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InformationfortheBoardofDirectors
andSeniorManagementTeam
October2015
Currentsituation
Weoperateasabrokerforahandfulof
companiesthatagreedtobuyourloans
4originatorswhodedicatepartoftheirtimeto
secondarymarketloans
Ourproductionisinconsistentandnotvery
profitable
Ourproductsanddeliveryarenotcompetitive
Weeitherneedtogrowtoaprofitableand
competitivelevelorexitthelineofbusiness
Mortgagemodels
Broker
Originate loans funded by third
parties
Loans closed in third party name
Loans never held by us
Minimal level of products
Little customer pricing
flexibility
Underwriting done by third
party
Underwriting standards
determined by third parties
Low risk
Low return
Best suited for annual
production under $100 million
Loans locked with third party
No interest rate risk
Buyback risk generally limited
to fraud
Correspondent
Originate loans in our name
Direct
Originate loans in our name
Currentopportunity
Startupapurchasebasedmortgagebusinessin
MiddleGeorgia
HeadquarteredinWarnerRobins,possible
operationsalsoinMacon
LedbyacandidatethatBillDanielintroducedto
theBank
Currentlyheworksforalargebankwitha
significantmortgagedivision
SalesmanagerforAtlantaregion,basedin
Marietta
SuccessfulinrecruitingoriginatorsintheAtlanta
market
Hasrunhisownmortgagecompanyinthepast
Currentopportunity(continued)
Consultantwithsignificantexperienceinstarting
andrunningmortgagecompanieswhohas
agreedtohelpussetuptheoperationsofthe
mortgagedivision
Candidateforanoperationsmanagerwith
significantexperienceandknowledgeofmiddle
Georgiamarkets
Windowofopportunitytogainmarketshareand
recruitoriginatorsbasedonthetimingandthe
previousemployerofallthreeindividuals
Currentopportunity(continued)
PattiDeal/RobinBratcherwouldhandlein
housemortgageloansandwewillcentralized
thatprocess
Otheroriginatorswillfocusontheirprimaryjob
duties generallycommercialandsmallbusiness
lendinganddeposits
Windowofopportunitytogainmarketshareand
recruitoriginatorsbasedonthetimingandthe
previousemployerofallthreeindividuals
Comparison
Secondarymarketmortgageloanstodaycome
primarilyfromourbranchnetworkorfrom
callingonindividualcustomers
Theproposedmodelwillgeneratestandalone
businessindependentofourbranchnetwork
Primaryoriginationwillcomefromreferralsfrom
realtorsonpurchasetransactions
Thisprovidesamorestablerevenuesourcethan
brancheswhichrelymoreheavilyonrefinance
activity
Personneltiming
Lookingtostartwithkeypersonnelhiresinthe
next10to20days
WouldliketobringoriginatorsoverinJanuary/
Februaryintimetopickupthespringhome
purchasebusiness
Add7originatorsinthefirst12months
Add5originatorsinthenext12months
14totalstaffbytheendofyear1
22totalstaffbytheendofyear2
Compensation
Divisionpresident
Salaryplusabonusbasedona%ofdivisionprofits
Originators
Commissionbasedona%ofloansoriginated
Operationsmanager
Salaryplusadiscretionarybonus
Processors
Salaryplusaperfilefee
Operationsstaff
Salaryplusaperfilefeeforsomepositions
Georgiamortgageoriginators
MortgageoriginationsbyMSA
Marketopportunity WarnerRobins
Proformafinancials
PlantersFIRST
Mortgage Pro Forma Projections
Q4 2015
750,000
5
150,000
Q1 2016
4,500,000
30
150,000
Q2 2016
10,000,000
67
150,000
Q3 2016
15,750,000
105
150,000
Q4 2016
21,000,000
140
150,000
859
13,875
7,500
6,375
28,609
5,156
83,250
45,000
38,250
171,656
11,458
185,000
100,000
85,000
381,458
18,047
291,375
157,500
133,875
600,797
24,063
388,500
210,000
178,500
801,063
Fixed expenses
Variable expenses
96,820
22,550
117,420
156,000
126,690
278,933
162,225
391,644
131,325
538,731
Total expenses
119,370
273,420
405,623
(90,761)
(101,764)
(24,165)
553,869
46,928
670,056
131,006
(90,761)
Originations
Number of loans
Average size
52,005
Annual originations
Percentages of origination
Gain on sale
Origination fee
Other fees
Expenses
Net income
51,250,000
1.85%
1.00%
0.85%
3.70%
1.85%
1.00%
0.85%
3.70%
1.85%
1.00%
0.85%
3.70%
1.85%
1.00%
0.85%
3.70%
1.85%
1.00%
0.85%
3.70%
15.92%
6.08%
4.06%
3.52%
3.19%
-12.10%
-2.26%
-0.24%
0.30%
0.62%
PlantersFIRST
Mortgage Pro Forma Pro
Q1 2017
24,500,000
163
150,000
Q2 2017
30,500,000
203
150,000
Q3 2017
34,500,000
230
150,000
Q4 2017
34,500,000
230
150,000
Q1 2018
34,500,000
230
150,000
Q2 2018
34,500,000
230
150,000
Q3 2018
34,500,000
230
150,000
Q4 2018
34,500,000
230
150,000
28,073
453,250
245,000
208,250
934,573
34,948
564,250
305,000
259,250
1,163,448
39,531
638,250
345,000
293,250
1,316,031
39,531
638,250
345,000
293,250
1,316,031
39,531
638,250
345,000
293,250
1,316,031
39,531
638,250
345,000
293,250
1,316,031
39,531
638,250
345,000
293,250
1,316,031
39,531
638,250
345,000
293,250
1,316,031
Fixed expenses
Variable expenses
109,695
673,310
118,965
819,507
123,600
917,659
123,600
917,659
123,600
917,659
123,600
917,659
123,600
917,659
123,600
917,659
Total expenses
783,005
151,568
938,472
224,976
1,041,259
274,772
1,041,259
274,772
1,041,259
274,772
1,041,259
274,772
1,041,259
274,772
1,041,259
274,772
Originations
Number of loans
Average size
926,088
1,099,088
124,000,000
138,000,000
1.85%
1.00%
0.85%
3.70%
1.85%
1.00%
0.85%
3.70%
1.85%
1.00%
0.85%
3.70%
1.85%
1.00%
0.85%
3.70%
1.85%
1.00%
0.85%
3.70%
1.85%
1.00%
0.85%
3.70%
1.85%
1.00%
0.85%
3.70%
1.85%
1.00%
0.85%
3.70%
Expenses
3.20%
3.08%
3.02%
3.02%
3.02%
3.02%
3.02%
3.02%
Net income
0.62%
0.74%
0.80%
0.80%
0.80%
0.80%
0.80%
0.80%
Otheradvantages
Thismodelprovidesforinexpensiveexpansionto
othermarketswhencomparedtoafullbranch
Possibilitiesinclude
WarnerRobins
Tifton
Albany
Athens
Other
Mortgageisoftenaleadproducttodevelopnew
customerrelationships
Experienceinnichebusinesscanleadtoother
nichebusinesses
Riskdiscussion
Majorrisks
Interestrate
Buyback/credit
Interestrateriskmitigation
Centralizedlockdesk
Centralizedmonitoringoflockactivity
Buyback/creditriskmitigation
Centralizedunderwriting
Correspondentmodel
Otherrisks
Execution
Reputation
Compliance/regulatory
Other
Riskoversight
Boardmonitoringandreporting
Mortgageadvisoryboard/committee
Seniormanagementoversight
Roleofthirdpartyreview
Audit
Compliance
Qualitycontrol
Roleofinternalaudit/compliance
HeathFountain Mortgage
ExperienceatHBOS
2010 2012 Mortgageoperationsreportedto
meandproductionreportedtoourChief
BankingOfficer
2012 2015 Entiremortgagedivisionreported
tomeandourChiefBankingOfficerjointly
Servedasamemberourmortgageadvisory
board
Servedasamemberofourmortgagerisk
committee
2014originations>$1billion
2015originations approx.$1.8billion
Nextsteps
Negotiatecontractwithdivisionleader
Recruitoperationsmanager
Bringthosetwoonboard
Communicatedetailplanwithregulators
Establisharrangementswithcorrespondent
lenders
AcquireofficespaceinWarnerRobins/Macon
Addbackofficestaff
Addoriginationstaff
Brandingdecisions
Questions&Answers