CMS Case Study

Summary of Potential Strategies - 03/31/2021

STRATEGY

EXPECTED RESULTS

RISKS

1.

Deposit/Funding Strategies :

 Discuss @ ALCO

 Liquidity

 Deposit Pricing/Growth - Review current rates and discuss ability to reduce further. - Update on Public Deposit Balances/Pricing and Collateral. - Update on competitive landscape.  Opportunities?  Challenges? - Discuss pricing strategy relative to future market rate increases.

 IRR

 Discuss @ ALCO

 Liquidity Planning

- What are we targeting for on balance sheet liquidity? - Expectations for deposit balances. Impact of rising rates? - NMDs up $172MM in last 12 months. How much is at risk?

 Reduced asset sensitivity

 How much could we absorb if more than expected?

 Reduced liquidity

Review stress test simulation reducing NMD balances by $50million, offset with cash.

Cloyd Bank & Trust - Page 36