CMS Case Study

Summary of Potential Strategies - 6/30/2021

STRATEGY

EXPECTED RESULTS

RISKS

3. Investments: Challenging environment.

 Discuss @ ALCO.

 Discuss @ ALCO.

 Plan for upcoming cashflow (Investments $20MM over next 6 months).

 Are we comfortable with the level of cash on the balance sheet at $50MM?

 Discuss “policy” limits and revisions for January board meeting.

 Spreads remain compressed across all sectors.

 Beware “premium risk”, again!

 Consider lowering deposit rates first, investment strategies to follow.

4. Review Stress Tests for impact of lower rates on new volume loan cashflow and potential for credit spread compression in rising rate environments (Stress loan pricing and betas).

Cloyd Bank & Trust - Page 37