This document provides a cost benefit analysis for a proposed project over 60 months. It estimates total revenue of $18.3 million and total costs of $11.2 million, resulting in a net benefit of $8.6 million and an internal rate of return of 29%. The largest sources of revenue are expected to be from consumer and business telelending. Cost savings come primarily from reduced call handling times.

1. COMPANY NAMECOST BENEFIT ANALYSIS - PROPOSED PROJECT
Total Total Total Total Total Total Reference
Cost / Benefit Category
Months 1-60 Months 1-12 Months 13-24 Months 25-36 Months 37-48 Months 49-60 Schedule
SUMMARY
Revenue $18,345,649 $0 $1,822,707 $3,322,864 $5,409,254 $7,790,824
Costs ($11,191,906) ($6,224,619) ($1,833,200) ($1,023,105) ($1,036,450) ($1,074,533)
Contingency Factor (15%) ($1,641,391) ($781,967) ($348,263) ($167,042) ($168,324) ($175,795)
Cost Savings $3,101,190 $0 $742,845 $763,926 $785,829 $808,589
NET PROJECT BENEFIT $8,613,542 ($7,006,586) $384,090 $2,896,643 $4,990,310 $7,349,085
IRR * 29% Additional Shareholder Value = NPV / # of shares outstanding
Discount Rate ** 2.25% Number of Shares Outstanding (from Annual Report): 75,000,000
NPV *** $7,365,233 Value Created per Share $0.10
REVENUE
Consumer TeleLending $9,955,257 $0 $343,845 $1,443,947 $3,095,537 $5,071,928 A
Residential TeleLending $580,402 $0 $128,978 $128,978 $161,223 $161,223 B
Business TeleBanking $3,500,640 $0 $350,064 $700,128 $1,050,192 $1,400,256 C
TeleSales $4,309,350 $0 $999,820 $1,049,811 $1,102,302 $1,157,417 D
Sub-Total $18,345,649 $0 $1,822,707 $3,322,864 $5,409,254 $7,790,824
* The project IRR is the discount rate at which the NPV of project costs (negative cash flows) equals the NPV of the project benefits (positive cash flows)
http://en.wikipedia.org/wiki/Internal_rate_of_return
** The Discount Rate is the interest rate charged to commercial banks and other depository institutions on loans from their regional Federal Reserve Bank's
lending facility - also known as the Discount Window. Federal Reserve Banks offer three Discount Window programs to depository institutions: 1) Primary Credit,
2) Secondary Credit, and 3) Seasonal Credit.
http://www.federalreserve.gov/monetarypolicy/discountrate.htm
*** The Net Present Value (NPV) method of evaluating projects considers the time value of money. NPV indicates the present value (in today's dollars) of the
projected net cash flow of a project. The present value is evaluated against the amount needed to implement the project. If the NPV is greater than
implementation cost, the project will be profitable.
Page 1

2. COMPANY NAMECOST BENEFIT ANALYSIS - PROPOSED PROJECT
Total Total Total Total Total Total Reference
Cost / Benefit Category
Months 1-60 Months 1-12 Months 13-24 Months 25-36 Months 37-48 Months 49-60 Schedule
COSTS
Capital
Consulting ($1,969,000) ($1,969,000) $0 $0 $0 $0 E
Furniture and Fixtures ($17,600) ($17,600) $0 $0 $0 $0 F
Operating Software ($784,980) ($784,980) $0 $0 $0 $0 G
Systems Hardware ($1,001,956) ($1,001,956) $0 $0 $0 $0 H
Telecom Hardware ($153,323) ($153,323) $0 $0 $0 $0 I
Vendor Impl. Assistance ($1,100,000) ($825,000) ($275,000) $0 $0 $0 J
Sub-Total ($5,026,859) ($4,751,859) ($275,000) $0 $0 $0
One-Time Expense
Application Software $0 $0 $0 $0 $0 $0 --
Computer Relocation $0 $0 $0 $0 $0 $0 --
Employee Relocation $0 $0 $0 $0 $0 $0 --
Furniture Relocation $0 $0 $0 $0 $0 $0 --
Furniture and Fixtures $0 $0 $0 $0 $0 $0 --
Internal Project Staff ($167,500) ($167,500) $0 $0 $0 $0 K
Retention Bonus $0 $0 $0 $0 $0 $0 --
Severance $0 $0 $0 $0 $0 $0 --
Telecom Relocation $0 $0 $0 $0 $0 $0 --
Telecommunications $0 $0 $0 $0 $0 $0 --
Travel - Internal Staff $0 $0 $0 $0 $0 $0 --
Sub-Total ($167,500) ($167,500) $0 $0 $0 $0
Total Total Total Total Total Total Reference
Cost / Benefit Category
Months 1-60 Months 1-12 Months 13-24 Months 25-36 Months 37-48 Months 49-60 Schedule
COSTS
On-Going Expense
Equipment $0 $0 $0 $0 $0 $0 --
IT - Development ($2,880,000) ($1,252,800) ($835,200) ($264,000) ($264,000) ($264,000) L
IT - Production Support $0 $0 $0 $0 $0 $0 --
Mainframe - CPU $0 $0 $0 $0 $0 $0 --
Maintenance - Hardware $0 $0 $0 $0 $0 $0 --
Maintenance - Software ($468,000) $0 ($117,000) ($117,000) ($117,000) ($117,000) M
Occupancy $0 $0 $0 $0 $0 $0 --
Salaries ($2,573,357) $0 ($606,000) ($630,240) ($655,450) ($681,668) N
Page 2

3. COMPANY NAMECOST BENEFIT ANALYSIS - PROPOSED PROJECT
Telecommunications $0 $0 $0 $0 $0 $0 --
Training ($76,190) ($52,460) $0 ($11,865) $0 ($11,865) O
Sub-Total ($5,997,547) ($1,305,260) ($1,558,200) ($1,023,105) ($1,036,450) ($1,074,533)
Total Project Costs ($11,191,906) ($6,224,619) ($1,833,200) ($1,023,105) ($1,036,450) ($1,074,533)
COST SAVINGS
Cost Savings or Avoidance
Call Handling Time
Reduction $2,344,649 $0 $553,710 $574,791 $596,694 $619,454 P
Call Migration $0 $0 $0 $0 $0 $0 --
Employee Retention
Improvement $330,070 $0 $82,518 $82,518 $82,518 $82,518 Q
Facility Closure $0 $0 $0 $0 $0 $0 --
Training Reduction $426,470 $0 $106,618 $106,618 $106,618 $106,618 R
Sub-Total $3,101,190 $0 $742,845 $763,926 $785,829 $808,589
Page 3

4. COMPANY NAMECOST BENEFIT ANALYSIS - PROJECT ASSUMPTIONS
ASSUMPTIONS
No. Description Explanation / Details
1. Vendor Selection For the purposes of this Cost Benefit Analysis, Vendor X was selected.
2. Project Timing This analysis assesses five years of costs and benefits. The costs and benefits have not been allocated to calendar
years (January to December) to coincide with the budget process. This analysis assumes that the new platform will be
installed in approximately 9 to 12 months, therefore, incremental revenue and cost savings are assumed to begin in
Months 13 - 24.
3. Space Restrictions This analysis assumes that the current TeleBanking operation will remain in Irvine and Las Vegas and that the
approximately 20 seats in Las Vegas cannot be filled due to the 200% turnover rate, thereby restricting any further
growth in the operation. In addition, space reconfiguration plans for both Irvine and Las Vegas were not included in
this analysis.
4. FTE Due to the current space restrictions, there will be no net new additions to staff; however, the new platform will
reduce the average call handle time by approximately 30 seconds per call, resulting in an excess capacity of 15 FTE
(10 FTE during the day shift - 8:00 a.m. to 5:00 p.m.). This savings was calculated using a staffing model that
incorporates Erlang C. The 10 FTE would be converted from TeleBanking Agents to TeleLending representatives in
Months 13 through 24.
5. Contingency This analysis assumes a contingency factor of 15% of total costs to account for unanticipated time delays and project
overruns.
FTE ASSUMPTIONS
Description Year 1 Year 2 Year 3 Year 4 Year 5
Current Environment
Location 1 - TeleServicing 0 189 174 174 174
Location 2 - TeleServicing 0 82 82 82 82
Business TeleBanking 0 18 18 18 18
TeleSales 0 9 9 9 9
TeleLending 0 10 20 20 20
EBC 0 17 17 17 17
PFS Support 0 14 14 14 14
Executive Hotline 0 11 11 11 11
Cash Management 0 12 12 12 12
TOTAL 0 362 357 357 357
Page 4

5. COMPANY NAMECOST BENEFIT ANALYSIS - PROPOSED PROJECTSchedule A
Total Total Total Total Total Total
Description
Months 1-60 Months 1-12 Months 13-24 Months 25-36 Months 37-48 Months 49-60
Revenue - Consumer TeleLending $9,955,257 $0 $343,845 $1,443,947 $3,095,537 $5,071,928
Consumer Lending
TOTAL $9,955,257 $0 $343,845 $1,443,947 $3,095,537 $5,071,928
DESCRIPTION EXPLANATION
Consumer TeleLending
Revenue
1. TeleLending will remain in the TeleBanking Center. The new Contact FTE 72 99 99 99
Center platform will reduce average call handle time by approximately Incremental Staff 9 9 9 9
30 seconds per call, resulting in a total excess capacity of 15 FTE (see Total Staff 81 108 108 108
Schedule AN), with an excess capacity of 10 FTE during regular
Production / month / rep $283,000 $458,000 $539,000 $631,000
working hours between 8:00 a.m. and 5:00 p.m. PST.
Net Volume $22,923,000 $49,464,000 $58,212,000 $68,148,000
2. The 10 TeleBanking Agents will be replaced with 9 TeleLenders and 1
TeleLending manager. This analysis also assumes no additional
increase in staff beyond the initial 10 FTE due to space restrictions
within the current facility. Revenue and expense data is based on the
CBA prepared for the TeleLending Expansion Project.
3. No additional increase in staff beyond the initial 10 FTE due to space
restrictions within the current facility. Revenue and expense data is
based on the CBA prepared for the TeleLending Expansion Project.
4. This analysis only incorporates the revenue generated by the new staff
and does not include any revenue generated by the current TeleLending
staff.
5. Increasing the net lines funded per month per staff from $283,000 to
$631,000 and increasing the margin from 3% to 3.08% during the next
4 years. The Net Volume in Months 13-24 is based on 9 months of
production to account for new staff training and new platform
implementation. See Schedules H and AB for TeleLending FF&E and
salary costs.
6. Since new TeleLenders replace existing TeleBanking Agents, there are
no incremental telecommunication or occupancy costs.
7. Costs for other projects or additional VRU/ACD equipment are
excluded from this analysis.
8. Fee income that may be derived from additional lines of credit are
excluded from this analysis.
Page 5

6. COMPANY NAMECOST BENEFIT ANALYSIS - PROPOSED PROJECTSchedule B
Total Total Total Total Total Total
Description
Months 1-60 Months 1-12 Months 13-24 Months 25-36 Months 37-48 Months 49-60
Revenue - Residential TeleLending
Residential Lending $580,402 $0 $128,978 $128,978 $161,223 $161,223
TOTAL $580,402 $0 $128,978 $128,978 $161,223 $161,223
DESCRIPTION EXPLANATION
Residential TeleLending
FTE 3 3 3 3
1. TeleBanking Agents have not received cross-selling training. Incremental Fundings/FTE 20 20 25 25
2. Minimal marketing effort for TeleLending
3. There is an increase in the incremental fundings per FTE of 20 in No. of Fundings 60 60 75 75
4. Months 13-36 and of 25 in Months 37-60 due to increased efficiency Avg. Loan Size $143,309 $143,309 $143,309 $143,309
5. and cross-selling capabilities resulting from the new platform.
Total Fundings (No.xAvg. Loan) $8,598,553 $8,598,553 $10,748,191 $10,748,191
6. There is no net new staffing increase due to current facility space
constraints. Margin 1.50% 1.50% 1.50% 1.50%
7. Margin percentages provided by the Finance Department, Profitability
Group. Revenue (Mgrn.xTtl Fund) $128,978 $128,978 $161,223 $161,223
Page 6

7. COMPANY NAMECOST BENEFIT ANALYSIS - PROPOSED PROJECTSchedule C
Total Total Total Total Total Total
Description
Months 1-60 Months 1-12 Months 13-24 Months 25-36 Months 37-48 Months 49-60
Revenue - Business Banking
Business TeleBanking Revenue $3,500,640 $0 $350,064 $700,128 $1,050,192 $1,400,256
TOTAL $3,500,640 $0 $350,064 $700,128 $1,050,192 $1,400,256
DESCRIPTION EXPLANATION
Business TeleBanking Revenue
1. Business TeleBanking FTE remains constant Limited space available. Role of current staff changes from support to revenue production resulting
2. There will be an incremental increase in Business TeleBanking from increased operating efficiency from the new platform system, which creates additional capacity.
FTE of 2 per year starting in Months 13-24 In addition, the Financial Service Centers (bank branches) will follow a learning curve relative to
3. Support staff will be decreased by 2 FTE per year starting in business banking products and the FSC will be less reliant on the TeleBanking Support group.
Months 13-24
Page 7

8. COMPANY NAMECOST BENEFIT ANALYSIS - PROPOSED PROJECTSchedule D1
Total Total Total Total Total Total
Description
Months 1-60 Months 1-12 Months 13-24 Months 25-36 Months 37-48 Months 49-60
Revenue - TeleSales
Checking $89,497 $0 $20,764 $21,803 $22,893 $24,037
Savings $90,124 $0 $20,910 $21,955 $23,053 $24,206
Term Accounts $4,129,730 $0 $958,146 $1,006,053 $1,056,356 $1,109,174
TOTAL $4,309,350 $0 $999,820 $1,049,811 $1,102,302 $1,157,417
Page 8

9. COMPANY NAMECOST BENEFIT ANALYSIS - PROPOSED PROJECTSchedule D1
Total Total Total Total
Description
Months 13-24 Months 25-36 Months 37-48 Months 49-60
DESCRIPTION EXPLANATION
Revenue - TeleSales Incremental Checking Accts (+5%/yr) 404 425 446 468
Average Balance as of (date) $3,515 $3,515 $3,515 $3,515
1. TBAs are not currently trained to cross-sell customers Contribution Rate 1.46% 1.46% 1.46% 1.46%
2. Customers are transferred to TeleSales only if they request Revenue - Checking $20,764 $21,803 $22,893 $24,037
to be transferred. This accounts for the high penetration rate Incremental Savings Accts (+5%/yr) 145 152 160 168
for TeleSales Representatives Average Balance as of (date) $9,850 $9,850 $9,850 $9,850
3. There is a 30% increase in referrals from TeleBanking Contribution Rate 1.46% 1.46% 1.46% 1.46%
Agents to TeleSales Revenue - Savings $20,910 $21,955 $23,053 $24,206
4. There is a 40% decrease in the conversion rate since the Incremental Term Accts (+5%/yr) 7,234 7,595 7,975 8,374
customer no longer initiates the sales conversation Average Balance as of (date) $26,493 $26,493 $26,493 $26,493
5. There is a 5% annual increase in account production Contribution Rate 0.50% 0.50% 0.50% 0.50%
volume (all types), beginning in Months 25-36 Revenue - Term Accounts $958,146 $1,006,053 $1,056,356 $1,109,174
6. Contribution Rate data is from the Finance Department Supporting Calculations
Current % Change Incremental
TBA Weekday Calls 2,824,552
Referrals - 30% incr. from TBAs to TeleSales
Checking 4,348 30% 1304
Savings 3,080 30% 924
Term Accts 49,720 30% 14,916
Total 57,148 17,144
Referral Rate 2.02%
Conversion Rate - (40%) decrease since customer does not initiate sales converation
No. Converted % Converted % Change Incremental % Total
Checking 3,080 71% -40% 31% 404
Savings 1,716 56% -40% 16% 145
Term Accts 44,000 88% -40% 48% 7,234
Total 48,796 85% -40% 45% 7,783
Incremental Incremental % Total
Checking 1,304 31% 404
Savings 924 16% 145
Term Accts 14,916 48% 7,234
Total 17,144 45% 7,783
Page 9

10. COMPANY NAMECOST BENEFIT ANALYSIS - PROPOSED PROJECTSchedule E
Total Total Total Total Total Total
Description
Months 1-60 Months 1-12 Months 13-24 Months 25-36 Months 37-48 Months 49-60
Capital Expenditures
Consulting - 1 Engagement Manager; Months 1 to 12 ($90,000) ($90,000) $0 $0 $0 $0
Consulting - 1 Project Manager; Months 1 to 12 ($500,000) ($500,000) $0 $0 $0 $0
Consulting - 3 Implementation Consultants; Months 1 to 12 ($1,200,000) ($1,200,000) $0 $0 $0 $0
Engagement Manager Travel ($9,000) ($9,000) $0 $0 $0 $0
Project Manager Travel ($50,000) ($50,000) $0 $0 $0 $0
Implementation Consultants Travel ($120,000) ($120,000) $0 $0 $0 $0
TOTAL ($1,969,000) ($1,969,000) $0 $0 $0 $0
DESCRIPTION EXPLANATION
Consulting
1. Engagement Manager - project oversight; Months 1 to 12 Consulting Quantity No. of Hours Hourly Rate Total
2. Project Manager - project oversight; Months 1 to 12 Engagement Manager (15%) 1 300 ($300) ($90,000)
3. Implementation Consultants - proj. impl.; Months 1 to 12 Project Manager (100%) 1 2,000 ($250) ($500,000)
4. Consultant Travel = 10% of consulting fees Implementation Consultants (100%) 3 2,000 ($200) ($1,200,000)
Sub-Total ($1,790,000)
Travel Total
Consultant Travel (10% of Consulting Fees)
Engagement Manager ($9,000)
Project Manager ($50,000)
Implementation Consultants ($120,000)
Sub-Total ($179,000)
Total ($1,969,000)
Page 10

11. COMPANY NAMECOST BENEFIT ANALYSIS - PROPOSED PROJECTSchedule F
Total Total Total Total Total Total
Description
Months 1-60 Months 1-12 Months 13-24 Months 25-36 Months 37-48 Months 49-60
Capital Expenditures
Furniture and Fixtures ($17,600) ($17,600) $0 $0 $0 $0
TOTAL ($17,600) ($17,600) $0 $0 $0 $0
DESCRIPTION EXPLANATION
Furniture and Fixtures
1. Furniture and Fixtures are needed for 10 people Furniture for 9 TeleLending Reps and 1 Supervisor to replace TeleBanking Agents.
Quantity Cost Each Total
Desks 10 ($800) ($8,000)
Chairs 10 ($600) ($6,000)
File Cabinets 3 ($1,200) ($3,600)
Total ($2,600) ($17,600)
Page 11

12. COMPANY NAMECOST BENEFIT ANALYSIS - PROPOSED PROJECTSchedule G
Total Total Total Total Total Total
Description
Months 1-60 Months 1-12 Months 13-24 Months 25-36 Months 37-48 Months 49-60
Capital Expenditures
Operating Software ($784,980) ($784,980) $0 $0 $0 $0
TOTAL ($784,980) ($784,980) $0 $0 $0 $0
DESCRIPTION EXPLANATION
Operating Software
1. Operating Software $3,115 per concurrent user. There are 252 concurrent users between both locations.
Quantity Cost Each Cost
Concurrent Users 252 ($3,115) ($784,980)
Total ($784,980)
Page 12

13. COMPANY NAMECOST BENEFIT ANALYSIS - PROPOSED PROJECTSchedule H
Total Total Total Total Total Total
Description
Months 1-60 Months 1-12 Months 13-24 Months 25-36 Months 37-48 Months 49-60
Capital Expenditures
Systems Hardware ($1,001,956) ($1,001,956) $0 $0 $0 $0
TOTAL ($1,001,956) ($1,001,956) $0 $0 $0 $0
DESCRIPTION EXPLANATION
Systems Hardware
Quantity Cost Each Total
1. Computing Hardware - Workstations All workstations will be replaced due to age 256 ($3,104) ($794,624)
2. Computing Hardware - Application Server New server needed to support the application 1 ($207,332) ($207,332)
Total ($1,001,956)
Supporting Calculations
Location 1
Consumer TeleLending 61
Residential TeleLending 40
Business Banking 26
TeleSales 10
Training 17
Sub-Total Location 1 154
Location 2
Consumer TeleLending 21
Residential TeleLending 26
Business Banking 30
TeleSales 16
Training 9
Sub-Total Location 2 102
Grand Total 256
Page 13

14. COMPANY NAMECOST BENEFIT ANALYSIS - PROPOSED PROJECTSchedule I
Total Total Total Total Total Total
Description
Months 1-60 Months 1-12 Months 13-24 Months 25-36 Months 37-48 Months 49-60
Capital Expenditures
Telecommunication Hardware ($153,323) ($153,323) $0 $0 $0 $0
TOTAL ($153,323) ($153,323) $0 $0 $0 $0
DESCRIPTION EXPLANATION
Telecommunication Hardware
1. Communication Hardware Communication hardware required for communication with host and telephony equipment
Three connections are required:
Quantity Cost
Switch 1 ($54,563)
Host 1 ($53,404)
VRU 1 ($45,356)
Total ($153,323)
Page 14

15. COMPANY NAMECOST BENEFIT ANALYSIS - PROPOSED PROJECTSchedule J
Total Total Total Total Total Total
Description
Months 1-60 Months 1-12 Months 13-24 Months 25-36 Months 37-48 Months 49-60
Capital Expenditures
Vendor Implementation Assistance
Consulting - 2 Implementation Consultants; Months 1 to 12 ($500,000) ($500,000) $0 $0 $0 $0
Consulting - 1 Implementation Consultant; Months 1 to 24 ($500,000) ($250,000) ($250,000) $0 $0 $0
Sub-Total Vendor Implementation Assistance - Consulting ($1,000,000) ($750,000) ($250,000) $0 $0 $0
Vendor Implementation Travel ($100,000) ($75,000) ($25,000) $0 $0 $0
TOTAL ($1,100,000) ($825,000) ($275,000) $0 $0 $0
DESCRIPTION EXPLANATION
Vendor Implementation Assistance
1. 2 Vendor Implementation Consultants - impl.; Months 1 to 12 Consulting Quantity No. of Hours Hourly Rate Total
2. 1 Vendor Implementation Consultant - impl.; Months 1 to 24 Implementation Consultants (100%) 2 2,000 ($125) ($500,000)
3. Vendor Implementation Consultant Travel = 10% of fees Implementation Consultants (100%) 1 4,000 ($125) ($500,000)
Sub-Total ($1,000,000)
Travel Total
Consultant Travel (10% of Consulting Fees)
Vendor Implementation Consultant Travel ($100,000)
Sub-Total ($100,000)
Total ($1,100,000)
Page 15

16. COMPANY NAMECOST BENEFIT ANALYSIS - PROPOSED PROJECTSchedule K
Total Total Total Total Total Total
Description
Months 1-60 Months 1-12 Months 13-24 Months 25-36 Months 37-48 Months 49-60
One-Time Expense - Internal Project Staff
VP - Operations and Technology (75,000) (75,000) 0 0 0 0
AVP - Operations (65,000) (65,000) 0 0 0 0
Team Manager (27,500) (27,500) 0 0 0 0
TOTAL (167,500) (167,500) 0 0 0 0
DESCRIPTION EXPLANATION
1. VP - Operations and Technology Assumes 50% utilization with estimated annual compensation incl. benefits of $150,000
2. AVP - Operations Assumes 50% utilization with estimated annual compensation incl. benefits of $130,000
3. Team Manager Assumes 25% utilization with estimated annual compensation incl. benefits of $110,000
Page 16

17. COMPANY NAMECOST BENEFIT ANALYSIS - PROPOSED PROJECTSchedule L
Total Total Total Total Total Total
Description
Months 1-60 Months 1-12 Months 13-24 Months 25-36 Months 37-48 Months 49-60
On-Going Expense - IT Development
Months 1-12, Interface Development (1,252,800) (1,252,800) 0 0 0 0
Months 13-24, Application Enhancement (835,200) 0 (835,200) 0 0 0
Months 25-60, Application Support (792,000) 0 0 (264,000) (264,000) (264,000)
TOTAL (2,880,000) (1,252,800) (835,200) (264,000) (264,000) (264,000)
DESCRIPTION EXPLANATION
1. Months 1-12, Interface Development 1. IT Project Manager and 8 IT Staff at $11,600 per month. Incl dev and implementation costs
2. Months 13-24, Application Enhancement 2. IT Project Manager and 5 IT Staff at $11,600 per mo. Incl app enhancements/startup support
3. Months 25-60, Application Support 3. Two IT Staff at $11,600 per month
Page 17

18. COMPANY NAMECOST BENEFIT ANALYSIS - PROPOSED PROJECTSchedule M
Total Total Total Total Total Total
Description
Months 1-60 Months 1-12 Months 13-24 Months 25-36 Months 37-48 Months 49-60
On-Going Expense - Software Maintenance
Annual Software Maintenance (468,000) 0 (117,000) (117,000) (117,000) (117,000)
TOTAL (468,000) 0 (117,000) (117,000) (117,000) (117,000)
DESCRIPTION EXPLANATION
1. Annual Software Maintenance 1. Annual software maintenance (licensing) is 15% of the software acquisition cost.
Expenditure begins in Months 13-24
Page 18

19. COMPANY NAMECOST BENEFIT ANALYSIS - PROPOSED PROJECTSchedule A
Total Total Total Total Total Total
Description
Months 1-60 Months 1-12 Months 13-24 Months 25-36 Months 37-48 Months 49-60
On-Going Expense - Salaries ($2,573,357) $0 ($606,000) ($630,240) ($655,450) ($681,668)
TeleLending Salaries
TOTAL ($2,573,357) $0 ($606,000) ($630,240) ($655,450) ($681,668)
DESCRIPTION EXPLANATION
Consumer TeleLending
1. TeleLending will remain in the TeleBanking Center. The new Contact TeleLending 9 9 9 9
Center platform will reduce average call handle time by approximately Comp. per Rep. (4% ann. incr.) -$50,400 -$52,416 -$54,513 -$56,693
30 seconds per call, resulting in a total excess capacity of 15 FTE, with
Manager 1 1 1 1
an excess capacity of 10 FTE during regular working hours between
Comp. per Mgr. (4% ann. incr.) -$68,400 -$71,136 -$73,981 -$76,941
8:00 a.m. and 5:00 p.m. PST.
CLPC Staff 2 2 2 2
2. The 10 TeleBanking Agents will be replaced with 9 TeleLenders and 1 Comp./CLPC (4% ann. incr.) -$31,200 -$32,448 -$33,746 -$35,096
TeleLending manager. This analysis also assumes no additional CLPC Manager 0.5 0.5 0.5 0.5
increase in staff beyond the initial 10 FTE due to space restrictions Comp./CLPC Manager -$43,200 -$44,928 -$46,725 -$48,594
within the existing facility.
Total -$606,000 -$630,240 -$655,450 -$681,668
3. No additional increase in staff beyond the initial 10 FTE due to space
restrictions within the current facility. Revenue and expense data is
based on the CBA prepared for the TeleLending Expansion Project.
4.
Salary data and management ratio based on TeleLending Expansion
CBA. An increase in CLPC Support Staff is included to support
additional TeleLending staff, but they will not be located in the
TeleBanking area. Therefore, the total available seats are not impacted.
5. Since new TeleLenders replace existing TeleBanking Agents, there are
no incremental telecommunication or occupancy costs.
Page 19

20. COMPANY NAMECOST BENEFIT ANALYSIS - PROPOSED PROJECTSchedule O
Total Total Total Total Total Total
Description
Months 1-60 Months 1-12 Months 13-24 Months 25-36 Months 37-48 Months 49-60
On-Going Expense - Staff Training
Train the Trainer (5,000) (5,000) 0 0 0 0
Staff Training (47,460) (47,460) 0 0 0 0
New Release Training (23,730) 0 0 (11,865) 0 (11,865)
TOTAL (76,190) (52,460) 0 (11,865) 0 (11,865)
DESCRIPTION EXPLANATION
1. Train the Trainer 1. One company trainer is trained by the vendor for 5 days at $1,000 daily
2. Staff Training 2. 210 TBAs to be trained for 2 days. Avg TBA daily wages are $113
3. New Release Training 3. 210 TBAs to be trained for 4 hours each in Years 3 and 5. Avg hourly rate $14.125
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21. COMPANY NAMECOST BENEFIT ANALYSIS - PROPOSED PROJECTSchedule P
Total Total Total Total Total Total
Description
Months 1-60 Months 1-12 Months 13-24 Months 25-36 Months 37-48 Months 49-60
Cost Savings - Reduced Call Handle Time
Reduced average handle time (30 secs per call) $1,855,945 $0 $440,325 $455,736 $471,687 $488,196
Reduced telecommunications costs (800 number) $488,704 $0 $113,385 $119,054 $125,007 $131,257
TOTAL $2,344,649 $0 $553,710 $574,791 $596,694 $619,454
DESCRIPTION EXPLANATION
1. Reduce Average Handle Time by 30 Seconds Reduction in avg. handle time of 30 seconds per call (200 vs. 170 secs.). Identified avg. number of calls
received during 30-minute increments. Determined staff needs using Erlang C model. Average savings 15
FTE.
Salary data below assumes a 3.5% merit increase through Months 49-60. 10 of 15 TBA FTE will be
converted into TeleLending representatives
2. Reduce Telecommunications Costs Reduction in avg. handle time of 30 seconds per call reduces toll-free (800) charges. There are 3,435,914
representative-assisted calls annually. Call volume is expected to increase by 5% annually in Months 25-60.
800 number charge is 6.6 cents per minute.
Supporting Calculations
Total Total Total Total
Months 13-24 Months 25-36 Months 37-48 Months 49-60
1. Average Salary $29,355 $30,382 $31,446 $32,546
FTE 15 15 15 15
Salary Savings $440,325 $455,736 $471,687 $488,196
2. Annual TBA assisted calls 3,435,914 3,607,710 3,788,095 3,977,500
Savings per Call (30 seconds at 6.6 cents per min.) $113,385 $119,054 $125,007 $131,257
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22. COMPANY NAMECOST BENEFIT ANALYSIS - PROPOSED PROJECTSchedule Q
Total Total Total Total Total Total
Description
Months 1-60 Months 1-12 Months 13-24 Months 25-36 Months 37-48 Months 49-60
Cost Savings - Improved Staff Retention
Increase staff retention by 10% $330,070 $0 $82,518 $82,518 $82,518 $82,518
TOTAL $330,070 $0 $82,518 $82,518 $82,518 $82,518
DESCRIPTION EXPLANATION
1. Increase staff retention by 10% Reduction in turnover is based on Contact Center management estimation. Savings due to reduced new hire
training costs, lower recruiting costs, and increased productivity. Training cost information provided by the
Training Department.
Total Total Total Total
Supporting Calculations
Months 13-24 Months 25-36 Months 37-48 Months 49-60
Total TBAs - Location 1 135 135 135 135
Turnover 26% 26% 26% 26%
New Hires - Location 1 35 35 35 35
Total TBAs - Location 2 75 75 75 75
Turnover 200% 200% 200% 200%
New Hires - Location 2 150 150 150 150
Total New Hires (Location 1 and 2) 185 185 185 185
10% reduction in turnover 19 19 19 19
Training Cost per Student (3 weeks x $8.00/hour + $386 training cost) $1,346 $1,346 $1,346 $1,346
Savings - Sub-Total $24,914 $24,914 $24,914 $24,914
Recruiting Costs $1,000 $1,000 $1,000 $1,000
Savings - Sub-Total $18,510 $18,510 $18,510 $18,510
New Hire Productivity (50% less for 3 months) $2,112 $2,112 $2,112 $2,112
Savings - Sub-Total $39,093 $39,093 $39,093 $39,093
Total $82,518 $82,518 $82,518 $82,518
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23. COMPANY NAMECOST BENEFIT ANALYSIS - PROPOSED PROJECTSchedule R
Total Total Total Total Total Total
Description
Months 1-60 Months 1-12 Months 13-24 Months 25-36 Months 37-48 Months 49-60
Cost Savings - Reduction in New Hire Training
Train on one system, rather than six $426,470 $0 $106,618 $106,618 $106,618 $106,618
TOTAL $426,470 $0 $106,618 $106,618 $106,618 $106,618
DESCRIPTION EXPLANATION
1. Reduce New Hire Training New hires will need to be trained on one system (new platform), rather than on six systems. Training time
decreases from three weeks to one week. Training cost savings based on new hire hourly rate of $8.00.
Total Total Total Total
Supporting Calculations
Months 13-24 Months 25-36 Months 37-48 Months 49-60
Total TBAs - Location 1 135 135 135 135
Turnover 26% 26% 26% 26%
New Hires - Location 1 35 35 35 35
Total TBAs - Location 2 75 75 75 75
Turnover 200% 200% 200% 200%
New Hires - Location 2 150 150 150 150
Total New Hires (Location 1 and 2) 185 185 185 185
10% reduction in turnover 19 19 19 19
Total New Hires (after new platform implementation) 167 167 167 167
Reduction in Training Cost per student (2 weeks x 8 hours x $8.00 per hour) $640 $640 $640 $640
Savings $106,618 $106,618 $106,618 $106,618
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