CMS Case Study

Cloyd Bank & Trust Policy Manual

Subject:

Asset/Liability & Funds Management Policy

Date: 1/20/22 Updated

Section:

Administration

Reviewed: 1/20/22

TABLE OF CONTENTS

Section 1. Section 2. Section 3. Section 4. Section 5. Section 6. Section 7. Section 8. Section 9. Section 10. The Purpose of Asset/Liability Management (ALM) ............................................. 2 Primary Objectives of Asset/Liability Management ............................................... 2 Authority for Asset/Liability Management ............................................................. 2 Responsibilities and Duties of ALCO ..................................................................... 3 ALCO Meetings ...................................................................................................... 4 Membership of Committee...................................................................................... 4 Liquidity Measurement and Management............................................................... 4 Interest Rate Risk Measurement and Management ................................................. 6 Independent Review of Interest Rate Risk Management Process ......................... 10 Related Policies ..................................................................................................... 10 Section 11. Annual Budget....................................................................................................... 11 Section 12. Financial Performance Objectives......................................................................... 11 Section 13. Compliance with Banking Laws & Regulations ................................................... 11 Section 14. Other Matters......................................................................................................... 11 APPENDIX 12 A. Wholesale Funding ...................................................................................................... 12 B. Liquidity Targets and Sample Calculation .................................................................. 14 C. Liquidity Contingency Plan .......................................................................................... 16 D. Interest Rate Risk Limits ............................................................................................. 17

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Approved by Board of Directors 1/20/22