Capital Markets School - Case Study

Cloyd Bank & Trust

Liquidity Risk Monitor As of 9/30/2021

USER RESPONSE

Indicators - Heightened Funding Needs

NO

YES

Stress Level

1. Loss of Key Personnel Affecting Depositor Relationship

N/A



Indicators - Capital at Risk

NO

YES

Stress Level

2. Operating Loss for Period

N/A



3. Well Capitalized Status Threatened by Credit Charge Offs

N/A



Indicators - Decrease in Funds Availability

NO

YES

Stress Level

4. Real or Perceived Negative Publicity

N/A



5. CAMELS 3 or Worse

N/A



6. Decrease in Available Fed Fund Lines

N/A



7. Downgrade IDC Rating

N/A



8. Downgrade in Credit Rating

N/A



9. Downgrade of FHLB / Repo Status

N/A



10. Increased Collateral Restrictions on Borrowing Lines

N/A



11. Operating Under Regulatory Order

N/A



12. Term to Maturity Restrictions on Borrowings

N/A



13. Turn Downs in Brokered CD Market

N/A



Risk Level 1

Risk Level 2

Risk Level 3

Current Value

06/30/2021 Value

Risk Level

Cons. Periods Triggered

Stress Level

Indicators - Heightened Funding Needs 1. $ Change in Loan Growth less Non-Brokered Deposit Growth (3 Months)

$10,000

$15,000

$20,000

-$52,448

-$33,998

N/A

N/A

N/A

2. % Change in Non-Maturity Deposit Balances (3 Months)

-5.00%

-7.00%

-10.00%

10.33%

5.28% N/A

N/A

N/A

3. % Change of Loans / Deposits (3 Months)

2.00%

5.00%

10.00%

-3.60%

-3.20% N/A

N/A

N/A

4. Unfunded Commitments / Total Assets

0.00%

0.00%

0.00%

10.91%

11.40% N/A

N/A

N/A

5. Unfunded Commitments / Total Loans

0.00%

0.00%

0.00%

24.33%

24.08% N/A

N/A

N/A

6. Undisbursed Commitments & LOCs

$0

$0

$0

$97,862,296

$94,694,525

N/A

N/A

N/A

7. Undisbursed Commitments

$0

$0

$0

$75,269,737

$72,814,376

N/A

N/A

N/A

8. Available Lines of Credit

$0

$0

$0

$41,626,220

$40,377,320

N/A

N/A

N/A

Indicators - Liquidity/Funding Ratios 9. Liquidity Ratio (Sources / Total Liabilities)

15.00%

12.50%

10.00%

37.98%

33.80% N/A

N/A

N/A

10. Basic Surplus – Tier 2

6.00%

5.00%

4.00%

24.04%

20.90% N/A

N/A

N/A

11. Basic Surplus – Tier 3

10.00%

9.00%

8.00%

39.04%

35.90% N/A

N/A

N/A

12. Basic Surplus – Tier 1

3.00%

1.50%

0.00%

22.76%

19.66% N/A

N/A

N/A

13. Brokered Deposits / Assets

10.00%

12.50%

15.00%

0.00%

0.00% N/A

N/A

N/A

14. Brokered Deposits / Total Deposits

5.00%

7.50%

10.00%

0.00%

0.00% N/A

N/A

N/A

15. Wholesale Funds / Assets

15.00%

17.50%

20.00%

2.23%

2.41% N/A

N/A

N/A

16. Loans / Deposits

90.00%

95.00%

100.00%

51.66%

55.26% N/A

N/A

N/A

17. Non-Core Dependency

15.00%

17.50%

20.00%

0.00%

0.00% N/A

N/A

N/A

18. Pledged Securities / Investments

60.00%

80.00%

100.00%

52.68%

53.85% N/A

N/A

N/A

Indicators - Capital at Risk 19. C&I Loans / Capital

150.00%

250.00%

350.00%

102.30%

93.64% N/A

N/A

N/A

20. Commercial RE Loans / Capital

200.00%

250.00%

300.00%

109.70%

105.87% N/A

N/A

N/A

21. Non-Agency Bonds / Capital

75.00%

150.00%

250.00%

58.16%

50.10% N/A

N/A

N/A

22. Tier One Leverage Capital Ratio

9.00%

7.00%

5.00%

9.26%

9.26% N/A

N/A

Level A

23. Tier One Risk Based Capital Ratio

10.50%

9.50%

8.50%

15.98%

16.59% N/A

N/A

N/A

24. Total Risk Based Capital Ratio

12.50%

11.50%

10.50%

17.24%

17.84% N/A

N/A

N/A

Composite Stress Level = N/A

Stress Levels

N/A - Normal course of business, no material threat of liquidity crisis. Level A - Heightened risk, reporting/monitoring. Level B - Preemptive action needed. Level C - Immediate emergency action required.

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© Darling Consulting Group 2021

12/13/2021 - 2:11 PM