1. Quick Money Wendy Rohrer Summit Credit Union

2. Who uses payday loans? Lower to middle class households Household Income $25,000 - $50,000 40% own their own homes 57% have a bank credit card

3. Why people use payday loans Best way to meet an immediate need for cash between $100-$500 May not have access to lower cost credit or they are already tapped out Convenient Anonymous

4. Why does Summit offer an alternative? In order to live our mission of improving members financial power, we need to provide an alternative to payday lending.

5. Quick Money March 2005 $1500 line of credit 29.9% fixed Annual fee of $25.00 Monthly payments of $75.00 Automatic payments required Member for 90 days Direct deposit

6. Profitability Assumptions Projected portfolio size of $2.5 million Average loan size $1316 Income from interest and fees Expenses – losses from charge-off, program expenses and marketing expenses

8. One Year Later – March 2006 773 Quick Money loans Average loan size is $1350 59% Female, 41% Male 58% in the 25-44 age range 84% have less than $1000 in deposit balances

9. Tightening the parameters $1000 line of credit 29.9% fixed Annual fee of $25.00 Monthly payments of $75.00 Automatic payments required Member for 1 year Direct Deposit

10. Where are we at today? 890 Quick Money loans Average loan size $1202 Delinquency 11% - 60+ Growth has slowed

11. Quick Money While the Quick Money loan has proved to be a more affordable payday loan alternative for our members, it has fallen short as far as helping members turn their lives around.

12. Questions Wendy Rohrer Assistant Vice President Lending Summit Credit Union 608-243-5000 ext 1226 wendy.rohrer@summitcreditunion.com