CMS Case Study

As of and for the Year Ending December 31,

2020

2021

2022

2023

2024

2025

BALANCE SHEET Total Assets Loan Outstandings

671,788,921 $

727,547,401 $

787,933,835 $

853,332,343 $

924,158,928 $

1,000,864,119 $

378,783,859 557,960,269 134,572,528 423,387,741

410,222,920 604,270,971 145,742,048 458,528,923

444,271,422 654,425,462 157,838,638 496,586,824

481,145,950 708,742,775 170,939,244 537,803,530

521,081,064 767,568,425 185,127,202 582,441,224

564,330,792 831,276,605 200,492,759 630,783,845

Total Deposits

Non-Interest Bearing

Interest Bearing

Loans/Deposits

67.89%

67.89%

67.89%

67.89%

67.89%

67.89%

Assets/Employee

5,945,035

5,774,186

6,061,030

6,095,231

6,601,135

6,902,511

Employees

113

126

130

140

140

145

INCOME STATEMENT Return on Average Assets

1.06%

1.09%

1.12%

1.14%

1.17%

1.20%

Net Income

6,719,654

7,603,514

8,452,835

9,390,762

10,426,154

11,568,728

BANK-TO-PARENT ACTIVITY Beginning Retained Earnings

24,849,755 6,719,654

31,249,409 7,603,514

38,455,128 8,452,835

46,907,963 9,390,762

56,298,725 10,426,154 (1,725,090) 64,999,789

64,999,789 11,568,728 (2,987,276) 73,581,241

Bank Net Income Dividends to Parent

(397,795)

-

-

(320,000)

Retained Earnings at Bank

31,249,409

38,455,128

46,907,963

56,298,725

BANK-LEVEL CAPITAL Tier 1 Leverage Capital Tier 1 Leverage Ratio

$64,555,696

$71,761,415

$80,214,250

$89,605,012

$98,306,076 $106,887,529

9.70%

9.96%

10.28%

10.60%

10.74%

10.78%

Notes: - Balance sheet figures reflect removal of PPP balances. - Assumed growth in balance sheet items of 8.30% per year. - Assumed ROAA drives net income each year. - Bank-to-parent dividends fund debt service at the parent and shareholder dividends.

3.

Maintain Existing Culture

The culture of Cloyd Bank & Trust has been and remains a key component of the accomplishments of the Bank to date. Employee retention, a holistic approach to reaching goals, and a focus on the customer experience are all key areas of differentiation for the Bank. The goal as we move toward the close of 2025 is to change our Bank without changing who we are and what we represent. We understand that changes to our operation as we grow will occur, driven by modifications in our processes, procedures, job duties and skill-set requirements. There exists an understanding across the entire employee base that changes to our operation will occur. These will be driven by growth that drives changes in processes, procedures, job duties and skill-set requirements that will be modified over time. Some changes will occur as a direct result of efficiencies generated via an upgrade on our Core operating system, while others will stem from changes due to growth of individual employees that will replace older employees as they retire. Conversations and discussions surrounding core values occur almost daily, and particularly so against the backdrop of continued growth in the organization.

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