BAS Case Study - March 2023

• When it is confirmed that the funds have been deposited, a wire is initiated from the FHLB to GLBB. • The Overnight Borrowing is paid down as cash becomes available in the Fed Funds Sold account and payments are approved by the CEO. The same telephone procedures are followed as listed above and the Administrative Assistant initiates a wire from GLBB to the FHLB DDA. • The cut-off for same-day activity is 3:00 p.m. • The primary backup for the FHLB borrowings and payments is the CFO. The Bookkeeper and Loan Administrator are backups for the GLBB wires. Federal Reserve Bank Discount Window Borrowing Procedures The Bank has the ability to borrow from the Federal Reserve Bank (FRB) Discount Window. • If the CEO approves borrowing from the FRB Discount Window, an authorized individual will call the Federal Reserve Bank in Sunny State at (888) 719-4636 and request the amount that the Bank wouldlike to borrow and length of time the funds will be needed. • When it is confirmed that the funds have been deposited, a wire is initiated by the Sunny Branch Manger from the FRB account to GLBB. • The Discount Window borrowing is paid down according to the terms of the individual borrowing. Exceptions to Liquidity Contingency Funding Plan The Board recognizes that no policy can anticipate all the conditions, situations and opportunities that may arise in the normal course of operations. Management therefore is expected to exercise prudent judgment in the implementation of this policy. Deviations from the guidelines established by this policy will be approved in advance by the ALCO. Such deviations will be promptly reported to the Board. Appendix A – Liquidity Contingency Decision Matrix

Senior Management Committee

CEO (or Designate)

CFO (or Designate)

Asset Liability Committee

Board of Directors

Overnight Fed Funds Sold

X

X

GLBB Fed Funds Purchased

X

X

FHLB CMA

X

X

Securities Available for Sale

X

X

FHLB Term Advance

X

X

X

X

Loans Available for Sale

X

X

X

X

Establish New Correspondent Relationships

X

X

X

X

X

Brokered CDs

X

FRB Discount Window

X

BOD Approval Date 04/18/18

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