1. GROUP 3- Unsecured Loans Amanda Ackman Amanda Hayward Said Ngobi Allison Venable

2. Delinquency Rates Calculated percent delinquent for each month by tier and delinquency category Calculated percent delinquent for each month by tier and delinquency category Constructed a scatter plot for each tier and category and fitted a curve Constructed a scatter plot for each tier and category and fitted a curve Noticed the curves have peaked and are now decreasing Noticed the curves have peaked and are now decreasing Concluded that the delinquency rates are falling Concluded that the delinquency rates are falling

5. Loan Prepayments Found the percentage of prepayments for each month in each tier Found the percentage of prepayments for each month in each tier Created a scatter plot for each tier to show how the prepayments change over time Created a scatter plot for each tier to show how the prepayments change over time Noticed that the percent prepaying is staying around 2-3 percent while loan amounts are steadily increasing Noticed that the percent prepaying is staying around 2-3 percent while loan amounts are steadily increasing A-tier prepayments stay a little higher, around 3 percent while B and C stay around 2 percent A-tier prepayments stay a little higher, around 3 percent while B and C stay around 2 percent D-tier and Mergers are higher and very inconsistent D-tier and Mergers are higher and very inconsistent

6. A -Tier Prepayments

7. B and C Tier Prepayments

8. D-Tier and Merger Prepayments

9. Loan Originations Calculated percentage of loan originations for each tier Calculated percentage of loan originations for each tier Created a scatter plot for each tier Created a scatter plot for each tier Noticed a significant increase in A-Tier loans with decreases in Mergers and C-Tier loans Noticed a significant increase in A-Tier loans with decreases in Mergers and C-Tier loans C and D Tiers and Mergers each make up less than 10% of the originations after quarter 3 C and D Tiers and Mergers each make up less than 10% of the originations after quarter 3

11. Charge-offs Calculated percent of charge-offs for each quarter since origination for each month Calculated percent of charge-offs for each quarter since origination for each month Created a graph for each tier and month, then fitted a curve Created a graph for each tier and month, then fitted a curve Noticed this data was not very consistent from month to month Noticed this data was not very consistent from month to month Decided to compile data into two groups for analysis: the first two quarters and the second two quarters Decided to compile data into two groups for analysis: the first two quarters and the second two quarters

12. Months 24 and 25 B-Tier B-Tier Month 24B-Tier Month 25

13.  A-Tier seemed to peak a little later than the others  Peak about 5-7 quarters from origination A-Tier Average of first two quartersA-Tier Average of second two quarters

14.  C-Tier was very similar to B, D, and Merger  Seemed to peak around 3-4 quarters after origination C-Tier Average of first two quartersC-Tier Average of second two quarters

15.  The biggest jump in percentages from one tier to the next is from B to C  There seems to be a definite distinction between the customers in these two tiers

16. Overall Charge-offs We noticed that between the first two and second two quarters of data there was a decrease in the percentages of charge-offs for all tiers except C- tier which remained constant We noticed that between the first two and second two quarters of data there was a decrease in the percentages of charge-offs for all tiers except C- tier which remained constant It is evident that the bank is accurately rating customers because of the trend differences between A and B tiers and the percentage differences between B and C tiers It is evident that the bank is accurately rating customers because of the trend differences between A and B tiers and the percentage differences between B and C tiers

17. Conclusion Delinquency rates seem to be improving. Delinquency rates seem to be improving. Prepayment percentages appear to be steady. Prepayment percentages appear to be steady. Loan mix is becoming less risky. Loan mix is becoming less risky. Percent of charge-offs seems to be lowering slightly. Percent of charge-offs seems to be lowering slightly. As the total amount loaned has increased, the analysis of our data has shown that the quality of loans has also increased; therefore, we recommend that the bank continues expanding loan volume to maximize profit. As the total amount loaned has increased, the analysis of our data has shown that the quality of loans has also increased; therefore, we recommend that the bank continues expanding loan volume to maximize profit.