CMS Case Study

5 Year NII Simulation - 12M Ramps - 12/31/2020

Base Simulation as of 12/31/2020

Base Simulation as of 09/30/2020

Quarterly Net Interest Income (NII) Projections

Quarterly Net Interest Income (NII) Projections

6,375

YEAR 1

YEAR 2

YEAR 3

YEAR 4

YEAR 5

YEAR 1

YEAR 2

YEAR 3

YEAR 4

YEAR 5

5,675

4,975

4,275

3,575

2,875

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Up 200BP

Base

Down 100BP

Up 200BP

Base

Down 100BP

NII RESULTS

Y1

Y2

Y3

Y4

Y5

Y1

Y2

Y3

Y4

Y5

Y1

Y2

Y3

Y4

Y5

UP 200BP

19,702 19,997 20,839 21,627 22,386 18,789 17,151 16,317 15,631 15,242 18,619 16,629 15,584 14,762 14,302

418

642 1,223 1,216 1,242 19,285 19,355 19,617 20,411 21,144

62 -409

2

-68

-24 18,727 17,560 16,316 15,698 15,266

BASE

DOWN 100BP 12 -571 -208 -310 -274 18,608 17,200 15,792 15,072 14,576 DIFFERENCE 1. This quarter's NII model includes $26.6MM of PPP loans of which 85% will be forgiven in Q1/Q2 2021, with the remaining 15% amortized off evenly over the following 12 months. Accordingly, 100% of PPP loan cash flows are assumed to be parked in short-term cash (@ 0.10%). 2. The NII model also includes PPP fee income totaling $673K (following the same schedule as PPP forgiveness).

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