BAS Presentations - March 2023

3/1/2023

Which components does the securities portfolio impact?

3

Securities Portfolio Impacts Every Component!

Capital

• Wide range of risk ‐ weightings can impact capital ratios

Asset Quality Management

• Credit risk and potential for adverse classification

• Risk management: pre ‐ purchase analysis, ongoing monitoring, etc.

Earnings Liquidity Sensitivity

• Interest Income; realized gains/losses

• Cash flow, marketability, pledging

• Term structure may contribute to or mitigate interest rate risk • Price volatility with rate changes

4

2