Cashmere Valley Bank : March 2022 Call Report

Last Updated on 4/27/2022

FFIEC 051 Report Date 3/31/2022 7

Schedule RI - Income Statement(Form Type - 051)

Dollar amounts in thousands

1. Interest income: a. Interest and fee income on loans:

1. Loans secured by real estate:

• a. Loans secured by 1-4 family residential properties ...............................................................................1.a.1.a.

• b. All other loans secured by real estate ....................................................................................................1.a.1.b.

2. Commercial and industrial loans ...................................................................................................................1.a.2.

• 3. Loans to individuals for household, family, and other personal expenditures:

  • a. Credit cards ...........................................................................................................................................1.a.3.a.

  • b. Other (includes revolving credit plans other than credit cards, automobile loans, and other consumer loans) .........................................................................................................................................................

• 4. Not applicable

• 5. All other loans1 ..............................................................................................................................................1.a.5.

• 6. Total interest and fee income on loans (sum of items 1.a.(1)(a) through 1.a.(5)) ..........................................1.a.6.

• b. Income from lease financing receivables .............................................................................................................1.b.

• c. Interest income on balances due from depository institutions2 ............................................................................1.c.

d. Interest and dividend income on securities:

• 1. U.S. Treasury securities and U.S. Government agency obligations (excluding mortgage-backed securities).1.d.1.

• 2. Mortgage-backed securities ..........................................................................................................................1.d.2.

• 3. All other securities (includes securities issued by states and political subdivisions in the U.S.) ...................1.d.3.

• e. Not applicable

• f. Interest income on federal funds sold and securities purchased under agreements to resell ...............................1.f.

• g. Other interest income ...........................................................................................................................................1.g.

• h. Total interest income (sum of items 1.a.(6) through 1.g) ......................................................................................1.h.

2. Interest expense:

• a. Interest on deposits:

  1. Transaction accounts (interest-bearing demand deposits, NOW accounts, ATS accounts, and telephone and preauthorized transfer accounts) ...............................................................................................................

  2. Nontransaction accounts:

  • a. Savings deposits (includes MMDAs) .....................................................................................................2.a.2.a.

  • b. Time deposits of $250,000 or less .........................................................................................................2.a.2.b.

  • c. Time deposits of more than $250,000 ....................................................................................................2.a.2.c.

• b. Expense of federal funds purchased and securities sold under agreements to repurchase ................................2.b.

• c. Other interest expense .........................................................................................................................................2.c.

• d. Not applicable

• e. Total interest expense (sum of items 2.a through 2.c) ..........................................................................................2.e.

• 3. Net interest income (item 1.h minus 2.e) .....................................................................................................................3.

• 4. Provision for loan and lease losses3 ............................................................................................................................4.

5. Noninterest income:

• a. Income from fiduciary activities 2 .........................................................................................................................5.a.

• b. Service charges on deposit accounts ...................................................................................................................5.b.

• c. Not applicable

• d. Income from securities-related and insurance activities

  1. Fees and commissions from securities brokerage, investment banking, advisory, and underwriting activities ............................................................................................................................................................

1.

RIAD4435	1,064
RIAD4436	4,321
RIAD4012	1,655
RIADB485	27
RIADB486	1,538
RIAD4058	551
RIAD4010	9,156
RIAD4065	41
RIAD4115	29
RIADB488	122
RIADB489	1,592
RIAD4060	3,678
RIAD4020	4
RIAD4518	25
RIAD4107	14,647
RIAD4508	28
RIAD0093	407
RIADHK03	438
RIADHK04	156
RIAD4180	16
RIADGW44	0
RIAD4073	1,045
RIAD4074	13,602
RIADJJ33	47
RIAD4070	0
RIAD4080	491
RIADHT73	276

1.a.1.a.1.

1.a.3.

1.a.3.b.

1.a.4.

1.d.

1.e.

2.2.a.

2.a.1.

2.a.2.

2.d.

5.

5.c.5.d.

5.d.1.

• 1. Includes interest and fee income on "Loans to depository institutions and acceptances of other banks," "Loans to finance agricultural production and other loans to farmers," "Obligations (other than securities and leases) of states and political subdivisions in the U.S.," and "Loans to nondepository financial institutions and other loans"

• 2. Includes interest income on time certificates of deposit not held for trading.

• 3. Institutions that have adopted ASU 2016-13 should report in item 4 the provisions for credit losses for all financial assets and off-balance-sheet credit exposures that fall within the scope of the standard.

• 2. For banks required to complete Schedule RC-T, items 14 through 22, income from fiduciary activities reported in Schedule RI, item 5.a, must equal the amount reported in Schedule RC-T, item

  22.

CASHMERE VALLEY BANK	FFIEC 051
RSSD-ID 574976	Report Date 3/31/2022
Last Updated on 4/27/2022	8

Dollar amounts in thousands

2. Income from insurance activities3 .................................................................................................................5.d.2.

e. Not applicablef. Net servicing fees ..................................................................................................................................................5.f.

g. Not applicable5.g.

h. Not applicable5.h.

• i. Net gains (losses) on sales of loans and leases ...................................................................................................5.i.

• j. Net gains (losses) on sales of other real estate owned .........................................................................................5.j.

• k. Net gains (losses) on sales of other assets3 ........................................................................................................5.k.

• l. Other noninterest income* .....................................................................................................................................5.l.

• m. Total noninterest income (sum of items 5.a through 5.l) ......................................................................................5.m.

6. Not available

• a. Realized gains (losses) on held-to-maturity securities .........................................................................................6.a.

• b. Realized gains (losses) on available-for-sale debt securities ...............................................................................6.b.

7. Noninterest expense:

• a. Salaries and employee benefits ...........................................................................................................................7.a.

• b. Expenses of premises and fixed assets (net of rental income) (excluding salaries and employee benefits and mortgage interest) ....................................................................................................................................................

• c. Not available

  • 1. Goodwill impairment losses ..........................................................................................................................7.c.1.

  • 2. Amortization expense and impairment losses for other intangible assets ....................................................7.c.2.

• d. Other noninterest expense* ..................................................................................................................................7.d.

• e. Total noninterest expense (sum of items 7.a through 7.d) ....................................................................................7.e.

8. Not available a. Income (loss) before change in net unrealized holding gains (losses) on equity securities not held for trading, applicable income taxes, and discontinued operations (item 3 plus or minus items 4, 5.m, 6.a, 6.b, and 7.e) ........

• b. Change in net unrealized holding gains (losses) on equity securities not held for trading4 .................................8.b.

• c. Income (loss) before applicable income taxes and discontinued operations (sum of items 8.a and 8.b) .............8.c.

• 9. Applicable income taxes (on item 8.c) .........................................................................................................................9.

• 10. Income (loss) before discontinued operations (item 8.c minus item 9) ......................................................................10.

• 11. Discontinued operations, net of applicable income taxes* .........................................................................................11.

• 12. Net income (loss) attributable to bank and noncontrolling (minority) interests (sum of items 10 and 11) .................12.

13. LESS: Net income (loss) attributable to noncontrolling (minority) interests (if net income, report as a positive value; if net loss, report as a negative value) .............................................................................................................................

14. Net income (loss) attributable to bank (item 12 minus item 13) .................................................................................14.

• 1. Not applicable

• 2. Not applicable

• 3. Income on tax-exempt loans and leases to states and political subdivisions in the U.S. (included in Schedule RI, items 1.a and 1.b) ............................................................................................................................................................

4. Income on tax-exempt securities issued by states and political subdivisions in the U.S. (included in Schedule RI, item 1.d.(3)) .....................................................................................................................................................................

5. Number of full-time equivalent employees at end of current period (round to nearest whole number) .......................M.5.

Memorandum item 6 is to be completed by:

* banks with $300 million or more in total assets, and

* banks with less than $300 million in total assets that have loans to finance agricultural production and other loans to farmers (Schedule

RC-C, Part I, item 3) exceeding 5 percent of total loans

6. Interest and fee income on loans to finance agricultural production and other loans to farmers (included in Schedule RI, item 1.a.(5))1 .............................................................................................................................................................. 7. If the reporting institution has applied pushdown accounting this calendar year, report the date of the institution's acquisition (see instructions)2 .........................................................................................................................................

8.

RIADHT74	1,673
RIADB492	210
RIAD5416	518
RIAD5415	0
RIADB496	0
RIADB497	2,097
RIAD4079	5,265
RIAD3521	0
RIAD3196	135
RIAD4135	6,405
RIAD4217	906
RIADC216	0
RIADC232	170
RIAD4092	4,483
RIAD4093	11,964
RIADHT69	6,991
RIADHT70	0
RIAD4301	6,991
RIAD4302	913
RIAD4300	6,078
RIADFT28	0
RIADG104	6,078
RIADG103	0
RIAD4340	6,078
RIAD4313	460
RIAD4507	1,646
RIAD4150	299
RIAD4024	17
RIAD9106	00000000

5.e.

6.

7.

7.b.

7.c.

8.a.

13.

M.1.

M.2.

M.3.

M.4.

M.6.

M.7.

• 3. Includes underwriting income from insurance and reinsurance activities.

• 3. Exclude net gains (losses) on sales of trading assets and held-to-maturity and available-for-sale debt securities.

• *. Describe on Schedule RI-E - Explanations.

• *. Describe on Schedule RI-E - Explanations.

• 4. Item 8.b is to be completed by all institutions. See the instructions for this item and the Glossary entry for "Securities Activities" for further detail on accounting for investments in equity securities.

• *. Describe on Schedule RI-E - Explanations.

• 1. The $300 million asset-size test and the 5 percent of total loans test are based on the total assets and total loans reported in the June 30, 2018, Report of Condition.

• 2. Report the date in YYYYMMDD format. For example, a bank acquired on March 1, 2022, would report 20220301.

Last Updated on 4/27/2022

FFIEC 051 Report Date 3/31/2022 9

Dollar amounts in thousands

• 8. Not applicable

• 9. Not applicable

• 10. Not applicable

• 11. Does the reporting bank have a Subchapter S election in effect for federal income tax purposes for the current tax year? ...............................................................................................................................................................................

Memorandum item 12 is to be completed by banks that are required to complete Schedule RC-C, Part I, Memorandum items 8.b and 8.c, and is to be completed annually in the December report only.

12. Noncash income from negative amortization on closed-end loans secured by 1-4 family residential properties (included in Schedule RI, item 1.a.(1)(a)) ........................................................................................................................

13. Not applicable

Memorandum item 14 is to be completed semiannually in the June and December reports only.

14. Other-than-temporary impairment losses on held-to-maturity and available-for-sale debt securities recognized inM.14. earnings (included in Schedule RI, items 6.a and 6.b)3 ..................................................................................................

Memorandum item 15 is to be completed annually in the December report only by institutions with $1 billion or more in total assets1 that

answered "Yes" to Schedule RC-E, Memorandum item 5.

15. Components of service charges on deposit accounts (sum of Memorandum items 15.a through 15.d must equal Schedule RI, item 5.b):

a. Consumer overdraft-related service charges levied on those transaction account and nontransaction savings account deposit products intended primarily for individuals for personal, household, or family use ........................ b. Consumer account periodic maintenance charges levied on those transaction account and nontransaction savings account deposit products intended primarily for individuals for personal, household, or family use ........... c. Consumer customer automated teller machine (ATM) fees levied on those transaction account and nontransaction savings account deposit products intended primarily for individuals for personal, household, or family use ...........

d. All other service charges on deposit accounts .....................................................................................................M.15.d.

M.8.

RIADA530	No
RIADF228	NR
RIADJ321	NR
RIADH032	NR
RIADH033	NR
RIADH034	NR
RIADH035	NR

M.9.

M.10.

M.11.

M.12.

M.13.

M.15.

M.15.a.

M.15.b.

M.15.c.

Schedule RI-A - Changes in Bank Equity Capital(Form Type - 051)

Dollar amounts in thousands

1. Total bank equity capital most recently reported for the December 31, 2021, Reports of Condition and Income (i.e., after adjustments from amended Reports of Income) .....................................................................................................

• 2. Cumulative effect of changes in accounting principles and corrections of material accounting errors* .......................2.

• 3. Balance end of previous calendar year as restated (sum of items 1 and 2) ................................................................3.

• 4. Net income (loss) attributable to bank (must equal Schedule RI, item 14) ..................................................................4.

• 5. Sale, conversion, acquisition, or retirement of capital stock, net (excluding treasury stock transactions) ...................5.

• 6. Treasury stock transactions, net ..................................................................................................................................6.

• 7. Changes incident to business combinations, net .........................................................................................................7.

• 8. LESS: Cash dividends declared on preferred stock ....................................................................................................8.

• 9. LESS: Cash dividends declared on common stock .....................................................................................................9.

• 10. Other comprehensive income1 ..................................................................................................................................10.

11. Other transactions with stockholders (including a parent holding company) (not included in items 5, 6, 8, or 9 above)* ............................................................................................................................................................................

12. Total bank equity capital end of current period (sum of items 3 through 11) (must equal Schedule RC, item 27.a)..12.

1.

RIAD3217	239,098
RIADB507	0
RIADB508	239,098
RIAD4340	6,078
RIADB509	207
RIADB510	0
RIAD4356	0
RIAD4470	0
RIAD4460	3,299
RIADB511	-52,894
RIAD4415	0
RIAD3210	189,190

11.

• 3. Memorandum item 14 is to be completed only by institutions that have not adopted ASU 2016-13.

• *. Describe on Schedule RI-E - Explanations.

• 1. Includes, but is not limited to, changes in net unrealized holding gains (losses) on available-for-sale debt securities, changes in accumulated net gains (losses) on cash flow hedges, and pension and other postretirement plan-related changes other than net periodic benefit cost.

• *. Describe on Schedule RI-E - Explanations.

CASHMERE VALLEY BANK	FFIEC 051
RSSD-ID 574976	Report Date 3/31/2022
Last Updated on 4/27/2022	10

Schedule RI-B Part I - Charge-offs and Recoveries on Loans and Leases(Form Type - 051)

Part I includes charge-offs and recoveries through the allocated transfer risk reserve.

Dollar amounts in thousands

(Column A) Charge-offs Calendar year-to-date

(Column B) Recoveries Calendar year-to-date

1. Loans secured by real estate: a. Construction, land development, and other land loans:

• 1. 1-4 family residential construction loans .................................................................1.a.1.

• 2. Other construction loans and all land development and other land loans ...............1.a.2.

b. Secured by farmland .......................................................................................................1.b.

• c. Secured by 1-4 family residential properties:

  1. Revolving, open-end loans secured by 1-4 family residential properties and extended under lines of credit .....................................................................................................

  2. Closed-end loans secured by 1-4 family residential properties:

  • a. Secured by first liens ........................................................................................1.c.2.a.

  • b. Secured by junior liens .....................................................................................1.c.2.b.

• d. Secured by multifamily (5 or more) residential properties ..............................................1.d.

e. Secured by nonfarm nonresidential properties:

• 1. Loans secured by owner-occupied nonfarm nonresidential properties ...................1.e.1.

• 2. Loans secured by other nonfarm nonresidential properties ....................................1.e.2.

2. Not applicable2.

3. Not applicable3.

4. Commercial and industrial loans ............................................................................................4.

• 5. Loans to individuals for household, family, and other personal expenditures:

  • a. Credit cards ....................................................................................................................5.a.

  • b. Automobile loans ............................................................................................................5.b.

  • c. Other (includes revolving credit plans other than credit cards and other consumer loans) .................................................................................................................................

• 6. Not applicable

• 7. All other loans2 ......................................................................................................................7.

• 8. Lease financing receivables ...................................................................................................8.

• 9. Total (sum of items 1 through 8) ............................................................................................9.

1. Loans to finance commercial real estate, construction, and land development activities (not secured by real estate) included in Schedule RI-B, Part I, items 4 and 7, above ......................

2. Not applicable

Memorandum item 3 are to be completed by:

* banks with $300 million or more in total assets, and

* banks with less than $300 million in total assets that have loans to finance agricultural production and other loans to farmers (Schedule RC-C, Part I, item 3) exceeding 5 percent of total loans

3. Loans to finance agricultural production and other loans to farmers (included in Schedule RI-B, Part I, item 7, above)2 .......................................................................................................

1.c.

RIADC891	0	RIADC892	0
RIADC893	0	RIADC894	0
RIAD3584	0	RIAD3585	0
RIAD5411	0	RIAD5412	0
RIADC234	0	RIADC217	0
RIADC235	0	RIADC218	0
RIAD3588	0	RIAD3589	0
RIADC895	0	RIADC896	0
RIADC897	0	RIADC898	0
RIAD4638	27	RIAD4608	5
RIADB514	0	RIADB515	2
RIADK129	55	RIADK133	9
RIADK205	0	RIADK206	0
RIAD4644	107	RIAD4628	59
RIAD4266	0	RIAD4267	0
RIAD4635	189	RIAD4605	75
RIAD5409	0	RIAD5410	0
RIAD4655	0	RIAD4665	0

1.

1.a.

1.c.1.

1.c.2.

1.e.

5.

5.c.

6.

M.1.

M.2.

M.3.

• 2. Includes charge-offs and recoveries on "Loans to depository institutions and acceptances of other banks," "Loans to finance agricultural production and other loans to farmers," "Obligations (other than securities and leases) of states and political subdivisions in the U.S.," and "Loans to nondepository financial institutions and other loans."

• 2. The $300 million asset-size test and the 5 percent of total loans test are based on the total assets and total loans reported on the June 30, 2018, Report of Condition.

CASHMERE VALLEY BANK	FFIEC 051
RSSD-ID 574976	Report Date 3/31/2022
Last Updated on 4/27/2022	11

Schedule RI-B Part II - Changes in Allowances for Credit Losses(Form Type - 051)

Dollar amounts in thousands

1. Balance most recently reported for the December 31, 2021, Reports of Condition and Income (i.e., after adjustments from amended Reports of Income) .............................................................................................................

2. Recoveries (column A must equal Part I, item 9, column B, above) .............2.

3. LESS: Charge-offs (column A must equal Part I, item 9, column A, above less Schedule RI-B, Part II, item 4, column A) .................................................

• 4. LESS: Write-downs arising from transfers of financial assets3 .....................4.

• 5. Provisions for credit losses4 .........................................................................5.

• 6. Adjustments (see instructions for this schedule)* .........................................6.

7. Balance end of current period (sum of items 1, 2, 5, and 6, less items 3 and 4) (column A must equal Schedule RC, item 4.c) .............................................

1.

RIADB522	13,774	RIADJH88	NR	RIADJH94	NR
RIAD4605	75	RIADJH89	NR	RIADJH95	NR
RIADC079	189	RIADJH92	NR	RIADJH98	NR
RIAD5523	0	RIADJJ00	NR	RIADJJ01	NR
RIAD4230	47	RIADJH90	NR	RIADJH96	NR
RIADC233	0	RIADJH91	NR	RIADJH97	NR
RIAD3123	13,707	RIADJH93	NR	RIADJH99	NR

3.

7.

Dollar amounts in thousands

• 1. Not applicable

• 2. Not applicable

• 3. Not applicable

• 4. Not applicable

• 5. Provisions for credit losses on other financial assets measured at amortized cost (not included in item 5, above)1...M.5.

• 6. Allowance for credit losses on other financial assets measured at amortized cost (not included in item 7, above)1...M.6.

• 7. Provisions for credit losses on off-balance-sheet credit exposures .............................................................................M.7.

  M.4.

  RIADJJ02	NR
  RCONJJ03	NR
  RIADMG93	NR

  M.1.

  M.2.

  M.3.

  • 3. Institutions that have not yet adopted ASU 2016-13 should report write-downs arising from transfers of loans to a held-for-sale account in item 4, column A.

  • 4. Institutions that have not yet adopted ASU 2016-13 should report the provision for loan and lease losses in item 5, column A and the amount reported must equal Schedule RI, item 4.

  • *. Describe on Schedule RI-E - Explanations.

  • 1. Memorandum items 5, 6, and 7 are to be completed only by institutions that have adopted ASU 2016-13.

  • 1. Memorandum items 5, 6, and 7 are to be completed only by institutions that have adopted ASU 2016-13.