Installment Lending: Post Payday PDLBA November 14, 2006 Trent Sorbe (605)

Bank Installment Lending: Post Payday Lending First Bank of Delaware –Similar to AFP –Currently restructuring First Bank & Trust (fka Community SB) First Bank & Trust

Regulators Approach to Use of Third Parties and Outsourcing Expectations continue to increase Bank responsible to regulators and customers for activities of third parties Reputation of partner and risk to bank’s reputation “Managing it like its your own” Full time vendor management and oversight process

Regulatory Expectations Straightforward Product X Minimal Reliance on Third Party for Product Underwriting and Delivery X Thorough Underwriting X Bank Actively Involved in Delivery X Key Operations Centralized X Feb. 17, 2006: Lessons Learned

Bank-Model Loan Origination Process Website Loan Application Direct Call Loan Agent Takes Applicatio n Automated Loan Underwriting or Discuss Approval & Loan Terms Approve Loan Application Ends Borrower Sends to Company Voided Check and Verification of Employment (and Income if applicable) Decline Documentation is Manually Approved by Underwriting Dept. Marketer/Bank Calls Employer to Verify Loan Documents E- mailed to Borrower Borrower Signs Loan Documents Electronically Documents Reviewed by Funding Dept. and Loan Funded by Bank Yellow = Marketer functions Blue = Bank functions White = System or Borrower Functions

Another Option: Lines of Credit Advantages: –Less paperwork –Uniform upfront TILA disclosures –No signatures –New advances easy and fast – no documentation Disadvantages: –Periodic statements

Revel Advance Terms Offered in conjunction with the Revel Prepaid MasterCard Line of credit up to $1,000 ($200 initially) –Credit limit – Established based on direct deposit activity to the card and verified net income Risk-Based Pricing –Monthly maintenance fee (when there is a balance outstanding) ranging from $ $9.95 –Cash advance fee ranging from 8% - 12% Minimum payment 20% of credit limit –Abuse Prevention –Ensures fixed payment amount for customer –Repayment automatically from the Revel Card and tied to date direct deposits are historically made

Revel Advance: Other Features Loan repayment performance will be reported to the credit reporting agencies Revel card fees are in line with Wells Fargo’s Direct Deposit Advance fee structure – a program touted as a viable short term credit alternative by the CFA and CRL