BAS Presentations - March 2023

3/1/2023

Lack of Liquidity is the quickest path to failure

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Impact of Asset Quality Issues

Diminished earnings and capital  Increased provisions and legal/collection expenses.  Non ‐ earning assets (e.g. non ‐ accrual loans, OREO).

Reduced borrowing capacity  Removal of problem assets from collateral pool.  Increased collateral “hair cuts”.  Elimination of borrowing lines.

FHLB Borrowing Example

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