Morgan Keegan Brokered CD Program. Morgan Keegan CDs (800)

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1 Morgan Keegan Brokered CD Program Morgan Keegan CDs (800)

2 QUOTES FROM THE FDIC SPRING OUTLOOK 2005 Brokered Deposits can be more cost effective than building new branches Use of non-core funds can enable a more precise structuring of liabilities

3 MORGAN KEEGAN CDS Brokered CDs is a business unit of Morgan Keegan Fixed Income Capital Markets providing liability management by specializing as a CD placement agent. Morgan Keegan has a well-known and respected reputation in servicing the needs of depository institutions with substantial capital to commit and a history of passing all BSA compliance exams nationwide.

4 MORGAN KEEGAN CDS Our philosophy is to determine the lowest all-in cost commensurate with your internal funding requirements. We can underwrite CD issues on a firm commitment basis to enable you to facilitate interest-rate swaps or lock-in a spread on a match funding basis. Our trading desk is well known for pinpointing funding costs and meeting funding objectives.

5 MORGAN KEEGAN CDS Our team has over 26 years experience in the FDIC- Insured brokered CD business. Because we are one of the oldest deposit placement groups, our national syndicate is one of the largest with more than 250 broker/dealers with a combined sales force of over 65,000 financial consultants located throughout the United States. Our staff has an average tenure of 12 years and a reputation for superior service. We offer financial institutions breadth and depth of distribution and a long history of experience fulfilling banks objectives. We have brokered CDs for over 450 banks.

6 SERVICE AND FLEXIBILITY Tailor the program according to suit liability needs maturity spectrum, amount, rate, geographic restrictions, issuance and settlement date Structure the CD to match assets and/or funding requirements offering fixed-rate CDs, fixed-rate CDs swapped to floating-rate funding, variable-rate or floatingrate CDs, or callable CDs Effective means of raising incremental funds without increasing the rates in your retail market Fine-tune liability management for optimal asset-liability matching and IRR management Additional source of liquidity when market conditions limit or curtail other capital markets transactions or when other sources of funds are more expensive Operational simplicity in partnership with the Depository Trust Company, we provide complete documentation and record-keeping services to minimize your operating expense and provide secure record keeping only one master certificate is required per CD offering Simple interest calculation method reduces costs of funds interest payments are calculated on a simple interest rate, actual over 365 day basis, and are payable at maturity for CDs of one year and less, and semi-annual for CDs greater than one year

7 BROAD DISTRIBUTION Morgan Keegan s broad distribution and placement capabilities a nationwide network of national and regional broker/dealers with a combined sales force of more than 65,000 financial consultants, as well as Morgan Keegan s exclusive in-house network Attract CDs in greater volume and longer maturities than may be available in your retail market Gain access to a nationwide deposit-taking system without the cost of brick and mortar Increase the recognition of your institution s name that can lower future funding costs and broaden investor deposit base

8 NON-CORE ALTERNATIVE TO FHLB FUNDING No collateral required No cap to program Flexible CD structures similar to FHLB Advance (fixed rate, floating rate, callable) Competitive rates to FHLB funding Diversifies funding sources

9 SERVICES BANKS RECEIVE Client Recordkeeping Statements, Confirms, 1099s, Interest & Maturity Crediting Marketing and Sales Collections and Distribution of all Money Flows (initial proceeds of CD, interest and maturity payments)

10 SETTLEMENT PROCESS (3-15 DAYS DETERMINED AT TIME OF OFFERING) 1) Inquiry from bank/discuss market conditions 2) Bank places order 3) Morgan Keegan markets the CD 4) Morgan Keegan closes out sales through broker/dealer distribution network, tallies total amount sold and settles with street broker 5) Bank executes Master Certificate and sends to DTC 6) Street settlement through DTC upon receipt of master certificate 7) Morgan Keegan wires fed funds to the bank

11 TRADING CONTACTS Ernie DiLorenzo, Head Trader Joseph Evans Sue Murphy Andrew Willey Morgan Keegan & Co., Inc. 535 Madison Avenue, 10 th Floor New York, New York (800) (212) (212) Fax

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