Regsmart

Risk Assessment Executive Summary

First Austin National Bank

Report Date : August 29, 2017

Effective Date : June 30, 1917

Composite Risk :

Categorical Analysis and Detail

Category	Category Risk
Historical & Operational Data	Moderate
Geographical Data	Low
Products & Services	Low
Customer Base	Moderate
Personnel & Training	Moderate
BSA Compliance Administration	Moderate

Operational and Historical Categorical Risk :

Categorical Analysis and Detail

	One Year Ago	Effective Date	Growth Rate	Inherent Risk	Mitigating Controls & Compliance Commentary	P&P Document	Residual Risk	RegSmart Commentary Collapsable--Not in PDF Report
Asset Size	340	360	N/A		N/A	N/A	N/A
Asset Growth Rate	N/A	N/A	4.41%		N/A	N/A	N/A
Number of Deposit Accounts	12000	13000	6.25%	N/A	N/A	N/A	N/A
Average Size of Deposit Accounts	5000	5300	-1.00%	N/A	N/A	N/A	N/A
Number of Loans	10000	11500	12.50%	N/A	N/A	N/A	N/A
Number of CTRs	14	17	21.43%		N/A	N/A	N/A
Number of SARs	13	15	15%		N/A	N/A	N/A

Geography Categorical Risk :

Categorical Analysis and Detail

Geography	Inherent Risk	Mitigating Controls & Commentary	P&P Document	P&P Section Reference	Residual Risk
Locations in HIDTAs		Some Control	AML Program P&P	Page 15
Locations in HIFCAs		Some Control	AML Program P&P	Pg 15
Do you flag transactions to and from high risk locations?		Some Control	AML Program P&P	Page 15
Do you make required determinations about your customers' business?		N/A	N/A	N/A	N/A

Geography Categorical Risk :

Categorical Analysis and Detail

	Products & Services	Inherent Risk	Mitigating Controls & Other Items that indicate reduced Residual Risk for this Item	P&P References	P&P Section Reference	Residual Risk
	Locations in HIDTAs		MC-01: You have a process for identifying existing and emerging BSA/AML related risk MC-02: Your employees are trained on BSA/AML Risk MC-25: You prohibit international transactions in high risk countries MC-34: You conduct risk-based CDD at account opening MC-39: You monitor the volume and velocity of funds MC-54: You apply EDD If a high risk jurisdiction or customer is involved OF-01: You compare all known parties to the OFAC list MC-64: You have a process to ensure identifying information is obtained BEFORE account is opened MC-65: You collect identifying information no later than 30 days after account is opened MC-69: This product is covered in your Red Flag Program MC-72: You VERIFY the customer's identity and resolve any discrepancies BEFORE the account is opened	AML Program P&P	Page 30

Quantity of Risk Matrix:

Categorical Analysis and Detail

Products
	Transaction Details			Country Details
Products	Total # of Accounts	Total Outstanding Balance (in thousands)	Estimated/ Verified	Country	Average # of Daily Transactions	Average $ of Daily Transactions
Demand Deposit Accounts	1000	900	Estimated	United States	10000	100000

Products
	Transaction Details			Country Details
Customers	Total # of Accounts	Total Outstanding Balance (in thousands)	Estimated/ Verified	Country	Average # of Daily Transactions	Average $ of Daily Transactions
Demand Deposit Accounts	1000	900	Estimated	United States	10000	100000

Customer Base Catagorical Risk :

Categorical Analysis and Detail

	Customer Profile	Inherent Risk	Mitigating Controls & Other Items that indicate reduced Residual Risk for this Item	P&P References	P&P Section Reference	Residual Risk
	Jewelry, Watch, Precious Stone, and Precious Metal Merchant Wholesalers		MC-76: You conduct risk-based CDD on Principals of the entity MC-75: You identify beneficial owners MC-78: You consider geographic proximity to your location MC-79: You assess customer risk MC-82: The extent and frequency of monitoring is based on risk	AML Program P&P	Page 15

Composite Risk :

Categorical Analysis and Detail

Personnel	Location	Area	Turnover Rate	Inherent Risk
	First Austin National Bank - Balconies Dr.	Teller Line Turnover Rate	40
	First Austin National Bank - Main Ave., Lakeway	BSA Staff Turnover Rate	33

Composite Risk :

BSA Administration Catagorical Risk :

BSA Administration	Inherent Risk
BSA Officer has other responsibilities that may impair BSA duties	Moderate