BAS September 2022 Presentations

Internal Use Only

Credit Risk U.S. Treasuries (RW 0%) U.S. Agencies (RW 20%) Municipals – General Obligations (RW 20%) Municipals – Revenue (RW 50%) Corporates (RW 100%)

Minimal

CREDIT RISK

High

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Internal Use Only

Securities Review – May 2022 Exam

Five ‐ fold increase in Corporate bonds since the last exam (Q1 2019)

• Corporate bonds rated either subinvestment or lowest investment grade represented nearly 200% of capital. • Weak investment practices (policy, pre-purchase analysis, ongoing monitoring). • Asset Quality, Capital, and Management components were downgraded.

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