1. Helping Community Banks Thrive in a Slow Mortgage Market SMART Consulting

2. Introducing our TEAM! Craig Goetz, CEO Brett Toyne, President Del Peterson, CFO

3. An Industry In Transition Sub-Prime Lending Causing large, national mortgage companies to fail Bank of America invests $2 billion in Countrywide Higher Rates Eliminated the refinance market and reduced fee income Slowed new construction Overall Economy Stock market volatility Home-owner and home-buyer hesitation

4. The Perfect Time to Plan! Community banks are typically “clean” They did not get involved in sub-prime Community bankers are neighbors They listen They are trusted And they are convenient

5. August 22… Mortgages: Smaller banks smell blood!

6. Community bankers realize… They may have a competitive advantage Not involved in sub-prime lending; no bad press They are unique and community-oriented They can reclaim a lost market Making people aware they do mortgage lending Generate quality assets and new fee income Use mortgage as the core of a banking relationship

7. Are you ready to act? Do you have…. Trained, qualified Mortgage personnel Confidence in your products and programs Effective marketing materials A plan of action

8. SMART can help you seize this opportunity! We can assist you to… Structure an efficient mortgage operation Have access to all of the best programs Recruit, staff and/or train for effectiveness Position your bank for greater profitability

9. How We Support Community Banks S ales & Marketing M ortgage Services A cquisitions R ecruiting T raining

10. We will focus on helping you build and market a profitable and dynamic mortgage operation!

11. Understanding Your Concerns 85% drop in mortgage income Reduced asset quality Lower fee income Narrowing margins New competition (Wal-Mart Bank) Need for better sales skills Dated products & sales material assessment

12. Elements of our mortgage assessment & analysis: Lender Sourcing Product/program Selection Operations IT/Software Consulting Title Services

13. Lender Sourcing We work with only highly-respected Lending sources Responsive Investors who understand and respect community bankers needs Highly competitive fee structures

14. Operations We focus on efficiency- minimizing time demands on bank staff We focus on creating a sustainable, profitable Mortgage Model We ensure compliance

15. IT and Software We recommend only proven systems with an eye for minimizing costs We recommend only proven systems that maximize simplicity and customer responsiveness

16. Title Services Providing Services to assist all of your Bank and Mortgage Title needs Special emphasis on: Responsiveness Reliability Accuracy Competitive Fees

17. The next phase: Staffing & Training Recruiting Sales & Management training Mortgage training: Sales and operations Taking Quality Loan applications Loan Processing Management and P & L training

18. Products & Services Enhanced consumer offers Restructured Mortgage operations & services Stronger Mortgage sales & Bank cross-selling renewal

19. Ads Web site enhancements

20. Ongoing Assistance Mortgage: Recruiting Sales & Management personnel Lender Product & program selection Marketing Title Services Counsel on profitability & productivity

21. Increased profitability through… The right staffing levels - outsourcing Recruiting the best personnel Improved operations and efficiency Budgeting & strategic planning Greater market share through… Branding Increasing Sales effectiveness Better marketing Higher customer retention Results

22. Signage

23. direct mail Materials to launch mortgage services

24. Individualized Brochures for Lending Officers

25. Our Pledge Easier management of your mortgage operations Minimize costs/Maximize Revenue Greater resilience in a down market Faster response to a growing market Stronger Growth & Competitive position our pledge