Note:

This workbook models a basic P&L with 35 line-items. The many possible combinations
of 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, & Wholesale
The 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 market
In 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 about
Total 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 others
They 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 (scott@ExcelModels.com)

Tab:

Contents
Inputs and Assumptions
P&L contribution of Home Lending business unit
P&L contribution of Business Lending business unit
P&L contribution of both business units
Summarize key drivers of profitability
Guide decision-making on Loan Executive hiring and Loan Office openings

Blend
FixedInputs
VariableInputs

Input the percentages of Loan Origination volume for both Products and Distribution Channels, in each of Home Lending
Input the Fixed Cost assumptions for each Distribution Channel and Corporate allocations, on a semi-variable schedule
Input the Variable Cost percentages of Loan Origination volume, for each P&L line-item, by Product and Channel,

HomeLend
BusLend

for both Home Lending & Business Lending businesses plus Held-for-Investment/
Income Statement for the entire Home Lending business, as well as individual P&L's by Distribution Channel and by Pro
Income Statement for the entire Business Lending business broken down by Held-for-Sale & Held-for-Investment, as we

RollupP&L
KeyMetrics
Breakeven
Loan Office
HomeExec
BusExec

Stacked Income Statement build for Home Lending, Business Lending Held-for-Sale, Business Lending Held-for-Investm

Loan Origination, Variable & Fixed Cost, and Productivity metrics, and other Key Metrics, by Business, Held-for-Sale/Held
Breakeven Analysis providing Loan count and Loan Origination volume required, according to the prevailing Fixed Cost s
"Bottom-up" P&L construction tool, using typical small, medium, and large Loan Office-level metrics to build a Consolida

Evaluation tool using normalized P&L inputs to compare Loan Executive performance to Home Lending business norms,
Evaluation tool using normalized P&L inputs to compare Loan Executive performance to Business Lending business norm

Home Lending, Business Lending Held-for-Sale, & Business Lending Held-for-Investment businesses.
ble schedule according to Loan Origination volume.
annel,

r-Investment/Held-for-Sale mix; Also input assumptions to calculate Interest Income, for each Jumbo ARM product.
el and by Product
tment, as well as individual P&L's by Distribution Channel and by Product for both Held-for-Sale & Held-for-Investment.

d-for-Investment, and Consolidated.

-for-Sale/Held-for-Investment, Channel, and Product.

g Fixed Cost structure, to achieve an EBIT of $0.00
d a Consolidated-level Income Statement for the Home Lending business.

siness norms, according to Loan Office size (small, medium, or large)

business norms, according to Loan Office size (small, medium, or large)

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

Percent of Total Loan Originations by Line of Business, Sell/Ho

Note:

Adjust only cells with format like this: x %

All other cells update au

Distribution Channel & Loan Type, Home Lending

FHA
S. Conf.
C'formg
Retail
Call Center
Wholesale
Other

10%
20%
70%
55%
5%
20%
20%

=100%

C'formg
70%

S. Conf.
20%

FHA
10%

38.5%
3.5%
14.0%
14.0%

11.0%
1.0%
4.0%
4.0%

5.5%
0.5%
2.0%
2.0%

=100%

siness, Sell/Hold Strategy, Distribution Channel, and Loan Type

other cells update automatically.

Distribution Channel & Loan Type, Business Lending

FHA
S. Conf.
C'formg
Retail
Call Center
Wholesale

70%
25%
5%
25%
5%
70%

Held-for-Sale

C'formg
5%

S. Conf.
25%

FHA
70%

1.3%
0.3%
3.5%

6.3%
1.3%
17.5%

17.5%
3.5%
49.0%

=100%

=100%

Held-for-Investment
FHA
S. Conf.
C'formg
Retail
Call Center
Wholesale

70%
25%
5%
25%
5%
70%

=100%

C'formg
5%

S. Conf.
25%

FHA
70%

1.3%
0.3%
3.5%

6.3%
1.3%
17.5%

17.5%
3.5%
49.0%

=100%

n Type

d-for-Sale

=100%

vestment

=100%

Fixed Inputs
Corporate
Monthly loan volume
Number of FTE
Fully loaded $ / FTE
Total corporate fixed costs
Retail
Loan Executive fully loaded salary
Support staff fully loaded salary
Other direct costs per Loan Office
Other indirect costs per Loan Office
Number of Loan Executive per Loan Office
Number of support staff per Loan Office
Monthly loan volume
Number of Loan Offices
Loan Executive costs
Support staff costs
Other direct costs
Total direct costs
Total indirect costs
Call Center
Sales Associate loaded salary
Support staff fully loaded salary
Monthly loan volume
Number of Sales Associates
Number of support staff
Sales Associate costs
Support staff costs
Other direct costs
Total direct costs
Total indirect costs

Wholesale
Sales Associate loaded salary
Support staff fully loaded salary
Monthly loan volume
Number of Sales Associates

$0 $100,000,000
10
20
$0

$0

$6,000
$25,000
10
5
$0 $100,000,000
1
2
$0
$0
$30,000
$60,000
$0
$0
$30,000
$60,000
$25,000
$50,000

$10,000
$6,000
$0 $100,000,000
1
2
2
3
$10,000
$20,000
$12,000
$18,000
$0
$0
$10,000
$20,000
$2,000
$4,000

$10,000
$6,000
$0 $100,000,000
1
2

Number of support staff

Sales Associate costs
Support staff costs
Other direct costs
Total direct costs
Total indirect costs
Other
Sales Associate loaded salary
Support staff fully loaded salary
Monthly loan volume
Number of Sales Associates
Number of support staff
Sales Associate costs
Support staff costs
Other direct costs
Total direct costs
Total indirect costs

2
$10,000
$12,000
$0
$10,000
$2,000

3
$20,000
$18,000
$0
$20,000
$4,000

$10,000
$6,000
$0 $100,000,000
1
2
2
3
$10,000
$20,000
$12,000
$18,000
$0
$0
$10,000
$20,000
$2,000
$4,000

$300,000,000 $500,000,000 $750,000,000 $1,000,000,000 $2,000,000,000

30
40
50
60
70
$0

$0

$0

$0

$0

$300,000,000 $500,000,000 $750,000,000 $1,000,000,000 $2,000,000,000

3
4
5
6
7
$0
$0
$0
$0
$0
$90,000
$120,000
$150,000
$180,000
$210,000
$0
$0
$0
$0
$0
$90,000
$120,000
$150,000
$180,000
$210,000
$75,000
$100,000
$125,000
$150,000
$175,000

$300,000,000 $500,000,000 $750,000,000 $1,000,000,000 $2,000,000,000

3
4
5
6
7
4
5
6
7
8
$30,000
$40,000
$50,000
$60,000
$70,000
$24,000
$30,000
$36,000
$42,000
$48,000
$0
$0
$0
$0
$0
$30,000
$40,000
$50,000
$60,000
$70,000
$6,000
$8,000
$10,000
$12,000
$14,000

$300,000,000 $500,000,000 $750,000,000 $1,000,000,000 $2,000,000,000

3
4
5
6
7

4
$30,000
$24,000
$0
$30,000
$6,000

5
$40,000
$30,000
$0
$40,000
$8,000

6
$50,000
$36,000
$0
$50,000
$10,000

7
$60,000
$42,000
$0
$60,000
$12,000

8
$70,000
$48,000
$0
$70,000
$14,000

$300,000,000 $500,000,000 $750,000,000 $1,000,000,000 $2,000,000,000

3
4
5
6
7
4
5
6
7
8
$30,000
$40,000
$50,000
$60,000
$70,000
$24,000
$30,000
$36,000
$42,000
$48,000
$0
$0
$0
$0
$0
$30,000
$40,000
$50,000
$60,000
$70,000
$6,000
$8,000
$10,000
$12,000
$14,000

$5,000,000,000
80
$0

$5,000,000,000
8
$0
$240,000
$0
$240,000
$200,000

$5,000,000,000
8
9
$80,000
$54,000
$0
$80,000
$16,000

$5,000,000,000
8

9
$80,000
$54,000
$0
$80,000
$16,000

$5,000,000,000
8
9
$80,000
$54,000
$0
$80,000
$16,000

Variable Inputs

P&L
Gross Volume
Origination Volume
Average loan size
% Held-for-Inv.
Size of Exist. Portf.
Gain on Sale %
Fee/Other Income
Orig'n Fees & Pts%
Sv'cing Income %
Interest Income %
Interest Margin
Net Spread
Add'l Cost of Funds
Def'd Fees/Costs
Deferred Income%
Deferred Cost %
Variable Costs
Loan-related %
Leads %
Commission %
Loan Loss Reserve %

TOTAL

Retail

Conforming
Call Center

$200,000,000
$200,000,000
$357,500

$77,000,000
$400,000

$7,000,000
$350,000

2.80%

2.50%

2.50%

0.21%
0.04%
0.06%

0.21%
0.04%
0.06%

0.21%
0.04%
0.06%

0.06%
0.03%
2.66%
0.175%

0.06%
0.03%
2.66%
0.175%

0.06%
0.03%
2.66%
0.175%

Home Lending

Conforming
Wholesale

Other

Retail

LOAN TYPE
Super Conforming
Call Center
Wholesale

$28,000,000 $28,000,000 $22,000,000 $2,000,000

$500,000
$100,000
$400,000
$350,000

Other

$8,000,000
$500,000

$8,000,000
$100,000

2.50%

2.50%

4.00%

4.00%

4.00%

4.00%

0.21%
0.04%
0.06%

0.21%
0.04%
0.06%

0.21%
0.04%
0.06%

0.21%
0.04%
0.06%

0.21%
0.04%
0.06%

0.21%
0.04%
0.06%

0.06%
0.03%
2.66%
0.175%

0.06%
0.03%
2.66%
0.175%

0.06%
0.03%
2.66%
0.175%

0.06%
0.03%
2.66%
0.175%

0.06%
0.03%
2.66%
0.175%

0.06%
0.03%
2.66%
0.175%

Retail

FHA
Call Center
Wholesale

$11,000,000 $1,000,000
$400,000
$350,000

Other

$4,000,000
$500,000

$4,000,000
$100,000

2.50%

2.50%

2.50%

2.50%

0.21%
0.04%
0.06%

0.21%
0.04%
0.06%

0.21%
0.04%
0.06%

0.21%
0.04%
0.06%

TOTAL
Held-for-Sale Held-for-Inv
$150,000,000
$100,000,500 $49,999,500
$185,000
$185,000
33.3%
Beg. Bal
$200,000,000
2.88%
0.21%
0.05%
0.07%

3.68%
0.00%
0.70%
0.08%
0.06%
0.03%
2.66%
0.175%

0.06%
0.03%
2.66%
0.175%

0.06%
0.03%
2.66%
0.175%

0.06%
0.03%
2.66%
0.175%

0.06%
0.03%
1.40%
0.175%

0.06%
0.09%
1.40%
0.200%

Retail

Conforming
Call Center

Wholesale

Retail

Held-for-Sale
Super Conforming
Call Center
Wholesale

$1,250,006
$300,000

$250,001
$100,000

$3,500,018
$150,000

$6,250,031
$300,000

$1,250,006
$100,000

$17,500,088
$150,000

2.50%

2.50%

2.50%

4.00%

4.00%

4.00%

0.20%
0.17%
0.14%

0.19%
0.16%
0.13%

0.18%
0.15%
0.12%

0.21%
0.04%
0.06%

0.21%
0.04%
0.06%

0.21%
0.04%
0.06%

0.06%
0.03%
3.85%
0.175%

0.06%
0.03%
3.05%
0.175%

0.06%
0.03%
0.40%
0.175%

0.06%
0.03%
3.85%
0.175%

0.06%
0.03%
3.05%
0.175%

0.06%
0.03%
0.40%
0.175%

Business Lending

H
Retail

FHA
Call Center

Wholesale

Retail

$17,500,088
$300,000

$3,500,018
$100,000

$49,000,245
$150,000

$624,994
$300,000

$124,999
$100,000

$1,749,983
$150,000

$3,124,994

$624,999

$8,749,983

2.50%

2.50%

2.50%

0.21%
0.04%
0.06%

0.21%
0.04%
0.06%

0.21%
0.04%
0.06%

3.68%
0.00%

3.68%
0.000%

3.68%
0.000%

0.70%
0.08%

0.70%
0.08%

0.70%
0.08%

0.06%
0.09%
3.85%
0.200%

0.06%
0.09%
3.05%
0.200%

0.06%
0.09%
0.40%
0.200%

0.06%
0.03%
3.85%
0.175%

0.06%
0.03%
3.05%
0.175%

0.06%
0.03%
0.40%
0.175%

Conforming
Call Center

Wholesale

Retail

Held-for-Investment
Super Conforming
Call Center
Wholesale

$3,124,969
$300,000

$624,994
$100,000

$15,624,969 $3,124,994

Retail

FHA
Call Center

Wholesale

$8,749,913
$150,000

$8,749,913
$300,000

$1,749,983
$100,000

$24,499,755
$150,000

$43,749,913

$43,749,913

$8,749,983

$122,499,755

3.68%
0.000%

3.68%
0.000%

3.68%
0.000%

3.68%
0.000%

3.68%
0.000%

3.68%
0.000%

0.70%
0.08%

0.70%
0.08%

0.70%
0.08%

0.70%
0.08%

0.70%
0.08%

0.70%
0.08%

0.06%
0.09%
3.85%
0.200%

0.06%
0.09%
3.05%
0.200%

0.06%
0.09%
0.40%
0.200%

0.06%
0.09%
3.85%
0.200%

0.06%
0.09%
3.05%
0.200%

0.06%
0.09%
0.40%
0.200%

Mix
ATROE
Yield
Cum Loss
Duration
Capital %
PTROE
Net Spread
CPR%

FHA Loan ARM Pricing

3-1
5-1
7-1
10-1
5%
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 CHAN
Held-for-Sale
$200,000,000
$357,500
$5,600,000

Retail

Call Center

$110,000,000
$400,000
$3,080,000

$10,000,000
$350,000
$280,000

$425,467
$85,176
$124,206
$634,848

$234,007
$46,847
$68,313
$349,166

$21,273
$4,259
$6,210
$31,742

$6,234,848

$3,429,166

$311,742

$117,126
$56,178
$5,315,000
$5,488,304

$64,419
$30,898
$2,923,250
$3,018,567

$5,856
$2,809
$265,750
$274,415

$746,544

$410,599

$37,327

$90,000
$56,000
$0
$146,000
$5,634,304

$60,000
$50,000
$0
$110,000
$3,128,567

$10,000
$2,000
$0
$12,000
$286,415

EBIT / NOPLAT

$600,544

$300,599

$25,327

Loan Loss Reserve

Net Operating Income

$350,000
$250,544

$192,500
$108,099

$17,500
$7,827

Held-for-Sale / Held-for-Inv.
Gross Volume
Average loan size
Gain on Sale Income
Fee/Other Income
Orig'n Fees & Points
Servicing Income
Interest Income
Total Fee/Other Income
Total Revenue
Variable Costs
Loan-related
Leads
Commissions
Total Variable Costs
Net Operating Margin
Fixed Costs
Direct
Indirect
Corporate Alloc.
Total Fixed Costs
Total Costs

STRIBUTION CHANNEL
Wholesale

LOAN TYPE
Other

Conforming

Super Conf'g

FHA

$40,000,000
$500,000
$1,120,000

$40,000,000
$100,000
$1,120,000

$140,000,000
$357,500
$3,500,000

$40,000,000
$357,500
$1,600,000

$20,000,000
$357,500
$500,000

$85,093
$17,035
$24,841
$126,970

$85,093
$17,035
$24,841
$126,970

$297,827
$59,623
$86,944
$444,394

$85,093
$17,035
$24,841
$126,970

$42,547
$8,518
$12,421
$63,485

$1,246,970

$1,246,970

$3,944,394

$1,726,970

$563,485

$23,425
$11,236
$1,063,000
$1,097,661

$23,425
$11,236
$1,063,000
$1,097,661

$81,988
$39,325
$3,720,500
$3,841,813

$23,425
$11,236
$1,063,000
$1,097,661

$11,713
$5,618
$531,500
$548,830

$149,309

$149,309

$102,581

$629,309

$14,654

$10,000
$2,000
$0
$12,000
$1,109,661

$10,000
$2,000
$0
$12,000
$1,109,661

$63,000
$39,200
$0
$102,200
$3,944,013

$18,000
$11,200
$0
$29,200
$1,126,861

$9,000
$5,600
$0
$14,600
$563,430

$137,309

$137,309

$381

$600,109

$54

$70,000
$67,309

$70,000
$67,309

$245,000
($244,619)

$70,000
$530,109

$35,000
($34,946)

Business Lending
Held-for-Sale / Held-for-Inv.
Gross Volume
Origination Volume
Average loan size

Held-for-Inv.

Held-for-Sale
$150,000,000
$100,000,500
$185,000

% Held-for-Inv.
Size of Existing Portfolio
Gain on Sale Income
Fee/Other Income
Orig'n Fees & Points
Servicing Income
Interest Income
Total Fee/Other Income

Beg. Bal
$2,875,014
$211,373
$48,234
$65,273
$324,879
Interest Margin
Net Spread
Add'l Cost of Funds
Net Interest Margin
Def'd Fees/Costs
Deferred Income
Deferred Costs
Net Def'd Fees/Costs

Total Revenue
Variable Costs
Loan-related
Leads
Commissions
Total Variable Costs

$3,199,894

Net Operating Margin

Fixed Costs
Direct
Indirect
Corporate Alloc.
Total Fixed Costs
Total Costs

$1,718,234

EBIT / NOPLAT

$1,639,234

Loan Loss Reserve

Net Operating Income

$175,001
$1,464,234

$58,563
$28,089
$1,395,007
$1,481,659

$50,000
$29,000
$0
$79,000
$1,560,659

DISTRIBUTION CHANNEL
Held-for-Inv.
$49,999,500
$185,000
33%
$200,000,000

Held-for-Sale
Retail
Call Center
Wholes.
$7,500,000 $37,500,000 $105,000,000
$25,000,125
$5,000,025 $70,000,350
$300,000
$100,000
$150,000

$718,754

$143,751

$2,012,510

$53,024
$12,240
$16,499
$81,764

$10,580
$2,423
$3,275
$16,278

$147,769
$33,571
$45,499
$226,838

Held-for-Investment
Retail
$12,499,875
$300,000
33%
$62,499,875

$9,204,190
$0
$9,204,190

$2,301,048
$0
$2,301,048

$349,997
$40,000
$309,997

$87,499
$10,000
$77,499

$9,514,187

$800,517

$160,028

$2,239,348

$2,378,547

$28,700
$45,273
$697,493
$771,466

$14,641
$7,022
$962,505
$984,168

$2,928
$1,404
$152,501
$156,833

$40,994
$19,662
$280,001
$340,658

$7,175
$11,318
$481,245
$499,739

$3,195

$1,898,690

$1,878,808

$10,000
$2,000
$0
$12,000
$168,833

$10,000
$2,000
$0
$12,000
$352,658

$30,000
$25,000
$0
$55,000
$554,739

$8,742,721
$50,000
$29,000
$0
$79,000
$850,466

($183,651)
$30,000
$25,000
$0
$55,000
$1,039,168

$8,663,721

($238,651)

($8,805)

$1,886,690

$1,823,808

$99,999
$8,563,722

$43,750
($282,401)

$8,750
($17,555)

$122,501
$1,764,189

$25,000
$1,798,809

ANNEL

LOAN TYPE

Held-for-Investment
Call Center
Wholes.
$2,499,975 $34,999,650
$100,000
$150,000
33%
33%
$12,499,975 $174,999,650

Held-for-Sale
Conf'g
Sup.Conf'g
FHA
$7,500,000 $37,500,000 $105,000,000
$5,000,025 $25,000,125 $70,000,350
$185,000
$185,000
$185,000

$125,001

$1,000,005

$1,750,009

$9,275
$7,775
$6,275
$23,325

$53,184
$10,647
$15,526
$79,356

$148,914
$29,812
$43,472
$222,198

$460,210
$0
$460,210

$6,442,933
$0
$6,442,933

$17,500
$2,000
$15,500

$244,998
$28,000
$216,998

$475,709

$6,659,931

$148,326

$1,079,361

$1,972,207

$1,435
$2,264
$76,249
$79,948

$20,090
$31,691
$139,999
$191,780

$2,928
$1,404
$69,750
$74,083

$14,641
$7,022
$348,752
$370,415

$40,994
$19,662
$976,505
$1,037,162

$395,761

$6,468,151

$74,243

$708,947

$935,045

$10,000
$2,000
$0
$12,000
$91,948

$10,000
$2,000
$0
$12,000
$203,780

$2,500
$1,450
$0
$3,950
$78,033

$12,500
$7,250
$0
$19,750
$390,165

$35,000
$20,300
$0
$55,300
$1,092,462

$383,761

$6,456,151

$70,293

$689,197

$879,745

$5,000
$378,762

$69,999
$6,386,152

$8,750
$61,543

$43,750
$645,446

$122,501
$757,244

LOAN TYPE
Held-for-Investment
Conf'g
Sup.Conf'g
FHA
$2,499,975
$185,000
33%
$12,499,975

$12,499,875 $34,999,650
$185,000
$185,000
33%
33%
$62,499,875 $174,999,650

$460,210
$0
$460,210

$2,301,048
$0
$2,301,048

$6,442,933
$0
$6,442,933

$17,500
$2,000
$15,500

$87,499
$10,000
$77,499

$244,998
$28,000
$216,998

$475,709

$2,378,547

$6,659,931

$1,435
$2,264
$34,875
$38,573

$7,175
$11,318
$174,373
$192,867

$20,090
$31,691
$488,245
$540,026

$437,136

$2,185,680

$6,119,905

$2,500
$1,450
$0
$3,950
$42,523

$12,500
$7,250
$0
$19,750
$212,617

$35,000
$20,300
$0
$55,300
$595,326

$433,186

$2,165,930

$6,064,605

$5,000
$428,186

$25,000
$2,140,930

$69,999
$5,994,605

Rollup P&Ls by Month

Home Lending
Held-for-Sale
Gross Volume
Average loan size
Gain on Sale Income
Fee/Other Income
Orig'n Fees & Points
Servicing Income
Interest Income
Total Fee/Other Income

%Gr/M:

Month 1
1%
$200,000,000
$357,500
$5,600,000
$425,467
$85,176
$124,206
$634,848

Total Revenue
Variable Costs
Loan-related
Leads
Commissions
Total Variable Costs

$6,234,848
$117,126
$56,178
$5,315,000
$5,488,304

Net Operating Margin

Fixed Costs
Direct
Indirect
Corporate Alloc.
Total Fixed Costs
Total Costs

$746,544
$90,000
$56,000
$0
$146,000
$5,634,304

EBIT / NOPLAT

$600,544

Loan Loss Reserve

Net Operating Income

$350,000
$250,544

Business Lending
Held-for-Sale
Gross Volume
% Held-for-Inv.
Average loan size
Origination Volume
Gain on Sale Income
Fee/Other Income
Orig'n Fees & Points
Servicing Income
Interest Income
Total Fee/Other Income

%Gr/M:

1%
$150,000,000
$185,000
$100,000,500
$2,875,014
$211,373
$48,234
$65,273
$324,879

Interest Margin
Interest Income
Net Interest Exp.
Net Interest Margin
Def'd Fees/Costs
Deferred Income
Deferred Costs
Net Def'd Fees/Costs
Total Revenue
Variable Costs
Loan-related
Leads
Commissions
Total Variable Costs

$3,199,894

Net Operating Margin

Fixed Costs
Direct
Indirect
Corporate Alloc.
Total Fixed Costs
Total Costs

$1,718,234

EBIT / NOPLAT

$1,639,234

Loan Loss Reserve

Net Operating Income

$175,001
$1,464,234

Business Lending Held-for-Investment

% Held-for-Inv.
Average loan size
Origination Volume
Gain on Sale Income
Fee/Other Income
Orig'n Fees & Points
Servicing Income
Interest Income
Total Fee/Other Income
Interest Margin
Net Spread
Add'l Cost of Funds
Net Interest Margin
Def'd Fees/Costs
Deferred Income

$58,563
$28,089
$1,395,007
$1,481,659

$50,000
$29,000
$0
$79,000
$1,560,659

%Gr/M:

1%
33%
$185,000
$49,999,500

$9,204,190
$0
$9,204,190
349996.5

Deferred Costs
Net Def'd Fees/Costs

$40,000
$309,997

Total Revenue
Variable Costs
Loan-related
Leads
Commissions
Total Variable Costs

$9,514,187

Net Operating Margin

Fixed Costs
Direct
Indirect
Corporate Alloc.
Total Fixed Costs
Total Costs

$8,742,721

EBIT / NOPLAT

$8,663,721

Loan Loss Reserve

Net Operating Income

$99,999
$8,563,722

Business Lending
Total
Gross Volume
% Held-for-Inv.
Average loan size
Origination Volume
Gain on Sale Income
Fee/Other Income
Orig'n Fees & Points
Servicing Income
Interest Income
Total Fee/Other Income
Interest Margin
Interest Income
Net Interest Exp.
Net Interest Margin
Def'd Fees/Costs
Deferred Income
Deferred Costs
Net Def'd Fees/Costs
Total Revenue
Variable Costs
Loan-related
Leads

$28,700
$45,273
$697,493
$771,466

$50,000
$29,000
$0
$79,000
$850,466

$150,000,000
33%
$185,000
$150,000,000
$2,875,014
$211,373
$48,234
$65,273
$324,879
$9,204,190
$0
$9,204,190
$349,997
$40,000
$309,997
$12,714,081
$87,264
$73,362

Commissions
Total Variable Costs

$2,092,500
$2,253,126

Net Operating Margin

Fixed Costs
Direct
Indirect
Corporate Alloc.
Total Fixed Costs
Total Costs

$10,460,955

EBIT / NOPLAT

$10,302,955

Loan Loss Reserve

Net Operating Income

$275,000
$10,027,955

ROLLUP
Gross Volume

$100,000
$58,000
$0
$158,000
$2,411,126

Total
% Held-for-Inv.

Average loan size

Origination Volume
Gain on Sale Income
Fee/Other Income
Orig'n Fees & Points
Servicing Income
Interest Income
Total Fee/Other Income
Interest Margin
Interest Income
Net Interest Exp.
Net Interest Margin
Def'd Fees/Costs
Deferred Income
Deferred Costs
Net Def'd Fees/Costs

$350,000,000
14%
$283,571
$350,000,000
$3,509,862
$636,840
$133,409
$189,478
$959,727
$9,204,190
$0
$9,204,190
$349,997
$40,000
$309,997

Total Revenue
Variable Costs
Loan-related
Leads
Commissions
Total Variable Costs

$18,948,929

Net Operating Margin

Fixed Costs

$11,207,499

$204,390
$129,540
$7,407,500
$7,741,430

Direct
Indirect
Corporate Alloc.
Total Fixed Costs
Total Costs

$190,000
$114,000
$0
$304,000
$8,045,430

EBIT / NOPLAT

$10,903,499

Loan Loss Reserve

Net Operating Income

$625,000
$10,278,499

Month 2

Month 3

Month 4

Month 5

Month 6

$202,000,000
$357,500
$5,656,000

$204,020,000
$357,500
$5,712,560

$206,060,200
$357,500
$5,769,686

$208,120,802
$357,500
$5,827,382

$210,202,010
$357,500
$5,885,656

$429,722
$86,027
$125,448
$641,196

$434,019
$86,888
$126,702
$647,608

$438,359
$87,756
$127,969
$654,085

$442,743
$88,634
$129,249
$660,625

$447,170
$89,520
$130,541
$667,232

$6,297,196

$6,360,168

$6,423,770

$6,488,008

$6,552,888

$118,297
$56,740
$5,368,150
$5,543,187

$119,480
$57,307
$5,421,832
$5,598,619

$120,675
$57,880
$5,476,050
$5,654,605

$121,882
$58,459
$5,530,810
$5,711,151

$123,101
$59,044
$5,586,118
$5,768,263

$754,009

$761,550

$769,165

$776,857

$784,625

$90,900
$56,560
$0
$147,460
$5,690,647

$91,809
$57,126
$0
$148,935
$5,747,554

$92,727
$57,697
$0
$150,424
$5,805,029

$93,654
$58,274
$0
$151,928
$5,863,079

$94,591
$58,857
$0
$153,447
$5,921,710

$606,549

$612,615

$618,741

$624,928

$631,178

$353,500
$253,049

$357,035
$255,580

$360,605
$258,136

$364,211
$260,717

$367,854
$263,324

$151,500,000

$153,015,000

$154,545,150

$156,090,602

$157,651,508

$185,000
$101,000,505
$2,903,765

$185,000
$102,010,510
$2,932,802

$185,000
$103,030,615
$2,962,130

$185,000
$104,060,921
$2,991,751

$185,000
$105,101,531
$3,021,669

$213,487
$48,716
$65,926
$328,128

$215,621
$49,203
$66,585
$331,410

$217,778
$49,695
$67,251
$334,724

$219,955
$50,192
$67,923
$338,071

$222,155
$50,694
$68,603
$341,452

$3,231,893

$3,264,212

$3,296,854

$3,329,822

$3,363,121

$59,149
$28,370
$1,408,957
$1,496,476

$59,740
$28,654
$1,423,047
$1,511,441

$60,338
$28,940
$1,437,277
$1,526,555

$60,941
$29,230
$1,451,650
$1,541,821

$61,551
$29,522
$1,466,166
$1,557,239

$1,735,417

$1,752,771

$1,770,299

$1,788,002

$1,805,882

$50,500
$29,290
$0
$79,790
$1,576,266

$51,005
$29,583
$0
$80,588
$1,592,029

$51,515
$29,879
$0
$81,394
$1,607,949

$52,030
$30,178
$0
$82,208
$1,624,028

$52,551
$30,479
$0
$83,030
$1,640,269

$1,655,627

$1,672,183

$1,688,905

$1,705,794

$1,722,852

$176,751
$1,478,876

$178,518
$1,493,665

$180,304
$1,508,601

$182,107
$1,523,687

$183,928
$1,538,924

33%
$185,000
$50,499,495

33%
$185,000
$51,004,490

33%
$185,000
$51,514,535

33%
$185,000
$52,029,680

33%
$185,000
$52,549,977

$9,296,232
$0
$9,296,232

$9,389,195
$0
$9,389,195

$9,483,087
$0
$9,483,087

$9,577,917
$0
$9,577,917

$9,673,697
$0
$9,673,697

353496.465

357031.42965 360601.7439465 364207.761386 367849.8389998

$40,400
$313,097

$40,804
$316,228

$41,212
$319,390

$41,624
$322,584

$42,040
$325,810

$9,609,329

$9,705,422

$9,802,477

$9,900,501

$9,999,506

$28,987
$45,726
$704,468
$779,181

$29,277
$46,183
$711,513
$786,973

$29,570
$46,645
$718,628
$794,842

$29,866
$47,111
$725,814
$802,791

$30,164
$47,582
$733,072
$810,819

$8,830,148

$8,918,450

$9,007,634

$9,097,711

$9,188,688

$50,500
$29,290
$0
$79,790
$858,971

$51,005
$29,583
$0
$80,588
$867,561

$51,515
$29,879
$0
$81,394
$876,236

$52,030
$30,178
$0
$82,208
$884,999

$52,551
$30,479
$0
$83,030
$893,849

$8,750,358

$8,837,862

$8,926,240

$9,015,503

$9,105,658

$100,999
$8,649,359

$102,009
$8,735,853

$103,029
$8,823,211

$104,059
$8,911,443

$105,100
$9,000,558

$151,500,000
33%
$185,000
$151,500,000
$2,903,765

$153,015,000
33%
$185,000
$153,015,000
$2,932,802

$154,545,150
33%
$185,000
$154,545,150
$2,962,130

$156,090,602
33%
$185,000
$156,090,602
$2,991,751

$157,651,508
33%
$185,000
$157,651,508
$3,021,669

$213,487
$48,716
$65,926
$328,128

$215,621
$49,203
$66,585
$331,410

$217,778
$49,695
$67,251
$334,724

$219,955
$50,192
$67,923
$338,071

$222,155
$50,694
$68,603
$341,452

$9,296,232
$0
$9,296,232

$9,389,195
$0
$9,389,195

$9,483,087
$0
$9,483,087

$9,577,917
$0
$9,577,917

$9,673,697
$0
$9,673,697

$353,496
$40,400
$313,097

$357,031
$40,804
$316,228

$360,602
$41,212
$319,390

$364,208
$41,624
$322,584

$367,850
$42,040
$325,810

$12,841,222

$12,969,634

$13,099,330

$13,230,324

$13,362,627

$88,136
$74,096

$89,018
$74,837

$89,908
$75,585

$90,807
$76,341

$91,715
$77,104

$2,113,425
$2,275,657

$2,134,559
$2,298,414

$2,155,905
$2,321,398

$2,177,464
$2,344,612

$2,199,239
$2,368,058

$10,565,565

$10,671,221

$10,777,933

$10,885,712

$10,994,569

$101,000
$58,580
$0
$159,580
$2,435,237

$102,010
$59,166
$0
$161,176
$2,459,589

$103,030
$59,757
$0
$162,788
$2,484,185

$104,060
$60,355
$0
$164,415
$2,509,027

$105,101
$60,959
$0
$166,060
$2,534,117

$10,405,985

$10,510,045

$10,615,145

$10,721,297

$10,828,510

$277,750
$10,128,235

$280,527
$10,229,517

$283,333
$10,331,813

$286,166
$10,435,131

$289,028
$10,539,482

$353,500,000
14%
$283,571
$353,500,000
$3,544,961

$357,035,000
14%
$283,571
$357,035,000
$3,580,411

$360,605,350
14%
$283,571
$360,605,350
$3,616,215

$364,211,404
14%
$283,571
$364,211,404
$3,652,377

$367,853,518
14%
$283,571
$367,853,518
$3,688,901

$643,208
$134,743
$191,373
$969,325

$649,640
$136,091
$193,287
$979,018

$656,137
$137,452
$195,220
$988,808

$662,698
$138,826
$197,172
$998,696

$669,325
$140,214
$199,144
$1,008,683

$9,296,232
$0
$9,296,232

$9,389,195
$0
$9,389,195

$9,483,087
$0
$9,483,087

$9,577,917
$0
$9,577,917

$9,673,697
$0
$9,673,697

$353,496
$40,400
$313,097

$357,031
$40,804
$316,228

$360,602
$41,212
$319,390

$364,208
$41,624
$322,584

$367,850
$42,040
$325,810

$19,138,418

$19,329,803

$19,523,101

$19,718,332

$19,915,515

$206,433
$130,836
$7,481,575
$7,818,844

$208,498
$132,144
$7,556,391
$7,897,032

$210,583
$133,465
$7,631,955
$7,976,003

$212,689
$134,800
$7,708,274
$8,055,763

$214,815
$136,148
$7,785,357
$8,136,320

$11,319,574

$11,432,770

$11,547,098

$11,662,569

$11,779,194

$191,900
$115,140
$0
$307,040
$8,125,884

$193,819
$116,291
$0
$310,110
$8,207,143

$195,757
$117,454
$0
$313,212
$8,289,214

$197,715
$118,629
$0
$316,344
$8,372,106

$199,692
$119,815
$0
$319,507
$8,455,827

$11,012,534

$11,122,660

$11,233,886

$11,346,225

$11,459,687

$631,250
$10,381,284

$637,562
$10,485,097

$643,938
$10,589,948

$650,377
$10,695,848

$656,881
$10,802,806

Month 7

Month 8

Month 9

Month 10

Month 11

$212,304,030
$357,500
$5,944,513

$214,427,070
$357,500
$6,003,958

$216,571,341
$357,500
$6,063,998

$218,737,055
$357,500
$6,124,638

$220,924,425
$357,500
$6,185,884

$451,642
$90,416
$131,847
$673,904

$456,158
$91,320
$133,165
$680,643

$460,720
$92,233
$134,497
$687,449

$465,327
$93,155
$135,842
$694,324

$469,980
$94,087
$137,200
$701,267

$6,618,417

$6,684,601

$6,751,447

$6,818,961

$6,887,151

$124,332
$59,634
$5,641,980
$5,825,945

$125,575
$60,230
$5,698,399
$5,884,205

$126,831
$60,833
$5,755,383
$5,943,047

$128,099
$61,441
$5,812,937
$6,002,477

$129,380
$62,055
$5,871,067
$6,062,502

$792,471

$800,396

$808,400

$816,484

$824,649

$95,537
$59,445
$0
$154,982
$5,980,927

$96,492
$60,040
$0
$156,532
$6,040,737

$97,457
$60,640
$0
$158,097
$6,101,144

$98,432
$61,246
$0
$159,678
$6,162,155

$99,416
$61,859
$0
$161,275
$6,223,777

$637,490

$643,864

$650,303

$656,806

$663,374

$371,532
$265,958

$375,247
$268,617

$379,000
$271,303

$382,790
$274,016

$386,618
$276,756

$159,228,023

$160,820,303

$162,428,506

$164,052,791

$165,693,319

$185,000
$106,152,546
$3,051,886

$185,000
$107,214,071
$3,082,405

$185,000
$108,286,212
$3,113,229

$185,000
$109,369,074
$3,144,361

$185,000
$110,462,765
$3,175,804

$224,377
$51,201
$69,289
$344,866

$226,620
$51,713
$69,981
$348,315

$228,887
$52,230
$70,681
$351,798

$231,175
$52,752
$71,388
$355,316

$233,487
$53,280
$72,102
$358,869

$3,396,752

$3,430,719

$3,465,026

$3,499,677

$3,534,673

$62,166
$29,817
$1,480,828
$1,572,811

$62,788
$30,115
$1,495,636
$1,588,539

$63,416
$30,417
$1,510,593
$1,604,425

$64,050
$30,721
$1,525,699
$1,620,469

$64,690
$31,028
$1,540,956
$1,636,674

$1,823,940

$1,842,180

$1,860,602

$1,879,208

$1,898,000

$53,076
$30,784
$0
$83,860
$1,656,671

$53,607
$31,092
$0
$84,699
$1,673,238

$54,143
$31,403
$0
$85,546
$1,689,971

$54,684
$31,717
$0
$86,401
$1,706,870

$55,231
$32,034
$0
$87,265
$1,723,939

$1,740,080

$1,757,481

$1,775,056

$1,792,807

$1,810,735

$185,767
$1,554,313

$187,625
$1,569,857

$189,501
$1,585,555

$191,396
$1,601,411

$193,310
$1,617,425

33%
$185,000
$53,075,477

33%
$185,000
$53,606,232

33%
$185,000
$54,142,294

33%
$185,000
$54,683,717

33%
$185,000
$55,230,554

$9,770,434
$0
$9,770,434

$9,868,138
$0
$9,868,138

$9,966,819
$0
$9,966,819

$10,066,487
$0
$10,066,487

$10,167,152
$0
$10,167,152

371528.3373898 375243.6207637 378996.0569714 382786.0175411 386613.8777165

$42,460
$329,068

$42,885
$332,359

$43,314
$335,682

$43,747
$339,039

$44,184
$342,429

$10,099,501

$10,200,497

$10,302,501

$10,405,526

$10,509,582

$30,466
$48,058
$740,403
$818,927

$30,771
$48,539
$747,807
$827,116

$31,078
$49,024
$755,285
$835,387

$31,389
$49,514
$762,838
$843,741

$31,703
$50,010
$770,466
$852,179

$9,280,574

$9,373,380

$9,467,114

$9,561,785

$9,657,403

$53,076
$30,784
$0
$83,860
$902,787

$53,607
$31,092
$0
$84,699
$911,815

$54,143
$31,403
$0
$85,546
$920,933

$54,684
$31,717
$0
$86,401
$930,142

$55,231
$32,034
$0
$87,265
$939,444

$9,196,714

$9,288,682

$9,381,568

$9,475,384

$9,570,138

$106,151
$9,090,563

$107,212
$9,181,469

$108,285
$9,273,284

$109,367
$9,366,017

$110,461
$9,459,677

$159,228,023
33%
$185,000
$159,228,023
$3,051,886

$160,820,303
33%
$185,000
$160,820,303
$3,082,405

$162,428,506
33%
$185,000
$162,428,506
$3,113,229

$164,052,791
33%
$185,000
$164,052,791
$3,144,361

$165,693,319
33%
$185,000
$165,693,319
$3,175,804

$224,377
$51,201
$69,289
$344,866

$226,620
$51,713
$69,981
$348,315

$228,887
$52,230
$70,681
$351,798

$231,175
$52,752
$71,388
$355,316

$233,487
$53,280
$72,102
$358,869

$9,770,434
$0
$9,770,434

$9,868,138
$0
$9,868,138

$9,966,819
$0
$9,966,819

$10,066,487
$0
$10,066,487

$10,167,152
$0
$10,167,152

$371,528
$42,460
$329,068

$375,244
$42,885
$332,359

$378,996
$43,314
$335,682

$382,786
$43,747
$339,039

$386,614
$44,184
$342,429

$13,496,253

$13,631,216

$13,767,528

$13,905,203

$14,044,255

$92,632
$77,875

$93,558
$78,654

$94,494
$79,441

$95,439
$80,235

$96,393
$81,037

$2,221,231
$2,391,738

$2,243,443
$2,415,656

$2,265,878
$2,439,812

$2,288,536
$2,464,210

$2,311,422
$2,488,852

$11,104,515

$11,215,560

$11,327,716

$11,440,993

$11,555,403

$106,152
$61,568
$0
$167,720
$2,559,459

$107,214
$62,184
$0
$169,397
$2,585,053

$108,286
$62,806
$0
$171,091
$2,610,904

$109,369
$63,434
$0
$172,802
$2,637,013

$110,462
$64,068
$0
$174,530
$2,663,383

$10,936,795

$11,046,163

$11,156,624

$11,268,191

$11,380,872

$291,918
$10,644,877

$294,837
$10,751,326

$297,785
$10,858,839

$300,763
$10,967,427

$303,771
$11,077,102

$371,532,053
14%
$283,571
$371,532,053
$3,725,790

$375,247,373
14%
$283,571
$375,247,373
$3,763,048

$378,999,847
14%
$283,571
$378,999,847
$3,800,678

$382,789,845
14%
$283,571
$382,789,845
$3,838,685

$386,617,744
14%
$283,571
$386,617,744
$3,877,072

$676,018
$141,616
$201,135
$1,018,770

$682,779
$143,033
$203,147
$1,028,958

$689,606
$144,463
$205,178
$1,039,247

$696,502
$145,908
$207,230
$1,049,640

$703,467
$147,367
$209,302
$1,060,136

$9,770,434
$0
$9,770,434

$9,868,138
$0
$9,868,138

$9,966,819
$0
$9,966,819

$10,066,487
$0
$10,066,487

$10,167,152
$0
$10,167,152

$371,528
$42,460
$329,068

$375,244
$42,885
$332,359

$378,996
$43,314
$335,682

$382,786
$43,747
$339,039

$386,614
$44,184
$342,429

$20,114,670

$20,315,817

$20,518,975

$20,724,165

$20,931,406

$216,964
$137,510
$7,863,211
$8,217,684

$219,133
$138,885
$7,941,843
$8,299,860

$221,325
$140,273
$8,021,261
$8,382,859

$223,538
$141,676
$8,101,474
$8,466,688

$225,773
$143,093
$8,182,488
$8,551,355

$11,896,986

$12,015,956

$12,136,116

$12,257,477

$12,380,052

$201,689
$121,013
$0
$322,702
$8,540,386

$203,706
$122,223
$0
$325,929
$8,625,790

$205,743
$123,446
$0
$329,188
$8,712,047

$207,800
$124,680
$0
$332,480
$8,799,168

$209,878
$125,927
$0
$335,805
$8,887,160

$11,574,284

$11,690,027

$11,806,927

$11,924,997

$12,044,247

$663,450
$10,910,834

$670,084
$11,019,943

$676,785
$11,130,142

$683,553
$11,241,444

$690,389
$11,353,858

Month 12

YEAR 1

$223,133,669
$357,500
$6,247,743

$2,536,500,603
$357,500
$71,022,017

$474,680
$95,028
$138,572
$708,280

$5,395,987
$1,080,239
$1,575,237
$8,051,462

$6,956,023

$79,073,479

$130,674
$62,676
$5,929,777
$6,123,127

$1,485,451
$712,478
$67,407,504
$69,605,432

$832,896

$9,468,047

$100,410
$62,477
$0
$162,888
$6,286,015

$1,141,425
$710,220
$0
$1,851,645
$71,457,077

$670,008

$7,616,401

$390,484
$279,524

$4,438,876
$3,177,525

$167,350,252

$1,902,375,452

$185,000
$111,567,393
$3,207,563

$185,000
$1,268,256,643
$36,462,378

$235,822
$53,813
$72,823
$362,458

$2,680,737
$611,723
$827,824
$4,120,284

$3,570,020

$40,582,663

$65,337
$31,338
$1,556,365
$1,653,041

$742,729
$356,241
$17,692,180
$18,791,150

$1,916,980

$21,791,513

$55,783
$32,354
$0
$88,138
$1,741,178

$634,125
$367,793
$0
$1,001,918
$19,793,068

$1,828,842

$20,789,595

$195,243
$1,633,599

$2,219,449
$18,570,146

33%
$185,000
$55,782,859

33%
$185,000
$634,118,809

$10,268,824
$0
$10,268,824

$116,732,172
$0
$116,732,172

390480.0164936 4438831.6658584

$44,626
$345,854

$507,295
$3,931,537

$10,614,678

$120,663,709

$32,020
$50,510
$778,171
$860,701

$363,991
$574,176
$8,845,957
$9,784,123

$9,753,977

$110,879,585

$55,783
$32,354
$0
$88,138
$948,838

$634,125
$367,793
$0
$1,001,918
$10,786,041

$9,665,839

$109,877,667

$111,566
$9,554,274

$1,268,238
$108,609,430

$167,350,252
33%
$185,000
$167,350,252
$3,207,563

$1,902,375,452
33%
$185,000
$1,902,375,452
$36,462,378

$235,822
$53,813
$72,823
$362,458

$2,680,737
$611,723
$827,824
$4,120,284

$10,268,824
$0
$10,268,824

$116,732,172
$0
$116,732,172

$390,480
$44,626
$345,854

$4,438,832
$507,295
$3,931,537

$14,184,698

$161,246,371

$97,357
$81,848

$1,106,720
$930,416

$2,334,536
$2,513,741

$26,538,138
$28,575,273

$11,670,957

$132,671,098

$111,567
$64,709
$0
$176,276
$2,690,017

$1,268,250
$735,585
$0
$2,003,835
$30,579,109

$11,494,681

$130,667,263

$306,809
$11,187,873

$3,487,687
$127,179,576

$390,483,921
14%
$283,571
$390,483,921
$3,915,842

$4,438,876,055
14%
$283,571
$4,438,876,055
$44,513,840

$710,502
$148,840
$211,395
$1,070,738

$8,076,724
$1,691,961
$2,403,061
$12,171,746

$10,268,824
$0
$10,268,824

$116,732,172
$0
$116,732,172

$390,480
$44,626
$345,854

$4,438,832
$507,295
$3,931,537

$21,140,720

$240,319,850

$228,031
$144,524
$8,264,313
$8,636,868

$2,592,171
$1,642,894
$93,945,641
$98,180,705

$12,503,852

$142,139,145

$211,977
$127,186
$0
$339,163
$8,976,031

$2,409,676
$1,445,805
$0
$3,855,481
$102,036,186

$12,164,689

$138,283,664

$697,293
$11,467,397

$7,926,563
$130,357,101

Key Metrics
HOME LENDING
Key Metrics
Volume
Loan Count
Origination Volume
Average Loan Size
Costs
Variable Cost %
Fixed Cost %
Direct
Indirect
Corp. Allocation
Key Measurements
Fee/Other Income %
Net Cost to Originate
Net Cost to Originate/Loan
Personnel Expenses
Personnel Expenses/Loan
Gain on Sale %
Net Interest Margin %
Production Expense
Avg Production Profit %
Avg Production Profit

DISTRIBUTION CHAN
TOTAL

Retail

559
$200,000,000
$357,500

275
$110,000,000
$400,000

2.744%
0.073%
0.045%
0.028%
0.000%

2.744%
0.100%
0.055%
0.045%
0.000%

0.32%
$5,152,837
$9,211
$5,315,000
$9,501
2.80%

0.32%
$2,844,560
$10,344
$2,923,250
$10,630
2.80%

$5,634,304
0.38%
$760,000

$3,128,567
0.38%
$418,000

TOTAL
$90,000
$56,000
$0
$146,000

Retail
$60,000
$50,000
$0
$110,000

DISTRIBUTION CHAN
Fixed Costs
Direct
Indirect
Corporate Alloc.
Total

Productivity
Loans
559
Loan Offices
2
Volume/Loan Office $100,000,000
Loans/Loan Office
280
Loan Executives
23
Loan Exec. Salary
$4,500
Volume/Loan Exec. $200,000,000
Loans/Loan Exec.
24
Loan Exec./Loan Offi
12

275
2
$55,000,000
138
20
$0
$110,000,000
$14
10

Supporting FTEs
Average FTE Salary
FTE/Loan Office
FTE/Loan Exec.

BUSINESS LENDING
Key Metrics
Volume
Loan Count
Origination Volume
Average Loan Size
Costs
Variable Cost %
Fixed Cost %
Direct
Indirect
Corp. Allocation
Key Measurements
Fee/Other Income %
Net Cost to Originate
Net Cost to Originate/Loan
Personnel Expenses
Personnel Expenses/Loan
Gain on Sale %
Net Interest Margin %
Production Expense
Avg Production Profit %
Avg Production Profit

Fixed Costs
Direct
Indirect
Corporate Alloc.
Total
Productivity
Loans
Loan Offices
Volume/Loan Office
Loans/Loan Office

16
$6,000
8
1

10
$6,000
5
1

TOTAL
Held-for-Sale Held-for-Inv.
541
$100,000,500
$185,000

270
$49,999,500
$185,000

1.482%
0.079%
0.050%
0.029%
0.000%

1.543%
0.158%
0.100%
0.058%
0.000%

0.32%
$1,320,287
$2,443
$1,395,007
$2,581
2.88%

19.11%
$471,470
$1,744
$697,493
$2,581

$1,560,659
0.38%
$380,002

18.41%
$850,466
0.38%
$189,998

TOTAL
Held-for-Sale Held-for-Inv.
$50,000
$50,000
$29,000
$29,000
$0
$0
$79,000
$79,000

541
2
$50,000,250
270

270
1
$49,999,500
270

Loan Executives
Loan Exec. Salary
Volume/Loan Exec.
Loans/Loan Exec.
Loan Exec./Loan Offi
Supporting FTEs
Average FTE Salary
FTE/Loan Office
FTE/Loan Exec.

23
$7,500
$4,347,848
24
12
16
$6,000
8
1

14
$7,500
$3,571,393
$19
14
13
$6,000
13
1

DISTRIBUTION CHANNEL
Call Center
Wholesale

Other

Conforming

LOAN TYPE
Super Conf'g

29
$10,000,000
$350,000

80
$40,000,000
$500,000

400
$40,000,000
$100,000

350
$140,000,000
$400,000

100
$40,000,000
$400,000

2.744%
0.120%
0.100%
0.020%
0.000%

2.744%
0.030%
0.025%
0.005%
0.000%

2.744%
0.030%
0.025%
0.005%
0.000%

2.744%
0.073%
0.045%
0.028%
0.000%

2.744%
0.073%
0.045%
0.028%
0.000%

0.32%
$263,142
$9,210
$265,750
$9,301
2.80%

0.32%
$1,022,567
$12,782
$1,063,000
$13,288
2.80%

0.32%
$1,022,567
$2,556
$1,063,000
$2,658
2.80%

0.32%
$3,585,986
$10,246
$3,720,500
$10,630
2.50%

0.32%
$1,024,567
$10,246
$1,063,000
$10,630
4.00%

$286,415
0.38%
$38,000

$1,109,661
0.38%
$152,000

$1,109,661
0.38%
$152,000

$3,944,013
0.38%
$532,000

$1,126,861
0.38%
$152,000

Other
$10,000
$2,000
$0
$12,000

Retail
$42,000
$35,000
$77,000

$8,400

400
n/a
n/a
n/a
1
$10,000
$40,000,000
$400
n/a

193
1
$55,000,000
138
14
$0
$77,000,000
$14
10

20
n/a
n/a
n/a
1
$10,000
$7,000,000
$29
n/a

DISTRIBUTION CHANNEL
Call Center
Wholesale
$10,000
$10,000
$2,000
$2,000
$0
$0
$12,000
$12,000

29
n/a
n/a
n/a
1
$10,000
$10,000,000
$29
n/a

80
n/a
n/a
n/a
1
$10,000
$40,000,000
$80
n/a

Conforming
Call Center
$7,000
$1,400

2
$6,000
n/a
2

2
$6,000
n/a
2

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

2
$6,000
n/a
2

7
$6,000
5
1

DISTRIBUTION CHANNEL
Call Center
Held-for-Sale Held-for-Inv.

1
$6,000
n/a
2

Wholesale
Held-for-Sale

83
$25,000,125
$300,000

42
$12,499,875
$300,000

50
$5,000,025
$100,000

25
$2,499,975
$100,000

467
$70,000,350
$150,000

3.937%
0.220%
0.120%
0.100%
0.000%

3.998%
0.440%
0.240%
0.200%
0.000%

3.137%
0.240%
0.200%
0.040%
0.000%

3.198%
0.480%
0.400%
0.080%
0.000%

0.487%
0.017%
0.014%
0.003%
0.000%

0.33%
$961,143
$11,534
$962,505
$11,550
2.88%

19.11%
$442,239
$10,614
$481,245
$11,550

0.33%
$156,253
$3,125
$152,501
$3,050
2.88%

19.11%
$72,448
$2,898
$76,249
$3,050

0.32%
$202,890
$435
$280,001
$600
2.88%

$1,039,168
0.38%
$95,000

18.41%
$554,739
0.38%
$47,500

Retail
Held-for-Sale
Held-for-Inv.
$30,000
$30,000
$25,000
$25,000
$0
$0
$55,000
$55,000

83
1
$25,000,125
83

42
1
$12,499,875
42

$168,833
0.38%
$19,000

18.41%
$91,948
0.38%
$9,500

DISTRIBUTION CHANNEL
Call Center
Held-for-Sale Held-for-Inv.
$10,000
$10,000
$2,000
$2,000
$0
$0
$12,000
$12,000

50
n/a
n/a
n/a

25
n/a
n/a
n/a

$352,658
0.38%
$266,001

Wholesale
Held-for-Sale
$10,000
$2,000
$0
$12,000

467
n/a
n/a
n/a

10
$0
$2,500,013
$8
10
5
$6,000
5
1

10
$0
$1,249,988
$4
10
5
$6,000
5
1

1
$10,000
$5,000,025
$50
n/a
2
$6,000
n/a
2

1
$10,000
$2,499,975
$25
n/a
2
$6,000
n/a
2

1
$10,000
$70,000,350
$467
n/a
2
$6,000
n/a
2

N TYPE
FHA
50
$20,000,000
$400,000
2.744%
0.073%
0.045%
0.028%
0.000%
0.32%
$512,284
$10,246
$531,500
$10,630
2.50%
$563,430
0.38%
$76,000

Conforming
Wholesale
$7,000
$1,400

LOAN TYPE
Super Conforming
Call Center
Wholesale
$2,000
$2,000
$400
$400

Other
$7,000
$1,400

Retail
$12,000
$10,000

$8,400

$8,400

$22,000

$2,400

$2,400

56
n/a
n/a
n/a
1
$10,000
$28,000,000
$80
n/a

280
n/a
n/a
n/a
1
$10,000
$28,000,000
$400
n/a

55
0
$55,000,000
138
4
$0
$22,000,000
$14
10

6
n/a
n/a
n/a
0
$10,000
$2,000,000
$29
n/a

16
n/a
n/a
n/a
0
$10,000
$8,000,000
$80
n/a

1
$6,000
n/a
2

1
$6,000
n/a
2

2
$6,000
5
1

Wholesale
Conforming
Held-for-Inv. Held-for-Sale Held-for-Inv.

0
$6,000
n/a
2

0
$6,000
n/a
2

LOAN TYPE
Super Conforming
Held-for-Sale Held-for-Inv.

233
$34,999,650
$150,000

27
$5,000,025
$185,000

14
$2,499,975
$185,000

135
$25,000,125
$185,000

68
$12,499,875
$185,000

0.548%
0.034%
0.029%
0.006%
0.000%

1.482%
0.079%
0.050%
0.029%
0.000%

1.543%
0.158%
0.100%
0.058%
0.000%

1.482%
0.079%
0.050%
0.029%
0.000%

1.543%
0.158%
0.100%
0.058%
0.000%

19.11%
($43,218)
($185)
$139,999
$600

0.47%
$67,308
$2,490
$69,750
$2,581
2.50%

$0
$41,073
$3,039
$34,875
$2,581

0.32%
$329,731
$2,440
$348,752
$2,581
4.00%

$0
$205,367
$3,039
$174,373
$2,581

18.41%
$203,780
0.38%
$132,999

Wholesale
Held-for-Inv.
$10,000
$2,000
$0
$12,000

233
n/a
n/a
n/a

$78,033
0.38%
$19,000

Retail
$1,500
$1,250

18.41%
$42,523
0.38%
$9,500

Conforming
Call Center
$500
$100

$390,165
0.38%
$95,000

18.41%
$212,617
0.38%
$47,500

Held-for-Sale
Super Conforming
Wholes.
$500
$100

Retail
$7,500
$6,250

$2,750

$600

$600

$13,750

4
0
$25,000,125
83

3
n/a
n/a
n/a

23
n/a
n/a
n/a

21
0
$25,000,125
83

1
$10,000
$34,999,650
$233
n/a
2
$6,000
n/a
2

1
$0
$2,500,013
$8
10
0
$6,000
5
1

0
$10,000
$5,000,025
$50
n/a
0
$6,000
n/a
2

0
$10,000
$70,000,350
$467
n/a
0
$6,000
n/a
2

3
$0
$2,500,013
$8
10
1
$6,000
5
1

ing

FHA
Call Center
Wholesale
$1,000
$1,000
$200
$200

Other
$2,000
$400

Retail
$6,000
$5,000

Other
$1,000
$200

$2,400

$11,000

$1,200

$1,200

$1,200

80
n/a
n/a
n/a
0
$10,000
$8,000,000
$400
n/a

28
0
$55,000,000
138
2
$0
$11,000,000
$14
10

3
n/a
n/a
n/a
0
$10,000
$1,000,000
$29
n/a

8
n/a
n/a
n/a
0
$10,000
$4,000,000
$80
n/a

40
n/a
n/a
n/a
0
$10,000
$4,000,000
$400
n/a

0
$6,000
n/a
2

1
$6,000
5
1

0
$6,000
n/a
2

0
$6,000
n/a
2

0
$6,000
n/a
2

FHA
Held-for-Sale Held-for-Inv.
378
$70,000,350
$185,000

189
$34,999,650
$185,000

1.482%
0.079%
0.050%
0.029%
0.000%

1.543%
0.158%
0.100%
0.058%
0.000%

0.32%
$923,247
$2,440
$976,505
$2,581
2.50%

$0
$575,026
$3,039
$488,245
$2,581

$1,092,462
0.38%
$266,001

18.41%
$595,326
0.38%
$132,999
LOAN TYPE

Held-for-Sale
Super Conforming
Call Center
$2,500
$500

Wholes.
$2,500
$500

Retail
$21,000
$17,500

FHA
Call Center
$7,000
$1,400

$3,000

$3,000

$38,500

$8,400

$8,400

13
n/a
n/a
n/a

117
n/a
n/a
n/a

58
1
$25,000,125
83

35
n/a
n/a
n/a

327
n/a
n/a
n/a

Wholes.
$7,000
$1,400

0
$10,000
$5,000,025
$50
n/a
1
$6,000
n/a
2

0
$10,000
$70,000,350
$467
n/a
1
$6,000
n/a
2

7
$0
$2,500,013
$8
10
4
$6,000
5
1

1
$10,000
$5,000,025
$50
n/a
1
$6,000
n/a
2

1
$10,000
$70,000,350
$467
n/a
1
$6,000
n/a
2

OAN TYPE
Held-for-Inv.
Super Conforming
Call Center
Wholes.
$2,500
$2,500
$500
$500

Retail
$1,500
$1,250

Conforming
Call Center
$500
$100

Wholes.
$500
$100

Retail
$7,500
$6,250

$2,750

$600

$600

$13,750

$3,000

$3,000

2
0
$12,499,875
42

1
n/a
n/a
n/a

12
n/a
n/a
n/a

10
0
$12,499,875
42

6
n/a
n/a
n/a

58
n/a
n/a
n/a

1
$0
$1,249,988
$4
10
0
$6,000
5
1

0
$10,000
$2,499,975
$25
n/a
0
$6,000
n/a
2

0
$10,000
$34,999,650
$233
n/a
0
$6,000
n/a
2

3
$0
$1,249,988
$4
10
1
$6,000
5
1

0
$10,000
$2,499,975
$25
n/a
1
$6,000
n/a
2

0
$10,000
$34,999,650
$233
n/a
1
$6,000
n/a
2

Retail
$21,000
$17,500

FHA
Call Center
$7,000
$1,400

Wholes.
$7,000
$1,400

$38,500

$8,400

$8,400

29
1
$12,499,875
42

17
n/a
n/a
n/a

163
n/a
n/a
n/a

7
$0
$1,249,988
$4
10
4
$6,000
5
1

1
$10,000
$2,499,975
$25
n/a
1
$6,000
n/a
2

1
$10,000
$34,999,650
$233
n/a
1
$6,000
n/a
2

Breakeven Analysis
Definitions:
Breakeven Quantity
Breakeven Revenue
Breakeven Volume

=
=
=
=

Number of Loans Originated

Gain on Sale + Fee/Other Income (Held-for-Sale)
Net Interest + Net Def'd Fees/Costs (Held-for-Inv.)
Origination Volume

such that EBIT equals $0.00

Variables
Q = Quantity sold
P = Price per Unit
V = Var. Cost/Unit
F = Fixed costs

in Model
Loans Originated
Rev./Origination
Var Cost/Origination
Sum (Fixed Costs)

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

Originated
/Other Income (Held-for-Sale)
Def'd Fees/Costs (Held-for-Inv.)

quals $0.00
Breakeven Formula
Where B/E: EBIT = 0
EBIT = Q * (P-V) - F
B/E Q: F/(P-V)
B/E Rev: B/E Q * P

ONLY when P > V

Q=
P=
V=
F=
B/E Quantity
Breakeven Revenue
Breakeven Volume

Home Lending
559
$11,145
$9,810
$146,000
109
$1,219,336
$39,113,569

Business Lending
Held-for-SaleHeld-for-Inv.
Q=
541
270
P=
$5,920
$35,203
V=
$2,741
$2,854
F=
$79,000
$79,000
B/E Quantity
25
2
Breakeven Revenue $147,123
$85,971
Breakeven Volume $4,597,766 $451,800

Retail
275
$12,470
$10,977
$110,000
74
$918,678
$29,469,127

DISTRIBUTION CHANNEL
Call Center
29
$10,911
$9,605
$12,000
9
$100,219
$3,214,814

Wholesale
80
$15,587
$13,721
$12,000
6
$100,219
$3,214,814

DISTRIBUTION CHANNEL
Retail
Call Center
Wholesale
Held-for-Sale Held-for-Inv. Held-for-Sale Held-for-Inv. Held-for-Sale
83
42
50
25
467
$9,606
$57,086
$3,201
$19,029
$4,799
$11,810
$11,994
$3,137
$3,198
$730
$55,000
$55,000
$12,000
$12,000
$12,000
n/a
1
188
1
3
n/a
$69,629
$601,035
$14,424
$14,153
n/a
$365,920
$18,779,108
$75,802
$442,412

L
Wholesale
80
$15,587
$13,721
$12,000
6
$100,219
$3,214,814

Wholesale
Held-for-Inv.
233
$28,543
$822
$12,000
0
$12,356
$64,933

Other
400
$3,117
$2,744
$12,000
32
$100,219
$3,214,814

Conforming
350
$11,270
$10,977
$102,200
349
$3,929,751
$139,480,293

LOAN TYPE
Super Conforming
100
$17,270
$10,977
$29,200
5
$80,132
$1,856,005

LOAN TYPE
Conforming
Super Conforming
Held-for-Sale Held-for-Inv. Held-for-Sale
27
14
135
$5,488
$35,203
$7,987
$2,741
$2,854
$2,741
$3,950
$3,950
$19,750
1
0
4
$7,891
$4,299
$30,069
$266,020
$22,590
$696,459

LOAN TYPE
Super Conforming
100
$17,270
$10,977
$29,200
5
$80,132
$1,856,005

FHA
50
$11,270
$10,977
$14,600
50
$561,393
$19,925,756

LOAN TYPE
Super Conforming
FHA
Held-for-Inv. Held-for-Sale Held-for-Inv.
68
378
189
$35,203
$5,212
$35,203
$2,854
$2,741
$2,854
$19,750
$55,300
$55,300
1
22
2
$21,493
$116,639
$60,180
$112,950
$4,139,928
$316,260

Loan Office Buildup (Home Lending)

Production
Loan Office count
Loan Exec. count
Total Loan Execs.
FTEs
Total FTEs
Loans
Volume per Loan Office
Average Loan Size
Loans per Loan Exec.
Distribution
Compensation
Commission %
Guarantee per Loan Exec.
Avg. FTE Salary
Income
GOS %
Other Income %
Variable Cost %
Variable Cost
Fixed Costs per Loan Office
Direct (excluding Comp.)
Indirect
Corporate Allococation

Small

Med

Large

20
4
80
1
20

40
9
360
3
120

10
15
150
5
50

$2,000,000
$225,000
9
12.9%

$5,000,000
$250,000
20
64.5%

$7,000,000
$300,000
23
22.6%

2.66%
$4,500
$6,000

2.66%
$4,500
$6,000

2.66%
$4,500
$6,000

2.66%
0.32%
1.40%
$28,000

2.66%
0.32%
1.40%
$70,000

2.66%
0.32%
1.40%
$98,000

$24,469
$24,469

$63,129
$63,129

$84,692
$84,692

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

Min
Max

# Loan Exe Sm. Office

0
6

Med. Office
7
13

Lg. Office
14
1,000

Mo./Mo. Growth
Loan Volume
Loan Executives
Volume per Loan Exec.
Other FTE
Base Compensation
Guarantee
FTE Salary
Base Compensation
Commission %
Total Commissions
Total Compensation
Loans
Average Loan Size
Gain on Sale %
Net GOS $
Other Income
Variable Costs
Fixed Costs
Fixed Costs, Direct
Fixed Costs, Indirect
Fixed Costs, Allocated
Total Fixed
Total Costs
EBIT

Month 1
Month 2
Month 3
1.00%
$310,000,000 $313,100,000 $316,231,000
590
596
602
$525,424
$525,424
$525,424
190
192
194
$2,655,000
$1,140,000
$3,795,000
2.66%
$8,238,250
$12,033,250
1,211
$255,963
2.66%
$8,238,250
$984,014
$4,340,000

$2,655,000
$1,140,000
$3,795,000
2.66%
$8,320,633
$12,115,633
1,223
$255,963
2.66%
$8,320,633
$993,855
$4,383,400

$2,655,000
$1,140,000
$3,795,000
2.66%
$8,403,839
$12,198,839
1,235
$255,963
2.66%
$8,403,839
$1,003,793
$4,427,234

$3,861,448
$3,861,448
$0
$7,722,896
$24,096,146
###

$3,900,063
$3,861,448
$0
$7,761,511
$24,260,543
###

$3,939,063
$3,900,063
$0
$7,839,126
$24,465,199
###

array calculations that will fail if modified.

Month 4

Month 5

Month 6

Month 7

Month 8

$319,393,310 $322,587,243 $325,813,116 $329,071,247 $332,361,959

608
614
620
626
633
$525,424
$525,424
$525,424
$525,424
$525,424
196
198
200
202
204
$2,655,000
$1,140,000
$3,795,000
2.66%
$8,487,877
$12,282,877
1,248
$255,963
2.66%
$8,487,877
$1,013,831
$4,471,506

$2,655,000
$1,140,000
$3,795,000
2.66%
$8,572,756
$12,367,756
1,260
$255,963
2.66%
$8,572,756
$1,023,969
$4,516,221

$2,655,000
$1,140,000
$3,795,000
2.66%
$8,658,484
$12,453,484
1,273
$255,963
2.66%
$8,658,484
$1,034,209
$4,561,384

$2,655,000
$1,140,000
$3,795,000
2.66%
$8,745,068
$12,540,068
1,286
$255,963
2.66%
$8,745,068
$1,044,551
$4,606,997

$2,655,000
$1,140,000
$3,795,000
2.66%
$8,832,519
$12,627,519
1,298
$255,963
2.66%
$8,832,519
$1,054,997
$4,653,067

$3,978,454
$3,939,063
$0
$7,917,517
$24,671,901
###

$4,018,238
$3,978,454
$0
$7,996,692
$24,880,670
###

$4,058,421
$4,018,238
$0
$8,076,659
$25,091,527
###

$4,099,005
$4,058,421
$0
$8,157,426
$25,304,492
###

$4,139,995
$4,099,005
$0
$8,239,000
$25,519,587
###

Month 9

Month 10

Month 11

Month 12

$335,685,579 $339,042,435 $342,432,859 $345,857,187

639
645
652
658
$525,424
$525,424
$525,424
$525,424
206
208
210
212

YEAR 1
###
658
$525,424
212

$2,655,000
$1,140,000
$3,795,000
2.66%
$8,920,844
$12,715,844
1,311
$255,963
2.66%
$8,920,844
$1,065,547
$4,699,598

$2,655,000
$1,140,000
$3,795,000
2.66%
$9,010,053
$12,805,053
1,325
$255,963
2.66%
$9,010,053
$1,076,202
$4,746,594

$2,655,000
$1,140,000
$3,795,000
2.66%
$9,100,153
$12,895,153
1,338
$255,963
2.66%
$9,100,153
$1,086,964
$4,794,060

$2,655,000
$31,860,000
$1,140,000
$13,680,000
$3,795,000
$45,540,000
2.66%
2.66%
$9,191,155 $104,481,630
$12,986,155 $150,021,630
1,351
15,360
$255,963
$255,963
2.66%
2.66%
$9,191,155 $104,481,630
$1,097,834
$12,479,766
$4,842,001
$55,042,063

$4,181,395
$4,139,995
$0
$8,321,390
$25,736,833
###

$4,223,209
$4,181,395
$0
$8,404,604
$25,956,251
###

$4,265,441
$4,223,209
$0
$8,488,650
$26,177,863
###

$4,308,096
$48,972,828
$4,265,441
$48,526,181
$0
$0
$8,573,537
$97,499,009
$26,401,692 $302,562,703
### ($185,601,307)

Loan Executive Buildup (Home Lending)

Loan

Office Size:
Small
Medium

Large

Loans per Loan Executive

Average Loan Size
Loan Exec. per FTE
Guarantee/Loan Executive
Salary per LTE
Commission %
Gain on Sale %
Other Income %
Variable Cost %
Fixed Costs per Loan Exec.
Direct (excluding Comp.)
Indirect
Corp. Allocated

Loan Office Size

Small
Med
Large
2.2
2.2
2.0
$225,000 $250,000 $250,000
3.5
3.0
2.5
$4,500
$4,500
$4,500
$6,000
$5,000
$5,000
1.40%
1.50%
1.60%
1.60%
1.50%
1.45%
0.32%
0.35%
0.40%
1.40%
1.40%
1.40%
$6,117
$6,117

$5,882
$5,882

Note: Only orange-shaded cells may be changed.

$5,646
$5,646

P&L per Loan Exec.

Mo./Mo. Growth
Loans per Loan Executive
Average Loan Size
Production per Loan Executive
Base Compensation
Guarantee/Loan Executive
Total FTE Salary
Total Base Comp.
Total Commissions
Total Compensation
Net GOS $
Other Income
Variable Costs
Fixed Costs per Loan Executive
Direct
Indirect
Corp. Allocated
Total Fixed
Total Costs
EBIT

Month 1 Month 2 Month 3 Month 4

1.00%
2.2
2.2
2.2
2.2
$225,000 $225,000 $225,000 $225,000
$495,000 $495,000 $495,000 $495,000
$4,500
$1,714
$6,214
$6,930
$13,144
$7,920
$1,571
$6,930

$4,500
$1,714
$6,214
$6,930
$13,144
$7,920
$1,587
$6,999

$4,500
$1,714
$6,214
$6,930
$13,144
$7,920
$1,603
$7,069

$4,500
$1,714
$6,214
$6,930
$13,144
$7,920
$1,619
$7,140

$6,117
$6,178
$6,240
$6,302
$6,117
$6,117
$6,117
$6,117
$0
$0
$0
$0
$12,234
$12,295
$12,357
$12,420
$32,309
$32,439
$32,571
$32,704
($22,817) ($22,932) ($23,048) ($23,165)

Month 5

Month 6

Month 7

Month 8

Month 9 Month 10 Month 11 Month 12

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
$495,000 $495,000 $495,000 $495,000 $495,000 $495,000 $495,000 $495,000
$4,500
$1,714
$6,214
$6,930
$13,144
$7,920
$1,635
$7,211

$4,500
$1,714
$6,214
$6,930
$13,144
$7,920
$1,651
$7,283

$4,500
$1,714
$6,214
$6,930
$13,144
$7,920
$1,668
$7,356

$4,500
$1,714
$6,214
$6,930
$13,144
$7,920
$1,685
$7,430

$4,500
$1,714
$6,214
$6,930
$13,144
$7,920
$1,701
$7,504

$4,500
$1,714
$6,214
$6,930
$13,144
$7,920
$1,718
$7,579

$4,500
$1,714
$6,214
$6,930
$13,144
$7,920
$1,736
$7,655

$4,500
$1,714
$6,214
$6,930
$13,144
$7,920
$1,753
$7,732

$6,366
$6,429
$6,493
$6,558
$6,624
$6,690
$6,757
$6,825
$6,117
$6,117
$6,117
$6,117
$6,117
$6,117
$6,117
$6,117
$0
$0
$0
$0
$0
$0
$0
$0
$12,483
$12,546
$12,611
$12,676
$12,741
$12,807
$12,874
$12,942
$32,838
$32,974
$33,111
$33,250
$33,390
$33,531
$33,674
$33,818
($23,283) ($23,403) ($23,523) ($23,645) ($23,768) ($23,892) ($24,018) ($24,145)

YEAR 1
2.2
$225,000
$495,000
$54,000
$20,571
$74,571
$83,160
$157,731
$95,040
$19,927
$87,890
$77,580
$73,406
$0
$150,986
$396,607
###

Loan Executive Buildup (Business Lending)

Loan Office Size:
Small
Medium

Large

Loans per Loan Executive

Average Loan Size
Loan Exec. per FTE
Guarantee/Loan Executive
Salary per LTE
Commission %
Gain on Sale %
Other Income %
Variable Cost %
Fixed Costs per Loan Exec.
Direct (excluding Comp.)
Indirect
Corp. Allocated

Loan Office Size

Small
Med
Large
2.2
2.2
2.0
$225,000 $250,000 $250,000
3.5
3.0
2.5
$4,500
$4,500
$4,500
$6,000
$5,000
$5,000
1.40%
1.50%
1.60%
1.60%
1.50%
1.45%
0.32%
0.35%
0.40%
1.40%
1.40%
1.40%
$6,117
$6,117

$5,882
$5,882

Note: Only orange-shaded cells may be changed.

$5,646
$5,646

P&L per Loan Exec.

Mo./Mo. Growth
Loans per Loan Executive
Average Loan Size
Production per Loan Executive
Base Compensation
Guarantee/Loan Executive
Total FTE Salary
Total Base Comp.
Total Commissions
Total Compensation
Net GOS $
Other Income
Variable Costs
Fixed Costs per Loan Executive
Direct
Indirect
Corp. Allocated
Total Fixed
Total Costs
EBIT

Month 1 Month 2 Month 3 Month 4

1.00%
2.2
2.2
2.2
2.2
$225,000 $225,000 $225,000 $225,000
$495,000 $495,000 $495,000 $495,000
$4,500
$1,714
$6,214
$6,930
$13,144
$7,920
$1,571
$6,930

$4,500
$1,714
$6,214
$6,930
$13,144
$7,920
$1,587
$6,999

$4,500
$1,714
$6,214
$6,930
$13,144
$7,920
$1,603
$7,069

$4,500
$1,714
$6,214
$6,930
$13,144
$7,920
$1,619
$7,140

$6,117
$6,178
$6,240
$6,302
$6,117
$6,117
$6,117
$6,117
$0
$0
$0
$0
$12,234
$12,295
$12,357
$12,420
$32,309
$32,439
$32,571
$32,704
($22,817) ($22,932) ($23,048) ($23,165)

Month 5

Month 6

Month 7

Month 8

Month 9 Month 10 Month 11 Month 12

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
$495,000 $495,000 $495,000 $495,000 $495,000 $495,000 $495,000 $495,000
$4,500
$1,714
$6,214
$6,930
$13,144
$7,920
$1,635
$7,211

$4,500
$1,714
$6,214
$6,930
$13,144
$7,920
$1,651
$7,283

$4,500
$1,714
$6,214
$6,930
$13,144
$7,920
$1,668
$7,356

$4,500
$1,714
$6,214
$6,930
$13,144
$7,920
$1,685
$7,430

$4,500
$1,714
$6,214
$6,930
$13,144
$7,920
$1,701
$7,504

$4,500
$1,714
$6,214
$6,930
$13,144
$7,920
$1,718
$7,579

$4,500
$1,714
$6,214
$6,930
$13,144
$7,920
$1,736
$7,655

$4,500
$1,714
$6,214
$6,930
$13,144
$7,920
$1,753
$7,732

$6,366
$6,429
$6,493
$6,558
$6,624
$6,690
$6,757
$6,825
$6,117
$6,117
$6,117
$6,117
$6,117
$6,117
$6,117
$6,117
$0
$0
$0
$0
$0
$0
$0
$0
$12,483
$12,546
$12,611
$12,676
$12,741
$12,807
$12,874
$12,942
$32,838
$32,974
$33,111
$33,250
$33,390
$33,531
$33,674
$33,818
($23,283) ($23,403) ($23,523) ($23,645) ($23,768) ($23,892) ($24,018) ($24,145)

YEAR 1
2.2
$225,000
$495,000
$54,000
$20,571
$74,571
$83,160
$157,731
$95,040
$19,927
$87,890
$77,580
$73,406
$0
$150,986
$396,607
###