EMM Presentations - March 2023

Utilizing an Agenda

“Too much detail is apt, like any other form of extravagance, to become slightly vulgar.” – Willa Cather

Ratio

Period Ended Period Ended Period Ended 03/31/2011 12/31/2010 12/31/2009

Net Non ‐ Core Funding Dependence Net Loans and Leases/Total Assets

10.36%*

14.61%*

24.97%

76.70% 75.57% 80.30%

• Liquidity and funds management practices are satisfactory, in spite of credit risk issues. The bank has access to sufficient sources of funds to meet present and anticipated liquidity needs. • Liquidity levels have improved since the prior examination. • On balance sheet • Liquid assets = $195 million, or 9.2% at March 31, 20XX (8.5% at LX) • Totals have improved during 2 nd quarter to $312 million, or 14.8% as of June 30, 20XX • Represents an increase of over 500 bps. • External borrowing sources • The bank continues to be rated “7” by FHLB, primarily due to credit risk issues. The bank remains on “listing” status and FHLB funding requires 142% collateral coverage. • FHLB borrowing capacity at March 31, 20XX = $264 million • FHLB borrowing capacity at June 30, 20XX = $272 million • In additional secured borrowing line with FRB = $27 million and unsecured line with Comerica = $6.5 million • Total on-hand liquidity / total liabilities as of March 31, 2011 = 25% (21% LX). Improved further to 29% as of June 30, 2011. • The bank’s Net Noncore Funding Dependence ratio is moderate at 10.4% (using the > $250,000 deposit insurance limit) as of March 31, 20XX. The UBPR Peer Group ratio is 11.6%. • The bank’s deposit base remains stable. Step-up time deposits have interest rates well-above market, but are limited to approximately $137 Million. • Management has been able to develop and access new funding sources, e.g. QwickRate and Comerica. Additionally, management regularly sells securities and loans without incurring loss. • Regulatory restrictions on holdings of brokered deposits and interest rate caps remain in-place. • Management has addressed contingency funding plan and other risk management weaknesses.

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4 C’s for Presenting

Calm Confident

Clear

Concise

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