CMS Case Study

• Use Referral Sources, often existing satisfied customers, and cultivate new ones • Ask for referrals from existing satisfied customers • Develop relationships with your customers accountants/CPA’s, attorneys and other professionals • Use and engage local boards • Use RDC to sell against location issues

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Capital Plan

Our $1 Billion by 2025 strategic initiative is an aspirational goal that must be underpinned by sound capital management. To that end, we have created a capital plan that ensures we remain well capitalized by both regulatory definition and internal policy through December 31, 2025. Our capital plan assumes an annual growth rate in assets of 8.30%. This growth rate takes CB&T to $1.001 billion in assets at 12/31/20 (bank-level). We believe that 8.30% is achievable based on our historical growth rates. Our capital plan also assumes modest increases to our bank-level return on average assets (“ROAA”) builds from 1.09% in late 2021 to 1.20% in late 2025. We believe this level of earnings is achievable through proactive margin management, a focus on non-interest income and quite simply the leveraging of our fixed non-interest expenses over an ever-increasing asset base. A portion of the earnings of our banking subsidiary (CB&T) will be upstreamed to our parent company (Cloyd B & T Holdings, Inc.) to support parent-level debt service and general working capital requirements at our parent company. The remainder of our bank-level earnings will be retained to support CB&T’s balance sheet growth. In order to minimize the amount of bank-to-parent dividends, we assumed a suspension of our stock buyback program although it could certainly be reinstated if conditions warrant. Additionally, we assumed a modest increase in shareholders dividends of $0.05/share per year. To help support the growth of the bank, we obtained a holding company loan from another bank currently under an interest-only structure, but which converts to an amortizing loan in May 2022. We may potentially refinance this debt in May 2022 with senior debt that is interest-only for 5 years. Our capital plan assumes the senior debt taking out the holding company loan in May 2022. The specifics of our Capital Plan follow.

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