<Company Name>

Five Year Plan (Service Industry)

Model Inputs and Investor Scenario

General Notes and Assumptions

Year One Model Inputs

1. Year One Revenue Expectancy

<Product 1> <Product 2> <Product 3> <Product 4>
Annual revenue per financial product $300,000 $600,000 $750,000 $0

Total year one product (noninterest) revenue $1,650,000

2. Credit Loss Provision Factor 3%

3. Annual Tax Rate 30%

<Company Name>
Five Year Plan (Service Industry)
Profit and Loss Projections

Year-by-Year Profit and Loss Assumptions

Year 1 Year 2 Year 3 Year 4 Year 5
Annual cumulative price (revenue) increase — 2.00% 4.00% 6.00% 8.00%
Annual cumulative inflation (expense) increase — 2.00% 4.00% 6.00% 8.00%
Interest rate on ending cash balance 0.50% 0.50% 0.50% 0.50% 0.50%

Year 1 Year 2 Year 3 Year 4 Year 5

Interest Income
Loans, including fees $0 $0 $0 $0 $0
Interest on federal funds sold 0 0 0 0 0
Interest and dividends on investment securities 0 0 0 0 0
Taxable 0 0 0 0 0
Nontaxable 0 0 0 0 0
Other (from <source>) 0 0 0 0 0
Total Interest Income $0 $0 $0 $0 $0

Interest Expense
Interest on deposits $1,500,000 $1,500,000 $1,500,000 $1,500,000 $1,500,000
Interest on other borrowings 0 0 0 0 0
Other 0 0 0 0 0
Total Interest Expense $1,500,000 $1,500,000 $1,500,000 $1,500,000 $1,500,000

Net Interest Income Before Provision for Credit Losses ($1,500,000) ($1,500,000) ($1,500,000) ($1,500,000) ($1,500,000)
Provision for credit losses 0 0 0 0 0
Net Interest Income ($1,500,000) ($1,500,000) ($1,500,000) ($1,500,000) ($1,500,000)

Noninterest Income
Service charges $40,000 $40,800 $42,432 $44,978 $48,576
Product revenue (not fee-related) 1,650,000 1,683,000 1,716,000 1,749,000 1,782,000
Loan placement fees 60,000 60,300 60,602 60,905 61,209
Gain on sale of securities 0 0 0 0 0
Gain on sale of other real estate owned 0 0 0 0 0
Gain on sale of fixed assets 0 0 0 0 0
Other 0 0 0 0 0
Total Noninterest Income $1,750,000 $1,784,100 $1,819,034 $1,854,882 $1,891,785

Noninterest Expense
Salaries and employee benefits $600,000 $612,000 $636,480 $674,669 $728,642
Occupancy fees 65,000 66,300 68,952 73,089 78,936
Equipment 25,000 25,500 26,520 28,111 30,360
Data processing 80,000 81,600 84,864 89,956 97,152
Professional fees 50,000 51,000 53,040 56,222 60,720
Director fees 40,000 40,800 42,432 44,978 48,576
Amortization 0 0 0 0 0
Litigation 50,000 51,000 53,040 56,222 60,720
Other 5,000 5,100 5,304 5,622 6,072
Total Noninterest Expense $915,000 $933,300 $970,632 $1,028,870 $1,111,180
Income before taxes on income ($665,000) ($649,200) ($651,599) ($673,987) ($719,394)

Taxes on income 30% (199,500) (194,760) (195,480) (202,196) (215,818)

Net Income or Loss ($465,500) ($454,440) ($456,119) ($471,791) ($503,576)

<Company Name>
Five Year Plan (Service Industry)
Balance Sheet Projections

Assets Initial Balance Year 1 Year 2 Year 3 Year 4 Year 5

Cash and due from banks $500,000 $34,500 ($419,940) ($876,059) ($1,347,850) ($1,851,426)
Federal funds sold and securities purchased 0 0 0 0 0 0
Cash and Cash Equivalents $500,000 $34,500 ($419,940) ($876,059) ($1,347,850) ($1,851,426)

Securities available for sale $200,000 $200,000 $200,000 $200,000 $200,000 $200,000
Securities held to maturity 50,000 50,000 50,000 50,000 50,000 50,000
Total Investment Securities $250,000 $250,000 $250,000 $250,000 $250,000 $250,000

Loans and leases $500,000 $500,000 $500,000 $500,000 $500,000 $500,000

Unearned fees 0 0 0 0 0 0
Allowance for credit losses 0 0 0 0 0 0
Total Loans $500,000 $500,000 $500,000 $500,000 $500,000 $500,000

Accrued interest receivable $0 $0 $0 $0 $0 $0

Premises and equipment 0 0 0 0 0 0
Other real estate owned 0 0 0 0 0 0
Intangible assets 0 0 0 0 0 0
Cash surrender value of life insurance 0 0 0 0 0 0
Net amortized assets 0 0 0 0 0 0
Deferred income taxes 0 0 0 0 0 0
Other assets 50,000 50,000 50,000 50,000 50,000 50,000
Total Assets $1,300,000 $834,500 $380,060 ($76,059) ($547,850) ($1,051,426)

Liabilities and Shareholders' Equity Initial Balance Year 1 Year 2 Year 3 Year 4 Year 5
Deposits
Noninterest-bearing $500,000 $500,000 $500,000 $500,000 $500,000 $500,000
Interest-bearing 500,000 500,000 500,000 500,000 500,000 500,000
Total Deposits $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000

Federal funds purchased and securities sold $0 $0 $0 $0 $0 $0

Other borrowings 0 0 0 0 0 0
Accrued interest payable 0 0 0 0 0 0
Accounts payable 0 0 0 0 0 0
Other liabilities 0 0 0 0 0 0
Total Liabilities $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000

Common stock $100,000 $100,000 $100,000 $100,000 $100,000 $100,000

Preferred stock 0 0 0 0 0 0
Additional paid-in capital 200,000 200,000 200,000 200,000 200,000 200,000
Retained earnings 0 (465,500) (919,940) (1,376,059) (1,847,850) (2,351,426)
Unearned employee stock option shares 0 0 0 0 0 0
Accumulated other comprehensive income 0 0 0 0 0 0
Total Equity $300,000 ($165,500) ($619,940) ($1,076,059) ($1,547,850) ($2,051,426)

Total Liabilities and Equity $1,300,000 $834,500 $380,060 ($76,059) ($547,850) ($1,051,426)
<Company Name>
Five Year Plan (Service Industry)
Cash Flow

Operating Activities Year 1 Year 2 Year 3 Year 4 Year 5 Total

Net income ($465,500) ($454,440) ($456,119) ($471,791) ($503,576) ($2,351,426)
Adjustments to reconcile net earnings to cash
provided by operating activities
Provision for credit losses $0 $0 $0 $0 $0 $0
Depreciation and amortization 0 0 0 0 0 0
Gain on sale of securities 0 0 0 0 0 0
Increase in accrued interest payable 0 0 0 0 0 0
Increase in unearned fees 0 0 0 0 0 0
Increase in income taxes payable 0 0 0 0 0 0
Increase in accounts payable and accrued liabilities 0 0 0 0 0 0
Write-down of other real estate owned 0 0 0 0 0 0
Gain on sale of other real estate owned 0 0 0 0 0 0
Gain on sale of assets 0 0 0 0 0 0
Increase in surrender value of life insurance 0 0 0 0 0 0
Total Operating Activities ($465,500) ($454,440) ($456,119) ($471,791) ($503,576) ($2,351,426)

Investing Activities Year 1 Year 2 Year 3 Year 4 Year 5 Total

Purchase of available-for-sale securities $0 $0 $0 $0 $0 $0
Redemption of other stock 0 0 0 0 0 0
Maturities and calls of available-for-sale securities 0 0 0 0 0 0
Maturities and calls of held-to-maturity securities 0 0 0 0 0 0
Proceeds from sales of available-for-sale securities 0 0 0 0 0 0
Net increase in loans 0 0 0 0 0 0
Proceeds from sales of other real estate owned 0 0 0 0 0 0
Capital expenditures for other real estate owned 0 0 0 0 0 0
Capital expenditures for premises and equipment 0 0 0 0 0 0
Proceeds from sales of premises and equipment 0 0 0 0 0 0
Total Investing Activities $0 $0 $0 $0 $0 $0

Financing Activities Year 1 Year 2 Year 3 Year 4 Year 5 Total

Increase in demand and savings account $0 $0 $0 $0 $0 $0
Increase in certificates of deposit 0 0 0 0 0 0
Increase in federal funds purchased 0 0 0 0 0 0
Increase in repurchase agreements 0 0 0 0 0 0
Employee stock options exercised 0 0 0 0 0 0
Repurchase of common stock 0 0 0 0 0 0
Payment of dividends 0 0 0 0 0 0
Total Financing Activities $0 $0 $0 $0 $0 $0

Cumulative Cash Flows ($465,500) ($454,440) ($456,119) ($471,791) ($503,576) ($2,351,426)

Beginning Cash Balance $500,000 $34,500 ($419,940) ($876,059) ($1,347,850)

Ending Cash Balance $34,500 ($419,940) ($876,059) ($1,347,850) ($1,851,426)