CMS Case Study

Economic Value of Equity (EVE) - Removal of Functional Costs - 9/30/2021

Rate Shock Scenarios

ASSETS

0 Shock

+100BP

+200BP

+300BP

+400BP

-100BP

BOOK

Investments

445,239 395,619 55,974 896,832 -0.50% 663,677 102,141 46,929

460,294 404,612 55,974 920,879

445,149 400,219 55,974 901,341

424,722 390,986 55,974 871,682 -3.29% 599,013 100,918 46,929

401,969 381,253 55,974 839,196 -6.89% 578,937 99,788 46,929

379,155 372,486 55,974 807,615 -10.40% 560,356 98,690 46,929

357,390 364,182 55,974 777,545 -13.73% 543,132 97,623 46,929

Loans

Other Assets Total Assets

% Change from 0 Shock LIABILITIES Non-Maturity Deposits

2.17%

646,023 102,722 46,929

620,740 102,082 46,929

Time Deposits

Borrowings

Other Liabilities Total Liabilities

3,692

3,692

3,692

3,692

3,692

3,692

3,692

816,439

799,365

773,443

750,552 -2.96%

729,346 -5.70%

709,667 -8.25%

691,376 -10.61%

% Change from 0 Shock

5.56%

3.35%

ECONOMIC VALUE OF EQUITY (EVE)

80,393

121,514

127,899

121,130

109,850

97,948

86,170

EVE % Change from 0 Shock

-5.0% -10.0%

-5.3% -10.0%

-14.1% -20.0%

-23.4% -30.0%

-32.6% -40.0%

Policy Limits

EVE Ratio (EVE/EVA)

9.0%

13.2%

14.2%

13.9%

13.1%

12.1%

11.1%

Policy Limits

6.0%

6.0%

6.0%

6.0%

6.0%

EVE Ratio BP Change from 0 Shock

-99

-29

-110

-206

-311

EVE % Change from 0 Shock

EVE Ratio (EVE/EVA)

EVE Ratio BP Change from 0 Shock

15.0%

0.0%

0

-10.0%

-100

10.0%

-20.0%

-200

5.0%

-30.0%

-300

-40.0%

0.0%

-50.0%

-400

Policy Limit -100BP +100BP +200BP +300BP +400BP

-100BP

0 Shock

+100BP

+200BP

+300BP

+400BP

-100BP +100BP +200BP +300BP +400BP

Policy Limit

*The average life on non-maturity deposits is assumed to be 5 years

1. Alt. EVE assumes the removal of functional costs.

Cloyd Bank & Trust - Page 40