Download - 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
FHA 70% C'formg S. Conf. FHA
S. Conf. 25% 5% 25% 70% =100%C'formg 5%Retail 25% 1.3% 6.3% 17.5%Call Center 5% 0.3% 1.3% 3.5%Wholesale 70% 3.5% 17.5% 49.0%
=100%
Held-for-Investment
FHA 70% C'formg S. Conf. FHA
S. Conf. 25% 5% 25% 70% =100%C'formg 5%Retail 25% 1.3% 6.3% 17.5%Call Center 5% 0.3% 1.3% 3.5%Wholesale 70% 3.5% 17.5% 49.0%
=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%
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
Direct $90,000 $90,900 $91,809 Indirect $56,000 $56,560 $57,126 Corporate Alloc. $0 $0 $0
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
Orig'n Fees & Points $211,373 $213,487 $215,621 Servicing Income $48,234 $48,716 $49,203 Interest Income $65,273 $65,926 $66,585
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
Total Revenue $3,199,894 $3,231,893 $3,264,212 Variable Costs
Loan-related $58,563 $59,149 $59,740 Leads $28,089 $28,370 $28,654 Commissions $1,395,007 $1,408,957 $1,423,047
Total Variable Costs $1,481,659 $1,496,476 $1,511,441
Net Operating Margin $1,718,234 $1,735,417 $1,752,771 Fixed Costs
Direct $50,000 $50,500 $51,005 Indirect $29,000 $29,290 $29,583 Corporate Alloc. $0 $0 $0
Total Fixed Costs $79,000 $79,790 $80,588 Total Costs $1,560,659 $1,576,266 $1,592,029
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
Total Revenue $9,514,187 $9,609,329 $9,705,422 Variable Costs
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
Net Operating Margin $8,742,721 $8,830,148 $8,918,450 Fixed Costs
Direct $50,000 $50,500 $51,005 Indirect $29,000 $29,290 $29,583 Corporate Alloc. $0 $0 $0
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
Loan Loss Reserve $99,999 $100,999 $102,009 Net Operating Income $8,563,722 $8,649,359 $8,735,853
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
Orig'n Fees & Points $211,373 $213,487 $215,621 Servicing Income $48,234 $48,716 $49,203 Interest Income $65,273 $65,926 $66,585
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
Net Interest Margin $9,204,190 $9,296,232 $9,389,195 Def'd Fees/Costs
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
Total Revenue $12,714,081 $12,841,222 $12,969,634 Variable Costs
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
Net Operating Margin $10,460,955 $10,565,565 $10,671,221 Fixed Costs
Direct $100,000 $101,000 $102,010 Indirect $58,000 $58,580 $59,166 Corporate Alloc. $0 $0 $0
Total Fixed Costs $158,000 $159,580 $161,176 Total Costs $2,411,126 $2,435,237 $2,459,589
EBIT / NOPLAT $10,302,955 $10,405,985 $10,510,045
Loan Loss Reserve $275,000 $277,750 $280,527 Net Operating Income $10,027,955 $10,128,235 $10,229,517
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
Orig'n Fees & Points $636,840 $643,208 $649,640 Servicing Income $133,409 $134,743 $136,091 Interest Income $189,478 $191,373 $193,287
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
Net Interest Margin $9,204,190 $9,296,232 $9,389,195 Def'd Fees/Costs
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
Total Revenue $18,948,929 $19,138,418 $19,329,803 Variable Costs
Loan-related $204,390 $206,433 $208,498 Leads $129,540 $130,836 $132,144 Commissions $7,407,500 $7,481,575 $7,556,391
Total Variable Costs $7,741,430 $7,818,844 $7,897,032
Net Operating Margin $11,207,499 $11,319,574 $11,432,770 Fixed Costs
Direct $190,000 $191,900 $193,819 Indirect $114,000 $115,140 $116,291 Corporate Alloc. $0 $0 $0
Total Fixed Costs $304,000 $307,040 $310,110 Total Costs $8,045,430 $8,125,884 $8,207,143
EBIT / NOPLAT $10,903,499 $11,012,534 $11,122,660
Loan Loss Reserve $625,000 $631,250 $637,562 Net Operating Income $10,278,499 $10,381,284 $10,485,097
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
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
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
LOAN TYPESuper Conforming FHA
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
LOAN TYPESuper Conforming FHA
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
LOAN TYPESuper Conforming FHA
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
LOAN TYPESuper Conforming FHA
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)
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
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
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)