CMS Case Study

Basic Surplus Report - 9/30/2021

Other Liquidity Items Other Investments

TIER 1 BASIC SURPLUS

TOTAL ASSETS 896,832

Overnight Funds Sold & Short-Term Investments (avg. balance, if wide daily fluctuations) 43,992 TREASURIES & AGENCIES AGENCY MBS/CMO NON-AGENCY MBS/CMO Collateral Value 100% 95% 90% Market Value 18,649 334,197 0 Less Securities Pledged to: FHLB 0 -1,079 0 Fed Discount/Other Secured 0 0 0 Wholesale Repos 0 0 0 Retail Repos/Sweeps -3,364 -27,331 0 Municipal Deposits -1,035 -153,865 0 Other 0 0 0 Available / Unencumbered Security Collateral 14,250 144,326 0 158,575

MARKET VALUE

PLEDGED AVAIL.

Corporates Municipals

3,566

0 3,566

41,906

23,160 18,746

Equities

0 0

0 0

0 0

Other Total

45,472

23,160 22,312

Borrowing Lines

SECURED LINE OUTSTANDING AVAIL. Fed BIC Lines 0 0 0

Fed Discount / Other

2,624

0 2,624

UNSECURED Fed Funds Lines

31,425 34,049

0 31,425 0 34,049

Total

Over Collateralized Securities Pledging Position 64,251 Cash flow (< 30 Days) from Securities not listed above 600

Unrealized Gain/Loss on Securities (AFS & HTM)

Other Liquid Assets (Int Bearing Deposits, MM Mutual Funds, etc.)

1,734 Total Liquid Assets 269,152

TIER 1 % OF ASSETS

TOTAL PORTFOLIO

TIER 1 BASIC SURPLUS BONDS

Volatile Liabilities Coverage: Maturing Unsecured Liabilities (< 30 Days)

Base

2,902

1,391 0.2% -16,586 1.9% -17,978 2.0%

0

Shock Up 100BP -17,525

Additional Liquidity Reserve(s) 0 Deposit Coverage (7% of Assets/8% of Deposits) (65,044) Tier 1 Basic Surplus ($ and % of assets) 204,108

Difference -20,426

POLICY LIMITS (min) Well Cap. < Well Cap. 0.0% 2.0%

Notes 1. The total amount of public deposits requiring collateral as of 09/30/2021 is $125MM. 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.

22.8%

TIER 2 BASIC SURPLUS

A. Maximum Borrowing Line at FHLB (Up to 25% of Assets) 224,208 B. Loan Collateral at the FHLB (net of haircut) 46,532 C. Excess Loan Collateral (if A < B) 0

Maximum Borrowing Capacity (Lesser of A or B) 46,532 Collateral Currently Encumbered by Outstanding Advances/Letters of Credit 35,000 Remaining FHLB Loan Based Borrowing Capacity 11,532 Tier 2 Basic Surplus 215,640

4.0% 8.0%

24.0%

TIER 3 BASIC SURPLUS Maximum Board Authorized Brokered Deposit Capacity (Policy Limit of 15% of Assets) 134,525 Current Brokered Deposit Balances 0 Remaining Capacity to Utilize Brokered Deposits 134,525

Tier 3 Basic Surplus 350,165

8.0%

39.0%

Cloyd Bank & Trust - Page 11