CMS Case Study

Index MMDA to Prime & Year 1 Investment Cashflow into Loans - 12/31/2021

Index MMDA to Prime & 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

9,575

YEAR 1

YEAR 2

YEAR 3

YEAR 4

YEAR 5

YEAR 1

YEAR 2

YEAR 3

YEAR 4

YEAR 5

8,475

7,375

6,275

5,175

4,075

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

23,033 22,705 24,724 28,766 32,315 22,647 22,250 22,797 23,765 24,598 22,966 23,549 25,137 27,141 28,919 23,280 23,089 22,931 23,118 23,340

722 1,714 2,175 2,333 2,455 22,311 20,991 22,549 26,433 29,861 754 1,424 1,457 1,484 1,505 21,894 20,826 21,340 22,281 23,093 723 1,343 1,391 1,428 1,457 22,243 22,206 23,746 25,713 27,463

UP 200BP

85

86

87

87

86 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

-1.1% -2.7%

-2.5% -4.4%

2.8% 2.9% 2.8%

7.0% 5.8% 5.4% 0.0%

-3.8% -5.6%

-9.5%

-10.2%

UP 200BP

-15.0% -1.3% -15.0% 1.2%

-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. Alternative simulation assumes MMDA accounts are indexed as follows: ($0-19K tied to 3% of Prime, $20K-$49K tied to 4% of Prime, $50K-$99K tied to 5% of Prime, $100K-$249K tied to 6% of Prime, $250K+ tied to 7% of Prime).

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