Conquering the Liquidity and Pricing Dilemma on … Resources...Annual Interest Expense $184,088.85...

copy 2019 Darling Consulting Group Inc bull 260 Merrimac Street bull Newburyport MA 01950 bull Tel 9784630400 bull DarlingConsultingcom

Risk Management Strategy amp Solutions

FHLB Des Moines Regional Member Meetings

Spring 2019

Conquering the Liquidity and Pricing Dilemma on Both Sides of the Balance Sheet

copy 2019 Darling Consulting Group Inc Page 2

Challenges of a Flattening Yield Curve

Asset Yields

Funding Costs

copy 2019 Darling Consulting Group Inc Page 3 Page 3 copy 2019 Darling Consulting Group Inc

Todayrsquos Focus

Deposits Expect costs to continue to increase

Lending

Activity slowing while spreads tightening Institutions rethinking growth at thinner margins

Interest Rate Risk

Uncertainty abounds donrsquot lose sight of rates falling Market expects a rate cut before a rate hike

Regulatory

All eyes on liquidity

copy 2019 Darling Consulting Group Inc


Liquidity Management 5 Areas of Focus

1 Identify Your Liquid Asset Cushion

2 Overcome Regulatory Pressures on PVL

3 Develop a Dynamic Forecast amp Stress Test Framework

4 Revitalize Your Risk Monitor

5 Deposit Strategies to Improve Liquidity



FirsthellipAddressing Regulatory Concerns

Potentially volatile funding sources Understand your concentrations High rate deposits Uninsured deposits Single source concentrations

Liquid asset pressure

Dynamic forecasting and stress testing No one is immune

ldquoThe declining liquid asset cushions and increased use of potentially non-stable liquidity sourceshellipsuggest that small banks as a group are increasing their liquidity risk profileshelliprdquo ndash FDIC Supervisory Insights

Summer 2017


Liquidity Trends


Loan growth continues to outpace deposit growth

Institutions have shifted cash flows from investments into loans

Source SampP Global

copy 2019 Darling Consulting Group Inc Page 7 copy 2019 Darling Consulting Group Inc Page 7

Identify Your Liquid Asset Cushion


Identify Liquid Asset Cushion

TOTAL ASSETS =Overnight Funds Sold amp Short-Term Investments (avg balance if wide daily fluctuations)

Security Collateral

Total Market Value of SecuritiesLess Securities Pledged to

FHLBFed DiscountOther Secured

Wholesale ReposRetail ReposSweeps

Municipal DepositsOther

Available Unencumbered Security Collateral

Total Unpledged Securities

Over Collateralized Securities Pledging Position

Cash flow (lt 30 Days) from Securities not listed above

Other Liquid Assets

TOTAL LIQUID ASSETS 102

0

Pct Of Assets0

122500

0

35000 47500 0

82500

0 0 00 -25000 00 -10000 0

0 0 00 0 0

0 0 0

35000 85000 0

MunisCollateral Value 100 95 90

UST amp Agency MBS CMOsAgency Backed

I LIQUID ASSETS

400001200000

Basic Surplus


Strategy Considerations

Define liquid asset cushion

May have to be more offensive in deposit pricing strategies

Consider alternative pledging options

Maximize alternative funding sources

Defend with ldquoTotalrdquo liquidity (next slide)

If ldquotighterrdquo liquid asset cushion then consider

Keep cash to work Identify ability to shift

liquidity into loans Consider more of a

defensive deposit strategy


Develop a strong contingency funding plan

If ldquostrongerrdquo liquid asset cushion then consider

copy 2019 Darling Consulting Group Inc 0 copy 2019 Darling Consulting Group Inc Page 10

Availability of Wholesale Funding Channels


ldquoAn institution should diversify available funding sources in the short- medium- and long-term Funding should also be diversified across a full range of retail as well as secured and unsecured wholesale sources of funds consistent with the

institutions sophistication and complexityrdquo

ndash Interagency Policy Statement on Liquidity Spring 2010

Wholesale FundingEncouraged not Villainized





Total Liquidity Focus

Reserve based on funding concentrations

Available borrowing capacity vs wholesale reliance

Brokered capacity

Maturing Unsecured Liabilities (lt 30 Days)

Deposit Coveragesof CDs Maturing lt 30 Daysof Jumbo CDs Maturing lt 30 Daysof Other Deposits

TOTAL SHORT TERM POTENTIALLY VOLATILE LIABILITIES amp COVERAGES

BASIC SURPLUS

A Maximum Borrowing Line at FHLB B Qualifying Loan Collateral at the FHLB (net of haircut)C Excess Loan Collateral (if A lt B)

Maximum Borrowing Capacity (Lesser of A or B)Collateral Currently Encumbered by Outstanding AdvancesLetters of Credit

REMAINING FHLB LOAN BASED BORROWING CAPACITY

BASIC SURPLUS W FHLB

Maximum Board Authorized Brokered Deposit Capacity (10 of Total Assets)Current Brokered Deposit Balances

REMAINING CAPACITY TO UTILIZE BROKERED DEPOSITS

BASIC SURPLUS W FHLB amp BROKERED DEPOSITS

1200000

120000

385000 321

265000 221

IV BROKERED DEPOSIT ACCESS

325000105000

220000

III QUALIFYING FHLB LOAN COLLATERAL

420000325000

77500

45000 38

30 500010 65000

II SHORT TERM POTENTIALLY VOLATILE LIABILITIES amp COVERAGES

5000

25 2500

Basic Surplus


Revitalize Your Risk Monitor


Revisit Your Risk Monitor

Source Liquidity360degreg


Management Response

Potential volatile liabilities have increased to 29 and have triggered Risk Level 1 Management has applied a low stress level response as the total liquidity position (on-balance sheet as well as access to wholesale funding) remains strong Additionally the high concentration of volatile deposits have been analyzed and defended based on the strong core relationship with the customers Management will continue to closely monitor changes to liquidity levels moving forward


Identify At-Risk Customer Concentration (Potentially Volatile Liabilities)


High Rate Deposits (eg reference point = national rate caps)

Uninsured Deposits

Concentrations (eg depositors Funding Types amp Potential Risk Municipal Public Funding Reciprocal Depositors Large Single Source Relationships (eg gt=2 of total deposits)

Areas of PVLshellipRegulatory Focus


Product National Rate

Rate Cap

Savings 010 085

Checking 006 081

MMDA 018 093

6M CD 038 113

12M CD 065 140

24M CD 085 160

36M CD 098 173


Rate Cap

Savings 006 081

Checking 004 079

MMDA 009 084

6M CD 017 092

12M CD 029 104

24M CD 044 119

36M CD 059 134


Rate Cap

Savings 006 081

Checking 004 079

MMDA 008 083

6M CD 013 088

12M CD 022 097

24M CD 036 111

36M CD 049 124

Regulatory Concerns High Rate Deposits

December 2016 December 2017 March 2019

Fed Funds 75 FHLB 1 Year 115

Brokered CD 1 Year 110

150 205 190

225 270 245


Local Deposit Rates vs FDIC Rate Caps

SampP Global

FDIC High Rate Deposit levels (as of 3419)

FHLB Dividend Adjusted Rates (3419)


High Rate Deposit (per National Rate Caps)

Source Deposits360degreg


Uninsured Deposits Relationships

50 of Total Balances



Uninsured Customer Segmentation



Potentially Volatile Uninsured Customer Base



Develop a Dynamic Forecast amp Stress Test Framework


Dynamic Liquidity Forecast


$40MM loan growth $34MM deposit growth





Liquidity Stress Testing

bull Collateral haircuts bull Loan Cash Flows (NPAs ProductionGrowth) bull Deposit Runoff bull Below well-capitalized (low probabilityhigh risk)

Contracting Economy

bull Loan growth gt deposit growth bull Collateral Valuations (ie depreciation) bull Higher wholesale levels

Expanding Economy

bull Deposit concentrations (Potential Volatility) bull ICSCDARs bull Loan concentrations

Institution-Specific

bull Industry specific bull Environmental threats Regional


Liquidity Stress Testing amp Key Components

Deposit runoff (from study) Increased haircuts (last crisis)

Remove unsecured funding lines How long until we feel the pressure

Moderate Stress Scenario


Worst Case Scenario amp Remediation Plan Severe Stress Scenario

Severe Stress Scenario Remediation Plan



Deposit Strategies to Improve Liquidity


Industry Deposit Pricing Trends

Beta Beta Historical Regression Analysis Recent Regression AnalysisFull Rise +425bps Q1 04 - Q2 07 46 Full Recent Rise +225bps Q3 15 - Q4 18 16

First 125bps Q1 04-Q4 04 9 First 125bps Q3 15 - Q4 17 8Next 100bps Q4 04 -Q2 05 31 Last 100bps Q4 17 - Q4 18 30Next 100bps Q2 05-Q4 05 47Last 100bps Q4 05-Q2 07 103


The Attrition Concern

2017 Trend 2018 Trend

2017 Trend

2018 Trend



Better to Be Offensive or Defensive Cannibalization

Benchmark Wholesale

Costs

20 Attrition replaced 275 80 Retention 050

NEW FUNDS COST ANALYSIS

Term FHLB (Net Stock Dividend)

90-Day 246

1 256

2 259

3 261

4 265

5 269

7 296

10 319


DEFENSIVE DEPOSIT TACTICShellip Monitoring and Managing Attrition


Analyzing Attrition


2017 Trends 2018 Trends Source Deposits360degtrade


Watch List Top 10 Outflows



Watch List Declining Balances


Relationships at Risk


Canrsquot Afford to Lose Top Customers Today



Customer Segmentation

Single Source Customers

Core Customers



Customer Profile OpportunityRisk

Savings = $850k 1 Account

Savings Rate = 015

No Additional Services with the Institution Source Deposits360degreg


Customer Profile High Value amp Low CosthellipRisk

Savings = $2M NOW = $25k

4 Accounts

Savings Rate = 005

Additional Services with the Institution Source Deposits360degreg


Next Move on MMDAs


MMDA Current Tiers $0-$25k $25-$10K $10k-$25k $25k-$50k $50k-$75k $75k-$100K $100k+ TotalRate (on Bank website) 010 015 020 020 030 030 030 027Balance $4345018 $23776345 $63923061 $99616061 $82027208 $66224769 $418691192 $758603654 of Total MMDA 1 3 8 13 11 9 55 100Annual Interest Expense $434502 $3566452 $12784612 $19923212 $24608162 $19867431 $125607358 $206791729

A lternat ive Tiers $0-$25K $25k-$50K $50k-$100k $100k-$150k $150k-$250MM $250K+ TotalRate 020 020 030 030 030 030 027Balance $92044423 $99616061 $148251977 $116543910 $132505579 $169641704 $758603654 of Total MMDA 12 13 20 15 17 22 100Annual Interest Expense $18408885 $19923212 $44475593 $34963173 $39751674 $50892511 $208415048

Alternative TierPricing Adjustments to Maintain Current Cost of Funds

MMDA Tier Analysis ndash Alternative Adjustments

of Balance Source Deposits360degreg


A change in tier structure could Provide incentives for largest customers Allow more pricing flexibility as rate rise Entice lower-balance customers to increase wallet share

MMDA Tier Analysis ndash Pricing Flexibility

Incremental Interest Expense as Rates Rise (Per +25bp)Fed Funds Increase 025MMDA Current Tier $0-$25k $25-$10K $10k-$25k $25k-$50k $50k-$75k $75k-$100K $100k+ TotalBeta 25 25 50 50 75 75 80 71Balance $434501800 $2377634500 $6392306100 $9961606100 $8202720800 $6622476900 $41869119200 $75860365400Additional Expense $271564 $1486022 $7990383 $12452008 $15380102 $12417144 $83738238 $133735460

A lternat ive Tiers $0-$25K $25k-$50K $50k-$100k $100k-$150k $150k-$250MM $250K+ TotalBeta 25 50 50 75 100 100 71Balance $9204442300 $9961606100 $14825197700 $11654391000 $13250557900 $16964170400 $75860365400Additional Expense $5752776 $12452008 $18531497 $21851983 $33126395 $42410426 $134125085


Introducing New MMDA Product



Legacy MMDA Trends

Lost just $10MM Retained $30MM through promotional MMDA amp CDs Maintain $100MM at just 30 bps



OFFENSIVE DEPOSIT TACTICShellip Deposit Promotions and Campaigns


Key Questions on Deposit Promotions What drives pricing decisions competition or liquidity needs

How much are the promotions really costing me

Will I have more success on a CD or NMD promotion

What hurdles (ie requirements) should be included

Should I target-market (vs ldquobillboardrdquo campaign)

Is my front-line staff prepared

Maximize New Money amp Minimize Cannibalization


Unsuccessful CD Promotion



What Works Better CD vs MMDA Promotion

MMDA Special Source Deposits360degreg

11 Month CD Special


New Market Promotion



Indexed MMDA New Money Match



Successfully CD Promotion New Money Minimum



CD Specials Post Maturity

Retained 87 of CD Special Balances



Lending Strategies


Fixed Rate Lending ldquoWhatrsquos the Buzzrdquo The ldquoMatched Fundingrdquo Myth Pressures to Extend Some Negotiation Strategies Revisiting Adjustable CRE Repricing TermsConditions Front Running Refinancing Risk Prepayment Penalties ldquoThe Great Giveawayrdquo Relationship Managers vs Lenders Whatrsquos in a Name Loan Pricing Models Why Changes in Derivatives Accounting Matter Some Comments on ResidentialConsumer Lending

Lending Discussion Items


Pricing Interest Rate RiskhellipSwap Benchmarking

Start with Floating Rate Reference Quote (based on credit premium) Example - Prime + 050

ldquoConvertrdquo Floating to Fixed Quotes Using Swap Rates

Loan Pricing

Borrower Bank CU BrokerDealer Receive Fixed Rate (5yrs)

Receive Variable Rate Pay Variable Rate

Interest Rate Swap Mechanics

WSJP = 550

529

WSJP + 050 = 600


Lower Rates Opportunities amp Challenges Some Discussion Itemshellip

As of March 2019


Loan Repricing Schedule


CRE Repricing Risk Opportunity Merit to pro-actively renegotiating prior to contractual reset

Could any of these loans go elsewhere at reset Can we pro-actively lock in at a higher rate (albeit lower

than contractual reset) and recast prepayment penalties additional fees


Asset Sensitive

Liability Sensitive

Awareness Varies

Appetites Vary

Biases ldquoGet In The Wayrdquo

Liability Sensitive Asset Sensitive

Few ldquoDo Not Haverdquo Fixed Rate Capacity


Interest Rate Risk



Asset Yields

Funding Costs


Donrsquot Fall into the Flat Yield Curve Trap


5 Common Missteps Short-term simulations (1-2 years) Focus specifically on rising rates Focus on shocks vs ramps Statistical review vs graphical analysis Industry standard assumptions

FirsthellipUnderstand Your IRR Position

Asset Sensitive

A Little of Both

Liability Sensitive

No ldquoOne Size Fits All ndash Depends on Your Risk Profile


Strategy Considerations Asset Sensitive IRR Profile

Considerations Extend cashpre-invest Consider buying call protection Mismatched leverage Understand capacity to extend

assets (ldquocore fundingrdquo utilization)

Flexibility with commercial deals and structures

Hold portion of fixed rate mortgages

Positioning of wholesale funding and deposit specials

Understand role of derivatives (floors receive fixed swaps etc)


Liability Sensitive

Risk Profile Presentation MattershellipGreatly

BASE SIMULATION AS OF 6302018

025

225

425

625

825

025

Net Interest Income ($000)

Base Down 100BP Up 200BP

BASE SIMULATION

025

225

425

625

825

025


1 Year Simulation 2 Year Simulation 5 Year Simulation



Strategy Considerations Liability Sensitive IRR Profile

Considerations Balancing exposure to both rising

and falling rates If extending Understanding how

far and how much of protection Cost of insurance Understand

most effective options Should be able to extend assets if

disciplined with funding Deposit strategy new money

focus SwapsCaps (last of layer

approach)


New Derivatives Hedging Accounting Highlights

Cash Flow Hedge (Lengthen Assets) Swapping Prime Floating Loans to

Fixed Rate Credit Spreads No Longer Matter Greater flexibility in establishing pools

Interest Rate Floors Straight Line Premium Amortization

Fair Value Hedge (Shorten Liabilities) Swapping Fixed Rate Debt to

Floating Can Hedge Partial Term vs Entire Term

Asset Sensitive Considerations

Fair Value Hedge (Shorten Assets) Swap Pool of Fixed Rate Assets to

Floating ldquoLast-Of-Layerrdquo Method Allows for Partial Term hedging

Cash Flow Hedge (Lengthen Liabilities) Interest Rate Caps Straight Line Premium

Amortization Extend funding with same annual insurance cost

Liability Sensitive Considerations


Case Study 1


LIQUIDITYBasic Surplus (Min)Basic Surplus w FHLB (Min)

Basic Surplus w FHLB amp Brokered (Min)

Borrowings Assets (Max)

Brokered Deposits Assets (Max)

Total Wholesale Funds Assets (Max)

20001000

3000

800 405 421 408

66 65400 305 321 308 288 287

66 72 58

337

510000 00 00 00

41 38

41 38 38 48 51

11302018 8312018 5312018 2282018 11302017

38 48

388

Policy Guidelines

Liquidity Interest Rate Risk amp Capital

Executive Summary


Liquidity Overview Basic Surplus

Overnight Funds Sold amp Short-Term Investments (avg balance if wide daily fluctuations) TOTAL ASSETS =

Security Collateral

Total Market Value of Securities Less Securities Pledged to

FHLB On-Balance Fed DiscountOther Secured Sheet Liquidity =

Wholesale Repos Retail ReposSweeps

Municipal Deposits Other



Government Guaranteed Loans


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

TOTAL LIQUID ASSETS

47554 43689

-1493 0

0 0

0

0

0

00 0

000

0

000

1059061

Pct Of Assets

120

Pct OfAmount Assets147090 139

0

91243

478

1397

0

126603

49524 45988

-478 0

I LIQUID ASSETS

33486

UST amp Agency

Collateral Value 100 90

MBS CMOsPrivate LabelAgency Backed

950




Deposit Coverages of Regular CDs Maturing lt 30 Daysof Jumbo CDs Maturing lt 30 Days of Other Deposits


BASIC SURPLUS

A Maximum Borrowing Line at FHLB (Up to 50 of Assets)B Qualifying Loan Collateral at the FHLB (net of haircut)C Excess Loan Collateral (if A lt B)







105906

of Total Deposits63

253210

296714

56323

529530296714

429395

0

105906


Well Capitalized

lt Well Capitalized

Policy Limits (Min)

43504


10 53179

25 129430


0

1850

323489

405 80

66 20

305

70280

40 80


90-Day Liquidity Forecast

Net Loan Growth $25MM

Net Deposit Flows $5MM

Net Cash Flow $-20MM

CashInvestment Cash Flow Due $38MM

Wholesale Funding Maturities $10MM

How Much Liquidity Do We Need


Deposit Pricing vs Local Market


Strategy Discussion

Deposit Trends


Strategy Discussion Loan Pricing

Origination Yields Since Last Fall

467 496 455 446 428


Strategy Discussion

Loan Pricing

How has pricing changed given recent yield curve movements Falling rate protection remains critical



Executive Summary

INTEREST RATE RISKEarnings at Risk (Max)

Pct() Change in Net Interest Income with+- 200bps ramp (12 Mths)Year 1 NII ( Change from Year 1 - Base)

Down 200BP

Up 200BP

Year 2 NII ( Change from Year 1 - Base)Base

Down 200BP

Up 200BP

Core Funding Utilization (Max)BaseDown 200BPUp 200BP

EVE AnalysisPre-shock EVE ratioPost-shock EVE ratio

Basis Point Change in EVEPercentage Change in EVE

Policy Guidelines are for -200 scenario See EVE report for detailP i t th 11302018 i th d i t D 100BP i

-1000

700

-1562

548

494

10121255

249

-61

12571148

-22

-73

-24

-25-21-29 -24 -22 -21

-27 -29

-89-21 -21 04 -06 -35

-6125 14 25 21 -02

12531266

-123-16611301176

-90

477

-2284 -768-638-2000

1068

-453-243 -109

468

488

1234

516397 345

429359

485

431 407285

-62

-100-200 -100 -100 +400

11302018 8312018 5312018 2282018 11302017

Policy Guidelines


IRR Overview

Base +200BP (Parallel amp Flat) -200BP (Parallel amp Steep)


IRR Overview

EVE Analysis Deposit Study vs Shorter Life Bias

00

20

40

60

80

100

120

140

EVE Ratio (EVEEVA)

-250

-200

-150

-100

-50

00

EVE ($) - Pct Chg from 0 Shock

0

20000

40000

60000

80000

100000

120000

140000

Economic Value of Equity ($000s)

00

20

40

60

80

100

120

EVE Ratio (EVEEVA)

-700

-600

-500

-400

-300

-200

-100

00

100

200


0

20000

40000

60000

80000

100000

120000


65 year life (Study) 25 year life (Stress)



Executive Summary

CAPITAL RATIOSTier 1 Leverage (Min)

Total Risk Based (Min)

Common Equity Tier 1 (Min)Capital Ratios are based upon the 9302018 call report

OTHER BALANCE SHEET INFORMATIONBalance Sheet SpreadTotal Assets (Millions)Investments (Millions)Gross Loans (Millions)Deposits (Millions)Borrowings (Millions)Net Loans AssetsNet Loans DepositsLoan Loss Loans

1682 1631 1595 1570 1572

793 775 802

$1624$10536306 301

$10493 $10415298

$8437$1510$1782 $1597

$10591296

$1585

$8861 $8849

1000500

17531083

1700

1638 16401033

16631052 10351057

$10531297

$8879$398$395

951 953

$8485$8203 $8352 $8223$8589

$500792 786

$8733$535$435

057 058

057946 922

955056058

11302018 8312018 5312018 2282018 11302017

Policy Guidelines


Elements of Strategies Funding - Discuss growth expectations for 2019

o Differentiate offensive and defensive strategies - Discuss recent pricing trendshellip How much more can we lag on the NMD base - Review balance migration and retention trendshellip What were differences in 14 and 16 Month Special

activity - Discuss wholesale funding game plan Lending - Discuss growth expectations for 2019 $25 million of quarterly fixed rate growth (see simulation) - Discuss pricing and structurehellip Can we keep pushing yields higher - Review capacity for adding duration within the portfolio - Protect against falling rateshellip If cannot include at origination can we explore synthetic avenues via

derivatives

Investments - Discuss plan for upcoming cash flow and any excess cash - Discuss on-balance sheet liquidity cushion and future ability to shift cash flow towards loans

Strategy Formulation


Originate and hold $25 million fixed rate loans - $15MM CRE - $10MM Res

Funded with ST FHLB advances

Liquidity Liquid Assets

NeutralSlight Decline Total Liquidity Down

Marginally Liquidity Assessment

Still Strong

IRR Protect against falling

rates Increase near-term

exposure to rising rates

Earnings Higher run rate of

income

Credit Rates increase greater

than expected over the long-term

Prepayment risk if rates fall

Potential Strategy

$25MM Loan Growth Funded Short


Lending Initiative Fixed Growth w Rising Rate Exposure

Year -200 bps -200 Stpn Base +200 bps

1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563



Funded with ST FHLB advances Incorporate 2 Year Interest Rate Swap




Still Strong


rates Neutralize exposure to

rising rates over next two years


income

Credit Prepayment risk if rates

fall Accounting risk Counterparty risk Price risk

Potential Strategy

$25MM Loan Growth Funded Short and Interest Rate Swap


CRE Growth w 2 Year Swap


1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563


Case Study 2



Executive Summary






25001500

1500 422 430 336

55 691000 272 280 243 228 241

82 95 61

340

465100 00 57 73

14 19

14 19 89 111 96

10312018

7312018 4302018 1312018 10312017

32 38

305

Policy Guidelines









Net Cash Flow $5MM




What is the strategy with the cash surplus How aggressive do we need to be with deposit pricing How can increase loan activity



Originations falling Why Accelerated refinancing activity Losing deals on price






Down 200BP

Up 200BP

24 Month NII ( Change from Base)

Down 200BP

Up 200BP




Policy Guidelines are for -200 scenario See EVE report for detailPior to the 10312018 review the down scenario represents a Down 100BP scenario

1000

1500

800

-1083

456

390

11831381

285

-71

05

-32

-02

-06-09-20 -13 -08 -09

-15 03

-3318 36 31 14 35

-31

1270

-130 1140

414

-861 -2000

-198

374

424

443325 304

348301

380

352 307261

-31

-100-200


Executive Summary

10312018

7312018 4302018 1312018 10312017

Policy Guidelines


IRR Overview Base +200BP (Parallel amp Flat) -200BP (Parallel amp Steep)


IRR Overview Core Funding Utilization

Assets ( gt 60 Months)

Cumulative Cumulative Cumulative CumulativeCore Liabilities ( gt 60 Months) Volume Volume Volume Volume

Equity

Other Liabilities

DDA

NOW

Savings

Utilization

Excess

8997

74303

132849 130877

Excess

244348

285

7025

7233165306

58546

65306

58546

464

244348

456

111499

49611

6386

64499

149136

244348

244348

390

Up 400BP 24M

113471

49611

64499

69529

49611

6386 6386

64499

Excess

64499

65306 65306

25284

90590

6386

Down 200BP Up 200BP

Excess

INTEREST RATE SCENARIOS

95212

49611

Base

50967

116273

17481958546 58546

Discuss in terms of capacity to add fixed rate assets



Executive Summary

CAPITAL RATIOS

Tier 1 Leverage (Min)


Common Equity Tier 1 (Min)

Capital ratios are from 9302018 call report data

OTHER BALANCE SHEET INFORMATIONBalance Sheet SpreadTotal Assets (Millions)Investments (Millions)Gross Loans (Millions)Deposits (Millions)Borrowings (Millions)Net Loans Assets

Net Loans DepositsLoan Loss Loans

800 1551 1558 1536 1519 1532

8000 724 717 753

$845$4606323 342

$4572 $4546329

$3527$814$1010 $775

$4840312

$978

$4171 $3922

1200800

16321051

1639

1600 16161048

16181077 10581091

$4820306

$4214$148$92

898 886

$3493$3480 $3492 $3398$3807

$172758 742

$3863$207$67

070 071

070831 828

884070071

10312018

7312018 4302018 1312018 10312017

Policy Guidelines


Elements of Strategies Funding - Discuss pricing strategy given Fed pause and liquidity needs - Review CD special activityhellipnew money vs cannibalization - Discuss next steps for MMDA pricing - Discuss strategy for upcoming CD special maturities - Update on municipal deposit activity and pricing strategy - Reviewdiscuss potentially volatile liabilities High-rate deposit and uninsured deposit

concentrations Lending - Discuss capacity for fixed rate lending - Discuss loan pricing activity given market rally - Review upcoming loan repricingsmaturities InvestmentsOther - Revisit hedging opportunities to protect against falling rates - Discuss strategy for excess cashhellipreview bond extension strategy and call protection securities



Execute $25MM at-the-money floor Recent FASB rule

changing on hedge accounting allows for a macro-level hedge strategy that did not exist before

Liquidity

Need to post collateral No material change

IRR

Protects against worst case scenario falling rates

Earnings Initial cost today

Accounting risk Price risk Counter-party risk Rates increase

Keys to execute Update policy ALCOBoard education Accounting understanding

Potential Strategy

$25MM Interest Rate Floor


Loan Floor

Year -200 bps -200 Stpn Base

1 $524 $559 $552

2 $511 $589 $552

Total $1035 $1148 $1104

Year -200 Stpn Base +200 bps

1 $186 $-87 $-87

2 $415 $-87 $-87

3 $415 $-88 $-88

Total $1016 $-262 $-262

$25MM At-the-Money Floor

Pricing reflective of Q4 levelshellipprice of ATM floor much higher today


Purchase $15MM of Jumbo MBS 30Y (GNMA)

Funded with cash

Liquidity

Liquid Assets Neutral Total Liquidity Neutral


rates Still maintain asset

sensitive posture

Earnings

Higher run rate of income immediately (donrsquot have to wait for growth to materialize)

Rates rise faster than expected (although IRR position holds asset sensitive posture)

Opportunity cost if rates rise

Price risk Prepayment optionality if

MBS Premium risk

Potential Strategy

$15MM Cash Extension into Bonds


Cash Extension


1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $325 $359 $174 $25

2 $503 $586 $157 $-129

3 $369 $486 $158 $-109

Total $1197 $1431 $489 $-213



Originate and hold fixed rate mortgages - $15MM 30Y resi next

90 days

Funded with 1 month amp 1 Year FHLB advances




Still Strong



sensitive posture


income in all scenarios modeled


fall

Potential Strategy $15MM Loan Growth Funded Short


Hold Fixed Rate Mortgages


1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $248 $284 $200 $152

2 $428 $517 $222 $16

3 $411 $512 $218 $24

Total $1087 $1313 $640 $192



Investments

Loans

Deposits

Wholesale

Other

ALCO Action Items


Closing Thoughts

Let Your Balance Sheet Talk Squeeze More Out of Your Lending Success by Looking Through

Different Lenses

Maximize Availability at FHLB (and donrsquot forget the dividend impact)

Be Prepared for Your Next Exam (Liquidity)

Deposit Strategies that Make Sense Given Your Liquidity Position

Derivatives for Community ldquoBankingrdquo A Game Changer

Donrsquot Forget About Declining Rates

ALCO as a Profit Center for Strategic Decision Making



Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response

Identify At-Risk Customer Concentration(Potentially Volatile Liabilities)








Slide Number 24





Worst Case Scenario amp Remediation Plan

Slide Number 30



Better to Be Offensive or DefensiveCannibalization

DEFENSIVE DEPOSIT TACTICShellipMonitoring and Managing Attrition

Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends

OFFENSIVE DEPOSIT TACTICShellipDeposit Promotions and Campaigns








Lending Strategies


Loan Pricing

Lower Rates Opportunities amp Challenges


CRE Repricing Risk Opportunity

Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts

I LIQUID ASSETS OTHER LIQUIDITY ITEMS

TOTAL ASSETS = 1200000 Mkt Value Pledged Available

Overnight Funds Sold amp Short-Term Investments (avg balance if wide daily fluctuations) 40000 Corporate Securities 0 0 0

Municipal Securities 27876 0 0

UST amp Agency MBS CMOs Equity Securities 0 0 0

Security Collateral Agency Backed Munis Other 0 0 0

Collateral Value 100 95 90

Total Market Value of Securities 35000 85000 0 UNSECURED BORROWING LINES

Less Securities Pledged to Line Outstanding Available

FHLB 0 0 0 Fed Funds Lines 0 0 0

Fed DiscountOther Secured 0 0 0

Wholesale Repos 0 0 0 SECURED BORROWING LINES

Retail ReposSweeps 0 -10000 0 Line Outstanding Available

Municipal Deposits 0 -25000 0 Fed BIC Lines 0 0 0

Other 0 0 0 Fed DiscountOther 0 0 0

Available Unencumbered Security Collateral 35000 47500 0 Total 0 0 0

Total Unpledged Securities 82500 of Assets

BASIC SURPLUS - EXCL FED BIC amp OTHER SECURED LINES

Over Collateralized Securities Pledging Position 0 of Assets

No Change to Basic Surplus NA NA

Cash flow (lt 30 Days) from Securities not listed above 0

Pct Of Assets No Change to Basic Surplus NA NA

Other Liquid Assets 0

TOTAL LIQUID ASSETS 122500 102

II SHORT TERM POTENTIALLY VOLATILE LIABILITIES amp COVERAGES AVAILABLE BORROWING CAPACITY (PER POLICY)

Maturing Unsecured Liabilities (lt 30 Days) 5000

Deposit Coverages Current Outstanding Borrowings (Exc SweepsRet Repos) 0

25 of CDs Maturing lt 30 Days 2500

30 of Jumbo CDs Maturing lt 30 Days 5000 Policy Limits (Min) Maximum Borrowing Capacity is Not Available

10 of Other Deposits 65000

Well Capitalized lt Well Capitalized

OTHER NOTES

TOTAL SHORT TERM POTENTIALLY VOLATILE LIABILITIES amp COVERAGES 77500

BASIC SURPLUS 45000 38


A Maximum Borrowing Line at FHLB 420000

B Qualifying Loan Collateral at the FHLB (net of haircut) 325000

C Excess Loan Collateral (if A lt B)

Maximum Borrowing Capacity (Lesser of A or B) 325000

Collateral Currently Encumbered by Outstanding AdvancesLetters of Credit 105000

REMAINING FHLB LOAN BASED BORROWING CAPACITY 220000

BASIC SURPLUS W FHLB 265000 221


Maximum Board Authorized Brokered Deposit Capacity (10 of Total Assets) 120000

Current Brokered Deposit Balances 0

REMAINING CAPACITY TO UTILIZE BROKERED DEPOSITS 120000

BASIC SURPLUS W FHLB amp BROKERED DEPOSITS 385000 321
































OTHER NOTES


















Asset Yields

Funding Costs


Todayrsquos Focus


Lending


Interest Rate Risk


Regulatory

















Summer 2017


Liquidity Trends




Source SampP Global






Security Collateral









Other Liquid Assets


0

Pct Of Assets0

122500

0

35000 47500 0

82500

0 0 00 -25000 00 -10000 0

0 0 00 0 0

0 0 0

35000 85000 0



I LIQUID ASSETS

400001200000

Basic Surplus





























Brokered capacity




BASIC SURPLUS








1200000

120000

385000 321

265000 221


325000105000

220000


420000325000

77500

45000 38

30 500010 65000


5000

25 2500

Basic Surplus







Management Response






Uninsured Deposits





Rate Cap

Savings 010 085

Checking 006 081

MMDA 018 093

6M CD 038 113

12M CD 065 140

24M CD 085 160

36M CD 098 173


Rate Cap

Savings 006 081

Checking 004 079

MMDA 009 084

6M CD 017 092

12M CD 029 104

24M CD 044 119

36M CD 059 134


Rate Cap

Savings 006 081

Checking 004 079

MMDA 008 083

6M CD 013 088

12M CD 022 097

24M CD 036 111

36M CD 049 124





150 205 190

225 270 245



SampP Global




























Contracting Economy


Expanding Economy






















2017 Trend

2018 Trend




Benchmark Wholesale

Costs




90-Day 246

1 256

2 259

3 261

4 265

5 269

7 296

10 319




Analyzing Attrition
















Core Customers





Savings Rate = 015





4 Accounts

Savings Rate = 005



Next Move on MMDAs
















Legacy MMDA Trends



















11 Month CD Special















Lending Strategies








Loan Pricing




WSJP = 550

529

WSJP + 050 = 600



As of March 2019








Asset Sensitive

Liability Sensitive

Awareness Varies

Appetites Vary





Interest Rate Risk



Asset Yields

Funding Costs






Asset Sensitive

A Little of Both

Liability Sensitive











Liability Sensitive



025

225

425

625

825

025



BASE SIMULATION

025

225

425

625

825

025












approach)















Case Study 1







20001000

3000

800 405 421 408

66 65400 305 321 308 288 287

66 72 58

337

510000 00 00 00

41 38

41 38 38 48 51

11302018 8312018 5312018 2282018 11302017

38 48

388

Policy Guidelines


Executive Summary




Security Collateral










TOTAL LIQUID ASSETS

47554 43689

-1493 0

0 0

0

0

0

00 0

000

0

000

1059061

Pct Of Assets

120


0

91243

478

1397

0

126603

49524 45988

-478 0

I LIQUID ASSETS

33486

UST amp Agency



950






BASIC SURPLUS








105906

of Total Deposits63

253210

296714

56323

529530296714

429395

0

105906


Well Capitalized

lt Well Capitalized

Policy Limits (Min)

43504


10 53179

25 129430


0

1850

323489

405 80

66 20

305

70280

40 80












Strategy Discussion

Deposit Trends




467 496 455 446 428


Strategy Discussion

Loan Pricing




Executive Summary



Down 200BP

Up 200BP


Down 200BP

Up 200BP





-1000

700

-1562

548

494

10121255

249

-61

12571148

-22

-73

-24

-25-21-29 -24 -22 -21

-27 -29

-89-21 -21 04 -06 -35

-6125 14 25 21 -02

12531266

-123-16611301176

-90

477

-2284 -768-638-2000

1068

-453-243 -109

468

488

1234

516397 345

429359

485

431 407285

-62

-100-200 -100 -100 +400

11302018 8312018 5312018 2282018 11302017

Policy Guidelines


IRR Overview



IRR Overview


00

20

40

60

80

100

120

140

EVE Ratio (EVEEVA)

-250

-200

-150

-100

-50

00


0

20000

40000

60000

80000

100000

120000

140000


00

20

40

60

80

100

120

EVE Ratio (EVEEVA)

-700

-600

-500

-400

-300

-200

-100

00

100

200


0

20000

40000

60000

80000

100000

120000





Executive Summary





1682 1631 1595 1570 1572

793 775 802

$1624$10536306 301

$10493 $10415298

$8437$1510$1782 $1597

$10591296

$1585

$8861 $8849

1000500

17531083

1700

1638 16401033

16631052 10351057

$10531297

$8879$398$395

951 953

$8485$8203 $8352 $8223$8589

$500792 786

$8733$535$435

057 058

057946 922

955056058

11302018 8312018 5312018 2282018 11302017

Policy Guidelines





derivatives









Still Strong





income




Potential Strategy





1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563







Still Strong





income



Potential Strategy





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563


Case Study 2



Executive Summary






25001500

1500 422 430 336

55 691000 272 280 243 228 241

82 95 61

340

465100 00 57 73

14 19

14 19 89 111 96

10312018

7312018 4302018 1312018 10312017

32 38

305

Policy Guidelines









Net Cash Flow $5MM













Down 200BP

Up 200BP


Down 200BP

Up 200BP





1000

1500

800

-1083

456

390

11831381

285

-71

05

-32

-02

-06-09-20 -13 -08 -09

-15 03

-3318 36 31 14 35

-31

1270

-130 1140

414

-861 -2000

-198

374

424

443325 304

348301

380

352 307261

-31

-100-200


Executive Summary

10312018

7312018 4302018 1312018 10312017

Policy Guidelines







Equity

Other Liabilities

DDA

NOW

Savings

Utilization

Excess

8997

74303

132849 130877

Excess

244348

285

7025

7233165306

58546

65306

58546

464

244348

456

111499

49611

6386

64499

149136

244348

244348

390

Up 400BP 24M

113471

49611

64499

69529

49611

6386 6386

64499

Excess

64499

65306 65306

25284

90590

6386

Down 200BP Up 200BP

Excess


95212

49611

Base

50967

116273

17481958546 58546




Executive Summary

CAPITAL RATIOS







800 1551 1558 1536 1519 1532

8000 724 717 753

$845$4606323 342

$4572 $4546329

$3527$814$1010 $775

$4840312

$978

$4171 $3922

1200800

16321051

1639

1600 16161048

16181077 10581091

$4820306

$4214$148$92

898 886

$3493$3480 $3492 $3398$3807

$172758 742

$3863$207$67

070 071

070831 828

884070071

10312018

7312018 4302018 1312018 10312017

Policy Guidelines








Liquidity


IRR





Potential Strategy



Loan Floor


1 $524 $559 $552

2 $511 $589 $552

Total $1035 $1148 $1104


1 $186 $-87 $-87

2 $415 $-87 $-87

3 $415 $-88 $-88

Total $1016 $-262 $-262





Funded with cash

Liquidity




sensitive posture

Earnings





MBS Premium risk

Potential Strategy



Cash Extension


1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $325 $359 $174 $25

2 $503 $586 $157 $-129

3 $369 $486 $158 $-109

Total $1197 $1431 $489 $-213




90 days





Still Strong



sensitive posture




fall





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $248 $284 $200 $152

2 $428 $517 $222 $16

3 $411 $512 $218 $24

Total $1087 $1313 $640 $192



Investments

Loans

Deposits

Wholesale

Other

ALCO Action Items


Closing Thoughts


Different Lenses









Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response









Slide Number 24






Slide Number 30





Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends









Lending Strategies


Loan Pricing




Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts
































OTHER NOTES















































OTHER NOTES
















copy 2019 Darling Consulting Group Inc Page 3 copy 2019 Darling Consulting Group Inc

Todayrsquos Focus


Lending


Interest Rate Risk


Regulatory

















Summer 2017


Liquidity Trends




Source SampP Global






Security Collateral









Other Liquid Assets


0

Pct Of Assets0

122500

0

35000 47500 0

82500

0 0 00 -25000 00 -10000 0

0 0 00 0 0

0 0 0

35000 85000 0



I LIQUID ASSETS

400001200000

Basic Surplus





























Brokered capacity




BASIC SURPLUS








1200000

120000

385000 321

265000 221


325000105000

220000


420000325000

77500

45000 38

30 500010 65000


5000

25 2500

Basic Surplus







Management Response






Uninsured Deposits





Rate Cap

Savings 010 085

Checking 006 081

MMDA 018 093

6M CD 038 113

12M CD 065 140

24M CD 085 160

36M CD 098 173


Rate Cap

Savings 006 081

Checking 004 079

MMDA 009 084

6M CD 017 092

12M CD 029 104

24M CD 044 119

36M CD 059 134


Rate Cap

Savings 006 081

Checking 004 079

MMDA 008 083

6M CD 013 088

12M CD 022 097

24M CD 036 111

36M CD 049 124





150 205 190

225 270 245



SampP Global




























Contracting Economy


Expanding Economy






















2017 Trend

2018 Trend




Benchmark Wholesale

Costs




90-Day 246

1 256

2 259

3 261

4 265

5 269

7 296

10 319




Analyzing Attrition
















Core Customers





Savings Rate = 015





4 Accounts

Savings Rate = 005



Next Move on MMDAs
















Legacy MMDA Trends



















11 Month CD Special















Lending Strategies








Loan Pricing




WSJP = 550

529

WSJP + 050 = 600



As of March 2019








Asset Sensitive

Liability Sensitive

Awareness Varies

Appetites Vary





Interest Rate Risk



Asset Yields

Funding Costs






Asset Sensitive

A Little of Both

Liability Sensitive











Liability Sensitive



025

225

425

625

825

025



BASE SIMULATION

025

225

425

625

825

025












approach)















Case Study 1







20001000

3000

800 405 421 408

66 65400 305 321 308 288 287

66 72 58

337

510000 00 00 00

41 38

41 38 38 48 51

11302018 8312018 5312018 2282018 11302017

38 48

388

Policy Guidelines


Executive Summary




Security Collateral










TOTAL LIQUID ASSETS

47554 43689

-1493 0

0 0

0

0

0

00 0

000

0

000

1059061

Pct Of Assets

120


0

91243

478

1397

0

126603

49524 45988

-478 0

I LIQUID ASSETS

33486

UST amp Agency



950






BASIC SURPLUS








105906

of Total Deposits63

253210

296714

56323

529530296714

429395

0

105906


Well Capitalized

lt Well Capitalized

Policy Limits (Min)

43504


10 53179

25 129430


0

1850

323489

405 80

66 20

305

70280

40 80












Strategy Discussion

Deposit Trends




467 496 455 446 428


Strategy Discussion

Loan Pricing




Executive Summary



Down 200BP

Up 200BP


Down 200BP

Up 200BP





-1000

700

-1562

548

494

10121255

249

-61

12571148

-22

-73

-24

-25-21-29 -24 -22 -21

-27 -29

-89-21 -21 04 -06 -35

-6125 14 25 21 -02

12531266

-123-16611301176

-90

477

-2284 -768-638-2000

1068

-453-243 -109

468

488

1234

516397 345

429359

485

431 407285

-62

-100-200 -100 -100 +400

11302018 8312018 5312018 2282018 11302017

Policy Guidelines


IRR Overview



IRR Overview


00

20

40

60

80

100

120

140

EVE Ratio (EVEEVA)

-250

-200

-150

-100

-50

00


0

20000

40000

60000

80000

100000

120000

140000


00

20

40

60

80

100

120

EVE Ratio (EVEEVA)

-700

-600

-500

-400

-300

-200

-100

00

100

200


0

20000

40000

60000

80000

100000

120000





Executive Summary





1682 1631 1595 1570 1572

793 775 802

$1624$10536306 301

$10493 $10415298

$8437$1510$1782 $1597

$10591296

$1585

$8861 $8849

1000500

17531083

1700

1638 16401033

16631052 10351057

$10531297

$8879$398$395

951 953

$8485$8203 $8352 $8223$8589

$500792 786

$8733$535$435

057 058

057946 922

955056058

11302018 8312018 5312018 2282018 11302017

Policy Guidelines





derivatives









Still Strong





income




Potential Strategy





1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563







Still Strong





income



Potential Strategy





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563


Case Study 2



Executive Summary






25001500

1500 422 430 336

55 691000 272 280 243 228 241

82 95 61

340

465100 00 57 73

14 19

14 19 89 111 96

10312018

7312018 4302018 1312018 10312017

32 38

305

Policy Guidelines









Net Cash Flow $5MM













Down 200BP

Up 200BP


Down 200BP

Up 200BP





1000

1500

800

-1083

456

390

11831381

285

-71

05

-32

-02

-06-09-20 -13 -08 -09

-15 03

-3318 36 31 14 35

-31

1270

-130 1140

414

-861 -2000

-198

374

424

443325 304

348301

380

352 307261

-31

-100-200


Executive Summary

10312018

7312018 4302018 1312018 10312017

Policy Guidelines







Equity

Other Liabilities

DDA

NOW

Savings

Utilization

Excess

8997

74303

132849 130877

Excess

244348

285

7025

7233165306

58546

65306

58546

464

244348

456

111499

49611

6386

64499

149136

244348

244348

390

Up 400BP 24M

113471

49611

64499

69529

49611

6386 6386

64499

Excess

64499

65306 65306

25284

90590

6386

Down 200BP Up 200BP

Excess


95212

49611

Base

50967

116273

17481958546 58546




Executive Summary

CAPITAL RATIOS







800 1551 1558 1536 1519 1532

8000 724 717 753

$845$4606323 342

$4572 $4546329

$3527$814$1010 $775

$4840312

$978

$4171 $3922

1200800

16321051

1639

1600 16161048

16181077 10581091

$4820306

$4214$148$92

898 886

$3493$3480 $3492 $3398$3807

$172758 742

$3863$207$67

070 071

070831 828

884070071

10312018

7312018 4302018 1312018 10312017

Policy Guidelines








Liquidity


IRR





Potential Strategy



Loan Floor


1 $524 $559 $552

2 $511 $589 $552

Total $1035 $1148 $1104


1 $186 $-87 $-87

2 $415 $-87 $-87

3 $415 $-88 $-88

Total $1016 $-262 $-262





Funded with cash

Liquidity




sensitive posture

Earnings





MBS Premium risk

Potential Strategy



Cash Extension


1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $325 $359 $174 $25

2 $503 $586 $157 $-129

3 $369 $486 $158 $-109

Total $1197 $1431 $489 $-213




90 days





Still Strong



sensitive posture




fall





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $248 $284 $200 $152

2 $428 $517 $222 $16

3 $411 $512 $218 $24

Total $1087 $1313 $640 $192



Investments

Loans

Deposits

Wholesale

Other

ALCO Action Items


Closing Thoughts


Different Lenses









Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response









Slide Number 24






Slide Number 30





Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends









Lending Strategies


Loan Pricing




Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts
































OTHER NOTES















































OTHER NOTES






























Summer 2017


Liquidity Trends




Source SampP Global






Security Collateral









Other Liquid Assets


0

Pct Of Assets0

122500

0

35000 47500 0

82500

0 0 00 -25000 00 -10000 0

0 0 00 0 0

0 0 0

35000 85000 0



I LIQUID ASSETS

400001200000

Basic Surplus





























Brokered capacity




BASIC SURPLUS








1200000

120000

385000 321

265000 221


325000105000

220000


420000325000

77500

45000 38

30 500010 65000


5000

25 2500

Basic Surplus







Management Response






Uninsured Deposits





Rate Cap

Savings 010 085

Checking 006 081

MMDA 018 093

6M CD 038 113

12M CD 065 140

24M CD 085 160

36M CD 098 173


Rate Cap

Savings 006 081

Checking 004 079

MMDA 009 084

6M CD 017 092

12M CD 029 104

24M CD 044 119

36M CD 059 134


Rate Cap

Savings 006 081

Checking 004 079

MMDA 008 083

6M CD 013 088

12M CD 022 097

24M CD 036 111

36M CD 049 124





150 205 190

225 270 245



SampP Global




























Contracting Economy


Expanding Economy






















2017 Trend

2018 Trend




Benchmark Wholesale

Costs




90-Day 246

1 256

2 259

3 261

4 265

5 269

7 296

10 319




Analyzing Attrition
















Core Customers





Savings Rate = 015





4 Accounts

Savings Rate = 005



Next Move on MMDAs
















Legacy MMDA Trends



















11 Month CD Special















Lending Strategies








Loan Pricing




WSJP = 550

529

WSJP + 050 = 600



As of March 2019








Asset Sensitive

Liability Sensitive

Awareness Varies

Appetites Vary





Interest Rate Risk



Asset Yields

Funding Costs






Asset Sensitive

A Little of Both

Liability Sensitive











Liability Sensitive



025

225

425

625

825

025



BASE SIMULATION

025

225

425

625

825

025












approach)















Case Study 1







20001000

3000

800 405 421 408

66 65400 305 321 308 288 287

66 72 58

337

510000 00 00 00

41 38

41 38 38 48 51

11302018 8312018 5312018 2282018 11302017

38 48

388

Policy Guidelines


Executive Summary




Security Collateral










TOTAL LIQUID ASSETS

47554 43689

-1493 0

0 0

0

0

0

00 0

000

0

000

1059061

Pct Of Assets

120


0

91243

478

1397

0

126603

49524 45988

-478 0

I LIQUID ASSETS

33486

UST amp Agency



950






BASIC SURPLUS








105906

of Total Deposits63

253210

296714

56323

529530296714

429395

0

105906


Well Capitalized

lt Well Capitalized

Policy Limits (Min)

43504


10 53179

25 129430


0

1850

323489

405 80

66 20

305

70280

40 80












Strategy Discussion

Deposit Trends




467 496 455 446 428


Strategy Discussion

Loan Pricing




Executive Summary



Down 200BP

Up 200BP


Down 200BP

Up 200BP





-1000

700

-1562

548

494

10121255

249

-61

12571148

-22

-73

-24

-25-21-29 -24 -22 -21

-27 -29

-89-21 -21 04 -06 -35

-6125 14 25 21 -02

12531266

-123-16611301176

-90

477

-2284 -768-638-2000

1068

-453-243 -109

468

488

1234

516397 345

429359

485

431 407285

-62

-100-200 -100 -100 +400

11302018 8312018 5312018 2282018 11302017

Policy Guidelines


IRR Overview



IRR Overview


00

20

40

60

80

100

120

140

EVE Ratio (EVEEVA)

-250

-200

-150

-100

-50

00


0

20000

40000

60000

80000

100000

120000

140000


00

20

40

60

80

100

120

EVE Ratio (EVEEVA)

-700

-600

-500

-400

-300

-200

-100

00

100

200


0

20000

40000

60000

80000

100000

120000





Executive Summary





1682 1631 1595 1570 1572

793 775 802

$1624$10536306 301

$10493 $10415298

$8437$1510$1782 $1597

$10591296

$1585

$8861 $8849

1000500

17531083

1700

1638 16401033

16631052 10351057

$10531297

$8879$398$395

951 953

$8485$8203 $8352 $8223$8589

$500792 786

$8733$535$435

057 058

057946 922

955056058

11302018 8312018 5312018 2282018 11302017

Policy Guidelines





derivatives









Still Strong





income




Potential Strategy





1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563







Still Strong





income



Potential Strategy





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563


Case Study 2



Executive Summary






25001500

1500 422 430 336

55 691000 272 280 243 228 241

82 95 61

340

465100 00 57 73

14 19

14 19 89 111 96

10312018

7312018 4302018 1312018 10312017

32 38

305

Policy Guidelines









Net Cash Flow $5MM













Down 200BP

Up 200BP


Down 200BP

Up 200BP





1000

1500

800

-1083

456

390

11831381

285

-71

05

-32

-02

-06-09-20 -13 -08 -09

-15 03

-3318 36 31 14 35

-31

1270

-130 1140

414

-861 -2000

-198

374

424

443325 304

348301

380

352 307261

-31

-100-200


Executive Summary

10312018

7312018 4302018 1312018 10312017

Policy Guidelines







Equity

Other Liabilities

DDA

NOW

Savings

Utilization

Excess

8997

74303

132849 130877

Excess

244348

285

7025

7233165306

58546

65306

58546

464

244348

456

111499

49611

6386

64499

149136

244348

244348

390

Up 400BP 24M

113471

49611

64499

69529

49611

6386 6386

64499

Excess

64499

65306 65306

25284

90590

6386

Down 200BP Up 200BP

Excess


95212

49611

Base

50967

116273

17481958546 58546




Executive Summary

CAPITAL RATIOS







800 1551 1558 1536 1519 1532

8000 724 717 753

$845$4606323 342

$4572 $4546329

$3527$814$1010 $775

$4840312

$978

$4171 $3922

1200800

16321051

1639

1600 16161048

16181077 10581091

$4820306

$4214$148$92

898 886

$3493$3480 $3492 $3398$3807

$172758 742

$3863$207$67

070 071

070831 828

884070071

10312018

7312018 4302018 1312018 10312017

Policy Guidelines








Liquidity


IRR





Potential Strategy



Loan Floor


1 $524 $559 $552

2 $511 $589 $552

Total $1035 $1148 $1104


1 $186 $-87 $-87

2 $415 $-87 $-87

3 $415 $-88 $-88

Total $1016 $-262 $-262





Funded with cash

Liquidity




sensitive posture

Earnings





MBS Premium risk

Potential Strategy



Cash Extension


1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $325 $359 $174 $25

2 $503 $586 $157 $-129

3 $369 $486 $158 $-109

Total $1197 $1431 $489 $-213




90 days





Still Strong



sensitive posture




fall





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $248 $284 $200 $152

2 $428 $517 $222 $16

3 $411 $512 $218 $24

Total $1087 $1313 $640 $192



Investments

Loans

Deposits

Wholesale

Other

ALCO Action Items


Closing Thoughts


Different Lenses









Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response









Slide Number 24






Slide Number 30





Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends









Lending Strategies


Loan Pricing




Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts
































OTHER NOTES















































OTHER NOTES

















Liquidity Trends




Source SampP Global






Security Collateral









Other Liquid Assets


0

Pct Of Assets0

122500

0

35000 47500 0

82500

0 0 00 -25000 00 -10000 0

0 0 00 0 0

0 0 0

35000 85000 0



I LIQUID ASSETS

400001200000

Basic Surplus





























Brokered capacity




BASIC SURPLUS








1200000

120000

385000 321

265000 221


325000105000

220000


420000325000

77500

45000 38

30 500010 65000


5000

25 2500

Basic Surplus







Management Response






Uninsured Deposits





Rate Cap

Savings 010 085

Checking 006 081

MMDA 018 093

6M CD 038 113

12M CD 065 140

24M CD 085 160

36M CD 098 173


Rate Cap

Savings 006 081

Checking 004 079

MMDA 009 084

6M CD 017 092

12M CD 029 104

24M CD 044 119

36M CD 059 134


Rate Cap

Savings 006 081

Checking 004 079

MMDA 008 083

6M CD 013 088

12M CD 022 097

24M CD 036 111

36M CD 049 124





150 205 190

225 270 245



SampP Global




























Contracting Economy


Expanding Economy






















2017 Trend

2018 Trend




Benchmark Wholesale

Costs




90-Day 246

1 256

2 259

3 261

4 265

5 269

7 296

10 319




Analyzing Attrition
















Core Customers





Savings Rate = 015





4 Accounts

Savings Rate = 005



Next Move on MMDAs
















Legacy MMDA Trends



















11 Month CD Special















Lending Strategies








Loan Pricing




WSJP = 550

529

WSJP + 050 = 600



As of March 2019








Asset Sensitive

Liability Sensitive

Awareness Varies

Appetites Vary





Interest Rate Risk



Asset Yields

Funding Costs






Asset Sensitive

A Little of Both

Liability Sensitive











Liability Sensitive



025

225

425

625

825

025



BASE SIMULATION

025

225

425

625

825

025












approach)















Case Study 1







20001000

3000

800 405 421 408

66 65400 305 321 308 288 287

66 72 58

337

510000 00 00 00

41 38

41 38 38 48 51

11302018 8312018 5312018 2282018 11302017

38 48

388

Policy Guidelines


Executive Summary




Security Collateral










TOTAL LIQUID ASSETS

47554 43689

-1493 0

0 0

0

0

0

00 0

000

0

000

1059061

Pct Of Assets

120


0

91243

478

1397

0

126603

49524 45988

-478 0

I LIQUID ASSETS

33486

UST amp Agency



950






BASIC SURPLUS








105906

of Total Deposits63

253210

296714

56323

529530296714

429395

0

105906


Well Capitalized

lt Well Capitalized

Policy Limits (Min)

43504


10 53179

25 129430


0

1850

323489

405 80

66 20

305

70280

40 80












Strategy Discussion

Deposit Trends




467 496 455 446 428


Strategy Discussion

Loan Pricing




Executive Summary



Down 200BP

Up 200BP


Down 200BP

Up 200BP





-1000

700

-1562

548

494

10121255

249

-61

12571148

-22

-73

-24

-25-21-29 -24 -22 -21

-27 -29

-89-21 -21 04 -06 -35

-6125 14 25 21 -02

12531266

-123-16611301176

-90

477

-2284 -768-638-2000

1068

-453-243 -109

468

488

1234

516397 345

429359

485

431 407285

-62

-100-200 -100 -100 +400

11302018 8312018 5312018 2282018 11302017

Policy Guidelines


IRR Overview



IRR Overview


00

20

40

60

80

100

120

140

EVE Ratio (EVEEVA)

-250

-200

-150

-100

-50

00


0

20000

40000

60000

80000

100000

120000

140000


00

20

40

60

80

100

120

EVE Ratio (EVEEVA)

-700

-600

-500

-400

-300

-200

-100

00

100

200


0

20000

40000

60000

80000

100000

120000





Executive Summary





1682 1631 1595 1570 1572

793 775 802

$1624$10536306 301

$10493 $10415298

$8437$1510$1782 $1597

$10591296

$1585

$8861 $8849

1000500

17531083

1700

1638 16401033

16631052 10351057

$10531297

$8879$398$395

951 953

$8485$8203 $8352 $8223$8589

$500792 786

$8733$535$435

057 058

057946 922

955056058

11302018 8312018 5312018 2282018 11302017

Policy Guidelines





derivatives









Still Strong





income




Potential Strategy





1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563







Still Strong





income



Potential Strategy





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563


Case Study 2



Executive Summary






25001500

1500 422 430 336

55 691000 272 280 243 228 241

82 95 61

340

465100 00 57 73

14 19

14 19 89 111 96

10312018

7312018 4302018 1312018 10312017

32 38

305

Policy Guidelines









Net Cash Flow $5MM













Down 200BP

Up 200BP


Down 200BP

Up 200BP





1000

1500

800

-1083

456

390

11831381

285

-71

05

-32

-02

-06-09-20 -13 -08 -09

-15 03

-3318 36 31 14 35

-31

1270

-130 1140

414

-861 -2000

-198

374

424

443325 304

348301

380

352 307261

-31

-100-200


Executive Summary

10312018

7312018 4302018 1312018 10312017

Policy Guidelines







Equity

Other Liabilities

DDA

NOW

Savings

Utilization

Excess

8997

74303

132849 130877

Excess

244348

285

7025

7233165306

58546

65306

58546

464

244348

456

111499

49611

6386

64499

149136

244348

244348

390

Up 400BP 24M

113471

49611

64499

69529

49611

6386 6386

64499

Excess

64499

65306 65306

25284

90590

6386

Down 200BP Up 200BP

Excess


95212

49611

Base

50967

116273

17481958546 58546




Executive Summary

CAPITAL RATIOS







800 1551 1558 1536 1519 1532

8000 724 717 753

$845$4606323 342

$4572 $4546329

$3527$814$1010 $775

$4840312

$978

$4171 $3922

1200800

16321051

1639

1600 16161048

16181077 10581091

$4820306

$4214$148$92

898 886

$3493$3480 $3492 $3398$3807

$172758 742

$3863$207$67

070 071

070831 828

884070071

10312018

7312018 4302018 1312018 10312017

Policy Guidelines








Liquidity


IRR





Potential Strategy



Loan Floor


1 $524 $559 $552

2 $511 $589 $552

Total $1035 $1148 $1104


1 $186 $-87 $-87

2 $415 $-87 $-87

3 $415 $-88 $-88

Total $1016 $-262 $-262





Funded with cash

Liquidity




sensitive posture

Earnings





MBS Premium risk

Potential Strategy



Cash Extension


1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $325 $359 $174 $25

2 $503 $586 $157 $-129

3 $369 $486 $158 $-109

Total $1197 $1431 $489 $-213




90 days





Still Strong



sensitive posture




fall





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $248 $284 $200 $152

2 $428 $517 $222 $16

3 $411 $512 $218 $24

Total $1087 $1313 $640 $192



Investments

Loans

Deposits

Wholesale

Other

ALCO Action Items


Closing Thoughts


Different Lenses









Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response









Slide Number 24






Slide Number 30





Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends









Lending Strategies


Loan Pricing




Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts
































OTHER NOTES















































OTHER NOTES
















copy 2019 Darling Consulting Group Inc copy 2019 Darling Consulting Group Inc Page 7





Security Collateral









Other Liquid Assets


0

Pct Of Assets0

122500

0

35000 47500 0

82500

0 0 00 -25000 00 -10000 0

0 0 00 0 0

0 0 0

35000 85000 0



I LIQUID ASSETS

400001200000

Basic Surplus





























Brokered capacity




BASIC SURPLUS








1200000

120000

385000 321

265000 221


325000105000

220000


420000325000

77500

45000 38

30 500010 65000


5000

25 2500

Basic Surplus







Management Response






Uninsured Deposits





Rate Cap

Savings 010 085

Checking 006 081

MMDA 018 093

6M CD 038 113

12M CD 065 140

24M CD 085 160

36M CD 098 173


Rate Cap

Savings 006 081

Checking 004 079

MMDA 009 084

6M CD 017 092

12M CD 029 104

24M CD 044 119

36M CD 059 134


Rate Cap

Savings 006 081

Checking 004 079

MMDA 008 083

6M CD 013 088

12M CD 022 097

24M CD 036 111

36M CD 049 124





150 205 190

225 270 245



SampP Global




























Contracting Economy


Expanding Economy






















2017 Trend

2018 Trend




Benchmark Wholesale

Costs




90-Day 246

1 256

2 259

3 261

4 265

5 269

7 296

10 319




Analyzing Attrition
















Core Customers





Savings Rate = 015





4 Accounts

Savings Rate = 005



Next Move on MMDAs
















Legacy MMDA Trends



















11 Month CD Special















Lending Strategies








Loan Pricing




WSJP = 550

529

WSJP + 050 = 600



As of March 2019








Asset Sensitive

Liability Sensitive

Awareness Varies

Appetites Vary





Interest Rate Risk



Asset Yields

Funding Costs






Asset Sensitive

A Little of Both

Liability Sensitive











Liability Sensitive



025

225

425

625

825

025



BASE SIMULATION

025

225

425

625

825

025












approach)















Case Study 1







20001000

3000

800 405 421 408

66 65400 305 321 308 288 287

66 72 58

337

510000 00 00 00

41 38

41 38 38 48 51

11302018 8312018 5312018 2282018 11302017

38 48

388

Policy Guidelines


Executive Summary




Security Collateral










TOTAL LIQUID ASSETS

47554 43689

-1493 0

0 0

0

0

0

00 0

000

0

000

1059061

Pct Of Assets

120


0

91243

478

1397

0

126603

49524 45988

-478 0

I LIQUID ASSETS

33486

UST amp Agency



950






BASIC SURPLUS








105906

of Total Deposits63

253210

296714

56323

529530296714

429395

0

105906


Well Capitalized

lt Well Capitalized

Policy Limits (Min)

43504


10 53179

25 129430


0

1850

323489

405 80

66 20

305

70280

40 80












Strategy Discussion

Deposit Trends




467 496 455 446 428


Strategy Discussion

Loan Pricing




Executive Summary



Down 200BP

Up 200BP


Down 200BP

Up 200BP





-1000

700

-1562

548

494

10121255

249

-61

12571148

-22

-73

-24

-25-21-29 -24 -22 -21

-27 -29

-89-21 -21 04 -06 -35

-6125 14 25 21 -02

12531266

-123-16611301176

-90

477

-2284 -768-638-2000

1068

-453-243 -109

468

488

1234

516397 345

429359

485

431 407285

-62

-100-200 -100 -100 +400

11302018 8312018 5312018 2282018 11302017

Policy Guidelines


IRR Overview



IRR Overview


00

20

40

60

80

100

120

140

EVE Ratio (EVEEVA)

-250

-200

-150

-100

-50

00


0

20000

40000

60000

80000

100000

120000

140000


00

20

40

60

80

100

120

EVE Ratio (EVEEVA)

-700

-600

-500

-400

-300

-200

-100

00

100

200


0

20000

40000

60000

80000

100000

120000





Executive Summary





1682 1631 1595 1570 1572

793 775 802

$1624$10536306 301

$10493 $10415298

$8437$1510$1782 $1597

$10591296

$1585

$8861 $8849

1000500

17531083

1700

1638 16401033

16631052 10351057

$10531297

$8879$398$395

951 953

$8485$8203 $8352 $8223$8589

$500792 786

$8733$535$435

057 058

057946 922

955056058

11302018 8312018 5312018 2282018 11302017

Policy Guidelines





derivatives









Still Strong





income




Potential Strategy





1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563







Still Strong





income



Potential Strategy





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563


Case Study 2



Executive Summary






25001500

1500 422 430 336

55 691000 272 280 243 228 241

82 95 61

340

465100 00 57 73

14 19

14 19 89 111 96

10312018

7312018 4302018 1312018 10312017

32 38

305

Policy Guidelines









Net Cash Flow $5MM













Down 200BP

Up 200BP


Down 200BP

Up 200BP





1000

1500

800

-1083

456

390

11831381

285

-71

05

-32

-02

-06-09-20 -13 -08 -09

-15 03

-3318 36 31 14 35

-31

1270

-130 1140

414

-861 -2000

-198

374

424

443325 304

348301

380

352 307261

-31

-100-200


Executive Summary

10312018

7312018 4302018 1312018 10312017

Policy Guidelines







Equity

Other Liabilities

DDA

NOW

Savings

Utilization

Excess

8997

74303

132849 130877

Excess

244348

285

7025

7233165306

58546

65306

58546

464

244348

456

111499

49611

6386

64499

149136

244348

244348

390

Up 400BP 24M

113471

49611

64499

69529

49611

6386 6386

64499

Excess

64499

65306 65306

25284

90590

6386

Down 200BP Up 200BP

Excess


95212

49611

Base

50967

116273

17481958546 58546




Executive Summary

CAPITAL RATIOS







800 1551 1558 1536 1519 1532

8000 724 717 753

$845$4606323 342

$4572 $4546329

$3527$814$1010 $775

$4840312

$978

$4171 $3922

1200800

16321051

1639

1600 16161048

16181077 10581091

$4820306

$4214$148$92

898 886

$3493$3480 $3492 $3398$3807

$172758 742

$3863$207$67

070 071

070831 828

884070071

10312018

7312018 4302018 1312018 10312017

Policy Guidelines








Liquidity


IRR





Potential Strategy



Loan Floor


1 $524 $559 $552

2 $511 $589 $552

Total $1035 $1148 $1104


1 $186 $-87 $-87

2 $415 $-87 $-87

3 $415 $-88 $-88

Total $1016 $-262 $-262





Funded with cash

Liquidity




sensitive posture

Earnings





MBS Premium risk

Potential Strategy



Cash Extension


1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $325 $359 $174 $25

2 $503 $586 $157 $-129

3 $369 $486 $158 $-109

Total $1197 $1431 $489 $-213




90 days





Still Strong



sensitive posture




fall





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $248 $284 $200 $152

2 $428 $517 $222 $16

3 $411 $512 $218 $24

Total $1087 $1313 $640 $192



Investments

Loans

Deposits

Wholesale

Other

ALCO Action Items


Closing Thoughts


Different Lenses









Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response









Slide Number 24






Slide Number 30





Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends









Lending Strategies


Loan Pricing




Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts
































OTHER NOTES















































OTHER NOTES



















Security Collateral









Other Liquid Assets


0

Pct Of Assets0

122500

0

35000 47500 0

82500

0 0 00 -25000 00 -10000 0

0 0 00 0 0

0 0 0

35000 85000 0



I LIQUID ASSETS

400001200000

Basic Surplus





























Brokered capacity




BASIC SURPLUS








1200000

120000

385000 321

265000 221


325000105000

220000


420000325000

77500

45000 38

30 500010 65000


5000

25 2500

Basic Surplus







Management Response






Uninsured Deposits





Rate Cap

Savings 010 085

Checking 006 081

MMDA 018 093

6M CD 038 113

12M CD 065 140

24M CD 085 160

36M CD 098 173


Rate Cap

Savings 006 081

Checking 004 079

MMDA 009 084

6M CD 017 092

12M CD 029 104

24M CD 044 119

36M CD 059 134


Rate Cap

Savings 006 081

Checking 004 079

MMDA 008 083

6M CD 013 088

12M CD 022 097

24M CD 036 111

36M CD 049 124





150 205 190

225 270 245



SampP Global




























Contracting Economy


Expanding Economy






















2017 Trend

2018 Trend




Benchmark Wholesale

Costs




90-Day 246

1 256

2 259

3 261

4 265

5 269

7 296

10 319




Analyzing Attrition
















Core Customers





Savings Rate = 015





4 Accounts

Savings Rate = 005



Next Move on MMDAs
















Legacy MMDA Trends



















11 Month CD Special















Lending Strategies








Loan Pricing




WSJP = 550

529

WSJP + 050 = 600



As of March 2019








Asset Sensitive

Liability Sensitive

Awareness Varies

Appetites Vary





Interest Rate Risk



Asset Yields

Funding Costs






Asset Sensitive

A Little of Both

Liability Sensitive











Liability Sensitive



025

225

425

625

825

025



BASE SIMULATION

025

225

425

625

825

025












approach)















Case Study 1







20001000

3000

800 405 421 408

66 65400 305 321 308 288 287

66 72 58

337

510000 00 00 00

41 38

41 38 38 48 51

11302018 8312018 5312018 2282018 11302017

38 48

388

Policy Guidelines


Executive Summary




Security Collateral










TOTAL LIQUID ASSETS

47554 43689

-1493 0

0 0

0

0

0

00 0

000

0

000

1059061

Pct Of Assets

120


0

91243

478

1397

0

126603

49524 45988

-478 0

I LIQUID ASSETS

33486

UST amp Agency



950






BASIC SURPLUS








105906

of Total Deposits63

253210

296714

56323

529530296714

429395

0

105906


Well Capitalized

lt Well Capitalized

Policy Limits (Min)

43504


10 53179

25 129430


0

1850

323489

405 80

66 20

305

70280

40 80












Strategy Discussion

Deposit Trends




467 496 455 446 428


Strategy Discussion

Loan Pricing




Executive Summary



Down 200BP

Up 200BP


Down 200BP

Up 200BP





-1000

700

-1562

548

494

10121255

249

-61

12571148

-22

-73

-24

-25-21-29 -24 -22 -21

-27 -29

-89-21 -21 04 -06 -35

-6125 14 25 21 -02

12531266

-123-16611301176

-90

477

-2284 -768-638-2000

1068

-453-243 -109

468

488

1234

516397 345

429359

485

431 407285

-62

-100-200 -100 -100 +400

11302018 8312018 5312018 2282018 11302017

Policy Guidelines


IRR Overview



IRR Overview


00

20

40

60

80

100

120

140

EVE Ratio (EVEEVA)

-250

-200

-150

-100

-50

00


0

20000

40000

60000

80000

100000

120000

140000


00

20

40

60

80

100

120

EVE Ratio (EVEEVA)

-700

-600

-500

-400

-300

-200

-100

00

100

200


0

20000

40000

60000

80000

100000

120000





Executive Summary





1682 1631 1595 1570 1572

793 775 802

$1624$10536306 301

$10493 $10415298

$8437$1510$1782 $1597

$10591296

$1585

$8861 $8849

1000500

17531083

1700

1638 16401033

16631052 10351057

$10531297

$8879$398$395

951 953

$8485$8203 $8352 $8223$8589

$500792 786

$8733$535$435

057 058

057946 922

955056058

11302018 8312018 5312018 2282018 11302017

Policy Guidelines





derivatives









Still Strong





income




Potential Strategy





1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563







Still Strong





income



Potential Strategy





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563


Case Study 2



Executive Summary






25001500

1500 422 430 336

55 691000 272 280 243 228 241

82 95 61

340

465100 00 57 73

14 19

14 19 89 111 96

10312018

7312018 4302018 1312018 10312017

32 38

305

Policy Guidelines









Net Cash Flow $5MM













Down 200BP

Up 200BP


Down 200BP

Up 200BP





1000

1500

800

-1083

456

390

11831381

285

-71

05

-32

-02

-06-09-20 -13 -08 -09

-15 03

-3318 36 31 14 35

-31

1270

-130 1140

414

-861 -2000

-198

374

424

443325 304

348301

380

352 307261

-31

-100-200


Executive Summary

10312018

7312018 4302018 1312018 10312017

Policy Guidelines







Equity

Other Liabilities

DDA

NOW

Savings

Utilization

Excess

8997

74303

132849 130877

Excess

244348

285

7025

7233165306

58546

65306

58546

464

244348

456

111499

49611

6386

64499

149136

244348

244348

390

Up 400BP 24M

113471

49611

64499

69529

49611

6386 6386

64499

Excess

64499

65306 65306

25284

90590

6386

Down 200BP Up 200BP

Excess


95212

49611

Base

50967

116273

17481958546 58546




Executive Summary

CAPITAL RATIOS







800 1551 1558 1536 1519 1532

8000 724 717 753

$845$4606323 342

$4572 $4546329

$3527$814$1010 $775

$4840312

$978

$4171 $3922

1200800

16321051

1639

1600 16161048

16181077 10581091

$4820306

$4214$148$92

898 886

$3493$3480 $3492 $3398$3807

$172758 742

$3863$207$67

070 071

070831 828

884070071

10312018

7312018 4302018 1312018 10312017

Policy Guidelines








Liquidity


IRR





Potential Strategy



Loan Floor


1 $524 $559 $552

2 $511 $589 $552

Total $1035 $1148 $1104


1 $186 $-87 $-87

2 $415 $-87 $-87

3 $415 $-88 $-88

Total $1016 $-262 $-262





Funded with cash

Liquidity




sensitive posture

Earnings





MBS Premium risk

Potential Strategy



Cash Extension


1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $325 $359 $174 $25

2 $503 $586 $157 $-129

3 $369 $486 $158 $-109

Total $1197 $1431 $489 $-213




90 days





Still Strong



sensitive posture




fall





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $248 $284 $200 $152

2 $428 $517 $222 $16

3 $411 $512 $218 $24

Total $1087 $1313 $640 $192



Investments

Loans

Deposits

Wholesale

Other

ALCO Action Items


Closing Thoughts


Different Lenses









Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response









Slide Number 24






Slide Number 30





Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends









Lending Strategies


Loan Pricing




Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts
































OTHER NOTES















































OTHER NOTES












































Brokered capacity




BASIC SURPLUS








1200000

120000

385000 321

265000 221


325000105000

220000


420000325000

77500

45000 38

30 500010 65000


5000

25 2500

Basic Surplus







Management Response






Uninsured Deposits





Rate Cap

Savings 010 085

Checking 006 081

MMDA 018 093

6M CD 038 113

12M CD 065 140

24M CD 085 160

36M CD 098 173


Rate Cap

Savings 006 081

Checking 004 079

MMDA 009 084

6M CD 017 092

12M CD 029 104

24M CD 044 119

36M CD 059 134


Rate Cap

Savings 006 081

Checking 004 079

MMDA 008 083

6M CD 013 088

12M CD 022 097

24M CD 036 111

36M CD 049 124





150 205 190

225 270 245



SampP Global




























Contracting Economy


Expanding Economy






















2017 Trend

2018 Trend




Benchmark Wholesale

Costs




90-Day 246

1 256

2 259

3 261

4 265

5 269

7 296

10 319




Analyzing Attrition
















Core Customers





Savings Rate = 015





4 Accounts

Savings Rate = 005



Next Move on MMDAs
















Legacy MMDA Trends



















11 Month CD Special















Lending Strategies








Loan Pricing




WSJP = 550

529

WSJP + 050 = 600



As of March 2019








Asset Sensitive

Liability Sensitive

Awareness Varies

Appetites Vary





Interest Rate Risk



Asset Yields

Funding Costs






Asset Sensitive

A Little of Both

Liability Sensitive











Liability Sensitive



025

225

425

625

825

025



BASE SIMULATION

025

225

425

625

825

025












approach)















Case Study 1







20001000

3000

800 405 421 408

66 65400 305 321 308 288 287

66 72 58

337

510000 00 00 00

41 38

41 38 38 48 51

11302018 8312018 5312018 2282018 11302017

38 48

388

Policy Guidelines


Executive Summary




Security Collateral










TOTAL LIQUID ASSETS

47554 43689

-1493 0

0 0

0

0

0

00 0

000

0

000

1059061

Pct Of Assets

120


0

91243

478

1397

0

126603

49524 45988

-478 0

I LIQUID ASSETS

33486

UST amp Agency



950






BASIC SURPLUS








105906

of Total Deposits63

253210

296714

56323

529530296714

429395

0

105906


Well Capitalized

lt Well Capitalized

Policy Limits (Min)

43504


10 53179

25 129430


0

1850

323489

405 80

66 20

305

70280

40 80












Strategy Discussion

Deposit Trends




467 496 455 446 428


Strategy Discussion

Loan Pricing




Executive Summary



Down 200BP

Up 200BP


Down 200BP

Up 200BP





-1000

700

-1562

548

494

10121255

249

-61

12571148

-22

-73

-24

-25-21-29 -24 -22 -21

-27 -29

-89-21 -21 04 -06 -35

-6125 14 25 21 -02

12531266

-123-16611301176

-90

477

-2284 -768-638-2000

1068

-453-243 -109

468

488

1234

516397 345

429359

485

431 407285

-62

-100-200 -100 -100 +400

11302018 8312018 5312018 2282018 11302017

Policy Guidelines


IRR Overview



IRR Overview


00

20

40

60

80

100

120

140

EVE Ratio (EVEEVA)

-250

-200

-150

-100

-50

00


0

20000

40000

60000

80000

100000

120000

140000


00

20

40

60

80

100

120

EVE Ratio (EVEEVA)

-700

-600

-500

-400

-300

-200

-100

00

100

200


0

20000

40000

60000

80000

100000

120000





Executive Summary





1682 1631 1595 1570 1572

793 775 802

$1624$10536306 301

$10493 $10415298

$8437$1510$1782 $1597

$10591296

$1585

$8861 $8849

1000500

17531083

1700

1638 16401033

16631052 10351057

$10531297

$8879$398$395

951 953

$8485$8203 $8352 $8223$8589

$500792 786

$8733$535$435

057 058

057946 922

955056058

11302018 8312018 5312018 2282018 11302017

Policy Guidelines





derivatives









Still Strong





income




Potential Strategy





1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563







Still Strong





income



Potential Strategy





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563


Case Study 2



Executive Summary






25001500

1500 422 430 336

55 691000 272 280 243 228 241

82 95 61

340

465100 00 57 73

14 19

14 19 89 111 96

10312018

7312018 4302018 1312018 10312017

32 38

305

Policy Guidelines









Net Cash Flow $5MM













Down 200BP

Up 200BP


Down 200BP

Up 200BP





1000

1500

800

-1083

456

390

11831381

285

-71

05

-32

-02

-06-09-20 -13 -08 -09

-15 03

-3318 36 31 14 35

-31

1270

-130 1140

414

-861 -2000

-198

374

424

443325 304

348301

380

352 307261

-31

-100-200


Executive Summary

10312018

7312018 4302018 1312018 10312017

Policy Guidelines







Equity

Other Liabilities

DDA

NOW

Savings

Utilization

Excess

8997

74303

132849 130877

Excess

244348

285

7025

7233165306

58546

65306

58546

464

244348

456

111499

49611

6386

64499

149136

244348

244348

390

Up 400BP 24M

113471

49611

64499

69529

49611

6386 6386

64499

Excess

64499

65306 65306

25284

90590

6386

Down 200BP Up 200BP

Excess


95212

49611

Base

50967

116273

17481958546 58546




Executive Summary

CAPITAL RATIOS







800 1551 1558 1536 1519 1532

8000 724 717 753

$845$4606323 342

$4572 $4546329

$3527$814$1010 $775

$4840312

$978

$4171 $3922

1200800

16321051

1639

1600 16161048

16181077 10581091

$4820306

$4214$148$92

898 886

$3493$3480 $3492 $3398$3807

$172758 742

$3863$207$67

070 071

070831 828

884070071

10312018

7312018 4302018 1312018 10312017

Policy Guidelines








Liquidity


IRR





Potential Strategy



Loan Floor


1 $524 $559 $552

2 $511 $589 $552

Total $1035 $1148 $1104


1 $186 $-87 $-87

2 $415 $-87 $-87

3 $415 $-88 $-88

Total $1016 $-262 $-262





Funded with cash

Liquidity




sensitive posture

Earnings





MBS Premium risk

Potential Strategy



Cash Extension


1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $325 $359 $174 $25

2 $503 $586 $157 $-129

3 $369 $486 $158 $-109

Total $1197 $1431 $489 $-213




90 days





Still Strong



sensitive posture




fall





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $248 $284 $200 $152

2 $428 $517 $222 $16

3 $411 $512 $218 $24

Total $1087 $1313 $640 $192



Investments

Loans

Deposits

Wholesale

Other

ALCO Action Items


Closing Thoughts


Different Lenses









Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response









Slide Number 24






Slide Number 30





Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends









Lending Strategies


Loan Pricing




Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts
































OTHER NOTES






















Management Response






Uninsured Deposits





Rate Cap

Savings 010 085

Checking 006 081

MMDA 018 093

6M CD 038 113

12M CD 065 140

24M CD 085 160

36M CD 098 173


Rate Cap

Savings 006 081

Checking 004 079

MMDA 009 084

6M CD 017 092

12M CD 029 104

24M CD 044 119

36M CD 059 134


Rate Cap

Savings 006 081

Checking 004 079

MMDA 008 083

6M CD 013 088

12M CD 022 097

24M CD 036 111

36M CD 049 124





150 205 190

225 270 245



SampP Global




























Contracting Economy


Expanding Economy






















2017 Trend

2018 Trend




Benchmark Wholesale

Costs




90-Day 246

1 256

2 259

3 261

4 265

5 269

7 296

10 319




Analyzing Attrition
















Core Customers





Savings Rate = 015





4 Accounts

Savings Rate = 005



Next Move on MMDAs
















Legacy MMDA Trends



















11 Month CD Special















Lending Strategies








Loan Pricing




WSJP = 550

529

WSJP + 050 = 600



As of March 2019








Asset Sensitive

Liability Sensitive

Awareness Varies

Appetites Vary





Interest Rate Risk



Asset Yields

Funding Costs






Asset Sensitive

A Little of Both

Liability Sensitive











Liability Sensitive



025

225

425

625

825

025



BASE SIMULATION

025

225

425

625

825

025












approach)















Case Study 1







20001000

3000

800 405 421 408

66 65400 305 321 308 288 287

66 72 58

337

510000 00 00 00

41 38

41 38 38 48 51

11302018 8312018 5312018 2282018 11302017

38 48

388

Policy Guidelines


Executive Summary




Security Collateral










TOTAL LIQUID ASSETS

47554 43689

-1493 0

0 0

0

0

0

00 0

000

0

000

1059061

Pct Of Assets

120


0

91243

478

1397

0

126603

49524 45988

-478 0

I LIQUID ASSETS

33486

UST amp Agency



950






BASIC SURPLUS








105906

of Total Deposits63

253210

296714

56323

529530296714

429395

0

105906


Well Capitalized

lt Well Capitalized

Policy Limits (Min)

43504


10 53179

25 129430


0

1850

323489

405 80

66 20

305

70280

40 80












Strategy Discussion

Deposit Trends




467 496 455 446 428


Strategy Discussion

Loan Pricing




Executive Summary



Down 200BP

Up 200BP


Down 200BP

Up 200BP





-1000

700

-1562

548

494

10121255

249

-61

12571148

-22

-73

-24

-25-21-29 -24 -22 -21

-27 -29

-89-21 -21 04 -06 -35

-6125 14 25 21 -02

12531266

-123-16611301176

-90

477

-2284 -768-638-2000

1068

-453-243 -109

468

488

1234

516397 345

429359

485

431 407285

-62

-100-200 -100 -100 +400

11302018 8312018 5312018 2282018 11302017

Policy Guidelines


IRR Overview



IRR Overview


00

20

40

60

80

100

120

140

EVE Ratio (EVEEVA)

-250

-200

-150

-100

-50

00


0

20000

40000

60000

80000

100000

120000

140000


00

20

40

60

80

100

120

EVE Ratio (EVEEVA)

-700

-600

-500

-400

-300

-200

-100

00

100

200


0

20000

40000

60000

80000

100000

120000





Executive Summary





1682 1631 1595 1570 1572

793 775 802

$1624$10536306 301

$10493 $10415298

$8437$1510$1782 $1597

$10591296

$1585

$8861 $8849

1000500

17531083

1700

1638 16401033

16631052 10351057

$10531297

$8879$398$395

951 953

$8485$8203 $8352 $8223$8589

$500792 786

$8733$535$435

057 058

057946 922

955056058

11302018 8312018 5312018 2282018 11302017

Policy Guidelines





derivatives









Still Strong





income




Potential Strategy





1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563







Still Strong





income



Potential Strategy





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563


Case Study 2



Executive Summary






25001500

1500 422 430 336

55 691000 272 280 243 228 241

82 95 61

340

465100 00 57 73

14 19

14 19 89 111 96

10312018

7312018 4302018 1312018 10312017

32 38

305

Policy Guidelines









Net Cash Flow $5MM













Down 200BP

Up 200BP


Down 200BP

Up 200BP





1000

1500

800

-1083

456

390

11831381

285

-71

05

-32

-02

-06-09-20 -13 -08 -09

-15 03

-3318 36 31 14 35

-31

1270

-130 1140

414

-861 -2000

-198

374

424

443325 304

348301

380

352 307261

-31

-100-200


Executive Summary

10312018

7312018 4302018 1312018 10312017

Policy Guidelines







Equity

Other Liabilities

DDA

NOW

Savings

Utilization

Excess

8997

74303

132849 130877

Excess

244348

285

7025

7233165306

58546

65306

58546

464

244348

456

111499

49611

6386

64499

149136

244348

244348

390

Up 400BP 24M

113471

49611

64499

69529

49611

6386 6386

64499

Excess

64499

65306 65306

25284

90590

6386

Down 200BP Up 200BP

Excess


95212

49611

Base

50967

116273

17481958546 58546




Executive Summary

CAPITAL RATIOS







800 1551 1558 1536 1519 1532

8000 724 717 753

$845$4606323 342

$4572 $4546329

$3527$814$1010 $775

$4840312

$978

$4171 $3922

1200800

16321051

1639

1600 16161048

16181077 10581091

$4820306

$4214$148$92

898 886

$3493$3480 $3492 $3398$3807

$172758 742

$3863$207$67

070 071

070831 828

884070071

10312018

7312018 4302018 1312018 10312017

Policy Guidelines








Liquidity


IRR





Potential Strategy



Loan Floor


1 $524 $559 $552

2 $511 $589 $552

Total $1035 $1148 $1104


1 $186 $-87 $-87

2 $415 $-87 $-87

3 $415 $-88 $-88

Total $1016 $-262 $-262





Funded with cash

Liquidity




sensitive posture

Earnings





MBS Premium risk

Potential Strategy



Cash Extension


1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $325 $359 $174 $25

2 $503 $586 $157 $-129

3 $369 $486 $158 $-109

Total $1197 $1431 $489 $-213




90 days





Still Strong



sensitive posture




fall





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $248 $284 $200 $152

2 $428 $517 $222 $16

3 $411 $512 $218 $24

Total $1087 $1313 $640 $192



Investments

Loans

Deposits

Wholesale

Other

ALCO Action Items


Closing Thoughts


Different Lenses









Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response









Slide Number 24






Slide Number 30





Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends









Lending Strategies


Loan Pricing




Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts





Uninsured Deposits





Rate Cap

Savings 010 085

Checking 006 081

MMDA 018 093

6M CD 038 113

12M CD 065 140

24M CD 085 160

36M CD 098 173


Rate Cap

Savings 006 081

Checking 004 079

MMDA 009 084

6M CD 017 092

12M CD 029 104

24M CD 044 119

36M CD 059 134


Rate Cap

Savings 006 081

Checking 004 079

MMDA 008 083

6M CD 013 088

12M CD 022 097

24M CD 036 111

36M CD 049 124





150 205 190

225 270 245



SampP Global




























Contracting Economy


Expanding Economy






















2017 Trend

2018 Trend




Benchmark Wholesale

Costs




90-Day 246

1 256

2 259

3 261

4 265

5 269

7 296

10 319




Analyzing Attrition
















Core Customers





Savings Rate = 015





4 Accounts

Savings Rate = 005



Next Move on MMDAs
















Legacy MMDA Trends



















11 Month CD Special















Lending Strategies








Loan Pricing




WSJP = 550

529

WSJP + 050 = 600



As of March 2019








Asset Sensitive

Liability Sensitive

Awareness Varies

Appetites Vary





Interest Rate Risk



Asset Yields

Funding Costs






Asset Sensitive

A Little of Both

Liability Sensitive











Liability Sensitive



025

225

425

625

825

025



BASE SIMULATION

025

225

425

625

825

025












approach)















Case Study 1







20001000

3000

800 405 421 408

66 65400 305 321 308 288 287

66 72 58

337

510000 00 00 00

41 38

41 38 38 48 51

11302018 8312018 5312018 2282018 11302017

38 48

388

Policy Guidelines


Executive Summary




Security Collateral










TOTAL LIQUID ASSETS

47554 43689

-1493 0

0 0

0

0

0

00 0

000

0

000

1059061

Pct Of Assets

120


0

91243

478

1397

0

126603

49524 45988

-478 0

I LIQUID ASSETS

33486

UST amp Agency



950






BASIC SURPLUS








105906

of Total Deposits63

253210

296714

56323

529530296714

429395

0

105906


Well Capitalized

lt Well Capitalized

Policy Limits (Min)

43504


10 53179

25 129430


0

1850

323489

405 80

66 20

305

70280

40 80












Strategy Discussion

Deposit Trends




467 496 455 446 428


Strategy Discussion

Loan Pricing




Executive Summary



Down 200BP

Up 200BP


Down 200BP

Up 200BP





-1000

700

-1562

548

494

10121255

249

-61

12571148

-22

-73

-24

-25-21-29 -24 -22 -21

-27 -29

-89-21 -21 04 -06 -35

-6125 14 25 21 -02

12531266

-123-16611301176

-90

477

-2284 -768-638-2000

1068

-453-243 -109

468

488

1234

516397 345

429359

485

431 407285

-62

-100-200 -100 -100 +400

11302018 8312018 5312018 2282018 11302017

Policy Guidelines


IRR Overview



IRR Overview


00

20

40

60

80

100

120

140

EVE Ratio (EVEEVA)

-250

-200

-150

-100

-50

00


0

20000

40000

60000

80000

100000

120000

140000


00

20

40

60

80

100

120

EVE Ratio (EVEEVA)

-700

-600

-500

-400

-300

-200

-100

00

100

200


0

20000

40000

60000

80000

100000

120000





Executive Summary





1682 1631 1595 1570 1572

793 775 802

$1624$10536306 301

$10493 $10415298

$8437$1510$1782 $1597

$10591296

$1585

$8861 $8849

1000500

17531083

1700

1638 16401033

16631052 10351057

$10531297

$8879$398$395

951 953

$8485$8203 $8352 $8223$8589

$500792 786

$8733$535$435

057 058

057946 922

955056058

11302018 8312018 5312018 2282018 11302017

Policy Guidelines





derivatives









Still Strong





income




Potential Strategy





1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563







Still Strong





income



Potential Strategy





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563


Case Study 2



Executive Summary






25001500

1500 422 430 336

55 691000 272 280 243 228 241

82 95 61

340

465100 00 57 73

14 19

14 19 89 111 96

10312018

7312018 4302018 1312018 10312017

32 38

305

Policy Guidelines









Net Cash Flow $5MM













Down 200BP

Up 200BP


Down 200BP

Up 200BP





1000

1500

800

-1083

456

390

11831381

285

-71

05

-32

-02

-06-09-20 -13 -08 -09

-15 03

-3318 36 31 14 35

-31

1270

-130 1140

414

-861 -2000

-198

374

424

443325 304

348301

380

352 307261

-31

-100-200


Executive Summary

10312018

7312018 4302018 1312018 10312017

Policy Guidelines







Equity

Other Liabilities

DDA

NOW

Savings

Utilization

Excess

8997

74303

132849 130877

Excess

244348

285

7025

7233165306

58546

65306

58546

464

244348

456

111499

49611

6386

64499

149136

244348

244348

390

Up 400BP 24M

113471

49611

64499

69529

49611

6386 6386

64499

Excess

64499

65306 65306

25284

90590

6386

Down 200BP Up 200BP

Excess


95212

49611

Base

50967

116273

17481958546 58546




Executive Summary

CAPITAL RATIOS







800 1551 1558 1536 1519 1532

8000 724 717 753

$845$4606323 342

$4572 $4546329

$3527$814$1010 $775

$4840312

$978

$4171 $3922

1200800

16321051

1639

1600 16161048

16181077 10581091

$4820306

$4214$148$92

898 886

$3493$3480 $3492 $3398$3807

$172758 742

$3863$207$67

070 071

070831 828

884070071

10312018

7312018 4302018 1312018 10312017

Policy Guidelines








Liquidity


IRR





Potential Strategy



Loan Floor


1 $524 $559 $552

2 $511 $589 $552

Total $1035 $1148 $1104


1 $186 $-87 $-87

2 $415 $-87 $-87

3 $415 $-88 $-88

Total $1016 $-262 $-262





Funded with cash

Liquidity




sensitive posture

Earnings





MBS Premium risk

Potential Strategy



Cash Extension


1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $325 $359 $174 $25

2 $503 $586 $157 $-129

3 $369 $486 $158 $-109

Total $1197 $1431 $489 $-213




90 days





Still Strong



sensitive posture




fall





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $248 $284 $200 $152

2 $428 $517 $222 $16

3 $411 $512 $218 $24

Total $1087 $1313 $640 $192



Investments

Loans

Deposits

Wholesale

Other

ALCO Action Items


Closing Thoughts


Different Lenses









Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response









Slide Number 24






Slide Number 30





Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends









Lending Strategies


Loan Pricing




Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts



Rate Cap

Savings 010 085

Checking 006 081

MMDA 018 093

6M CD 038 113

12M CD 065 140

24M CD 085 160

36M CD 098 173


Rate Cap

Savings 006 081

Checking 004 079

MMDA 009 084

6M CD 017 092

12M CD 029 104

24M CD 044 119

36M CD 059 134


Rate Cap

Savings 006 081

Checking 004 079

MMDA 008 083

6M CD 013 088

12M CD 022 097

24M CD 036 111

36M CD 049 124





150 205 190

225 270 245



SampP Global




























Contracting Economy


Expanding Economy






















2017 Trend

2018 Trend




Benchmark Wholesale

Costs




90-Day 246

1 256

2 259

3 261

4 265

5 269

7 296

10 319




Analyzing Attrition
















Core Customers





Savings Rate = 015





4 Accounts

Savings Rate = 005



Next Move on MMDAs
















Legacy MMDA Trends



















11 Month CD Special















Lending Strategies








Loan Pricing




WSJP = 550

529

WSJP + 050 = 600



As of March 2019








Asset Sensitive

Liability Sensitive

Awareness Varies

Appetites Vary





Interest Rate Risk



Asset Yields

Funding Costs






Asset Sensitive

A Little of Both

Liability Sensitive











Liability Sensitive



025

225

425

625

825

025



BASE SIMULATION

025

225

425

625

825

025












approach)















Case Study 1







20001000

3000

800 405 421 408

66 65400 305 321 308 288 287

66 72 58

337

510000 00 00 00

41 38

41 38 38 48 51

11302018 8312018 5312018 2282018 11302017

38 48

388

Policy Guidelines


Executive Summary




Security Collateral










TOTAL LIQUID ASSETS

47554 43689

-1493 0

0 0

0

0

0

00 0

000

0

000

1059061

Pct Of Assets

120


0

91243

478

1397

0

126603

49524 45988

-478 0

I LIQUID ASSETS

33486

UST amp Agency



950






BASIC SURPLUS








105906

of Total Deposits63

253210

296714

56323

529530296714

429395

0

105906


Well Capitalized

lt Well Capitalized

Policy Limits (Min)

43504


10 53179

25 129430


0

1850

323489

405 80

66 20

305

70280

40 80












Strategy Discussion

Deposit Trends




467 496 455 446 428


Strategy Discussion

Loan Pricing




Executive Summary



Down 200BP

Up 200BP


Down 200BP

Up 200BP





-1000

700

-1562

548

494

10121255

249

-61

12571148

-22

-73

-24

-25-21-29 -24 -22 -21

-27 -29

-89-21 -21 04 -06 -35

-6125 14 25 21 -02

12531266

-123-16611301176

-90

477

-2284 -768-638-2000

1068

-453-243 -109

468

488

1234

516397 345

429359

485

431 407285

-62

-100-200 -100 -100 +400

11302018 8312018 5312018 2282018 11302017

Policy Guidelines


IRR Overview



IRR Overview


00

20

40

60

80

100

120

140

EVE Ratio (EVEEVA)

-250

-200

-150

-100

-50

00


0

20000

40000

60000

80000

100000

120000

140000


00

20

40

60

80

100

120

EVE Ratio (EVEEVA)

-700

-600

-500

-400

-300

-200

-100

00

100

200


0

20000

40000

60000

80000

100000

120000





Executive Summary





1682 1631 1595 1570 1572

793 775 802

$1624$10536306 301

$10493 $10415298

$8437$1510$1782 $1597

$10591296

$1585

$8861 $8849

1000500

17531083

1700

1638 16401033

16631052 10351057

$10531297

$8879$398$395

951 953

$8485$8203 $8352 $8223$8589

$500792 786

$8733$535$435

057 058

057946 922

955056058

11302018 8312018 5312018 2282018 11302017

Policy Guidelines





derivatives









Still Strong





income




Potential Strategy





1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563







Still Strong





income



Potential Strategy





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563


Case Study 2



Executive Summary






25001500

1500 422 430 336

55 691000 272 280 243 228 241

82 95 61

340

465100 00 57 73

14 19

14 19 89 111 96

10312018

7312018 4302018 1312018 10312017

32 38

305

Policy Guidelines









Net Cash Flow $5MM













Down 200BP

Up 200BP


Down 200BP

Up 200BP





1000

1500

800

-1083

456

390

11831381

285

-71

05

-32

-02

-06-09-20 -13 -08 -09

-15 03

-3318 36 31 14 35

-31

1270

-130 1140

414

-861 -2000

-198

374

424

443325 304

348301

380

352 307261

-31

-100-200


Executive Summary

10312018

7312018 4302018 1312018 10312017

Policy Guidelines







Equity

Other Liabilities

DDA

NOW

Savings

Utilization

Excess

8997

74303

132849 130877

Excess

244348

285

7025

7233165306

58546

65306

58546

464

244348

456

111499

49611

6386

64499

149136

244348

244348

390

Up 400BP 24M

113471

49611

64499

69529

49611

6386 6386

64499

Excess

64499

65306 65306

25284

90590

6386

Down 200BP Up 200BP

Excess


95212

49611

Base

50967

116273

17481958546 58546




Executive Summary

CAPITAL RATIOS







800 1551 1558 1536 1519 1532

8000 724 717 753

$845$4606323 342

$4572 $4546329

$3527$814$1010 $775

$4840312

$978

$4171 $3922

1200800

16321051

1639

1600 16161048

16181077 10581091

$4820306

$4214$148$92

898 886

$3493$3480 $3492 $3398$3807

$172758 742

$3863$207$67

070 071

070831 828

884070071

10312018

7312018 4302018 1312018 10312017

Policy Guidelines








Liquidity


IRR





Potential Strategy



Loan Floor


1 $524 $559 $552

2 $511 $589 $552

Total $1035 $1148 $1104


1 $186 $-87 $-87

2 $415 $-87 $-87

3 $415 $-88 $-88

Total $1016 $-262 $-262





Funded with cash

Liquidity




sensitive posture

Earnings





MBS Premium risk

Potential Strategy



Cash Extension


1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $325 $359 $174 $25

2 $503 $586 $157 $-129

3 $369 $486 $158 $-109

Total $1197 $1431 $489 $-213




90 days





Still Strong



sensitive posture




fall





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $248 $284 $200 $152

2 $428 $517 $222 $16

3 $411 $512 $218 $24

Total $1087 $1313 $640 $192



Investments

Loans

Deposits

Wholesale

Other

ALCO Action Items


Closing Thoughts


Different Lenses









Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response









Slide Number 24






Slide Number 30





Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends









Lending Strategies


Loan Pricing




Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts



SampP Global




























Contracting Economy


Expanding Economy






















2017 Trend

2018 Trend




Benchmark Wholesale

Costs




90-Day 246

1 256

2 259

3 261

4 265

5 269

7 296

10 319




Analyzing Attrition
















Core Customers





Savings Rate = 015





4 Accounts

Savings Rate = 005



Next Move on MMDAs
















Legacy MMDA Trends



















11 Month CD Special















Lending Strategies








Loan Pricing




WSJP = 550

529

WSJP + 050 = 600



As of March 2019








Asset Sensitive

Liability Sensitive

Awareness Varies

Appetites Vary





Interest Rate Risk



Asset Yields

Funding Costs






Asset Sensitive

A Little of Both

Liability Sensitive











Liability Sensitive



025

225

425

625

825

025



BASE SIMULATION

025

225

425

625

825

025












approach)















Case Study 1







20001000

3000

800 405 421 408

66 65400 305 321 308 288 287

66 72 58

337

510000 00 00 00

41 38

41 38 38 48 51

11302018 8312018 5312018 2282018 11302017

38 48

388

Policy Guidelines


Executive Summary




Security Collateral










TOTAL LIQUID ASSETS

47554 43689

-1493 0

0 0

0

0

0

00 0

000

0

000

1059061

Pct Of Assets

120


0

91243

478

1397

0

126603

49524 45988

-478 0

I LIQUID ASSETS

33486

UST amp Agency



950






BASIC SURPLUS








105906

of Total Deposits63

253210

296714

56323

529530296714

429395

0

105906


Well Capitalized

lt Well Capitalized

Policy Limits (Min)

43504


10 53179

25 129430


0

1850

323489

405 80

66 20

305

70280

40 80












Strategy Discussion

Deposit Trends




467 496 455 446 428


Strategy Discussion

Loan Pricing




Executive Summary



Down 200BP

Up 200BP


Down 200BP

Up 200BP





-1000

700

-1562

548

494

10121255

249

-61

12571148

-22

-73

-24

-25-21-29 -24 -22 -21

-27 -29

-89-21 -21 04 -06 -35

-6125 14 25 21 -02

12531266

-123-16611301176

-90

477

-2284 -768-638-2000

1068

-453-243 -109

468

488

1234

516397 345

429359

485

431 407285

-62

-100-200 -100 -100 +400

11302018 8312018 5312018 2282018 11302017

Policy Guidelines


IRR Overview



IRR Overview


00

20

40

60

80

100

120

140

EVE Ratio (EVEEVA)

-250

-200

-150

-100

-50

00


0

20000

40000

60000

80000

100000

120000

140000


00

20

40

60

80

100

120

EVE Ratio (EVEEVA)

-700

-600

-500

-400

-300

-200

-100

00

100

200


0

20000

40000

60000

80000

100000

120000





Executive Summary





1682 1631 1595 1570 1572

793 775 802

$1624$10536306 301

$10493 $10415298

$8437$1510$1782 $1597

$10591296

$1585

$8861 $8849

1000500

17531083

1700

1638 16401033

16631052 10351057

$10531297

$8879$398$395

951 953

$8485$8203 $8352 $8223$8589

$500792 786

$8733$535$435

057 058

057946 922

955056058

11302018 8312018 5312018 2282018 11302017

Policy Guidelines





derivatives









Still Strong





income




Potential Strategy





1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563







Still Strong





income



Potential Strategy





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563


Case Study 2



Executive Summary






25001500

1500 422 430 336

55 691000 272 280 243 228 241

82 95 61

340

465100 00 57 73

14 19

14 19 89 111 96

10312018

7312018 4302018 1312018 10312017

32 38

305

Policy Guidelines









Net Cash Flow $5MM













Down 200BP

Up 200BP


Down 200BP

Up 200BP





1000

1500

800

-1083

456

390

11831381

285

-71

05

-32

-02

-06-09-20 -13 -08 -09

-15 03

-3318 36 31 14 35

-31

1270

-130 1140

414

-861 -2000

-198

374

424

443325 304

348301

380

352 307261

-31

-100-200


Executive Summary

10312018

7312018 4302018 1312018 10312017

Policy Guidelines







Equity

Other Liabilities

DDA

NOW

Savings

Utilization

Excess

8997

74303

132849 130877

Excess

244348

285

7025

7233165306

58546

65306

58546

464

244348

456

111499

49611

6386

64499

149136

244348

244348

390

Up 400BP 24M

113471

49611

64499

69529

49611

6386 6386

64499

Excess

64499

65306 65306

25284

90590

6386

Down 200BP Up 200BP

Excess


95212

49611

Base

50967

116273

17481958546 58546




Executive Summary

CAPITAL RATIOS







800 1551 1558 1536 1519 1532

8000 724 717 753

$845$4606323 342

$4572 $4546329

$3527$814$1010 $775

$4840312

$978

$4171 $3922

1200800

16321051

1639

1600 16161048

16181077 10581091

$4820306

$4214$148$92

898 886

$3493$3480 $3492 $3398$3807

$172758 742

$3863$207$67

070 071

070831 828

884070071

10312018

7312018 4302018 1312018 10312017

Policy Guidelines








Liquidity


IRR





Potential Strategy



Loan Floor


1 $524 $559 $552

2 $511 $589 $552

Total $1035 $1148 $1104


1 $186 $-87 $-87

2 $415 $-87 $-87

3 $415 $-88 $-88

Total $1016 $-262 $-262





Funded with cash

Liquidity




sensitive posture

Earnings





MBS Premium risk

Potential Strategy



Cash Extension


1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $325 $359 $174 $25

2 $503 $586 $157 $-129

3 $369 $486 $158 $-109

Total $1197 $1431 $489 $-213




90 days





Still Strong



sensitive posture




fall





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $248 $284 $200 $152

2 $428 $517 $222 $16

3 $411 $512 $218 $24

Total $1087 $1313 $640 $192



Investments

Loans

Deposits

Wholesale

Other

ALCO Action Items


Closing Thoughts


Different Lenses









Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response









Slide Number 24






Slide Number 30





Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends









Lending Strategies


Loan Pricing




Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts


























Contracting Economy


Expanding Economy






















2017 Trend

2018 Trend




Benchmark Wholesale

Costs




90-Day 246

1 256

2 259

3 261

4 265

5 269

7 296

10 319




Analyzing Attrition
















Core Customers





Savings Rate = 015





4 Accounts

Savings Rate = 005



Next Move on MMDAs
















Legacy MMDA Trends



















11 Month CD Special















Lending Strategies








Loan Pricing




WSJP = 550

529

WSJP + 050 = 600



As of March 2019








Asset Sensitive

Liability Sensitive

Awareness Varies

Appetites Vary





Interest Rate Risk



Asset Yields

Funding Costs






Asset Sensitive

A Little of Both

Liability Sensitive











Liability Sensitive



025

225

425

625

825

025



BASE SIMULATION

025

225

425

625

825

025












approach)















Case Study 1







20001000

3000

800 405 421 408

66 65400 305 321 308 288 287

66 72 58

337

510000 00 00 00

41 38

41 38 38 48 51

11302018 8312018 5312018 2282018 11302017

38 48

388

Policy Guidelines


Executive Summary




Security Collateral










TOTAL LIQUID ASSETS

47554 43689

-1493 0

0 0

0

0

0

00 0

000

0

000

1059061

Pct Of Assets

120


0

91243

478

1397

0

126603

49524 45988

-478 0

I LIQUID ASSETS

33486

UST amp Agency



950






BASIC SURPLUS








105906

of Total Deposits63

253210

296714

56323

529530296714

429395

0

105906


Well Capitalized

lt Well Capitalized

Policy Limits (Min)

43504


10 53179

25 129430


0

1850

323489

405 80

66 20

305

70280

40 80












Strategy Discussion

Deposit Trends




467 496 455 446 428


Strategy Discussion

Loan Pricing




Executive Summary



Down 200BP

Up 200BP


Down 200BP

Up 200BP





-1000

700

-1562

548

494

10121255

249

-61

12571148

-22

-73

-24

-25-21-29 -24 -22 -21

-27 -29

-89-21 -21 04 -06 -35

-6125 14 25 21 -02

12531266

-123-16611301176

-90

477

-2284 -768-638-2000

1068

-453-243 -109

468

488

1234

516397 345

429359

485

431 407285

-62

-100-200 -100 -100 +400

11302018 8312018 5312018 2282018 11302017

Policy Guidelines


IRR Overview



IRR Overview


00

20

40

60

80

100

120

140

EVE Ratio (EVEEVA)

-250

-200

-150

-100

-50

00


0

20000

40000

60000

80000

100000

120000

140000


00

20

40

60

80

100

120

EVE Ratio (EVEEVA)

-700

-600

-500

-400

-300

-200

-100

00

100

200


0

20000

40000

60000

80000

100000

120000





Executive Summary





1682 1631 1595 1570 1572

793 775 802

$1624$10536306 301

$10493 $10415298

$8437$1510$1782 $1597

$10591296

$1585

$8861 $8849

1000500

17531083

1700

1638 16401033

16631052 10351057

$10531297

$8879$398$395

951 953

$8485$8203 $8352 $8223$8589

$500792 786

$8733$535$435

057 058

057946 922

955056058

11302018 8312018 5312018 2282018 11302017

Policy Guidelines





derivatives









Still Strong





income




Potential Strategy





1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563







Still Strong





income



Potential Strategy





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563


Case Study 2



Executive Summary






25001500

1500 422 430 336

55 691000 272 280 243 228 241

82 95 61

340

465100 00 57 73

14 19

14 19 89 111 96

10312018

7312018 4302018 1312018 10312017

32 38

305

Policy Guidelines









Net Cash Flow $5MM













Down 200BP

Up 200BP


Down 200BP

Up 200BP





1000

1500

800

-1083

456

390

11831381

285

-71

05

-32

-02

-06-09-20 -13 -08 -09

-15 03

-3318 36 31 14 35

-31

1270

-130 1140

414

-861 -2000

-198

374

424

443325 304

348301

380

352 307261

-31

-100-200


Executive Summary

10312018

7312018 4302018 1312018 10312017

Policy Guidelines







Equity

Other Liabilities

DDA

NOW

Savings

Utilization

Excess

8997

74303

132849 130877

Excess

244348

285

7025

7233165306

58546

65306

58546

464

244348

456

111499

49611

6386

64499

149136

244348

244348

390

Up 400BP 24M

113471

49611

64499

69529

49611

6386 6386

64499

Excess

64499

65306 65306

25284

90590

6386

Down 200BP Up 200BP

Excess


95212

49611

Base

50967

116273

17481958546 58546




Executive Summary

CAPITAL RATIOS







800 1551 1558 1536 1519 1532

8000 724 717 753

$845$4606323 342

$4572 $4546329

$3527$814$1010 $775

$4840312

$978

$4171 $3922

1200800

16321051

1639

1600 16161048

16181077 10581091

$4820306

$4214$148$92

898 886

$3493$3480 $3492 $3398$3807

$172758 742

$3863$207$67

070 071

070831 828

884070071

10312018

7312018 4302018 1312018 10312017

Policy Guidelines








Liquidity


IRR





Potential Strategy



Loan Floor


1 $524 $559 $552

2 $511 $589 $552

Total $1035 $1148 $1104


1 $186 $-87 $-87

2 $415 $-87 $-87

3 $415 $-88 $-88

Total $1016 $-262 $-262





Funded with cash

Liquidity




sensitive posture

Earnings





MBS Premium risk

Potential Strategy



Cash Extension


1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $325 $359 $174 $25

2 $503 $586 $157 $-129

3 $369 $486 $158 $-109

Total $1197 $1431 $489 $-213




90 days





Still Strong



sensitive posture




fall





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $248 $284 $200 $152

2 $428 $517 $222 $16

3 $411 $512 $218 $24

Total $1087 $1313 $640 $192



Investments

Loans

Deposits

Wholesale

Other

ALCO Action Items


Closing Thoughts


Different Lenses









Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response









Slide Number 24






Slide Number 30





Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends









Lending Strategies


Loan Pricing




Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts



















2017 Trend

2018 Trend




Benchmark Wholesale

Costs




90-Day 246

1 256

2 259

3 261

4 265

5 269

7 296

10 319




Analyzing Attrition
















Core Customers





Savings Rate = 015





4 Accounts

Savings Rate = 005



Next Move on MMDAs
















Legacy MMDA Trends



















11 Month CD Special















Lending Strategies








Loan Pricing




WSJP = 550

529

WSJP + 050 = 600



As of March 2019








Asset Sensitive

Liability Sensitive

Awareness Varies

Appetites Vary





Interest Rate Risk



Asset Yields

Funding Costs






Asset Sensitive

A Little of Both

Liability Sensitive











Liability Sensitive



025

225

425

625

825

025



BASE SIMULATION

025

225

425

625

825

025












approach)















Case Study 1







20001000

3000

800 405 421 408

66 65400 305 321 308 288 287

66 72 58

337

510000 00 00 00

41 38

41 38 38 48 51

11302018 8312018 5312018 2282018 11302017

38 48

388

Policy Guidelines


Executive Summary




Security Collateral










TOTAL LIQUID ASSETS

47554 43689

-1493 0

0 0

0

0

0

00 0

000

0

000

1059061

Pct Of Assets

120


0

91243

478

1397

0

126603

49524 45988

-478 0

I LIQUID ASSETS

33486

UST amp Agency



950






BASIC SURPLUS








105906

of Total Deposits63

253210

296714

56323

529530296714

429395

0

105906


Well Capitalized

lt Well Capitalized

Policy Limits (Min)

43504


10 53179

25 129430


0

1850

323489

405 80

66 20

305

70280

40 80












Strategy Discussion

Deposit Trends




467 496 455 446 428


Strategy Discussion

Loan Pricing




Executive Summary



Down 200BP

Up 200BP


Down 200BP

Up 200BP





-1000

700

-1562

548

494

10121255

249

-61

12571148

-22

-73

-24

-25-21-29 -24 -22 -21

-27 -29

-89-21 -21 04 -06 -35

-6125 14 25 21 -02

12531266

-123-16611301176

-90

477

-2284 -768-638-2000

1068

-453-243 -109

468

488

1234

516397 345

429359

485

431 407285

-62

-100-200 -100 -100 +400

11302018 8312018 5312018 2282018 11302017

Policy Guidelines


IRR Overview



IRR Overview


00

20

40

60

80

100

120

140

EVE Ratio (EVEEVA)

-250

-200

-150

-100

-50

00


0

20000

40000

60000

80000

100000

120000

140000


00

20

40

60

80

100

120

EVE Ratio (EVEEVA)

-700

-600

-500

-400

-300

-200

-100

00

100

200


0

20000

40000

60000

80000

100000

120000





Executive Summary





1682 1631 1595 1570 1572

793 775 802

$1624$10536306 301

$10493 $10415298

$8437$1510$1782 $1597

$10591296

$1585

$8861 $8849

1000500

17531083

1700

1638 16401033

16631052 10351057

$10531297

$8879$398$395

951 953

$8485$8203 $8352 $8223$8589

$500792 786

$8733$535$435

057 058

057946 922

955056058

11302018 8312018 5312018 2282018 11302017

Policy Guidelines





derivatives









Still Strong





income




Potential Strategy





1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563







Still Strong





income



Potential Strategy





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563


Case Study 2



Executive Summary






25001500

1500 422 430 336

55 691000 272 280 243 228 241

82 95 61

340

465100 00 57 73

14 19

14 19 89 111 96

10312018

7312018 4302018 1312018 10312017

32 38

305

Policy Guidelines









Net Cash Flow $5MM













Down 200BP

Up 200BP


Down 200BP

Up 200BP





1000

1500

800

-1083

456

390

11831381

285

-71

05

-32

-02

-06-09-20 -13 -08 -09

-15 03

-3318 36 31 14 35

-31

1270

-130 1140

414

-861 -2000

-198

374

424

443325 304

348301

380

352 307261

-31

-100-200


Executive Summary

10312018

7312018 4302018 1312018 10312017

Policy Guidelines







Equity

Other Liabilities

DDA

NOW

Savings

Utilization

Excess

8997

74303

132849 130877

Excess

244348

285

7025

7233165306

58546

65306

58546

464

244348

456

111499

49611

6386

64499

149136

244348

244348

390

Up 400BP 24M

113471

49611

64499

69529

49611

6386 6386

64499

Excess

64499

65306 65306

25284

90590

6386

Down 200BP Up 200BP

Excess


95212

49611

Base

50967

116273

17481958546 58546




Executive Summary

CAPITAL RATIOS







800 1551 1558 1536 1519 1532

8000 724 717 753

$845$4606323 342

$4572 $4546329

$3527$814$1010 $775

$4840312

$978

$4171 $3922

1200800

16321051

1639

1600 16161048

16181077 10581091

$4820306

$4214$148$92

898 886

$3493$3480 $3492 $3398$3807

$172758 742

$3863$207$67

070 071

070831 828

884070071

10312018

7312018 4302018 1312018 10312017

Policy Guidelines








Liquidity


IRR





Potential Strategy



Loan Floor


1 $524 $559 $552

2 $511 $589 $552

Total $1035 $1148 $1104


1 $186 $-87 $-87

2 $415 $-87 $-87

3 $415 $-88 $-88

Total $1016 $-262 $-262





Funded with cash

Liquidity




sensitive posture

Earnings





MBS Premium risk

Potential Strategy



Cash Extension


1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $325 $359 $174 $25

2 $503 $586 $157 $-129

3 $369 $486 $158 $-109

Total $1197 $1431 $489 $-213




90 days





Still Strong



sensitive posture




fall





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $248 $284 $200 $152

2 $428 $517 $222 $16

3 $411 $512 $218 $24

Total $1087 $1313 $640 $192



Investments

Loans

Deposits

Wholesale

Other

ALCO Action Items


Closing Thoughts


Different Lenses









Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response









Slide Number 24






Slide Number 30





Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends









Lending Strategies


Loan Pricing




Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts



Benchmark Wholesale

Costs




90-Day 246

1 256

2 259

3 261

4 265

5 269

7 296

10 319




Analyzing Attrition
















Core Customers





Savings Rate = 015





4 Accounts

Savings Rate = 005



Next Move on MMDAs
















Legacy MMDA Trends



















11 Month CD Special















Lending Strategies








Loan Pricing




WSJP = 550

529

WSJP + 050 = 600



As of March 2019








Asset Sensitive

Liability Sensitive

Awareness Varies

Appetites Vary





Interest Rate Risk



Asset Yields

Funding Costs






Asset Sensitive

A Little of Both

Liability Sensitive











Liability Sensitive



025

225

425

625

825

025



BASE SIMULATION

025

225

425

625

825

025












approach)















Case Study 1







20001000

3000

800 405 421 408

66 65400 305 321 308 288 287

66 72 58

337

510000 00 00 00

41 38

41 38 38 48 51

11302018 8312018 5312018 2282018 11302017

38 48

388

Policy Guidelines


Executive Summary




Security Collateral










TOTAL LIQUID ASSETS

47554 43689

-1493 0

0 0

0

0

0

00 0

000

0

000

1059061

Pct Of Assets

120


0

91243

478

1397

0

126603

49524 45988

-478 0

I LIQUID ASSETS

33486

UST amp Agency



950






BASIC SURPLUS








105906

of Total Deposits63

253210

296714

56323

529530296714

429395

0

105906


Well Capitalized

lt Well Capitalized

Policy Limits (Min)

43504


10 53179

25 129430


0

1850

323489

405 80

66 20

305

70280

40 80












Strategy Discussion

Deposit Trends




467 496 455 446 428


Strategy Discussion

Loan Pricing




Executive Summary



Down 200BP

Up 200BP


Down 200BP

Up 200BP





-1000

700

-1562

548

494

10121255

249

-61

12571148

-22

-73

-24

-25-21-29 -24 -22 -21

-27 -29

-89-21 -21 04 -06 -35

-6125 14 25 21 -02

12531266

-123-16611301176

-90

477

-2284 -768-638-2000

1068

-453-243 -109

468

488

1234

516397 345

429359

485

431 407285

-62

-100-200 -100 -100 +400

11302018 8312018 5312018 2282018 11302017

Policy Guidelines


IRR Overview



IRR Overview


00

20

40

60

80

100

120

140

EVE Ratio (EVEEVA)

-250

-200

-150

-100

-50

00


0

20000

40000

60000

80000

100000

120000

140000


00

20

40

60

80

100

120

EVE Ratio (EVEEVA)

-700

-600

-500

-400

-300

-200

-100

00

100

200


0

20000

40000

60000

80000

100000

120000





Executive Summary





1682 1631 1595 1570 1572

793 775 802

$1624$10536306 301

$10493 $10415298

$8437$1510$1782 $1597

$10591296

$1585

$8861 $8849

1000500

17531083

1700

1638 16401033

16631052 10351057

$10531297

$8879$398$395

951 953

$8485$8203 $8352 $8223$8589

$500792 786

$8733$535$435

057 058

057946 922

955056058

11302018 8312018 5312018 2282018 11302017

Policy Guidelines





derivatives









Still Strong





income




Potential Strategy





1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563







Still Strong





income



Potential Strategy





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563


Case Study 2



Executive Summary






25001500

1500 422 430 336

55 691000 272 280 243 228 241

82 95 61

340

465100 00 57 73

14 19

14 19 89 111 96

10312018

7312018 4302018 1312018 10312017

32 38

305

Policy Guidelines









Net Cash Flow $5MM













Down 200BP

Up 200BP


Down 200BP

Up 200BP





1000

1500

800

-1083

456

390

11831381

285

-71

05

-32

-02

-06-09-20 -13 -08 -09

-15 03

-3318 36 31 14 35

-31

1270

-130 1140

414

-861 -2000

-198

374

424

443325 304

348301

380

352 307261

-31

-100-200


Executive Summary

10312018

7312018 4302018 1312018 10312017

Policy Guidelines







Equity

Other Liabilities

DDA

NOW

Savings

Utilization

Excess

8997

74303

132849 130877

Excess

244348

285

7025

7233165306

58546

65306

58546

464

244348

456

111499

49611

6386

64499

149136

244348

244348

390

Up 400BP 24M

113471

49611

64499

69529

49611

6386 6386

64499

Excess

64499

65306 65306

25284

90590

6386

Down 200BP Up 200BP

Excess


95212

49611

Base

50967

116273

17481958546 58546




Executive Summary

CAPITAL RATIOS







800 1551 1558 1536 1519 1532

8000 724 717 753

$845$4606323 342

$4572 $4546329

$3527$814$1010 $775

$4840312

$978

$4171 $3922

1200800

16321051

1639

1600 16161048

16181077 10581091

$4820306

$4214$148$92

898 886

$3493$3480 $3492 $3398$3807

$172758 742

$3863$207$67

070 071

070831 828

884070071

10312018

7312018 4302018 1312018 10312017

Policy Guidelines








Liquidity


IRR





Potential Strategy



Loan Floor


1 $524 $559 $552

2 $511 $589 $552

Total $1035 $1148 $1104


1 $186 $-87 $-87

2 $415 $-87 $-87

3 $415 $-88 $-88

Total $1016 $-262 $-262





Funded with cash

Liquidity




sensitive posture

Earnings





MBS Premium risk

Potential Strategy



Cash Extension


1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $325 $359 $174 $25

2 $503 $586 $157 $-129

3 $369 $486 $158 $-109

Total $1197 $1431 $489 $-213




90 days





Still Strong



sensitive posture




fall





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $248 $284 $200 $152

2 $428 $517 $222 $16

3 $411 $512 $218 $24

Total $1087 $1313 $640 $192



Investments

Loans

Deposits

Wholesale

Other

ALCO Action Items


Closing Thoughts


Different Lenses









Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response









Slide Number 24






Slide Number 30





Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends









Lending Strategies


Loan Pricing




Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts




Analyzing Attrition
















Core Customers





Savings Rate = 015





4 Accounts

Savings Rate = 005



Next Move on MMDAs
















Legacy MMDA Trends



















11 Month CD Special















Lending Strategies








Loan Pricing




WSJP = 550

529

WSJP + 050 = 600



As of March 2019








Asset Sensitive

Liability Sensitive

Awareness Varies

Appetites Vary





Interest Rate Risk



Asset Yields

Funding Costs






Asset Sensitive

A Little of Both

Liability Sensitive











Liability Sensitive



025

225

425

625

825

025



BASE SIMULATION

025

225

425

625

825

025












approach)















Case Study 1







20001000

3000

800 405 421 408

66 65400 305 321 308 288 287

66 72 58

337

510000 00 00 00

41 38

41 38 38 48 51

11302018 8312018 5312018 2282018 11302017

38 48

388

Policy Guidelines


Executive Summary




Security Collateral










TOTAL LIQUID ASSETS

47554 43689

-1493 0

0 0

0

0

0

00 0

000

0

000

1059061

Pct Of Assets

120


0

91243

478

1397

0

126603

49524 45988

-478 0

I LIQUID ASSETS

33486

UST amp Agency



950






BASIC SURPLUS








105906

of Total Deposits63

253210

296714

56323

529530296714

429395

0

105906


Well Capitalized

lt Well Capitalized

Policy Limits (Min)

43504


10 53179

25 129430


0

1850

323489

405 80

66 20

305

70280

40 80












Strategy Discussion

Deposit Trends




467 496 455 446 428


Strategy Discussion

Loan Pricing




Executive Summary



Down 200BP

Up 200BP


Down 200BP

Up 200BP





-1000

700

-1562

548

494

10121255

249

-61

12571148

-22

-73

-24

-25-21-29 -24 -22 -21

-27 -29

-89-21 -21 04 -06 -35

-6125 14 25 21 -02

12531266

-123-16611301176

-90

477

-2284 -768-638-2000

1068

-453-243 -109

468

488

1234

516397 345

429359

485

431 407285

-62

-100-200 -100 -100 +400

11302018 8312018 5312018 2282018 11302017

Policy Guidelines


IRR Overview



IRR Overview


00

20

40

60

80

100

120

140

EVE Ratio (EVEEVA)

-250

-200

-150

-100

-50

00


0

20000

40000

60000

80000

100000

120000

140000


00

20

40

60

80

100

120

EVE Ratio (EVEEVA)

-700

-600

-500

-400

-300

-200

-100

00

100

200


0

20000

40000

60000

80000

100000

120000





Executive Summary





1682 1631 1595 1570 1572

793 775 802

$1624$10536306 301

$10493 $10415298

$8437$1510$1782 $1597

$10591296

$1585

$8861 $8849

1000500

17531083

1700

1638 16401033

16631052 10351057

$10531297

$8879$398$395

951 953

$8485$8203 $8352 $8223$8589

$500792 786

$8733$535$435

057 058

057946 922

955056058

11302018 8312018 5312018 2282018 11302017

Policy Guidelines





derivatives









Still Strong





income




Potential Strategy





1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563







Still Strong





income



Potential Strategy





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563


Case Study 2



Executive Summary






25001500

1500 422 430 336

55 691000 272 280 243 228 241

82 95 61

340

465100 00 57 73

14 19

14 19 89 111 96

10312018

7312018 4302018 1312018 10312017

32 38

305

Policy Guidelines









Net Cash Flow $5MM













Down 200BP

Up 200BP


Down 200BP

Up 200BP





1000

1500

800

-1083

456

390

11831381

285

-71

05

-32

-02

-06-09-20 -13 -08 -09

-15 03

-3318 36 31 14 35

-31

1270

-130 1140

414

-861 -2000

-198

374

424

443325 304

348301

380

352 307261

-31

-100-200


Executive Summary

10312018

7312018 4302018 1312018 10312017

Policy Guidelines







Equity

Other Liabilities

DDA

NOW

Savings

Utilization

Excess

8997

74303

132849 130877

Excess

244348

285

7025

7233165306

58546

65306

58546

464

244348

456

111499

49611

6386

64499

149136

244348

244348

390

Up 400BP 24M

113471

49611

64499

69529

49611

6386 6386

64499

Excess

64499

65306 65306

25284

90590

6386

Down 200BP Up 200BP

Excess


95212

49611

Base

50967

116273

17481958546 58546




Executive Summary

CAPITAL RATIOS







800 1551 1558 1536 1519 1532

8000 724 717 753

$845$4606323 342

$4572 $4546329

$3527$814$1010 $775

$4840312

$978

$4171 $3922

1200800

16321051

1639

1600 16161048

16181077 10581091

$4820306

$4214$148$92

898 886

$3493$3480 $3492 $3398$3807

$172758 742

$3863$207$67

070 071

070831 828

884070071

10312018

7312018 4302018 1312018 10312017

Policy Guidelines








Liquidity


IRR





Potential Strategy



Loan Floor


1 $524 $559 $552

2 $511 $589 $552

Total $1035 $1148 $1104


1 $186 $-87 $-87

2 $415 $-87 $-87

3 $415 $-88 $-88

Total $1016 $-262 $-262





Funded with cash

Liquidity




sensitive posture

Earnings





MBS Premium risk

Potential Strategy



Cash Extension


1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $325 $359 $174 $25

2 $503 $586 $157 $-129

3 $369 $486 $158 $-109

Total $1197 $1431 $489 $-213




90 days





Still Strong



sensitive posture




fall





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $248 $284 $200 $152

2 $428 $517 $222 $16

3 $411 $512 $218 $24

Total $1087 $1313 $640 $192



Investments

Loans

Deposits

Wholesale

Other

ALCO Action Items


Closing Thoughts


Different Lenses









Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response









Slide Number 24






Slide Number 30





Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends









Lending Strategies


Loan Pricing




Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts














Core Customers





Savings Rate = 015





4 Accounts

Savings Rate = 005



Next Move on MMDAs
















Legacy MMDA Trends



















11 Month CD Special















Lending Strategies








Loan Pricing




WSJP = 550

529

WSJP + 050 = 600



As of March 2019








Asset Sensitive

Liability Sensitive

Awareness Varies

Appetites Vary





Interest Rate Risk



Asset Yields

Funding Costs






Asset Sensitive

A Little of Both

Liability Sensitive











Liability Sensitive



025

225

425

625

825

025



BASE SIMULATION

025

225

425

625

825

025












approach)















Case Study 1







20001000

3000

800 405 421 408

66 65400 305 321 308 288 287

66 72 58

337

510000 00 00 00

41 38

41 38 38 48 51

11302018 8312018 5312018 2282018 11302017

38 48

388

Policy Guidelines


Executive Summary




Security Collateral










TOTAL LIQUID ASSETS

47554 43689

-1493 0

0 0

0

0

0

00 0

000

0

000

1059061

Pct Of Assets

120


0

91243

478

1397

0

126603

49524 45988

-478 0

I LIQUID ASSETS

33486

UST amp Agency



950






BASIC SURPLUS








105906

of Total Deposits63

253210

296714

56323

529530296714

429395

0

105906


Well Capitalized

lt Well Capitalized

Policy Limits (Min)

43504


10 53179

25 129430


0

1850

323489

405 80

66 20

305

70280

40 80












Strategy Discussion

Deposit Trends




467 496 455 446 428


Strategy Discussion

Loan Pricing




Executive Summary



Down 200BP

Up 200BP


Down 200BP

Up 200BP





-1000

700

-1562

548

494

10121255

249

-61

12571148

-22

-73

-24

-25-21-29 -24 -22 -21

-27 -29

-89-21 -21 04 -06 -35

-6125 14 25 21 -02

12531266

-123-16611301176

-90

477

-2284 -768-638-2000

1068

-453-243 -109

468

488

1234

516397 345

429359

485

431 407285

-62

-100-200 -100 -100 +400

11302018 8312018 5312018 2282018 11302017

Policy Guidelines


IRR Overview



IRR Overview


00

20

40

60

80

100

120

140

EVE Ratio (EVEEVA)

-250

-200

-150

-100

-50

00


0

20000

40000

60000

80000

100000

120000

140000


00

20

40

60

80

100

120

EVE Ratio (EVEEVA)

-700

-600

-500

-400

-300

-200

-100

00

100

200


0

20000

40000

60000

80000

100000

120000





Executive Summary





1682 1631 1595 1570 1572

793 775 802

$1624$10536306 301

$10493 $10415298

$8437$1510$1782 $1597

$10591296

$1585

$8861 $8849

1000500

17531083

1700

1638 16401033

16631052 10351057

$10531297

$8879$398$395

951 953

$8485$8203 $8352 $8223$8589

$500792 786

$8733$535$435

057 058

057946 922

955056058

11302018 8312018 5312018 2282018 11302017

Policy Guidelines





derivatives









Still Strong





income




Potential Strategy





1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563







Still Strong





income



Potential Strategy





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563


Case Study 2



Executive Summary






25001500

1500 422 430 336

55 691000 272 280 243 228 241

82 95 61

340

465100 00 57 73

14 19

14 19 89 111 96

10312018

7312018 4302018 1312018 10312017

32 38

305

Policy Guidelines









Net Cash Flow $5MM













Down 200BP

Up 200BP


Down 200BP

Up 200BP





1000

1500

800

-1083

456

390

11831381

285

-71

05

-32

-02

-06-09-20 -13 -08 -09

-15 03

-3318 36 31 14 35

-31

1270

-130 1140

414

-861 -2000

-198

374

424

443325 304

348301

380

352 307261

-31

-100-200


Executive Summary

10312018

7312018 4302018 1312018 10312017

Policy Guidelines







Equity

Other Liabilities

DDA

NOW

Savings

Utilization

Excess

8997

74303

132849 130877

Excess

244348

285

7025

7233165306

58546

65306

58546

464

244348

456

111499

49611

6386

64499

149136

244348

244348

390

Up 400BP 24M

113471

49611

64499

69529

49611

6386 6386

64499

Excess

64499

65306 65306

25284

90590

6386

Down 200BP Up 200BP

Excess


95212

49611

Base

50967

116273

17481958546 58546




Executive Summary

CAPITAL RATIOS







800 1551 1558 1536 1519 1532

8000 724 717 753

$845$4606323 342

$4572 $4546329

$3527$814$1010 $775

$4840312

$978

$4171 $3922

1200800

16321051

1639

1600 16161048

16181077 10581091

$4820306

$4214$148$92

898 886

$3493$3480 $3492 $3398$3807

$172758 742

$3863$207$67

070 071

070831 828

884070071

10312018

7312018 4302018 1312018 10312017

Policy Guidelines








Liquidity


IRR





Potential Strategy



Loan Floor


1 $524 $559 $552

2 $511 $589 $552

Total $1035 $1148 $1104


1 $186 $-87 $-87

2 $415 $-87 $-87

3 $415 $-88 $-88

Total $1016 $-262 $-262





Funded with cash

Liquidity




sensitive posture

Earnings





MBS Premium risk

Potential Strategy



Cash Extension


1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $325 $359 $174 $25

2 $503 $586 $157 $-129

3 $369 $486 $158 $-109

Total $1197 $1431 $489 $-213




90 days





Still Strong



sensitive posture




fall





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $248 $284 $200 $152

2 $428 $517 $222 $16

3 $411 $512 $218 $24

Total $1087 $1313 $640 $192



Investments

Loans

Deposits

Wholesale

Other

ALCO Action Items


Closing Thoughts


Different Lenses









Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response









Slide Number 24






Slide Number 30





Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends









Lending Strategies


Loan Pricing




Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts




Savings Rate = 015





4 Accounts

Savings Rate = 005



Next Move on MMDAs
















Legacy MMDA Trends



















11 Month CD Special















Lending Strategies








Loan Pricing




WSJP = 550

529

WSJP + 050 = 600



As of March 2019








Asset Sensitive

Liability Sensitive

Awareness Varies

Appetites Vary





Interest Rate Risk



Asset Yields

Funding Costs






Asset Sensitive

A Little of Both

Liability Sensitive











Liability Sensitive



025

225

425

625

825

025



BASE SIMULATION

025

225

425

625

825

025












approach)















Case Study 1







20001000

3000

800 405 421 408

66 65400 305 321 308 288 287

66 72 58

337

510000 00 00 00

41 38

41 38 38 48 51

11302018 8312018 5312018 2282018 11302017

38 48

388

Policy Guidelines


Executive Summary




Security Collateral










TOTAL LIQUID ASSETS

47554 43689

-1493 0

0 0

0

0

0

00 0

000

0

000

1059061

Pct Of Assets

120


0

91243

478

1397

0

126603

49524 45988

-478 0

I LIQUID ASSETS

33486

UST amp Agency



950






BASIC SURPLUS








105906

of Total Deposits63

253210

296714

56323

529530296714

429395

0

105906


Well Capitalized

lt Well Capitalized

Policy Limits (Min)

43504


10 53179

25 129430


0

1850

323489

405 80

66 20

305

70280

40 80












Strategy Discussion

Deposit Trends




467 496 455 446 428


Strategy Discussion

Loan Pricing




Executive Summary



Down 200BP

Up 200BP


Down 200BP

Up 200BP





-1000

700

-1562

548

494

10121255

249

-61

12571148

-22

-73

-24

-25-21-29 -24 -22 -21

-27 -29

-89-21 -21 04 -06 -35

-6125 14 25 21 -02

12531266

-123-16611301176

-90

477

-2284 -768-638-2000

1068

-453-243 -109

468

488

1234

516397 345

429359

485

431 407285

-62

-100-200 -100 -100 +400

11302018 8312018 5312018 2282018 11302017

Policy Guidelines


IRR Overview



IRR Overview


00

20

40

60

80

100

120

140

EVE Ratio (EVEEVA)

-250

-200

-150

-100

-50

00


0

20000

40000

60000

80000

100000

120000

140000


00

20

40

60

80

100

120

EVE Ratio (EVEEVA)

-700

-600

-500

-400

-300

-200

-100

00

100

200


0

20000

40000

60000

80000

100000

120000





Executive Summary





1682 1631 1595 1570 1572

793 775 802

$1624$10536306 301

$10493 $10415298

$8437$1510$1782 $1597

$10591296

$1585

$8861 $8849

1000500

17531083

1700

1638 16401033

16631052 10351057

$10531297

$8879$398$395

951 953

$8485$8203 $8352 $8223$8589

$500792 786

$8733$535$435

057 058

057946 922

955056058

11302018 8312018 5312018 2282018 11302017

Policy Guidelines





derivatives









Still Strong





income




Potential Strategy





1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563







Still Strong





income



Potential Strategy





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563


Case Study 2



Executive Summary






25001500

1500 422 430 336

55 691000 272 280 243 228 241

82 95 61

340

465100 00 57 73

14 19

14 19 89 111 96

10312018

7312018 4302018 1312018 10312017

32 38

305

Policy Guidelines









Net Cash Flow $5MM













Down 200BP

Up 200BP


Down 200BP

Up 200BP





1000

1500

800

-1083

456

390

11831381

285

-71

05

-32

-02

-06-09-20 -13 -08 -09

-15 03

-3318 36 31 14 35

-31

1270

-130 1140

414

-861 -2000

-198

374

424

443325 304

348301

380

352 307261

-31

-100-200


Executive Summary

10312018

7312018 4302018 1312018 10312017

Policy Guidelines







Equity

Other Liabilities

DDA

NOW

Savings

Utilization

Excess

8997

74303

132849 130877

Excess

244348

285

7025

7233165306

58546

65306

58546

464

244348

456

111499

49611

6386

64499

149136

244348

244348

390

Up 400BP 24M

113471

49611

64499

69529

49611

6386 6386

64499

Excess

64499

65306 65306

25284

90590

6386

Down 200BP Up 200BP

Excess


95212

49611

Base

50967

116273

17481958546 58546




Executive Summary

CAPITAL RATIOS







800 1551 1558 1536 1519 1532

8000 724 717 753

$845$4606323 342

$4572 $4546329

$3527$814$1010 $775

$4840312

$978

$4171 $3922

1200800

16321051

1639

1600 16161048

16181077 10581091

$4820306

$4214$148$92

898 886

$3493$3480 $3492 $3398$3807

$172758 742

$3863$207$67

070 071

070831 828

884070071

10312018

7312018 4302018 1312018 10312017

Policy Guidelines








Liquidity


IRR





Potential Strategy



Loan Floor


1 $524 $559 $552

2 $511 $589 $552

Total $1035 $1148 $1104


1 $186 $-87 $-87

2 $415 $-87 $-87

3 $415 $-88 $-88

Total $1016 $-262 $-262





Funded with cash

Liquidity




sensitive posture

Earnings





MBS Premium risk

Potential Strategy



Cash Extension


1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $325 $359 $174 $25

2 $503 $586 $157 $-129

3 $369 $486 $158 $-109

Total $1197 $1431 $489 $-213




90 days





Still Strong



sensitive posture




fall





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $248 $284 $200 $152

2 $428 $517 $222 $16

3 $411 $512 $218 $24

Total $1087 $1313 $640 $192



Investments

Loans

Deposits

Wholesale

Other

ALCO Action Items


Closing Thoughts


Different Lenses









Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response









Slide Number 24






Slide Number 30





Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends









Lending Strategies


Loan Pricing




Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts




4 Accounts

Savings Rate = 005



Next Move on MMDAs
















Legacy MMDA Trends



















11 Month CD Special















Lending Strategies








Loan Pricing




WSJP = 550

529

WSJP + 050 = 600



As of March 2019








Asset Sensitive

Liability Sensitive

Awareness Varies

Appetites Vary





Interest Rate Risk



Asset Yields

Funding Costs






Asset Sensitive

A Little of Both

Liability Sensitive











Liability Sensitive



025

225

425

625

825

025



BASE SIMULATION

025

225

425

625

825

025












approach)















Case Study 1







20001000

3000

800 405 421 408

66 65400 305 321 308 288 287

66 72 58

337

510000 00 00 00

41 38

41 38 38 48 51

11302018 8312018 5312018 2282018 11302017

38 48

388

Policy Guidelines


Executive Summary




Security Collateral










TOTAL LIQUID ASSETS

47554 43689

-1493 0

0 0

0

0

0

00 0

000

0

000

1059061

Pct Of Assets

120


0

91243

478

1397

0

126603

49524 45988

-478 0

I LIQUID ASSETS

33486

UST amp Agency



950






BASIC SURPLUS








105906

of Total Deposits63

253210

296714

56323

529530296714

429395

0

105906


Well Capitalized

lt Well Capitalized

Policy Limits (Min)

43504


10 53179

25 129430


0

1850

323489

405 80

66 20

305

70280

40 80












Strategy Discussion

Deposit Trends




467 496 455 446 428


Strategy Discussion

Loan Pricing




Executive Summary



Down 200BP

Up 200BP


Down 200BP

Up 200BP





-1000

700

-1562

548

494

10121255

249

-61

12571148

-22

-73

-24

-25-21-29 -24 -22 -21

-27 -29

-89-21 -21 04 -06 -35

-6125 14 25 21 -02

12531266

-123-16611301176

-90

477

-2284 -768-638-2000

1068

-453-243 -109

468

488

1234

516397 345

429359

485

431 407285

-62

-100-200 -100 -100 +400

11302018 8312018 5312018 2282018 11302017

Policy Guidelines


IRR Overview



IRR Overview


00

20

40

60

80

100

120

140

EVE Ratio (EVEEVA)

-250

-200

-150

-100

-50

00


0

20000

40000

60000

80000

100000

120000

140000


00

20

40

60

80

100

120

EVE Ratio (EVEEVA)

-700

-600

-500

-400

-300

-200

-100

00

100

200


0

20000

40000

60000

80000

100000

120000





Executive Summary





1682 1631 1595 1570 1572

793 775 802

$1624$10536306 301

$10493 $10415298

$8437$1510$1782 $1597

$10591296

$1585

$8861 $8849

1000500

17531083

1700

1638 16401033

16631052 10351057

$10531297

$8879$398$395

951 953

$8485$8203 $8352 $8223$8589

$500792 786

$8733$535$435

057 058

057946 922

955056058

11302018 8312018 5312018 2282018 11302017

Policy Guidelines





derivatives









Still Strong





income




Potential Strategy





1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563







Still Strong





income



Potential Strategy





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563


Case Study 2



Executive Summary






25001500

1500 422 430 336

55 691000 272 280 243 228 241

82 95 61

340

465100 00 57 73

14 19

14 19 89 111 96

10312018

7312018 4302018 1312018 10312017

32 38

305

Policy Guidelines









Net Cash Flow $5MM













Down 200BP

Up 200BP


Down 200BP

Up 200BP





1000

1500

800

-1083

456

390

11831381

285

-71

05

-32

-02

-06-09-20 -13 -08 -09

-15 03

-3318 36 31 14 35

-31

1270

-130 1140

414

-861 -2000

-198

374

424

443325 304

348301

380

352 307261

-31

-100-200


Executive Summary

10312018

7312018 4302018 1312018 10312017

Policy Guidelines







Equity

Other Liabilities

DDA

NOW

Savings

Utilization

Excess

8997

74303

132849 130877

Excess

244348

285

7025

7233165306

58546

65306

58546

464

244348

456

111499

49611

6386

64499

149136

244348

244348

390

Up 400BP 24M

113471

49611

64499

69529

49611

6386 6386

64499

Excess

64499

65306 65306

25284

90590

6386

Down 200BP Up 200BP

Excess


95212

49611

Base

50967

116273

17481958546 58546




Executive Summary

CAPITAL RATIOS







800 1551 1558 1536 1519 1532

8000 724 717 753

$845$4606323 342

$4572 $4546329

$3527$814$1010 $775

$4840312

$978

$4171 $3922

1200800

16321051

1639

1600 16161048

16181077 10581091

$4820306

$4214$148$92

898 886

$3493$3480 $3492 $3398$3807

$172758 742

$3863$207$67

070 071

070831 828

884070071

10312018

7312018 4302018 1312018 10312017

Policy Guidelines








Liquidity


IRR





Potential Strategy



Loan Floor


1 $524 $559 $552

2 $511 $589 $552

Total $1035 $1148 $1104


1 $186 $-87 $-87

2 $415 $-87 $-87

3 $415 $-88 $-88

Total $1016 $-262 $-262





Funded with cash

Liquidity




sensitive posture

Earnings





MBS Premium risk

Potential Strategy



Cash Extension


1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $325 $359 $174 $25

2 $503 $586 $157 $-129

3 $369 $486 $158 $-109

Total $1197 $1431 $489 $-213




90 days





Still Strong



sensitive posture




fall





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $248 $284 $200 $152

2 $428 $517 $222 $16

3 $411 $512 $218 $24

Total $1087 $1313 $640 $192



Investments

Loans

Deposits

Wholesale

Other

ALCO Action Items


Closing Thoughts


Different Lenses









Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response









Slide Number 24






Slide Number 30





Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends









Lending Strategies


Loan Pricing




Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts


Next Move on MMDAs
















Legacy MMDA Trends



















11 Month CD Special















Lending Strategies








Loan Pricing




WSJP = 550

529

WSJP + 050 = 600



As of March 2019








Asset Sensitive

Liability Sensitive

Awareness Varies

Appetites Vary





Interest Rate Risk



Asset Yields

Funding Costs






Asset Sensitive

A Little of Both

Liability Sensitive











Liability Sensitive



025

225

425

625

825

025



BASE SIMULATION

025

225

425

625

825

025












approach)















Case Study 1







20001000

3000

800 405 421 408

66 65400 305 321 308 288 287

66 72 58

337

510000 00 00 00

41 38

41 38 38 48 51

11302018 8312018 5312018 2282018 11302017

38 48

388

Policy Guidelines


Executive Summary




Security Collateral










TOTAL LIQUID ASSETS

47554 43689

-1493 0

0 0

0

0

0

00 0

000

0

000

1059061

Pct Of Assets

120


0

91243

478

1397

0

126603

49524 45988

-478 0

I LIQUID ASSETS

33486

UST amp Agency



950






BASIC SURPLUS








105906

of Total Deposits63

253210

296714

56323

529530296714

429395

0

105906


Well Capitalized

lt Well Capitalized

Policy Limits (Min)

43504


10 53179

25 129430


0

1850

323489

405 80

66 20

305

70280

40 80












Strategy Discussion

Deposit Trends




467 496 455 446 428


Strategy Discussion

Loan Pricing




Executive Summary



Down 200BP

Up 200BP


Down 200BP

Up 200BP





-1000

700

-1562

548

494

10121255

249

-61

12571148

-22

-73

-24

-25-21-29 -24 -22 -21

-27 -29

-89-21 -21 04 -06 -35

-6125 14 25 21 -02

12531266

-123-16611301176

-90

477

-2284 -768-638-2000

1068

-453-243 -109

468

488

1234

516397 345

429359

485

431 407285

-62

-100-200 -100 -100 +400

11302018 8312018 5312018 2282018 11302017

Policy Guidelines


IRR Overview



IRR Overview


00

20

40

60

80

100

120

140

EVE Ratio (EVEEVA)

-250

-200

-150

-100

-50

00


0

20000

40000

60000

80000

100000

120000

140000


00

20

40

60

80

100

120

EVE Ratio (EVEEVA)

-700

-600

-500

-400

-300

-200

-100

00

100

200


0

20000

40000

60000

80000

100000

120000





Executive Summary





1682 1631 1595 1570 1572

793 775 802

$1624$10536306 301

$10493 $10415298

$8437$1510$1782 $1597

$10591296

$1585

$8861 $8849

1000500

17531083

1700

1638 16401033

16631052 10351057

$10531297

$8879$398$395

951 953

$8485$8203 $8352 $8223$8589

$500792 786

$8733$535$435

057 058

057946 922

955056058

11302018 8312018 5312018 2282018 11302017

Policy Guidelines





derivatives









Still Strong





income




Potential Strategy





1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563







Still Strong





income



Potential Strategy





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563


Case Study 2



Executive Summary






25001500

1500 422 430 336

55 691000 272 280 243 228 241

82 95 61

340

465100 00 57 73

14 19

14 19 89 111 96

10312018

7312018 4302018 1312018 10312017

32 38

305

Policy Guidelines









Net Cash Flow $5MM













Down 200BP

Up 200BP


Down 200BP

Up 200BP





1000

1500

800

-1083

456

390

11831381

285

-71

05

-32

-02

-06-09-20 -13 -08 -09

-15 03

-3318 36 31 14 35

-31

1270

-130 1140

414

-861 -2000

-198

374

424

443325 304

348301

380

352 307261

-31

-100-200


Executive Summary

10312018

7312018 4302018 1312018 10312017

Policy Guidelines







Equity

Other Liabilities

DDA

NOW

Savings

Utilization

Excess

8997

74303

132849 130877

Excess

244348

285

7025

7233165306

58546

65306

58546

464

244348

456

111499

49611

6386

64499

149136

244348

244348

390

Up 400BP 24M

113471

49611

64499

69529

49611

6386 6386

64499

Excess

64499

65306 65306

25284

90590

6386

Down 200BP Up 200BP

Excess


95212

49611

Base

50967

116273

17481958546 58546




Executive Summary

CAPITAL RATIOS







800 1551 1558 1536 1519 1532

8000 724 717 753

$845$4606323 342

$4572 $4546329

$3527$814$1010 $775

$4840312

$978

$4171 $3922

1200800

16321051

1639

1600 16161048

16181077 10581091

$4820306

$4214$148$92

898 886

$3493$3480 $3492 $3398$3807

$172758 742

$3863$207$67

070 071

070831 828

884070071

10312018

7312018 4302018 1312018 10312017

Policy Guidelines








Liquidity


IRR





Potential Strategy



Loan Floor


1 $524 $559 $552

2 $511 $589 $552

Total $1035 $1148 $1104


1 $186 $-87 $-87

2 $415 $-87 $-87

3 $415 $-88 $-88

Total $1016 $-262 $-262





Funded with cash

Liquidity




sensitive posture

Earnings





MBS Premium risk

Potential Strategy



Cash Extension


1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $325 $359 $174 $25

2 $503 $586 $157 $-129

3 $369 $486 $158 $-109

Total $1197 $1431 $489 $-213




90 days





Still Strong



sensitive posture




fall





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $248 $284 $200 $152

2 $428 $517 $222 $16

3 $411 $512 $218 $24

Total $1087 $1313 $640 $192



Investments

Loans

Deposits

Wholesale

Other

ALCO Action Items


Closing Thoughts


Different Lenses









Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response









Slide Number 24






Slide Number 30





Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends









Lending Strategies


Loan Pricing




Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts
















Legacy MMDA Trends



















11 Month CD Special















Lending Strategies








Loan Pricing




WSJP = 550

529

WSJP + 050 = 600



As of March 2019








Asset Sensitive

Liability Sensitive

Awareness Varies

Appetites Vary





Interest Rate Risk



Asset Yields

Funding Costs






Asset Sensitive

A Little of Both

Liability Sensitive











Liability Sensitive



025

225

425

625

825

025



BASE SIMULATION

025

225

425

625

825

025












approach)















Case Study 1







20001000

3000

800 405 421 408

66 65400 305 321 308 288 287

66 72 58

337

510000 00 00 00

41 38

41 38 38 48 51

11302018 8312018 5312018 2282018 11302017

38 48

388

Policy Guidelines


Executive Summary




Security Collateral










TOTAL LIQUID ASSETS

47554 43689

-1493 0

0 0

0

0

0

00 0

000

0

000

1059061

Pct Of Assets

120


0

91243

478

1397

0

126603

49524 45988

-478 0

I LIQUID ASSETS

33486

UST amp Agency



950






BASIC SURPLUS








105906

of Total Deposits63

253210

296714

56323

529530296714

429395

0

105906


Well Capitalized

lt Well Capitalized

Policy Limits (Min)

43504


10 53179

25 129430


0

1850

323489

405 80

66 20

305

70280

40 80












Strategy Discussion

Deposit Trends




467 496 455 446 428


Strategy Discussion

Loan Pricing




Executive Summary



Down 200BP

Up 200BP


Down 200BP

Up 200BP





-1000

700

-1562

548

494

10121255

249

-61

12571148

-22

-73

-24

-25-21-29 -24 -22 -21

-27 -29

-89-21 -21 04 -06 -35

-6125 14 25 21 -02

12531266

-123-16611301176

-90

477

-2284 -768-638-2000

1068

-453-243 -109

468

488

1234

516397 345

429359

485

431 407285

-62

-100-200 -100 -100 +400

11302018 8312018 5312018 2282018 11302017

Policy Guidelines


IRR Overview



IRR Overview


00

20

40

60

80

100

120

140

EVE Ratio (EVEEVA)

-250

-200

-150

-100

-50

00


0

20000

40000

60000

80000

100000

120000

140000


00

20

40

60

80

100

120

EVE Ratio (EVEEVA)

-700

-600

-500

-400

-300

-200

-100

00

100

200


0

20000

40000

60000

80000

100000

120000





Executive Summary





1682 1631 1595 1570 1572

793 775 802

$1624$10536306 301

$10493 $10415298

$8437$1510$1782 $1597

$10591296

$1585

$8861 $8849

1000500

17531083

1700

1638 16401033

16631052 10351057

$10531297

$8879$398$395

951 953

$8485$8203 $8352 $8223$8589

$500792 786

$8733$535$435

057 058

057946 922

955056058

11302018 8312018 5312018 2282018 11302017

Policy Guidelines





derivatives









Still Strong





income




Potential Strategy





1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563







Still Strong





income



Potential Strategy





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563


Case Study 2



Executive Summary






25001500

1500 422 430 336

55 691000 272 280 243 228 241

82 95 61

340

465100 00 57 73

14 19

14 19 89 111 96

10312018

7312018 4302018 1312018 10312017

32 38

305

Policy Guidelines









Net Cash Flow $5MM













Down 200BP

Up 200BP


Down 200BP

Up 200BP





1000

1500

800

-1083

456

390

11831381

285

-71

05

-32

-02

-06-09-20 -13 -08 -09

-15 03

-3318 36 31 14 35

-31

1270

-130 1140

414

-861 -2000

-198

374

424

443325 304

348301

380

352 307261

-31

-100-200


Executive Summary

10312018

7312018 4302018 1312018 10312017

Policy Guidelines







Equity

Other Liabilities

DDA

NOW

Savings

Utilization

Excess

8997

74303

132849 130877

Excess

244348

285

7025

7233165306

58546

65306

58546

464

244348

456

111499

49611

6386

64499

149136

244348

244348

390

Up 400BP 24M

113471

49611

64499

69529

49611

6386 6386

64499

Excess

64499

65306 65306

25284

90590

6386

Down 200BP Up 200BP

Excess


95212

49611

Base

50967

116273

17481958546 58546




Executive Summary

CAPITAL RATIOS







800 1551 1558 1536 1519 1532

8000 724 717 753

$845$4606323 342

$4572 $4546329

$3527$814$1010 $775

$4840312

$978

$4171 $3922

1200800

16321051

1639

1600 16161048

16181077 10581091

$4820306

$4214$148$92

898 886

$3493$3480 $3492 $3398$3807

$172758 742

$3863$207$67

070 071

070831 828

884070071

10312018

7312018 4302018 1312018 10312017

Policy Guidelines








Liquidity


IRR





Potential Strategy



Loan Floor


1 $524 $559 $552

2 $511 $589 $552

Total $1035 $1148 $1104


1 $186 $-87 $-87

2 $415 $-87 $-87

3 $415 $-88 $-88

Total $1016 $-262 $-262





Funded with cash

Liquidity




sensitive posture

Earnings





MBS Premium risk

Potential Strategy



Cash Extension


1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $325 $359 $174 $25

2 $503 $586 $157 $-129

3 $369 $486 $158 $-109

Total $1197 $1431 $489 $-213




90 days





Still Strong



sensitive posture




fall





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $248 $284 $200 $152

2 $428 $517 $222 $16

3 $411 $512 $218 $24

Total $1087 $1313 $640 $192



Investments

Loans

Deposits

Wholesale

Other

ALCO Action Items


Closing Thoughts


Different Lenses









Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response









Slide Number 24






Slide Number 30





Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends









Lending Strategies


Loan Pricing




Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts

















11 Month CD Special















Lending Strategies








Loan Pricing




WSJP = 550

529

WSJP + 050 = 600



As of March 2019








Asset Sensitive

Liability Sensitive

Awareness Varies

Appetites Vary





Interest Rate Risk



Asset Yields

Funding Costs






Asset Sensitive

A Little of Both

Liability Sensitive











Liability Sensitive



025

225

425

625

825

025



BASE SIMULATION

025

225

425

625

825

025












approach)















Case Study 1







20001000

3000

800 405 421 408

66 65400 305 321 308 288 287

66 72 58

337

510000 00 00 00

41 38

41 38 38 48 51

11302018 8312018 5312018 2282018 11302017

38 48

388

Policy Guidelines


Executive Summary




Security Collateral










TOTAL LIQUID ASSETS

47554 43689

-1493 0

0 0

0

0

0

00 0

000

0

000

1059061

Pct Of Assets

120


0

91243

478

1397

0

126603

49524 45988

-478 0

I LIQUID ASSETS

33486

UST amp Agency



950






BASIC SURPLUS








105906

of Total Deposits63

253210

296714

56323

529530296714

429395

0

105906


Well Capitalized

lt Well Capitalized

Policy Limits (Min)

43504


10 53179

25 129430


0

1850

323489

405 80

66 20

305

70280

40 80












Strategy Discussion

Deposit Trends




467 496 455 446 428


Strategy Discussion

Loan Pricing




Executive Summary



Down 200BP

Up 200BP


Down 200BP

Up 200BP





-1000

700

-1562

548

494

10121255

249

-61

12571148

-22

-73

-24

-25-21-29 -24 -22 -21

-27 -29

-89-21 -21 04 -06 -35

-6125 14 25 21 -02

12531266

-123-16611301176

-90

477

-2284 -768-638-2000

1068

-453-243 -109

468

488

1234

516397 345

429359

485

431 407285

-62

-100-200 -100 -100 +400

11302018 8312018 5312018 2282018 11302017

Policy Guidelines


IRR Overview



IRR Overview


00

20

40

60

80

100

120

140

EVE Ratio (EVEEVA)

-250

-200

-150

-100

-50

00


0

20000

40000

60000

80000

100000

120000

140000


00

20

40

60

80

100

120

EVE Ratio (EVEEVA)

-700

-600

-500

-400

-300

-200

-100

00

100

200


0

20000

40000

60000

80000

100000

120000





Executive Summary





1682 1631 1595 1570 1572

793 775 802

$1624$10536306 301

$10493 $10415298

$8437$1510$1782 $1597

$10591296

$1585

$8861 $8849

1000500

17531083

1700

1638 16401033

16631052 10351057

$10531297

$8879$398$395

951 953

$8485$8203 $8352 $8223$8589

$500792 786

$8733$535$435

057 058

057946 922

955056058

11302018 8312018 5312018 2282018 11302017

Policy Guidelines





derivatives









Still Strong





income




Potential Strategy





1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563







Still Strong





income



Potential Strategy





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563


Case Study 2



Executive Summary






25001500

1500 422 430 336

55 691000 272 280 243 228 241

82 95 61

340

465100 00 57 73

14 19

14 19 89 111 96

10312018

7312018 4302018 1312018 10312017

32 38

305

Policy Guidelines









Net Cash Flow $5MM













Down 200BP

Up 200BP


Down 200BP

Up 200BP





1000

1500

800

-1083

456

390

11831381

285

-71

05

-32

-02

-06-09-20 -13 -08 -09

-15 03

-3318 36 31 14 35

-31

1270

-130 1140

414

-861 -2000

-198

374

424

443325 304

348301

380

352 307261

-31

-100-200


Executive Summary

10312018

7312018 4302018 1312018 10312017

Policy Guidelines







Equity

Other Liabilities

DDA

NOW

Savings

Utilization

Excess

8997

74303

132849 130877

Excess

244348

285

7025

7233165306

58546

65306

58546

464

244348

456

111499

49611

6386

64499

149136

244348

244348

390

Up 400BP 24M

113471

49611

64499

69529

49611

6386 6386

64499

Excess

64499

65306 65306

25284

90590

6386

Down 200BP Up 200BP

Excess


95212

49611

Base

50967

116273

17481958546 58546




Executive Summary

CAPITAL RATIOS







800 1551 1558 1536 1519 1532

8000 724 717 753

$845$4606323 342

$4572 $4546329

$3527$814$1010 $775

$4840312

$978

$4171 $3922

1200800

16321051

1639

1600 16161048

16181077 10581091

$4820306

$4214$148$92

898 886

$3493$3480 $3492 $3398$3807

$172758 742

$3863$207$67

070 071

070831 828

884070071

10312018

7312018 4302018 1312018 10312017

Policy Guidelines








Liquidity


IRR





Potential Strategy



Loan Floor


1 $524 $559 $552

2 $511 $589 $552

Total $1035 $1148 $1104


1 $186 $-87 $-87

2 $415 $-87 $-87

3 $415 $-88 $-88

Total $1016 $-262 $-262





Funded with cash

Liquidity




sensitive posture

Earnings





MBS Premium risk

Potential Strategy



Cash Extension


1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $325 $359 $174 $25

2 $503 $586 $157 $-129

3 $369 $486 $158 $-109

Total $1197 $1431 $489 $-213




90 days





Still Strong



sensitive posture




fall





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $248 $284 $200 $152

2 $428 $517 $222 $16

3 $411 $512 $218 $24

Total $1087 $1313 $640 $192



Investments

Loans

Deposits

Wholesale

Other

ALCO Action Items


Closing Thoughts


Different Lenses









Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response









Slide Number 24






Slide Number 30





Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends









Lending Strategies


Loan Pricing




Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts















Lending Strategies








Loan Pricing




WSJP = 550

529

WSJP + 050 = 600



As of March 2019








Asset Sensitive

Liability Sensitive

Awareness Varies

Appetites Vary





Interest Rate Risk



Asset Yields

Funding Costs






Asset Sensitive

A Little of Both

Liability Sensitive











Liability Sensitive



025

225

425

625

825

025



BASE SIMULATION

025

225

425

625

825

025












approach)















Case Study 1







20001000

3000

800 405 421 408

66 65400 305 321 308 288 287

66 72 58

337

510000 00 00 00

41 38

41 38 38 48 51

11302018 8312018 5312018 2282018 11302017

38 48

388

Policy Guidelines


Executive Summary




Security Collateral










TOTAL LIQUID ASSETS

47554 43689

-1493 0

0 0

0

0

0

00 0

000

0

000

1059061

Pct Of Assets

120


0

91243

478

1397

0

126603

49524 45988

-478 0

I LIQUID ASSETS

33486

UST amp Agency



950






BASIC SURPLUS








105906

of Total Deposits63

253210

296714

56323

529530296714

429395

0

105906


Well Capitalized

lt Well Capitalized

Policy Limits (Min)

43504


10 53179

25 129430


0

1850

323489

405 80

66 20

305

70280

40 80












Strategy Discussion

Deposit Trends




467 496 455 446 428


Strategy Discussion

Loan Pricing




Executive Summary



Down 200BP

Up 200BP


Down 200BP

Up 200BP





-1000

700

-1562

548

494

10121255

249

-61

12571148

-22

-73

-24

-25-21-29 -24 -22 -21

-27 -29

-89-21 -21 04 -06 -35

-6125 14 25 21 -02

12531266

-123-16611301176

-90

477

-2284 -768-638-2000

1068

-453-243 -109

468

488

1234

516397 345

429359

485

431 407285

-62

-100-200 -100 -100 +400

11302018 8312018 5312018 2282018 11302017

Policy Guidelines


IRR Overview



IRR Overview


00

20

40

60

80

100

120

140

EVE Ratio (EVEEVA)

-250

-200

-150

-100

-50

00


0

20000

40000

60000

80000

100000

120000

140000


00

20

40

60

80

100

120

EVE Ratio (EVEEVA)

-700

-600

-500

-400

-300

-200

-100

00

100

200


0

20000

40000

60000

80000

100000

120000





Executive Summary





1682 1631 1595 1570 1572

793 775 802

$1624$10536306 301

$10493 $10415298

$8437$1510$1782 $1597

$10591296

$1585

$8861 $8849

1000500

17531083

1700

1638 16401033

16631052 10351057

$10531297

$8879$398$395

951 953

$8485$8203 $8352 $8223$8589

$500792 786

$8733$535$435

057 058

057946 922

955056058

11302018 8312018 5312018 2282018 11302017

Policy Guidelines





derivatives









Still Strong





income




Potential Strategy





1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563







Still Strong





income



Potential Strategy





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563


Case Study 2



Executive Summary






25001500

1500 422 430 336

55 691000 272 280 243 228 241

82 95 61

340

465100 00 57 73

14 19

14 19 89 111 96

10312018

7312018 4302018 1312018 10312017

32 38

305

Policy Guidelines









Net Cash Flow $5MM













Down 200BP

Up 200BP


Down 200BP

Up 200BP





1000

1500

800

-1083

456

390

11831381

285

-71

05

-32

-02

-06-09-20 -13 -08 -09

-15 03

-3318 36 31 14 35

-31

1270

-130 1140

414

-861 -2000

-198

374

424

443325 304

348301

380

352 307261

-31

-100-200


Executive Summary

10312018

7312018 4302018 1312018 10312017

Policy Guidelines







Equity

Other Liabilities

DDA

NOW

Savings

Utilization

Excess

8997

74303

132849 130877

Excess

244348

285

7025

7233165306

58546

65306

58546

464

244348

456

111499

49611

6386

64499

149136

244348

244348

390

Up 400BP 24M

113471

49611

64499

69529

49611

6386 6386

64499

Excess

64499

65306 65306

25284

90590

6386

Down 200BP Up 200BP

Excess


95212

49611

Base

50967

116273

17481958546 58546




Executive Summary

CAPITAL RATIOS







800 1551 1558 1536 1519 1532

8000 724 717 753

$845$4606323 342

$4572 $4546329

$3527$814$1010 $775

$4840312

$978

$4171 $3922

1200800

16321051

1639

1600 16161048

16181077 10581091

$4820306

$4214$148$92

898 886

$3493$3480 $3492 $3398$3807

$172758 742

$3863$207$67

070 071

070831 828

884070071

10312018

7312018 4302018 1312018 10312017

Policy Guidelines








Liquidity


IRR





Potential Strategy



Loan Floor


1 $524 $559 $552

2 $511 $589 $552

Total $1035 $1148 $1104


1 $186 $-87 $-87

2 $415 $-87 $-87

3 $415 $-88 $-88

Total $1016 $-262 $-262





Funded with cash

Liquidity




sensitive posture

Earnings





MBS Premium risk

Potential Strategy



Cash Extension


1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $325 $359 $174 $25

2 $503 $586 $157 $-129

3 $369 $486 $158 $-109

Total $1197 $1431 $489 $-213




90 days





Still Strong



sensitive posture




fall





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $248 $284 $200 $152

2 $428 $517 $222 $16

3 $411 $512 $218 $24

Total $1087 $1313 $640 $192



Investments

Loans

Deposits

Wholesale

Other

ALCO Action Items


Closing Thoughts


Different Lenses









Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response









Slide Number 24






Slide Number 30





Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends









Lending Strategies


Loan Pricing




Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts








Loan Pricing




WSJP = 550

529

WSJP + 050 = 600



As of March 2019








Asset Sensitive

Liability Sensitive

Awareness Varies

Appetites Vary





Interest Rate Risk



Asset Yields

Funding Costs






Asset Sensitive

A Little of Both

Liability Sensitive











Liability Sensitive



025

225

425

625

825

025



BASE SIMULATION

025

225

425

625

825

025












approach)















Case Study 1







20001000

3000

800 405 421 408

66 65400 305 321 308 288 287

66 72 58

337

510000 00 00 00

41 38

41 38 38 48 51

11302018 8312018 5312018 2282018 11302017

38 48

388

Policy Guidelines


Executive Summary




Security Collateral










TOTAL LIQUID ASSETS

47554 43689

-1493 0

0 0

0

0

0

00 0

000

0

000

1059061

Pct Of Assets

120


0

91243

478

1397

0

126603

49524 45988

-478 0

I LIQUID ASSETS

33486

UST amp Agency



950






BASIC SURPLUS








105906

of Total Deposits63

253210

296714

56323

529530296714

429395

0

105906


Well Capitalized

lt Well Capitalized

Policy Limits (Min)

43504


10 53179

25 129430


0

1850

323489

405 80

66 20

305

70280

40 80












Strategy Discussion

Deposit Trends




467 496 455 446 428


Strategy Discussion

Loan Pricing




Executive Summary



Down 200BP

Up 200BP


Down 200BP

Up 200BP





-1000

700

-1562

548

494

10121255

249

-61

12571148

-22

-73

-24

-25-21-29 -24 -22 -21

-27 -29

-89-21 -21 04 -06 -35

-6125 14 25 21 -02

12531266

-123-16611301176

-90

477

-2284 -768-638-2000

1068

-453-243 -109

468

488

1234

516397 345

429359

485

431 407285

-62

-100-200 -100 -100 +400

11302018 8312018 5312018 2282018 11302017

Policy Guidelines


IRR Overview



IRR Overview


00

20

40

60

80

100

120

140

EVE Ratio (EVEEVA)

-250

-200

-150

-100

-50

00


0

20000

40000

60000

80000

100000

120000

140000


00

20

40

60

80

100

120

EVE Ratio (EVEEVA)

-700

-600

-500

-400

-300

-200

-100

00

100

200


0

20000

40000

60000

80000

100000

120000





Executive Summary





1682 1631 1595 1570 1572

793 775 802

$1624$10536306 301

$10493 $10415298

$8437$1510$1782 $1597

$10591296

$1585

$8861 $8849

1000500

17531083

1700

1638 16401033

16631052 10351057

$10531297

$8879$398$395

951 953

$8485$8203 $8352 $8223$8589

$500792 786

$8733$535$435

057 058

057946 922

955056058

11302018 8312018 5312018 2282018 11302017

Policy Guidelines





derivatives









Still Strong





income




Potential Strategy





1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563







Still Strong





income



Potential Strategy





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563


Case Study 2



Executive Summary






25001500

1500 422 430 336

55 691000 272 280 243 228 241

82 95 61

340

465100 00 57 73

14 19

14 19 89 111 96

10312018

7312018 4302018 1312018 10312017

32 38

305

Policy Guidelines









Net Cash Flow $5MM













Down 200BP

Up 200BP


Down 200BP

Up 200BP





1000

1500

800

-1083

456

390

11831381

285

-71

05

-32

-02

-06-09-20 -13 -08 -09

-15 03

-3318 36 31 14 35

-31

1270

-130 1140

414

-861 -2000

-198

374

424

443325 304

348301

380

352 307261

-31

-100-200


Executive Summary

10312018

7312018 4302018 1312018 10312017

Policy Guidelines







Equity

Other Liabilities

DDA

NOW

Savings

Utilization

Excess

8997

74303

132849 130877

Excess

244348

285

7025

7233165306

58546

65306

58546

464

244348

456

111499

49611

6386

64499

149136

244348

244348

390

Up 400BP 24M

113471

49611

64499

69529

49611

6386 6386

64499

Excess

64499

65306 65306

25284

90590

6386

Down 200BP Up 200BP

Excess


95212

49611

Base

50967

116273

17481958546 58546




Executive Summary

CAPITAL RATIOS







800 1551 1558 1536 1519 1532

8000 724 717 753

$845$4606323 342

$4572 $4546329

$3527$814$1010 $775

$4840312

$978

$4171 $3922

1200800

16321051

1639

1600 16161048

16181077 10581091

$4820306

$4214$148$92

898 886

$3493$3480 $3492 $3398$3807

$172758 742

$3863$207$67

070 071

070831 828

884070071

10312018

7312018 4302018 1312018 10312017

Policy Guidelines








Liquidity


IRR





Potential Strategy



Loan Floor


1 $524 $559 $552

2 $511 $589 $552

Total $1035 $1148 $1104


1 $186 $-87 $-87

2 $415 $-87 $-87

3 $415 $-88 $-88

Total $1016 $-262 $-262





Funded with cash

Liquidity




sensitive posture

Earnings





MBS Premium risk

Potential Strategy



Cash Extension


1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $325 $359 $174 $25

2 $503 $586 $157 $-129

3 $369 $486 $158 $-109

Total $1197 $1431 $489 $-213




90 days





Still Strong



sensitive posture




fall





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $248 $284 $200 $152

2 $428 $517 $222 $16

3 $411 $512 $218 $24

Total $1087 $1313 $640 $192



Investments

Loans

Deposits

Wholesale

Other

ALCO Action Items


Closing Thoughts


Different Lenses









Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response









Slide Number 24






Slide Number 30





Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends









Lending Strategies


Loan Pricing




Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts



As of March 2019








Asset Sensitive

Liability Sensitive

Awareness Varies

Appetites Vary





Interest Rate Risk



Asset Yields

Funding Costs






Asset Sensitive

A Little of Both

Liability Sensitive











Liability Sensitive



025

225

425

625

825

025



BASE SIMULATION

025

225

425

625

825

025












approach)















Case Study 1







20001000

3000

800 405 421 408

66 65400 305 321 308 288 287

66 72 58

337

510000 00 00 00

41 38

41 38 38 48 51

11302018 8312018 5312018 2282018 11302017

38 48

388

Policy Guidelines


Executive Summary




Security Collateral










TOTAL LIQUID ASSETS

47554 43689

-1493 0

0 0

0

0

0

00 0

000

0

000

1059061

Pct Of Assets

120


0

91243

478

1397

0

126603

49524 45988

-478 0

I LIQUID ASSETS

33486

UST amp Agency



950






BASIC SURPLUS








105906

of Total Deposits63

253210

296714

56323

529530296714

429395

0

105906


Well Capitalized

lt Well Capitalized

Policy Limits (Min)

43504


10 53179

25 129430


0

1850

323489

405 80

66 20

305

70280

40 80












Strategy Discussion

Deposit Trends




467 496 455 446 428


Strategy Discussion

Loan Pricing




Executive Summary



Down 200BP

Up 200BP


Down 200BP

Up 200BP





-1000

700

-1562

548

494

10121255

249

-61

12571148

-22

-73

-24

-25-21-29 -24 -22 -21

-27 -29

-89-21 -21 04 -06 -35

-6125 14 25 21 -02

12531266

-123-16611301176

-90

477

-2284 -768-638-2000

1068

-453-243 -109

468

488

1234

516397 345

429359

485

431 407285

-62

-100-200 -100 -100 +400

11302018 8312018 5312018 2282018 11302017

Policy Guidelines


IRR Overview



IRR Overview


00

20

40

60

80

100

120

140

EVE Ratio (EVEEVA)

-250

-200

-150

-100

-50

00


0

20000

40000

60000

80000

100000

120000

140000


00

20

40

60

80

100

120

EVE Ratio (EVEEVA)

-700

-600

-500

-400

-300

-200

-100

00

100

200


0

20000

40000

60000

80000

100000

120000





Executive Summary





1682 1631 1595 1570 1572

793 775 802

$1624$10536306 301

$10493 $10415298

$8437$1510$1782 $1597

$10591296

$1585

$8861 $8849

1000500

17531083

1700

1638 16401033

16631052 10351057

$10531297

$8879$398$395

951 953

$8485$8203 $8352 $8223$8589

$500792 786

$8733$535$435

057 058

057946 922

955056058

11302018 8312018 5312018 2282018 11302017

Policy Guidelines





derivatives









Still Strong





income




Potential Strategy





1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563







Still Strong





income



Potential Strategy





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563


Case Study 2



Executive Summary






25001500

1500 422 430 336

55 691000 272 280 243 228 241

82 95 61

340

465100 00 57 73

14 19

14 19 89 111 96

10312018

7312018 4302018 1312018 10312017

32 38

305

Policy Guidelines









Net Cash Flow $5MM













Down 200BP

Up 200BP


Down 200BP

Up 200BP





1000

1500

800

-1083

456

390

11831381

285

-71

05

-32

-02

-06-09-20 -13 -08 -09

-15 03

-3318 36 31 14 35

-31

1270

-130 1140

414

-861 -2000

-198

374

424

443325 304

348301

380

352 307261

-31

-100-200


Executive Summary

10312018

7312018 4302018 1312018 10312017

Policy Guidelines







Equity

Other Liabilities

DDA

NOW

Savings

Utilization

Excess

8997

74303

132849 130877

Excess

244348

285

7025

7233165306

58546

65306

58546

464

244348

456

111499

49611

6386

64499

149136

244348

244348

390

Up 400BP 24M

113471

49611

64499

69529

49611

6386 6386

64499

Excess

64499

65306 65306

25284

90590

6386

Down 200BP Up 200BP

Excess


95212

49611

Base

50967

116273

17481958546 58546




Executive Summary

CAPITAL RATIOS







800 1551 1558 1536 1519 1532

8000 724 717 753

$845$4606323 342

$4572 $4546329

$3527$814$1010 $775

$4840312

$978

$4171 $3922

1200800

16321051

1639

1600 16161048

16181077 10581091

$4820306

$4214$148$92

898 886

$3493$3480 $3492 $3398$3807

$172758 742

$3863$207$67

070 071

070831 828

884070071

10312018

7312018 4302018 1312018 10312017

Policy Guidelines








Liquidity


IRR





Potential Strategy



Loan Floor


1 $524 $559 $552

2 $511 $589 $552

Total $1035 $1148 $1104


1 $186 $-87 $-87

2 $415 $-87 $-87

3 $415 $-88 $-88

Total $1016 $-262 $-262





Funded with cash

Liquidity




sensitive posture

Earnings





MBS Premium risk

Potential Strategy



Cash Extension


1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $325 $359 $174 $25

2 $503 $586 $157 $-129

3 $369 $486 $158 $-109

Total $1197 $1431 $489 $-213




90 days





Still Strong



sensitive posture




fall





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $248 $284 $200 $152

2 $428 $517 $222 $16

3 $411 $512 $218 $24

Total $1087 $1313 $640 $192



Investments

Loans

Deposits

Wholesale

Other

ALCO Action Items


Closing Thoughts


Different Lenses









Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response









Slide Number 24






Slide Number 30





Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends









Lending Strategies


Loan Pricing




Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts








Asset Sensitive

Liability Sensitive

Awareness Varies

Appetites Vary





Interest Rate Risk



Asset Yields

Funding Costs






Asset Sensitive

A Little of Both

Liability Sensitive











Liability Sensitive



025

225

425

625

825

025



BASE SIMULATION

025

225

425

625

825

025












approach)















Case Study 1







20001000

3000

800 405 421 408

66 65400 305 321 308 288 287

66 72 58

337

510000 00 00 00

41 38

41 38 38 48 51

11302018 8312018 5312018 2282018 11302017

38 48

388

Policy Guidelines


Executive Summary




Security Collateral










TOTAL LIQUID ASSETS

47554 43689

-1493 0

0 0

0

0

0

00 0

000

0

000

1059061

Pct Of Assets

120


0

91243

478

1397

0

126603

49524 45988

-478 0

I LIQUID ASSETS

33486

UST amp Agency



950






BASIC SURPLUS








105906

of Total Deposits63

253210

296714

56323

529530296714

429395

0

105906


Well Capitalized

lt Well Capitalized

Policy Limits (Min)

43504


10 53179

25 129430


0

1850

323489

405 80

66 20

305

70280

40 80












Strategy Discussion

Deposit Trends




467 496 455 446 428


Strategy Discussion

Loan Pricing




Executive Summary



Down 200BP

Up 200BP


Down 200BP

Up 200BP





-1000

700

-1562

548

494

10121255

249

-61

12571148

-22

-73

-24

-25-21-29 -24 -22 -21

-27 -29

-89-21 -21 04 -06 -35

-6125 14 25 21 -02

12531266

-123-16611301176

-90

477

-2284 -768-638-2000

1068

-453-243 -109

468

488

1234

516397 345

429359

485

431 407285

-62

-100-200 -100 -100 +400

11302018 8312018 5312018 2282018 11302017

Policy Guidelines


IRR Overview



IRR Overview


00

20

40

60

80

100

120

140

EVE Ratio (EVEEVA)

-250

-200

-150

-100

-50

00


0

20000

40000

60000

80000

100000

120000

140000


00

20

40

60

80

100

120

EVE Ratio (EVEEVA)

-700

-600

-500

-400

-300

-200

-100

00

100

200


0

20000

40000

60000

80000

100000

120000





Executive Summary





1682 1631 1595 1570 1572

793 775 802

$1624$10536306 301

$10493 $10415298

$8437$1510$1782 $1597

$10591296

$1585

$8861 $8849

1000500

17531083

1700

1638 16401033

16631052 10351057

$10531297

$8879$398$395

951 953

$8485$8203 $8352 $8223$8589

$500792 786

$8733$535$435

057 058

057946 922

955056058

11302018 8312018 5312018 2282018 11302017

Policy Guidelines





derivatives









Still Strong





income




Potential Strategy





1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563







Still Strong





income



Potential Strategy





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563


Case Study 2



Executive Summary






25001500

1500 422 430 336

55 691000 272 280 243 228 241

82 95 61

340

465100 00 57 73

14 19

14 19 89 111 96

10312018

7312018 4302018 1312018 10312017

32 38

305

Policy Guidelines









Net Cash Flow $5MM













Down 200BP

Up 200BP


Down 200BP

Up 200BP





1000

1500

800

-1083

456

390

11831381

285

-71

05

-32

-02

-06-09-20 -13 -08 -09

-15 03

-3318 36 31 14 35

-31

1270

-130 1140

414

-861 -2000

-198

374

424

443325 304

348301

380

352 307261

-31

-100-200


Executive Summary

10312018

7312018 4302018 1312018 10312017

Policy Guidelines







Equity

Other Liabilities

DDA

NOW

Savings

Utilization

Excess

8997

74303

132849 130877

Excess

244348

285

7025

7233165306

58546

65306

58546

464

244348

456

111499

49611

6386

64499

149136

244348

244348

390

Up 400BP 24M

113471

49611

64499

69529

49611

6386 6386

64499

Excess

64499

65306 65306

25284

90590

6386

Down 200BP Up 200BP

Excess


95212

49611

Base

50967

116273

17481958546 58546




Executive Summary

CAPITAL RATIOS







800 1551 1558 1536 1519 1532

8000 724 717 753

$845$4606323 342

$4572 $4546329

$3527$814$1010 $775

$4840312

$978

$4171 $3922

1200800

16321051

1639

1600 16161048

16181077 10581091

$4820306

$4214$148$92

898 886

$3493$3480 $3492 $3398$3807

$172758 742

$3863$207$67

070 071

070831 828

884070071

10312018

7312018 4302018 1312018 10312017

Policy Guidelines








Liquidity


IRR





Potential Strategy



Loan Floor


1 $524 $559 $552

2 $511 $589 $552

Total $1035 $1148 $1104


1 $186 $-87 $-87

2 $415 $-87 $-87

3 $415 $-88 $-88

Total $1016 $-262 $-262





Funded with cash

Liquidity




sensitive posture

Earnings





MBS Premium risk

Potential Strategy



Cash Extension


1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $325 $359 $174 $25

2 $503 $586 $157 $-129

3 $369 $486 $158 $-109

Total $1197 $1431 $489 $-213




90 days





Still Strong



sensitive posture




fall





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $248 $284 $200 $152

2 $428 $517 $222 $16

3 $411 $512 $218 $24

Total $1087 $1313 $640 $192



Investments

Loans

Deposits

Wholesale

Other

ALCO Action Items


Closing Thoughts


Different Lenses









Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response









Slide Number 24






Slide Number 30





Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends









Lending Strategies


Loan Pricing




Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts


Interest Rate Risk



Asset Yields

Funding Costs






Asset Sensitive

A Little of Both

Liability Sensitive











Liability Sensitive



025

225

425

625

825

025



BASE SIMULATION

025

225

425

625

825

025












approach)















Case Study 1







20001000

3000

800 405 421 408

66 65400 305 321 308 288 287

66 72 58

337

510000 00 00 00

41 38

41 38 38 48 51

11302018 8312018 5312018 2282018 11302017

38 48

388

Policy Guidelines


Executive Summary




Security Collateral










TOTAL LIQUID ASSETS

47554 43689

-1493 0

0 0

0

0

0

00 0

000

0

000

1059061

Pct Of Assets

120


0

91243

478

1397

0

126603

49524 45988

-478 0

I LIQUID ASSETS

33486

UST amp Agency



950






BASIC SURPLUS








105906

of Total Deposits63

253210

296714

56323

529530296714

429395

0

105906


Well Capitalized

lt Well Capitalized

Policy Limits (Min)

43504


10 53179

25 129430


0

1850

323489

405 80

66 20

305

70280

40 80












Strategy Discussion

Deposit Trends




467 496 455 446 428


Strategy Discussion

Loan Pricing




Executive Summary



Down 200BP

Up 200BP


Down 200BP

Up 200BP





-1000

700

-1562

548

494

10121255

249

-61

12571148

-22

-73

-24

-25-21-29 -24 -22 -21

-27 -29

-89-21 -21 04 -06 -35

-6125 14 25 21 -02

12531266

-123-16611301176

-90

477

-2284 -768-638-2000

1068

-453-243 -109

468

488

1234

516397 345

429359

485

431 407285

-62

-100-200 -100 -100 +400

11302018 8312018 5312018 2282018 11302017

Policy Guidelines


IRR Overview



IRR Overview


00

20

40

60

80

100

120

140

EVE Ratio (EVEEVA)

-250

-200

-150

-100

-50

00


0

20000

40000

60000

80000

100000

120000

140000


00

20

40

60

80

100

120

EVE Ratio (EVEEVA)

-700

-600

-500

-400

-300

-200

-100

00

100

200


0

20000

40000

60000

80000

100000

120000





Executive Summary





1682 1631 1595 1570 1572

793 775 802

$1624$10536306 301

$10493 $10415298

$8437$1510$1782 $1597

$10591296

$1585

$8861 $8849

1000500

17531083

1700

1638 16401033

16631052 10351057

$10531297

$8879$398$395

951 953

$8485$8203 $8352 $8223$8589

$500792 786

$8733$535$435

057 058

057946 922

955056058

11302018 8312018 5312018 2282018 11302017

Policy Guidelines





derivatives









Still Strong





income




Potential Strategy





1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563







Still Strong





income



Potential Strategy





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563


Case Study 2



Executive Summary






25001500

1500 422 430 336

55 691000 272 280 243 228 241

82 95 61

340

465100 00 57 73

14 19

14 19 89 111 96

10312018

7312018 4302018 1312018 10312017

32 38

305

Policy Guidelines









Net Cash Flow $5MM













Down 200BP

Up 200BP


Down 200BP

Up 200BP





1000

1500

800

-1083

456

390

11831381

285

-71

05

-32

-02

-06-09-20 -13 -08 -09

-15 03

-3318 36 31 14 35

-31

1270

-130 1140

414

-861 -2000

-198

374

424

443325 304

348301

380

352 307261

-31

-100-200


Executive Summary

10312018

7312018 4302018 1312018 10312017

Policy Guidelines







Equity

Other Liabilities

DDA

NOW

Savings

Utilization

Excess

8997

74303

132849 130877

Excess

244348

285

7025

7233165306

58546

65306

58546

464

244348

456

111499

49611

6386

64499

149136

244348

244348

390

Up 400BP 24M

113471

49611

64499

69529

49611

6386 6386

64499

Excess

64499

65306 65306

25284

90590

6386

Down 200BP Up 200BP

Excess


95212

49611

Base

50967

116273

17481958546 58546




Executive Summary

CAPITAL RATIOS







800 1551 1558 1536 1519 1532

8000 724 717 753

$845$4606323 342

$4572 $4546329

$3527$814$1010 $775

$4840312

$978

$4171 $3922

1200800

16321051

1639

1600 16161048

16181077 10581091

$4820306

$4214$148$92

898 886

$3493$3480 $3492 $3398$3807

$172758 742

$3863$207$67

070 071

070831 828

884070071

10312018

7312018 4302018 1312018 10312017

Policy Guidelines








Liquidity


IRR





Potential Strategy



Loan Floor


1 $524 $559 $552

2 $511 $589 $552

Total $1035 $1148 $1104


1 $186 $-87 $-87

2 $415 $-87 $-87

3 $415 $-88 $-88

Total $1016 $-262 $-262





Funded with cash

Liquidity




sensitive posture

Earnings





MBS Premium risk

Potential Strategy



Cash Extension


1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $325 $359 $174 $25

2 $503 $586 $157 $-129

3 $369 $486 $158 $-109

Total $1197 $1431 $489 $-213




90 days





Still Strong



sensitive posture




fall





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $248 $284 $200 $152

2 $428 $517 $222 $16

3 $411 $512 $218 $24

Total $1087 $1313 $640 $192



Investments

Loans

Deposits

Wholesale

Other

ALCO Action Items


Closing Thoughts


Different Lenses









Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response









Slide Number 24






Slide Number 30





Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends









Lending Strategies


Loan Pricing




Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts



Asset Yields

Funding Costs






Asset Sensitive

A Little of Both

Liability Sensitive











Liability Sensitive



025

225

425

625

825

025



BASE SIMULATION

025

225

425

625

825

025












approach)















Case Study 1







20001000

3000

800 405 421 408

66 65400 305 321 308 288 287

66 72 58

337

510000 00 00 00

41 38

41 38 38 48 51

11302018 8312018 5312018 2282018 11302017

38 48

388

Policy Guidelines


Executive Summary




Security Collateral










TOTAL LIQUID ASSETS

47554 43689

-1493 0

0 0

0

0

0

00 0

000

0

000

1059061

Pct Of Assets

120


0

91243

478

1397

0

126603

49524 45988

-478 0

I LIQUID ASSETS

33486

UST amp Agency



950






BASIC SURPLUS








105906

of Total Deposits63

253210

296714

56323

529530296714

429395

0

105906


Well Capitalized

lt Well Capitalized

Policy Limits (Min)

43504


10 53179

25 129430


0

1850

323489

405 80

66 20

305

70280

40 80












Strategy Discussion

Deposit Trends




467 496 455 446 428


Strategy Discussion

Loan Pricing




Executive Summary



Down 200BP

Up 200BP


Down 200BP

Up 200BP





-1000

700

-1562

548

494

10121255

249

-61

12571148

-22

-73

-24

-25-21-29 -24 -22 -21

-27 -29

-89-21 -21 04 -06 -35

-6125 14 25 21 -02

12531266

-123-16611301176

-90

477

-2284 -768-638-2000

1068

-453-243 -109

468

488

1234

516397 345

429359

485

431 407285

-62

-100-200 -100 -100 +400

11302018 8312018 5312018 2282018 11302017

Policy Guidelines


IRR Overview



IRR Overview


00

20

40

60

80

100

120

140

EVE Ratio (EVEEVA)

-250

-200

-150

-100

-50

00


0

20000

40000

60000

80000

100000

120000

140000


00

20

40

60

80

100

120

EVE Ratio (EVEEVA)

-700

-600

-500

-400

-300

-200

-100

00

100

200


0

20000

40000

60000

80000

100000

120000





Executive Summary





1682 1631 1595 1570 1572

793 775 802

$1624$10536306 301

$10493 $10415298

$8437$1510$1782 $1597

$10591296

$1585

$8861 $8849

1000500

17531083

1700

1638 16401033

16631052 10351057

$10531297

$8879$398$395

951 953

$8485$8203 $8352 $8223$8589

$500792 786

$8733$535$435

057 058

057946 922

955056058

11302018 8312018 5312018 2282018 11302017

Policy Guidelines





derivatives









Still Strong





income




Potential Strategy





1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563







Still Strong





income



Potential Strategy





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563


Case Study 2



Executive Summary






25001500

1500 422 430 336

55 691000 272 280 243 228 241

82 95 61

340

465100 00 57 73

14 19

14 19 89 111 96

10312018

7312018 4302018 1312018 10312017

32 38

305

Policy Guidelines









Net Cash Flow $5MM













Down 200BP

Up 200BP


Down 200BP

Up 200BP





1000

1500

800

-1083

456

390

11831381

285

-71

05

-32

-02

-06-09-20 -13 -08 -09

-15 03

-3318 36 31 14 35

-31

1270

-130 1140

414

-861 -2000

-198

374

424

443325 304

348301

380

352 307261

-31

-100-200


Executive Summary

10312018

7312018 4302018 1312018 10312017

Policy Guidelines







Equity

Other Liabilities

DDA

NOW

Savings

Utilization

Excess

8997

74303

132849 130877

Excess

244348

285

7025

7233165306

58546

65306

58546

464

244348

456

111499

49611

6386

64499

149136

244348

244348

390

Up 400BP 24M

113471

49611

64499

69529

49611

6386 6386

64499

Excess

64499

65306 65306

25284

90590

6386

Down 200BP Up 200BP

Excess


95212

49611

Base

50967

116273

17481958546 58546




Executive Summary

CAPITAL RATIOS







800 1551 1558 1536 1519 1532

8000 724 717 753

$845$4606323 342

$4572 $4546329

$3527$814$1010 $775

$4840312

$978

$4171 $3922

1200800

16321051

1639

1600 16161048

16181077 10581091

$4820306

$4214$148$92

898 886

$3493$3480 $3492 $3398$3807

$172758 742

$3863$207$67

070 071

070831 828

884070071

10312018

7312018 4302018 1312018 10312017

Policy Guidelines








Liquidity


IRR





Potential Strategy



Loan Floor


1 $524 $559 $552

2 $511 $589 $552

Total $1035 $1148 $1104


1 $186 $-87 $-87

2 $415 $-87 $-87

3 $415 $-88 $-88

Total $1016 $-262 $-262





Funded with cash

Liquidity




sensitive posture

Earnings





MBS Premium risk

Potential Strategy



Cash Extension


1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $325 $359 $174 $25

2 $503 $586 $157 $-129

3 $369 $486 $158 $-109

Total $1197 $1431 $489 $-213




90 days





Still Strong



sensitive posture




fall





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $248 $284 $200 $152

2 $428 $517 $222 $16

3 $411 $512 $218 $24

Total $1087 $1313 $640 $192



Investments

Loans

Deposits

Wholesale

Other

ALCO Action Items


Closing Thoughts


Different Lenses









Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response









Slide Number 24






Slide Number 30





Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends









Lending Strategies


Loan Pricing




Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts






Asset Sensitive

A Little of Both

Liability Sensitive











Liability Sensitive



025

225

425

625

825

025



BASE SIMULATION

025

225

425

625

825

025












approach)















Case Study 1







20001000

3000

800 405 421 408

66 65400 305 321 308 288 287

66 72 58

337

510000 00 00 00

41 38

41 38 38 48 51

11302018 8312018 5312018 2282018 11302017

38 48

388

Policy Guidelines


Executive Summary




Security Collateral










TOTAL LIQUID ASSETS

47554 43689

-1493 0

0 0

0

0

0

00 0

000

0

000

1059061

Pct Of Assets

120


0

91243

478

1397

0

126603

49524 45988

-478 0

I LIQUID ASSETS

33486

UST amp Agency



950






BASIC SURPLUS








105906

of Total Deposits63

253210

296714

56323

529530296714

429395

0

105906


Well Capitalized

lt Well Capitalized

Policy Limits (Min)

43504


10 53179

25 129430


0

1850

323489

405 80

66 20

305

70280

40 80












Strategy Discussion

Deposit Trends




467 496 455 446 428


Strategy Discussion

Loan Pricing




Executive Summary



Down 200BP

Up 200BP


Down 200BP

Up 200BP





-1000

700

-1562

548

494

10121255

249

-61

12571148

-22

-73

-24

-25-21-29 -24 -22 -21

-27 -29

-89-21 -21 04 -06 -35

-6125 14 25 21 -02

12531266

-123-16611301176

-90

477

-2284 -768-638-2000

1068

-453-243 -109

468

488

1234

516397 345

429359

485

431 407285

-62

-100-200 -100 -100 +400

11302018 8312018 5312018 2282018 11302017

Policy Guidelines


IRR Overview



IRR Overview


00

20

40

60

80

100

120

140

EVE Ratio (EVEEVA)

-250

-200

-150

-100

-50

00


0

20000

40000

60000

80000

100000

120000

140000


00

20

40

60

80

100

120

EVE Ratio (EVEEVA)

-700

-600

-500

-400

-300

-200

-100

00

100

200


0

20000

40000

60000

80000

100000

120000





Executive Summary





1682 1631 1595 1570 1572

793 775 802

$1624$10536306 301

$10493 $10415298

$8437$1510$1782 $1597

$10591296

$1585

$8861 $8849

1000500

17531083

1700

1638 16401033

16631052 10351057

$10531297

$8879$398$395

951 953

$8485$8203 $8352 $8223$8589

$500792 786

$8733$535$435

057 058

057946 922

955056058

11302018 8312018 5312018 2282018 11302017

Policy Guidelines





derivatives









Still Strong





income




Potential Strategy





1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563







Still Strong





income



Potential Strategy





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563


Case Study 2



Executive Summary






25001500

1500 422 430 336

55 691000 272 280 243 228 241

82 95 61

340

465100 00 57 73

14 19

14 19 89 111 96

10312018

7312018 4302018 1312018 10312017

32 38

305

Policy Guidelines









Net Cash Flow $5MM













Down 200BP

Up 200BP


Down 200BP

Up 200BP





1000

1500

800

-1083

456

390

11831381

285

-71

05

-32

-02

-06-09-20 -13 -08 -09

-15 03

-3318 36 31 14 35

-31

1270

-130 1140

414

-861 -2000

-198

374

424

443325 304

348301

380

352 307261

-31

-100-200


Executive Summary

10312018

7312018 4302018 1312018 10312017

Policy Guidelines







Equity

Other Liabilities

DDA

NOW

Savings

Utilization

Excess

8997

74303

132849 130877

Excess

244348

285

7025

7233165306

58546

65306

58546

464

244348

456

111499

49611

6386

64499

149136

244348

244348

390

Up 400BP 24M

113471

49611

64499

69529

49611

6386 6386

64499

Excess

64499

65306 65306

25284

90590

6386

Down 200BP Up 200BP

Excess


95212

49611

Base

50967

116273

17481958546 58546




Executive Summary

CAPITAL RATIOS







800 1551 1558 1536 1519 1532

8000 724 717 753

$845$4606323 342

$4572 $4546329

$3527$814$1010 $775

$4840312

$978

$4171 $3922

1200800

16321051

1639

1600 16161048

16181077 10581091

$4820306

$4214$148$92

898 886

$3493$3480 $3492 $3398$3807

$172758 742

$3863$207$67

070 071

070831 828

884070071

10312018

7312018 4302018 1312018 10312017

Policy Guidelines








Liquidity


IRR





Potential Strategy



Loan Floor


1 $524 $559 $552

2 $511 $589 $552

Total $1035 $1148 $1104


1 $186 $-87 $-87

2 $415 $-87 $-87

3 $415 $-88 $-88

Total $1016 $-262 $-262





Funded with cash

Liquidity




sensitive posture

Earnings





MBS Premium risk

Potential Strategy



Cash Extension


1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $325 $359 $174 $25

2 $503 $586 $157 $-129

3 $369 $486 $158 $-109

Total $1197 $1431 $489 $-213




90 days





Still Strong



sensitive posture




fall





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $248 $284 $200 $152

2 $428 $517 $222 $16

3 $411 $512 $218 $24

Total $1087 $1313 $640 $192



Investments

Loans

Deposits

Wholesale

Other

ALCO Action Items


Closing Thoughts


Different Lenses









Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response









Slide Number 24






Slide Number 30





Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends









Lending Strategies


Loan Pricing




Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts










Liability Sensitive



025

225

425

625

825

025



BASE SIMULATION

025

225

425

625

825

025












approach)















Case Study 1







20001000

3000

800 405 421 408

66 65400 305 321 308 288 287

66 72 58

337

510000 00 00 00

41 38

41 38 38 48 51

11302018 8312018 5312018 2282018 11302017

38 48

388

Policy Guidelines


Executive Summary




Security Collateral










TOTAL LIQUID ASSETS

47554 43689

-1493 0

0 0

0

0

0

00 0

000

0

000

1059061

Pct Of Assets

120


0

91243

478

1397

0

126603

49524 45988

-478 0

I LIQUID ASSETS

33486

UST amp Agency



950






BASIC SURPLUS








105906

of Total Deposits63

253210

296714

56323

529530296714

429395

0

105906


Well Capitalized

lt Well Capitalized

Policy Limits (Min)

43504


10 53179

25 129430


0

1850

323489

405 80

66 20

305

70280

40 80












Strategy Discussion

Deposit Trends




467 496 455 446 428


Strategy Discussion

Loan Pricing




Executive Summary



Down 200BP

Up 200BP


Down 200BP

Up 200BP





-1000

700

-1562

548

494

10121255

249

-61

12571148

-22

-73

-24

-25-21-29 -24 -22 -21

-27 -29

-89-21 -21 04 -06 -35

-6125 14 25 21 -02

12531266

-123-16611301176

-90

477

-2284 -768-638-2000

1068

-453-243 -109

468

488

1234

516397 345

429359

485

431 407285

-62

-100-200 -100 -100 +400

11302018 8312018 5312018 2282018 11302017

Policy Guidelines


IRR Overview



IRR Overview


00

20

40

60

80

100

120

140

EVE Ratio (EVEEVA)

-250

-200

-150

-100

-50

00


0

20000

40000

60000

80000

100000

120000

140000


00

20

40

60

80

100

120

EVE Ratio (EVEEVA)

-700

-600

-500

-400

-300

-200

-100

00

100

200


0

20000

40000

60000

80000

100000

120000





Executive Summary





1682 1631 1595 1570 1572

793 775 802

$1624$10536306 301

$10493 $10415298

$8437$1510$1782 $1597

$10591296

$1585

$8861 $8849

1000500

17531083

1700

1638 16401033

16631052 10351057

$10531297

$8879$398$395

951 953

$8485$8203 $8352 $8223$8589

$500792 786

$8733$535$435

057 058

057946 922

955056058

11302018 8312018 5312018 2282018 11302017

Policy Guidelines





derivatives









Still Strong





income




Potential Strategy





1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563







Still Strong





income



Potential Strategy





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563


Case Study 2



Executive Summary






25001500

1500 422 430 336

55 691000 272 280 243 228 241

82 95 61

340

465100 00 57 73

14 19

14 19 89 111 96

10312018

7312018 4302018 1312018 10312017

32 38

305

Policy Guidelines









Net Cash Flow $5MM













Down 200BP

Up 200BP


Down 200BP

Up 200BP





1000

1500

800

-1083

456

390

11831381

285

-71

05

-32

-02

-06-09-20 -13 -08 -09

-15 03

-3318 36 31 14 35

-31

1270

-130 1140

414

-861 -2000

-198

374

424

443325 304

348301

380

352 307261

-31

-100-200


Executive Summary

10312018

7312018 4302018 1312018 10312017

Policy Guidelines







Equity

Other Liabilities

DDA

NOW

Savings

Utilization

Excess

8997

74303

132849 130877

Excess

244348

285

7025

7233165306

58546

65306

58546

464

244348

456

111499

49611

6386

64499

149136

244348

244348

390

Up 400BP 24M

113471

49611

64499

69529

49611

6386 6386

64499

Excess

64499

65306 65306

25284

90590

6386

Down 200BP Up 200BP

Excess


95212

49611

Base

50967

116273

17481958546 58546




Executive Summary

CAPITAL RATIOS







800 1551 1558 1536 1519 1532

8000 724 717 753

$845$4606323 342

$4572 $4546329

$3527$814$1010 $775

$4840312

$978

$4171 $3922

1200800

16321051

1639

1600 16161048

16181077 10581091

$4820306

$4214$148$92

898 886

$3493$3480 $3492 $3398$3807

$172758 742

$3863$207$67

070 071

070831 828

884070071

10312018

7312018 4302018 1312018 10312017

Policy Guidelines








Liquidity


IRR





Potential Strategy



Loan Floor


1 $524 $559 $552

2 $511 $589 $552

Total $1035 $1148 $1104


1 $186 $-87 $-87

2 $415 $-87 $-87

3 $415 $-88 $-88

Total $1016 $-262 $-262





Funded with cash

Liquidity




sensitive posture

Earnings





MBS Premium risk

Potential Strategy



Cash Extension


1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $325 $359 $174 $25

2 $503 $586 $157 $-129

3 $369 $486 $158 $-109

Total $1197 $1431 $489 $-213




90 days





Still Strong



sensitive posture




fall





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $248 $284 $200 $152

2 $428 $517 $222 $16

3 $411 $512 $218 $24

Total $1087 $1313 $640 $192



Investments

Loans

Deposits

Wholesale

Other

ALCO Action Items


Closing Thoughts


Different Lenses









Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response









Slide Number 24






Slide Number 30





Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends









Lending Strategies


Loan Pricing




Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts









approach)















Case Study 1







20001000

3000

800 405 421 408

66 65400 305 321 308 288 287

66 72 58

337

510000 00 00 00

41 38

41 38 38 48 51

11302018 8312018 5312018 2282018 11302017

38 48

388

Policy Guidelines


Executive Summary




Security Collateral










TOTAL LIQUID ASSETS

47554 43689

-1493 0

0 0

0

0

0

00 0

000

0

000

1059061

Pct Of Assets

120


0

91243

478

1397

0

126603

49524 45988

-478 0

I LIQUID ASSETS

33486

UST amp Agency



950






BASIC SURPLUS








105906

of Total Deposits63

253210

296714

56323

529530296714

429395

0

105906


Well Capitalized

lt Well Capitalized

Policy Limits (Min)

43504


10 53179

25 129430


0

1850

323489

405 80

66 20

305

70280

40 80












Strategy Discussion

Deposit Trends




467 496 455 446 428


Strategy Discussion

Loan Pricing




Executive Summary



Down 200BP

Up 200BP


Down 200BP

Up 200BP





-1000

700

-1562

548

494

10121255

249

-61

12571148

-22

-73

-24

-25-21-29 -24 -22 -21

-27 -29

-89-21 -21 04 -06 -35

-6125 14 25 21 -02

12531266

-123-16611301176

-90

477

-2284 -768-638-2000

1068

-453-243 -109

468

488

1234

516397 345

429359

485

431 407285

-62

-100-200 -100 -100 +400

11302018 8312018 5312018 2282018 11302017

Policy Guidelines


IRR Overview



IRR Overview


00

20

40

60

80

100

120

140

EVE Ratio (EVEEVA)

-250

-200

-150

-100

-50

00


0

20000

40000

60000

80000

100000

120000

140000


00

20

40

60

80

100

120

EVE Ratio (EVEEVA)

-700

-600

-500

-400

-300

-200

-100

00

100

200


0

20000

40000

60000

80000

100000

120000





Executive Summary





1682 1631 1595 1570 1572

793 775 802

$1624$10536306 301

$10493 $10415298

$8437$1510$1782 $1597

$10591296

$1585

$8861 $8849

1000500

17531083

1700

1638 16401033

16631052 10351057

$10531297

$8879$398$395

951 953

$8485$8203 $8352 $8223$8589

$500792 786

$8733$535$435

057 058

057946 922

955056058

11302018 8312018 5312018 2282018 11302017

Policy Guidelines





derivatives









Still Strong





income




Potential Strategy





1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563







Still Strong





income



Potential Strategy





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563


Case Study 2



Executive Summary






25001500

1500 422 430 336

55 691000 272 280 243 228 241

82 95 61

340

465100 00 57 73

14 19

14 19 89 111 96

10312018

7312018 4302018 1312018 10312017

32 38

305

Policy Guidelines









Net Cash Flow $5MM













Down 200BP

Up 200BP


Down 200BP

Up 200BP





1000

1500

800

-1083

456

390

11831381

285

-71

05

-32

-02

-06-09-20 -13 -08 -09

-15 03

-3318 36 31 14 35

-31

1270

-130 1140

414

-861 -2000

-198

374

424

443325 304

348301

380

352 307261

-31

-100-200


Executive Summary

10312018

7312018 4302018 1312018 10312017

Policy Guidelines







Equity

Other Liabilities

DDA

NOW

Savings

Utilization

Excess

8997

74303

132849 130877

Excess

244348

285

7025

7233165306

58546

65306

58546

464

244348

456

111499

49611

6386

64499

149136

244348

244348

390

Up 400BP 24M

113471

49611

64499

69529

49611

6386 6386

64499

Excess

64499

65306 65306

25284

90590

6386

Down 200BP Up 200BP

Excess


95212

49611

Base

50967

116273

17481958546 58546




Executive Summary

CAPITAL RATIOS







800 1551 1558 1536 1519 1532

8000 724 717 753

$845$4606323 342

$4572 $4546329

$3527$814$1010 $775

$4840312

$978

$4171 $3922

1200800

16321051

1639

1600 16161048

16181077 10581091

$4820306

$4214$148$92

898 886

$3493$3480 $3492 $3398$3807

$172758 742

$3863$207$67

070 071

070831 828

884070071

10312018

7312018 4302018 1312018 10312017

Policy Guidelines








Liquidity


IRR





Potential Strategy



Loan Floor


1 $524 $559 $552

2 $511 $589 $552

Total $1035 $1148 $1104


1 $186 $-87 $-87

2 $415 $-87 $-87

3 $415 $-88 $-88

Total $1016 $-262 $-262





Funded with cash

Liquidity




sensitive posture

Earnings





MBS Premium risk

Potential Strategy



Cash Extension


1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $325 $359 $174 $25

2 $503 $586 $157 $-129

3 $369 $486 $158 $-109

Total $1197 $1431 $489 $-213




90 days





Still Strong



sensitive posture




fall





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $248 $284 $200 $152

2 $428 $517 $222 $16

3 $411 $512 $218 $24

Total $1087 $1313 $640 $192



Investments

Loans

Deposits

Wholesale

Other

ALCO Action Items


Closing Thoughts


Different Lenses









Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response









Slide Number 24






Slide Number 30





Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends









Lending Strategies


Loan Pricing




Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts















Case Study 1







20001000

3000

800 405 421 408

66 65400 305 321 308 288 287

66 72 58

337

510000 00 00 00

41 38

41 38 38 48 51

11302018 8312018 5312018 2282018 11302017

38 48

388

Policy Guidelines


Executive Summary




Security Collateral










TOTAL LIQUID ASSETS

47554 43689

-1493 0

0 0

0

0

0

00 0

000

0

000

1059061

Pct Of Assets

120


0

91243

478

1397

0

126603

49524 45988

-478 0

I LIQUID ASSETS

33486

UST amp Agency



950






BASIC SURPLUS








105906

of Total Deposits63

253210

296714

56323

529530296714

429395

0

105906


Well Capitalized

lt Well Capitalized

Policy Limits (Min)

43504


10 53179

25 129430


0

1850

323489

405 80

66 20

305

70280

40 80












Strategy Discussion

Deposit Trends




467 496 455 446 428


Strategy Discussion

Loan Pricing




Executive Summary



Down 200BP

Up 200BP


Down 200BP

Up 200BP





-1000

700

-1562

548

494

10121255

249

-61

12571148

-22

-73

-24

-25-21-29 -24 -22 -21

-27 -29

-89-21 -21 04 -06 -35

-6125 14 25 21 -02

12531266

-123-16611301176

-90

477

-2284 -768-638-2000

1068

-453-243 -109

468

488

1234

516397 345

429359

485

431 407285

-62

-100-200 -100 -100 +400

11302018 8312018 5312018 2282018 11302017

Policy Guidelines


IRR Overview



IRR Overview


00

20

40

60

80

100

120

140

EVE Ratio (EVEEVA)

-250

-200

-150

-100

-50

00


0

20000

40000

60000

80000

100000

120000

140000


00

20

40

60

80

100

120

EVE Ratio (EVEEVA)

-700

-600

-500

-400

-300

-200

-100

00

100

200


0

20000

40000

60000

80000

100000

120000





Executive Summary





1682 1631 1595 1570 1572

793 775 802

$1624$10536306 301

$10493 $10415298

$8437$1510$1782 $1597

$10591296

$1585

$8861 $8849

1000500

17531083

1700

1638 16401033

16631052 10351057

$10531297

$8879$398$395

951 953

$8485$8203 $8352 $8223$8589

$500792 786

$8733$535$435

057 058

057946 922

955056058

11302018 8312018 5312018 2282018 11302017

Policy Guidelines





derivatives









Still Strong





income




Potential Strategy





1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563







Still Strong





income



Potential Strategy





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563


Case Study 2



Executive Summary






25001500

1500 422 430 336

55 691000 272 280 243 228 241

82 95 61

340

465100 00 57 73

14 19

14 19 89 111 96

10312018

7312018 4302018 1312018 10312017

32 38

305

Policy Guidelines









Net Cash Flow $5MM













Down 200BP

Up 200BP


Down 200BP

Up 200BP





1000

1500

800

-1083

456

390

11831381

285

-71

05

-32

-02

-06-09-20 -13 -08 -09

-15 03

-3318 36 31 14 35

-31

1270

-130 1140

414

-861 -2000

-198

374

424

443325 304

348301

380

352 307261

-31

-100-200


Executive Summary

10312018

7312018 4302018 1312018 10312017

Policy Guidelines







Equity

Other Liabilities

DDA

NOW

Savings

Utilization

Excess

8997

74303

132849 130877

Excess

244348

285

7025

7233165306

58546

65306

58546

464

244348

456

111499

49611

6386

64499

149136

244348

244348

390

Up 400BP 24M

113471

49611

64499

69529

49611

6386 6386

64499

Excess

64499

65306 65306

25284

90590

6386

Down 200BP Up 200BP

Excess


95212

49611

Base

50967

116273

17481958546 58546




Executive Summary

CAPITAL RATIOS







800 1551 1558 1536 1519 1532

8000 724 717 753

$845$4606323 342

$4572 $4546329

$3527$814$1010 $775

$4840312

$978

$4171 $3922

1200800

16321051

1639

1600 16161048

16181077 10581091

$4820306

$4214$148$92

898 886

$3493$3480 $3492 $3398$3807

$172758 742

$3863$207$67

070 071

070831 828

884070071

10312018

7312018 4302018 1312018 10312017

Policy Guidelines








Liquidity


IRR





Potential Strategy



Loan Floor


1 $524 $559 $552

2 $511 $589 $552

Total $1035 $1148 $1104


1 $186 $-87 $-87

2 $415 $-87 $-87

3 $415 $-88 $-88

Total $1016 $-262 $-262





Funded with cash

Liquidity




sensitive posture

Earnings





MBS Premium risk

Potential Strategy



Cash Extension


1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $325 $359 $174 $25

2 $503 $586 $157 $-129

3 $369 $486 $158 $-109

Total $1197 $1431 $489 $-213




90 days





Still Strong



sensitive posture




fall





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $248 $284 $200 $152

2 $428 $517 $222 $16

3 $411 $512 $218 $24

Total $1087 $1313 $640 $192



Investments

Loans

Deposits

Wholesale

Other

ALCO Action Items


Closing Thoughts


Different Lenses









Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response









Slide Number 24






Slide Number 30





Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends









Lending Strategies


Loan Pricing




Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts







20001000

3000

800 405 421 408

66 65400 305 321 308 288 287

66 72 58

337

510000 00 00 00

41 38

41 38 38 48 51

11302018 8312018 5312018 2282018 11302017

38 48

388

Policy Guidelines


Executive Summary




Security Collateral










TOTAL LIQUID ASSETS

47554 43689

-1493 0

0 0

0

0

0

00 0

000

0

000

1059061

Pct Of Assets

120


0

91243

478

1397

0

126603

49524 45988

-478 0

I LIQUID ASSETS

33486

UST amp Agency



950






BASIC SURPLUS








105906

of Total Deposits63

253210

296714

56323

529530296714

429395

0

105906


Well Capitalized

lt Well Capitalized

Policy Limits (Min)

43504


10 53179

25 129430


0

1850

323489

405 80

66 20

305

70280

40 80












Strategy Discussion

Deposit Trends




467 496 455 446 428


Strategy Discussion

Loan Pricing




Executive Summary



Down 200BP

Up 200BP


Down 200BP

Up 200BP





-1000

700

-1562

548

494

10121255

249

-61

12571148

-22

-73

-24

-25-21-29 -24 -22 -21

-27 -29

-89-21 -21 04 -06 -35

-6125 14 25 21 -02

12531266

-123-16611301176

-90

477

-2284 -768-638-2000

1068

-453-243 -109

468

488

1234

516397 345

429359

485

431 407285

-62

-100-200 -100 -100 +400

11302018 8312018 5312018 2282018 11302017

Policy Guidelines


IRR Overview



IRR Overview


00

20

40

60

80

100

120

140

EVE Ratio (EVEEVA)

-250

-200

-150

-100

-50

00


0

20000

40000

60000

80000

100000

120000

140000


00

20

40

60

80

100

120

EVE Ratio (EVEEVA)

-700

-600

-500

-400

-300

-200

-100

00

100

200


0

20000

40000

60000

80000

100000

120000





Executive Summary





1682 1631 1595 1570 1572

793 775 802

$1624$10536306 301

$10493 $10415298

$8437$1510$1782 $1597

$10591296

$1585

$8861 $8849

1000500

17531083

1700

1638 16401033

16631052 10351057

$10531297

$8879$398$395

951 953

$8485$8203 $8352 $8223$8589

$500792 786

$8733$535$435

057 058

057946 922

955056058

11302018 8312018 5312018 2282018 11302017

Policy Guidelines





derivatives









Still Strong





income




Potential Strategy





1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563







Still Strong





income



Potential Strategy





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563


Case Study 2



Executive Summary






25001500

1500 422 430 336

55 691000 272 280 243 228 241

82 95 61

340

465100 00 57 73

14 19

14 19 89 111 96

10312018

7312018 4302018 1312018 10312017

32 38

305

Policy Guidelines









Net Cash Flow $5MM













Down 200BP

Up 200BP


Down 200BP

Up 200BP





1000

1500

800

-1083

456

390

11831381

285

-71

05

-32

-02

-06-09-20 -13 -08 -09

-15 03

-3318 36 31 14 35

-31

1270

-130 1140

414

-861 -2000

-198

374

424

443325 304

348301

380

352 307261

-31

-100-200


Executive Summary

10312018

7312018 4302018 1312018 10312017

Policy Guidelines







Equity

Other Liabilities

DDA

NOW

Savings

Utilization

Excess

8997

74303

132849 130877

Excess

244348

285

7025

7233165306

58546

65306

58546

464

244348

456

111499

49611

6386

64499

149136

244348

244348

390

Up 400BP 24M

113471

49611

64499

69529

49611

6386 6386

64499

Excess

64499

65306 65306

25284

90590

6386

Down 200BP Up 200BP

Excess


95212

49611

Base

50967

116273

17481958546 58546




Executive Summary

CAPITAL RATIOS







800 1551 1558 1536 1519 1532

8000 724 717 753

$845$4606323 342

$4572 $4546329

$3527$814$1010 $775

$4840312

$978

$4171 $3922

1200800

16321051

1639

1600 16161048

16181077 10581091

$4820306

$4214$148$92

898 886

$3493$3480 $3492 $3398$3807

$172758 742

$3863$207$67

070 071

070831 828

884070071

10312018

7312018 4302018 1312018 10312017

Policy Guidelines








Liquidity


IRR





Potential Strategy



Loan Floor


1 $524 $559 $552

2 $511 $589 $552

Total $1035 $1148 $1104


1 $186 $-87 $-87

2 $415 $-87 $-87

3 $415 $-88 $-88

Total $1016 $-262 $-262





Funded with cash

Liquidity




sensitive posture

Earnings





MBS Premium risk

Potential Strategy



Cash Extension


1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $325 $359 $174 $25

2 $503 $586 $157 $-129

3 $369 $486 $158 $-109

Total $1197 $1431 $489 $-213




90 days





Still Strong



sensitive posture




fall





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $248 $284 $200 $152

2 $428 $517 $222 $16

3 $411 $512 $218 $24

Total $1087 $1313 $640 $192



Investments

Loans

Deposits

Wholesale

Other

ALCO Action Items


Closing Thoughts


Different Lenses









Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response









Slide Number 24






Slide Number 30





Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends









Lending Strategies


Loan Pricing




Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts




Security Collateral










TOTAL LIQUID ASSETS

47554 43689

-1493 0

0 0

0

0

0

00 0

000

0

000

1059061

Pct Of Assets

120


0

91243

478

1397

0

126603

49524 45988

-478 0

I LIQUID ASSETS

33486

UST amp Agency



950






BASIC SURPLUS








105906

of Total Deposits63

253210

296714

56323

529530296714

429395

0

105906


Well Capitalized

lt Well Capitalized

Policy Limits (Min)

43504


10 53179

25 129430


0

1850

323489

405 80

66 20

305

70280

40 80












Strategy Discussion

Deposit Trends




467 496 455 446 428


Strategy Discussion

Loan Pricing




Executive Summary



Down 200BP

Up 200BP


Down 200BP

Up 200BP





-1000

700

-1562

548

494

10121255

249

-61

12571148

-22

-73

-24

-25-21-29 -24 -22 -21

-27 -29

-89-21 -21 04 -06 -35

-6125 14 25 21 -02

12531266

-123-16611301176

-90

477

-2284 -768-638-2000

1068

-453-243 -109

468

488

1234

516397 345

429359

485

431 407285

-62

-100-200 -100 -100 +400

11302018 8312018 5312018 2282018 11302017

Policy Guidelines


IRR Overview



IRR Overview


00

20

40

60

80

100

120

140

EVE Ratio (EVEEVA)

-250

-200

-150

-100

-50

00


0

20000

40000

60000

80000

100000

120000

140000


00

20

40

60

80

100

120

EVE Ratio (EVEEVA)

-700

-600

-500

-400

-300

-200

-100

00

100

200


0

20000

40000

60000

80000

100000

120000





Executive Summary





1682 1631 1595 1570 1572

793 775 802

$1624$10536306 301

$10493 $10415298

$8437$1510$1782 $1597

$10591296

$1585

$8861 $8849

1000500

17531083

1700

1638 16401033

16631052 10351057

$10531297

$8879$398$395

951 953

$8485$8203 $8352 $8223$8589

$500792 786

$8733$535$435

057 058

057946 922

955056058

11302018 8312018 5312018 2282018 11302017

Policy Guidelines





derivatives









Still Strong





income




Potential Strategy





1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563







Still Strong





income



Potential Strategy





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563


Case Study 2



Executive Summary






25001500

1500 422 430 336

55 691000 272 280 243 228 241

82 95 61

340

465100 00 57 73

14 19

14 19 89 111 96

10312018

7312018 4302018 1312018 10312017

32 38

305

Policy Guidelines









Net Cash Flow $5MM













Down 200BP

Up 200BP


Down 200BP

Up 200BP





1000

1500

800

-1083

456

390

11831381

285

-71

05

-32

-02

-06-09-20 -13 -08 -09

-15 03

-3318 36 31 14 35

-31

1270

-130 1140

414

-861 -2000

-198

374

424

443325 304

348301

380

352 307261

-31

-100-200


Executive Summary

10312018

7312018 4302018 1312018 10312017

Policy Guidelines







Equity

Other Liabilities

DDA

NOW

Savings

Utilization

Excess

8997

74303

132849 130877

Excess

244348

285

7025

7233165306

58546

65306

58546

464

244348

456

111499

49611

6386

64499

149136

244348

244348

390

Up 400BP 24M

113471

49611

64499

69529

49611

6386 6386

64499

Excess

64499

65306 65306

25284

90590

6386

Down 200BP Up 200BP

Excess


95212

49611

Base

50967

116273

17481958546 58546




Executive Summary

CAPITAL RATIOS







800 1551 1558 1536 1519 1532

8000 724 717 753

$845$4606323 342

$4572 $4546329

$3527$814$1010 $775

$4840312

$978

$4171 $3922

1200800

16321051

1639

1600 16161048

16181077 10581091

$4820306

$4214$148$92

898 886

$3493$3480 $3492 $3398$3807

$172758 742

$3863$207$67

070 071

070831 828

884070071

10312018

7312018 4302018 1312018 10312017

Policy Guidelines








Liquidity


IRR





Potential Strategy



Loan Floor


1 $524 $559 $552

2 $511 $589 $552

Total $1035 $1148 $1104


1 $186 $-87 $-87

2 $415 $-87 $-87

3 $415 $-88 $-88

Total $1016 $-262 $-262





Funded with cash

Liquidity




sensitive posture

Earnings





MBS Premium risk

Potential Strategy



Cash Extension


1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $325 $359 $174 $25

2 $503 $586 $157 $-129

3 $369 $486 $158 $-109

Total $1197 $1431 $489 $-213




90 days





Still Strong



sensitive posture




fall





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $248 $284 $200 $152

2 $428 $517 $222 $16

3 $411 $512 $218 $24

Total $1087 $1313 $640 $192



Investments

Loans

Deposits

Wholesale

Other

ALCO Action Items


Closing Thoughts


Different Lenses









Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response









Slide Number 24






Slide Number 30





Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends









Lending Strategies


Loan Pricing




Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts






BASIC SURPLUS








105906

of Total Deposits63

253210

296714

56323

529530296714

429395

0

105906


Well Capitalized

lt Well Capitalized

Policy Limits (Min)

43504


10 53179

25 129430


0

1850

323489

405 80

66 20

305

70280

40 80












Strategy Discussion

Deposit Trends




467 496 455 446 428


Strategy Discussion

Loan Pricing




Executive Summary



Down 200BP

Up 200BP


Down 200BP

Up 200BP





-1000

700

-1562

548

494

10121255

249

-61

12571148

-22

-73

-24

-25-21-29 -24 -22 -21

-27 -29

-89-21 -21 04 -06 -35

-6125 14 25 21 -02

12531266

-123-16611301176

-90

477

-2284 -768-638-2000

1068

-453-243 -109

468

488

1234

516397 345

429359

485

431 407285

-62

-100-200 -100 -100 +400

11302018 8312018 5312018 2282018 11302017

Policy Guidelines


IRR Overview



IRR Overview


00

20

40

60

80

100

120

140

EVE Ratio (EVEEVA)

-250

-200

-150

-100

-50

00


0

20000

40000

60000

80000

100000

120000

140000


00

20

40

60

80

100

120

EVE Ratio (EVEEVA)

-700

-600

-500

-400

-300

-200

-100

00

100

200


0

20000

40000

60000

80000

100000

120000





Executive Summary





1682 1631 1595 1570 1572

793 775 802

$1624$10536306 301

$10493 $10415298

$8437$1510$1782 $1597

$10591296

$1585

$8861 $8849

1000500

17531083

1700

1638 16401033

16631052 10351057

$10531297

$8879$398$395

951 953

$8485$8203 $8352 $8223$8589

$500792 786

$8733$535$435

057 058

057946 922

955056058

11302018 8312018 5312018 2282018 11302017

Policy Guidelines





derivatives









Still Strong





income




Potential Strategy





1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563







Still Strong





income



Potential Strategy





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563


Case Study 2



Executive Summary






25001500

1500 422 430 336

55 691000 272 280 243 228 241

82 95 61

340

465100 00 57 73

14 19

14 19 89 111 96

10312018

7312018 4302018 1312018 10312017

32 38

305

Policy Guidelines









Net Cash Flow $5MM













Down 200BP

Up 200BP


Down 200BP

Up 200BP





1000

1500

800

-1083

456

390

11831381

285

-71

05

-32

-02

-06-09-20 -13 -08 -09

-15 03

-3318 36 31 14 35

-31

1270

-130 1140

414

-861 -2000

-198

374

424

443325 304

348301

380

352 307261

-31

-100-200


Executive Summary

10312018

7312018 4302018 1312018 10312017

Policy Guidelines







Equity

Other Liabilities

DDA

NOW

Savings

Utilization

Excess

8997

74303

132849 130877

Excess

244348

285

7025

7233165306

58546

65306

58546

464

244348

456

111499

49611

6386

64499

149136

244348

244348

390

Up 400BP 24M

113471

49611

64499

69529

49611

6386 6386

64499

Excess

64499

65306 65306

25284

90590

6386

Down 200BP Up 200BP

Excess


95212

49611

Base

50967

116273

17481958546 58546




Executive Summary

CAPITAL RATIOS







800 1551 1558 1536 1519 1532

8000 724 717 753

$845$4606323 342

$4572 $4546329

$3527$814$1010 $775

$4840312

$978

$4171 $3922

1200800

16321051

1639

1600 16161048

16181077 10581091

$4820306

$4214$148$92

898 886

$3493$3480 $3492 $3398$3807

$172758 742

$3863$207$67

070 071

070831 828

884070071

10312018

7312018 4302018 1312018 10312017

Policy Guidelines








Liquidity


IRR





Potential Strategy



Loan Floor


1 $524 $559 $552

2 $511 $589 $552

Total $1035 $1148 $1104


1 $186 $-87 $-87

2 $415 $-87 $-87

3 $415 $-88 $-88

Total $1016 $-262 $-262





Funded with cash

Liquidity




sensitive posture

Earnings





MBS Premium risk

Potential Strategy



Cash Extension


1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $325 $359 $174 $25

2 $503 $586 $157 $-129

3 $369 $486 $158 $-109

Total $1197 $1431 $489 $-213




90 days





Still Strong



sensitive posture




fall





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $248 $284 $200 $152

2 $428 $517 $222 $16

3 $411 $512 $218 $24

Total $1087 $1313 $640 $192



Investments

Loans

Deposits

Wholesale

Other

ALCO Action Items


Closing Thoughts


Different Lenses









Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response









Slide Number 24






Slide Number 30





Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends









Lending Strategies


Loan Pricing




Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts












Strategy Discussion

Deposit Trends




467 496 455 446 428


Strategy Discussion

Loan Pricing




Executive Summary



Down 200BP

Up 200BP


Down 200BP

Up 200BP





-1000

700

-1562

548

494

10121255

249

-61

12571148

-22

-73

-24

-25-21-29 -24 -22 -21

-27 -29

-89-21 -21 04 -06 -35

-6125 14 25 21 -02

12531266

-123-16611301176

-90

477

-2284 -768-638-2000

1068

-453-243 -109

468

488

1234

516397 345

429359

485

431 407285

-62

-100-200 -100 -100 +400

11302018 8312018 5312018 2282018 11302017

Policy Guidelines


IRR Overview



IRR Overview


00

20

40

60

80

100

120

140

EVE Ratio (EVEEVA)

-250

-200

-150

-100

-50

00


0

20000

40000

60000

80000

100000

120000

140000


00

20

40

60

80

100

120

EVE Ratio (EVEEVA)

-700

-600

-500

-400

-300

-200

-100

00

100

200


0

20000

40000

60000

80000

100000

120000





Executive Summary





1682 1631 1595 1570 1572

793 775 802

$1624$10536306 301

$10493 $10415298

$8437$1510$1782 $1597

$10591296

$1585

$8861 $8849

1000500

17531083

1700

1638 16401033

16631052 10351057

$10531297

$8879$398$395

951 953

$8485$8203 $8352 $8223$8589

$500792 786

$8733$535$435

057 058

057946 922

955056058

11302018 8312018 5312018 2282018 11302017

Policy Guidelines





derivatives









Still Strong





income




Potential Strategy





1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563







Still Strong





income



Potential Strategy





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563


Case Study 2



Executive Summary






25001500

1500 422 430 336

55 691000 272 280 243 228 241

82 95 61

340

465100 00 57 73

14 19

14 19 89 111 96

10312018

7312018 4302018 1312018 10312017

32 38

305

Policy Guidelines









Net Cash Flow $5MM













Down 200BP

Up 200BP


Down 200BP

Up 200BP





1000

1500

800

-1083

456

390

11831381

285

-71

05

-32

-02

-06-09-20 -13 -08 -09

-15 03

-3318 36 31 14 35

-31

1270

-130 1140

414

-861 -2000

-198

374

424

443325 304

348301

380

352 307261

-31

-100-200


Executive Summary

10312018

7312018 4302018 1312018 10312017

Policy Guidelines







Equity

Other Liabilities

DDA

NOW

Savings

Utilization

Excess

8997

74303

132849 130877

Excess

244348

285

7025

7233165306

58546

65306

58546

464

244348

456

111499

49611

6386

64499

149136

244348

244348

390

Up 400BP 24M

113471

49611

64499

69529

49611

6386 6386

64499

Excess

64499

65306 65306

25284

90590

6386

Down 200BP Up 200BP

Excess


95212

49611

Base

50967

116273

17481958546 58546




Executive Summary

CAPITAL RATIOS







800 1551 1558 1536 1519 1532

8000 724 717 753

$845$4606323 342

$4572 $4546329

$3527$814$1010 $775

$4840312

$978

$4171 $3922

1200800

16321051

1639

1600 16161048

16181077 10581091

$4820306

$4214$148$92

898 886

$3493$3480 $3492 $3398$3807

$172758 742

$3863$207$67

070 071

070831 828

884070071

10312018

7312018 4302018 1312018 10312017

Policy Guidelines








Liquidity


IRR





Potential Strategy



Loan Floor


1 $524 $559 $552

2 $511 $589 $552

Total $1035 $1148 $1104


1 $186 $-87 $-87

2 $415 $-87 $-87

3 $415 $-88 $-88

Total $1016 $-262 $-262





Funded with cash

Liquidity




sensitive posture

Earnings





MBS Premium risk

Potential Strategy



Cash Extension


1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $325 $359 $174 $25

2 $503 $586 $157 $-129

3 $369 $486 $158 $-109

Total $1197 $1431 $489 $-213




90 days





Still Strong



sensitive posture




fall





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $248 $284 $200 $152

2 $428 $517 $222 $16

3 $411 $512 $218 $24

Total $1087 $1313 $640 $192



Investments

Loans

Deposits

Wholesale

Other

ALCO Action Items


Closing Thoughts


Different Lenses









Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response









Slide Number 24






Slide Number 30





Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends









Lending Strategies


Loan Pricing




Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts




467 496 455 446 428


Strategy Discussion

Loan Pricing




Executive Summary



Down 200BP

Up 200BP


Down 200BP

Up 200BP





-1000

700

-1562

548

494

10121255

249

-61

12571148

-22

-73

-24

-25-21-29 -24 -22 -21

-27 -29

-89-21 -21 04 -06 -35

-6125 14 25 21 -02

12531266

-123-16611301176

-90

477

-2284 -768-638-2000

1068

-453-243 -109

468

488

1234

516397 345

429359

485

431 407285

-62

-100-200 -100 -100 +400

11302018 8312018 5312018 2282018 11302017

Policy Guidelines


IRR Overview



IRR Overview


00

20

40

60

80

100

120

140

EVE Ratio (EVEEVA)

-250

-200

-150

-100

-50

00


0

20000

40000

60000

80000

100000

120000

140000


00

20

40

60

80

100

120

EVE Ratio (EVEEVA)

-700

-600

-500

-400

-300

-200

-100

00

100

200


0

20000

40000

60000

80000

100000

120000





Executive Summary





1682 1631 1595 1570 1572

793 775 802

$1624$10536306 301

$10493 $10415298

$8437$1510$1782 $1597

$10591296

$1585

$8861 $8849

1000500

17531083

1700

1638 16401033

16631052 10351057

$10531297

$8879$398$395

951 953

$8485$8203 $8352 $8223$8589

$500792 786

$8733$535$435

057 058

057946 922

955056058

11302018 8312018 5312018 2282018 11302017

Policy Guidelines





derivatives









Still Strong





income




Potential Strategy





1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563







Still Strong





income



Potential Strategy





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563


Case Study 2



Executive Summary






25001500

1500 422 430 336

55 691000 272 280 243 228 241

82 95 61

340

465100 00 57 73

14 19

14 19 89 111 96

10312018

7312018 4302018 1312018 10312017

32 38

305

Policy Guidelines









Net Cash Flow $5MM













Down 200BP

Up 200BP


Down 200BP

Up 200BP





1000

1500

800

-1083

456

390

11831381

285

-71

05

-32

-02

-06-09-20 -13 -08 -09

-15 03

-3318 36 31 14 35

-31

1270

-130 1140

414

-861 -2000

-198

374

424

443325 304

348301

380

352 307261

-31

-100-200


Executive Summary

10312018

7312018 4302018 1312018 10312017

Policy Guidelines







Equity

Other Liabilities

DDA

NOW

Savings

Utilization

Excess

8997

74303

132849 130877

Excess

244348

285

7025

7233165306

58546

65306

58546

464

244348

456

111499

49611

6386

64499

149136

244348

244348

390

Up 400BP 24M

113471

49611

64499

69529

49611

6386 6386

64499

Excess

64499

65306 65306

25284

90590

6386

Down 200BP Up 200BP

Excess


95212

49611

Base

50967

116273

17481958546 58546




Executive Summary

CAPITAL RATIOS







800 1551 1558 1536 1519 1532

8000 724 717 753

$845$4606323 342

$4572 $4546329

$3527$814$1010 $775

$4840312

$978

$4171 $3922

1200800

16321051

1639

1600 16161048

16181077 10581091

$4820306

$4214$148$92

898 886

$3493$3480 $3492 $3398$3807

$172758 742

$3863$207$67

070 071

070831 828

884070071

10312018

7312018 4302018 1312018 10312017

Policy Guidelines








Liquidity


IRR





Potential Strategy



Loan Floor


1 $524 $559 $552

2 $511 $589 $552

Total $1035 $1148 $1104


1 $186 $-87 $-87

2 $415 $-87 $-87

3 $415 $-88 $-88

Total $1016 $-262 $-262





Funded with cash

Liquidity




sensitive posture

Earnings





MBS Premium risk

Potential Strategy



Cash Extension


1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $325 $359 $174 $25

2 $503 $586 $157 $-129

3 $369 $486 $158 $-109

Total $1197 $1431 $489 $-213




90 days





Still Strong



sensitive posture




fall





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $248 $284 $200 $152

2 $428 $517 $222 $16

3 $411 $512 $218 $24

Total $1087 $1313 $640 $192



Investments

Loans

Deposits

Wholesale

Other

ALCO Action Items


Closing Thoughts


Different Lenses









Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response









Slide Number 24






Slide Number 30





Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends









Lending Strategies


Loan Pricing




Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts


Strategy Discussion

Loan Pricing




Executive Summary



Down 200BP

Up 200BP


Down 200BP

Up 200BP





-1000

700

-1562

548

494

10121255

249

-61

12571148

-22

-73

-24

-25-21-29 -24 -22 -21

-27 -29

-89-21 -21 04 -06 -35

-6125 14 25 21 -02

12531266

-123-16611301176

-90

477

-2284 -768-638-2000

1068

-453-243 -109

468

488

1234

516397 345

429359

485

431 407285

-62

-100-200 -100 -100 +400

11302018 8312018 5312018 2282018 11302017

Policy Guidelines


IRR Overview



IRR Overview


00

20

40

60

80

100

120

140

EVE Ratio (EVEEVA)

-250

-200

-150

-100

-50

00


0

20000

40000

60000

80000

100000

120000

140000


00

20

40

60

80

100

120

EVE Ratio (EVEEVA)

-700

-600

-500

-400

-300

-200

-100

00

100

200


0

20000

40000

60000

80000

100000

120000





Executive Summary





1682 1631 1595 1570 1572

793 775 802

$1624$10536306 301

$10493 $10415298

$8437$1510$1782 $1597

$10591296

$1585

$8861 $8849

1000500

17531083

1700

1638 16401033

16631052 10351057

$10531297

$8879$398$395

951 953

$8485$8203 $8352 $8223$8589

$500792 786

$8733$535$435

057 058

057946 922

955056058

11302018 8312018 5312018 2282018 11302017

Policy Guidelines





derivatives









Still Strong





income




Potential Strategy





1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563







Still Strong





income



Potential Strategy





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563


Case Study 2



Executive Summary






25001500

1500 422 430 336

55 691000 272 280 243 228 241

82 95 61

340

465100 00 57 73

14 19

14 19 89 111 96

10312018

7312018 4302018 1312018 10312017

32 38

305

Policy Guidelines









Net Cash Flow $5MM













Down 200BP

Up 200BP


Down 200BP

Up 200BP





1000

1500

800

-1083

456

390

11831381

285

-71

05

-32

-02

-06-09-20 -13 -08 -09

-15 03

-3318 36 31 14 35

-31

1270

-130 1140

414

-861 -2000

-198

374

424

443325 304

348301

380

352 307261

-31

-100-200


Executive Summary

10312018

7312018 4302018 1312018 10312017

Policy Guidelines







Equity

Other Liabilities

DDA

NOW

Savings

Utilization

Excess

8997

74303

132849 130877

Excess

244348

285

7025

7233165306

58546

65306

58546

464

244348

456

111499

49611

6386

64499

149136

244348

244348

390

Up 400BP 24M

113471

49611

64499

69529

49611

6386 6386

64499

Excess

64499

65306 65306

25284

90590

6386

Down 200BP Up 200BP

Excess


95212

49611

Base

50967

116273

17481958546 58546




Executive Summary

CAPITAL RATIOS







800 1551 1558 1536 1519 1532

8000 724 717 753

$845$4606323 342

$4572 $4546329

$3527$814$1010 $775

$4840312

$978

$4171 $3922

1200800

16321051

1639

1600 16161048

16181077 10581091

$4820306

$4214$148$92

898 886

$3493$3480 $3492 $3398$3807

$172758 742

$3863$207$67

070 071

070831 828

884070071

10312018

7312018 4302018 1312018 10312017

Policy Guidelines








Liquidity


IRR





Potential Strategy



Loan Floor


1 $524 $559 $552

2 $511 $589 $552

Total $1035 $1148 $1104


1 $186 $-87 $-87

2 $415 $-87 $-87

3 $415 $-88 $-88

Total $1016 $-262 $-262





Funded with cash

Liquidity




sensitive posture

Earnings





MBS Premium risk

Potential Strategy



Cash Extension


1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $325 $359 $174 $25

2 $503 $586 $157 $-129

3 $369 $486 $158 $-109

Total $1197 $1431 $489 $-213




90 days





Still Strong



sensitive posture




fall





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $248 $284 $200 $152

2 $428 $517 $222 $16

3 $411 $512 $218 $24

Total $1087 $1313 $640 $192



Investments

Loans

Deposits

Wholesale

Other

ALCO Action Items


Closing Thoughts


Different Lenses









Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response









Slide Number 24






Slide Number 30





Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends









Lending Strategies


Loan Pricing




Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts



Executive Summary



Down 200BP

Up 200BP


Down 200BP

Up 200BP





-1000

700

-1562

548

494

10121255

249

-61

12571148

-22

-73

-24

-25-21-29 -24 -22 -21

-27 -29

-89-21 -21 04 -06 -35

-6125 14 25 21 -02

12531266

-123-16611301176

-90

477

-2284 -768-638-2000

1068

-453-243 -109

468

488

1234

516397 345

429359

485

431 407285

-62

-100-200 -100 -100 +400

11302018 8312018 5312018 2282018 11302017

Policy Guidelines


IRR Overview



IRR Overview


00

20

40

60

80

100

120

140

EVE Ratio (EVEEVA)

-250

-200

-150

-100

-50

00


0

20000

40000

60000

80000

100000

120000

140000


00

20

40

60

80

100

120

EVE Ratio (EVEEVA)

-700

-600

-500

-400

-300

-200

-100

00

100

200


0

20000

40000

60000

80000

100000

120000





Executive Summary





1682 1631 1595 1570 1572

793 775 802

$1624$10536306 301

$10493 $10415298

$8437$1510$1782 $1597

$10591296

$1585

$8861 $8849

1000500

17531083

1700

1638 16401033

16631052 10351057

$10531297

$8879$398$395

951 953

$8485$8203 $8352 $8223$8589

$500792 786

$8733$535$435

057 058

057946 922

955056058

11302018 8312018 5312018 2282018 11302017

Policy Guidelines





derivatives









Still Strong





income




Potential Strategy





1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563







Still Strong





income



Potential Strategy





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563


Case Study 2



Executive Summary






25001500

1500 422 430 336

55 691000 272 280 243 228 241

82 95 61

340

465100 00 57 73

14 19

14 19 89 111 96

10312018

7312018 4302018 1312018 10312017

32 38

305

Policy Guidelines









Net Cash Flow $5MM













Down 200BP

Up 200BP


Down 200BP

Up 200BP





1000

1500

800

-1083

456

390

11831381

285

-71

05

-32

-02

-06-09-20 -13 -08 -09

-15 03

-3318 36 31 14 35

-31

1270

-130 1140

414

-861 -2000

-198

374

424

443325 304

348301

380

352 307261

-31

-100-200


Executive Summary

10312018

7312018 4302018 1312018 10312017

Policy Guidelines







Equity

Other Liabilities

DDA

NOW

Savings

Utilization

Excess

8997

74303

132849 130877

Excess

244348

285

7025

7233165306

58546

65306

58546

464

244348

456

111499

49611

6386

64499

149136

244348

244348

390

Up 400BP 24M

113471

49611

64499

69529

49611

6386 6386

64499

Excess

64499

65306 65306

25284

90590

6386

Down 200BP Up 200BP

Excess


95212

49611

Base

50967

116273

17481958546 58546




Executive Summary

CAPITAL RATIOS







800 1551 1558 1536 1519 1532

8000 724 717 753

$845$4606323 342

$4572 $4546329

$3527$814$1010 $775

$4840312

$978

$4171 $3922

1200800

16321051

1639

1600 16161048

16181077 10581091

$4820306

$4214$148$92

898 886

$3493$3480 $3492 $3398$3807

$172758 742

$3863$207$67

070 071

070831 828

884070071

10312018

7312018 4302018 1312018 10312017

Policy Guidelines








Liquidity


IRR





Potential Strategy



Loan Floor


1 $524 $559 $552

2 $511 $589 $552

Total $1035 $1148 $1104


1 $186 $-87 $-87

2 $415 $-87 $-87

3 $415 $-88 $-88

Total $1016 $-262 $-262





Funded with cash

Liquidity




sensitive posture

Earnings





MBS Premium risk

Potential Strategy



Cash Extension


1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $325 $359 $174 $25

2 $503 $586 $157 $-129

3 $369 $486 $158 $-109

Total $1197 $1431 $489 $-213




90 days





Still Strong



sensitive posture




fall





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $248 $284 $200 $152

2 $428 $517 $222 $16

3 $411 $512 $218 $24

Total $1087 $1313 $640 $192



Investments

Loans

Deposits

Wholesale

Other

ALCO Action Items


Closing Thoughts


Different Lenses









Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response









Slide Number 24






Slide Number 30





Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends









Lending Strategies


Loan Pricing




Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts


IRR Overview



IRR Overview


00

20

40

60

80

100

120

140

EVE Ratio (EVEEVA)

-250

-200

-150

-100

-50

00


0

20000

40000

60000

80000

100000

120000

140000


00

20

40

60

80

100

120

EVE Ratio (EVEEVA)

-700

-600

-500

-400

-300

-200

-100

00

100

200


0

20000

40000

60000

80000

100000

120000





Executive Summary





1682 1631 1595 1570 1572

793 775 802

$1624$10536306 301

$10493 $10415298

$8437$1510$1782 $1597

$10591296

$1585

$8861 $8849

1000500

17531083

1700

1638 16401033

16631052 10351057

$10531297

$8879$398$395

951 953

$8485$8203 $8352 $8223$8589

$500792 786

$8733$535$435

057 058

057946 922

955056058

11302018 8312018 5312018 2282018 11302017

Policy Guidelines





derivatives









Still Strong





income




Potential Strategy





1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563







Still Strong





income



Potential Strategy





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563


Case Study 2



Executive Summary






25001500

1500 422 430 336

55 691000 272 280 243 228 241

82 95 61

340

465100 00 57 73

14 19

14 19 89 111 96

10312018

7312018 4302018 1312018 10312017

32 38

305

Policy Guidelines









Net Cash Flow $5MM













Down 200BP

Up 200BP


Down 200BP

Up 200BP





1000

1500

800

-1083

456

390

11831381

285

-71

05

-32

-02

-06-09-20 -13 -08 -09

-15 03

-3318 36 31 14 35

-31

1270

-130 1140

414

-861 -2000

-198

374

424

443325 304

348301

380

352 307261

-31

-100-200


Executive Summary

10312018

7312018 4302018 1312018 10312017

Policy Guidelines







Equity

Other Liabilities

DDA

NOW

Savings

Utilization

Excess

8997

74303

132849 130877

Excess

244348

285

7025

7233165306

58546

65306

58546

464

244348

456

111499

49611

6386

64499

149136

244348

244348

390

Up 400BP 24M

113471

49611

64499

69529

49611

6386 6386

64499

Excess

64499

65306 65306

25284

90590

6386

Down 200BP Up 200BP

Excess


95212

49611

Base

50967

116273

17481958546 58546




Executive Summary

CAPITAL RATIOS







800 1551 1558 1536 1519 1532

8000 724 717 753

$845$4606323 342

$4572 $4546329

$3527$814$1010 $775

$4840312

$978

$4171 $3922

1200800

16321051

1639

1600 16161048

16181077 10581091

$4820306

$4214$148$92

898 886

$3493$3480 $3492 $3398$3807

$172758 742

$3863$207$67

070 071

070831 828

884070071

10312018

7312018 4302018 1312018 10312017

Policy Guidelines








Liquidity


IRR





Potential Strategy



Loan Floor


1 $524 $559 $552

2 $511 $589 $552

Total $1035 $1148 $1104


1 $186 $-87 $-87

2 $415 $-87 $-87

3 $415 $-88 $-88

Total $1016 $-262 $-262





Funded with cash

Liquidity




sensitive posture

Earnings





MBS Premium risk

Potential Strategy



Cash Extension


1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $325 $359 $174 $25

2 $503 $586 $157 $-129

3 $369 $486 $158 $-109

Total $1197 $1431 $489 $-213




90 days





Still Strong



sensitive posture




fall





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $248 $284 $200 $152

2 $428 $517 $222 $16

3 $411 $512 $218 $24

Total $1087 $1313 $640 $192



Investments

Loans

Deposits

Wholesale

Other

ALCO Action Items


Closing Thoughts


Different Lenses









Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response









Slide Number 24






Slide Number 30





Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends









Lending Strategies


Loan Pricing




Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts


IRR Overview


00

20

40

60

80

100

120

140

EVE Ratio (EVEEVA)

-250

-200

-150

-100

-50

00


0

20000

40000

60000

80000

100000

120000

140000


00

20

40

60

80

100

120

EVE Ratio (EVEEVA)

-700

-600

-500

-400

-300

-200

-100

00

100

200


0

20000

40000

60000

80000

100000

120000





Executive Summary





1682 1631 1595 1570 1572

793 775 802

$1624$10536306 301

$10493 $10415298

$8437$1510$1782 $1597

$10591296

$1585

$8861 $8849

1000500

17531083

1700

1638 16401033

16631052 10351057

$10531297

$8879$398$395

951 953

$8485$8203 $8352 $8223$8589

$500792 786

$8733$535$435

057 058

057946 922

955056058

11302018 8312018 5312018 2282018 11302017

Policy Guidelines





derivatives









Still Strong





income




Potential Strategy





1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563







Still Strong





income



Potential Strategy





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563


Case Study 2



Executive Summary






25001500

1500 422 430 336

55 691000 272 280 243 228 241

82 95 61

340

465100 00 57 73

14 19

14 19 89 111 96

10312018

7312018 4302018 1312018 10312017

32 38

305

Policy Guidelines









Net Cash Flow $5MM













Down 200BP

Up 200BP


Down 200BP

Up 200BP





1000

1500

800

-1083

456

390

11831381

285

-71

05

-32

-02

-06-09-20 -13 -08 -09

-15 03

-3318 36 31 14 35

-31

1270

-130 1140

414

-861 -2000

-198

374

424

443325 304

348301

380

352 307261

-31

-100-200


Executive Summary

10312018

7312018 4302018 1312018 10312017

Policy Guidelines







Equity

Other Liabilities

DDA

NOW

Savings

Utilization

Excess

8997

74303

132849 130877

Excess

244348

285

7025

7233165306

58546

65306

58546

464

244348

456

111499

49611

6386

64499

149136

244348

244348

390

Up 400BP 24M

113471

49611

64499

69529

49611

6386 6386

64499

Excess

64499

65306 65306

25284

90590

6386

Down 200BP Up 200BP

Excess


95212

49611

Base

50967

116273

17481958546 58546




Executive Summary

CAPITAL RATIOS







800 1551 1558 1536 1519 1532

8000 724 717 753

$845$4606323 342

$4572 $4546329

$3527$814$1010 $775

$4840312

$978

$4171 $3922

1200800

16321051

1639

1600 16161048

16181077 10581091

$4820306

$4214$148$92

898 886

$3493$3480 $3492 $3398$3807

$172758 742

$3863$207$67

070 071

070831 828

884070071

10312018

7312018 4302018 1312018 10312017

Policy Guidelines








Liquidity


IRR





Potential Strategy



Loan Floor


1 $524 $559 $552

2 $511 $589 $552

Total $1035 $1148 $1104


1 $186 $-87 $-87

2 $415 $-87 $-87

3 $415 $-88 $-88

Total $1016 $-262 $-262





Funded with cash

Liquidity




sensitive posture

Earnings





MBS Premium risk

Potential Strategy



Cash Extension


1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $325 $359 $174 $25

2 $503 $586 $157 $-129

3 $369 $486 $158 $-109

Total $1197 $1431 $489 $-213




90 days





Still Strong



sensitive posture




fall





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $248 $284 $200 $152

2 $428 $517 $222 $16

3 $411 $512 $218 $24

Total $1087 $1313 $640 $192



Investments

Loans

Deposits

Wholesale

Other

ALCO Action Items


Closing Thoughts


Different Lenses









Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response









Slide Number 24






Slide Number 30





Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends









Lending Strategies


Loan Pricing




Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts



Executive Summary





1682 1631 1595 1570 1572

793 775 802

$1624$10536306 301

$10493 $10415298

$8437$1510$1782 $1597

$10591296

$1585

$8861 $8849

1000500

17531083

1700

1638 16401033

16631052 10351057

$10531297

$8879$398$395

951 953

$8485$8203 $8352 $8223$8589

$500792 786

$8733$535$435

057 058

057946 922

955056058

11302018 8312018 5312018 2282018 11302017

Policy Guidelines





derivatives









Still Strong





income




Potential Strategy





1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563







Still Strong





income



Potential Strategy





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563


Case Study 2



Executive Summary






25001500

1500 422 430 336

55 691000 272 280 243 228 241

82 95 61

340

465100 00 57 73

14 19

14 19 89 111 96

10312018

7312018 4302018 1312018 10312017

32 38

305

Policy Guidelines









Net Cash Flow $5MM













Down 200BP

Up 200BP


Down 200BP

Up 200BP





1000

1500

800

-1083

456

390

11831381

285

-71

05

-32

-02

-06-09-20 -13 -08 -09

-15 03

-3318 36 31 14 35

-31

1270

-130 1140

414

-861 -2000

-198

374

424

443325 304

348301

380

352 307261

-31

-100-200


Executive Summary

10312018

7312018 4302018 1312018 10312017

Policy Guidelines







Equity

Other Liabilities

DDA

NOW

Savings

Utilization

Excess

8997

74303

132849 130877

Excess

244348

285

7025

7233165306

58546

65306

58546

464

244348

456

111499

49611

6386

64499

149136

244348

244348

390

Up 400BP 24M

113471

49611

64499

69529

49611

6386 6386

64499

Excess

64499

65306 65306

25284

90590

6386

Down 200BP Up 200BP

Excess


95212

49611

Base

50967

116273

17481958546 58546




Executive Summary

CAPITAL RATIOS







800 1551 1558 1536 1519 1532

8000 724 717 753

$845$4606323 342

$4572 $4546329

$3527$814$1010 $775

$4840312

$978

$4171 $3922

1200800

16321051

1639

1600 16161048

16181077 10581091

$4820306

$4214$148$92

898 886

$3493$3480 $3492 $3398$3807

$172758 742

$3863$207$67

070 071

070831 828

884070071

10312018

7312018 4302018 1312018 10312017

Policy Guidelines








Liquidity


IRR





Potential Strategy



Loan Floor


1 $524 $559 $552

2 $511 $589 $552

Total $1035 $1148 $1104


1 $186 $-87 $-87

2 $415 $-87 $-87

3 $415 $-88 $-88

Total $1016 $-262 $-262





Funded with cash

Liquidity




sensitive posture

Earnings





MBS Premium risk

Potential Strategy



Cash Extension


1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $325 $359 $174 $25

2 $503 $586 $157 $-129

3 $369 $486 $158 $-109

Total $1197 $1431 $489 $-213




90 days





Still Strong



sensitive posture




fall





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $248 $284 $200 $152

2 $428 $517 $222 $16

3 $411 $512 $218 $24

Total $1087 $1313 $640 $192



Investments

Loans

Deposits

Wholesale

Other

ALCO Action Items


Closing Thoughts


Different Lenses









Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response









Slide Number 24






Slide Number 30





Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends









Lending Strategies


Loan Pricing




Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts





derivatives









Still Strong





income




Potential Strategy





1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563







Still Strong





income



Potential Strategy





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563


Case Study 2



Executive Summary






25001500

1500 422 430 336

55 691000 272 280 243 228 241

82 95 61

340

465100 00 57 73

14 19

14 19 89 111 96

10312018

7312018 4302018 1312018 10312017

32 38

305

Policy Guidelines









Net Cash Flow $5MM













Down 200BP

Up 200BP


Down 200BP

Up 200BP





1000

1500

800

-1083

456

390

11831381

285

-71

05

-32

-02

-06-09-20 -13 -08 -09

-15 03

-3318 36 31 14 35

-31

1270

-130 1140

414

-861 -2000

-198

374

424

443325 304

348301

380

352 307261

-31

-100-200


Executive Summary

10312018

7312018 4302018 1312018 10312017

Policy Guidelines







Equity

Other Liabilities

DDA

NOW

Savings

Utilization

Excess

8997

74303

132849 130877

Excess

244348

285

7025

7233165306

58546

65306

58546

464

244348

456

111499

49611

6386

64499

149136

244348

244348

390

Up 400BP 24M

113471

49611

64499

69529

49611

6386 6386

64499

Excess

64499

65306 65306

25284

90590

6386

Down 200BP Up 200BP

Excess


95212

49611

Base

50967

116273

17481958546 58546




Executive Summary

CAPITAL RATIOS







800 1551 1558 1536 1519 1532

8000 724 717 753

$845$4606323 342

$4572 $4546329

$3527$814$1010 $775

$4840312

$978

$4171 $3922

1200800

16321051

1639

1600 16161048

16181077 10581091

$4820306

$4214$148$92

898 886

$3493$3480 $3492 $3398$3807

$172758 742

$3863$207$67

070 071

070831 828

884070071

10312018

7312018 4302018 1312018 10312017

Policy Guidelines








Liquidity


IRR





Potential Strategy



Loan Floor


1 $524 $559 $552

2 $511 $589 $552

Total $1035 $1148 $1104


1 $186 $-87 $-87

2 $415 $-87 $-87

3 $415 $-88 $-88

Total $1016 $-262 $-262





Funded with cash

Liquidity




sensitive posture

Earnings





MBS Premium risk

Potential Strategy



Cash Extension


1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $325 $359 $174 $25

2 $503 $586 $157 $-129

3 $369 $486 $158 $-109

Total $1197 $1431 $489 $-213




90 days





Still Strong



sensitive posture




fall





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $248 $284 $200 $152

2 $428 $517 $222 $16

3 $411 $512 $218 $24

Total $1087 $1313 $640 $192



Investments

Loans

Deposits

Wholesale

Other

ALCO Action Items


Closing Thoughts


Different Lenses









Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response









Slide Number 24






Slide Number 30





Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends









Lending Strategies


Loan Pricing




Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts







Still Strong





income




Potential Strategy





1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563







Still Strong





income



Potential Strategy





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563


Case Study 2



Executive Summary






25001500

1500 422 430 336

55 691000 272 280 243 228 241

82 95 61

340

465100 00 57 73

14 19

14 19 89 111 96

10312018

7312018 4302018 1312018 10312017

32 38

305

Policy Guidelines









Net Cash Flow $5MM













Down 200BP

Up 200BP


Down 200BP

Up 200BP





1000

1500

800

-1083

456

390

11831381

285

-71

05

-32

-02

-06-09-20 -13 -08 -09

-15 03

-3318 36 31 14 35

-31

1270

-130 1140

414

-861 -2000

-198

374

424

443325 304

348301

380

352 307261

-31

-100-200


Executive Summary

10312018

7312018 4302018 1312018 10312017

Policy Guidelines







Equity

Other Liabilities

DDA

NOW

Savings

Utilization

Excess

8997

74303

132849 130877

Excess

244348

285

7025

7233165306

58546

65306

58546

464

244348

456

111499

49611

6386

64499

149136

244348

244348

390

Up 400BP 24M

113471

49611

64499

69529

49611

6386 6386

64499

Excess

64499

65306 65306

25284

90590

6386

Down 200BP Up 200BP

Excess


95212

49611

Base

50967

116273

17481958546 58546




Executive Summary

CAPITAL RATIOS







800 1551 1558 1536 1519 1532

8000 724 717 753

$845$4606323 342

$4572 $4546329

$3527$814$1010 $775

$4840312

$978

$4171 $3922

1200800

16321051

1639

1600 16161048

16181077 10581091

$4820306

$4214$148$92

898 886

$3493$3480 $3492 $3398$3807

$172758 742

$3863$207$67

070 071

070831 828

884070071

10312018

7312018 4302018 1312018 10312017

Policy Guidelines








Liquidity


IRR





Potential Strategy



Loan Floor


1 $524 $559 $552

2 $511 $589 $552

Total $1035 $1148 $1104


1 $186 $-87 $-87

2 $415 $-87 $-87

3 $415 $-88 $-88

Total $1016 $-262 $-262





Funded with cash

Liquidity




sensitive posture

Earnings





MBS Premium risk

Potential Strategy



Cash Extension


1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $325 $359 $174 $25

2 $503 $586 $157 $-129

3 $369 $486 $158 $-109

Total $1197 $1431 $489 $-213




90 days





Still Strong



sensitive posture




fall





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $248 $284 $200 $152

2 $428 $517 $222 $16

3 $411 $512 $218 $24

Total $1087 $1313 $640 $192



Investments

Loans

Deposits

Wholesale

Other

ALCO Action Items


Closing Thoughts


Different Lenses









Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response









Slide Number 24






Slide Number 30





Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends









Lending Strategies


Loan Pricing




Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts




1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563







Still Strong





income



Potential Strategy





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563


Case Study 2



Executive Summary






25001500

1500 422 430 336

55 691000 272 280 243 228 241

82 95 61

340

465100 00 57 73

14 19

14 19 89 111 96

10312018

7312018 4302018 1312018 10312017

32 38

305

Policy Guidelines









Net Cash Flow $5MM













Down 200BP

Up 200BP


Down 200BP

Up 200BP





1000

1500

800

-1083

456

390

11831381

285

-71

05

-32

-02

-06-09-20 -13 -08 -09

-15 03

-3318 36 31 14 35

-31

1270

-130 1140

414

-861 -2000

-198

374

424

443325 304

348301

380

352 307261

-31

-100-200


Executive Summary

10312018

7312018 4302018 1312018 10312017

Policy Guidelines







Equity

Other Liabilities

DDA

NOW

Savings

Utilization

Excess

8997

74303

132849 130877

Excess

244348

285

7025

7233165306

58546

65306

58546

464

244348

456

111499

49611

6386

64499

149136

244348

244348

390

Up 400BP 24M

113471

49611

64499

69529

49611

6386 6386

64499

Excess

64499

65306 65306

25284

90590

6386

Down 200BP Up 200BP

Excess


95212

49611

Base

50967

116273

17481958546 58546




Executive Summary

CAPITAL RATIOS







800 1551 1558 1536 1519 1532

8000 724 717 753

$845$4606323 342

$4572 $4546329

$3527$814$1010 $775

$4840312

$978

$4171 $3922

1200800

16321051

1639

1600 16161048

16181077 10581091

$4820306

$4214$148$92

898 886

$3493$3480 $3492 $3398$3807

$172758 742

$3863$207$67

070 071

070831 828

884070071

10312018

7312018 4302018 1312018 10312017

Policy Guidelines








Liquidity


IRR





Potential Strategy



Loan Floor


1 $524 $559 $552

2 $511 $589 $552

Total $1035 $1148 $1104


1 $186 $-87 $-87

2 $415 $-87 $-87

3 $415 $-88 $-88

Total $1016 $-262 $-262





Funded with cash

Liquidity




sensitive posture

Earnings





MBS Premium risk

Potential Strategy



Cash Extension


1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $325 $359 $174 $25

2 $503 $586 $157 $-129

3 $369 $486 $158 $-109

Total $1197 $1431 $489 $-213




90 days





Still Strong



sensitive posture




fall





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $248 $284 $200 $152

2 $428 $517 $222 $16

3 $411 $512 $218 $24

Total $1087 $1313 $640 $192



Investments

Loans

Deposits

Wholesale

Other

ALCO Action Items


Closing Thoughts


Different Lenses









Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response









Slide Number 24






Slide Number 30





Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends









Lending Strategies


Loan Pricing




Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts







Still Strong





income



Potential Strategy





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563


Case Study 2



Executive Summary






25001500

1500 422 430 336

55 691000 272 280 243 228 241

82 95 61

340

465100 00 57 73

14 19

14 19 89 111 96

10312018

7312018 4302018 1312018 10312017

32 38

305

Policy Guidelines









Net Cash Flow $5MM













Down 200BP

Up 200BP


Down 200BP

Up 200BP





1000

1500

800

-1083

456

390

11831381

285

-71

05

-32

-02

-06-09-20 -13 -08 -09

-15 03

-3318 36 31 14 35

-31

1270

-130 1140

414

-861 -2000

-198

374

424

443325 304

348301

380

352 307261

-31

-100-200


Executive Summary

10312018

7312018 4302018 1312018 10312017

Policy Guidelines







Equity

Other Liabilities

DDA

NOW

Savings

Utilization

Excess

8997

74303

132849 130877

Excess

244348

285

7025

7233165306

58546

65306

58546

464

244348

456

111499

49611

6386

64499

149136

244348

244348

390

Up 400BP 24M

113471

49611

64499

69529

49611

6386 6386

64499

Excess

64499

65306 65306

25284

90590

6386

Down 200BP Up 200BP

Excess


95212

49611

Base

50967

116273

17481958546 58546




Executive Summary

CAPITAL RATIOS







800 1551 1558 1536 1519 1532

8000 724 717 753

$845$4606323 342

$4572 $4546329

$3527$814$1010 $775

$4840312

$978

$4171 $3922

1200800

16321051

1639

1600 16161048

16181077 10581091

$4820306

$4214$148$92

898 886

$3493$3480 $3492 $3398$3807

$172758 742

$3863$207$67

070 071

070831 828

884070071

10312018

7312018 4302018 1312018 10312017

Policy Guidelines








Liquidity


IRR





Potential Strategy



Loan Floor


1 $524 $559 $552

2 $511 $589 $552

Total $1035 $1148 $1104


1 $186 $-87 $-87

2 $415 $-87 $-87

3 $415 $-88 $-88

Total $1016 $-262 $-262





Funded with cash

Liquidity




sensitive posture

Earnings





MBS Premium risk

Potential Strategy



Cash Extension


1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $325 $359 $174 $25

2 $503 $586 $157 $-129

3 $369 $486 $158 $-109

Total $1197 $1431 $489 $-213




90 days





Still Strong



sensitive posture




fall





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $248 $284 $200 $152

2 $428 $517 $222 $16

3 $411 $512 $218 $24

Total $1087 $1313 $640 $192



Investments

Loans

Deposits

Wholesale

Other

ALCO Action Items


Closing Thoughts


Different Lenses









Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response









Slide Number 24






Slide Number 30





Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends









Lending Strategies


Loan Pricing




Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts




1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $795 $852 $552 $309

2 $1011 $1129 $552 $102

3 $970 $1095 $552 $152

Total $2776 $3076 $1656 $563


Case Study 2



Executive Summary






25001500

1500 422 430 336

55 691000 272 280 243 228 241

82 95 61

340

465100 00 57 73

14 19

14 19 89 111 96

10312018

7312018 4302018 1312018 10312017

32 38

305

Policy Guidelines









Net Cash Flow $5MM













Down 200BP

Up 200BP


Down 200BP

Up 200BP





1000

1500

800

-1083

456

390

11831381

285

-71

05

-32

-02

-06-09-20 -13 -08 -09

-15 03

-3318 36 31 14 35

-31

1270

-130 1140

414

-861 -2000

-198

374

424

443325 304

348301

380

352 307261

-31

-100-200


Executive Summary

10312018

7312018 4302018 1312018 10312017

Policy Guidelines







Equity

Other Liabilities

DDA

NOW

Savings

Utilization

Excess

8997

74303

132849 130877

Excess

244348

285

7025

7233165306

58546

65306

58546

464

244348

456

111499

49611

6386

64499

149136

244348

244348

390

Up 400BP 24M

113471

49611

64499

69529

49611

6386 6386

64499

Excess

64499

65306 65306

25284

90590

6386

Down 200BP Up 200BP

Excess


95212

49611

Base

50967

116273

17481958546 58546




Executive Summary

CAPITAL RATIOS







800 1551 1558 1536 1519 1532

8000 724 717 753

$845$4606323 342

$4572 $4546329

$3527$814$1010 $775

$4840312

$978

$4171 $3922

1200800

16321051

1639

1600 16161048

16181077 10581091

$4820306

$4214$148$92

898 886

$3493$3480 $3492 $3398$3807

$172758 742

$3863$207$67

070 071

070831 828

884070071

10312018

7312018 4302018 1312018 10312017

Policy Guidelines








Liquidity


IRR





Potential Strategy



Loan Floor


1 $524 $559 $552

2 $511 $589 $552

Total $1035 $1148 $1104


1 $186 $-87 $-87

2 $415 $-87 $-87

3 $415 $-88 $-88

Total $1016 $-262 $-262





Funded with cash

Liquidity




sensitive posture

Earnings





MBS Premium risk

Potential Strategy



Cash Extension


1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $325 $359 $174 $25

2 $503 $586 $157 $-129

3 $369 $486 $158 $-109

Total $1197 $1431 $489 $-213




90 days





Still Strong



sensitive posture




fall





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $248 $284 $200 $152

2 $428 $517 $222 $16

3 $411 $512 $218 $24

Total $1087 $1313 $640 $192



Investments

Loans

Deposits

Wholesale

Other

ALCO Action Items


Closing Thoughts


Different Lenses









Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response









Slide Number 24






Slide Number 30





Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends









Lending Strategies


Loan Pricing




Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts


Case Study 2



Executive Summary






25001500

1500 422 430 336

55 691000 272 280 243 228 241

82 95 61

340

465100 00 57 73

14 19

14 19 89 111 96

10312018

7312018 4302018 1312018 10312017

32 38

305

Policy Guidelines









Net Cash Flow $5MM













Down 200BP

Up 200BP


Down 200BP

Up 200BP





1000

1500

800

-1083

456

390

11831381

285

-71

05

-32

-02

-06-09-20 -13 -08 -09

-15 03

-3318 36 31 14 35

-31

1270

-130 1140

414

-861 -2000

-198

374

424

443325 304

348301

380

352 307261

-31

-100-200


Executive Summary

10312018

7312018 4302018 1312018 10312017

Policy Guidelines







Equity

Other Liabilities

DDA

NOW

Savings

Utilization

Excess

8997

74303

132849 130877

Excess

244348

285

7025

7233165306

58546

65306

58546

464

244348

456

111499

49611

6386

64499

149136

244348

244348

390

Up 400BP 24M

113471

49611

64499

69529

49611

6386 6386

64499

Excess

64499

65306 65306

25284

90590

6386

Down 200BP Up 200BP

Excess


95212

49611

Base

50967

116273

17481958546 58546




Executive Summary

CAPITAL RATIOS







800 1551 1558 1536 1519 1532

8000 724 717 753

$845$4606323 342

$4572 $4546329

$3527$814$1010 $775

$4840312

$978

$4171 $3922

1200800

16321051

1639

1600 16161048

16181077 10581091

$4820306

$4214$148$92

898 886

$3493$3480 $3492 $3398$3807

$172758 742

$3863$207$67

070 071

070831 828

884070071

10312018

7312018 4302018 1312018 10312017

Policy Guidelines








Liquidity


IRR





Potential Strategy



Loan Floor


1 $524 $559 $552

2 $511 $589 $552

Total $1035 $1148 $1104


1 $186 $-87 $-87

2 $415 $-87 $-87

3 $415 $-88 $-88

Total $1016 $-262 $-262





Funded with cash

Liquidity




sensitive posture

Earnings





MBS Premium risk

Potential Strategy



Cash Extension


1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $325 $359 $174 $25

2 $503 $586 $157 $-129

3 $369 $486 $158 $-109

Total $1197 $1431 $489 $-213




90 days





Still Strong



sensitive posture




fall





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $248 $284 $200 $152

2 $428 $517 $222 $16

3 $411 $512 $218 $24

Total $1087 $1313 $640 $192



Investments

Loans

Deposits

Wholesale

Other

ALCO Action Items


Closing Thoughts


Different Lenses









Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response









Slide Number 24






Slide Number 30





Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends









Lending Strategies


Loan Pricing




Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts



Executive Summary






25001500

1500 422 430 336

55 691000 272 280 243 228 241

82 95 61

340

465100 00 57 73

14 19

14 19 89 111 96

10312018

7312018 4302018 1312018 10312017

32 38

305

Policy Guidelines









Net Cash Flow $5MM













Down 200BP

Up 200BP


Down 200BP

Up 200BP





1000

1500

800

-1083

456

390

11831381

285

-71

05

-32

-02

-06-09-20 -13 -08 -09

-15 03

-3318 36 31 14 35

-31

1270

-130 1140

414

-861 -2000

-198

374

424

443325 304

348301

380

352 307261

-31

-100-200


Executive Summary

10312018

7312018 4302018 1312018 10312017

Policy Guidelines







Equity

Other Liabilities

DDA

NOW

Savings

Utilization

Excess

8997

74303

132849 130877

Excess

244348

285

7025

7233165306

58546

65306

58546

464

244348

456

111499

49611

6386

64499

149136

244348

244348

390

Up 400BP 24M

113471

49611

64499

69529

49611

6386 6386

64499

Excess

64499

65306 65306

25284

90590

6386

Down 200BP Up 200BP

Excess


95212

49611

Base

50967

116273

17481958546 58546




Executive Summary

CAPITAL RATIOS







800 1551 1558 1536 1519 1532

8000 724 717 753

$845$4606323 342

$4572 $4546329

$3527$814$1010 $775

$4840312

$978

$4171 $3922

1200800

16321051

1639

1600 16161048

16181077 10581091

$4820306

$4214$148$92

898 886

$3493$3480 $3492 $3398$3807

$172758 742

$3863$207$67

070 071

070831 828

884070071

10312018

7312018 4302018 1312018 10312017

Policy Guidelines








Liquidity


IRR





Potential Strategy



Loan Floor


1 $524 $559 $552

2 $511 $589 $552

Total $1035 $1148 $1104


1 $186 $-87 $-87

2 $415 $-87 $-87

3 $415 $-88 $-88

Total $1016 $-262 $-262





Funded with cash

Liquidity




sensitive posture

Earnings





MBS Premium risk

Potential Strategy



Cash Extension


1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $325 $359 $174 $25

2 $503 $586 $157 $-129

3 $369 $486 $158 $-109

Total $1197 $1431 $489 $-213




90 days





Still Strong



sensitive posture




fall





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $248 $284 $200 $152

2 $428 $517 $222 $16

3 $411 $512 $218 $24

Total $1087 $1313 $640 $192



Investments

Loans

Deposits

Wholesale

Other

ALCO Action Items


Closing Thoughts


Different Lenses









Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response









Slide Number 24






Slide Number 30





Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends









Lending Strategies


Loan Pricing




Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts









Net Cash Flow $5MM













Down 200BP

Up 200BP


Down 200BP

Up 200BP





1000

1500

800

-1083

456

390

11831381

285

-71

05

-32

-02

-06-09-20 -13 -08 -09

-15 03

-3318 36 31 14 35

-31

1270

-130 1140

414

-861 -2000

-198

374

424

443325 304

348301

380

352 307261

-31

-100-200


Executive Summary

10312018

7312018 4302018 1312018 10312017

Policy Guidelines







Equity

Other Liabilities

DDA

NOW

Savings

Utilization

Excess

8997

74303

132849 130877

Excess

244348

285

7025

7233165306

58546

65306

58546

464

244348

456

111499

49611

6386

64499

149136

244348

244348

390

Up 400BP 24M

113471

49611

64499

69529

49611

6386 6386

64499

Excess

64499

65306 65306

25284

90590

6386

Down 200BP Up 200BP

Excess


95212

49611

Base

50967

116273

17481958546 58546




Executive Summary

CAPITAL RATIOS







800 1551 1558 1536 1519 1532

8000 724 717 753

$845$4606323 342

$4572 $4546329

$3527$814$1010 $775

$4840312

$978

$4171 $3922

1200800

16321051

1639

1600 16161048

16181077 10581091

$4820306

$4214$148$92

898 886

$3493$3480 $3492 $3398$3807

$172758 742

$3863$207$67

070 071

070831 828

884070071

10312018

7312018 4302018 1312018 10312017

Policy Guidelines








Liquidity


IRR





Potential Strategy



Loan Floor


1 $524 $559 $552

2 $511 $589 $552

Total $1035 $1148 $1104


1 $186 $-87 $-87

2 $415 $-87 $-87

3 $415 $-88 $-88

Total $1016 $-262 $-262





Funded with cash

Liquidity




sensitive posture

Earnings





MBS Premium risk

Potential Strategy



Cash Extension


1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $325 $359 $174 $25

2 $503 $586 $157 $-129

3 $369 $486 $158 $-109

Total $1197 $1431 $489 $-213




90 days





Still Strong



sensitive posture




fall





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $248 $284 $200 $152

2 $428 $517 $222 $16

3 $411 $512 $218 $24

Total $1087 $1313 $640 $192



Investments

Loans

Deposits

Wholesale

Other

ALCO Action Items


Closing Thoughts


Different Lenses









Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response









Slide Number 24






Slide Number 30





Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends









Lending Strategies


Loan Pricing




Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts









Down 200BP

Up 200BP


Down 200BP

Up 200BP





1000

1500

800

-1083

456

390

11831381

285

-71

05

-32

-02

-06-09-20 -13 -08 -09

-15 03

-3318 36 31 14 35

-31

1270

-130 1140

414

-861 -2000

-198

374

424

443325 304

348301

380

352 307261

-31

-100-200


Executive Summary

10312018

7312018 4302018 1312018 10312017

Policy Guidelines







Equity

Other Liabilities

DDA

NOW

Savings

Utilization

Excess

8997

74303

132849 130877

Excess

244348

285

7025

7233165306

58546

65306

58546

464

244348

456

111499

49611

6386

64499

149136

244348

244348

390

Up 400BP 24M

113471

49611

64499

69529

49611

6386 6386

64499

Excess

64499

65306 65306

25284

90590

6386

Down 200BP Up 200BP

Excess


95212

49611

Base

50967

116273

17481958546 58546




Executive Summary

CAPITAL RATIOS







800 1551 1558 1536 1519 1532

8000 724 717 753

$845$4606323 342

$4572 $4546329

$3527$814$1010 $775

$4840312

$978

$4171 $3922

1200800

16321051

1639

1600 16161048

16181077 10581091

$4820306

$4214$148$92

898 886

$3493$3480 $3492 $3398$3807

$172758 742

$3863$207$67

070 071

070831 828

884070071

10312018

7312018 4302018 1312018 10312017

Policy Guidelines








Liquidity


IRR





Potential Strategy



Loan Floor


1 $524 $559 $552

2 $511 $589 $552

Total $1035 $1148 $1104


1 $186 $-87 $-87

2 $415 $-87 $-87

3 $415 $-88 $-88

Total $1016 $-262 $-262





Funded with cash

Liquidity




sensitive posture

Earnings





MBS Premium risk

Potential Strategy



Cash Extension


1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $325 $359 $174 $25

2 $503 $586 $157 $-129

3 $369 $486 $158 $-109

Total $1197 $1431 $489 $-213




90 days





Still Strong



sensitive posture




fall





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $248 $284 $200 $152

2 $428 $517 $222 $16

3 $411 $512 $218 $24

Total $1087 $1313 $640 $192



Investments

Loans

Deposits

Wholesale

Other

ALCO Action Items


Closing Thoughts


Different Lenses









Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response









Slide Number 24






Slide Number 30





Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends









Lending Strategies


Loan Pricing




Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts







Equity

Other Liabilities

DDA

NOW

Savings

Utilization

Excess

8997

74303

132849 130877

Excess

244348

285

7025

7233165306

58546

65306

58546

464

244348

456

111499

49611

6386

64499

149136

244348

244348

390

Up 400BP 24M

113471

49611

64499

69529

49611

6386 6386

64499

Excess

64499

65306 65306

25284

90590

6386

Down 200BP Up 200BP

Excess


95212

49611

Base

50967

116273

17481958546 58546




Executive Summary

CAPITAL RATIOS







800 1551 1558 1536 1519 1532

8000 724 717 753

$845$4606323 342

$4572 $4546329

$3527$814$1010 $775

$4840312

$978

$4171 $3922

1200800

16321051

1639

1600 16161048

16181077 10581091

$4820306

$4214$148$92

898 886

$3493$3480 $3492 $3398$3807

$172758 742

$3863$207$67

070 071

070831 828

884070071

10312018

7312018 4302018 1312018 10312017

Policy Guidelines








Liquidity


IRR





Potential Strategy



Loan Floor


1 $524 $559 $552

2 $511 $589 $552

Total $1035 $1148 $1104


1 $186 $-87 $-87

2 $415 $-87 $-87

3 $415 $-88 $-88

Total $1016 $-262 $-262





Funded with cash

Liquidity




sensitive posture

Earnings





MBS Premium risk

Potential Strategy



Cash Extension


1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $325 $359 $174 $25

2 $503 $586 $157 $-129

3 $369 $486 $158 $-109

Total $1197 $1431 $489 $-213




90 days





Still Strong



sensitive posture




fall





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $248 $284 $200 $152

2 $428 $517 $222 $16

3 $411 $512 $218 $24

Total $1087 $1313 $640 $192



Investments

Loans

Deposits

Wholesale

Other

ALCO Action Items


Closing Thoughts


Different Lenses









Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response









Slide Number 24






Slide Number 30





Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends









Lending Strategies


Loan Pricing




Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts



Executive Summary

CAPITAL RATIOS







800 1551 1558 1536 1519 1532

8000 724 717 753

$845$4606323 342

$4572 $4546329

$3527$814$1010 $775

$4840312

$978

$4171 $3922

1200800

16321051

1639

1600 16161048

16181077 10581091

$4820306

$4214$148$92

898 886

$3493$3480 $3492 $3398$3807

$172758 742

$3863$207$67

070 071

070831 828

884070071

10312018

7312018 4302018 1312018 10312017

Policy Guidelines








Liquidity


IRR





Potential Strategy



Loan Floor


1 $524 $559 $552

2 $511 $589 $552

Total $1035 $1148 $1104


1 $186 $-87 $-87

2 $415 $-87 $-87

3 $415 $-88 $-88

Total $1016 $-262 $-262





Funded with cash

Liquidity




sensitive posture

Earnings





MBS Premium risk

Potential Strategy



Cash Extension


1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $325 $359 $174 $25

2 $503 $586 $157 $-129

3 $369 $486 $158 $-109

Total $1197 $1431 $489 $-213




90 days





Still Strong



sensitive posture




fall





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $248 $284 $200 $152

2 $428 $517 $222 $16

3 $411 $512 $218 $24

Total $1087 $1313 $640 $192



Investments

Loans

Deposits

Wholesale

Other

ALCO Action Items


Closing Thoughts


Different Lenses









Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response









Slide Number 24






Slide Number 30





Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends









Lending Strategies


Loan Pricing




Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts








Liquidity


IRR





Potential Strategy



Loan Floor


1 $524 $559 $552

2 $511 $589 $552

Total $1035 $1148 $1104


1 $186 $-87 $-87

2 $415 $-87 $-87

3 $415 $-88 $-88

Total $1016 $-262 $-262





Funded with cash

Liquidity




sensitive posture

Earnings





MBS Premium risk

Potential Strategy



Cash Extension


1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $325 $359 $174 $25

2 $503 $586 $157 $-129

3 $369 $486 $158 $-109

Total $1197 $1431 $489 $-213




90 days





Still Strong



sensitive posture




fall





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $248 $284 $200 $152

2 $428 $517 $222 $16

3 $411 $512 $218 $24

Total $1087 $1313 $640 $192



Investments

Loans

Deposits

Wholesale

Other

ALCO Action Items


Closing Thoughts


Different Lenses









Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response









Slide Number 24






Slide Number 30





Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends









Lending Strategies


Loan Pricing




Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts


Loan Floor


1 $524 $559 $552

2 $511 $589 $552

Total $1035 $1148 $1104


1 $186 $-87 $-87

2 $415 $-87 $-87

3 $415 $-88 $-88

Total $1016 $-262 $-262





Funded with cash

Liquidity




sensitive posture

Earnings





MBS Premium risk

Potential Strategy



Cash Extension


1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $325 $359 $174 $25

2 $503 $586 $157 $-129

3 $369 $486 $158 $-109

Total $1197 $1431 $489 $-213




90 days





Still Strong



sensitive posture




fall





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $248 $284 $200 $152

2 $428 $517 $222 $16

3 $411 $512 $218 $24

Total $1087 $1313 $640 $192



Investments

Loans

Deposits

Wholesale

Other

ALCO Action Items


Closing Thoughts


Different Lenses









Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response









Slide Number 24






Slide Number 30





Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends









Lending Strategies


Loan Pricing




Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts



Funded with cash

Liquidity




sensitive posture

Earnings





MBS Premium risk

Potential Strategy



Cash Extension


1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $325 $359 $174 $25

2 $503 $586 $157 $-129

3 $369 $486 $158 $-109

Total $1197 $1431 $489 $-213




90 days





Still Strong



sensitive posture




fall





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $248 $284 $200 $152

2 $428 $517 $222 $16

3 $411 $512 $218 $24

Total $1087 $1313 $640 $192



Investments

Loans

Deposits

Wholesale

Other

ALCO Action Items


Closing Thoughts


Different Lenses









Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response









Slide Number 24






Slide Number 30





Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends









Lending Strategies


Loan Pricing




Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts


Cash Extension


1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $325 $359 $174 $25

2 $503 $586 $157 $-129

3 $369 $486 $158 $-109

Total $1197 $1431 $489 $-213




90 days





Still Strong



sensitive posture




fall





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $248 $284 $200 $152

2 $428 $517 $222 $16

3 $411 $512 $218 $24

Total $1087 $1313 $640 $192



Investments

Loans

Deposits

Wholesale

Other

ALCO Action Items


Closing Thoughts


Different Lenses









Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response









Slide Number 24






Slide Number 30





Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends









Lending Strategies


Loan Pricing




Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts



90 days





Still Strong



sensitive posture




fall





1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $248 $284 $200 $152

2 $428 $517 $222 $16

3 $411 $512 $218 $24

Total $1087 $1313 $640 $192



Investments

Loans

Deposits

Wholesale

Other

ALCO Action Items


Closing Thoughts


Different Lenses









Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response









Slide Number 24






Slide Number 30





Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends









Lending Strategies


Loan Pricing




Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts




1 $524 $559 $552 $580

2 $511 $589 $552 $602

Total $1035 $1148 $1104 $1182


1 $248 $284 $200 $152

2 $428 $517 $222 $16

3 $411 $512 $218 $24

Total $1087 $1313 $640 $192



Investments

Loans

Deposits

Wholesale

Other

ALCO Action Items


Closing Thoughts


Different Lenses









Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response









Slide Number 24






Slide Number 30





Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends









Lending Strategies


Loan Pricing




Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts


Investments

Loans

Deposits

Wholesale

Other

ALCO Action Items


Closing Thoughts


Different Lenses









Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response









Slide Number 24






Slide Number 30





Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends









Lending Strategies


Loan Pricing




Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts


Closing Thoughts


Different Lenses









Slide Number 2

Todayrsquos Focus



Liquidity Trends

Slide Number 7



Slide Number 10



Slide Number 13


Management Response









Slide Number 24






Slide Number 30





Analyzing Attrition







Next Move on MMDAs




Legacy MMDA Trends









Lending Strategies


Loan Pricing




Slide Number 61

Interest Rate Risk

Slide Number 63




Liability Sensitive


Slide Number 69

Case Study 1

Executive Summary

Liquidity Overview

Liquidity Overview



Strategy Discussion

Strategy Discussion

Strategy Discussion

Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy


Potential Strategy


Case Study 2

Executive Summary

Liquidity Overview

Liquidity Overview


Strategy Discussion


Executive Summary

IRR Overview

IRR Overview

Executive Summary


Potential Strategy

Loan Floor

Potential Strategy

Cash Extension

Potential Strategy


ALCO Action Items

Closing Thoughts

Conquering the Liquidity and Pricing Dilemma on … Resources...Annual Interest Expense $184,088.85...

Documents

Transcript of Conquering the Liquidity and Pricing Dilemma on … Resources...Annual Interest Expense $184,088.85...

Basic Surplus

Basic Surplus

Basic Surplus

Basic Surplus

Basic Surplus

Basic Surplus

Basic Surplus

Basic Surplus

Basic Surplus

Basic Surplus

Basic Surplus

Basic Surplus

Basic Surplus

Basic Surplus

Basic Surplus

Basic Surplus

Basic Surplus

Basic Surplus

Basic Surplus

Basic Surplus

I LIQUID ASSETS																								OTHER LIQUIDITY ITEMS

TOTAL ASSETS =					1200000																							Mkt Value						Pledged						Available

Overnight Funds Sold amp Short-Term Investments (avg balance if wide daily fluctuations)													40000												Corporate Securities				0						0						0

																							Municipal Securities					27876					0						0

							UST amp Agency			MBS CMOs															Equity Securities				0						0						0

Security Collateral										Agency Backed			Munis													Other				0						0						0

				Collateral Value					100			95			90

	Total Market Value of Securities							35000			85000			0													UNSECURED BORROWING LINES

	Less Securities Pledged to																											Line				Outstanding							Available

						FHLB			0			0			0												Fed Funds Lines				0						0						0

						Fed DiscountOther Secured			0			0			0

						Wholesale Repos			0			0			0												SECURED BORROWING LINES

						Retail ReposSweeps			0			-10000			0															Line				Outstanding								Available

						Municipal Deposits			0			-25000			0												Fed BIC Lines				0						0						0

						Other			0			0			0												Fed DiscountOther				0						0						0

Available Unencumbered Security Collateral								35000			47500			0													Total				0						0						0


Total Unpledged Securities													82500																										of Assets

																							BASIC SURPLUS - EXCL FED BIC amp OTHER SECURED LINES

Over Collateralized Securities Pledging Position													0																										of Assets

																							No Change to Basic Surplus										NA						NA

Cash flow (lt 30 Days) from Securities not listed above													0

																	Pct Of Assets							No Change to Basic Surplus										NA						NA

Other Liquid Assets													0


TOTAL LIQUID ASSETS													122500					102


II SHORT TERM POTENTIALLY VOLATILE LIABILITIES amp COVERAGES																								AVAILABLE BORROWING CAPACITY (PER POLICY)


Maturing Unsecured Liabilities (lt 30 Days)													5000


Deposit Coverages																								Current Outstanding Borrowings (Exc SweepsRet Repos)														0

25			of CDs Maturing lt 30 Days											2500

30			of Jumbo CDs Maturing lt 30 Days											5000							Policy Limits (Min)						Maximum Borrowing Capacity is Not Available

10			of Other Deposits											65000

																				Well Capitalized		lt Well Capitalized

																							OTHER NOTES


TOTAL SHORT TERM POTENTIALLY VOLATILE LIABILITIES amp COVERAGES													77500


																BASIC SURPLUS	45000		38


III QUALIFYING FHLB LOAN COLLATERAL


A		Maximum Borrowing Line at FHLB												420000

B		Qualifying Loan Collateral at the FHLB (net of haircut)												325000

C		Excess Loan Collateral (if A lt B)


	Maximum Borrowing Capacity (Lesser of A or B)												325000

	Collateral Currently Encumbered by Outstanding AdvancesLetters of Credit												105000


REMAINING FHLB LOAN BASED BORROWING CAPACITY													220000


																BASIC SURPLUS W FHLB	265000		221


IV BROKERED DEPOSIT ACCESS


Maximum Board Authorized Brokered Deposit Capacity (10 of Total Assets)													120000

Current Brokered Deposit Balances													0


REMAINING CAPACITY TO UTILIZE BROKERED DEPOSITS													120000


																BASIC SURPLUS W FHLB amp BROKERED DEPOSITS	385000		321