CMS Case Study

Basic Surplus Report - 12/31/2021

Other Liquidity Items Other Investments

TIER 1 BASIC SURPLUS

TOTAL ASSETS 964,860

Overnight Funds Sold & Short-Term Investments (avg. balance, if wide daily fluctuations) 32,900 TREASURIES & AGENCIES AGENCY MBS/CMO NON-AGENCY MBS/CMO Collateral Value 100% 95% 90% Market Value 24,417 374,466 0 Less Securities Pledged to: FHLB 0 -27,497 0 Fed Discount/Other Secured 0 0 0 Wholesale Repos 0 0 0 Retail Repos/Sweeps -3,296 -31,523 0 Municipal Deposits -1,016 -147,511 0 Other 0 0 0 Available / Unencumbered Security Collateral 20,105 159,538 0 179,643

MARKET VALUE

PLEDGED AVAIL.

Corporates Municipals

3,612

0 3,612

42,457

21,457 21,000

Equities

0 0

0 0

0 0

Other Total

46,069

21,457 24,612

Borrowing Lines

SECURED LINE OUTSTANDING AVAIL. Fed BIC Lines 0 0 0

Fed Discount / Other

2,611

0 2,611

UNSECURED Fed Funds Lines

31,425 34,036

0 31,425 0 34,036

Total

Over Collateralized Securities Pledging Position 25,693

Cash flow (< 30 Days) from Securities not listed above

0

Unrealized Gain/Loss on Securities (AFS & HTM)

Other Liquid Assets (Int Bearing Deposits, MM Mutual Funds, etc.)

1,489 Total Liquid Assets 239,725

TIER 1 % OF ASSETS

TOTAL PORTFOLIO

TIER 1 BASIC SURPLUS BONDS

Volatile Liabilities Coverage: Maturing Unsecured Liabilities (< 30 Days)

Base

-1,825

-3,301 0.3% -23,231 2.4% -19,930 2.1%

0

Shock Up 100BP -24,108

Additional Liquidity Reserve(s) 0 Deposit Coverage (7% of Assets/8% of Deposits) (68,251) Tier 1 Basic Surplus ($ and % of assets) 171,474

Difference -22,282

POLICY LIMITS (min) Well Cap. < Well Cap. 0.0% 2.0%

Notes 1. The total amount of public deposits requiring collateral as of 12/31/2021 is $178MM. 2. The bank has municipal securities pledged to the Fed Discount Window. Available line = $2.6 million (net haircut). 3. Outstanding borrowings include a $15MM Letter of Credit which is pledged to municipal deposits.

17.8%

TIER 2 BASIC SURPLUS

A. Maximum Borrowing Line at FHLB (Up to 25% of Assets) 241,215 B. Loan Collateral at the FHLB (net of haircut) 42,387 C. Excess Loan Collateral (if A < B) 0

Maximum Borrowing Capacity (Lesser of A or B) 42,387 Collateral Currently Encumbered by Outstanding Advances/Letters of Credit 42,387 Remaining FHLB Loan Based Borrowing Capacity 0 Tier 2 Basic Surplus 171,474

4.0% 8.0%

17.8%

TIER 3 BASIC SURPLUS Maximum Board Authorized Brokered Deposit Capacity (Policy Limit of 15% of Assets) 144,729 Current Brokered Deposit Balances 0 Remaining Capacity to Utilize Brokered Deposits 144,729

Tier 3 Basic Surplus 316,203

8.0%

32.8%

Cloyd Bank & Trust - Page 11