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 2016, Scott Beber, ExcelModels.com (scott@ExcelModels.com)

Tab:

Blend
FixedInputs
VariableInputs
HomeLend
BusLend
RollupP&L

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

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

KeyMetrics
Breakeven
Loan Office
HomeExec
BusExec

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

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%

an 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
Number of support staff
Sales Associate costs

$0
10
$0

$100,000,000
20
$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
2
3
$10,000
$20,000

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

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

$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
30
$0

$500,000,000
40
$0

$750,000,000
50
$0

$1,000,000,000
60
$0

$2,000,000,000
70
$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
5
6
7
8
$30,000
$40,000
$50,000
$60,000
$70,000

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

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

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

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

$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

LOAN TYPE
Super Conforming
Call Center Wholesale

Other

Retail

Other

$28,000,000
$500,000

$28,000,000
$100,000

$22,000,000
$400,000

$2,000,000
$350,000

$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

Other

$11,000,000
$400,000

$1,000,000
$350,000

$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

HeldRetail

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

Retail

FHA
Call Center

Wholesale

$3,124,969
$300,000

$624,994
$100,000

$8,749,913
$150,000

$8,749,913
$300,000

$1,749,983
$100,000

$24,499,755
$150,000

$15,624,969

$3,124,994

$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

TRIBUTION CHANNEL

LOAN TYPE

Wholesale

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

HANNEL

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

Conf'g
$7,500,000
$5,000,025
$185,000

Held-for-Sale
Sup.Conf'g
FHA
$37,500,000 $105,000,000
$25,000,125
$70,000,350
$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 $12,499,875
$34,999,650
$185,000
$185,000
$185,000
33%
33%
33%
$12,499,975 $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

Held-for-Sale
Home Lending
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

Held-for-Sale
Business Lending
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

%Gr/M:

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

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
Deferred Costs
Net Def'd Fees/Costs
Total Revenue

$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
$40,000
$309,997
$9,514,187

Variable Costs
Loan-related
Leads
Commissions
Total Variable Costs

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

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

Total
Business Lending
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

$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

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

$12,714,081

Net Operating Margin

Fixed Costs

$10,460,955

$87,264
$73,362
$2,092,500
$2,253,126

Direct
Indirect
Corporate Alloc.
Total Fixed Costs
Total Costs

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

EBIT / NOPLAT

$10,302,955

Loan Loss Reserve

Net Operating Income

$275,000
$10,027,955

ROLLUP
Gross Volume

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
Direct
Indirect
Corporate Alloc.
Total Fixed Costs
Total Costs

$11,207,499

EBIT / NOPLAT

$10,903,499

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

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

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
$40,400
$313,097
$9,609,329

357031.42965 360601.7439465 364207.761386 367849.8389998

$40,804
$41,212
$41,624
$42,040
$316,228
$319,390
$322,584
$325,810
$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
$2,113,425
$2,275,657

$89,018
$74,837
$2,134,559
$2,298,414

$89,908
$75,585
$2,155,905
$2,321,398

$90,807
$76,341
$2,177,464
$2,344,612

$91,715
$77,104
$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
$42,885
$43,314
$43,747
$44,184
$329,068
$332,359
$335,682
$339,039
$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
$2,221,231
$2,391,738

$93,558
$78,654
$2,243,443
$2,415,656

$94,494
$79,441
$2,265,878
$2,439,812

$95,439
$80,235
$2,288,536
$2,464,210

$96,393
$81,037
$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
$507,295
$345,854
$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
$2,334,536
$2,513,741

$1,106,720
$930,416
$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

DISTRIBUTION CHAN
Fixed Costs
Direct
Indirect
Corporate Alloc.
Total

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

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
Supporting FTEs
16
Average FTE Salary
$6,000

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

275
2
$55,000,000
138
20
$0
$110,000,000
$14
10
10
$6,000

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
Loan Executives
Loan Exec. Salary
Volume/Loan Exec.
Loans/Loan Exec.

8
1

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
23
$7,500
$4,347,848
24

270
1
$49,999,500
270
14
$7,500
$3,571,393
$19

Loan Exec./Loan Offi

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

12
16
$6,000
8
1

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

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
2
$6,000

80
n/a
n/a
n/a
1
$10,000
$40,000,000
$80
n/a
2
$6,000

Retail
$42,000
$35,000

Conforming
Call Center
$7,000
$1,400

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

$77,000

$8,400

400
n/a
n/a
n/a
1
$10,000
$40,000,000
$400
n/a
2
$6,000

193
1
$55,000,000
138
14
$0
$77,000,000
$14
10
7
$6,000

20
n/a
n/a
n/a
1
$10,000
$7,000,000
$29
n/a
1
$6,000

n/a
2

n/a
2

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

n/a
2

5
1

n/a
2

DISTRIBUTION CHANNEL
Call Center
Wholesale
Held-for-Inv.
Held-for-Sale
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-Inv.
Held-for-Sale
$30,000
$30,000
$25,000
$25,000
$0
$0
$55,000
$55,000

83
1
$25,000,125
83
10
$0
$2,500,013
$8

42
1
$12,499,875
42
10
$0
$1,249,988
$4

$168,833
0.38%
$19,000

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

$352,658
0.38%
$266,001

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

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

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

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

10
5
$6,000
5
1

10
5
$6,000
5
1

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

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

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
1
$6,000

280
n/a
n/a
n/a
1
$10,000
$28,000,000
$400
n/a
1
$6,000

55
0
$55,000,000
138
4
$0
$22,000,000
$14
10
2
$6,000

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

16
n/a
n/a
n/a
0
$10,000
$8,000,000
$80
n/a
0
$6,000

n/a
2

n/a
2

5
1

n/a
2

n/a
2

LOAN TYPE
Wholesale
Conforming
Super Conforming
Held-for-Inv. Held-for-Sale Held-for-Inv. 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
1
$10,000
$34,999,650
$233

$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
1
$0
$2,500,013
$8

3
n/a
n/a
n/a
0
$10,000
$5,000,025
$50

23
n/a
n/a
n/a
0
$10,000
$70,000,350
$467

21
0
$25,000,125
83
3
$0
$2,500,013
$8

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

10
0
$6,000
5
1

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

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

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
0
$6,000

28
0
$55,000,000
138
2
$0
$11,000,000
$14
10
1
$6,000

3
n/a
n/a
n/a
0
$10,000
$1,000,000
$29
n/a
0
$6,000

8
n/a
n/a
n/a
0
$10,000
$4,000,000
$80
n/a
0
$6,000

40
n/a
n/a
n/a
0
$10,000
$4,000,000
$400
n/a
0
$6,000

n/a
2

5
1

n/a
2

n/a
2

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

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

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

Wholes.
$7,000
$1,400

$3,000

$3,000

$38,500

$8,400

$8,400

13
n/a
n/a
n/a
0
$10,000
$5,000,025
$50

117
n/a
n/a
n/a
0
$10,000
$70,000,350
$467

58
1
$25,000,125
83
7
$0
$2,500,013
$8

35
n/a
n/a
n/a
1
$10,000
$5,000,025
$50

327
n/a
n/a
n/a
1
$10,000
$70,000,350
$467

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

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

10
4
$6,000
5
1

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

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
$0
$1,249,988
$4

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

12
n/a
n/a
n/a
0
$10,000
$34,999,650
$233

10
0
$12,499,875
42
3
$0
$1,249,988
$4

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

58
n/a
n/a
n/a
0
$10,000
$34,999,650
$233

10
0
$6,000
5
1

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

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

10
1
$6,000
5
1

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

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
7
$0
$1,249,988
$4

17
n/a
n/a
n/a
1
$10,000
$2,499,975
$25

163
n/a
n/a
n/a
1
$10,000
$34,999,650
$233

10
4
$6,000
5
1

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

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
1.00%
$310,000,000
590
$525,424
190

Month 2

Month 3

$313,100,000
596
$525,424
192

$316,231,000
602
$525,424
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
###

e array calculations that will fail if modified.

Month 4

Month 5

Month 6

Month 7

Month 8

$319,393,310
608
$525,424
196

$322,587,243
614
$525,424
198

$325,813,116
620
$525,424
200

$329,071,247
626
$525,424
202

$332,361,959
633
$525,424
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
639
$525,424
206

$339,042,435
645
$525,424
208

$342,432,859
652
$525,424
210

$345,857,187
658
$525,424
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
$1,140,000
$3,795,000
2.66%
$9,191,155
$12,986,155
1,351
$255,963
2.66%
$9,191,155
$1,097,834
$4,842,001

$31,860,000
$13,680,000
$45,540,000
2.66%
$104,481,630
$150,021,630
15,360
$255,963
2.66%
$104,481,630
$12,479,766
$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:

1
Small
Large
Medium

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:

1
Small
Large
Medium

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
###