CASH 2018 Annual Report

99 Net Sensitive Earnings at Risk as of September 30, 2018 Balances as of September 30, 2018 % of Change in Interest Income/Expense for a given change in interest rates Total Earning Total Earning Over / (Under) Base Case Parallel Shift Basis Point Change Scenario Assets (in $000's) Assets -100 Base +100 +200 +300 +400 Total Loans and Leases 2,956,859 59.1% 203,530 219,768 236,756 253,706 270,537 287,470 Total Investments (non-TEY) and other Earning Assets 2,046,476 40.9% 63,908 70,074 74,881 79,446 83,957 88,504 Total Interest -Sensitive Income 5,003,335 100.0% 267,438 289,843 311,637 333,151 354,494 375,974 Total Interest-Bearing Deposits 2,025,564 82.6% 30,676 41,654 52,971 64,288 75,606 86,923 Total Borrowings 427,570 17.4% 6,413 10,749 15,086 19,424 23,764 28,106 Total Interest-Sensitive Expense 2,453,134 100.0% 37,089 52,403 68,057 83,713 99,370 115,029 Alternative Net Sensitive Earnings at Risk Alternative IRR Results % of Change in Interest Income/Expense for a given change in interest rates Total Earning Total Earning Over / (Under) Base Case Parallel Shift Basis Point Change Scenario Assets (in $000's) Assets -100 Base +100 +200 +300 +400 Total Loans and Leases 2,965,747 59.2% 203,529 219,767 236,754 253,704 270,535 287,468 Total Investments (non-TEY) and other Earning Assets 2,047,752 40.8% 64,005 70,230 75,101 79,734 84,325 88,955 Total Interest -Sensitive Income 5,013,499 100.0% 267,534 289,997 311,855 333,438 354,860 376,423 Total Interest-Bearing Deposits 1,997,117 80.3% 30,533 41,403 52,613 63,823 75,033 86,243 Total Borrowings 488,703 19.7% 7,333 12,334 17,341 22,355 27,382 32,415 Total Interest-Sensitive Expense 2,485,820 100.0% 37,866 53,737 69,955 86,178 102,415 118,658 The Company believes that its growing portfolio of non-interest bearing deposits provides a stable and profitable funding vehicle and a significant competitive advantage in a rising interest rate environment as the Company’s cost of funds will likely remain relatively low, with less increase expected relative to other banks. Under EVE analysis, the economic value of financial assets, liabilities and off-balance sheet instruments is derived under each rate scenario. The economic value of equity is calculated as the difference between the estimated market value of assets and liabilities, net of the impact of off-balance sheet instruments. The EVE analysis used in the following table reflects the required analysis used no less than quarterly by management. It models immediate -100, +100, +200, 300 and +400 basis point parallel shifts in market interest rates. Due to the current low level of interest rates, only a -100 basis point parallel shift is represented.