CMS Case Study

Year 1 Investment Cashflow into Loans - 12/31/2021

Year 1 Investment Cashflow into Loans

Base Simulation as of 12/31/2021

Quarterly Net Interest Income (NII) Projections

Quarterly Net Interest Income (NII) Projections

9,075

YEAR 1

YEAR 2

YEAR 3

YEAR 4

YEAR 5

YEAR 1

YEAR 2

YEAR 3

YEAR 4

YEAR 5

8,100

7,125

6,150

5,175

4,200

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Up 400BP 24M Flat Up 200BP

Up 200BP

Base

Up 400BP 24M Flat Up 200BP

Up 200BP

Base

NII RESULTS

Y1

Y2

Y3

Y4

Y5

Y1

Y2

Y3

Y4

Y5

Y1

Y2

Y3

Y4

Y5

UP 400BP 24M FLAT UP 200BP

22,602 21,636 23,365 27,410 30,960 22,216 21,527 22,074 23,043 23,876 22,535 22,827 24,416 26,421 28,200 23,196 23,003 22,844 23,031 23,253

290 322 292

645 700 621

816 734 670

977 1,100 22,311 20,991 22,549 26,433 29,861 782 21,894 20,826 21,340 22,281 23,093 737 22,243 22,206 23,746 25,713 27,463 761 708

UP 200BP

0

0

0

0

0 23,196 23,003 22,844 23,031 23,253

BASE

DIFFERENCE

YR 2 % CHANGE FROM YR 1 BASE POLICY

Y1 POLICY

Y2

Y1

Y2

POLICY

Y1 POLICY

Y2

UP 400BP 24M FLAT UP 200BP

-2.6% -4.2%

-6.7% -7.2%

1.3% 1.4% 1.3%

2.8% 3.0% 2.7% 0.0%

-3.8% -5.6%

-9.5%

-10.2%

UP 200BP

-15.0% -2.8% -15.0% -1.6%

-15.0% -4.1% -15.0% -4.3%

-0.8%

-0.8%

BASE

DIFFERENCE 1. Alternative simulation assumes 100% of first year investment cashflows are utilized to fund loans in the rising rate scenarios. Base simulation assumes 100% of all investment cashflows are replaced with 20Yr MBS (yielding 2.36%). 2. Year 1 investment cashflows are replaced 40% into C+I 4Yr Fixed loans @ 3.75%, 40% into CRE 5Yr Fixed loans @ 3.95%, and 20% into Resi 30Yr Fixed loans @ 3.00%.

Cloyd Bank & Trust - Page 38