CMS Case Study

Basic Surplus Report - 6/30/2021

Other Liquidity Items Other Investments

TIER 1 BASIC SURPLUS

TOTAL ASSETS 830,396

Overnight Funds Sold & Short-Term Investments (avg. balance, if wide daily fluctuations) 91,220 TREASURIES & AGENCIES AGENCY MBS/CMO NON-AGENCY MBS/CMO Collateral Value 100% 95% 90% Market Value 13,559 235,486 0 Less Securities Pledged to: FHLB 0 -1,171 0 Fed Discount/Other Secured 0 0 0 Wholesale Repos 0 0 0 Retail Repos/Sweeps -3,734 -27,214 0 Municipal Deposits -1,266 -95,265 0 Other 0 0 0 Available / Unencumbered Security Collateral 8,559 106,244 0 114,803

MARKET VALUE

PLEDGED AVAIL.

Corporates Municipals

300

0 300

37,605

25,884 11,721

Equities

0 0

0 0

0 0

Other Total

37,905

25,884 12,021

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 10,797

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

0 Other Liquid Assets 4,249 Total Liquid Assets 221,069

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

1,887

347 0.0%

0

Shock Up 100BP -12,190

-11,711 1.4% -12,058 1.5%

Additional Liquidity Reserve(s) 0 Deposit Coverage (7% of Assets/8% of Deposits) (57,840) Tier 1 Basic Surplus ($ and % of assets) 163,229

Difference -14,077

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 $128MM ($20 million pledged through municipal securities). 2. The bank has municipal securities pledged to the Fed Discount Window. Available line = $2.6 million (net haircut). 3. Outstanding borrowings include a $15MM Letter of Credit which is pledged to municipal deposits.

19.7%

TIER 2 BASIC SURPLUS

A. Maximum Borrowing Line at FHLB (Up to 25% of Assets) 207,599 B. Loan Collateral at the FHLB (net of haircut) 45,333 C. Excess Loan Collateral (if A < B) 0

Maximum Borrowing Capacity (Lesser of A or B) 45,333 Collateral Currently Encumbered by Outstanding Advances/Letters of Credit 35,000 Remaining FHLB Loan Based Borrowing Capacity 10,333 Tier 2 Basic Surplus 173,562

4.0% 8.0%

20.9%

TIER 3 BASIC SURPLUS Maximum Board Authorized Brokered Deposit Capacity (Policy Limit of 15% of Assets) 124,559 Current Brokered Deposit Balances 0 Remaining Capacity to Utilize Brokered Deposits 124,559

Tier 3 Basic Surplus 298,121

8.0%

35.9%

Cloyd Bank & Trust - Page 11