CMS Case Study

Portfolio Restructuring for Cloyd Bank & Trust, Greenbow , AL

Transaction Summary (Pre-Tax) Institution Type: Bank

SELL 10,834,360 11,328,554 11,328,296

BUY

SELL BUY CHANGE

Book Yield: Market Yield: Average Life:

Original Portfolio Par: % Trans to Portfolio:

Par :

140,752,406 7.70%

11,400,514 11,400,514 10,964,195

0.55 0.59 1.74 1.11 3.35

1.25 1.25 6.94 4.90 1.90

0.70 0.66 5.20 3.79 -1.45

Market Value: Book Value : Gain (Loss) :

Effective Duration:

258

Coupon:

Historical scenario is selected

Portfolio Impact

Down 100 1.98%

Down 50 2.11%

2.18% Down 25

Historical 2.20%

Up 25 2.32% 2.32% 0.00% 1.28% 1.28% 0.00% -0.48% -0.56%

Up 50 2.40% 2.38% -0.02% 1.57% -1.02% -1.19% 1.57% 0.00%

4.18% -0.04% -10.50% -11.29% Up 300 2.73% 2.66% -0.07% 4.22%

Before After Change Before After Change Before After Before After Before After

1.98%

2.12%

2.19%

2.25% 0.05% 0.78% 0.83% 0.05% 0.00%

Book Yield

0.00%

0.01% 0.42% 0.42% 0.00% 0.98% 1.10%

0.01% 0.70% 0.71% 0.01% 0.51% 0.57% 1.95

-0.13% -0.16% -0.03% 1.83% 2.00%

Market Yield

% Price Change

0.00%

1.63 1.71

1.84 2.08 2.83 3.06

2.28 2.57 3.19

3.29 3.70 2.34 2.63

2.56

4.91 5.20 6.32

Effective Duration

2.20 2.94 3.25

2.86 3.52

2.65

Average Life

2.77

3.60

3.96

6.71

Change in Cashflows

Down 100 (2,116,638)

Down 50

Down 25

Historical (3,469,568) (1,500,853) (384,929) 135,561 371,585 (4,848,203)

Up 25

Up 50

Up 300 (548,814) (509,791)

Year 1 Year 2 Year 3 Year 4 Year 5 Sum

(2,507,179)

(2,633,169)

(2,410,299)

(2,092,770)

(558,228)

392,287 (3,052,645) (1,019,814) (154,412) 236,473

(1,233,807)

(1,423,177)

(1,367,077)

165,372 399,849

(343,205) 102,798 313,818

(651,692) (189,468) 82,579

(728,432) (310,662) (41,272) (4,540,214)

(426,688)

(352,604) (286,671) (2,124,568)

433,051

(1,676,594)

(3,793,565)

(4,592,057)

Cumulative Net Income

Down 100

Down 50

Down 25

Historical

Up 25

Up 50

Up 300

Income Impact

Gain with ▲ income Gain with ▲ income

Gain with ▲ income

Gain with ▲ income Gain with ▼ income

Gain with ▼ income Gain with ▼ income

Break-even Month Reinvestment Rate

N/A

N/A

N/A

N/A

N/A

N/A

N/A

0.21%

0.71%

0.96%

1.21%

1.46%

1.71%

4.21%

Year 1 Year 2 Year 3 Year 4 Year 5

$10,487

$18,095 $34,781 $49,983 $63,454 $75,206

$56,673 $66,864 $17,736 $32,450 $45,276

$62,116

($38,779) ($5,963) ($13,746) ($22,302) ($30,795)

($26,681) ($53,209) ($79,323) ($104,338) ($127,793)

($118,169)

$23,302

$95,717 $116,398 $130,241 $140,399

($241,669)

$35,229 $45,307 $53,468

($373,263) ($511,672) ($655,762)

This communication is from Raymond James & Associates, Inc. fixed incomePortfolioStrategy Group; it is not research. This communication is directed exclusively to institutional investors, for informationalpurposes only. The informationprovidedherein is not completeandmaynot be reliedon as such. We are onlyproviding this communicationon the condition that it will not form the basis for any investmentdecisionor strategyyoumaymake. Youmust independently determine the appropriatenessof an investment in any securities or strategy referred to hereinbasedon the array of informationavailable toyou,applicable legal, tax, and accountingconsiderations,aswellas yourown investment strategy and risk tolerance. Raymond James& Associates, Inc. disclaims responsibility for any such investmentdecision.You should assume Raymond James & Associates, Inc. that has a positionand will transact in any of the securitiesmentioned in this communication. Raymond James & Associates, Inc. may provide investment-banking services to any of the issuers mentioned inthis communication.The dataand values described hereinare calculatedbased on historical informationand should not be relied upon topredict future valuesor prices. Raymond James & Associates, Inc. has used sources it considers reliable. Any and all data, calculationsor expressions reflect the judgmentof the PortfolioStrategy Groupemployeeat the time ofwritingand are subject to change without notice. Raymond James& Associates, Inc. does not represent that this material is accurate, current or complete,and you should not rely upon it as such.

* Principal cashflows are displayed / Tax Rate=21% / Cost of Funds=0.51% / Subject to TEFRA / Reinvestment Rate=1.21% / Takeout Rate=0.25% / Pre-tax income is displayed

12/11/2020

Raymond James

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