Firm Description ALM First Financial Advisors, LLC was founded in 1995. As a financial advisory firm, we provide consulting, non-discretionary and discretionary investment and financial management services primarily for financial institutions. Investment advice is designed to comply with applicable industry, State and Federal regulations. ALM First Financial Advisors, LLC is a fee based investment and financial management firm. We do not sell financial products or securities. We have no affiliation with entities that sell financial products or securities. We do not accept commissions in any form and we do not accept finder’s fees. Principal Owners ALM First Financial Advisors, LLC is wholly held by its parent, ALM First Group LLC. ALM First Group, LLC is a Delaware limited liability company with a principal office in Dallas, Texas. ALM First Group, LLC is principally owned by CEO Emily Moré Hollis and Platform ALM Holdings, LLC, an entity which is owned primarily by other employees of ALM First Financial Advisors and its affiliates. Types of Advisory Services ALM First Financial Advisors, LLC offers financial advisory services, both investment and balance sheet advisory services, for financial institutions; primarily credit unions and banks. Investment advisory services are provided predominately on a non-discretionary basis. This means that the CFO or other designated officer at the client approves each trade or strategy before we execute. We do also offer a discretionary portfolio management service, for the investment companies we advise, and certain other account strategies. Our investment advice is primarily in fixed income securities, with some equity exposure via Exchange Traded Funds. Types of securities or obligations we manage include, but are not limited to: U.S. Treasury securities, U.S. Government Agency and Sponsored Entity securities, Agency and Non- Agency Mortgage Backed Securities, Taxable and Non-Taxable Municipal securities, Collateralized Mortgage Obligations, Real Estate Mortgage Investment Conduits, Asset-Backed securities, Asset-Backed and Municipal Auction Rate securities, Corporate Bonds, Commercial Paper, Mutual Funds, CD’s and other bank deposits, interest rate caps and floors, interest rate swaps, and interest rate futures. We do not advise on or manage equities, equity like securities, or Initial public offerings (IPOs) other than Mutual Funds and ETFs which we may purchase to give certain clients equity exposure. Some clients may choose to utilize certain insurance products, including Stable Value Annuity products, which we manage for a fee. 1) Premier level advisory service:
• Investment and Asset/Liability Management Policy Review
• Investment Execution and advice
• Portfolio Structuring and Strategy Development
• Asset/Liability Management
• Investment Product Education
• Investment Portfolio Monitoring and Reporting
• ALM on Demand Initially in this service, we review the client’s investment and asset/liability policies and recommend appropriate adjustments as necessary. We meet with management to elicit information on the types of investments the institution uses and educate them on the securities they hold or have an interest in holding. Periodically, we hold additional meetings to ensure on- going monitoring of the policies considering changing market conditions. We also provide Asset/Liability management (A/LM) service. We use financial modeling to analyze the client’s assets and liabilities in a traditional ALM framework. We perform net interest income and economic value of capital simulations to define the amount of interest rate risk on their balance sheet. We use this evaluation of the balance sheet to structure an investment portfolio managing this risk in accordance with their risk allowances while seeking incremental investment return or yield to enhance the overall return on their assets. Following a review and any adjustments of our client’s investment and asset/liability management policies and consideration of their current portfolio and of economic conditions, we design a proposed portfolio structure and investment strategy appropriate to their balance sheet. We then manage the client’s investment portfolio on a non-discretionary basis in accordance with this strategy. This strategy generally is reviewed and, if appropriate, revisions suggested at least every three months. Our clients receive a quarterly report which includes:
• Current Portfolio Review
• Investment Strategy
• ALM Analysis
• Economic Analysis
• Interest Rate Shock Report Using our portfolio accounting system, we also provide a monthly report to our clients which includes:
• a listing of securities holdings
• transactions
• book value accruals and principal payments
• interest accruals, payments and receivable amounts
• cash flow projections We also provide clients an ALM on Demand service. This service allows them to analyze different scenarios using ALM First’s modeling assumptions via their secure portal on our website. With this service, we provide clients with a quick and general sense of incremental risk versus earnings of balance sheet changes. 2) Elite level advisory service:

• All the Premier level advisory services
• Hedging services
• Budgeting services
• Discretionary Investment Advisory
• ALM Validation
• Mortgage Servicing Rights Valuation
• Unlimited “what if” scenarios 3) Hedging service: For the foundation of our hedging program, we analyze the client’s balance sheet and identify the level of interest rate risk. We measure this risk against the institution’s offsetting financial support provided through earnings and capital. The models we use in this program analyze the volatility of earnings (short- term perspective) and the Economic Value or EV of capital (longer-term perspective). EV represents the net present value of all balance sheet and off-balance sheet cash flows under present and different interest rate scenarios, and is the primary modeling technique we use to determine market risk. The decision to hedge a part of the institution’s balance sheet relies on the results of the initial and ongoing EV analyses, our knowledge of the institution and its market, and our experience and understanding of valuing and managing option-embedded cash flow instruments. Hedging is used by institutions that assume interest rate risk because of their portfolio concentrations of fixed-rate real estate loans or, in the case of pre- existing conditions, other types of long-term fixed-rate investment balances, for example. Credit unions and community banks choosing to engage in interest rate derivative contracts should do so only in accordance with safe and sound business practices. We use the hedging program to limit interest rate risk exposure, not to speculate. The hedging instruments we use are interest rate swaps, interest rate caps and floors, and interest rate futures. For clients without prior experience in these instruments, we will provide educational sessions to assist management in their understanding. We require our clients review and understand all analyses we provide prior to inception of the program. And we required them to consult with their auditor to determine the hedge type (fair value, cash flow, etc.) and for hedge accounting. 4) Mortgage Pipeline Hedging Services We hedge to manage the risks involved in the mortgage pipeline. We offer the following strategy to mitigate mortgage pipeline risk:
• Hedging in the capital markets using TBA MBS (to-be-announced mortgage-backed securities) Our program typically includes these four steps:
• Developing and maintaining models and accurate data
• Creating pipeline stages and fallout ratios
• Computing the Required TBA Hedge Position
• Execution and daily rebalancing of required MBS positions 5) MSR Hedging We provide risk measurement valuation and hedging solutions to reduce the impact MSRs may have on an institution’s financial statements. Together, we hedge this risk using various financial instruments, including Treasuries (cash and futures), interest-rate derivatives, and MBS. 6) Discretionary Investment Management Service
• Investment Policy Review and Investment Product Education
• Investment Execution and Management
• Portfolio Monitoring and Reporting
• Pre-Funded employee benefit, charitable donation, and stable value annuity accounts With the Discretionary service, we first review the institution’s investment policies and procedures and, if necessary, recommend appropriate adjustments. The institution’s management then establishes the parameters by which we are to manage a part of their entire portfolio. We then manage this portfolio in accordance with all applicable industry, state and federal regulations. And we provide the same monthly reports for the part or the entire portfolio managed under this service as we provide our premier and elite level clients. Tailored Relationships The goals and objectives for each client are documented in their Investment Policy statement. Clients may impose restrictions on investing in certain securities or types of securities based either on their investment policy statements and/or their regulatory bodies. Assets under Management As of December 31, 2023, ALM First Financial Advisors, LLC managed $68,653,923,262 in asset market value for 163 clients. Advisory Service Agreement Our clients choose us to manage their assets to obtain ongoing in-depth advice and adherence to goals, strategy and regulatory requirements. The scope of work and fees for Elite, Premier, Investment Advisory, Hedging or Discretionary Investment Advisory Service Agreements are provided to the client in a written contract. Fees are listed in the contract and the contract must be signed by both the client and an officer of ALM First Financial Advisors, LLC before we begin the service. Our agreements generally have a term of one year and automatically renew for a period of one year unless we or the client provide written notice to terminate the agreement within 30 days prior to the expiration of the current year. The investment advisory services portion of our agreements may be terminated with 30 days’ notice. We bill monthly in advance. A prorated portion of any fees that had been prepaid at the date of termination of the agreement are refunded. Most fees are negotiable.