CMS Case Study

Economic Value of Equity (EVE) - Removal of Functional Costs & NMD Avg. Life Ext. - 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% 575,048 100,918 46,929

401,969 381,253 55,974 839,196 -6.89% 550,423 99,788 46,929

379,155 372,486 55,974 807,615 -10.40% 527,935 98,690 46,929

357,390 364,182 55,974 777,545 -13.73% 507,366 97,623 46,929

Loans

Other Assets Total Assets

% Change from 0 Shock LIABILITIES Non-Maturity Deposits

2.17%

635,878 102,722 46,929

602,057 102,082 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

789,220

754,759

726,587 -3.73%

700,832 -7.14%

677,246 -10.27%

655,610 -13.14%

% Change from 0 Shock

8.17%

4.57%

ECONOMIC VALUE OF EQUITY (EVE)

80,393

131,660

146,582

145,095

138,364

130,370

121,935

EVE % Change from 0 Shock

-10.2% -10.0%

-1.0% -10.0%

-5.6% -20.0%

-11.1% -30.0%

-16.8% -40.0%

Policy Limits

EVE Ratio (EVE/EVA)

9.0%

14.3%

16.3%

16.6%

16.5%

16.1%

15.7%

Policy Limits

6.0%

6.0%

6.0%

6.0%

6.0%

EVE Ratio BP Change from 0 Shock

-197

38

23

-12

-58

EVE % Change from 0 Shock

EVE Ratio (EVE/EVA)

EVE Ratio BP Change from 0 Shock

20.0%

0.0%

100

-10.0%

15.0%

0

-20.0%

10.0%

-100

-30.0%

5.0%

-200

-40.0%

0.0%

-50.0%

-300

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 6.5 years

1. Alt. EVE assumes the removal of functional costs on deposits & average life of 6.5 years for NMDs (Base EVE assumes 5 year average life).

Cloyd Bank & Trust - Page 41