CMS Case Study

Basic Surplus Report - 3/31/2021

Other Liquidity Items Other Investments

TIER 1 BASIC SURPLUS

TOTAL ASSETS 790,352

Overnight Funds Sold & Short-Term Investments (avg. balance, if wide daily fluctuations) 146,145 TREASURIES & AGENCIES AGENCY MBS/CMO NON-AGENCY MBS/CMO Collateral Value 100% 95% 90% Market Value 4,901 146,297 0 Less Securities Pledged to: FHLB 0 -1,343 0 Fed Discount/Other Secured 0 0 0 Wholesale Repos 0 0 0 Retail Repos/Sweeps -3,641 -23,630 0 Municipal Deposits -1,260 -98,898 0 Other 0 0 0 Available / Unencumbered Security Collateral 0 21,304 0 21,304

MARKET VALUE

PLEDGED AVAIL.

Corporates Municipals

1,531

0 1,531

37,122

23,152 13,970

Equities

0 0

0 0

0 0

Other Total

38,653

23,152 15,500

Borrowing Lines

SECURED LINE OUTSTANDING AVAIL. Fed BIC Lines 0 0 0

Fed Discount / Other

2,616

0 2,616

UNSECURED Fed Funds Lines

31,425 34,041

0 31,425 0 34,041

Total

Over Collateralized Securities Pledging Position 27,332

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

0 Other Liquid Assets 4,929 Total Liquid Assets 199,710

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

2,052 -7,266 -9,318

817 0.1%

0

Shock Up 100BP

-6,301 0.8% -7,118 0.9%

Additional Liquidity Reserve(s) 0 Deposit Coverage (7% of Assets/8% of Deposits) (55,960) Tier 1 Basic Surplus ($ and % of assets) 143,750

Difference

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

Notes 1. The total amount of public deposits requiring collateral as of 3/31/2021 is $109MM ($20 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.

18.2%

TIER 2 BASIC SURPLUS

A. Maximum Borrowing Line at FHLB (Up to 25% of Assets) 197,588 B. Loan Collateral at the FHLB (net of haircut) 44,760 C. Excess Loan Collateral (if A < B) 0

Maximum Borrowing Capacity (Lesser of A or B) 44,760 Collateral Currently Encumbered by Outstanding Advances/Letters of Credit 35,000 Remaining FHLB Loan Based Borrowing Capacity 9,760 Tier 2 Basic Surplus 153,510

4.0% 8.0%

19.4%

TIER 3 BASIC SURPLUS Maximum Board Authorized Brokered Deposit Capacity (Policy Limit of 15% of Assets) 118,553 Current Brokered Deposit Balances 0 Remaining Capacity to Utilize Brokered Deposits 118,553

Tier 3 Basic Surplus 272,063

8.0%

34.4%

Cloyd Bank & Trust - Page 11