CMS Case Study

5 Year NII Simulation - 12M Ramps - 9/30/2020

Base Simulation as of 09/30/2020

Base Simulation as of 06/30/2020

Quarterly Net Interest Income (NII) Projections

Quarterly Net Interest Income (NII) Projections

6,225

YEAR 1

YEAR 2

YEAR 3

YEAR 4

YEAR 5

YEAR 1

YEAR 2

YEAR 3

YEAR 4

YEAR 5

5,575

4,925

4,275

3,625

2,975

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

19,285 19,355 19,617 20,411 21,144 18,727 17,560 16,316 15,698 15,266 18,608 17,200 15,792 15,072 14,576

-704 -1,099 -804 -815 -771 19,989 20,453 20,421 21,226 21,915 -608 -998 -697 -742 -675 19,335 18,558 17,012 16,440 15,941

BASE

DOWN 100BP -722 -1,181 -918 -988 -972 19,329 18,382 16,710 16,060 15,548 DIFFERENCE 1. This quarter's NII model includes $40.3MM of PPP loans of which 85% will be forgiven in Q4 2020 and Q1 2021 (evenly over each quarter), with the remaining 15% amortized off evenly over the following 15 months. Accordingly, 50% PPP loan cash flows are assumed to be parked in short-term cash (@ 0.10%) and 50% are assumed to roll off in tandem with DDA-PPP. 2. The NII model also includes PPP fee income totaling $1.26MM (60K/month over 21 months).

Cloyd Bank & Trust - Page 20