1st Portfolio Lending

“Come Share in Our Success” Michael J. Rebibo -CEO

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Confidential – do not copy or redistribute

In February 2009, a group of highly successful individuals formed 1st Portfolio Holding Corporation with the goal of building Washington, DC’s First Private Community Bank. The organization was capitalized with approximately $4 million and soon after acquired a small mortgage broker and a wealth management company. The mortgage broker was quickly converted to a mortgage lender.

The founder’s are committed to growing both organizations and ultimately purchasing or forming a community bank to complete the plan. Together, these companies will become the pillars of a successful Financial Institution that will service the needs of small businesses and individuals in the DC Metro area.

Corporate Summary

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Our Mission

We deliver innovative investment management, risk mitigation and banking services designed to help individuals and institutions in our community achieve and maintain financial independence and reduce exposure to financial risks.

Core Values

Values are an integral part of the culture at 1st Portfolio. Our core values include:

• Integrity and transparency in all aspects of our business.

• Create and deliver true financial value to our clients

• Strive for excellence in our products and services.

• Hire and maintain the best talent for all parts of our business

• Always strive for improvement.

Our Mission & Values

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It is essential that our Culture be designed to fit our core values and our corporate goals. If we do not design our own, we will inherit one by default. What is a Culture in the corporate world? We believe it is a set of common values; a clear set of ethics, contextual goals and commitments that management and employees adhere and aspire to. We commit to the following ideals:

1. Integrity: We have truthfulness in all our business dealings.

2. Communication: We actively listen to employees and clients.

3. Praise/Empowerment: Employees are always praised and encouraged to excel,

innovate, and feed their best ideas to management. Management is

committed to empowering its teams. When mistakes are made but

commitment is present, coaching is highly preferable to criticism.

4. Gossip: There is zero tolerance for gossip or demeaning of any team member,

client or anyone who is part of our network.

Our Culture

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5. Discipline: The practice of doing what should and must be done to achieve the desired results. Discipline is commitment to results that are greater than reasons for failure.

6. Professionalism: The highest standard held in presentations, actions,

confidentiality, prudence and loyalty.

7. Value: We are dedicated to producing quality work that is valuable and

and rewarding to our clients.

8. Competence with Authenticity: We know what we know; we know

what we don’t‘ know We hold no pretense and are committed to

acquire the best skills in our field.

9. Team Spirit: Individual accomplishment is important but always in support

of all team members.

10. Service: We are dedicated to contributing to our employees, clients, investors

and our community.

Our Culture

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Corporate Structure

1st Portfolio Holding Corporation

1st Portfolio Inc. Wealth

Management (RIA)

1st Portfolio Lending

Corporation

(Mortgage Company)

Capital Markets (Consulting &

Capital Markets)

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Products and Pricing

• Correspondent Relationships/Licensing:

Tier 1 Pricing and delegated underwriting with Chase, BB&T, GMAC, US Bank, and Wells Fargo

FHA Full Eagle, VA, USDA, & VHDA

States: MD, DC, VA, DE, & FLA; PA pending

• Broker/Portfolio Relationships:

Several Broker outlets for niche products and ARMs

Common Sense Portfolio Outlets

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• Out of the Box Portfolio Lending:

Construction Perm

Bridge Loans / Cross Collateralization Loans

Asset Based Loan Approvals

Investors with More than 10 Mortgages

Foreign Nationals with Limited or No Credit History

Non-Warrantable Condo’s

Second Trust Outlets to 90% CLTV

No 1st Portfolio Company Overlays on investor guidelines


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FHA - Credit Scores Below 640

FHA 203k Streamline

HARP and DU Refi Plus

Interest Only and 40 Year Amortization

Commercial Loans


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Service

In-House Processing, Underwriting, and Closing:

Processing Committed processing staff geared and motivated to close loans

fast

Very experienced A+ quality processing staff

Efficient Paperless System

Processing, underwriting, closing and origination software all on one platform allowing sales staff to track loans in real time from origination to close

Processor Bonuses paid by 1st Portfolio management based on performance and efficiency of each loan closed

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Service

Underwriting: Extremely Knowledgeable Underwriting department with

over 28 years Experience in the Mortgage Industry

One Underwriter is a Former Processor and Loan Officer. She understands the importance of making deals happen.

Underwriting Open Door Policy (you will have the underwriters cell number)

24-48 hr. Underwriting Turn Time

Loans Underwritten First, then Processed to Close

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Service

Closing: Very experienced, service oriented closing department

Committed to getting loan packages out 48 hrs. prior to settlement

Team players who understand the importance of servicing the client(buyers and agents) to help LO build and maintain solid relationships with their referral partners

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Service

We use Local Appraisers: Our processors order appraisals based on a rotating carousel using

5 different appraisal companies

All Appraisal Companies are hand picked by First Portfolio Lending

All Appraisers are very experienced in their market place

We do not use an appraisal service company

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Technology

1st Portfolio is committed to providing the best technology and innovation to its sales and support staff.

•Encompass Bankers 360 Edition

•Web Based

•Paperless

•Seamless with processing , underwriting, secondary & closing

•Optimum Blue Pricing Engine

•Product Eligibility

•Best Execution Grid

•Automated underwriting includes Investor overlays

•All investor guidelines available online

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Technology

•Customized Loan Officer Websites

•On-Line Applications

•Personalized bio and testimonials

•New Laptop or Desktop for all Originators

•Personalized Efax for each originator

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Marketing Assistance •Mortgage Market Guide

•Up to the minute updates on interest rate movement in the market

•Loan Tool Box Platinum Plus Membership

•Automated Marketing Drip Campaigns

•Personalized marketing templates

•Database Management

•Newsletters

•Lead Tracking

•White Picket Fence Newsletter

•1st Portfolio’s Referral Source Newsletter sent to your database on a weekly basis

•Constant Contact lead tracking to see who’s reading your emails and what content is generating the most interest

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Marketing Support

Realtor Marketing Programs:

• Company Sponsored Happy Hours

• Appraisal and Credit Workshops for Realtor offices

• “State of the Real Estate Market” presentations at Realtor sales meetings

Advertising and Branding Campaigns:

• Radio Advertising - WMAL

• Print Media Advertising – NVAR, GCAAR

• Sponsorships

Company Referrals:

• Committed to providing LO’s with new customers and referral sources through other company relationships

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Marketing Support

Events:

• The company currently sponsors 2 annual events to honor our clients and referral partners. The events are a great networking opportunity and a way to say thank you for being a loyal business partner. The evenings include great music, food and full service bar.

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Compensation

Commission Schedule:

• Correspondent Channel 75 bps

• Broker Channel 60 bps

• “House” Referral 50 bps

Quarterly Bonus:

• Up to 5 bps

• Criteria subject to change on a quarterly basis

Annual Bonus:

• 5 bps

• Minimum Volume $15,000,000 (2012)

• Prorated based on start date

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Additional Benefits

You will be provided the following:

• Private Office

• Paid assistant based on minimum production levels

• Signing bonus based on production level

• Upfront marketing cash based on production level to introduce the company to your referral partners and previous clients

• Approved marketing expenses: split 50/50

• Licensing expenses: split 50/50

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Company Benefits

• 401K Plan

• Health Insurance with United Healthcare

• Dental and Vision Insurance Optional

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Transition Plan

You will be assigned a “transition coordinator” who will handle all issues related to your move including the following:

• Licensing

• Mailer to previous clients and all referral partners introducing new company and contact info.

• Business Card Design

• Planning and Coordinating an event for your referral partners and/or previous clients

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Transition Plan Con’t

• Origination and Pricing Engine Training

• You will be shadowed by a Senior Loan Officer until you are up and running efficiently on your own.

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Jacques Rebibo, Chairman, 1st Portfolio Holding Corp. - Chairman of Access National Corporation, a NASDAQ-listed bank holding company, from 2000 to 2009. CEO and Chairman of Selfware, Inc., a software development firm. From 1985 until 1996, CEO of Mortgage Investment Corporation. Director, Fairfax Bank and Trust Company, 1986 to 1995. Past principal of four publicly-traded corporations. Memphis State University, B.S., Mathematics. University of Maryland, M.A., C.F.P.

Michael Rebibo, CEO, 1st Portfolio Holding Corp. - Previously President of 1st Portfolio Inc., a Registered Investment Adviser. Co-founder of Access National Corporation, a NASDAQ (ANCX)-listed bank holding company. President and CEO of Access National Mortgage and SVP Access National Bank. President and CEO of Financial Security Corporation, a fee-only financial planning firm. Director Brain Injury Services, Inc., Wolf Trap Center for the Performing Arts, Shenandoah National Park Trust, and the Survivors Fund Distribution Committee. CFP®. MBA in Finance, George Washington University. BA in Finance from James Madison University.

Executives and Directors

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Jonathan Holtaway, Chief Investment Officer, 1st Portfolio Holding

Corp. - Currently President of Ategra Capital Management, LLC and investment manager and advisor to community banks. Formerly, Managing Director and Partner, Danielson Capital, LLC, an investment banking company. Between 1992 and 2001, Mr. Holtaway was Associate, Vice President and Partner of Danielson Associates Inc., the predecessor company to Danielson Capital, LLC, where he provided strategic planning, capital, merger and branching advice to firm clients. Member of Rotary International and Viva Vienna, a community festival that raises money annually for more than 30 local charities. Graduated University of Pennsylvania and Wharton School of Business with a B.S. in Economics and a B.A. in History.

Executives and Directors

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Stephen M. Cumbie, Director - Chief Executive Officer of NVCommercial, NVRetail and Metro Realty Group, which together perform commercial real estate investment, development and services with $500 million of completed and in-process projects in Washington, D.C. and Denver. Executive Director of the Center for Real Estate Development at the University of North Carolina’s Kenan-Flagler Business School. Formerly, President of Elm Street Development, a residential land development company, and founder of all “NV” companies including NVR, a publicly traded home-builder operating as Ryan Homes and NVHomes. Current Chair INOVA Health System and currently serving on the boards of UNC College of Arts and Sciences Foundation, SonoMedica Inc. and Washington Woodworking. Past director/member of Fairfax County Chamber of Commerce, NVR Inc., Potomac Bank of Virginia, Virginia Public Buildings Board and Virginia Port Authority Board. Phi Beta Kappa graduate of the University of North Carolina and MBA from UNC in 1973.

Nis Nissen, Director – Founder and President, Nissen Advertising 1971 to 2006, a top ten advertising and public relations company in the Tampa-St. Petersburg market. Former Chairman FloridaFirst Bank, a 19-branch, $830 million asset bank headquartered in Lakeland, Florida sold to SouthTrust in 2004 for $154 million. Trustee of Florida Retail Federation Self-Insurers Fund and Director of BusinessFirst, a private insurance company. Former director of Metatec, a NASDAQ-listed technology company based in Columbus, Ohio. Director or member of several charitable organizations including the Polk Museum of Art, Rotary, Lighthouse Ministries, Goodwill Industries and Dixieland Community Redevelopment Agency, among others. Former adjunct professor, Florida Southern - Advertising and Public Relations.

Organizers and Directors

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Michael P. Kostoff, Director - Managing Partner of The Kostoff Group, an advisory firm focusing on the wealth management, private banking, investment management, insurance and retirement services businesses. Prior to founding The Kostoff Group, Mr. Kostoff managed the Financial Services Research Practice for the Corporate Executive Board, where he worked with the senior-most executives from over 600 institutional relationships spanning five continents. Mr. Kostoff speaks frequently to major industry groups around the world—to include the ABA’s Trust and Private Banking Conference, the Securities Industry and Financial Markets Association among others. Mr. Kostoff is a graduate of West Point, holds an M.S. in Strategic Intelligence from the Defense Intelligence College and a Masters in Public Administration from the Kennedy School of Government at Harvard University.

Richard Banziger, Director - President and CEO of PayBridge, a national provider of payroll, human resource and retirement services. Mr. Banziger’s unique approach to payroll and HR has put PayBridge on the fast track to be a leader in the industry. Leveraging his 25 years of experience running a regional retirement plan company, Retirement Planners and Administrators (RPA), he has used his network to distribute PayBridge offerings nationally. Mr. Banziger is an Accredited Pension Administrator (APA) and Accredited Pension Representative (APR) certified by the National Institute of Pension Administrators (NIPA). Mr. Banziger is an active advisor and consultant to RPA’s extensive client list, representing some of America’s most accomplished retirement plan programs.

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John Oswald, Director - Mr. Oswald is the President and CEO of the

Capital Trust Group, an international merchant/investment bank with offices in London, New York, and Washington, D.C. Mr. Oswald is responsible for the U.S. operations of the Group and its worldwide investment banking operations. His responsibilities have included managing a number of private equity funds, both in the U.S. and European markets which have focused on mezzanine and equity investments ranging from approximately $10 million to $100 million in middle market, private and public companies with revenues from $20–$1 billion. Mr. Oswald has also managed an extensive portfolio of real estate comprised of office/retail space primarily in suburban areas in the U.S and Europe. The investment banking/advisory function of Capital Trust includes advising clients with respect to mergers and acquisitions, financings and dispositions of holdings in the oil and gas, real estate, entertainment, education, construction, media and communications areas.

Prior to joining Capital Trust in 1993, Mr. Oswald was a partner in the

international law firm of Lord Day & Lord. He began his career as an accountant at Arthur Andersen & Co. and he is a certified public accountant.


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• Carl Biggs, Director - As President and General Manager of C & E Services Inc., Mr. Biggs has the overall responsibility for managing sales of more than $15,000,000 annually for wastewater treatment and engineering services. Primarily, he provides overall management strategies for wastewater treatment applications related to the operation of steam generating and air conditioning systems, wastewater clarification, and a variety of engineering services. Also, he manages water treatment programs that enable power plant facilities to improve corrosion inhibition and clean wastewater to reduce pollution from power plant operations. Carl is the current chairman of the Board of Directors for Community Coalition for Haiti, which provides clean water for the hospital in Pignon, Haiti and was Vice Chairman of Crosslink International from 2004 – 2008.

He is a member of the following Inova Health Systems Boards or Committees: Inova Health System Board of Trustees, Inova Health System Governance Committee, Imanco Board, Inova Health System Finance and Audit Committee, Inova Health System Pension/Investment Sub-Committee. Mr. Biggs frequently volunteers for Habitat for Humanity projects.


Documents

1st Portfolio Lending