Presentation to XXXXXX 1

“DDA RECOVERY PLUS”

THE TOOL TO HELP YOUINCREASEYOUR

Non-Interest Income

Presentation to XXXXXX 2

What some of Mike’s Banks are saying

“…We have reordered the system 2 times already in the past 3 years and are receiving a ROI of $6.18 to $1.00. Not bad considering this is found money that

is usually written off at 60 days and placed into ChexSystems…”

— Lance McDougal VPO/Western National Bank Midland

“…It has been my pleasure to work with Transworld Systems Inc., as our collection agent for bad debts

on checking accounts since 1991…” — Leonard Lidiak Chairman Emeritus/State National Bank Texas

“…We have been a client of TSI for 15 years. The best part of TSI is the personal service that you provide for us. TSI has been our most valuable source of

collecting on our DDA accounts in the past and we plan on having much success in the future…

— Sandra Milles OD Coordinator/First Federal Bank Roswell

Presentation to XXXXXX 3

What some of Mike’s Banks are saying

“…Since we joined, the bank has collected on overdrawn accounts that would have been losses. We highly recommend the program to other

banks for their overdraft losses… — Ginger Myska EVP/Inter National Bank McAllen

“…I have worked with Mike since 1988. Working with Mike and Transworld since that time has seen many changes. The collection process has evolved from rolling paper forms into a typewriter and splitting the

carbon forms for processing to the simple act of inputting information directly to your system to start the collection process.… ”

— Diana Rivas Support Services Manager/Citizens Bank of Las Cruces

“…We find the system very user friendly. Overdrafts and closures are submitted through the TSI website. Our staff is able to update

submitted accounts, as well as review accounts & reports at our convenience, without phone calls and/ or emails to review current

information…”

- Catherine Barton Account Manager/Alamogordo FSB

Presentation to XXXXXX 4

Capital City Bank

Sturgis Bank and Trust

Citizens Bank

NBSC Deposit Processing

GECU

Arvest Bank

Washington Federal

First Light FCU

The Bank & Trust

Capitol Bank

Inter National Bank

1st National Bank

Bank United

First Nat Bank Edinburg

Arthur State Bank

Lubbock National Bank

National Penn Bank

United Community Bank

Western National Bank

First Charter Bank

People Bank

First State Bank of Texas

Happy State Bank

Frontier National Bank

Union Bank & Trust

First United Bank

Robert Lee State Bank

Century Bank FSB

Sundown State Bank

Hereford State Bank

FNB of Fabens

A few Banks/CU’s that work with TSI

Presentation to XXXXXX 5

PROBLEM with Compliance Software /Internal Letters/Calls

Phase I: IN-HOUSE COLLECTION FOR 30-45 DaysDay 7

1st LetterAfter DailyOr Weekly

Report

Day 14

2nd Letter

Day 21

3rd Letter

Day 30

4th LetterClose Acct

Day 45

Account Sent To

ChexSystems

Phase II: PERCENTAGE AGENCY or ChexSystems %Average Rate of Recovery = 5% to 10% ● Average Fee = 40-50%

True Cost of Collections = 90 to 95% or more in lost fees

Presentation to XXXXXX 6

SOLUTION is Progressive 3 Phase Approach

Phase I: In House Phase II: Transworld Systems

Phase III: Verbal Demands and/or Legal Action

The TSI system has a DDA report used by banks to eliminate double work placing accounts in ChexSuystems!!!

25% to 60% Recovery Rate

TSI 5th and Final Contact

4th TSI Contact

3rd TSI Contact

2nd TSI Contact

Pre or Post Demand

Day 85Day 975Day 65Day 55Day 45

80% to 95% Collected

Letter 1Letter 2Letter 3

30-45 days closedChexSystems

Day 0-30-45

Optimize in-house procedures

1. Improved cash flow2. Reduced expenses3. Identify intent

1. Find money $$$2. 2 birds 1 stone3. Identify intent

Presentation to XXXXXX 7

Start Early -Recover More

Presentation to XXXXXX 8

24/7 “Real Time” Reporting

• Client controls all starts and stops• Ability to access, update, and manage accounts online• Real-time, web-based account reporting• 24/7 access to account information

Presentation to XXXXXX 9

Upload hundreds of accounts to ChexSystems using

e-funds

Kill 2 birds with one stone! After the OD’s are uploaded to Transworld Systems for collection, our OCP will create a report for you that can then be sent to ChexSystems using eFunds Online. Banks can send hundreds/thousands of accounts to TSI and ChexSystems in minutes.

Presentation to XXXXXX 10

Debtor Contact Map – Local Presence

Presentation to XXXXXX 11

Recovery Plus Overdraft Demands

To see a copy of the DDA Recovery Plus Demands contact your rep…

Presentation to XXXXXX 12

Why Do GreenFlag Demands Work vs. Internal Letters or Traditional Agencies?

• TSI address is from closest contact office to debtor, which is zip code activated. Local or Regional contact vs. a call from another state!

• TSI has no company name only PO Box on envelope which makes it hard to recognize. Gets opened! Most company statements or letters have company name on them.

• TSI demands change size every 10 days. Most internal statements or letters go out every 30 days in same envelope.

• TSI demands get through to 95% or more off all accounts on average vs. telephonic internal or external attempts. Study’s show that 70%+ of all consumers screen calls with caller id, call block, answering machines.

• TSI return payment envelope & tear off voucher 1st, 3rd, & 5th demands. The only thing we don’t do is lick the stamp for them! It’s like a utility bill that makes it a priority over a statement from a client.

• FDCPA Disclaimer on the bottom of the 1st demand for payment. All agencies in the US have to send out but they don’t have to tell you so they get a % for a letter!

• 3rd party impact!

Presentation to XXXXXX 13

Sample Status Report