CMS Case Study

Basic Surplus Report - 12/31/2020

Other Liquidity Items Other Investments

TIER 1 BASIC SURPLUS

TOTAL ASSETS 719,869

Overnight Funds Sold & Short-Term Investments (avg. balance, if wide daily fluctuations) 106,181 TREASURIES & AGENCIES AGENCY MBS/CMO NON-AGENCY MBS/CMO Collateral Value 100% 95% 90% Market Value 5,712 108,168 0 Less Securities Pledged to: FHLB 0 -1,517 0 Fed Discount/Other Secured 0 0 0 Wholesale Repos 0 0 0 Retail Repos/Sweeps -4,154 -25,833 0 Municipal Deposits -1,558 -65,207 0 Other 0 0 0 Available / Unencumbered Security Collateral 0 14,831 0 14,830

MARKET VALUE

PLEDGED AVAIL.

Corporates Municipals

300

0 300

35,817

23,305 12,512

Equities

0 0

0 0

0 0

Other Total

36,117

23,305 12,812

Borrowing Lines

SECURED LINE OUTSTANDING AVAIL. Fed BIC Lines 0 0 0

Fed Discount / Other

2,661

0 2,661

UNSECURED Fed Funds Lines

31,425 34,086

0 31,425 0 34,086

Total

Over Collateralized Securities Pledging Position 18,656

Cash flow (< 30 Days) from Securities not listed above

0 Other Liquid Assets 4,929 Total Liquid Assets 144,596

Unrealized Gain/Loss on Securities (AFS & HTM)

TIER 1 % OF ASSETS

TOTAL PORTFOLIO

TIER 1 BASIC SURPLUS BONDS

Volatile Liabilities Coverage: Maturing Unsecured Liabilities (< 30 Days)

Base

4,922 -180 -5,102

3,020 0.4% -127 0.0% -3,147 0.4%

0

Shock Up 100BP

Additional Liquidity Reserve(s) 0 Deposit Coverage (7% of Assets/8% of Deposits) (48,030) Tier 1 Basic Surplus ($ and % of assets) 96,566

Difference

POLICY LIMITS (min) Well Cap. < Well Cap. 0.0% 2.0%

Notes 1. The total amount of public deposits requiring collateral as of 12/31/2020 is $90MM ($18 million pledged through municipal securities). 2. The bank has municipal securities pledged to the Fed Discount Window. Available line = $2.7 million (net haircut). 3. Outstanding borrowings include a $15MM Letter of Credit which is pledged to municipal deposits.

13.4%

TIER 2 BASIC SURPLUS

A. Maximum Borrowing Line at FHLB (Up to 25% of Assets) 179,967 B. Loan Collateral at the FHLB (net of haircut) 42,168 C. Excess Loan Collateral (if A < B) 0

Maximum Borrowing Capacity (Lesser of A or B) 42,168 Collateral Currently Encumbered by Outstanding Advances/Letters of Credit 35,000 Remaining FHLB Loan Based Borrowing Capacity 7,168 Tier 2 Basic Surplus 103,735

4.0% 8.0%

14.4%

TIER 3 BASIC SURPLUS Maximum Board Authorized Brokered Deposit Capacity (Policy Limit of 15% of Assets) 107,980 Current Brokered Deposit Balances 0 Remaining Capacity to Utilize Brokered Deposits 107,980

Tier 3 Basic Surplus 211,715

8.0%

29.4%

Cloyd Bank & Trust - Page 11