Liquidity Risk Report

Your Bank

Quarter Ended June 30, 2015 Standard UBPR Peer Group 3 (1239 Banks)

Liquidity Ratios & Indicators

2011

Full Years 2012 2013

2014

50% 74%

50% 80%

Current 06/30/15

Change 1 Quarter 1 Year

Internal

Regulatory

Policy

Preference

Early Warning Liquidity Indicators * Net Loans / Deposits

Bank Peer Median PCT Rank

57% 76%

51% 77%

13th

9th

10th

8th

Net Non-Core Funding Dependence ($250K)

Bank Peer Median PCT Rank

(18%) 6%

(39%) 4%

(26%) 6%

(29%) 6%

6th

2nd

4th

3rd

Net Short-Term Liabilities / Assets

Bank Peer Median PCT Rank

(10%) 1%

(20%) (2%)

(14%) (1%)

(12%) (2%)

24th

13th

18th

21st

On-Hand Liquidity / Total Liabilities

Bank Peer Median PCT Rank

31% 18%

41% 20%

41% 18%

40% 17%

83rd

90th

90th

91st

Reliance on Wholesale Funding

Bank Peer Median PCT Rank

0% 7%

0% 6%

0% 6%

0% 7%

10th

15th

12th

11th

85% 79%

85% 79%

85% 78%

56% 80% 11th

9% 2%

3% 3%

75% L

75% L

(21%) 7% 4th

(30%) 2%

4% 10%

20% L

20% L

(10%) (1%) 26th

(19%) 1%

50% 98%

15% L

15% L

37% 16% 89th

(13%) (1%)

3% (5%)

15% H

15% H

0% 7% 0th

NA 1%

(100%) 7%

15% L

15% L

84% 78% 82nd

(0%) (1%)

(1%) (1%)

48% 68% 12th

9% 1%

3% 3%

1003% 70% 96th

(7%) (29%)

13% (10%)

140% 108% 65th

(6%) (7%)

13% 4%

2% 6% 9th

(16%) 0%

(8%) 7%

17% 5% 93rd

(23%) (1%)

4% 0%

0% 0% 0th

NA 0%

NA 5%

3% (2%)

(17%) 0%

Other Liquidity Ratios Core Deposits / Assets

Bank Peer Median PCT Rank

84% 77% 86th

83rd

84th

86th

Net Loans / Assets

Bank Peer Median PCT Rank

50% 64%

43% 63%

44% 65%

44% 67%

17th

10th

11th

10th

Short-Term Investments / Bank Peer Median Short-term Non-Core PCT Rank Funding

864% 90%

1191% 112%

980% 86%

982% 77%

96th

96th

96th

96th

Bank Peer Median PCT Rank

132% 97%

174% 110%

154% 104%

144% 111%

71st

75th

72nd

67th

Bank Peer Median PCT Rank

2% 7%

2% 6%

2% 6%

2% 6%

7th

14th

13th

13th

Bank Short-Term Investments / Peer Median Assets PCT Rank

15% 6%

27% 7%

20% 5%

22% 5%

86th

97th

94th

96th

Brokered Deposits / Total Deposits

Bank Peer Median PCT Rank

0% 1%

0% 0%

0% 0%

0% 1%

0th

0th

0th

0th

Pledged Securities / Total Securities

Bank Peer Median PCT Rank

36% 44%

39% 42%

29% 39%

33% 42%

40th

47th

36th

39th

29% 41% 35th

# Outside Regulatory Preference (0-5)

0

0

0

0

0

# Outside Internal Policy

0

0

0

0

0

Short-Term Assets / Short-Term Liabilities Short-Term Non-Core Funding / Assets

Indicates a quarterly change of over 10% or annual change of over 25% * Early Warning Liquidity Indicators are based on OCC guidance, and the regulatory preferences shown on this report are derived from what the OCC believes serve as thresholds representing points at which risk begins to escalate, and vary depending on the institution’s charter type.

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800.285.8626

Copyright © 1985 - 2015

2

Assets

Full Years ($000s)

2011

2012

Current

2013

2014

1 Quarter

06/30/15

1 Year

Difference % Change Difference % Change

Assets Cash & a. Noninterest-bearing Deps

$28,090

$25,675

$21,217

$36,841

$30,668

$2,477

9%

($1,774)

(5%)

b. Interest-bearing Balances

$15,808

$16,738

$16,985

$36,581

$39,591

$1,239

3% ($14,218)

(26%)

c. Memo: Pledged Securities

$24,417

$24,033

$24,880

$31,889

$27,467

$166

1%

($8,439)

(24%)

$2,255

$997

$1,244

$1,325

$1,941

($408)

(17%)

$207

12%

$68,261

$60,961

$84,868

$96,847

$94,347

($1,858)

(2%)

($7,918)

(8%)

$35,580

$79,435

$56,060

$61,660

$33,060

($24,600)

(43%)

$16,685

102%

$0

$0

$0

$0

$0

$0

NA

$0

NA

$82,570

$72,012

$68,882

$75,373

$78,491

$6,721

9%

($3,074)

(4%)

$172,999

$159,210

$161,688

$200,493

$209,924

$12,650

6%

$4,709

2%

$3,349

$2,628

$2,062

$1,963

$1,422

($199)

(12%)

($846)

(37%)

$346,712

$366,474

$364,567

$460,892

$435,891

($9,468)

(2%)

($2,130)

(0%)

(a+b+e-c+f+g)

$123,322

$158,776

$154,250

$200,040

$170,199

($22,908)

(12%)

$1,214

1%

Total Earning Assets

(b+e+f+i)

$292,648

$316,344

$319,601

$395,581

$376,922

($12,569)

(3%)

($742)

(0%)

Short-Term Assets

(b+d+f+h)

$136,213

$169,182

$143,171

$174,939

$153,083

($17,048)

(10%)

($400)

(0%)

d.

Memo:Debt Sec w remaining maturity ≤ 1Year

e. Total Securities f.

Fed Funds & Repurchase Agreements

g. Trading Assets Memo:Loans w remaining maturity ≤ 1Year Total Net Loans i. & Leases (incl HFS) h.

j. OREO Total Assets Calculation:

Total Liquid Assets

Short-Term Investments

(b+d+f)

$53,643

$97,170

$74,289

$99,566

$74,592

($23,769)

(24%)

$2,674

4%

Long-Term Assets

(e-d+i+j)

$242,354

$221,802

$247,374

$297,978

$303,752

$11,001

4%

($4,262)

(1%)

5.4%

5.3%

5.3%

9.2%

10.5%

+0.7%

7%

-3.7%

(26%)

Total Securities

23.3%

19.3%

26.6%

24.5%

25.0%

+0.3%

1%

-2.0%

(8%)

Fed Funds & Repurchase Agreements

12.2%

25.1%

17.5%

15.6%

8.8%

-6.0%

(41%)

+4.4%

102%

0.0%

0.0%

0.0%

0.0%

0.0%

+0.0%

NA

+0.0%

NA

59.1%

50.3%

50.6%

50.7%

55.7%

+5.0%

10%

+1.4%

2%

Earning Asset Composition Interest-bearing Balances

Trading Assets Total Net Loans & Leases (incl HFS)

www.qwickrate.com

800.285.8626

Copyright © 1985 - 2015

3

Funding

Full Years ($000s)

2011

2012

Current

2013

2014

1 Quarter

06/30/15

1 Year

Difference % Change Difference % Change

Funding a. Demand Deposits

$77,788

$92,612

$94,508

$115,534

$93,840

($8,252)

(8%)

$1,323

1%

b. Other Trans. Accounts

$46,451

$51,027

$51,234

$55,867

$57,795

($16)

(0%)

$1,789

3%

$124,239

$143,639

$145,742

$171,401

$151,635

($8,268)

(5%)

$3,112

2%

c. MMDA Accounts

Total Transaction Accounts

$27,095

$26,954

$28,608

$52,888

$50,553

($431)

(1%)

$4,285

9%

d. Other Savings Accounts

$15,571

$17,328

$19,076

$24,631

$27,983

$1,610

6%

($1,596)

(5%)

Total Savings Accounts

$42,666

$44,282

$47,684

$77,519

$78,536

$1,179

2%

$2,689

4%

$0

$0

$0

$0

$0

$0

NA

$0

NA

$96,610

$88,990

$85,164

$111,147

$102,053

($3,799)

(4%) ($14,160)

(12%)

$124,462

$121,785

$116,070

$142,707

$135,680

($2,644)

(2%) ($10,581)

(7%)

h. Brokered Deps. ≤ $250k

$0

$0

$0

$0

$0

$0

Total Time Deps. ≤ $250k

$124,462

$121,785

$116,070

$142,707

$135,680

($2,644)

$5,697

$6,945

$7,127

$10,129

$7,439

($1,656)

(18%)

($626)

(8%)

$10,249

$10,463

$9,253

$13,218

$11,988

($505)

(4%)

$877

8%

Brokered Deps. ≤ $250K, e. maturing ≤ 1yr Total Time Deps. ≤ $250K, f. maturing ≤ 1yr g. Non-Brokered Time Deps. ≤ $250k

i. Time Dep >$250K, maturing ≤ 1yr j. Total Time Deposits > $250k Total Time Deposits

$0

NA

(2%) ($10,581)

(7%)

$134,711

$132,248

$125,323

$155,925

$147,668

($3,149)

(2%)

($9,704)

(6%)

Memo: Total Brokered Deposits

$0

$0

$0

$0

$0

$0

NA

$0

NA

Memo: Non-Brokered Listing Service Deposits

$0

$0

$0

$0

$0

$0

NA

$0

NA

$301,616

$320,169

$318,749

$404,845

$377,839

($10,238)

(3%)

($3,903)

(1%)

Total Deposits k. Total Fed Funds & Repos

l.

NA

$510

$1,212

$451

$13

$0

$0

NA

($38)

(100%)

Trading Liabilities

$0

$0

$0

$0

$0

$0

NA

$0

NA

Memo: Borrowings maturing < 1 yr

$0

$0

$0

$0

$0

$0

NA

$0

NA

$0

$0

$0

$0

$0

$0

NA

$0

NA

$302,664

$321,808

$319,712

$405,424

$379,011

($10,061)

(3%)

($3,988)

(1%)

$102,817

$97,147

$92,742

$121,289

$109,492

($5,455)

(5%) ($14,824)

(12%)

$10,759

$11,675

$9,704

$13,231

$11,988

($505)

(4%)

$839

8%

$291,367

$309,706

$309,496

$391,627

$365,851

($9,733)

(3%)

($4,780)

(1%)

$6,207

$8,157

$7,578

$10,142

$7,439

($1,656)

(18%)

($664)

(8%)

Demand Deposits

25.8%

28.9%

29.6%

28.5%

24.8%

-1.5%

(6%)

+0.6%

2%

Other Trans. Accounts

15.4%

15.9%

16.1%

13.8%

15.3%

+0.4%

3%

+0.6%

4%

41.2%

44.9%

45.7%

42.3%

40.1%

-1.1%

(3%)

+1.2%

3%

9.0%

8.4%

9.0%

13.1%

13.4%

+0.2%

2%

+1.3%

10%

m. Total Other Borrowed Money Total Liabilities (Excl Min Int) Calculation:

Short-Term Liabilities

(f+i+l+k)

Non-Core Liabilities Core Deposits

(h+j+k+m) (a+b+c+d+g)

Short-Term Non-Core

(i+e+l+k)

Funding

Deposit Composition

Total Transaction Accounts MMDA Accounts Other Savings Accounts Total Savings Total Time Deps. ≤ $250k Total Time Deposits > $250k Total Time Deposits

5.2%

5.4%

6.0%

6.1%

7.4%

+0.6%

9%

-0.3%

(4%)

14.1%

13.8%

15.0%

19.1%

20.8%

+0.9%

4%

+0.9%

5%

41.3%

38.0%

36.4%

35.2%

35.9%

+0.3%

1%

-2.4%

(6%)

3.4%

3.3%

2.9%

3.3%

3.2%

-0.0%

(1%)

+0.3%

9%

44.7%

41.3%

39.3%

38.5%

39.1%

+0.2%

1%

-2.1%

(5%)

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800.285.8626

Copyright © 1985 - 2015

4

Liquidity Discussion & Definitions

Liquidity Risk Red Flags • Declines in levels of core deposits. • Significant decreases in short-term investments. • Significant increases in borrowings. • Significant increases in dependence on funding sources other than core deposits. • Significant increases in reliance on wholesale funding. • Significant increases in large certificates of deposit, brokered deposits, or deposits with interest rates higher than the market.

Liquidity Early Warning Indicators Loan to Deposit Ratio — Indicates the extent to which a bank’s deposit structure funds the loan portfolio. The higher the ratio the more reliance that a bank has on non-deposit sources to fund the loan portfolio. Net Non-Core Funding Dependence — Calculated by subtracting short-term investments from non-core liabilities and dividing the resulting difference by long-term assets. This ratio indicates the degree of reliance on funds from the professional money markets to fund earning assets. Professional markets are credit and price sensitive. These funds will move out of the bank in the event of real or perceived asset quality or other fundamental problems at the bank.

Net Short-Term Liabilities to Total Assets — Calculated by taking the difference in short-term assets from short-term liabilities and dividing by total assets. The ratio indicates the degree of exposure assumed by funding assets with short-term liabilities, also referred to as rollover risk. Generally, the higher the number, the more vulnerable the bank is to funding sources rolling out. This requires the bank to find new funding sources for existing assets.

On-hand Liquidity to Total Liabilities — Calculated by dividing net liquid assets by total liabilities. This ratio measures the bank’s ability to meet liquidity needs from on-hand liquid assets. The lower the ratio the greater the likelihood that the bank will need to use market funding sources to meet incremental liquidity needs.

Reliance on Wholesale Funding — Calculated by dividing all wholesale funding by total funding. This measures the portion of the bank’s total funds that are from wholesale sources. Banks with high volumes of wholesale funding should make sure that they have up-to-date contingency funding plans.

Other Liquidity Ratios Core Deposits to Total Assets — This ratio indicates how much of the asset base is funded with core deposits. A higher ratio is preferred because it indicates a more stable funding base. A low ratio may indicate higher liquidity risk because more of the asset base is being financed with volatile funds.

Net Loans & Leases to Total Assets — This ratio indicates the percentage of the bank’s total assets invested in loans. A high ratio implies less liquidity because more of the bank's assets consist of loans, which are generally less liquid than other types of assets, such as securities and Fed funds sold.

Short-Term Investments to Short-Term Non-Core Funding — This ratio indicates how well the bank has matched the time horizons of its short-term investments to its short-term non-core funding sources. A ratio near or exceeding 100 percent indicates that the bank's short-term investments will be sufficient to fund short-term non-core funds at the time of maturity. A low ratio indicates that the bank does not have sufficient shortterm investments to pay off short-term non-core funds if they are withdrawn upon maturity.

Short-Term Assets to Short-Term Liabilities — This ratio indicates how well the bank has matched the time horizons of its short-term assets to its short-term liabilities. A ratio near or exceeding 100 percent indicates that the bank has maintained a sufficient amount of shortterm assets to fund all its short-term liability funding requirements upon maturity.

Short-Term Non-Core Funding to Total Assets — This ratio indicates how much of the bank's asset base is funded with short-term noncore funds. A lower ratio indicates less of the asset base is funded with short-term volatile funds.

Short-Term Investments to Total Assets — This ratio indicates the percentage of the bank’s total assets consisting of short-term investments. A higher level is better. A higher volume of short-term (or liquid) investments indicates more sources of funds will mature and convert to cash in the near term.

Brokered Deposits to Total Deposits — Through brokered deposits, bank’s can gain access to a larger pool of funding and improve liquidity. They can also be more cost effective compared to handling an equivalent dollar amount of numerous smaller deposits, despite tending to pay a higher rate of interest. Only well-capitalized banks can solicit and accept brokered deposits. Adequately capitalized ones may accept them after being granted a waiver, and undercapitalized banks cannot accept them at all. They are generally seen as a riskier funding source than core deposits, due to the positive historical association between failure rates and increasing reliance on them.

Pledged Securities to Total Securities — This measures a bank's borrowing capacity, with a higher ratio indicating a diminished ability to borrow. For banks with unfavorable, stressed liquidity positions, this ratio could approach 100 percent.

Source: OCC Director’s Toolkit “Detecting Red Flags in Board Reports: A Guide For Directors”

www.qwickrate.com

800.285.8626

Copyright © 1985 - 2015

5