CMS Case Study

Summary of Potential Strategies - 03/31/2021

STRATEGY

EXPECTED RESULTS

RISKS

2. Investments:

 Discuss @ ALCO

 Liquidity

 $75MM of Cash (after subsequent purchases), $22MM of PPP, $29MM of investment cashflow over the next 12 months and more Public deposit inflows on the way?

 IRR

 Discuss @ ALCO

 Review Impact of steeper curve on pricing and yield.

 Discuss in terms of Liquidity position and IRR.

 Discuss benefits/risks of additional investment purchases. Pre-investment options?

Review impact of subsequent investment purchases.

3. Loans:

 Discuss @ ALCO

 Credit

 Loan Growth Capacity

 Liquidity

- Planning and expectations for volume? - Impact on liquidity? - Impact on IRR? - PPP Update.

 IRR

 Discuss @ ALCO

 Loan Growth Outlook - CRE Update. - C&I Update. - Residential Update. - Consumer/Other.

Review impact of $50million of projected loan growth to earnings, liquidity and IRR.

 Loan Pricing -

Will excess liquidity in the system pressure loan rates further.

Cloyd Bank & Trust - Page 37