CMS Case Study

5 Year NII Simulation - 12M Ramps - 3/31/2021

Base Simulation as of 03/31/2021

Base Simulation as of 12/31/2020

Quarterly Net Interest Income (NII) Projections

Quarterly Net Interest Income (NII) Projections

6,575

YEAR 1

YEAR 2

YEAR 3

YEAR 4

YEAR 5

YEAR 1

YEAR 2

YEAR 3

YEAR 4

YEAR 5

5,825

5,075

4,325

3,575

2,825

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

20,580 20,298 21,120 22,001 22,850 19,980 18,312 17,513 16,855 16,557 19,734 17,402 16,110 15,139 14,623

877

301

281

374

463 19,702 19,997 20,839 21,627 22,386

1,191 1,161 1,196 1,224 1,315 18,789 17,151 16,317 15,631 15,242

BASE

DOWN 100BP

1,114

773

526

377

322 18,619 16,629 15,584 14,762 14,302

DIFFERENCE 1. This quarter's NII model includes $22.4MM of PPP loans of which 85% will be forgiven in Q2/Q3 2021, with the remaining 15% amortized off evenly over the following 9 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 $819K (following the same schedule as PPP forgiveness).

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