business model bank

Note:This workbook models a basic P&L with 35 line-items. The many possible combinationsof aggregation and segmentation (described below) account for most of its bulk.

This financial model depicts a commercial bank with 2 lines of business: Home Lending & Business Lending

Both lines of business have the following 3 Distribution Channels, through which they make their loans:Retail, Call Center, & WholesaleThe Home Lending business also has a 4th Distribution Channel: "Other"

Both lines of business make 3 types of loans: Conforming, Super Conforming, & FHA

In the Home Lending business, all originated loans are immediately "Held for Sale" on the secondary marketIn Business Lending, a portion of its loans are retained, or "Held for Investment", in an owned portfolio

All but the last 3 tabs comprise an integrated "top down" model, accepting high-level assumptions aboutTotal Loan Originations, Variable Costs as % of Total Loan Originations, and Fixed Cost dollar amounts

The last 3 tabs (purple-shaded "LoanOffice", "HomeExec", & "BusExec") are independent of the othersThey are self-contained "bottom-up" models, accepting base assumptions about Loan Executives and

Loan Offices to build up to a consolidated total

Model created by and copyright 2014, Scott Beber, ExcelModels.com ([email protected])

Tab: ContentsInputs and AssumptionsP&L contribution of Home Lending business unitP&L contribution of Business Lending business unitP&L contribution of both business unitsSummarize key drivers of profitabilityGuide decision-making on Loan Executive hiring and Loan Office openings

Blend Input the percentages of Loan Origination volume for both Products and Distribution Channels, in each of Home Lending, Business Lending Held-for-Sale, & Business Lending Held-for-Investment businesses.FixedInputs Input the Fixed Cost assumptions for each Distribution Channel and Corporate allocations, on a semi-variable schedule according to Loan Origination volume.VariableInputs Input the Variable Cost percentages of Loan Origination volume, for each P&L line-item, by Product and Channel,

for both Home Lending & Business Lending businesses plus Held-for-Investment/Held-for-Sale mix; Also input assumptions to calculate Interest Income, for each Jumbo ARM product.HomeLend Income Statement for the entire Home Lending business, as well as individual P&L's by Distribution Channel and by ProductBusLend Income Statement for the entire Business Lending business broken down by Held-for-Sale & Held-for-Investment, as well as individual P&L's by Distribution Channel and by Product for both Held-for-Sale & Held-for-Investment.

RollupP&L Stacked Income Statement build for Home Lending, Business Lending Held-for-Sale, Business Lending Held-for-Investment, and Consolidated.KeyMetrics Loan Origination, Variable & Fixed Cost, and Productivity metrics, and other Key Metrics, by Business, Held-for-Sale/Held-for-Investment, Channel, and Product.Breakeven Breakeven Analysis providing Loan count and Loan Origination volume required, according to the prevailing Fixed Cost structure, to achieve an EBIT of $0.00Loan Office "Bottom-up" P&L construction tool, using typical small, medium, and large Loan Office-level metrics to build a Consolidated-level Income Statement for the Home Lending business.HomeExec Evaluation tool using normalized P&L inputs to compare Loan Executive performance to Home Lending business norms, according to Loan Office size (small, medium, or large)BusExec Evaluation tool using normalized P&L inputs to compare Loan Executive performance to Business Lending business norms, according to Loan Office size (small, medium, or large)

Input the percentages of Loan Origination volume for both Products and Distribution Channels, in each of Home Lending, Business Lending Held-for-Sale, & Business Lending Held-for-Investment businesses.Input the Fixed Cost assumptions for each Distribution Channel and Corporate allocations, on a semi-variable schedule according to Loan Origination volume.

for both Home Lending & Business Lending businesses plus Held-for-Investment/Held-for-Sale mix; Also input assumptions to calculate Interest Income, for each Jumbo ARM product.

Income Statement for the entire Business Lending business broken down by Held-for-Sale & Held-for-Investment, as well as individual P&L's by Distribution Channel and by Product for both Held-for-Sale & Held-for-Investment.

Loan Origination, Variable & Fixed Cost, and Productivity metrics, and other Key Metrics, by Business, Held-for-Sale/Held-for-Investment, Channel, and Product.Breakeven Analysis providing Loan count and Loan Origination volume required, according to the prevailing Fixed Cost structure, to achieve an EBIT of $0.00"Bottom-up" P&L construction tool, using typical small, medium, and large Loan Office-level metrics to build a Consolidated-level Income Statement for the Home Lending business.Evaluation tool using normalized P&L inputs to compare Loan Executive performance to Home Lending business norms, according to Loan Office size (small, medium, or large)Evaluation tool using normalized P&L inputs to compare Loan Executive performance to Business Lending business norms, according to Loan Office size (small, medium, or large)

Note:You may change input values on this tabThe other tabs are locked for viewing only

x % All other cells update automatically.

Distribution Channel & Loan Type, Home Lending Distribution Channel & Loan Type, Business Lending

FHA 10% C'formg S. Conf. FHA

S. Conf. 20% 70% 20% 10% =100%C'formg 70%Retail 55% 38.5% 11.0% 5.5%Call Center 5% 3.5% 1.0% 0.5%Wholesale 20% 14.0% 4.0% 2.0%

Other 20% 14.0% 4.0% 2.0%

=100%

Percent of Total Loan Originations by Line of Business, Sell/Hold Strategy, Distribution Channel, and Loan Type

Note: Adjust only cells with format like this:

All other cells update automatically.

Distribution Channel & Loan Type, Business Lending Held-for-Sale



=100%

Held-for-Investment



=100%

Sell/Hold Strategy, Distribution Channel, and Loan Type

Fixed Inputs

Corporate

Monthly loan volume $0 $100,000,000 $300,000,000 $500,000,000 Number of FTE 10 20 30 40 Fully loaded $ / FTETotal corporate fixed costs $0 $0 $0 $0

RetailLoan Executive fully loaded salarySupport staff fully loaded salary $6,000 Other direct costs per Loan OfficeOther indirect costs per Loan Office $25,000 Number of Loan Executive per Loan Office 10 Number of support staff per Loan Office 5

Monthly loan volume $0 $100,000,000 $300,000,000 $500,000,000 Number of Loan Offices 1 2 3 4 Loan Executive costs $0 $0 $0 $0Support staff costs $30,000 $60,000 $90,000 $120,000Other direct costs $0 $0 $0 $0Total direct costs $30,000 $60,000 $90,000 $120,000Total indirect costs $25,000 $50,000 $75,000 $100,000

Call CenterSales Associate loaded salary $10,000 Support staff fully loaded salary $6,000

Monthly loan volume $0 $100,000,000 $300,000,000 $500,000,000 Number of Sales Associates 1 2 3 4 Number of support staff 2 3 4 5 Sales Associate costs $10,000 $20,000 $30,000 $40,000Support staff costs $12,000 $18,000 $24,000 $30,000Other direct costs $0 $0 $0 $0Total direct costs $10,000 $20,000 $30,000 $40,000Total indirect costs $2,000 $4,000 $6,000 $8,000

WholesaleSales Associate loaded salary $10,000 Support staff fully loaded salary $6,000

Monthly loan volume $0 $100,000,000 $300,000,000 $500,000,000 Number of Sales Associates 1 2 3 4

Number of support staff 2 3 4 5 Sales Associate costs $10,000 $20,000 $30,000 $40,000Support staff costs $12,000 $18,000 $24,000 $30,000Other direct costs $0 $0 $0 $0Total direct costs $10,000 $20,000 $30,000 $40,000Total indirect costs $2,000 $4,000 $6,000 $8,000

OtherSales Associate loaded salary $10,000 Support staff fully loaded salary $6,000

Monthly loan volume $0 $100,000,000 $300,000,000 $500,000,000 Number of Sales Associates 1 2 3 4 Number of support staff 2 3 4 5 Sales Associate costs $10,000 $20,000 $30,000 $40,000Support staff costs $12,000 $18,000 $24,000 $30,000Other direct costs $0 $0 $0 $0Total direct costs $10,000 $20,000 $30,000 $40,000Total indirect costs $2,000 $4,000 $6,000 $8,000

$750,000,000 $1,000,000,000 $2,000,000,000 $5,000,000,000 50 60 70 80

$0 $0 $0 $0

$750,000,000 $1,000,000,000 $2,000,000,000 $5,000,000,000 5 6 7 8

$0 $0 $0 $0$150,000 $180,000 $210,000 $240,000

$0 $0 $0 $0$150,000 $180,000 $210,000 $240,000$125,000 $150,000 $175,000 $200,000

$750,000,000 $1,000,000,000 $2,000,000,000 $5,000,000,000 5 6 7 8 6 7 8 9

$50,000 $60,000 $70,000 $80,000$36,000 $42,000 $48,000 $54,000

$0 $0 $0 $0$50,000 $60,000 $70,000 $80,000$10,000 $12,000 $14,000 $16,000

$750,000,000 $1,000,000,000 $2,000,000,000 $5,000,000,000 5 6 7 8

6 7 8 9 $50,000 $60,000 $70,000 $80,000$36,000 $42,000 $48,000 $54,000

$0 $0 $0 $0$50,000 $60,000 $70,000 $80,000$10,000 $12,000 $14,000 $16,000

$750,000,000 $1,000,000,000 $2,000,000,000 $5,000,000,000 5 6 7 8 6 7 8 9

$50,000 $60,000 $70,000 $80,000$36,000 $42,000 $48,000 $54,000

$0 $0 $0 $0$50,000 $60,000 $70,000 $80,000$10,000 $12,000 $14,000 $16,000

Variable Inputs Home Lending

LOAN TYPE

TOTALConforming

P&L Retail Call Center Wholesale OtherGross Volume $200,000,000 Origination Volume $200,000,000 $77,000,000 $7,000,000 $28,000,000 $28,000,000 Average loan size $357,500 $400,000 $350,000 $500,000 $100,000

% Held-for-Inv.Size of Exist. Portf.

Gain on Sale % 2.80% 2.50% 2.50% 2.50% 2.50%Fee/Other Income

Orig'n Fees & Pts% 0.21% 0.21% 0.21% 0.21% 0.21%Sv'cing Income % 0.04% 0.04% 0.04% 0.04% 0.04%Interest Income % 0.06% 0.06% 0.06% 0.06% 0.06%

Interest MarginNet SpreadAdd'l Cost of Funds

Def'd Fees/CostsDeferred Income%Deferred Cost %

Variable CostsLoan-related % 0.06% 0.06% 0.06% 0.06% 0.06%Leads % 0.03% 0.03% 0.03% 0.03% 0.03%Commission % 2.66% 2.66% 2.66% 2.66% 2.66%

Loan Loss Reserve % 0.175% 0.175% 0.175% 0.175% 0.175%

B17

Applies to beginning portfolio PLUS that month's originations

B20

Applies to that month's ORIGINATED loans (not entire Portfolio Balance)

Home Lending

LOAN TYPESuper Conforming FHA

Retail Call Center Wholesale Other Retail Call Center Wholesale Other

$22,000,000 $2,000,000 $8,000,000 $8,000,000 $11,000,000 $1,000,000 $4,000,000 $4,000,000 $400,000 $350,000 $500,000 $100,000 $400,000 $350,000 $500,000 $100,000

4.00% 4.00% 4.00% 4.00% 2.50% 2.50% 2.50% 2.50%

0.21% 0.21% 0.21% 0.21% 0.21% 0.21% 0.21% 0.21%0.04% 0.04% 0.04% 0.04% 0.04% 0.04% 0.04% 0.04%0.06% 0.06% 0.06% 0.06% 0.06% 0.06% 0.06% 0.06%

0.06% 0.06% 0.06% 0.06% 0.06% 0.06% 0.06% 0.06%0.03% 0.03% 0.03% 0.03% 0.03% 0.03% 0.03% 0.03%2.66% 2.66% 2.66% 2.66% 2.66% 2.66% 2.66% 2.66%

0.175% 0.175% 0.175% 0.175% 0.175% 0.175% 0.175% 0.175%

Business Lending

Held-for-SaleTOTAL Conforming Super Conforming

Held-for-Sale Held-for-Inv Retail Call Center Wholesale Retail Call Center$150,000,000 $100,000,500 $49,999,500 $1,250,006 $250,001 $3,500,017 $6,250,031 $1,250,006

$185,000 $185,000 $300,000 $100,000 $150,000 $300,000 $100,000 33.3%

Beg. Bal → $200,000,000 2.88% 2.50% 2.50% 2.50% 4.00% 4.00%

0.21% 0.20% 0.19% 0.18% 0.21% 0.21%0.05% 0.17% 0.16% 0.15% 0.04% 0.04%0.07% 0.14% 0.13% 0.12% 0.06% 0.06%

3.68%0.00%

0.70%0.08%

0.06% 0.06% 0.06% 0.06% 0.06% 0.06% 0.06%0.03% 0.09% 0.03% 0.03% 0.03% 0.03% 0.03%1.40% 1.40% 3.85% 3.05% 0.40% 3.85% 3.05%

0.175% 0.200% 0.175% 0.175% 0.175% 0.175% 0.175%

Business Lending

Held-for-Sale Held-for-InvestmentSuper Conforming FHA Conforming

Wholesale Retail Call Center Wholesale Retail Call Center Wholesale

$17,500,088 $17,500,088 $3,500,017 $49,000,245 $624,994 $124,999 $1,749,982 $150,000 $300,000 $100,000 $150,000 $300,000 $100,000 $150,000

$3,124,994 $624,999 $8,749,982 4.00% 2.50% 2.50% 2.50%

0.21% 0.21% 0.21% 0.21%0.04% 0.04% 0.04% 0.04%0.06% 0.06% 0.06% 0.06%

3.68% 3.68% 3.68%0.00% 0.000% 0.000%

0.70% 0.70% 0.70%0.08% 0.08% 0.08%

0.06% 0.06% 0.06% 0.06% 0.06% 0.06% 0.06%0.03% 0.03% 0.03% 0.03% 0.09% 0.09% 0.09%0.40% 3.85% 3.05% 0.40% 3.85% 3.05% 0.40%

0.175% 0.175% 0.175% 0.175% 0.200% 0.200% 0.200%

Business Lending

Held-for-InvestmentSuper Conforming FHA

Retail Call Center Wholesale Retail Call Center Wholesale

$3,124,969 $624,994 $8,749,913 $8,749,913 $1,749,982 $24,499,755 $300,000 $100,000 $150,000 $300,000 $100,000 $150,000 Mix

ATROE$15,624,969 $3,124,994 $43,749,913 $43,749,913 $8,749,982 $122,499,755 Yield

Cum LossDurationCapital %PTROENet SpreadCPR%

3.68% 3.68% 3.68% 3.68% 3.68% 3.68%0.000% 0.000% 0.000% 0.000% 0.000% 0.000%

0.70% 0.70% 0.70% 0.70% 0.70% 0.70%0.08% 0.08% 0.08% 0.08% 0.08% 0.08%

0.06% 0.06% 0.06% 0.06% 0.06% 0.06%0.09% 0.09% 0.09% 0.09% 0.09% 0.09%3.85% 3.05% 0.40% 3.85% 3.05% 0.40%

0.200% 0.200% 0.200% 0.200% 0.200% 0.200%

FHA Loan ARM Pricing3-1 5-1 7-1 10-15% 50% 25% 20% =100%

24.02% 23.85% 23.81% 23.98%3.89% 3.89% 3.89% 3.89%1.25% 1.25% 1.25% 1.25%

3.5 4.0 4.5 5.0 10% 10% 10% 10%

37.0% 36.7% 36.6% 36.9%3.71% 3.68% 3.67% 3.69%30.0% 30.0% 40.0% 40.0%

Home Lending DISTRIBUTION CHANNEL

Retail Call Center WholesaleHeld-for-Sale

Gross Volume $200,000,000 $110,000,000 $10,000,000 $40,000,000 Average loan size $357,500 $400,000 $350,000 $500,000 Gain on Sale Income $5,600,000 $3,080,000 $280,000 $1,120,000 Fee/Other Income

Orig'n Fees & Points $425,467 $234,007 $21,273 $85,093 Servicing Income $85,176 $46,847 $4,259 $17,035 Interest Income $124,206 $68,313 $6,210 $24,841

Total Fee/Other Income $634,848 $349,166 $31,742 $126,970

Total Revenue $6,234,848 $3,429,166 $311,742 $1,246,970 Variable Costs

Loan-related $117,126 $64,419 $5,856 $23,425 Leads $56,178 $30,898 $2,809 $11,236 Commissions $5,315,000 $2,923,250 $265,750 $1,063,000

Total Variable Costs $5,488,304 $3,018,567 $274,415 $1,097,661

Net Operating Margin $746,544 $410,599 $37,327 $149,309 Fixed Costs

Direct $90,000 $60,000 $10,000 $10,000 Indirect $56,000 $50,000 $2,000 $2,000 Corporate Alloc. $0 $0 $0 $0

Total Fixed Costs $146,000 $110,000 $12,000 $12,000 Total Costs $5,634,304 $3,128,567 $286,415 $1,109,661

EBIT / NOPLAT $600,544 $300,599 $25,327 $137,309

Loan Loss Reserve $350,000 $192,500 $17,500 $70,000 Net Operating Income $250,544 $108,099 $7,827 $67,309

Held-for-Sale / Held-for-Inv.

DISTRIBUTION CHANNEL LOAN TYPE

Other Conforming Super Conf'g FHA

$40,000,000 $140,000,000 $40,000,000 $20,000,000 $100,000 $357,500 $357,500 $357,500

$1,120,000 $3,500,000 $1,600,000 $500,000

$85,093 $297,827 $85,093 $42,547 $17,035 $59,623 $17,035 $8,518 $24,841 $86,944 $24,841 $12,421

$126,970 $444,394 $126,970 $63,485

$1,246,970 $3,944,394 $1,726,970 $563,485

$23,425 $81,988 $23,425 $11,713 $11,236 $39,325 $11,236 $5,618

$1,063,000 $3,720,500 $1,063,000 $531,500 $1,097,661 $3,841,813 $1,097,661 $548,830

$149,309 $102,581 $629,309 $14,654

$10,000 $63,000 $18,000 $9,000 $2,000 $39,200 $11,200 $5,600

$0 $0 $0 $0 $12,000 $102,200 $29,200 $14,600

$1,109,661 $3,944,013 $1,126,861 $563,430

$137,309 $381 $600,109 $54

$70,000 $245,000 $70,000 $35,000 $67,309 ($244,619) $530,109 ($34,946)

Business Lending DISTRIBUTION CHANNEL

Held-for-SaleHeld-for-Inv. Held-for-Sale Held-for-Inv. Retail

Gross Volume $150,000,000 $7,500,000 Origination Volume $100,000,500 $49,999,500 $25,000,125 Average loan size $185,000 $185,000 $300,000

% Held-for-Inv. 33%Size of Existing Portfolio Beg. Bal → $200,000,000 Gain on Sale Income $2,875,014 $718,754 Fee/Other Income

Orig'n Fees & Points $211,373 $53,024 Servicing Income $48,234 $12,240 Interest Income $65,273 $16,499

Total Fee/Other Income $324,879 $81,764 Interest Margin

Net Spread $9,204,190 Add'l Cost of Funds $0

Net Interest Margin $9,204,190 Def'd Fees/Costs

Deferred Income $349,997 Deferred Costs $40,000

Net Def'd Fees/Costs $309,997

Total Revenue $3,199,894 $9,514,187 $800,517 Variable Costs

Loan-related $58,563 $28,700 $14,641 Leads $28,089 $45,273 $7,022 Commissions $1,395,007 $697,493 $962,505

Total Variable Costs $1,481,659 $771,466 $984,168

Net Operating Margin $1,718,234 $8,742,721 ($183,651)Fixed Costs

Direct $50,000 $50,000 $30,000 Indirect $29,000 $29,000 $25,000 Corporate Alloc. $0 $0 $0

Total Fixed Costs $79,000 $79,000 $55,000 Total Costs $1,560,659 $850,466 $1,039,168

EBIT / NOPLAT $1,639,234 $8,663,721 ($238,651)

Loan Loss Reserve $175,001 $99,999 $43,750 Net Operating Income $1,464,234 $8,563,722 ($282,401)

Held-for-Sale / Held-for-Inv.

DISTRIBUTION CHANNEL LOAN TYPE

Held-for-Sale Held-for-Investment Held-for-SaleCall Center Wholes. Retail Call Center Wholes. Conf'g Sup.Conf'g$37,500,000 $105,000,000 $7,500,000 $37,500,000

$5,000,025 $70,000,350 $12,499,875 $2,499,975 $34,999,650 $5,000,025 $25,000,125 $100,000 $150,000 $300,000 $100,000 $150,000 $185,000 $185,000

33% 33% 33%$62,499,875 $12,499,975 $174,999,650

$143,751 $2,012,510 $125,001 $1,000,005

$10,580 $147,769 $9,275 $53,184 $2,423 $33,571 $7,775 $10,647 $3,275 $45,499 $6,275 $15,526

$16,278 $226,838 $23,325 $79,356

$2,301,048 $460,210 $6,442,933 $0 $0 $0

$2,301,048 $460,210 $6,442,933

$87,499 $17,500 $244,998 $10,000 $2,000 $28,000 $77,499 $15,500 $216,998

$160,028 $2,239,348 $2,378,547 $475,709 $6,659,931 $148,326 $1,079,361

$2,928 $40,994 $7,175 $1,435 $20,090 $2,928 $14,641 $1,404 $19,662 $11,318 $2,264 $31,691 $1,404 $7,022

$152,501 $280,001 $481,245 $76,249 $139,999 $69,750 $348,752 $156,833 $340,658 $499,739 $79,948 $191,780 $74,083 $370,415

$3,195 $1,898,690 $1,878,808 $395,761 $6,468,151 $74,243 $708,947

$10,000 $10,000 $30,000 $10,000 $10,000 $2,500 $12,500 $2,000 $2,000 $25,000 $2,000 $2,000 $1,450 $7,250

$0 $0 $0 $0 $0 $0 $0 $12,000 $12,000 $55,000 $12,000 $12,000 $3,950 $19,750

$168,833 $352,658 $554,739 $91,948 $203,780 $78,033 $390,165

($8,805) $1,886,690 $1,823,808 $383,761 $6,456,151 $70,293 $689,197

$8,750 $122,501 $25,000 $5,000 $69,999 $8,750 $43,750 ($17,555) $1,764,189 $1,798,809 $378,762 $6,386,152 $61,543 $645,446

LOAN TYPE

Held-for-Sale Held-for-InvestmentFHA Conf'g Sup.Conf'g FHA

$105,000,000 $70,000,350 $2,499,975 $12,499,875 $34,999,650

$185,000 $185,000 $185,000 $185,000 33% 33% 33%

$12,499,975 $62,499,875 $174,999,650 $1,750,009

$148,914 $29,812 $43,472

$222,198

$460,210 $2,301,048 $6,442,933 $0 $0 $0

$460,210 $2,301,048 $6,442,933

$17,500 $87,499 $244,998 $2,000 $10,000 $28,000

$15,500 $77,499 $216,998

$1,972,207 $475,709 $2,378,547 $6,659,931

$40,994 $1,435 $7,175 $20,090 $19,662 $2,264 $11,318 $31,691

$976,505 $34,875 $174,373 $488,245 $1,037,162 $38,573 $192,867 $540,026

$935,045 $437,136 $2,185,680 $6,119,905

$35,000 $2,500 $12,500 $35,000 $20,300 $1,450 $7,250 $20,300

$0 $0 $0 $0 $55,300 $3,950 $19,750 $55,300

$1,092,462 $42,523 $212,617 $595,326

$879,745 $433,186 $2,165,930 $6,064,605

$122,501 $5,000 $25,000 $69,999 $757,244 $428,186 $2,140,930 $5,994,605

Rollup P&Ls by MonthMonth 1 Month 2 Month 3

Home Lending Held-for-Sale %Gr/M: 1%Gross Volume $200,000,000 $202,000,000 $204,020,000 Average loan size $357,500 $357,500 $357,500 Gain on Sale Income $5,600,000 $5,656,000 $5,712,560 Fee/Other Income

Orig'n Fees & Points $425,467 $429,722 $434,019 Servicing Income $85,176 $86,027 $86,888 Interest Income $124,206 $125,448 $126,702

Total Fee/Other Income $634,848 $641,196 $647,608

Total Revenue $6,234,848 $6,297,196 $6,360,168 Variable Costs

Loan-related $117,126 $118,297 $119,480 Leads $56,178 $56,740 $57,307 Commissions $5,315,000 $5,368,150 $5,421,832

Total Variable Costs $5,488,304 $5,543,187 $5,598,619

Net Operating Margin $746,544 $754,009 $761,550 Fixed Costs


Total Fixed Costs $146,000 $147,460 $148,935 Total Costs $5,634,304 $5,690,647 $5,747,554

EBIT / NOPLAT $600,544 $606,549 $612,615

Loan Loss Reserve $350,000 $353,500 $357,035 Net Operating Income $250,544 $253,049 $255,580

Business Lending Held-for-Sale %Gr/M: 1%Gross Volume $150,000,000 $151,500,000 $153,015,000

% Held-for-Inv.Average loan size $185,000 $185,000 $185,000 Origination Volume $100,000,500 $101,000,505 $102,010,510 Gain on Sale Income $2,875,014 $2,903,765 $2,932,802 Fee/Other Income


Total Fee/Other Income $324,879 $328,128 $331,410

Interest MarginInterest IncomeNet Interest Exp.

Net Interest MarginDef'd Fees/Costs

Deferred IncomeDeferred Costs

Net Def'd Fees/Costs




Net Operating Margin $1,718,234 $1,735,417 $1,752,771 Fixed Costs



EBIT / NOPLAT $1,639,234 $1,655,627 $1,672,183

Loan Loss Reserve $175,001 $176,751 $178,518 Net Operating Income $1,464,234 $1,478,876 $1,493,665

Business Lending Held-for-Investment %Gr/M: 1%% Held-for-Inv. 33% 33% 33%

Average loan size $185,000 $185,000 $185,000 Origination Volume $49,999,500 $50,499,495 $51,004,490 Gain on Sale IncomeFee/Other Income

Orig'n Fees & PointsServicing IncomeInterest Income

Total Fee/Other IncomeInterest Margin

Net Spread $9,204,190 $9,296,232 $9,389,195 Add'l Cost of Funds $0 $0 $0

Net Interest Margin $9,204,190 $9,296,232 $9,389,195 Def'd Fees/Costs

Deferred Income 349996.5 353496.465 357031.42965

Deferred Costs $40,000 $40,400 $40,804 Net Def'd Fees/Costs $309,997 $313,097 $316,228


Loan-related $28,700 $28,987 $29,277 Leads $45,273 $45,726 $46,183 Commissions $697,493 $704,468 $711,513

Total Variable Costs $771,466 $779,181 $786,973



Total Fixed Costs $79,000 $79,790 $80,588 Total Costs $850,466 $858,971 $867,561

EBIT / NOPLAT $8,663,721 $8,750,358 $8,837,862


Business Lending TotalGross Volume $150,000,000 $151,500,000 $153,015,000

% Held-for-Inv. 33% 33% 33%Average loan size $185,000 $185,000 $185,000 Origination Volume $150,000,000 $151,500,000 $153,015,000 Gain on Sale Income $2,875,014 $2,903,765 $2,932,802 Fee/Other Income


Total Fee/Other Income $324,879 $328,128 $331,410 Interest Margin

Interest Income $9,204,190 $9,296,232 $9,389,195 Net Interest Exp. $0 $0 $0


Deferred Income $349,997 $353,496 $357,031 Deferred Costs $40,000 $40,400 $40,804

Net Def'd Fees/Costs $309,997 $313,097 $316,228


Loan-related $87,264 $88,136 $89,018 Leads $73,362 $74,096 $74,837

Commissions $2,092,500 $2,113,425 $2,134,559 Total Variable Costs $2,253,126 $2,275,657 $2,298,414




EBIT / NOPLAT $10,302,955 $10,405,985 $10,510,045


ROLLUP TotalGross Volume $350,000,000 $353,500,000 $357,035,000

% Held-for-Inv. 14% 14% 14%Average loan size $283,571 $283,571 $283,571 Origination Volume $350,000,000 $353,500,000 $357,035,000 Gain on Sale Income $3,509,862 $3,544,961 $3,580,411 Fee/Other Income


Total Fee/Other Income $959,727 $969,325 $979,018 Interest Margin

Interest Income $9,204,190 $9,296,232 $9,389,195 Net Interest Exp. $0 $0 $0


Deferred Income $349,997 $353,496 $357,031 Deferred Costs $40,000 $40,400 $40,804

Net Def'd Fees/Costs $309,997 $313,097 $316,228







EBIT / NOPLAT $10,903,499 $11,012,534 $11,122,660


Month 4 Month 5 Month 6 Month 7 Month 8 Month 9

$206,060,200 $208,120,802 $210,202,010 $212,304,030 $214,427,070 $216,571,341 $357,500 $357,500 $357,500 $357,500 $357,500 $357,500

$5,769,686 $5,827,382 $5,885,656 $5,944,513 $6,003,958 $6,063,998

$438,359 $442,743 $447,170 $451,642 $456,158 $460,720 $87,756 $88,634 $89,520 $90,416 $91,320 $92,233

$127,969 $129,249 $130,541 $131,847 $133,165 $134,497 $654,085 $660,625 $667,232 $673,904 $680,643 $687,449

$6,423,770 $6,488,008 $6,552,888 $6,618,417 $6,684,601 $6,751,447

$120,675 $121,882 $123,101 $124,332 $125,575 $126,831 $57,880 $58,459 $59,044 $59,634 $60,230 $60,833

$5,476,050 $5,530,810 $5,586,118 $5,641,980 $5,698,399 $5,755,383 $5,654,605 $5,711,151 $5,768,263 $5,825,945 $5,884,205 $5,943,047

$769,165 $776,857 $784,625 $792,471 $800,396 $808,400

$92,727 $93,654 $94,591 $95,537 $96,492 $97,457 $57,697 $58,274 $58,857 $59,445 $60,040 $60,640

$0 $0 $0 $0 $0 $0 $150,424 $151,928 $153,447 $154,982 $156,532 $158,097

$5,805,029 $5,863,079 $5,921,710 $5,980,927 $6,040,737 $6,101,144

$618,741 $624,928 $631,178 $637,490 $643,864 $650,303

$360,605 $364,211 $367,854 $371,532 $375,247 $379,000 $258,136 $260,717 $263,324 $265,958 $268,617 $271,303

$154,545,150 $156,090,602 $157,651,508 $159,228,023 $160,820,303 $162,428,506

$185,000 $185,000 $185,000 $185,000 $185,000 $185,000 $103,030,615 $104,060,921 $105,101,531 $106,152,546 $107,214,071 $108,286,212

$2,962,130 $2,991,751 $3,021,669 $3,051,886 $3,082,405 $3,113,229

$217,778 $219,955 $222,155 $224,377 $226,620 $228,887 $49,695 $50,192 $50,694 $51,201 $51,713 $52,230 $67,251 $67,923 $68,603 $69,289 $69,981 $70,681

$334,724 $338,071 $341,452 $344,866 $348,315 $351,798

$3,296,854 $3,329,822 $3,363,121 $3,396,752 $3,430,719 $3,465,026

$60,338 $60,941 $61,551 $62,166 $62,788 $63,416 $28,940 $29,230 $29,522 $29,817 $30,115 $30,417

$1,437,277 $1,451,650 $1,466,166 $1,480,828 $1,495,636 $1,510,593 $1,526,555 $1,541,821 $1,557,239 $1,572,811 $1,588,539 $1,604,425

$1,770,299 $1,788,002 $1,805,882 $1,823,940 $1,842,180 $1,860,602

$51,515 $52,030 $52,551 $53,076 $53,607 $54,143 $29,879 $30,178 $30,479 $30,784 $31,092 $31,403

$0 $0 $0 $0 $0 $0 $81,394 $82,208 $83,030 $83,860 $84,699 $85,546

$1,607,949 $1,624,028 $1,640,269 $1,656,671 $1,673,238 $1,689,971

$1,688,905 $1,705,794 $1,722,852 $1,740,080 $1,757,481 $1,775,056

$180,304 $182,107 $183,928 $185,767 $187,625 $189,501 $1,508,601 $1,523,687 $1,538,924 $1,554,313 $1,569,857 $1,585,555

33% 33% 33% 33% 33% 33%$185,000 $185,000 $185,000 $185,000 $185,000 $185,000

$51,514,535 $52,029,680 $52,549,977 $53,075,477 $53,606,232 $54,142,294

$9,483,087 $9,577,917 $9,673,697 $9,770,434 $9,868,138 $9,966,819 $0 $0 $0 $0 $0 $0

$9,483,087 $9,577,917 $9,673,697 $9,770,434 $9,868,138 $9,966,819

360601.7439465 364207.761386 367849.8389998 371528.3373898 375243.6207637 378996.0569714

$41,212 $41,624 $42,040 $42,460 $42,885 $43,314 $319,390 $322,584 $325,810 $329,068 $332,359 $335,682

$9,802,477 $9,900,501 $9,999,506 $10,099,501 $10,200,497 $10,302,501

$29,570 $29,866 $30,164 $30,466 $30,771 $31,078 $46,645 $47,111 $47,582 $48,058 $48,539 $49,024

$718,628 $725,814 $733,072 $740,403 $747,807 $755,285 $794,842 $802,791 $810,819 $818,927 $827,116 $835,387

$9,007,634 $9,097,711 $9,188,688 $9,280,574 $9,373,380 $9,467,114

$51,515 $52,030 $52,551 $53,076 $53,607 $54,143 $29,879 $30,178 $30,479 $30,784 $31,092 $31,403

$0 $0 $0 $0 $0 $0 $81,394 $82,208 $83,030 $83,860 $84,699 $85,546

$876,236 $884,999 $893,849 $902,787 $911,815 $920,933

$8,926,240 $9,015,503 $9,105,658 $9,196,714 $9,288,682 $9,381,568

$103,029 $104,059 $105,100 $106,151 $107,212 $108,285 $8,823,211 $8,911,443 $9,000,558 $9,090,563 $9,181,469 $9,273,284

$154,545,150 $156,090,602 $157,651,508 $159,228,023 $160,820,303 $162,428,506 33% 33% 33% 33% 33% 33%

$185,000 $185,000 $185,000 $185,000 $185,000 $185,000 $154,545,150 $156,090,602 $157,651,508 $159,228,023 $160,820,303 $162,428,506

$2,962,130 $2,991,751 $3,021,669 $3,051,886 $3,082,405 $3,113,229

$217,778 $219,955 $222,155 $224,377 $226,620 $228,887 $49,695 $50,192 $50,694 $51,201 $51,713 $52,230 $67,251 $67,923 $68,603 $69,289 $69,981 $70,681

$334,724 $338,071 $341,452 $344,866 $348,315 $351,798

$9,483,087 $9,577,917 $9,673,697 $9,770,434 $9,868,138 $9,966,819 $0 $0 $0 $0 $0 $0

$9,483,087 $9,577,917 $9,673,697 $9,770,434 $9,868,138 $9,966,819

$360,602 $364,208 $367,850 $371,528 $375,244 $378,996 $41,212 $41,624 $42,040 $42,460 $42,885 $43,314

$319,390 $322,584 $325,810 $329,068 $332,359 $335,682

$13,099,330 $13,230,324 $13,362,627 $13,496,253 $13,631,216 $13,767,528

$89,908 $90,807 $91,715 $92,632 $93,558 $94,494 $75,585 $76,341 $77,104 $77,875 $78,654 $79,441

$2,155,905 $2,177,464 $2,199,239 $2,221,231 $2,243,443 $2,265,878 $2,321,398 $2,344,612 $2,368,058 $2,391,738 $2,415,656 $2,439,812

$10,777,933 $10,885,712 $10,994,569 $11,104,515 $11,215,560 $11,327,716

$103,030 $104,060 $105,101 $106,152 $107,214 $108,286 $59,757 $60,355 $60,959 $61,568 $62,184 $62,806

$0 $0 $0 $0 $0 $0 $162,788 $164,415 $166,060 $167,720 $169,397 $171,091

$2,484,185 $2,509,027 $2,534,117 $2,559,459 $2,585,053 $2,610,904

$10,615,145 $10,721,297 $10,828,510 $10,936,795 $11,046,163 $11,156,624

$283,333 $286,166 $289,028 $291,918 $294,837 $297,785 $10,331,813 $10,435,131 $10,539,482 $10,644,877 $10,751,326 $10,858,839

$360,605,350 $364,211,404 $367,853,518 $371,532,053 $375,247,373 $378,999,847 14% 14% 14% 14% 14% 14%

$283,571 $283,571 $283,571 $283,571 $283,571 $283,571 $360,605,350 $364,211,404 $367,853,518 $371,532,053 $375,247,373 $378,999,847

$3,616,215 $3,652,377 $3,688,901 $3,725,790 $3,763,048 $3,800,678

$656,137 $662,698 $669,325 $676,018 $682,779 $689,606 $137,452 $138,826 $140,214 $141,616 $143,033 $144,463 $195,220 $197,172 $199,144 $201,135 $203,147 $205,178 $988,808 $998,696 $1,008,683 $1,018,770 $1,028,958 $1,039,247

$9,483,087 $9,577,917 $9,673,697 $9,770,434 $9,868,138 $9,966,819 $0 $0 $0 $0 $0 $0

$9,483,087 $9,577,917 $9,673,697 $9,770,434 $9,868,138 $9,966,819

$360,602 $364,208 $367,850 $371,528 $375,244 $378,996 $41,212 $41,624 $42,040 $42,460 $42,885 $43,314

$319,390 $322,584 $325,810 $329,068 $332,359 $335,682

$19,523,101 $19,718,332 $19,915,515 $20,114,670 $20,315,817 $20,518,975

$210,583 $212,689 $214,815 $216,964 $219,133 $221,325 $133,465 $134,800 $136,148 $137,510 $138,885 $140,273

$7,631,955 $7,708,274 $7,785,357 $7,863,211 $7,941,843 $8,021,261 $7,976,003 $8,055,763 $8,136,320 $8,217,684 $8,299,860 $8,382,859

$11,547,098 $11,662,569 $11,779,194 $11,896,986 $12,015,956 $12,136,116

$195,757 $197,715 $199,692 $201,689 $203,706 $205,743 $117,454 $118,629 $119,815 $121,013 $122,223 $123,446

$0 $0 $0 $0 $0 $0 $313,212 $316,344 $319,507 $322,702 $325,929 $329,188

$8,289,214 $8,372,106 $8,455,827 $8,540,386 $8,625,790 $8,712,047

$11,233,886 $11,346,225 $11,459,687 $11,574,284 $11,690,027 $11,806,927

$643,938 $650,377 $656,881 $663,450 $670,084 $676,785 $10,589,948 $10,695,848 $10,802,806 $10,910,834 $11,019,943 $11,130,142

Month 10 Month 11 Month 12 YEAR 1

$218,737,055 $220,924,425 $223,133,669 $2,536,500,603 $357,500 $357,500 $357,500 $357,500

$6,124,638 $6,185,884 $6,247,743 $71,022,017

$465,327 $469,980 $474,680 $5,395,987 $93,155 $94,087 $95,028 $1,080,239

$135,842 $137,200 $138,572 $1,575,237 $694,324 $701,267 $708,280 $8,051,462

$6,818,961 $6,887,151 $6,956,023 $79,073,479

$128,099 $129,380 $130,674 $1,485,451 $61,441 $62,055 $62,676 $712,478

$5,812,937 $5,871,067 $5,929,777 $67,407,504 $6,002,477 $6,062,502 $6,123,127 $69,605,432

$816,484 $824,649 $832,896 $9,468,047

$98,432 $99,416 $100,410 $1,141,425 $61,246 $61,859 $62,477 $710,220

$0 $0 $0 $0 $159,678 $161,275 $162,888 $1,851,645

$6,162,155 $6,223,777 $6,286,015 $71,457,077

$656,806 $663,374 $670,008 $7,616,401

$382,790 $386,618 $390,484 $4,438,876 $274,016 $276,756 $279,524 $3,177,525

$164,052,791 $165,693,319 $167,350,252 $1,902,375,452

$185,000 $185,000 $185,000 $185,000 $109,369,074 $110,462,765 $111,567,393 $1,268,256,643

$3,144,361 $3,175,804 $3,207,563 $36,462,378

$231,175 $233,487 $235,822 $2,680,737 $52,752 $53,280 $53,813 $611,723 $71,388 $72,102 $72,823 $827,824

$355,316 $358,869 $362,458 $4,120,284

$3,499,677 $3,534,673 $3,570,020 $40,582,663

$64,050 $64,690 $65,337 $742,729 $30,721 $31,028 $31,338 $356,241

$1,525,699 $1,540,956 $1,556,365 $17,692,180 $1,620,469 $1,636,674 $1,653,041 $18,791,150

$1,879,208 $1,898,000 $1,916,980 $21,791,513

$54,684 $55,231 $55,783 $634,125 $31,717 $32,034 $32,354 $367,793

$0 $0 $0 $0 $86,401 $87,265 $88,138 $1,001,918

$1,706,870 $1,723,939 $1,741,178 $19,793,068

$1,792,807 $1,810,735 $1,828,842 $20,789,595

$191,396 $193,310 $195,243 $2,219,449 $1,601,411 $1,617,425 $1,633,599 $18,570,146

33% 33% 33% 33%$185,000 $185,000 $185,000 $185,000

$54,683,717 $55,230,554 $55,782,859 $634,118,809

$10,066,487 $10,167,152 $10,268,824 $116,732,172 $0 $0 $0 $0

$10,066,487 $10,167,152 $10,268,824 $116,732,172

382786.0175411 386613.8777165 390480.0164936 4438831.665858

$43,747 $44,184 $44,626 $507,295 $339,039 $342,429 $345,854 $3,931,537

$10,405,526 $10,509,582 $10,614,678 $120,663,709

$31,389 $31,703 $32,020 $363,991 $49,514 $50,010 $50,510 $574,176

$762,838 $770,466 $778,171 $8,845,957 $843,741 $852,179 $860,701 $9,784,123

$9,561,785 $9,657,403 $9,753,977 $110,879,585

$54,684 $55,231 $55,783 $634,125 $31,717 $32,034 $32,354 $367,793

$0 $0 $0 $0 $86,401 $87,265 $88,138 $1,001,918

$930,142 $939,444 $948,838 $10,786,041

$9,475,384 $9,570,138 $9,665,839 $109,877,667

$109,367 $110,461 $111,566 $1,268,238 $9,366,017 $9,459,677 $9,554,274 $108,609,430

$164,052,791 $165,693,319 $167,350,252 $1,902,375,452 33% 33% 33% 33%

$185,000 $185,000 $185,000 $185,000 $164,052,791 $165,693,319 $167,350,252 $1,902,375,452

$3,144,361 $3,175,804 $3,207,563 $36,462,378

$231,175 $233,487 $235,822 $2,680,737 $52,752 $53,280 $53,813 $611,723 $71,388 $72,102 $72,823 $827,824

$355,316 $358,869 $362,458 $4,120,284

$10,066,487 $10,167,152 $10,268,824 $116,732,172 $0 $0 $0 $0

$10,066,487 $10,167,152 $10,268,824 $116,732,172

$382,786 $386,614 $390,480 $4,438,832 $43,747 $44,184 $44,626 $507,295

$339,039 $342,429 $345,854 $3,931,537

$13,905,203 $14,044,255 $14,184,698 $161,246,371

$95,439 $96,393 $97,357 $1,106,720 $80,235 $81,037 $81,848 $930,416

$2,288,536 $2,311,422 $2,334,536 $26,538,138 $2,464,210 $2,488,852 $2,513,741 $28,575,273

$11,440,993 $11,555,403 $11,670,957 $132,671,098

$109,369 $110,462 $111,567 $1,268,250 $63,434 $64,068 $64,709 $735,585

$0 $0 $0 $0 $172,802 $174,530 $176,276 $2,003,835

$2,637,013 $2,663,383 $2,690,017 $30,579,109

$11,268,191 $11,380,872 $11,494,681 $130,667,263

$300,763 $303,771 $306,809 $3,487,687 $10,967,427 $11,077,102 $11,187,873 $127,179,576

$382,789,845 $386,617,744 $390,483,921 $4,438,876,055 14% 14% 14% 14%

$283,571 $283,571 $283,571 $283,571 $382,789,845 $386,617,744 $390,483,921 $4,438,876,055

$3,838,685 $3,877,072 $3,915,842 $44,513,840

$696,502 $703,467 $710,502 $8,076,724 $145,908 $147,367 $148,840 $1,691,961 $207,230 $209,302 $211,395 $2,403,061

$1,049,640 $1,060,136 $1,070,738 $12,171,746

$10,066,487 $10,167,152 $10,268,824 $116,732,172 $0 $0 $0 $0

$10,066,487 $10,167,152 $10,268,824 $116,732,172

$382,786 $386,614 $390,480 $4,438,832 $43,747 $44,184 $44,626 $507,295

$339,039 $342,429 $345,854 $3,931,537

$20,724,165 $20,931,406 $21,140,720 $240,319,850

$223,538 $225,773 $228,031 $2,592,171 $141,676 $143,093 $144,524 $1,642,894

$8,101,474 $8,182,488 $8,264,313 $93,945,641 $8,466,688 $8,551,355 $8,636,868 $98,180,705

$12,257,477 $12,380,052 $12,503,852 $142,139,145

$207,800 $209,878 $211,977 $2,409,676 $124,680 $125,927 $127,186 $1,445,805

$0 $0 $0 $0 $332,480 $335,805 $339,163 $3,855,481

$8,799,168 $8,887,160 $8,976,031 $102,036,186

$11,924,997 $12,044,247 $12,164,689 $138,283,664

$683,553 $690,389 $697,293 $7,926,563 $11,241,444 $11,353,858 $11,467,397 $130,357,101

Key Metrics

HOME LENDING DISTRIBUTION CHANNELKey Metrics TOTAL Retail Call Center Wholesale

VolumeLoan Count 559 275 29 80 Origination Volume $200,000,000 $110,000,000 $10,000,000 $40,000,000 Average Loan Size $357,500 $400,000 $350,000 $500,000

CostsVariable Cost % 2.744% 2.744% 2.744% 2.744%Fixed Cost % 0.073% 0.100% 0.120% 0.030%

Direct 0.045% 0.055% 0.100% 0.025%Indirect 0.028% 0.045% 0.020% 0.005%Corp. Allocation 0.000% 0.000% 0.000% 0.000%

Key MeasurementsFee/Other Income % 0.32% 0.32% 0.32% 0.32%

Net Cost to Originate $5,152,837 $2,844,560 $263,142 $1,022,567 Net Cost to Originate/Loan $9,211 $10,344 $9,210 $12,782

Personnel Expenses $5,315,000 $2,923,250 $265,750 $1,063,000 Personnel Expenses/Loan $9,501 $10,630 $9,301 $13,288 Gain on Sale % 2.80% 2.80% 2.80% 2.80%Net Interest Margin %Production Expense $5,634,304 $3,128,567 $286,415 $1,109,661

Avg Production Profit % 0.38% 0.38% 0.38% 0.38%Avg Production Profit $760,000 $418,000 $38,000 $152,000

DISTRIBUTION CHANNELFixed Costs TOTAL Retail Call Center Wholesale

Direct $90,000 $60,000 $10,000 $10,000 Indirect $56,000 $50,000 $2,000 $2,000 Corporate Alloc. $0 $0 $0 $0 Total $146,000 $110,000 $12,000 $12,000

ProductivityLoans 559 275 29 80 Loan Offices 2 2 n/a n/a

Volume/Loan Office $100,000,000 $55,000,000 n/a n/aLoans/Loan Office 280 138 n/a n/a

Loan Executives 23 20 1 1 Loan Exec. Salary $4,500 $0 $10,000 $10,000 Volume/Loan Exec. $200,000,000 $110,000,000 $10,000,000 $40,000,000 Loans/Loan Exec. 24 $14 $29 $80 Loan Exec./Loan Office 12 10 n/a n/a

B16

Held-for-Investment = (Deferred Income + Interest Income) / Origination

B17

Held-for-Investment = VC + Direct Fixed - Deferred Income

B23

Variable Costs + (Fixed Costs excluding Corporate Overhead allocation)

Supporting FTEs 16 10 2 2 Average FTE Salary $6,000 $6,000 $6,000 $6,000 FTE/Loan Office 8 5 n/a n/aFTE/Loan Exec. 1 1 2 2

DISTRIBUTION CHANNELBUSINESS LENDING TOTAL Retail

Key Metrics Held-for-Sale Held-for-Inv. Held-for-Sale Held-for-Inv.Volume

Loan Count 541 270 83 42 Origination Volume $100,000,500 $49,999,500 $25,000,125 $12,499,875 Average Loan Size $185,000 $185,000 $300,000 $300,000

CostsVariable Cost % 1.482% 1.543% 3.937% 3.998%Fixed Cost % 0.079% 0.158% 0.220% 0.440%

Direct 0.050% 0.100% 0.120% 0.240%Indirect 0.029% 0.058% 0.100% 0.200%Corp. Allocation 0.000% 0.000% 0.000% 0.000%

Key MeasurementsFee/Other Income % 0.32% 19.11% 0.33% 19.11%

Net Cost to Originate $1,320,287 $471,470 $961,143 $442,239 Net Cost to Originate/Loan $2,443 $1,744 $11,534 $10,614

Personnel Expenses $1,395,007 $697,493 $962,505 $481,245 Personnel Expenses/Loan $2,581 $2,581 $11,550 $11,550 Gain on Sale % 2.88% 2.88%Net Interest Margin % 18.41% 18.41%Production Expense $1,560,659 $850,466 $1,039,168 $554,739

Avg Production Profit % 0.38% 0.38% 0.38% 0.38%Avg Production Profit $380,002 $189,998 $95,000 $47,500

DISTRIBUTION CHANNELTOTAL Retail

Fixed Costs Held-for-Sale Held-for-Inv. Held-for-Sale Held-for-Inv.Direct $50,000 $50,000 $30,000 $30,000 Indirect $29,000 $29,000 $25,000 $25,000 Corporate Alloc. $0 $0 $0 $0 Total $79,000 $79,000 $55,000 $55,000

ProductivityLoans 541 270 83 42 Loan Offices 2 1 1 1

Volume/Loan Office $50,000,250 $49,999,500 $25,000,125 $12,499,875 Loans/Loan Office 270 270 83 42

B65

Held-for-Investment = (Deferred Income + Interest Income) / Origination

B66

Held-for-Investment = VC + Direct Fixed - Deferred Income

B72

Variable Costs + (Fixed Costs excluding Corporate Overhead allocation)

Loan Executives 23 14 10 10 Loan Exec. Salary $7,500 $7,500 $0 $0 Volume/Loan Exec. $4,347,848 $3,571,393 $2,500,013 $1,249,988 Loans/Loan Exec. 24 $19 $8 $4 Loan Exec./Loan Office 12 14 10 10

Supporting FTEs 16 13 5 5 Average FTE Salary $6,000 $6,000 $6,000 $6,000

FTE/Loan Office 8 13 5 5 FTE/Loan Exec. 1 1 1 1

DISTRIBUTION CHANNEL LOAN TYPEOther Conforming Super Conf'g FHA

400 350 100 50 $40,000,000 $140,000,000 $40,000,000 $20,000,000

$100,000 $400,000 $400,000 $400,000

2.744% 2.744% 2.744% 2.744%0.030% 0.073% 0.073% 0.073%0.025% 0.045% 0.045% 0.045%0.005% 0.028% 0.028% 0.028%0.000% 0.000% 0.000% 0.000%

0.32% 0.32% 0.32% 0.32%$1,022,567 $3,585,986 $1,024,567 $512,284

$2,556 $10,246 $10,246 $10,246 $1,063,000 $3,720,500 $1,063,000 $531,500

$2,658 $10,630 $10,630 $10,630 2.80% 2.50% 4.00% 2.50%

$1,109,661 $3,944,013 $1,126,861 $563,430 0.38% 0.38% 0.38% 0.38%

$152,000 $532,000 $152,000 $76,000

LOAN TYPEDISTRIBUTION CHANNEL Conforming Super Conforming

Other Retail Call Center Wholesale Other Retail Call Center$10,000 $42,000 $7,000 $7,000 $7,000 $12,000 $2,000 $2,000 $35,000 $1,400 $1,400 $1,400 $10,000 $400

$0 $12,000 $77,000 $8,400 $8,400 $8,400 $22,000 $2,400

400 193 20 56 280 55 6 n/a 1 n/a n/a n/a 0 n/an/a $55,000,000 n/a n/a n/a $55,000,000 n/an/a 138 n/a n/a n/a 138 n/a1 14 1 1 1 4 0

$10,000 $0 $10,000 $10,000 $10,000 $0 $10,000 $40,000,000 $77,000,000 $7,000,000 $28,000,000 $28,000,000 $22,000,000 $2,000,000

$400 $14 $29 $80 $400 $14 $29 n/a 10 n/a n/a n/a 10 n/a

2 7 1 1 1 2 0 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000

n/a 5 n/a n/a n/a 5 n/a2 1 2 2 2 1 2

DISTRIBUTION CHANNEL LOAN TYPECall Center Wholesale Conforming Super Conforming

Held-for-Sale Held-for-Inv. Held-for-Sale Held-for-Inv. Held-for-Sale Held-for-Inv. Held-for-Sale

50 25 467 233 27 14 135 $5,000,025 $2,499,975 $70,000,350 $34,999,650 $5,000,025 $2,499,975 $25,000,125 $100,000 $100,000 $150,000 $150,000 $185,000 $185,000 $185,000

3.137% 3.198% 0.487% 0.548% 1.482% 1.543% 1.482%0.240% 0.480% 0.017% 0.034% 0.079% 0.158% 0.079%0.200% 0.400% 0.014% 0.029% 0.050% 0.100% 0.050%0.040% 0.080% 0.003% 0.006% 0.029% 0.058% 0.029%0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000%

0.33% 19.11% 0.32% 19.11% 0.47% $0 0.32%$156,253 $72,448 $202,890 ($43,218) $67,308 $41,073 $329,731

$3,125 $2,898 $435 ($185) $2,490 $3,039 $2,440 $152,501 $76,249 $280,001 $139,999 $69,750 $34,875 $348,752

$3,050 $3,050 $600 $600 $2,581 $2,581 $2,581 2.88% 2.88% 2.50% 4.00%

18.41% 18.41% 18.41%$168,833 $91,948 $352,658 $203,780 $78,033 $42,523 $390,165

0.38% 0.38% 0.38% 0.38% 0.38% 0.38% 0.38%$19,000 $9,500 $266,001 $132,999 $19,000 $9,500 $95,000

LOAN TYPEDISTRIBUTION CHANNEL Held-for-Sale

Call Center Wholesale ConformingHeld-for-Sale Held-for-Inv. Held-for-Sale Held-for-Inv. Retail Call Center Wholes.

$10,000 $10,000 $10,000 $10,000 $1,500 $500 $500 $2,000 $2,000 $2,000 $2,000 $1,250 $100 $100

$0 $0 $0 $0 $12,000 $12,000 $12,000 $12,000 $2,750 $600 $600

50 25 467 233 4 3 23 n/a n/a n/a n/a 0 n/a n/an/a n/a n/a n/a $25,000,125 n/a n/an/a n/a n/a n/a 83 n/a n/a

1 1 1 1 1 0 0 $10,000 $10,000 $10,000 $10,000 $0 $10,000 $10,000

$5,000,025 $2,499,975 $70,000,350 $34,999,650 $2,500,013 $5,000,025 $70,000,350 $50 $25 $467 $233 $8 $50 $467 n/a n/a n/a n/a 10 n/a n/a2 2 2 2 0 0 0

$6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 n/a n/a n/a n/a 5 n/a n/a2 2 2 2 1 2 2


Wholesale Other Retail Call Center Wholesale Other$2,000 $2,000 $6,000 $1,000 $1,000 $1,000 $400 $400 $5,000 $200 $200 $200

$2,400 $2,400 $11,000 $1,200 $1,200 $1,200

16 80 28 3 8 40 n/a n/a 0 n/a n/a n/an/a n/a $55,000,000 n/a n/a n/an/a n/a 138 n/a n/a n/a0 0 2 0 0 0

$10,000 $10,000 $0 $10,000 $10,000 $10,000 $8,000,000 $8,000,000 $11,000,000 $1,000,000 $4,000,000 $4,000,000

$80 $400 $14 $29 $80 $400 n/a n/a 10 n/a n/a n/a

0 0 1 0 0 0 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000

n/a n/a 5 n/a n/a n/a2 2 1 2 2 2


Held-for-Inv. Held-for-Sale Held-for-Inv.

68 378 189 $12,499,875 $70,000,350 $34,999,650

$185,000 $185,000 $185,000

1.543% 1.482% 1.543%0.158% 0.079% 0.158%0.100% 0.050% 0.100%0.058% 0.029% 0.058%0.000% 0.000% 0.000%

$0 0.32% $0 $205,367 $923,247 $575,026

$3,039 $2,440 $3,039 $174,373 $976,505 $488,245

$2,581 $2,581 $2,581 2.50%

18.41% 18.41%$212,617 $1,092,462 $595,326

0.38% 0.38% 0.38%$47,500 $266,001 $132,999

LOAN TYPEHeld-for-Sale Held-for-Inv.

Super Conforming FHA ConformingRetail Call Center Wholes. Retail Call Center Wholes. Retail

$7,500 $2,500 $2,500 $21,000 $7,000 $7,000 $1,500 $6,250 $500 $500 $17,500 $1,400 $1,400 $1,250

$13,750 $3,000 $3,000 $38,500 $8,400 $8,400 $2,750

21 13 117 58 35 327 2 0 n/a n/a 1 n/a n/a 0

$25,000,125 n/a n/a $25,000,125 n/a n/a $12,499,875 83 n/a n/a 83 n/a n/a 42

3 0 0 7 1 1 1 $0 $10,000 $10,000 $0 $10,000 $10,000 $0

$2,500,013 $5,000,025 $70,000,350 $2,500,013 $5,000,025 $70,000,350 $1,249,988 $8 $50 $467 $8 $50 $467 $4 10 n/a n/a 10 n/a n/a 10 1 1 1 4 1 1 0

$6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 5 n/a n/a 5 n/a n/a 5 1 2 2 1 2 2 1

LOAN TYPEHeld-for-Inv.

Conforming Super Conforming FHACall Center Wholes. Retail Call Center Wholes. Retail Call Center

$500 $500 $7,500 $2,500 $2,500 $21,000 $7,000 $100 $100 $6,250 $500 $500 $17,500 $1,400

$600 $600 $13,750 $3,000 $3,000 $38,500 $8,400

1 12 10 6 58 29 17 n/a n/a 0 n/a n/a 1 n/an/a n/a $12,499,875 n/a n/a $12,499,875 n/an/a n/a 42 n/a n/a 42 n/a

0 0 3 0 0 7 1 $10,000 $10,000 $0 $10,000 $10,000 $0 $10,000

$2,499,975 $34,999,650 $1,249,988 $2,499,975 $34,999,650 $1,249,988 $2,499,975 $25 $233 $4 $25 $233 $4 $25 n/a n/a 10 n/a n/a 10 n/a0 0 1 1 1 4 1

$6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 n/a n/a 5 n/a n/a 5 n/a2 2 1 2 2 1 2

LOAN TYPEHeld-for-Inv.

FHAWholes.$7,000 $1,400

$8,400

163 n/an/an/a

1 $10,000

$34,999,650 $233 n/a1

$6,000 n/a2

Breakeven Analysis

Definitions:Breakeven Quantity = Number of Loans OriginatedBreakeven Revenue = Gain on Sale + Fee/Other Income (Held-for-Sale)

= Net Interest + Net Def'd Fees/Costs (Held-for-Inv.)Breakeven Volume = Origination Volume

… such that EBIT equals $0.00

Variables in Model Breakeven FormulaQ = Quantity sold Loans Originated Where B/E: EBIT = 0P = Price per Unit Rev./Origination EBIT = Q * (P-V) - FV = Var. Cost/Unit Var Cost/Origination B/E Q: F/(P-V)F = Fixed costs Sum (Fixed Costs) B/E Rev: B/E Q * P

Breakeven is calculable (i.e. yields a positive) ONLY when P > V

DISTRIBUTION CHANNELHome Lending Retail Call Center

Q = 559 275 29 P = $11,145 $12,470 $10,911 V = $9,810 $10,977 $9,605 F = $146,000 $110,000 $12,000

B/E Quantity 109 74 9 Breakeven Revenue $1,219,336 $918,678 $100,219 Breakeven Volume $39,113,569 $29,469,127 $3,214,814

DISTRIBUTION CHANNELBusiness Lending Retail Call Center

Held-for-Sale Held-for-Inv. Held-for-Sale Held-for-Inv. Held-for-SaleQ = 541 270 83 42 50 P = $5,920 $35,203 $9,606 $57,086 $3,201 V = $2,741 $2,854 $11,810 $11,994 $3,137 F = $79,000 $79,000 $55,000 $55,000 $12,000

B/E Quantity 25 2 n/a 1 188 Breakeven Revenue $147,123 $85,971 n/a $69,629 $601,035 Breakeven Volume $4,597,766 $451,800 n/a $365,920 $18,779,108

DISTRIBUTION CHANNEL LOAN TYPECall Center Wholesale Other Conforming

29 80 400 350 $10,911 $15,587 $3,117 $11,270 $9,605 $13,721 $2,744 $10,977

$12,000 $12,000 $12,000 $102,200 9 6 32 349

$100,219 $100,219 $100,219 $3,929,751 $3,214,814 $3,214,814 $3,214,814 $139,480,293

DISTRIBUTION CHANNEL LOAN TYPECall Center Wholesale Conforming

Held-for-Inv. Held-for-Sale Held-for-Inv. Held-for-Sale Held-for-Inv.25 467 233 27 14

$19,029 $4,799 $28,543 $5,488 $35,203 $3,198 $730 $822 $2,741 $2,854

$12,000 $12,000 $12,000 $3,950 $3,950 1 3 0 1 0

$14,424 $14,153 $12,356 $7,891 $4,299 $75,802 $442,412 $64,933 $266,020 $22,590


100 50 $17,270 $11,270 $10,977 $10,977 $29,200 $14,600

5 50 $80,132 $561,393

$1,856,005 $19,925,756


Held-for-Sale Held-for-Inv. Held-for-Sale Held-for-Inv.135 68 378 189

$7,987 $35,203 $5,212 $35,203 $2,741 $2,854 $2,741 $2,854

$19,750 $19,750 $55,300 $55,300 4 1 22 2

$30,069 $21,493 $116,639 $60,180 $696,459 $112,950 $4,139,928 $316,260

Small Med LargeProduction Mo./Mo. Growth

Loan Office count 20 40 10 Loan VolumeLoan Exec. count 4 9 15 Loan Executives

Total Loan Execs. 80 360 150 Volume per Loan Exec.FTEs 1 3 5 Other FTE

Total FTEs 20 120 50 Base CompensationLoans Guarantee

Volume per Loan Office $2,000,000 $5,000,000 $7,000,000 FTE SalaryAverage Loan Size $225,000 $250,000 $300,000 Base Compensation

Loans per Loan Exec. 9 20 23 Commission %Distribution 12.9% 64.5% 22.6% Total Commissions

Compensation Total CompensationCommission % 2.66% 2.66% 2.66% LoansGuarantee per Loan Exec. $4,500 $4,500 $4,500 Average Loan SizeAvg. FTE Salary $6,000 $6,000 $6,000 Gain on Sale %

Income Net GOS $GOS % 2.66% 2.66% 2.66% Other IncomeOther Income % 0.32% 0.32% 0.32% Variable Costs

Variable Cost % 1.40% 1.40% 1.40% Fixed CostsVariable Cost $28,000 $70,000 $98,000 Fixed Costs, Direct

Fixed Costs per Loan Office Fixed Costs, IndirectDirect (excluding Comp.) $24,469 $63,129 $84,692 Fixed Costs, AllocatedIndirect $24,469 $63,129 $84,692 Total FixedCorporate Allococation Total Costs

EBIT

Notes:1. Only orange-shaded cells may be changed. Numerous formulas use array calculations that will fail if modified.2. Use the following guidelines for Loan Executive count per Loan Office:

# Loan Execs. Sm. Office Med. Office Lg. OfficeMin 0 7 14 Max 6 13 1,000

Loan Office Buildup (Home Lending)

G3

Note: Month/Month Growth applies to all green-shaded line-items. Unshaded line-items do not vary with company growth.

G22

Direct Fixed Costs EXCLUDING Base Compensation and Commissions (both of which are calculated separately)

B24


G25


Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 71.00%

$310,000,000 $313,100,000 $316,231,000 $319,393,310 $322,587,243 $325,813,116 $329,071,247 590 596 602 608 614 620 626

$525,424 $525,424 $525,424 $525,424 $525,424 $525,424 $525,424 190 192 194 196 198 200 202

$2,655,000 $2,655,000 $2,655,000 $2,655,000 $2,655,000 $2,655,000 $2,655,000 $1,140,000 $1,140,000 $1,140,000 $1,140,000 $1,140,000 $1,140,000 $1,140,000 $3,795,000 $3,795,000 $3,795,000 $3,795,000 $3,795,000 $3,795,000 $3,795,000

2.66% 2.66% 2.66% 2.66% 2.66% 2.66% 2.66%$8,238,250 $8,320,633 $8,403,839 $8,487,877 $8,572,756 $8,658,484 $8,745,068

$12,033,250 $12,115,633 $12,198,839 $12,282,877 $12,367,756 $12,453,484 $12,540,068 1,211 1,223 1,235 1,248 1,260 1,273 1,286

$255,963 $255,963 $255,963 $255,963 $255,963 $255,963 $255,963 2.66% 2.66% 2.66% 2.66% 2.66% 2.66% 2.66%

$8,238,250 $8,320,633 $8,403,839 $8,487,877 $8,572,756 $8,658,484 $8,745,068 $984,014 $993,855 $1,003,793 $1,013,831 $1,023,969 $1,034,209 $1,044,551

$4,340,000 $4,383,400 $4,427,234 $4,471,506 $4,516,221 $4,561,384 $4,606,997

$3,861,448 $3,900,063 $3,939,063 $3,978,454 $4,018,238 $4,058,421 $4,099,005 $3,861,448 $3,861,448 $3,900,063 $3,939,063 $3,978,454 $4,018,238 $4,058,421

$0 $0 $0 $0 $0 $0 $0 $7,722,896 $7,761,511 $7,839,126 $7,917,517 $7,996,692 $8,076,659 $8,157,426

$24,096,146 $24,260,543 $24,465,199 $24,671,901 $24,880,670 $25,091,527 $25,304,492 ($14,873,882) ($14,946,056) ($15,057,567) ($15,170,193) ($15,283,944) ($15,398,834) ($15,514,872)

1. Only orange-shaded cells may be changed. Numerous formulas use array calculations that will fail if modified.

Month 8 Month 9 Month 10 Month 11 Month 12 YEAR 1

$332,361,959 $335,685,579 $339,042,435 $342,432,859 $345,857,187 $3,931,575,934 633 639 645 652 658 658

$525,424 $525,424 $525,424 $525,424 $525,424 $525,424 204 206 208 210 212 212

$2,655,000 $2,655,000 $2,655,000 $2,655,000 $2,655,000 $31,860,000 $1,140,000 $1,140,000 $1,140,000 $1,140,000 $1,140,000 $13,680,000 $3,795,000 $3,795,000 $3,795,000 $3,795,000 $3,795,000 $45,540,000

2.66% 2.66% 2.66% 2.66% 2.66% 2.66%$8,832,519 $8,920,844 $9,010,053 $9,100,153 $9,191,155 $104,481,630

$12,627,519 $12,715,844 $12,805,053 $12,895,153 $12,986,155 $150,021,630 1,298 1,311 1,325 1,338 1,351 15,360

$255,963 $255,963 $255,963 $255,963 $255,963 $255,963 2.66% 2.66% 2.66% 2.66% 2.66% 2.66%

$8,832,519 $8,920,844 $9,010,053 $9,100,153 $9,191,155 $104,481,630 $1,054,997 $1,065,547 $1,076,202 $1,086,964 $1,097,834 $12,479,766 $4,653,067 $4,699,598 $4,746,594 $4,794,060 $4,842,001 $55,042,063

$4,139,995 $4,181,395 $4,223,209 $4,265,441 $4,308,096 $48,972,828 $4,099,005 $4,139,995 $4,181,395 $4,223,209 $4,265,441 $48,526,181

$0 $0 $0 $0 $0 $0 $8,239,000 $8,321,390 $8,404,604 $8,488,650 $8,573,537 $97,499,009

$25,519,587 $25,736,833 $25,956,251 $26,177,863 $26,401,692 $302,562,703 ($15,632,071) ($15,750,442) ($15,869,996) ($15,990,746) ($16,112,704) ($185,601,307)

P&L per Loan Exec.

Mo./Mo. GrowthLoans per Loan Executive

1 Average Loan SizeProduction per Loan ExecutiveBase Compensation

Loan Office Size Guarantee/Loan ExecutiveSmall Med Large Total FTE Salary

Loans per Loan Executive 2.2 2.2 2.0 Total Base Comp.Average Loan Size $225,000 $250,000 $250,000 Total CommissionsLoan Exec. per FTE 3.5 3.0 2.5 Total CompensationGuarantee/Loan Executive $4,500 $4,500 $4,500 Net GOS $Salary per LTE $6,000 $5,000 $5,000 Other IncomeCommission % 1.40% 1.50% 1.60% Variable CostsGain on Sale % 1.60% 1.50% 1.45% Fixed Costs per Loan ExecutiveOther Income % 0.32% 0.35% 0.40% DirectVariable Cost % 1.40% 1.40% 1.40% IndirectFixed Costs per Loan Exec. Corp. Allocated

Direct (excluding Comp.) $6,117 $5,882 $5,646 Total FixedIndirect $6,117 $5,882 $5,646 Total CostsCorp. Allocated EBIT

Loan Executive Buildup (Home Lending)

Note: Only orange-shaded cells may be changed.

Loan Office Size:

Small

Medium

Large

G3

Note: Month/Month Growth applies to all green-shaded line-items. Unshaded line-items do not vary with company growth

G17


B20


G20

Total Fixed Costs EXCLUDING Base Compensation & Commissions (both of which are calculated separately)

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 101.00%

2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2$225,000 $225,000 $225,000 $225,000 $225,000 $225,000 $225,000 $225,000 $225,000 $225,000 $495,000 $495,000 $495,000 $495,000 $495,000 $495,000 $495,000 $495,000 $495,000 $495,000

$4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $1,714 $1,714 $1,714 $1,714 $1,714 $1,714 $1,714 $1,714 $1,714 $1,714 $6,214 $6,214 $6,214 $6,214 $6,214 $6,214 $6,214 $6,214 $6,214 $6,214 $6,930 $6,930 $6,930 $6,930 $6,930 $6,930 $6,930 $6,930 $6,930 $6,930

$13,144 $13,144 $13,144 $13,144 $13,144 $13,144 $13,144 $13,144 $13,144 $13,144 $7,920 $7,920 $7,920 $7,920 $7,920 $7,920 $7,920 $7,920 $7,920 $7,920 $1,571 $1,587 $1,603 $1,619 $1,635 $1,651 $1,668 $1,685 $1,701 $1,718 $6,930 $6,999 $7,069 $7,140 $7,211 $7,283 $7,356 $7,430 $7,504 $7,579

$6,117 $6,178 $6,240 $6,302 $6,366 $6,429 $6,493 $6,558 $6,624 $6,690 $6,117 $6,117 $6,117 $6,117 $6,117 $6,117 $6,117 $6,117 $6,117 $6,117

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $12,234 $12,295 $12,357 $12,420 $12,483 $12,546 $12,611 $12,676 $12,741 $12,807 $32,309 $32,439 $32,571 $32,704 $32,838 $32,974 $33,111 $33,250 $33,390 $33,531 ($22,817) ($22,932) ($23,048) ($23,165) ($23,283) ($23,403) ($23,523) ($23,645) ($23,768) ($23,892)

Month 11 Month 12 YEAR 1

2.2 2.2 2.2$225,000 $225,000 $225,000 $495,000 $495,000 $495,000

$4,500 $4,500 $54,000 $1,714 $1,714 $20,571 $6,214 $6,214 $74,571 $6,930 $6,930 $83,160

$13,144 $13,144 $157,731 $7,920 $7,920 $95,040 $1,736 $1,753 $19,927 $7,655 $7,732 $87,890

$6,757 $6,825 $77,580 $6,117 $6,117 $73,406

$0 $0 $0 $12,874 $12,942 $150,986 $33,674 $33,818 $396,607 ($24,018) ($24,145) ($281,640)

P&L per Loan Exec.

Mo./Mo. GrowthLoans per Loan Executive

1 Average Loan SizeProduction per Loan ExecutiveBase Compensation

Loan Office Size Guarantee/Loan ExecutiveSmall Med Large Total FTE Salary

Loans per Loan Executive 2.2 2.2 2.0 Total Base Comp.Average Loan Size $225,000 $250,000 $250,000 Total CommissionsLoan Exec. per FTE 3.5 3.0 2.5 Total CompensationGuarantee/Loan Executive $4,500 $4,500 $4,500 Net GOS $Salary per LTE $6,000 $5,000 $5,000 Other IncomeCommission % 1.40% 1.50% 1.60% Variable CostsGain on Sale % 1.60% 1.50% 1.45% Fixed Costs per Loan ExecutiveOther Income % 0.32% 0.35% 0.40% DirectVariable Cost % 1.40% 1.40% 1.40% IndirectFixed Costs per Loan Exec. Corp. Allocated

Direct (excluding Comp.) $6,117 $5,882 $5,646 Total FixedIndirect $6,117 $5,882 $5,646 Total CostsCorp. Allocated EBIT

Loan Executive Buildup (Business Lending)

Note: Only orange-shaded cells may be changed.

Loan Office Size:

Small

Medium

Large

G3

Note: Month/Month Growth applies to all green-shaded line-items. Unshaded line-items do not vary with company growth

G17


B20


G20

Total Fixed Costs EXCLUDING Base Compensation & Commissions (both of which are calculated separately)

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 101.00%

2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2$225,000 $225,000 $225,000 $225,000 $225,000 $225,000 $225,000 $225,000 $225,000 $225,000 $495,000 $495,000 $495,000 $495,000 $495,000 $495,000 $495,000 $495,000 $495,000 $495,000

$4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $1,714 $1,714 $1,714 $1,714 $1,714 $1,714 $1,714 $1,714 $1,714 $1,714 $6,214 $6,214 $6,214 $6,214 $6,214 $6,214 $6,214 $6,214 $6,214 $6,214 $6,930 $6,930 $6,930 $6,930 $6,930 $6,930 $6,930 $6,930 $6,930 $6,930

$13,144 $13,144 $13,144 $13,144 $13,144 $13,144 $13,144 $13,144 $13,144 $13,144 $7,920 $7,920 $7,920 $7,920 $7,920 $7,920 $7,920 $7,920 $7,920 $7,920 $1,571 $1,587 $1,603 $1,619 $1,635 $1,651 $1,668 $1,685 $1,701 $1,718 $6,930 $6,999 $7,069 $7,140 $7,211 $7,283 $7,356 $7,430 $7,504 $7,579

$6,117 $6,178 $6,240 $6,302 $6,366 $6,429 $6,493 $6,558 $6,624 $6,690 $6,117 $6,117 $6,117 $6,117 $6,117 $6,117 $6,117 $6,117 $6,117 $6,117

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $12,234 $12,295 $12,357 $12,420 $12,483 $12,546 $12,611 $12,676 $12,741 $12,807 $32,309 $32,439 $32,571 $32,704 $32,838 $32,974 $33,111 $33,250 $33,390 $33,531 ($22,817) ($22,932) ($23,048) ($23,165) ($23,283) ($23,403) ($23,523) ($23,645) ($23,768) ($23,892)

Month 11 Month 12 YEAR 1

2.2 2.2 2.2$225,000 $225,000 $225,000 $495,000 $495,000 $495,000

$4,500 $4,500 $54,000 $1,714 $1,714 $20,571 $6,214 $6,214 $74,571 $6,930 $6,930 $83,160

$13,144 $13,144 $157,731 $7,920 $7,920 $95,040 $1,736 $1,753 $19,927 $7,655 $7,732 $87,890

$6,757 $6,825 $77,580 $6,117 $6,117 $73,406

$0 $0 $0 $12,874 $12,942 $150,986 $33,674 $33,818 $396,607 ($24,018) ($24,145) ($281,640)

business model bank

Documents