CMS Case Study

Basic Surplus Report - 9/30/2020

TOTAL ASSETS 686,092

Other Liquidity Items Other Investments

TIER 1 BASIC SURPLUS

Overnight Funds Sold & Short-Term Investments (avg. balance, if wide daily fluctuations) 77,273 TREASURIES & AGENCIES AGENCY MBS/CMO NON-AGENCY MBS/CMO Collateral Value 100% 95% 90% Market Value 5,667 108,731 0 Less Securities Pledged to: FHLB 0 -1,706 0 Fed Discount/Other Secured 0 0 0 Wholesale Repos 0 0 0 Retail Repos/Sweeps -4,101 -25,092 0 Municipal Deposits -1,566 -70,303 0 Other 0 0 0 Available / Unencumbered Security Collateral 0 11,048 0 11,048

MARKET VALUE

PLEDGED AVAIL.

Corporates Municipals

300

0

300

34,163

23,801 10,362

Equities

0

0

0

Other Total

5,424

0 5,424

39,887

23,801 16,086

Borrowing Lines

SECURED

LINE OUTSTANDING AVAIL.

Fed BIC Lines

0

0

0

Fed Discount / Other

2,186

0 2,186

UNSECURED Fed Funds Lines

31,425 33,611

0 31,425 0 33,611

Total

Over Collateralized Securities Pledging Position 15,460 Government Guaranteed Loans 0

Unrealized Gain/Loss on Securities (AFS & HTM)

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

925 Other Liquid Assets 5,424 Total Liquid Assets 110,130

TIER 1 % OF ASSETS

TOTAL PORTFOLIO

TIER 1 BASIC SURPLUS BONDS

Base

4,935 1,305 -3,629

3,239 0.5% 1,404 0.2% -1,835 0.3%

Shock Up 100BP

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

0

Difference

Additional Liquidity Reserve(s) 0 Deposit Coverage (7% of Assets/8% of Deposits) (45,787) Tier 1 Basic Surplus ($ and % of assets) 64,343

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

Notes 1. The total amount of public deposits requiring collateral as of 9/30/2020 is $94MM ($19 million pledged through municipal securities). 2. The bank has municipal securities pledged to the Fed Discount Window. Available line = $2.2 million (net haircut). 3. Outstanding borrowings include a $15MM Letter of Credit which is pledged to municipal deposits.

9.4%

TIER 2 BASIC SURPLUS

A. Maximum Borrowing Line at FHLB (Up to 25% of Assets) 171,523 B. Loan Collateral at the FHLB (net of haircut) 38,604 C. Excess Loan Collateral (if A < B) 0

Maximum Borrowing Capacity (Lesser of A or B) 38,604 Collateral Currently Encumbered by Outstanding Advances/Letters of Credit 35,000 Remaining FHLB Loan Based Borrowing Capacity 3,604 Tier 2 Basic Surplus 67,947

4.0% 8.0%

9.9%

TIER 3 BASIC SURPLUS

Maximum Board Authorized Brokered Deposit Capacity (Policy Limit of 15% of Assets) 102,914 Current Brokered Deposit Balances 0 Remaining Capacity to Utilize Brokered Deposits 102,914

Tier 3 Basic Surplus 170,861

8.0%

24.9%

Cloyd Bank & Trust - Page 11