidiaries, as the case may be. CDC and its Subsidiaries are
    not now nor have ever been a contributing employer to or sponsor
    of a multiemployer plan or a single employer plan subject to
    Title&#160;IV of ERISA.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;<U>Schedule&#160;3.1.20</U> sets forth a list, as of
    the Execution Date, of (a)&#160;all Plans, stock purchase plans,
    restricted stock and stock option plans, and other deferred
    compensation arrangements, and (b)&#160;all other material
    employee benefit plans that cover employees or former employees
    of CDC and its Subsidiaries (its &#147;<U>Compensation
    Plans</U>&#148;). True and complete copies of the Compensation
    Plans (and, as applicable, copies of summary plan descriptions,
    governmental filings (on Form&#160;5500 series or otherwise),
    actuarial reports and reports under Financial Accounting
    Standards Board Statement No.&#160;106 relating to such
    Compensation Plans) covering its current employees or those of
    its Subsidiaries (collectively, &#147;<U>Employees</U>&#148;),
    including Plans and related amendments, have been made available
    to Glacier.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;All of its Plans covering Employees (other than
    &#147;multi-employer plans&#148; within the meaning of ERISA
    Sections 3(37) or 4001(a)(3)), to the extent subject to ERISA,
    are in substantial compliance with ERISA. Each of its Plans that
    is an &#147;employee pension benefit plan&#148; within the
    meaning of ERISA Section&#160;3(2) (&#147;<U>Pension
    Plan</U>&#148;) and
</DIV>

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    <BR>
    A-15
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    that is intended to be qualified under IRC Section&#160;401(a),
    has either received a favorable determination letter from the
    Internal Revenue Service or consists of a master, prototype, or
    volume submitter plan which has received an opinion or advisory
    letter from the Internal Revenue Service upon which CDC may
    rely, and CDC is not aware of any circumstances likely to result
    in revocation of any such favorable determination letter. No
    litigation relating to its Plans is pending or, to CDC&#146;s
    Knowledge, threatened. Neither CDC nor any of its Subsidiaries
    has engaged in a transaction with respect to any Plan that could
    subject it or any of its Subsidiaries to a tax or penalty
    imposed by either IRC Section&#160;4975 or ERISA
    Section&#160;502(i) in an amount that would be material.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iv)&#160;All material contributions CDC or any of its
    Subsidiaries are or were required to make under the terms of any
    of its Plans have been timely made or have been reflected in the
    CDC Financial Statements. Neither any of its Pension Plans nor
    any single-employer plan of any of its ERISA Affiliates has an
    &#147;accumulated funding deficiency&#148; (whether or not
    waived) within the meaning of IRC Section&#160;412 or ERISA
    Section&#160;302. Neither CDC nor any of its Subsidiaries or its
    ERISA Affiliates has provided, or is required to provide,
    security to any Pension Plan or to any single-employer plan of
    an ERISA Affiliate under IRC Sections&#160;401(a)(29) or
    412(f)(3) or ERISA Sections&#160;306, 307 or 4204.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (v)&#160;Except as disclosed in the CDC Financial Statements or
    in <U>Schedule&#160;3.1.20</U>, neither CDC nor any of its
    Subsidiaries has any obligations for retiree health and life
    benefits.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (vi)&#160;No provision of the documents governing any Plan
    contains restrictions on the rights of CDC or its Subsidiaries
    to amend or terminate any Plan without incurring liability under
    the Plan other than normal liabilities for benefits.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (vii)&#160;Except as disclosed in the CDC Financial Statements
    or otherwise disclosed in this Agreement or in
    <U>Schedule&#160;3.1.20</U>, the Merger will not result in
    (a)&#160;vesting, acceleration, or increase of any amounts
    payable under any Compensation Plan, (b)&#160;any material
    increase in benefits under any Compensation Plan or
    (c)&#160;payment of any severance or similar compensation under
    any Compensation Plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (viii)&#160;Except as disclosed in <U>Schedule&#160;3.1.20</U>,
    neither CDC nor any of its Subsidiaries maintains an executive
    supplemental retirement plan or similar arrangement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>3.1.21&#160;&#160;<U>Broker&#146;s or Finder&#146;s
    Fees</U>.</B>&#160;&#160;Except for the fees of D.A.
    Davidson&#160;&#38; Co. and Hovde Financial Inc., no agent,
    broker, person or firm acting on behalf of CDC or its
    Subsidiaries, or under its authority, is or will be entitled to
    any commission, broker&#146;s, finder&#146;s or financial
    advisory fee in connection with the Merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>3.2&#160;&#160;<U>Representations and Warranties of
    Glacier</U>.</B>&#160;&#160;Except as disclosed in a schedule to
    this Agreement, Glacier represents and warrants to CDC:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>3.2.1&#160;&#160;<U>Organization and Good
    Standing</U>.</B>&#160;&#160;Glacier is a corporation duly
    organized, validly existing and in good standing under the laws
    of the State of Montana, is a registered bank holding company
    pursuant to the BHC Act, and has all requisite power and
    authority to own and operate its properties and to carry on its
    businesses as now conducted. Each of its Subsidiaries is either
    a commercial bank, a statutory trust or a corporation duly
    organized, validly existing and in good standing under the laws
    of its state of incorporation and has all requisite power and
    authority to own and operate its Properties and to carry on its
    businesses as now conducted.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>3.2.2&#160;&#160;<U>Corporate
    Authority</U>.</B>&#160;&#160;The execution, delivery and
    performance by Glacier of this Agreement does not and will not,
    and the consummation by Holdings of the Merger will not,
    constitute or result in: (1)&#160;a breach or violation of, or a
    default under, either of their articles of incorporation or
    bylaws; (2)&#160;a breach or violation of, or a default under,
    or the acceleration of or the creation of a Lien (with or
    without the giving of notice, the lapse of time or both) under
    any provision of any agreement, lease, contract, note, mortgage,
    indenture, arrangement or other obligation by which either of
    them is bound or to which either of them is a party
    (collectively, the &#147;<U>Glacier Contracts</U>&#148;); or
    (3)&#160;a material violation of any law, rule, ordinance or
    regulation or judgment, decree, order, award, or governmental or
    non-governmental permit or license to which either of them is
    subject; or (4)&#160;any change in the rights or obligations of
    any party under any of the Glacier Contracts.
</DIV>

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    <BR>
    A-16
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    <B>3.2.3&#160;&#160;<U>Capital Stock</U>.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;The authorized capital stock of Glacier consists of
    78,125,000&#160;shares of Glacier Common Stock, par value $0.01
    per share. A total of 32,314,112&#160;shares of Glacier Common
    Stock were issued and outstanding as of March&#160;31, 2006, all
    of which were validly issued and are fully paid and
    nonassessable. As of March&#160;31, 2006, options to acquire
    2,177,766&#160;shares of Glacier Common Stock have been granted
    and are outstanding.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;No unissued shares of common stock or any other
    securities of Glacier are subject to any warrants, options,
    conversion privileges, rights or commitments of any character,
    kind or nature, except as set forth in Glacier&#146;s Reports,
    and Glacier has not issued and is not obligated to issue any
    additional shares of common stock or any other security to any
    other person, except as so disclosed.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>3.2.4&#160;&#160;<U>Reports and Financial Statements</U>.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;<U>Filing of Reports</U>.&#160;&#160;Since
    January&#160;1, 2002, Glacier and each of its Subsidiaries has
    filed all reports and statements, together with any required
    amendments to these reports and statements, that they were and
    will be required to file with (1)&#160;the SEC, (2)&#160;the
    Federal Reserve, (3)&#160;the FDIC, and (4)&#160;any other
    applicable federal or state banking, insurance, securities, or
    other regulatory authorities. Each of these reports and
    statements, including the related financial statements and
    exhibits, complied as to form in all material respects with all
    applicable statutes, rules and regulations as of their
    respective dates.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;<U>Compliance with Securities Laws</U>.&#160;&#160;As
    of their respective dates (and without giving effect to any
    amendments or modifications filed after the Execution Date),
    each of the Reports, including the related financial statements,
    exhibits and schedules, filed, used or circulated before the
    Execution Date complied (and each of the Reports filed after the
    Execution Date, will comply) in all material respects with
    applicable Securities Laws, and did not (or, in the case of
    reports, statements, or circulars filed after the Execution
    Date, will not) contain any untrue statement of a material fact
    or omit to state a material fact required to be stated therein
    or necessary to make the statements made therein, in light of
    the circumstances under which they were made, not misleading.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;<U>Financial Statements</U>.&#160;&#160; Each of
    Glacier&#146;s balance sheets included in the Glacier Financial
    Statements fairly presents (or, in the case of Glacier Financial
    Statements for periods ending on a date following the Execution
    Date, will fairly present) the financial position of Glacier and
    its Subsidiaries as of the date of the balance sheet. Each of
    the statements of income, cash flows and shareholders&#146;
    equity included in the Glacier Financial Statements fairly
    presents (or, in the case of Glacier Financial Statements to be
    prepared and filed with the SEC pursuant to Glacier&#146;s
    reporting obligations under the Exchange Act for periods ending
    on a date following the Execution Date, will fairly present) the
    results of operations, shareholders&#146; equity and cash flows,
    as the case may be, of Glacier and its Subsidiaries for the
    periods set forth in these statements, in each case in
    accordance with GAAP, except as may be noted in these statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>3.2.5&#160;&#160;<U>Financing and
    Shares&#160;Available</U>.</B>&#160;&#160;At the Effective Date,
    Glacier will have (i)&#160;sufficient cash and cash equivalents
    on hand to pay the cash component of the Merger Consideration,
    cash in lieu of fractional shares, and any amounts payable to
    holders of Proposed Dissenting Shares; and (ii)&#160;a
    sufficient number of shares of common stock authorized and
    available to issue the Glacier Shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>3.2.6&#160;&#160;<U>Absence of Regulatory
    Action</U>.</B>&#160;&#160;Neither Glacier nor any of its
    Subsidiaries is, to the Knowledge of Glacier, in material
    violation of any statute, rule or governmental regulation
    applicable to them (including, without limitation, the Community
    Reinvestment Act, Bank Secrecy Act, Truth in Lending Act, Equal
    Credit Opportunity Act, and statutes, rules and regulations
    governing the reporting of taxpayer identification numbers of
    its customers). Neither Glacier nor any of its Subsidiaries is a
    party to any cease and desist order, written agreement or
    memorandum of understanding with, or a party to any commitment
    letter or similar undertaking to, or is subject to any order or
    directive by, or is a recipient of any extraordinary supervisory
    letter from, or has adopted any board resolutions at the request
    of, federal or state regulatory authorities, nor has it been
    advised by such authorities that they are contemplating issuing
    or requesting any such order, agreement, memorandum or similar
    document or undertaking.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>3.2.7&#160;&#160;<U>Knowledge as to
    Conditions</U>.</B>&#160;&#160;Glacier knows of no reason why
    the approvals, consents and waivers of governmental authorities
    referred to in <I>Section&#160;5.1 </I>cannot be obtained.
</DIV>

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    <BR>
    A-17
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>3.2.8&#160;&#160;<U>Litigation</U>.</B>&#160;&#160;Except as
    disclosed in Glacier&#146;s Reports, no material litigation,
    proceeding or controversy before any court or governmental
    agency is pending, and there is no pending claim, action or
    proceeding against Glacier or any of its Subsidiaries, which is
    reasonably likely, individually or in the aggregate, to have a
    Material Adverse Effect on them or to materially hinder or delay
    consummation of the Merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>3.2.9&#160;&#160;<U>Taxes</U>.</B>&#160;&#160;All tax returns
    and reports required by law to be filed by Glacier and its
    Subsidiaries have been duly filed, and all taxes, assessments,
    fees and other government charges upon Glacier or any of its
    Subsidiaries or upon any of their respective properties, assets,
    income or franchises that are due and payable have been paid.
    The federal income portion of such taxes have been paid in full
    as indicated in the tax returns of Glacier and its Subsidiaries
    for the past five years or adequate provision has been made for
    any such taxes on its balance sheet in accordance with GAAP. No
    material objections to returns or claims for additional taxes
    are being asserted with respect to federal or state tax returns
    of Glacier and its Subsidiaries for any prior years, except for
    such audits, objections or claims which are being contested in
    good faith, by appropriate proceedings and with establishment of
    appropriate reserves, and which have been disclosed in writing
    to the other parties to this Agreement. Except as specified in
    the foregoing sentence, in the past five years, there has been
    no past audit, objection to returns, or claim for additional
    taxes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>3.2.10&#160;&#160;<U>No Material Adverse
    Effect</U>.</B>&#160;&#160;Since December&#160;31, 2005,
    (i)&#160;Glacier and its Subsidiaries have conducted their
    respective businesses only in the ordinary and usual course of
    business, and (ii)&#160;there has not been any change in the
    financial condition (which includes, without limitation, the
    condition of assets, franchises, results of operations and
    prospects) that has had or may reasonably be expected to have a
    Material Adverse Effect on Glacier or any of its Subsidiaries.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>3.2.11&#160;&#160;<U>Completeness of
    Representations</U>.</B>&#160;&#160;No representation or
    warranty made by or with respect to Glacier or its Subsidiaries
    in this Agreement (or in the Schedules to this Agreement)
    contains any untrue statement of a material fact or omits to
    state a material fact necessary to make the statements contained
    in this Agreement (or in such Schedules) or in such
    representation or warranty not misleading.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">SECTION&#160;4.<BR>
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">CONDUCT AND
    TRANSACTIONS PRIOR TO CLOSING
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>4.1&#160;&#160;<U>Conduct of CDC&#146;s and CDC Banks&#146;
    Businesses Prior to Closing</U>.</B>&#160;&#160;CDC covenants
    that, from the date of this Agreement and prior to Closing:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>4.1.1&#160;&#160;<U>Availability of Books, Records and
    Properties</U>.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;With prior notice to CDC, subject to applicable law,
    the books, records, properties, contracts and documents of CDC
    and the CDC Banks will be available at all reasonable times to
    Glacier and its counsel, accountants and other representatives.
    Such items will be open for inspection, audit and direct
    verification of loan or deposit balances, collateral receipts
    and such other transactions or documentation as Glacier deems
    reasonably relevant to the Transaction. CDC will (and will cause
    the CDC Banks to) cooperate fully in such inspection and audit,
    and make available all information reasonably requested by or on
    behalf of Glacier.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;Upon request by Glacier, CDC and its Subsidiaries will
    request that any third parties involved in the preparation or
    review of the CDC Financial Statements or CDC Subsequent
    Financial Statements disclose to Glacier the work papers or any
    similar materials related to such financial statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>4.1.2&#160;&#160;<U>Ordinary and Usual
    Course</U>.</B>&#160;&#160;Without prior written consent of
    Glacier, subject to applicable law and except as required by the
    Commissioner, the FDIC, the OCC or the Federal Reserve (so long
    as Glacier receives prior written notice of such required
    action), CDC and each CDC Bank will conduct their respective
    business only in the ordinary and usual course and will not do
    any of the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;effect any stock split or other recapitalization with
    respect to CDC Common Stock or the shares of any CDC Bank,
    pledge or encumber in any way any shares of such capital stock;
    or grant any option for shares of such capital stock;
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-18
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;other than in the ordinary course of business,
    consistent with past practice, or as necessary to pay CDC
    Transaction Fee expenses consistent with this Agreement, declare
    or pay any dividend (excluding quarterly dividends to be paid in
    April 2006 and July 2006 of approximately $500,000 per quarter),
    or make any other distribution, either directly or indirectly,
    with respect to CDC Common Stock or the shares of any CDC Bank;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;acquire, sell, transfer, assign, encumber or
    otherwise dispose of any material assets or make any material
    commitment other than in the ordinary and usual course of
    business;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iv)&#160;solicit or accept deposit accounts of a different type
    from accounts previously accepted by the CDC Banks or at rates
    materially in excess of prevailing interest rates, or incur any
    indebtedness for borrowed money (excluding Fed Funds and Federal
    Home Loan&#160;Bank borrowings);
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (v)&#160;offer or make loans or other extensions of credit of a
    different type, or apply different underwriting standards, from
    those previously offered or applied by the CDC Banks, or offer
    or make a new loan or extension of credit in an amount greater
    than $1&#160;million without prior consultation with Glacier;
    provided, that it is acknowledged and agreed that renewals of
    loans to existing customers shall not require prior consultation
    with Glacier;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (vi)&#160;except for the transfer of the Leased Real Property,
    cancellation of Leases, foreclosures and satisfaction of
    obligations as contemplated by <I>Section&#160;4.1.12</I>,
    acquire an ownership interest or a leasehold interest in any
    real property, except those disclosed in
    <U>Schedule&#160;3.1.6</U>, without making an appropriate
    environmental evaluation in advance of obtaining such interest
    and without providing to Glacier such evaluation and at least
    30&#160;days&#146; advance notice;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (vii)&#160;enter into, renew, or terminate any contracts calling
    for a payment by any of them of more than $25,000 (including
    real property leases and data or item processing agreements)
    with or for a term of one-year or more, except for its contracts
    of deposit and agreements to lend money not otherwise restricted
    under this Agreement and (1)&#160;entered into in the ordinary
    course of business, consistent with past practices, and
    (2)&#160;providing for not less (in the case of loans) or
    materially more (in the case of deposits) than prevailing market
    rates of interest;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (viii)&#160;enter into or amend any contract (other than
    contracts for deposits or agreements to lend money not otherwise
    restricted by this Agreement) calling for a payment by any of
    them of more than $25,000, unless the contract may be terminated
    without cause or penalty upon 30&#160;days notice or less;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ix)&#160;enter into any personal services contract with any
    person or firm outside the ordinary course of business, except
    contracts, agreements, or arrangements for legal, accounting,
    consulting, investment advisory, or tax services entered into to
    directly facilitate the Merger and to facilitate any divestiture
    or market redefinition proceedings related to the Merger;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (x)&#160;(A)&#160;sell any securities, whether held for
    investment or sale, other than in the ordinary course of
    business or sell any securities, whether held for investment or
    sale, even in the ordinary course of business, if the aggregate
    gain or loss realized from all sales after the Execution Date
    would be more than $25,000 or (B)&#160;transfer any investment
    securities between portfolios of securities available for sale
    and portfolios of securities to be held to maturity;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (xi)&#160;amend its Articles of Incorporation, Bylaws, or other
    formation agreements, or convert its charter or form of entity;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (xii)&#160;implement or adopt any material changes in its
    operations, policies, or procedures, including loan loss reserve
    policies, unless the changes are requested by Glacier or are
    necessary or advisable, on the advice of legal counsel, to
    comply with applicable laws, regulations, or regulatory policies;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (xiii)&#160;implement or adopt any change in its accounting
    principles, practices or methods, other than as may be required
    (1)&#160;by GAAP, (2)&#160;for tax purposes, or (3)&#160;to take
    advantage of any beneficial tax or accounting methods;
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-19
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (xiv)&#160;other than in accordance with binding commitments
    existing on the Execution Date and that have been disclosed to
    Glacier, make any capital expenditures in excess of
    $25,000&#160;per project or related series of projects or
    $50,000 in the aggregate;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (xv)&#160;enter into any other material transaction or make any
    material expenditure other than in the ordinary and usual course
    of its business except for expenses reasonably related to
    completion of the Merger;&#160;or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (xvi)&#160;take any action which would materially and adversely
    affect or delay their ability or the ability of Glacier and
    Holdings to obtain any necessary approvals, consents or waivers
    of any governmental authority required for the Merger or to
    perform in all material respects their respective covenants and
    agreements under this Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>4.1.3&#160;&#160;<U>Continuing Representation and
    Warranty</U>.</B>&#160;&#160;Neither CDC nor any of its
    Subsidiaries will do or cause to be done anything that would
    cause any representation or warranty in <I>Section&#160;3.1</I>
    to be untrue or inaccurate if made at Closing, except as
    otherwise contemplated or required by this Agreement or
    consented to in writing by Glacier.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>4.1.4&#160;&#160;<U>Maintenance of
    Properties</U>.</B>&#160;&#160;CDC and each CDC Bank will in all
    material respects maintain their respective properties and
    equipment (and related insurance or its equivalent) in
    accordance with good business practice.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>4.1.5&#160;&#160;<U>Preservation of Business
    Organization</U>.</B>&#160;&#160;CDC and each CDC Bank will use
    its commercially-reasonable efforts to:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;Preserve its respective business organization.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;Retain the services of management and employees
    consistent with such program for consolidation of redundant
    employment positions resulting from the Merger as will be
    developed in cooperation with Glacier.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;Preserve the goodwill of suppliers, customers and
    others with whom CDC and the CDC Banks have business relations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>4.1.6&#160;&#160;<U>Senior
    Management</U>.</B>&#160;&#160;Except as otherwise provided in
    this Agreement and excluding resignations, without prior
    consultation with Glacier, CDC will not, and will cause the CDC
    Banks not to, make any change with respect to present management
    personnel having the rank of vice-president or higher.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>4.1.7&#160;&#160;<U>Compensation</U>.</B>&#160;&#160;With the
    exception of stay bonuses paid to certain employees of CDC and
    the CDC Banks not to exceed an aggregate of $1,200,000 (the
    &#147;<U>Stay Bonuses</U>&#148;). CDC will not, and will cause
    the CDC Banks not to, permit any increase in the current or
    deferred compensation payable or to become payable by CDC or
    such bank to any of its directors, officers, employees, agents
    or consultants other than normal increments in compensation in
    accordance with CDC&#146;s and such bank&#146;s established
    policies with respect to the timing and amounts of such
    increments. Without the prior written approval of Glacier, CDC
    will not, and will cause each CDC Bank not to, commit to,
    execute or deliver any employment agreement with any party not
    terminable without expense with two weeks notice.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>4.1.8&#160;&#160;<U>Audited Balance
    Sheet</U>.</B>&#160;&#160;CDC will cause to be conducted, at
    CDC&#146;s sole cost and expense, an audit of its consolidated
    balance sheet dated as of February&#160;28, 2006 by BKD, LLP,
    which is registered as an independent certified public
    accounting firm with the PCAOB, that satisfies all applicable
    rules and regulations promulgated by the SEC in order for such
    audited balance sheet to be included in the
    <FONT style="white-space: nowrap">Form&#160;S-4</FONT>
    Registration Statement contemplated by <I>Section&#160;4.2.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>4.1.9&#160;&#160;<U>Update of Financial
    Statements</U>.</B>&#160;&#160;CDC will deliver unaudited
    balance sheets and related statements of income and
    shareholders&#146; equity for each month ending after the
    Execution Date and before Closing or the Termination Date, as
    the case may be, within 15&#160;days after each such month-end.
    The Subsequent CDC Financial Statements:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;will be prepared from the books and records of CDC and
    its Subsidiaries;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;will present fairly the financial position and
    operating results of CDC and its Subsidiaries at the times
    indicated and for the periods covered;
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-20
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;will be prepared in accordance with GAAP (except for
    the absence of notes and exceptions from GAAP identified in
    <I>Section&#160;3.1.5</I>) and with the regulations promulgated
    by applicable regulatory authorities, to the extent then
    applicable;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iv)&#160;will reflect all liabilities, contingent or otherwise,
    of CDC and its Subsidiaries on the respective dates and for the
    respective periods covered, except for liabilities: (1)&#160;not
    required to be so reflected in accordance with GAAP or
    (2)&#160;not significant in amount. All contingent liabilities
    not recorded on the Subsequent CDC Financial Statements will be
    disclosed in writing to Glacier.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>4.1.10&#160;&#160;<U>Update
    Schedules</U>.</B>&#160;&#160;From the date of this Agreement
    until Closing, CDC will promptly revise and supplement the
    Schedules to this Agreement prepared by or on behalf of CDC or
    its Subsidiaries to ensure that such Schedules remain accurate
    and complete. Notwithstanding anything to the contrary contained
    herein, supplementation of such Schedules following the
    execution of this Agreement will not be deemed a modification of
    CDC&#146;s representations or warranties contained in this
    Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>4.1.11&#160;&#160;<U>Acquisition
    Proposal</U>.</B>&#160;&#160;CDC agrees that neither it nor any
    of its Subsidiaries will, and CDC will direct and use its best
    efforts to cause its and its Subsidiaries&#146; directors,
    officers, employees, agents and representatives (including,
    without limitation, any investment banker, attorney or
    accountant retained by it or any of its Subsidiaries) not to,
    initiate, solicit, encourage or take any other action to
    facilitate any inquiries or the making of any proposal or offer
    (including, without limitation, any proposal or offer to
    shareholders of CDC)&#160;with respect to an Acquisition Event
    (any such proposal or offer being hereinafter referred to as an
    &#147;<U>Acquisition Proposal</U>&#148;) or, except to the
    extent legally required for the discharge by the board of
    directors of its fiduciary duties as advised in writing by such
    board&#146;s counsel, engage in any negotiations concerning, or
    provide any confidential information or data to any Person
    relating to, an Acquisition Proposal, or otherwise facilitate
    any effort or attempt to make or implement an Acquisition
    Proposal. CDC and its Subsidiaries will immediately cease and
    cause to be terminated any existing activities, discussions or
    negotiations with any parties conducted heretofore with respect
    to any of the foregoing. CDC will take the necessary steps to
    inform the appropriate individuals or entities referred to in
    the first sentence hereof of the obligations undertaken in this
    <I>Section&#160;4.1.11</I>. CDC will notify Glacier immediately
    if any such inquiries or proposals are received by, any such
    information is requested from, or any such negotiations are
    sought to be initiated or continued with CDC or its Subsidiaries.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>4.1.12&#160;&#160;<U>Status of Title/Leasehold
    Interests</U>.</B>&#160;&#160;CDC will use its reasonable best
    efforts to provide Glacier, no later than 30&#160;days after the
    Execution Date, title reports for the Real Property issued by
    title insurance companies reasonably satisfactory to the parties
    (the &#147;<U>Title&#160;Companies</U>&#148;). These title
    reports must show the current status of title to the Real
    Property. Within 15&#160;days after the date on which CDC
    delivers all of the title reports to Glacier for its review,
    Glacier will inform CDC in writing whether, and in what manner,
    it objects to any of the exceptions to title shown on any of the
    title reports. CDC will, within 10&#160;days of the date on
    which it receives the written notice of objection from Glacier,
    inform Glacier if there are any objections that it is unable to
    remove at or prior to Closing. CDC will not, however, be
    obligated to remove exceptions that are non-monetary exceptions
    that do not prohibit or materially interfere with the use of the
    properties as bank branch locations. At Closing, if requested by
    Glacier, CDC will cause the Title&#160;Companies to provide
    Glacier with standard coverage title insurance policies issued
    with respect to each of the Properties, in an amount
    commensurate with the value of each such Property as agreed upon
    by Glacier and CDC, dated as of the Effective Date, insuring fee
    title in Glacier or such subsidiary of Glacier, as so designated
    by Glacier, and that each such Real Property is unencumbered by
    any Liens, other than Liens for taxes not yet delinquent and
    other exceptions to title as set forth in the title reports as
    approved by Glacier.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>4.1.13&#160;&#160;<U>Directors&#146; and Officers&#146;
    Liability</U>.</B>&#160;&#160;Before the Effective Date, CDC
    will notify its directors&#146; and officers&#146; liability
    insurers of the Merger and of all pending or, to CDC&#146;s
    Knowledge, threatened claims, actions, suits, proceedings or
    investigations asserted or claimed against any Person entitled
    to indemnification pursuant to <I>Section&#160;6.4</I> and known
    to CDC, or circumstances reasonably deemed by Glacier to be
    likely to give rise thereto, in accordance with terms and
    conditions of the applicable policies.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>4.1.14&#160;&#160;<U>Review of Loans</U>.</B>&#160;&#160;CDC
    and its Subsidiaries will permit Glacier to conduct an
    examination of the CDC Banks&#146; loans to determine credit
    quality and the adequacy of such banks&#146; ALLL. Glacier will
    have continued access to such loans through Closing to update
    the examination. At Glacier&#146;s reasonable request, the CDC
    Banks will provide Glacier with current reports updating the
    information set forth in <U>Schedule&#160;3.1.16</U>.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-21
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>4.1.15&#160;&#160;<U>Conduct of Glacier&#146;s Business
    Before Closing</U>.</B>&#160;&#160;Glacier will:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;provide CDC with prompt written notice of any events,
    individually or in the aggregate, that could have a Material
    Adverse Effect with respect to Glacier;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;conduct, and cause its Subsidiaries to conduct, their
    respective businesses in compliance with all material
    obligations and duties imposed on them by applicable federal and
    state laws;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;maintain all books and records of it and its
    Subsidiaries, including all financial statements, in accordance
    with such accounting principles and practices consistent with
    those used for the Glacier Financial Statements, except for
    changes in such principles and practices required under GAAP.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>4.2&#160;&#160;<U>Registration Statement</U>.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>4.2.1&#160;&#160;<U>Preparation of Registration
    Statement</U>.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;A Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;S-4</FONT>
    (together with any amendments or supplements, the
    &#147;<U>Registration Statement</U>&#148;) will be filed by
    Glacier with the SEC under the Securities Act for registration
    of the Glacier Shares to be issued in the Merger, and the
    parties will prepare a related prospectus/proxy statement
    (&#147;<U>Prospectus/Proxy Statement</U>&#148;) to be mailed,
    together with any amendments and supplements thereto, to
    CDC&#146;s shareholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;The parties will cooperate with each other in
    preparing the Registration Statement and Prospectus/Proxy
    Statement, and will use their best efforts to obtain the
    clearance of the SEC, any appropriate state securities
    regulators and any other required regulatory approvals, to issue
    the Prospectus/Proxy Statement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;Nothing will be included in the Registration
    Statement or the Prospectus/Proxy Statement or any proxy
    solicitation materials with respect to any party to this
    Agreement unless approved by that party, which approval will not
    be unreasonably withheld. When the Registration Statement
    becomes effective, and at all times subsequent to such
    effectiveness (up to and including the date of the CDC Meeting),
    all information set forth in the Registration Statement that is
    or to be furnished by or on behalf of Glacier relating to
    Glacier and by or on behalf of CDC relating to CDC,
    (1)&#160;will comply in all material respects with the
    provisions of the Securities Act and any other applicable
    statutory or regulatory requirements, and (2)&#160;will not
    contain any untrue statement of a material fact or omit to state
    a material fact that is required to be stated or necessary to
    make the statements in the Registration Statement not
    misleading; <U>provided</U>, however, that in no event will any
    party be liable for any untrue statement of a material fact or
    omission to state a material fact in the Registration Statement
    where such statement or omission, as the case may be, was made
    in reliance upon, and in conformity with, written information
    concerning another party furnished by or on behalf of such other
    party specifically for use in the Registration Statement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iv)&#160;Glacier will pay all fees and costs associated with
    the preparation by Glacier&#146;s counsel (and other
    professional advisors) and the filing of the Registration
    Statement. CDC will pay all costs associated with its review and
    preparation of the Registration Statement and the
    Prospectus/Proxy Statement. CDC will pay the costs associated
    with the printing and mailing of the Prospectus/Proxy Statement
    to its shareholders and any other direct costs incurred by it in
    connection with the Prospectus/Proxy Statement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>4.2.2&#160;&#160;<U>Submission to Shareholders</U>.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;Glacier and CDC will submit the Prospectus/Proxy
    Statement to, and will use their best efforts in good faith to
    obtain the prompt approval of the Prospectus/Proxy Statement by,
    all applicable regulatory authorities. The parties will provide
    each other with copies of such submissions for review.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;CDC will promptly take the actions necessary in
    accordance with applicable law and its Articles of Incorporation
    and Bylaws to convene a shareholders&#146; meeting to consider
    the approval of this Agreement and to authorize the transactions
    contemplated by this Agreement (such meeting and any adjournment
    or postponement thereof, the &#147;<U>CDC Meeting</U>&#148;).
    The CDC Meeting will be held on the earliest practical date
    after the date the Prospectus/Proxy Statement may first be sent
    to CDC&#146;s shareholders without objection by applicable
    governmental authorities. CDC&#146;s board of directors and
    officers will recommend approval of the Merger to CDC&#146;s
    shareholders.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-22
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>4.3&#160;&#160;<U>Affiliate Letters</U>.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>4.3.1&#160;&#160;<U>Affiliate
    List</U>.</B>&#160;&#160;Certain persons may be deemed
    &#147;affiliates&#148; of CDC under Rule&#160;145 of the
    Securities Act. Set forth in <U>Schedule&#160;4.3.1</U> is a
    list of names and addresses of CDC&#146;s &#147;affiliates&#148;
    with respect to the Merger within the meaning of Rule&#160;145.
    Before the date that the Registration Statement is filed with
    the SEC, CDC will deliver, or cause to be delivered, to Glacier
    a letter, dated as of the date of its delivery and in the form
    attached as <U>Exhibit&#160;A</U>, from each of these
    &#147;affiliates&#148; and from any additional person who
    becomes an &#147;affiliate&#148; before the Effective Date and
    after the Execution Date of this Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>4.3.2&#160;&#160;<U>Restrictive
    Legends</U>.</B>&#160;&#160;Glacier will place a restrictive
    legend on all certificates representing Glacier Shares to be
    received by an &#147;affiliate&#148; so as to preclude their
    transfer or disposition in violation of the affiliate letters.
    Glacier will also instruct its transfer agent not to permit the
    transfer of those shares and to take any other steps reasonably
    necessary to ensure compliance with Rule&#160;145.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>4.4&#160;&#160;<U>Submission to Regulatory
    Authorities</U>.</B>&#160;&#160;Representatives of Glacier will
    prepare and file with applicable regulatory agencies,
    applications for approvals, waivers or other actions deemed
    necessary or desirable, in the opinion of counsel, in order to
    consummate the Merger. Glacier will provide copies of such
    applications for review by CDC prior to their submission to the
    applicable regulatory authorities. These applications are
    expected to include:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;An application to the Federal Reserve and related
    filings regarding the Merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;An application to the Federal Reserve and related
    filings regarding the formation of Holdings.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;Filings and coordination with the offices of the
    Commissioner and Montana Secretary of State with respect to the
    Merger and the formation of Holdings.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>4.5&#160;&#160;<U>Public
    Announcements</U>.</B>&#160;&#160;Subject to written advice of
    legal counsel with respect to legal requirements relating to
    public disclosure of matters related to the subject matter of
    this Agreement, the timing and content of any announcements,
    press releases or other public statements concerning the Merger
    will occur upon, and be determined by, the mutual consent of CDC
    and Glacier.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>4.6&#160;&#160;<U>Consents</U>.</B>&#160;&#160;Each party to
    this Agreement will use its best efforts to obtain the timely
    consent or approval of any Person whose consent or approval is
    required in order to permit Glacier or Holdings and CDC to
    consummate the Merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>4.7&#160;&#160;<U>Further Actions</U>.</B>&#160;&#160;The
    parties to this Agreement will use their best efforts in good
    faith to make all such arrangements, do or cause to be done all
    such acts and things, and execute and deliver all such
    certificates and other instruments and documents as may be
    reasonably necessary or appropriate in order to consummate the
    Merger promptly.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>4.8&#160;&#160;<U>Notice</U>.</B>&#160;&#160;The parties will
    provide each other with prompt written notice of:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;Any events that, individually or in the aggregate, can
    reasonably be expected to have a Material Adverse Effect with
    respect to them.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;The commencement of any proceeding against any one or
    more of them by or before any court or governmental agency that,
    individually or in the aggregate, can reasonably be expected to
    have a Material Adverse Effect with respect to any one or more
    of them.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;In the case of CDC and its Subsidiaries, the
    acquisition of an ownership or leasehold interest in any real
    property (except as disclosed in <U>Schedule&#160;3.1.6</U>.),
    as specified in <I>Section&#160;4.1.2.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>4.9&#160;&#160;<U>Confidentiality</U>.</B>&#160;&#160;Subject
    to the requirements of law, each party will keep confidential,
    and will exercise its best efforts to cause its representatives
    to keep confidential, all information and documents obtained
    pursuant to this Agreement unless such information (i)&#160;is
    required by law to be disclosed, (ii)&#160;becomes available to
    such party from other sources not bound by a confidentiality
    obligation, (iii)&#160;is disclosed with prior written approval
    of the party to which such information pertains or is disclosed
    in a legal action between the parties relating to the Merger, or
    (iv)&#160;is or becomes public without fault of the subject
    party. If this Agreement is terminated or the Merger otherwise
    fails to be consummated, each party to this Agreement will
    promptly (i)&#160;return to the other all confidential
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-23
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    documents obtained from them and (ii)&#160;not use or disclose
    any nonpublic information obtained under this Agreement or in
    connection with the Merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>4.10&#160;&#160;<U>Availability of Glacier&#146;s Books,
    Records and Properties</U>.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;Glacier will make its books, records, properties,
    contracts and documents available during business hours with
    reasonable advance notice to CDC and its counsel, accountants
    and other representatives. These items will be open for
    inspection, audit and direct verification of loan or deposit
    balances and collateral receipts. Glacier will cooperate fully
    in any such inspection, audit, or direct verification
    procedures, and will make available all information reasonably
    required by or on behalf of Glacier.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;At CDC&#146;s request, Glacier will request any third
    parties involved in the preparation or review of
    (1)&#160;Glacier Financial Statements or (2)&#160;any audits of
    Glacier&#146;s operations, loan portfolios or other assets, to
    disclose to CDC the work papers or any similar materials related
    to these items.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>4.11&#160;&#160;<U>Blue Sky
    Filings</U>.</B>&#160;&#160;Glacier will use its best efforts to
    obtain, prior to the effective date of the Registration
    Statement, any necessary state securities laws or &#147;Blue
    Sky&#148; permits and approvals.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>4.12&#160;&#160;<U>Tax Treatment</U>.</B>&#160;&#160;Neither
    Glacier and its Subsidiaries nor CDC and its Subsidiaries will
    take or cause to be taken any action that would or could
    reasonably be expected to prevent the Merger from qualifying as
    a reorganization under Section&#160;368(a) of the Code.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>4.13&#160;&#160;<U>Completion of Distribution of
    Securities</U>.</B>&#160;&#160;If Glacier intends to fund all or
    part of the cash portion of the Merger Consideration by selling
    shares of its equity securities in a private placement, an
    offering registered under the Securities Act, or otherwise
    (collectively, a &#147;<U>Distribution</U>&#148;), it shall
    complete such Distribution before the commencement of the
    Determination Period.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>4.14&#160;&#160;<U>Best Efforts</U>.</B>&#160;&#160;Subject
    to the terms and conditions of this Agreement, each party will
    use its reasonable best efforts in good faith to take, or cause
    to be taken, all actions, and to do, or cause to be done, all
    things necessary, proper or desirable, or advisable under
    applicable laws, so as to permit consummation of the Merger as
    early as possible, and to otherwise enable consummation of the
    transactions contemplated by this Agreement, subject to any
    delays resulting from SEC review or bank regulatory processing.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">SECTION&#160;5.<BR>
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">APPROVALS
    AND CONDITIONS
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>5.1&#160;&#160;<U>Required Approvals</U>.</B>&#160;&#160;The
    obligations of the parties to this Agreement are subject to the
    approval of this Agreement and the Merger by all appropriate
    regulatory agencies having jurisdiction with respect thereto;
    <U>provided</U>, <U>however</U>, that no such consent or
    approval will have imposed any condition or requirement not
    normally imposed in such transactions that, in the opinion of
    Glacier, would deprive Glacier of the material economic or
    business benefits of the Merger and,
    <U>provided</U>&#160;further, that it is acknowledged and agreed
    that the failure of the Federal Reserve Board to approve the
    existence of the Lewistown branch of Western Security and
    FNB-Lewistown in the same Lewistown marketplace shall not be a
    condition to close.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>5.2&#160;&#160;<U>Conditions to Obligations of
    Glacier</U>.</B>&#160;&#160;All obligations of Glacier pursuant
    to this Agreement are subject to satisfaction of the following
    conditions at or before Closing:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>5.2.1&#160;&#160;<U>Representations and
    Warranties</U>.</B>&#160;&#160;The representations and
    warranties of CDC contained in this Agreement or in any
    certificate or other instrument delivered in connection with
    this Agreement that are not qualified as to materiality will be
    true and correct in all material respects at Closing, and the
    representations and warranties of CDC contained in this
    Agreement or in any certificate or other instrument delivered in
    connection with this Agreement that are qualified as to
    materiality will be true and correct at Closing, all with the
    same force and effect as though such representations and
    warranties had been made on and as of Closing (except to the
    extent that such representations and warranties are by their
    express provisions made as of a specified date, in which case
    such representations and warranties will be true and correct in
    all material respects or true and correct, as the case may be,
    as of such date). CDC will have delivered to Glacier a
    certificate to that effect, executed by a duly authorized
    officer of CDC and dated as of Closing.
</DIV>

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    <BR>
    A-24
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>5.2.2&#160;&#160;<U>Compliance</U>.</B>&#160;&#160;CDC will
    have performed and complied, and will have cause the CDC Banks
    to perform and comply, in all material respects with all terms,
    covenants and conditions of this Agreement on or before Closing.
    CDC will have delivered to Glacier a certificate to that effect,
    executed by a duly authorized officer of CDC and dated as of
    Closing.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>5.2.3&#160;&#160;<U>Transaction Fees</U>.</B>&#160;&#160;CDC
    Transaction Fees have not exceeded $810,000. &#147;<U>CDC
    Transaction Fees</U>&#148; means all costs and expenses incurred
    by CDC or owed or paid by CDC to investment advisors,
    independent accountants, legal counsel, printers and other
    professional advisors in connection with the preparation,
    negotiation and execution of this Agreement and related
    documents and the consummation of the Merger, including the fees
    paid to BKD, LLP in connection with the audit described in
    <I>Section&#160;4.1.8</I>; <U>provided</U>, however, that the
    fees of BKD, LLP to be included in CDC Transaction Fees shall
    not exceed $40,000.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>5.2.4&#160;&#160;<U>Transaction Fees
    Statements</U>.</B>&#160;&#160;CDC has delivered to Glacier a
    statement, in a form reasonably satisfactory to Glacier, from
    each third party to whom CDC has paid or owes CDC Transaction
    Fees. Each statement must set forth the total costs and expenses
    paid or owing to the third party in connection with the
    consummation of the Merger. CDC has delivered to Glacier its
    certificate, executed by a duly authorized officer of CDC and
    dated as of Closing, stating the total CDC Transaction Fees and
    certifying that CDC is in compliance with <I>Section&#160;5.2.3
    </I>and this <I>Section&#160;5.2.4.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>5.2.5&#160;&#160;<U>No Material Adverse
    Effect</U>.</B>&#160;&#160;Since December&#160;31, 2005, there
    will have been no material damage, destruction or loss (whether
    or not covered by insurance) and no other event, individually or
    in the aggregate, constituting a Material Adverse Effect with
    respect to CDC or the CDC Banks.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>5.2.6&#160;&#160;<U>Financial
    Condition</U>.</B>&#160;&#160;The following will be true and the
    certificate of CDC referred to in <I>Section&#160;5.2.2 </I>will
    so state:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;In the opinion of the Executive Officers of CDC and the
    CDC Banks, each CDC Bank&#146;s ALLL, as adjusted for any
    increases or charge-offs reasonably required by BKD, LLP or
    Glacier, is adequate to absorb such bank&#146;s anticipated loan
    losses.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;After giving effect to the payment of all CDC
    Transaction Fees and the payoff of notes receivable from
    CDC&#146;s stockholders as set forth in the CDC Financial
    Statements (but excluding the impact of any increase in ALLL or
    charge-offs or other reserves reasonably required by BKD, LLP or
    Glacier between March&#160;1, 2006 and Closing), the Capital of
    CDC will not be less than $36.1&#160;million at Closing.
    &#147;Capital&#148; for purposes of this <I>Section&#160;5.2.6
    </I>means CDC&#146;s capital stock, surplus and retained
    earnings determined in accordance with GAAP, except as described
    on <U>Schedule&#160;3.1.5</U>, applied on a consistent basis for
    financial institutions, without giving any effect to accumulated
    other comprehensive income or loss as reported on the CDC
    consolidated balance sheet.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;The aggregate deposits of the CDC Banks, excluding
    (a)&#160;certificates of deposit (or equivalents) of $100,000 or
    more and (b)&#160;brokered deposits, will not be less than
    $300&#160;million at Closing.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>5.2.7&#160;&#160;<U>No Governmental
    Proceedings</U>.</B>&#160;&#160;No action or proceeding will
    have been commenced or threatened by any governmental agency to
    restrain or prohibit or invalidate the Merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>5.2.8&#160;&#160;<U>Opinion of
    Counsel</U>.</B>&#160;&#160;Counsel to CDC has delivered to
    Glacier a legal opinion in form and substance reasonably
    acceptable to CDC and Glacier.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>5.2.9&#160;&#160;&#160;<U>Real Property
    Matters</U>.</B>&#160;&#160;Glacier has received the irrevocable
    commitments by the Title&#160;Companies to issue the policies
    required under <I>Section&#160;4.1.12.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>5.2.10&#160;&#160;<U>Corporate and Shareholder
    Action</U>.</B>&#160;&#160;Each of the following will have
    approved the Merger:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;The Boards of Directors of CDC;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;The shareholders of CDC.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>5.2.11&#160;&#160;<U>Resignation of
    Directors</U>.</B>&#160;&#160;The directors of CDC will have
    tendered their written resignations from the Board of Directors,
    to be effective upon consummation of the Merger.
</DIV>

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    <BR>
    A-25
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>5.2.12&#160;&#160;<U>Tax Opinion</U>.</B>&#160;&#160;Glacier
    has, at Glacier&#146;s expense, obtained from Graham&#160;&#38;
    Dunn PC and delivered to CDC, an opinion addressed to CDC, the
    Trust, the Foundation and Glacier (in form and substance
    reasonably satisfactory to CDC and its counsel, and subject to
    reasonable limitations, conditions and assumptions)
    substantially to the effect that:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;The Merger will qualify as a reorganization within the
    meaning of IRC Section&#160;368(a)(1)(A).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;A holder of CDC Common Stock who receives solely cash
    in exchange for its shares of CDC Common Stock, and who owns
    those shares as a capital asset and does not actually or
    constructively own shares of Glacier after the Merger, will
    recognize capital gain or loss in an amount equal to the
    difference between the amount of cash received in the exchange
    and the holder&#146;s aggregate tax basis in its shares of CDC
    Common Stock. The gain or loss will be long-term capital gain or
    loss if the shares of CDC Common Stock were held for more than
    one year.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;A holder of CDC Common Stock who receives solely
    Glacier common stock in exchange for its shares of CDC Common
    Stock will not recognize gain or loss in the exchange (except in
    respect of cash received in lieu of any fractional share of
    Glacier common stock).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iv)&#160;A holder of CDC Common Stock who receives both Glacier
    common stock and cash consideration in exchange for his, her or
    its shares of CDC Common Stock will recognize gain, but not
    loss, in an amount equal to the lesser of <I>(i)&#160;</I> the
    excess of the sum of the fair market value of Glacier common
    stock and cash received by the holder in the exchange over the
    holder&#146;s tax basis in the CDC Common Stock surrendered in
    the exchange, and <I>(ii)&#160;</I>the amount of cash (excluding
    any cash received in lieu of fractional shares) received by the
    holder in the exchange. Any gain recognized by a holder who owns
    his, her or its shares of CDC Common Stock as a capital asset
    will be treated as capital gain if the exchange is, with respect
    to the holder, either &#147;substantially disproportionate&#148;
    or &#147;not essentially equivalent to a dividend,&#148; each
    within the meaning of IRC Section&#160;302(b). The gain will be
    long-term capital gain if the shares of CDC Common Stock were
    held for more than one year.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The exchange will be &#147;substantially disproportionate&#148;
    with respect to a holder of CDC Common Stock if, immediately
    after the Merger, the holder owns, actually and constructively,
    less than 50% of the total combined voting power of all classes
    of Glacier stock entitled to vote and less than 80% of the
    percentage of Glacier common stock actually and constructively
    owned by the holder immediately before the Merger. For purposes
    of the foregoing determination, the holder is treated as if
    <I>(i)&#160;</I>all its shares of CDC Common Stock were first
    exchanged in the Merger for shares of Glacier common stock, and
    <I>(ii)&#160;</I>a portion of those shares of Glacier common
    stock were then redeemed for the cash actually received in the
    Merger (&#147;hypothetical exchange and redemption&#148;).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Whether the exchange will be &#147;not essentially equivalent to
    a dividend&#148; with respect to a holder of CDC Common Stock
    will depend upon the holder&#146;s particular facts and
    circumstances. At minimum, however, there must be a
    &#147;meaningful reduction&#148; in the holder&#146;s actual and
    constructive percentage ownership of Glacier Shares as a result
    of the hypothetical exchange and redemption. The Internal
    Revenue Service has ruled that a reduction in the stock
    ownership of a minority shareholder who owns a small number of
    shares in a publicly held corporation, and who exercises no
    control over the affairs of the corporation, will be treated as
    a meaningful reduction.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (v)&#160;The aggregate tax basis of Glacier common stock
    received by a holder of CDC Common Stock in the Merger (before
    reduction by the basis in any fractional share that the holder
    is deemed to receive and exchange for cash) will be equal to the
    aggregate tax basis of the holder in the shares of CDC Common
    Stock surrendered in the Merger, increased by the amount of any
    taxable gain recognized by the holder (other than gain
    recognized as a result of cash received in lieu of a fractional
    share), and decreased by the amount of any cash received in the
    Merger (other than cash received in lieu of a fractional share).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (vi)&#160;The holding period of Glacier common stock received by
    a holder of CDC Common Stock in the Merger will include the
    period during which the shares of CDC Common Stock surrendered
    in the exchange were held as a capital asset as of the date of
    the Merger.
</DIV>

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    <BR>
    A-26
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (vii)&#160;If a holder of CDC Common Stock receives cash in lieu
    of a fractional share interest in such common stock in the
    Merger, the holder will be treated as having received a
    fractional share of Glacier common stock and having immediately
    exchanged that fractional share for cash in a taxable redemption
    by Glacier.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>5.2.13&#160;&#160;<U>Affiliate
    Letters</U>.</B>&#160;&#160;Glacier has received the affiliate
    list and letters specified in <I>Section&#160;4.3.1.</I>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>5.2.14&#160;&#160;<U>Registration
    Statement</U>.</B>&#160;&#160;The Registration Statement, as it
    may have been amended, required in connection with the Glacier
    Shares, and as described in <I>Section&#160;4.2</I>, has become
    effective, and no stop order suspending the effectiveness of
    such Registration Statement has been issued or remains in
    effect, and no proceedings for that purpose have been initiated
    or threatened by the SEC, the basis for which still exists.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>5.2.15&#160;&#160;<U>Cash Paid</U>.</B>&#160;&#160;The
    aggregate amount of the cash to be paid for shares of CDC Common
    Stock, including Proposed Dissenting Shares, will not exceed
    sixty percent (60%) of the Total Consideration, as it may be
    adjusted under this Agreement.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>5.2.16&#160;&#160;<U>No Change in Loan
    Review</U>.</B>&#160;&#160;CDC has provided to Glacier the
    reports reasonably requested by Glacier under
    <I>Section&#160;4.1.14</I>, and neither these reports nor any
    examinations conducted by Glacier under <I>Section&#160;4.1.14
    </I>reveal a change in either: (i)&#160;the information set
    forth in <U>Schedule&#160;3.1.16</U> or (ii)&#160;information
    revealed during Glacier&#146;s previous examinations of the CDC
    Banks&#146; loans, which change constitutes a Material Adverse
    Effect.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>5.3&#160;&#160;<U>Conditions to Obligations of
    CDC</U>.</B>&#160;&#160;All obligations of CDC pursuant to this
    Agreement are subject to satisfaction of the following
    conditions at or before Closing:
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>5.3.1&#160;&#160;<U>Representations and
    Warranties</U>.</B>&#160;&#160;The representations and
    warranties of Glacier contained in this Agreement or in any
    certificate or other instrument delivered in connection with
    this Agreement that are not qualified as to materiality will be
    true and correct in all material respects at Closing, and the
    representations and warranties of Glacier contained in this
    Agreement or in any certificate or other instrument delivered in
    connection with this Agreement that are qualified as to
    materiality will be true and correct at Closing, all with the
    same force and effect as though such representations and
    warranties had been made on and as of Closing (except to the
    extent that such representations and warranties are by their
    express provisions made as of a specified date, in which case
    such representations and warranties will be true and correct in
    all material respects or true and correct, as the case may be,
    as of such date). Glacier will have delivered to CDC a
    certificate to that effect, executed by a duly authorized
    officer of Glacier and dated as of Closing.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>5.3.2&#160;&#160;<U>Compliance</U>.</B>&#160;&#160;Glacier
    will have performed and complied with all terms, covenants and
    conditions of this Agreement on or before Closing. Glacier will
    have delivered to CDC a certificate to that effect, executed by
    a duly authorized officer of Glacier and dated as of Closing.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>5.3.3&#160;&#160;<U>No Governmental
    Proceedings</U>.</B>&#160;&#160;No action or proceeding will
    have been commenced or threatened by any governmental agency to
    restrain or prohibit or invalidate the Merger.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>5.3.4&#160;&#160;<U>No Material Adverse
    Effect</U>.</B>&#160;&#160;Since December&#160;31, 2005, there
    will have been no material damage, destruction or loss (whether
    or not covered by insurance) and no other event, individually or
    in the aggregate, constituting a Material Adverse Effect with
    respect to Glacier.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>5.3.5&#160;&#160;<U>Tax Opinion</U>.</B>&#160;&#160;The tax
    opinion specified in <I>Section&#160;5.2.12 </I>has been
    delivered to CDC.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>5.3.6&#160;&#160;<U>Corporate Action</U>.</B>&#160;&#160;The
    Board of Directors of Glacier will have approved the Merger:
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>5.3.7&#160;&#160;<U>Registration
    Statement</U>.</B>&#160;&#160;The Registration Statement will
    have become effective as specified in <I>Section&#160;5.2.14.</I>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>5.3.8&#160;&#160;<U>Blue Sky
    Filings</U>.</B>&#160;&#160;Glacier has received the state
    securities laws or &#147;Blue Sky&#148; permits and approvals
    specified in <I>Section&#160;4.11.</I>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>5.3.9&#160;&#160;<U>Payments to the Exchange
    Agent</U>.</B>&#160;&#160;Glacier will have deposited the Merger
    Consideration with the Exchange Agent.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>5.3.10&#160;&#160;<U>Approval of CDC
    Shareholders</U>.</B>&#160;&#160;The shareholders of CDC shall
    have approved the Merger.
</DIV>

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    <BR>
    A-27
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">SECTION&#160;6.
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    DIRECTORS, OFFICERS AND EMPLOYEES
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>6.1&#160;&#160;<U>Controlling
    Shareholders</U>.</B>&#160;&#160;As a condition to the execution
    of this Agreement, the Approving Persons described in Recital F
    have entered into the written agreements described in Recital F
    on or before the Execution Date. Such agreements will take
    effect at the Effective Date unless otherwise noted in the
    applicable agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>6.2&#160;&#160;<U>Officer&#146;s Employment
    Contract</U>.</B>&#160;&#160;At the Effective Date, the
    Employment Agreements described in Recital E will take effect.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>6.3&#160;&#160;<U>Employee Benefit Issues</U>.</B>&#160;&#160;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>6.3.1&#160;&#160;<U>Comparability of
    Benefits</U>.</B>&#160;&#160;Glacier and CDC intend that, as
    soon as practicable after consummation of the Merger,
    (i)&#160;the accrued benefits for the employees of CDC and its
    Subsidiaries under CDC&#146;s Pension Plan that are intended to
    be qualified under IRC Section&#160;401(a) will be transferred
    to a similar plan maintained by Glacier, and
    (ii)&#160;CDC&#146;s other existing benefit plans or CDC&#146;s
    participation in such plans will be terminated. Glacier and CDC
    recognize that many of the Plans are also maintained by other
    entities that will cease to be ERISA Affiliates of CDC after
    consummation of the Merger, and Glacier and CDC understand that,
    prior to consummation of the Merger, the assets and liabilities
    under some or all of those Plans attributable to current or
    former employees of those ERISA Affiliates may be separated from
    the assets and liabilities attributable to current or former CDC
    Employees.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>6.3.2&#160;&#160;<U>Severance Payments</U>.</B>&#160;&#160;If
    the employment of individuals who are CDC Bank employees as of
    the Execution Date is terminated within three months following
    the CDC Bank Merger of such employee&#146;s CDC Bank as a result
    of a consolidation of staff functions, such employees will be
    entitled to receive the severance payment specified in
    Glacier&#146;s Severance Plan for Employees, as in effect at the
    time of such termination.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>6.3.3&#160;&#160;<U>No Contract
    Created</U>.</B>&#160;&#160;Except as provided in
    <I>Section&#160;6.2</I>, nothing in this Agreement will give any
    employee a right to continuing employment.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>6.4&#160;&#160;<U>Indemnification of Directors and Executive
    Officers</U>.</B>&#160;&#160;For a period of four (4)&#160;years
    from and after the Effective Date, Glacier will indemnify and
    defend each present and former director and officer of CDC and
    the CDC Banks from and against any and all claims, losses,
    liabilities, judgments, fines, damages, costs, and expenses
    (including reasonable attorneys&#146; fees) incurred in
    connection with any claim, action, suit, proceeding or
    investigation, whether civil, criminal, administrative, or
    investigative, arising out of actions or omissions accruing at
    or prior to the Effective Date, including, without limitation,
    the Merger contemplated by this Agreement, to the fullest extent
    that CDC and/or such CDC Bank is currently permitted to
    indemnify (and advance expenses to) its directors and officers
    under applicable law and under their respective articles of
    incorporation or bylaws in effect at the date of this Agreement.
    Any determination required to be made with respect to whether an
    officer&#146;s or director&#146;s conduct complies with the
    standard set forth under CDC&#146;s or such CDC Bank&#146;s
    articles of incorporation or bylaws will be made by independent
    counsel (which will not be counsel that provides any services to
    Glacier or any of its Subsidiaries) selected by Glacier and
    reasonably acceptable to such officer or director. For a period
    of four (4)&#160;years after the Effective Date, Glacier will
    use reasonable efforts to cause to be maintained in effect (with
    reputable and financially sound insurers) director and officer
    liability insurance substantially similar to that maintained by
    Glacier with respect to claims arising from facts or events that
    occurred before the Effective Date.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">SECTION&#160;7.
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    TERMINATION OF AGREEMENT AND ABANDONMENT OF TRANSACTION
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>7.1&#160;&#160;<U>Termination by Reason of Lapse of
    Time</U>.</B>&#160;&#160;If Closing does not occur on or before
    the Termination Date, either Glacier or CDC may terminate this
    Agreement and the Merger if both of the following conditions are
    satisfied:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;the terminating party&#146;s board of directors decides
    to terminate by a majority vote of its members;&#160;and
</DIV>

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    <BR>
    A-28
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<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;the terminating party delivers to the other party
    written notice that its board of directors has voted in favor of
    termination.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>7.2&#160;&#160;<U>Termination Due To Glacier Average Closing
    Price Greater Than $34.88</U>.</B>&#160;&#160;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>7.2.1&#160;&#160;<U>CDC&#146;s Right to
    Terminate</U>.</B>&#160;&#160;By specific action of its board of
    directors, CDC may terminate this Agreement and the Merger by
    written notice to Glacier on the Business Day immediately
    following the Determination Date, if the Glacier Average Closing
    Price is greater than $34.88. (If Glacier declares or effects a
    stock dividend, reclassification, recapitalization, split-up,
    combination, exchange of shares or similar transaction between
    the Execution Date and the Determination Date, the price for the
    Glacier Common Stock will be appropriately adjusted for the
    purpose of applying this <I>Section&#160;7.2.1</I>).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If CDC elects to exercise its termination right pursuant to this
    <I>Section&#160;7.2.1</I>, the provisions of
    <I>Section&#160;7.2.2 </I>will apply.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>7.2.2&#160;&#160;<U>Glacier&#146;s Right to Adjust
    Consideration</U>.</B>&#160;&#160;If CDC provides written notice
    to Glacier in accordance with <I>Section&#160;7.2.1</I>, then
    within two Business Days following Glacier&#146;s receipt of
    such notice, Glacier may elect by written notice to CDC to
    adjust the Per Share Stock Consideration through the issuance of
    additional Glacier Shares in an amount such that the Per Share
    Stock Consideration equals the number of shares of Glacier
    Common Stock that a holder of CDC Common Stock would have
    received had the Glacier Average Closing Price been $34.88.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If Glacier makes such election to increase the number of Glacier
    Shares, no termination will occur pursuant to
    <I>Section&#160;7.2.1</I>, and this Agreement will remain in
    effect according to its terms (except as the Per Share Stock
    Consideration has been adjusted).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>7.3&#160;&#160;<U>Termination Due To Glacier Average Closing
    Price Less than $27.13</U>.</B>&#160;&#160;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>7.3.1&#160;&#160;<U>Glacier&#146;s Right to
    Terminate</U>.</B>&#160;&#160;By specific action of its board of
    directors, Glacier may terminate this Agreement and the Merger
    by written notice to CDC on the Business Day immediately
    following the Determination Date, if the Glacier Average Closing
    Price is less than $27.13. (If Glacier declares or effects a
    stock dividend, reclassification, recapitalization, split-up,
    combination, exchange of shares or similar transaction between
    the Execution Date and the Determination Date, the price for the
    Glacier Common Stock will be appropriately adjusted for the
    purpose of applying this <I>Section&#160;7.3</I>.)
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If Glacier elects to exercise its termination right pursuant to
    this <I>Section&#160;7.3.1, </I>the provisions of
    <I>Section&#160;7.3.2 </I>will apply.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>7.3.2&#160;&#160;<U>CDC&#146;s Right to Adjust
    Consideration</U>.</B>&#160;&#160;If Glacier provides written
    notice to CDC in accordance with <I>Section&#160;7.3.1</I>, then
    within two Business Days following CDC&#146;s receipt of such
    notice, CDC may elect by written notice to Glacier to accept an
    adjustment to the Per Share Stock Consideration through the
    issuance of fewer Glacier Shares such that the Per Share Stock
    Consideration equals the number of shares of Glacier Common
    Stock that a holder of CDC Common Stock would have received had
    the Glacier Average Closing Price been $27.13.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If CDC makes such election to accept such decrease in the number
    of Glacier Shares, no termination will occur pursuant to
    <I>Section&#160;7.3.1, </I>and this Agreement will remain in
    effect according to its terms (except as the Per Share Stock
    Consideration has been adjusted).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>7.4&#160;&#160;<U>Other Grounds for
    Termination</U>.</B>&#160;&#160;This Agreement and the Merger
    may be terminated at any time before Closing (whether before or
    after applicable approval of this Agreement by CDC&#146;s
    shareholders, unless otherwise provided) as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>7.4.1&#160;&#160;<U>Mutual Consent</U>.</B>&#160;&#160;By
    mutual consent of CDC and Glacier, if the board of directors of
    each party agrees to terminate by a majority vote of its members.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>7.4.2&#160;&#160;<U>No Regulatory
    Approvals</U>.</B>&#160;&#160;By either party, if the regulatory
    approvals required by <I>Section&#160;5.1 </I>are denied (or if
    any such required approval is conditioned on a substantial
    deviation from the Merger);&#160;&#160;<U>provided, however</U>,
    that either party will have fifteen (15)&#160;Business Days
    following receipt of such denial to appeal the decision, and if
    such appeal is timely made, either party will have sixty
    (60)&#160;days to prosecute diligently and
</DIV>

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    <BR>
    A-29
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    overturn such denial, and such other party may not terminate
    this Agreement pursuant to this <I>Section&#160;7.4.2 </I>during
    such period of time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>7.4.3&#160;&#160;<U>Breach of
    Representation</U>.</B>&#160;&#160; By either party (provided
    that the terminating party is not then in material breach of any
    of its representations, warranties, agreements or covenants in
    this Agreement if they are not qualified as to materiality and
    is not then in breach of any of its representations, warranties,
    agreements or covenants in this Agreement if they are qualified
    as to materiality) if there has been a material breach of any of
    the representations or warranties set forth in this Agreement
    that are not qualified as to materiality or a breach of any of
    the representations or warranties set forth in this Agreement
    that are qualified as to materiality on the part of the other
    party, which breach is not cured within thirty days following
    written notice to the party committing such breach, or which
    breach, by its nature, cannot be cured prior to the end of such
    thirty day period;
    <U>provided</U>,&#160;&#160;<U>however</U><I>, </I>that neither
    party will have the right to terminate this Agreement pursuant
    to this <I>Section&#160;7.4.3</I> unless the breach of such
    representation or warranty, together with any other such
    breaches, would entitle the party receiving such representation
    not to consummate the transactions contemplated hereby under
    <I>Section&#160;5.2.1 </I>(in the case of a breach of a
    representation or warranty by CDC)&#160;or <I>Section&#160;5.3.1
    </I>(in the case of a breach of a representation or warranty by
    Glacier). In the event of termination pursuant to this
    <I>Section&#160;7.4.3</I>, the terminating party will be
    entitled to receive from the other party the Termination Fee.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>7.4.4&#160;&#160;<U>Breach of Covenant</U>.</B>&#160;&#160;By
    either party (provided that the terminating party is not then in
    material breach of any of its representations, warranties,
    agreements or covenants in this Agreement if they are not
    qualified as to materiality and is not then in breach of any of
    its representations, warranties, agreements or covenants in this
    Agreement if they are qualified as to materiality) if there has
    been a material breach of any of the covenants or agreements set
    forth in this Agreement that are not qualified as to materiality
    or a breach of any of the covenants or agreements set forth in
    this Agreement that are qualified as to materiality on the part
    of the other party, which breach is not cured within thirty days
    following written notice to the party committing such breach, or
    which breach, by its nature, cannot be cured prior to the end of
    such thirty day period. In the event of termination pursuant to
    this <I>Section&#160;7.4.4</I>, the terminating party will be
    entitled to receive from the other party the Termination Fee;
    provided, however, that Glacier will not be entitled to collect
    the Termination Fee in the event of a breach of
    <I>Section&#160;4.1.12</I> caused by CDC&#146;s inability (after
    good faith effort) to remove exceptions to title as provided for
    in that section<I>.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>7.4.5&#160;&#160;<U>Failure to Recommend or Obtain
    Shareholder Approval</U>.</B>&#160;&#160;By Glacier (provided
    that Glacier is not then in material breach of any of its
    representations, warranties, covenants or other agreements in
    this Agreement), if (a)&#160;CDC&#146;s Board of Directors
    (i)&#160;fails to recommend to its shareholders the approval of
    the Merger or (ii)&#160;modifies, withdraws or changes in a
    manner adverse to Glacier its recommendation to shareholders to
    approve the Merger; or (b)&#160;regardless of whether CDC&#146;s
    Board of Directors recommends to its shareholders the approval
    of the Merger, CDC&#146;s shareholders elect not to approve the
    Merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>7.4.6&#160;&#160;<U>Impracticability</U>.</B>&#160;&#160;By
    either Glacier or CDC, upon written notice given to the other
    party, if the board of directors of the party seeking
    termination under this <I>Section&#160;7.4.6 </I>has determined
    in its sole judgment, made in good faith and after due
    consideration and consultation with counsel, that the Merger has
    become inadvisable or impracticable by reason of actions taken
    by the federal government or the government of the State of
    Montana to restrain or invalidate the Merger or this Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>7.4.7&#160;&#160;<U>Dissenting Shares</U>.</B>&#160;&#160;By
    Glacier, if holders of 10% or more of the outstanding shares of
    CDC Common Stock are Proposed Dissenting Shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>7.4.8&#160;&#160;<U>Superior
    Proposal&#160;&#151;&#160;Termination by
    CDC</U>.</B>&#160;&#160;By the board of directors of CDC upon
    written notice to Glacier if such board of directors has in good
    faith determined that a Takeover Proposal constitutes a Superior
    Proposal; provided, however, that CDC may not terminate this
    Agreement pursuant to this <I>Section&#160;7.4.8</I> unless
    (i)&#160;it has not breached <I>Section&#160;4.1.11</I>,
    (ii)&#160;subsequent to delivering such notice of termination,
    it intends to enter into a letter of intent, acquisition
    agreement or similar agreement relating to such Superior
    Proposal, (iii)&#160;it has provided Glacier at least five
    (5)&#160;days&#146; prior written notice advising Glacier that
    the board of directors of CDC is prepared to accept a Superior
    Proposal and has given Glacier, if it so elects, an opportunity
    to amend the terms of this Agreement (and negotiated with
    Glacier in good faith with respect to such terms) in such a
    manner as would enable CDC&#146;s board of directors to proceed
    with the Merger, and (iv)&#160;simultaneously upon entering into
    such letter of
</DIV>

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    <BR>
    A-30
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    intent, acquisition agreement or similar agreement relating to
    such Superior Proposal referred to in clause&#160;(ii), it
    delivers to Glacier the Break-Up Fee.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>7.4.9&#160;&#160;<U>Superior
    Proposal&#160;&#151;&#160;Termination by
    Glacier</U>.</B>&#160;&#160;By Glacier upon written notice to
    CDC if (i)&#160;an Acquisition Event will have occurred or
    (ii)&#160;a third party will have made a proposal to CDC or its
    shareholders to engage in or entered into an agreement with
    respect to an Acquisition Event, and this Agreement and the
    Merger are not approved at the CDC Meeting.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>7.5&#160;&#160;<U>Termination Fee Payable By
    CDC</U>.</B>&#160;&#160;Due to expenses, direct and indirect,
    incurred by Glacier in negotiating and executing this Agreement
    and in taking steps to effect the Merger, CDC will pay to
    Glacier $250,000 (the &#147;<U>Termination Fee</U>&#148;) if
    Glacier terminates this Agreement pursuant to
    <I>Sections&#160;7.4.3 </I>(breach of representation) or
    <I>7.4.4 </I>(breach of covenant). If the Termination Fee
    becomes payable pursuant to this <I>Section&#160;7.5</I>, it
    will be payable on Glacier&#146;s demand and must be paid by CDC
    within three Business Days following the date of Glacier&#146;s
    demand.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>7.6&#160;&#160;<U>Termination Fee Payable By
    Glacier</U>.</B>&#160;&#160;Due to expenses, direct and
    indirect, incurred by CDC in negotiating and executing this
    Agreement and in taking steps to effect the Merger, Glacier will
    pay to CDC the Termination Fee if CDC terminates this Agreement
    pursuant to <I>Sections 7.4.3 </I>(breach of representation) or
    <I>7.4.4 </I>(breach of covenant). If the Termination Fee
    becomes payable pursuant to this <I>Section&#160;7.6</I>, it
    will be payable on CDC&#146;s demand and must be paid by Glacier
    within three Business Days following the date of CDC&#146;s
    demand.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>7.7&#160;&#160;<U>Break-Up Fee</U>.</B>&#160;&#160;If
    (a)&#160;this Agreement is terminated pursuant to
    <I>Section&#160;7.4.5(a) </I>(Failure to Recommend or Obtain
    Shareholder Approval), <I>Section&#160;7.4.8 </I>(Superior
    Proposal&#160;&#151;&#160;Termination by CDC), or
    <I>Section&#160;7.4.9(i) </I>(Superior
    Proposal&#160;&#151;&#160;Termination by
    Glacier&#160;&#151;&#160;Immediate Acquisition Event), then CDC
    will immediately pay to Glacier $2.25&#160;million (the
    &#147;<U>Break-Up Fee</U>&#148;). If this Agreement is
    terminated pursuant to <I>Section&#160;7.4.9(ii) </I>(Superior
    Proposal&#160;&#151;&#160;Termination by
    Glacier&#160;&#151;&#160;Subsequent Acquisition
    Event)&#160;&#160;<U>and</U> prior to or within six months after
    such termination, CDC or the CDC Banks enter into an agreement,
    or publicly announce an intention, to engage in an Acquisition
    Event, or within twelve months after such termination an
    Acquisition Event will have occurred, then CDC will promptly pay
    to Glacier the Break-Up Fee.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>7.8&#160;&#160;<U>Cost Allocation Upon
    Termination</U>.</B>&#160;&#160;In connection with the
    termination of this Agreement under this <I>Section&#160;7</I>,
    except as provided in <I>Sections&#160;7.5 </I>and <I>7.6</I>,
    Glacier and CDC will each pay its own
    <FONT style="white-space: nowrap">out-of-pocket</FONT>
    costs incurred in connection with this Agreement and will have
    no other liability to the other party. The parties agree that
    the agreements herein with respect to the Termination are
    integral parts of the transactions contemplated by this
    Agreement and constitute liquidated damages and not a penalty.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">SECTION&#160;8.
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    MISCELLANEOUS
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>8.1&#160;&#160;<U>Notices</U>.</B>&#160;&#160;Any notice,
    request, instruction or other document to be given under this
    Agreement will be in writing and will be delivered personally or
    sent by registered or certified mail or overnight Federal
    Express service, postage prepaid, addressed as follows:
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#160;&#160;&#160;&#160;&#160;Glacier:
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>&#160;&#160;&#160;&#160;&#160;Glacier
    Bancorp, Inc.
</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#160;&#160;&#160;&#160;&#160;49 Commons Loop
</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#160;&#160;&#160;&#160;&#160;Kalispell, Montana 59901
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="9%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#160;&#160;&#160;&#160;&#160;Attn:
</TD>
    <TD align="left">
    Michael J. Blodnick
</TD>
</TR>

</TABLE>

<DIV align="left" style="margin-left: 11%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    President and CEO
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-31
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>&#160;&#160;&#160;&#160;&#160;with
    a copy to:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>&#160;&#160;&#160;&#160;&#160;Graham&#160;&#38;
    Dunn PC
</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#160;&#160;&#160;&#160;&#160;Pier 70
</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#160;&#160;&#160;&#160;&#160;2801 Alaskan Way Suite&#160;300
</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#160;&#160;&#160;&#160;&#160;Seattle, Washington
    <FONT style="white-space: nowrap">98121-1128</FONT>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="9%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#160;&#160;&#160;&#160;&#160;Attn:
</TD>
    <TD align="left">
    Stephen M. Klein,&#160;Esq.
</TD>
</TR>

</TABLE>

<DIV align="left" style="margin-left: 11%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Kumi Y. Baruffi,&#160;Esq.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>&#160;&#160;&#160;&#160;&#160;CDC:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>&#160;&#160;&#160;&#160;&#160;Citizens
    Development Company
</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#160;&#160;&#160;&#160;&#160;2812 1st&#160;Avenue North,
    Suite&#160;324
</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#160;&#160;&#160;&#160;&#160;Billings, Montana
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="9%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#160;&#160;&#160;&#160;&#160;Attn:
</TD>
    <TD align="left">
    Dean Comes
</TD>
</TR>

</TABLE>

<DIV align="left" style="margin-left: 11%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    President
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#160;&#160;&#160;&#160;&#160;with a copy to:<BR>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#160;&#160;&#160;&#160;&#160;Winthrop&#160;&#38; Weinstine, P.A.
</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#160;&#160;&#160;&#160;&#160;224 South Sixth Street,
    Suite&#160;3500
</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#160;&#160;&#160;&#160;&#160;Minneapolis, MN 55402
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="9%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#160;&#160;&#160;&#160;&#160;Attn:
</TD>
    <TD align="left">
    Patrick W. Weber,&#160;Esq.
</TD>
</TR>

</TABLE>

<DIV align="left" style="margin-left: 11%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Edward J. Drenttel,&#160;Esq.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>&#160;&#160;&#160;&#160;&#160;with
    a copy to:<BR>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>&#160;&#160;&#160;&#160;&#160;Davenport,
    Evans, Hurwitz&#160;&#38; Smith, LLP
</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#160;&#160;&#160;&#160;&#160;206&#160;West 14th&#160;Street
</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#160;&#160;&#160;&#160;&#160;Sioux Falls, SD 57104
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="9%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#160;&#160;&#160;&#160;&#160;Attn:
</TD>
    <TD align="left">
    David L. Knudson,&#160;Esq.
</TD>
</TR>

</TABLE>

<DIV align="left" style="margin-left: 11%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Scott Anderson,&#160;Esq.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    or to such other address or person as any party may designate by
    written notice to the other given under this Section.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>8.2&#160;&#160;<U>Waivers and
    Extensions</U>.</B>&#160;&#160;Subject to <I>Section&#160;9</I>,
    Glacier or CDC may grant waivers or extensions to the other
    party, but only through a written instrument executed by the
    President and/or CEO of the party granting the waiver or
    extension. Waivers or extensions that do not comply with the
    preceding sentence are not effective. In accordance with this
    <I>Section&#160;8.2</I>, a party may extend the time for the
    performance of any of the obligations or other acts of any other
    party, and may waive:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;any inaccuracies of any other party in the
    representations and warranties contained in this Agreement or in
    any document delivered in connection with this Agreement;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;compliance with any of the covenants of any other
    party;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;any other party&#146;s performance of any obligations
    under this Agreement and any other condition precedent set out
    in <I>Section&#160;5.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>8.3&#160;&#160;<U>Construction and Execution in
    Counterparts</U>.</B>&#160;&#160;Except as otherwise expressly
    provided in this Agreement, this Agreement: (i)&#160;covers the
    entire understanding of the Parties, and no modification or
    amendment of its terms or conditions will be effective unless in
    writing and signed by the Parties or their respective duly
    authorized agents; (ii)&#160;will not be interpreted by
    reference to any of the titles or headings to the Sections or
    Subsections of this Agreement, which have been inserted for
    convenience only and are not deemed a substantive part of this
    Agreement; (iii)&#160;is deemed to include all amendments to
    this Agreement, each of which is made a part of this Agreement
    by this reference; and (iv)&#160;may be executed in one or more
    counterparts, each of which will be deemed an original, but all
    of which taken together will constitute one and the same
    document. References in this Agreement to Recitals, Sections,
    Subsections or Schedules are references to the Recitals,
    Sections, Subsections and Schedules of and to this Agreement
    unless expressly stated otherwise.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-32
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>8.4&#160;&#160;<U>Survival of Representations, Warranties,
    and Covenants</U>.</B>&#160;&#160;Except as set forth below, the
    representations, warranties, agreements and covenants set forth
    in this Agreement will not survive Closing or termination of
    this Agreement, except that (1)&#160;<I>Section&#160;4.9</I>
    (Confidentiality), <I>Sections&#160;7.5 </I>and <I>7.6
    </I>(Termination-Related Fees), <I>Section&#160;7.7
    </I>(Break-Up Fee), <I>Section&#160;7.8 </I>(Cost Allocation
    Upon Termination), and <I>Sections&#160;8.3 </I>through <I>8.8
    </I>will survive termination; and (2)&#160;the covenants and
    other agreements in this Agreement that impose duties or
    obligations on the parties following Closing, including
    <I>Section&#160;6.3 </I>(Employee Benefit Issues) and
    <I>Section&#160;6.4 </I>(Indemnification), will survive Closing.
    Except as specifically set forth in the preceding sentences,
    none of the representations, warranties, agreements or covenants
    contained in this Agreement shall survive Closing, and neither
    Glacier nor CDC shall have any rights or remedies after Closing
    with respect to any breach of any such representations,
    warranties, agreements or covenants.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>8.5&#160;&#160;<U>Attorneys&#146; Fees and
    Costs</U>.</B>&#160;&#160;In the event of any dispute or
    litigation with respect to the terms and conditions or
    enforcement of rights or obligations arising by reason of this
    Agreement or the Merger, the substantially prevailing party in
    any such litigation will be entitled to reimbursement from the
    other party of its costs and expenses, including reasonable
    attorneys&#146; fees.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>8.6&#160;&#160;<U>Arbitration</U>.</B>&#160;&#160;At either
    party&#146;s request, the parties must submit any dispute,
    controversy or claim arising out of or in connection with, or
    relating to, this Agreement or any breach or alleged breach of
    this Agreement, to arbitration under the American Arbitration
    Association&#146;s rules then in effect (or under any other form
    of arbitration mutually acceptable to the parties). A single
    arbitrator agreed on by the parties will conduct the
    arbitration. If the parties cannot agree on a single arbitrator,
    each party must select one arbitrator and those two arbitrators
    will select a third arbitrator. This third arbitrator will hear
    the dispute. The arbitrator&#146;s decision is final (except as
    otherwise specifically provided by law) and binds the parties,
    and either party may request any court having jurisdiction to
    enter a judgment and to enforce the arbitrator&#146;s decision.
    The arbitrator will provide the parties with a written decision
    naming the substantially prevailing party in the action. This
    prevailing party is entitled to reimbursement from the other
    party for its costs and expenses, including reasonable
    attorneys&#146; fees. Any arbitration or related proceedings
    will take place in Yellowstone County, Montana.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>8.7&#160;&#160;<U>Governing Law and
    Venue</U>.</B>&#160;&#160;This Agreement will be governed by and
    construed in accordance with the laws of the State of Montana,
    except to the extent that federal law may govern certain
    matters. The parties must bring any legal proceeding arising out
    of this Agreement in Yellowstone County, Montana. Each party
    consents to and submits to the jurisdiction of any local state
    or federal court located in Yellowstone County, Montana.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>8.8&#160;&#160;<U>Severability</U>.</B>&#160;&#160;If a court
    determines that any term of this Agreement is invalid or
    unenforceable under applicable law, the remainder of this
    Agreement will not be affected thereby, and each remaining term
    will continue to be valid and enforceable to the fullest extent
    permitted by law.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>8.9&#160;&#160;<U>No Assignment</U>.</B>&#160;&#160;Neither
    this Agreement nor any of the rights, interests or obligations
    under this Agreement may be assigned by any of the parties
    (whether by operation of law or otherwise) without the prior
    written consent of the other parties. Subject to the preceding
    sentence, this Agreement will be binding upon, inure to the
    benefit of and be enforceable by the parties and their
    respective successors and assigns. Except as otherwise expressly
    provided, this Agreement (including the documents and
    instruments referred to in this Agreement) is not intended to
    confer upon any person other than the parties any rights or
    remedies under this Agreement.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">SECTION&#160;9.
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    AMENDMENTS
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subject to applicable law, this Agreement and the form of any
    attached Exhibit or Schedule may be amended upon authorization
    of the boards of directors of the parties, whether before or
    after the CDC Meeting; <U>provided, however</U>, that after
    approval by CDC&#146;s shareholders, no amendment will be made
    changing the form or reducing the amount of consideration to be
    received by the shareholders of CDC without the further approval
    of such shareholders. All amendments, modifications, extensions
    and waivers must be in writing and signed by the party agreeing
    to the amendment, modification, extension or waiver.
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    [signatures on next page]
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-33
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This Plan and Agreement of Merger is dated as of the
    20th&#160;day of April, 2006.
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    GLACIER BANCORP, INC.
</DIV>

<DIV style="margin-top: 48pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="49%"></TD>
    <TD width="3%"></TD>
    <TD width="48%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    By:&#160;
</TD>
    <TD align="left">
    /s/&#160;&#160;Michael J. Blodnick
</TD>
</TR>

</TABLE>

<DIV style="font-size: 2pt; margin-left: 53%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=0 -->

<DIV align="left" style="margin-left: 53%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Michael J. Blodnick, President and CEO
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    CITIZENS DEVELOPMENT COMPANY
</DIV>

<DIV style="margin-top: 48pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="49%"></TD>
    <TD width="3%"></TD>
    <TD width="48%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    By:&#160;
</TD>
    <TD align="left">
    /s/&#160;&#160;Dean Comes
</TD>
</TR>

</TABLE>

<DIV style="font-size: 2pt; margin-left: 53%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=0 -->

<DIV align="left" style="margin-left: 53%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Dean Comes, President
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-34
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="73%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="15%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="6%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD rowspan="4" nowrap align="left" valign="top">
    <FONT style="font-size: 10pt"></FONT><FONT style="font-size: 40pt">}
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">STATE OF MONTANA
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 10pt">ss.
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">COUNTY OF FLATHEAD
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On this 20th&#160;day of April, 2006, before me personally
    appeared Michael J. Blodnick, to me known to be the President
    and CEO of <B>Glacier Bancorp, Inc.</B>, a corporation that
    executed the foregoing instrument, who acknowledged said
    instrument to be the free and voluntary act and deed of said
    corporation, for the uses and purposes mentioned there, and who
    stated on oath that he was authorized to execute said
    instrument, and that the seal affixed (if any) was the official
    seal of said corporation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    IN WITNESS OF THE FOREGOING, I have set my hand and official
    seal to this document as of the day and year first written above.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    /s/&#160;&#160;LeAnn Wardinsky
</DIV>

<DIV style="font-size: 2pt; margin-left: 49%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=0 -->

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    NOTARY PUBLIC in and for the State<BR>
    of Montana, residing at
    <U>Kalispell&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<BR>
    </U>My Commission
    expires:&#160;<U>7-21-2007&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</U>
</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="78%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="13%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="5%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD rowspan="4" nowrap align="left" valign="top">
    <FONT style="font-size: 10pt"></FONT><FONT style="font-size: 40pt">}
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">STATE OF MONTANA
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 10pt">ss.
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">COUNTY OF YELLOWSTONE
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On this 20th&#160;day of April, 2006, before me personally
    appeared Dean Comes, to me known to be the President of
    <B>Citizens Development Company</B>, a corporation that executed
    the foregoing instrument, who acknowledged said instrument to be
    the free and voluntary act and deed of said corporation, for the
    uses and purposes mentioned there, and who stated on oath that
    he was authorized to execute said instrument, and that the seal
    affixed (if any) was the official seal of said corporation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    IN WITNESS OF THE FOREGOING, I have set my hand and official
    seal to this document as of the day and year first written above.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    /s/&#160;&#160;Susan B. Trapp
</DIV>

<DIV style="font-size: 2pt; margin-left: 49%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=0 -->

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    NOTARY PUBLIC in and for the State<BR>
    of Montana, residing at
    <U>Lewiston&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<BR>
    </U>My Commission expires:&#160;<U>April&#160;25,
    2007&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</U>
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-35
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<A name='118'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="right" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><U><FONT style="font-family: 'Times New Roman', Times">APPENDIX&#160;B</FONT></U></B>
</DIV>
</A>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Montana
    Statutes</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">TITLE&#160;35<BR>
    CHAPTER&#160;1. BUSINESS CORPORATIONS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PART&#160;8.
    MERGER, CONSOLIDATION, SHARE EXCHANGE, AND SALE OF ASSETS<BR>
    <FONT style="white-space: nowrap">Sections&#160;35-1-826</FONT>
    through 35-1-839&#160;&#151;&#160;Dissenters Rights</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>35-1-826.&#160;&#160;Definitions.</B>&#160;&#160;As used in
    35-1-826 through 35-1-839, the following definitions apply:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (1)&#160;&#147;Beneficial shareholder&#148; means the person who
    is a beneficial owner of shares held in a voting trust or by a
    nominee as the record shareholder.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;&#147;Corporation&#148; includes the issuer of the
    shares held by a dissenter before the corporate action, or the
    surviving or acquiring corporation by merger or share exchange
    of that issuer.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (3)&#160;&#147;Dissenter&#148; means a shareholder who is
    entitled to dissent from corporate action under 35-1-827 and who
    exercises that right when and in the manner required by 35-1-829
    through 35-1-837.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (4)&#160;&#147;Fair value&#148;, with respect to a
    dissenter&#146;s shares, means the value of the shares
    immediately before the effectuation of the corporate action to
    which the dissenter objects, excluding any appreciation or
    depreciation in anticipation of the corporate action unless
    exclusion would be inequitable.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (5)&#160;&#147;Interest&#148; means interest from the effective
    date of the corporate action until the date of payment at the
    average rate currently paid by the corporation on its principal
    bank loans or, if the corporation has no loans, at a rate that
    is fair and equitable under all the circumstances.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (6)&#160;&#147;Record shareholder&#148; means the person in
    whose name shares are registered in the records of a corporation
    or the beneficial shareholder to the extent of the rights
    granted by a nominee certificate on file with a corporation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (7)&#160;&#147;Shareholder&#148; means the record shareholder or
    the beneficial shareholder.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>35-1-827.&#160;&#160;Right to
    dissent.</B>&#160;&#160;(1)&#160;A shareholder is entitled to
    dissent from and obtain payment of the fair value of the
    shareholder&#146;s shares in the event of any of the following
    corporate actions:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;consummation of a plan of merger to which the
    corporation is a party if:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;shareholder approval is required for the merger by
    35-1-815 or the articles of incorporation and the shareholder is
    entitled to vote on the merger;&#160;or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;the corporation is a subsidiary that is merged with
    its parent corporation under 35-1-818;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;consummation of a plan of share exchange to which the
    corporation is a party as the corporation whose shares will be
    acquired if the shareholder is entitled to vote on the plan;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;consummation of a sale or exchange of all or
    substantially all of the property of the corporation other than
    in the usual and regular course of business if the shareholder
    is entitled to vote on the sale or exchange, including a sale in
    dissolution but not including a sale pursuant to court order or
    a sale for cash pursuant to a plan by which all or substantially
    all of the net proceeds of the sale will be distributed to the
    shareholders within 1&#160;year after the date of sale;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;an amendment of the articles of incorporation that
    materially and adversely affects rights in respect of a
    dissenter&#146;s shares because it:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;alters or abolishes a preferential right of the shares;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;creates, alters, or abolishes a right in respect of
    redemption, including a provision with respect to a sinking fund
    for the redemption or repurchase of the shares;
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    B-1
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;alters or abolishes a preemptive right of the holder
    of the shares to acquire shares or other securities;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iv)&#160;excludes or limits the right of the shares to be voted
    on any matter or to cumulate votes, other than a limitation by
    dilution through issuance of shares or other securities with
    similar voting rights;&#160;or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (v)&#160;reduces the number of shares owned by the shareholder
    to a fraction of a share if the fractional share created is to
    be acquired for cash under 35-1-621;&#160;or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;any corporate action taken pursuant to a shareholder
    vote to the extent the articles of incorporation, bylaws, or a
    resolution of the board of directors provides that voting or
    nonvoting shareholders are entitled to dissent and to obtain
    payment for their shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;A shareholder entitled to dissent and to obtain payment
    for shares under 35-1-826 through 35-1-839 may not challenge the
    corporate action creating the shareholder&#146;s entitlement
    unless the action is unlawful or fraudulent with respect to the
    shareholder or the corporation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>35-1-828.&#160;&#160;Dissent by nominees and beneficial
    owners.</B>&#160;&#160;(1)&#160;A record shareholder may assert
    dissenters&#146; rights as to fewer than all the shares
    registered in his name only if he dissents with respect to all
    shares beneficially owned by any one person and notifies the
    corporation in writing of the name and address of each person on
    whose behalf he asserts dissenters&#146; rights. The rights of a
    partial dissenter under this subsection are determined as if the
    shares as to which he dissents and his other shares were
    registered in the names of different shareholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;A beneficial shareholder may assert dissenters&#146;
    rights as to shares held on his behalf only if:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;he submits to the corporation the record
    shareholder&#146;s written consent to the dissent not later than
    the time the beneficial shareholder asserts dissenters&#146;
    rights;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;he does so with respect to all shares of which he is
    the beneficial shareholder or over which he has power to direct
    the vote.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>35-1-829.&#160;&#160;Notice of dissenters&#146;
    rights.</B>&#160;&#160;(1)&#160;If a proposed corporate action
    creating dissenters&#146; rights under
    <FONT style="white-space: nowrap">35-1-827</FONT> is
    submitted to a vote at a shareholders&#146; meeting, the meeting
    notice must state that shareholders are or may be entitled to
    assert dissenters&#146; rights under
    <FONT style="white-space: nowrap">35-1-826</FONT>
    through
    <FONT style="white-space: nowrap">35-1-839</FONT> and
    must be accompanied by a copy of 35-1-826 through 35-1-839.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;If a corporate action creating dissenters&#146; rights
    under 35-1-827 is taken without a vote of shareholders, the
    corporation shall give written notification to all shareholders
    entitled to assert dissenters&#146; rights that the action was
    taken and shall send them the dissenters&#146; notice described
    in 35-1-831.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>35-1-830.&#160;&#160;Notice of intent to demand
    payment.</B>&#160;&#160;(1)&#160;If proposed corporate action
    creating dissenters&#146; rights under 35-1-827 is submitted to
    a vote at a shareholders&#146; meeting, a shareholder who wishes
    to assert dissenters&#146; rights:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;shall deliver to the corporation before the vote is
    taken written notice of his intent to demand payment for his
    shares if the proposed action is effectuated;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;may not vote his shares in favor of the proposed action.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;A shareholder who does not satisfy the requirements of
    subsection (1)(a) is not entitled to payment for his shares
    under 35-1-826 through 35-1-839.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>35-1-831.&#160;&#160;Dissenters&#146;
    notice.</B>&#160;&#160;(1)&#160;If proposed corporate action
    creating dissenters&#146; rights under 35-1-827 is authorized at
    a shareholders&#146; meeting, the corporation shall deliver a
    written dissenters&#146; notice to all shareholders who
    satisfied the requirements of 35-1-830.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;The dissenters&#146; notice must be sent no later than
    10&#160;days after the corporate action was taken and must:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;state where the payment demand must be sent and where
    and when certificates for certified shares must be deposited;
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    B-2
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;inform shareholders of uncertificated shares to what
    extent transfer of the shares will be restricted after the
    payment is received;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;supply a form for demanding payment that includes the
    date of the first announcement to news media or to shareholders
    of the terms of the proposed corporate action and that requires
    the person asserting dissenters&#146; rights to certify whether
    or not he acquired beneficial ownership of the shares before
    that date;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;set a date by which the corporation must receive the
    payment demand, which may not be fewer than 30 nor more than
    60&#160;days after the date the required notice under
    subsection&#160;(1)&#160;is delivered;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;be accompanied by a copy of 35-1-826 through 35-1-839.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>35-1-832.&#160;&#160;Duty to demand
    payment.</B>&#160;&#160;(1)&#160;A shareholder sent a
    dissenters&#146; notice described in 35-1-831 shall demand
    payment, certify whether the shareholder acquired beneficial
    ownership of the shares before the date required to be set forth
    in the dissenters&#146; notice pursuant to 35-1-831(2)(c), and
    deposit his certificates in accordance with the terms of the
    notice.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;The shareholder who demands payment and deposits his
    certificates under subsection&#160;(1)&#160;retains all other
    rights of a shareholder until these rights are canceled or
    modified by taking of the proposed corporate action.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (3)&#160;A shareholder who does not demand payment or deposit
    his certificates where required, each by the date set in the
    dissenters&#146; notice, is not entitled to payment for his
    shares under 35-1-826 through 35-1-839.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>35-1-833.&#160;&#160;Share
    restrictions.</B>&#160;&#160;(1)&#160;The corporation may
    restrict the transfer of uncertificated shares from the date the
    demand for their payment is received until the proposed
    corporate action is taken or the restrictions are released under
    35-1-835.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;The person for whom dissenters&#146; rights are
    asserted as to uncertificated shares retains all other rights of
    a shareholder until these rights are canceled or modified by the
    taking of the proposed corporate action.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>35-1-834.&#160;&#160;Payment.</B>&#160;&#160;(1)&#160;Except
    as provided in 35-1-836, as soon as the proposed corporate
    action is taken or upon receipt of a payment demand, the
    corporation shall pay each dissenter who complied with 35-1-832
    the amount the corporation estimates to be the fair value of the
    dissenter&#146;s shares plus accrued interest.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;The payment must be accompanied by:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;the corporation&#146;s balance sheet as of the end of a
    fiscal year ending not more than 16&#160;months before the date
    of payment, an income statement for that year, a statement of
    changes in shareholders&#146; equity for that year, and the
    latest available interim financial statements, if any;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;a statement of the corporation&#146;s estimate of the
    fair value of the shares;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;an explanation of how the interest was calculated;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;a statement of the dissenter&#146;s right to demand
    payment under 35-1-837; and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;a copy of 35-1-826 through 35-1-839.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>35-1-835.&#160;&#160;Failure to take
    action.</B>&#160;&#160;(1)&#160;If the corporation does not take
    the proposed action within 60&#160;days after the date set for
    demanding payment and depositing certificates, the corporation
    shall return the deposited certificates and release the transfer
    restrictions imposed on uncertificated shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;If after returning deposited certificates and releasing
    transfer restrictions, the corporation takes the proposed
    action, it shall send a new dissenters&#146; notice under
    35-1-831 and repeat the payment demand procedure.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>35-1-836.&#160;&#160;After-acquired
    shares.</B>&#160;&#160;(1)&#160;A corporation may elect to
    withhold payment required by 35-1-834 from a dissenter unless
    the dissenter was the beneficial owner of the shares before the
    date set forth in the dissenters&#146; notice as the date of the
    first announcement to news media or to shareholders of the terms
    of the proposed corporate action.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;To the extent the corporation elects to withhold
    payment under subsection&#160;(1), after taking the proposed
    corporate action, the corporation shall estimate the fair value
    of the shares plus accrued interest and shall pay this
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    B-3
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    amount to each dissenter who agrees to accept it in full
    satisfaction of his demand. The corporation shall send with its
    offer a statement of its estimate of the fair value of the
    shares, an explanation of how the interest was calculated, and a
    statement of the dissenter&#146;s right to demand payment under
    35-1-837.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>35-1-837.&#160;&#160;Procedure if shareholder dissatisfied
    with payment or offer.</B>&#160;&#160;(1)&#160;A dissenter may
    notify the corporation in writing of the dissenter&#146;s own
    estimate of the fair value of the dissenter&#146;s shares and
    the amount of interest due and may demand payment of the
    dissenter&#146;s estimate, less any payment under 35-1-834, or
    reject the corporation&#146;s offer under 35-1-836 and demand
    payment of the fair value of the dissenter&#146;s shares and the
    interest due if:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;the dissenter believes that the amount paid under
    35-1-834 or offered under 35-1-836 is less than the fair value
    of the dissenter&#146;s shares or that the interest due is
    incorrectly calculated;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;the corporation fails to make payment under 35-1-834
    within 60&#160;days after the date set for demanding
    payment;&#160;or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;the corporation, having failed to take the proposed
    action, does not return the deposited certificates or release
    the transfer restrictions imposed on uncertificated shares
    within 60&#160;days after the date set for demanding payment.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;A dissenter waives the right to demand payment under
    this section unless he notifies the corporation of his demand in
    writing under subsection (1)&#160;within 30&#160;days after the
    corporation made or offered payment for his shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>35-1-838.&#160;&#160;Court action.</B>&#160;&#160;(1)&#160;If
    a demand for payment under 35-1-837 remains unsettled, the
    corporation shall commence a proceeding within 60&#160;days
    after receiving the payment demand and shall petition the court
    to determine the fair value of the shares and accrued interest.
    If the corporation does not commence the proceeding within the
    <FONT style="white-space: nowrap">60-day</FONT>
    period, it shall pay each dissenter whose demand remains
    unsettled the amount demanded.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;The corporation shall commence the proceeding in the
    district court of the county where a corporation&#146;s
    principal office or, if its principal office is not located in
    this state, where its registered office is located. If the
    corporation is a foreign corporation without a registered office
    in this state, it shall commence the proceeding in the county in
    this state where the registered office of the domestic
    corporation merged with or whose shares were acquired by the
    foreign corporation was located.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (3)&#160;The corporation shall make all dissenters whose demands
    remain unsettled, whether or not residents of this state,
    parties to the proceeding as in an action against their shares,
    and all parties must be served with a copy of the petition.
    Nonresidents may be served by certified mail or by publication
    as provided by law.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (4)&#160;The jurisdiction of the district court in which the
    proceeding is commenced under subsection&#160;(2)&#160;is
    plenary and exclusive. The court may appoint one or more persons
    as appraisers to receive evidence and recommend decision on the
    question of fair value. The appraisers have the powers described
    in the order appointing them or in any amendment to it. The
    dissenters are entitled to the same discovery rights as parties
    in other civil proceedings.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (5)&#160;Each dissenter made a party to the proceeding is
    entitled to judgment:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;for the amount, if any, by which the court finds the
    fair value of the dissenter&#146;s shares plus interest exceeds
    the amount paid by the corporation;&#160;or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;for the fair value plus accrued interest of his
    after-acquired shares for which the corporation elected to
    withhold payment under 35-1-836.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>35-1-839.&#160;&#160;Court costs and attorney
    fees.</B>&#160;&#160;(1)&#160;The court in an appraisal
    proceeding commenced under
    <FONT style="white-space: nowrap">35-1-838</FONT>
    shall determine all costs of the proceeding, including the
    reasonable compensation and expenses of appraisers appointed by
    the court. The court shall assess the costs against the
    corporation, except that the court may assess costs against all
    or some of the dissenters, in amounts the court finds equitable,
    to the extent the court finds dissenters acted arbitrarily,
    vexatiously, or not in good faith in demanding payment under
    35-1-837.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    B-4
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;The court may also assess the fees and expenses of
    counsel and experts for the respective parties, in amounts the
    court finds equitable:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;against the corporation and in favor of any or all
    dissenters if the court finds the corporation did not
    substantially comply with the requirements of 35-1-829 through
    35-1-837;&#160;or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;against either the corporation or a dissenter, in favor
    of any other party, if the court finds that the party against
    whom the fees and expenses are assessed acted arbitrarily,
    vexatiously, or not in good faith with respect to the rights
    provided by 35-1-826 through 35-1-839.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (3)&#160;If the court finds that the services of counsel for any
    dissenter were of substantial benefit to other dissenters
    similarly situated and that the fees for those services should
    not be assessed against the corporation, the court may award the
    counsel reasonable attorney fees to be paid out of the amounts
    awarded the dissenters who were benefited.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    B-5
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="50%"></TD>
    <TD width="50%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">    <A name='119'><IMG src="v20560b3v2056001.gif" alt="(HOVDE LOGO)" ><FONT style="font-family: 'Times New Roman', Times">
    </FONT></TD>
    <TD nowrap align="right">    <B><FONT style="font-family: 'Times New Roman', Times">APPENDIX&#160;C</FONT></B></TD>
</TR>

</TABLE>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    </A> April&#160;18, 2006
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Board of Directors
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Citizens Development Company
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2182 First Avenue North
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Billings, MT 59101
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Dear Members of the Board:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We understand that Citizens Development Company
    (&#147;<U>CDC</U>&#148;), a Montana corporation, and Glacier
    Bancorp, Inc. (&#147;<U>Glacier</U>&#148;), a Montana
    corporation, are about to enter into a Plan and Agreement of
    Merger (the &#147;<U>Agreement</U>&#148;), to be dated on or
    about April&#160;20, 2006, pursuant to which CDC will merge with
    and into a Montana corporation to be formed and wholly owned by
    Glacier (the &#147;<U>Merger</U>&#148;) with such Montana
    corporation (hereinafter referred to as
    &#147;<U>Holdings</U>&#148;) surviving as a wholly owned
    subsidiary of Glacier. Capitalized terms used but not otherwise
    defined herein shall have the same meaning ascribed to them in
    the Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We understand that CDC owns 100% of the outstanding capital
    stock of Citizens State Bank (&#147;<U>CSB-Hamilton</U>&#148;),
    a Montana state-chartered bank, and more than 80% of the
    outstanding capital stock of each of First Citizens Bank of
    Billings (&#147;<U>FCB-Billings</U>&#148;), a Montana
    state-chartered bank, First National Bank of Lewiston
    (&#147;<U>FCB-Lewiston</U>&#148;), a national banking
    association, Western Bank of Chinook, N.A.
    (&#147;<U>WB-Chinook</U>&#148;), a national banking association,
    and First Citizens Bank, N.A. (&#147;<U>FCB-Columbia
    Falls</U>&#148;), a national banking association (collectively,
    the &#147;<U>CDC Banks</U>&#148;). Additionally, we understand
    that Glacier owns 100% of the outstanding capital stock of each
    of Western Security Bank (&#147;<U>Western Security</U>&#148;),
    a Montana state-chartered bank, Glacier Bank (&#147;<U>Glacier
    Bank</U>&#148;), a Montana state-chartered bank, and First
    Security Bank of Missoula (&#147;<U>First Security</U>&#148;), a
    Montana state-chartered bank. As provided for in the Agreement,
    it is anticipated that for an initial transition period
    following the Effective Date, the CDC Banks will operate as
    subsidiaries of Holdings. Following such transition period, it
    is expected that (i)&#160;each of FCB-Billings, FNB-Lewistown
    and WB-Chinook will merge with and into Western Security, with
    Western Security surviving as a wholly owned subsidiary of
    Glacier, (ii)&#160;FCB-Columbia Falls will merge with and into
    Glacier Bank, with Glacier Bank surviving as a wholly owned
    subsidiary of Glacier, (iii)&#160;CSB-Hamilton will merge with
    and into First Security, with First Security surviving as a
    wholly owned subsidiary of Glacier, and (iv)&#160;Holdings will
    be merged with and into Glacier or otherwise dissolved.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the Agreement, each share of CDC Common Stock issued
    and outstanding immediately prior to the Execution Date will
    automatically and without any action on the part of the holder
    of such share be converted into and represent the right to
    receive from Glacier either Glacier Shares, cash, or a
    combination thereof in accordance with the provisions of
    Section&#160;1.3.2 of the Agreement. The aggregate consideration
    payable or issuable pursuant to the Merger is referred to herein
    as the &#147;<U>Merger Consideration</U>&#148; and, as provided
    for in the Agreement, has a dollar value equal to the sum of
    $77&#160;million plus any Earnings Adjustment. In connection
    with the Merger and the Agreement, you have requested our
    opinion as to the fairness, from a financial point of view, of
    the Merger Consideration to be paid to the holders of CDC Common
    Stock.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="v20560b3v2056002.gif" alt="(ADDRESSES)" >
</DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Board of Directors
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    April&#160;18, 2006
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Page&#160;2 of 3
</DIV>
<P>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Hovde Financial, Inc. (&#147;<U>Hovde</U>&#148;), as part of its
    investment banking business, is continually engaged in the
    valuation of businesses and their securities in connection with
    mergers and acquisitions, negotiated underwritings, competitive
    bidding, secondary distributions of listed and unlisted
    securities, private placements and valuations for estate,
    corporate and other purposes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    During the course of our engagement and for the purposes of the
    opinion set forth herein, we have:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;reviewed the Agreement and all attachments thereto;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;reviewed certain historical publicly available
    business and financial information concerning CDC and Glacier;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;reviewed certain internal financial statements and
    other financial and operating data concerning CDC and Glacier;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iv)&#160;analyzed certain financial projections prepared by the
    management of CDC and Glacier;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (v)&#160;held discussions with members of the senior management
    of CDC for the purpose of reviewing the future prospects of CDC,
    including financial forecasts related to the respective
    businesses, earnings, assets, liabilities and the amount and
    timing of cost savings (the &#147;<U>Synergies</U>&#148;)
    expected to be achieved as a result of the Merger;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (vi)&#160;reviewed historical market prices and trading volumes
    of Glacier Shares;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (vii)&#160;reviewed the terms of recent merger and acquisition
    transactions, to the extent publicly available, involving banks
    and bank holding companies that we considered relevant;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (viii)&#160;analyzed the pro forma impact of the Merger on the
    combined company&#146;s earnings per share, consolidated
    capitalization and financial ratios;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ix)&#160;performed such other analyses and considered such
    other factors as we have deemed appropriate.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We also took into account our assessment of general economic,
    market and financial conditions and our experience in other
    transactions as well as our knowledge of the banking industry
    and our general experience in securities valuations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In rendering this opinion, we have assumed, without independent
    verification, the accuracy and completeness of the financial and
    other information and representations contained in the materials
    provided to us by CDC and Glacier and in the discussions with
    the managements of CDC and Glacier. In that regard, we have
    assumed that the financial forecasts, including, without
    limitation, the Synergies and projections regarding
    under-performing and nonperforming assets and net charge-offs
    have been reasonably prepared on a basis reflecting the best
    currently available information and judgments and estimates of
    CDC and Glacier and that such forecasts will be realized in the
    amounts and at the times contemplated thereby. We are not
    experts in the evaluation of loan and lease portfolios for
    purposes of assessing the adequacy of the allowances for losses
    with respect thereto and have assumed that such allowances made
    by the subsidiaries of CDC and Glacier are in the aggregate
    adequate to cover such losses. We were not retained to and did
    not conduct a physical inspection of any of the properties or
    facilities of CDC, Glacier or their respective subsidiaries. In
    addition, we have not reviewed individual credit files nor have
    we made an independent evaluation or appraisal of the assets and
    liabilities of CDC, Glacier or any of their respective
    subsidiaries and we were not furnished with any such evaluations
    or appraisals.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have assumed that the Merger will be consummated
    substantially in accordance with the terms set forth in the
    Agreement. We have further assumed that the Merger will be
    accounted for as a purchase under generally accepted accounting
    principles. We have assumed that the Merger is, and will be, in
    compliance with all laws and regulations that are applicable to
    CDC, Glacier and their subsidiaries. In rendering this opinion,
    we have assumed that there are no factors that would impede any
    necessary regulatory or governmental approval of the Merger and
    we
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    C-2
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Board of Directors
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    April&#160;18, 2006
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Page&#160;3 of 3
</DIV>
<P>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    have further assumed that, in the course of obtaining the
    necessary regulatory and governmental approvals, no restriction
    will be imposed on Glacier or the surviving corporations that
    would have a material adverse effect on the surviving
    corporations or the contemplated benefits of the Merger. We have
    also assumed that no change in applicable law or regulation
    would occur that would cause a material adverse change in the
    prospects or operations of Glacier or any of the surviving
    corporations after the Merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our opinion is based solely upon the information available to us
    and the economic, market and other circumstances, as they exist
    as of the date hereof. Events occurring and information that
    becomes available after the date hereof could materially affect
    the assumptions and analyses used in preparing this opinion. We
    have not undertaken to reaffirm or revise this opinion or
    otherwise comment upon any events occurring or information that
    becomes available after the date hereof, except as otherwise
    agreed in our engagement letter.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are not expressing any opinion herein as to the prices at
    which Glacier Shares issued in the Merger may trade if and when
    they are issued or at any future time, nor does our opinion
    constitute a recommendation to any holder of CDC Common Stock as
    to how such holder should vote with respect to the Agreement at
    any meeting of holders of the CDC Common Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This letter is solely for the information of the Board of
    Directors of CDC and is not to be used, circulated, quoted or
    otherwise referred to for any other purpose, nor is it to be
    filed with, included in or referred to in whole or in part in
    any registration statement, proxy statement or any other
    document, except in each case in accordance with our prior
    written consent which shall not be unreasonably withheld;
    <U>provided</U>, <U>however</U>, that we hereby consent to the
    inclusion and reference to this letter in any registration
    statement, proxy statement, information statement or tender
    offer document to be delivered to the holders of CDC Common
    Stock in connection with the Merger if and only if this letter
    is quoted in full or attached as an exhibit to such document and
    this letter has not been withdrawn prior to the date of such
    document.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subject to the foregoing and based on our experience as
    investment bankers, our activities and assumptions as described
    above, and other factors we have deemed relevant, we are of the
    opinion as of the date hereof that the Merger Consideration to
    be paid to the holders of the CDC Common Stock pursuant to the
    Agreement is fair, from a financial point of view.
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Sincerely,
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    /s/&#160;&#160;Hovde Financial, Inc.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    HOVDE FINANCIAL, INC.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    C-3
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#"``[
`
end
</TEXT>
</DOCUMENT>
</SUBMISSION>
