5 - Q. Again, it was strategic planning which pointed the way into insurance? A. Yes. (Discussion here of Bank-Holding Co. Act and options a firm could take.) Q. So, this was all in the 701 s... commercial loans, recreation, etc? A. Yes. Q. Is the diversification continuing? Can I come see you next year and have you tell me of others? A. Oh, yes. We have very ambitious plans for diversification. It's hard in any one field to keep an average growth gate of 19% without moving into other fields. Diversification also provides greater stability. When one business is down another might be up. Q. So, there's a constant adding of activities? A. Yes. We pilot test all of our activities. Q. You've tested some waters, found the waters not right and withdrawn? A. Yes. For instance, in terms of some real estate financing, we have tested and withdrawn. In terms of small balance personal loans... this area has been becoming less important in our picture. There we went beyond the pilot stage but found it was not as profitable as other opportunities. In insurance we've withdrawn from school accident and health insurance. Yes, we enter and withdraw. We have considerable flexibility to withdraw as well as to enter because we don't have large industrial plants and machinery. We shift people and money to the areas where the opportunities are. ________________ ________._ Q. Are you still in personal loans? A. Yes, but to a much smaller degree than five years ago and a smaller percentage of our total operations. Q. So, strategic planning is a testing of the market place? A. Identifying opportunities and developing plans for testing them.