1 THE VERY BIG BANK STRESS TEST 2 ($ in millions) 3 CONSTANTS 2015 2016 4 Tax Rate NA 5 Cash Needed To Start Year NA 6 Deposits 7 Trading Account Assets NA 8 Long Term Debt Owed 9 Base Equity for Test Purposes 10% $ 50,000 $ 50,000 $ 50,000 $975,000 $990,000 $1,000,000 $200,000 $210,000 $ 220,000 $220,000 $ 240,000 $ 260,000 $120,000 $120,000 $ 2017 10% 2018 10% 120,000 10 11 INPUTS 2015 2016 2017 2018 12 Market Volatility ("H" = High, "N" = Normal) 13 Economy ("G" = Good, "O" = OK, "P" = Poor) NA H NA NA G 0 P 14 15 SUMMARY OF KEY RESULTS 2015 2016 2017 16 Net Income After Taxes NA 17 End-Of-The-Year Cash On Hand NA 18 End-Of-The-Year Short Term Debt Owed $ $ 57,173 $ 46,745 $ $300,000 $ 343,918 $ $ 19 Pass/Fail Stress Test PASS 2018 (168,410) 175,508 $ PASS HOLD 20 21 CALCULATIONS 22 Consumer Loans 23 Corporate Loans 24 Interest Rate on Consumer Loans 25 Interest Rate on Corporate Loans 26 Interest Rate on Trading Assets 27 Interest Rate Paid on Deposits 2015 2016 2017 2018 $ 500,000 $ 535,000 $ 545,700 $ $ 400,000 $420,000 $424,200 $ 523,872 415,716 14.0% 14.0% 10.0% NA 8.0% 8.0% 7.0% 10.0% 10.0% 10.0% NA 1.5% 1.0% 0.5% 28 Interest Rate Paid on Short Term Debt NA 1.5% 1.0% 0.5% 29 Interest Rate Paid on Long Term Debt 4.0% 3.5% 3.0% 30 Trading Account Expense Ratio NA 60% 60% 110% 31 Loan Loss Percentage 3% 5% 25% 32 INCOME STATEMENT AND 33 CASH FLOW STATEMENT 2015 2016 2017 2018 34 Beginning-Of-The-Year Cash On Hand NA $300,000 $297,173 $ 343,918 35 36 Revenue NA 37 Interest on Consumer Loans NA $ 74,900 $ 76,398 $ 52,387 38 Interest on Corporate Loans NA $ 33,600 $ 33,936 $ 29,100 39 Trading Account Revenue $ 20,000 $ 21,000 $ 22,000 40 Total Revenue 1 $ 128,500 $ 131,334 $ 103,487 41 Expenses NA 42 Interest on Deposits $ 14,625 $ 9,900 $ 5,000 43 Interest on Short Term Debt $ 900 $ $ 44 Interest on Long Term Debt NA $ 8,800 $ 8,400 $ 7,800 45 Trading Account Expense NA $ 12,000 $ 12,600 $ 24,200 46 Loan Losses $ 28,650 $ 48,495 $ 234,897 47 Total Expenses 48 Income before Taxes NA es eses $ 64,975 $ 79,395 $ 271,897 $ 63,525 $ 51,939 $ (168,410) $ 6,353 $ 5,194 $ $ 57,173 $ 46,745 $ (168,410) 49 Income Tax Expense 50 Net Income After Taxes 51 Net Cash Position (NCP) Before Borrowing and Repayment of Debt (Beginning of 52 Year Cash + Net Income) $ 357,173 $ 343,918 $ 175,508 53 Add: Increase in Borrowing $ $ $ $ 60,000 $ $ 54 Less: Repayment of Debt 55 Equals: End-Of-The-Year Cash On Hand 56 $300,000 $ 297,173 $ 343,918 $ 175,508 51 Net Cash Position (NCP) Before Borrowing and Repayment of Debt (Beginning of 52 Year Cash + Net Income) 53 Add: Increase in Borrowing 54 Less: Repayment of Debt 55 Equals: End-Of-The-Year Cash On Hand 56 57 SHORT TERM DEBT OWED NA $ 357,173 $ 343,918 $ 175,508 $ -$ $ 60,000 $ es es es $ $ $300,000 $ 297,173 $ 343,918 $ 175,508 2015 2016 2017 2018 58 Beginning-Of-The-Year Short Term Debt Owed $ 60,000 $ $ 59 Add: Increase in Borrowing $ - $ $ 60 Less: Repayment of Debt $ 60,000 $ 61 Equals: End-Of-The-Year Short Term Debt Owed $ 60,000 $ $ $ - $ 62 63 FINAL STRESS TEST COMPUTATIONS 64 Return on Base Equity 65 Pass/Fail Stress Test 2015 2016 2017 2018 $ 0.48 $ 0.39 $ (1.40) PASS PASS HOLD Scenario Summary POOR-HIGH POOR-NORMAL OK-HIGH OK-NORMAL Changing Cells: MARKET VOLATILITY - ALL YEARS $C$12 H N H ECONOMY -- 2016 $C$13 P P ECONOMY -- 2017 $D$13 P P ECONOMY -- 2018 $E$13 P P Result Cells: SHORT TERM DEBT AT Y/E -- 2016 $C$18 $ es PASS / HOLD / FAIL -- 2016 $C$19 HOLD SHORT TERM DEBT AT Y/E -- 2017 $D$18 $ 118,854 $ PASS / HOLD/FAIL -- 2017 $D$19 FAIL HOLD SHORT TERM DEBT AT Y/E -- 2018 PASS/HOLD/FAIL -- 2018 $E$18 $ 268,569 $ - $ $E$19 FAIL HOLD $ $ $ HOLD PASS PASS $ $ PASS PASS $ PASS PASS Notes: Current Values column represents values of changing cells at time Scenario Summary Report was created. Changing cells for each scenario are highlighted in gray.