112/17/2012Confidential Information of Skyline Financial Corp.

The Difference is ClearSM

212/17/2012Confidential Information of Skyline Financial Corp.

Bill Dallas - 35 Years in Mortgage Industry

Founded First Franklin Sold to NationsBank in 1998 for $232 million Bank of America & NationsBank merge in October 1998 Purchased National Equity/NationPoint an Internet based retail lender Sold to National City Bank for $333M in 1999

Purchased Ownit in 2003 for $38 million Sold 20% to Merrill Lynch at $500 million pre-money in 2005 Merrill Lynch pulled credit lines in late 2006

Investor and Board member in several mortgage and banking technology companies

Sysdome/Interthinx – sold for 7x invested capital in 4 years MindBox – sold for 9x invested capital in 3 years

Skyline Home Loans Became CEO and a major shareholder in 2009.

312/17/2012Confidential Information of Skyline Financial Corp.

Mortgage Industry Turmoil Since 2006

Pre-meltdown - 55,000 mortgage brokers & 5,000 mortgage banks with 70% market share

Today - 10,000 mortgage brokers and 3,500 mortgage banks with 15% market share

The 75% reduction resulted from new rules, reduced warehouse financing, increased repurchase requests and higher compliance costs.

Four big banks now have 90% market share in a highly profitable, consumer-rich market segment

Talented mortgage veterans do not want to work for a bank

412/17/2012Confidential Information of Skyline Financial Corp.

Regulatory Changes Have Been Dramatic

Safe Act & NMLS

Home Valuation Code of Conduct

RESPA Reform and Enforcement

Mortgage Disclosure Improvement Act

Dodd-Frank Wall Street Reform & Consumer Protection Act

Regulation Z—Loan Originator Compensation

Creation of new Consumer Finance Protection Bureau

GSE reform and FHFA’s plan to deal with Fannie & Freddie

512/17/2012Confidential Information of Skyline Financial Corp.

Rare Opportunity in Mortgage Industry

Build an independent, well-capitalized mortgage bank

Take market share back from big banks

Use a consumer-focused eMortgage platform to ensure compliance and lower bricks & mortar and compensation costs

Use low-cost acquisitions to grow

Deliver mortgage production directly to agencies and by-pass bank aggregators

Go direct to consumers

612/17/2012Confidential Information of Skyline Financial Corp.

Skyline Today

Headquartered in Calabasas, CA

250 employees, including 100+ loan officers, 7 locations

Completed 5 acquisitions over the last 24 months

$1.1 billion in forecast 2011 loan production

$27 million in forecast 2011 revenue

10% profit margins and expanding with volume

712/17/2012Confidential Information of Skyline Financial Corp.

Loan Level Economics Are Very Attractive

Average loan size is $380K

Gross Revenue per loan - $9,684 (250 bps)

Gross profit per loan - $4,972 (128 bps)

Fixed expenses per loan - $4,331 (111 bps)

Operating Income per loan – $641 (16 bps)

Opportunity to improve Operating Income to 50 bps per loanBased on Q3 2011 financial performance

812/17/2012Confidential Information of Skyline Financial Corp.

Our Competitive Advantages

Institutional capital

Private “non-bank”

Innovative eMortgage Platform (“eMPSM”) that reduces cost-to-produce and opens other channels of production beyond retail

Next-generation CRM solution (“iPOSSM”) that allows loan officers to interact with clients online

Me&MyLoanSM direct-to-consumer portal

Back-end functionality to ensure compliance with new regulatory environment

Top team in the business

912/17/2012Confidential Information of Skyline Financial Corp.

Grow annual production from $1B to $10B annually

Increase EBITDA to $40-60 million

Expand into other origination channels including direct-to-consumer and “whole-tail”

Use eMP to gain efficiencies across multiple origination channels with a single, integrated platform

Our Five-year Plan

1012/17/2012Confidential Information of Skyline Financial Corp.

Strategic add-on acquisitions

New mortgage products

Add direct connections to Fannie Mae and Ginnie Mae

Drive consumer-direct volume via Me&MyLoanSM brand

Use iPOSSM to create broker network (“whole-tail”)

How We Get There

1112/17/2012Confidential Information of Skyline Financial Corp.

Our eMortgage Platform - eMP

Title

Escrow

eMP Integration Services

•User Auth

Event 100

•Pricing

Event 200•Loan App

Event 500

eMortgage Platform

Workflow

1) Me & My Loan / Affinity Branded Portals

2) Me & My Loan and /iPOS widgets for Realtor, Credit Unions and Bank Sites

3) iPOS for Loan Officers, Brokers and Call Center

Fraud Services

VOE/VOI/VOA

System of Record

AUS

Other Services

Authentication

Pricing Engine

AQUA Credit

AVM Appraisal

• iPOS

Event 200

LOS

1212/17/2012Confidential Information of Skyline Financial Corp.

Me & My LoanSM – Loan Selection

“My Top Picks” for best loan is just a click away! •Close-on-Time Guarantee

•Upfront savings and rewards

•A home loan experience that is fun, easier and hassle-free!

1312/17/2012Confidential Information of Skyline Financial Corp.

Me & My Loan℠ – Status Rewards

My Loan Center guides our customer through each step of the process

Unique solution that actually pays customer for processing online

Virtual LO is always available via online chat to help

1412/17/2012Confidential Information of Skyline Financial Corp.

Me & My Loan℠ – Clear Disclosures

• Applying online is easier

• Disclosures are faster • Appraisal is ordered …

… customer feels safe and in control!

1512/17/2012Confidential Information of Skyline Financial Corp.

iPOS℠ – For our Loan Officers

Our loan officers will have the latest in CRM technology with iPOS℠ Loan officers will work online with customers on the application

•The disclosure and appraisal process is simple•Loan officers will be able to market, price, lock and communicate 24/7•Our Borrower Loyalty program keeps them connected for life•Customer Satisfaction Measurement is captured

1612/17/2012Confidential Information of Skyline Financial Corp.

iPOS℠ - Tools to Drive ProductioniPOS℠ allows loan officers to price a loan, view valuations, compare loan options, set rate alerts and talk to the customer anytime, anywhere

1712/17/2012Confidential Information of Skyline Financial Corp.

eMP℠ – Our eVault

eVault safely stores all loan documents electronically

Eliminates hard copies

Keeps client connected

Streamlines their next loan and makes it truly easy!