Investing in Solutions. Member NASD/SIPC

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1 I N V E S T I N G I N S O L U T I O N S Investing in Solutions Member NASD/SIPC 100 Motor Parkway, 2nd Floor, Hauppauge, NY Tel: Toll Free: Toll Free Branches: Fax: W W W. 1 E M P I R E. C O M

2 First Empire Securities First Empire is a multi-dimensional solutions provider. We are positioned to meet all of your investment needs. We listen and take the time to learn and understand your needs. We believe in investing in long-term relationships and becoming a trusted partner that you can count on for assistance when you need it. With the vast amount of resources from our affiliated companies and our in-depth expertise of the industry, we are able to provide a wide range of products and services to our clients. That s why, at First Empire, we are continually investing in solutions. Member NASD/SIPC 100 Motor Parkway, 2nd Floor, Hauppauge, NY Tel: Toll Free: Toll Free Branches: Fax: Website:

3 Investing in Solutions Your strategic partner with long-term, established relationships based on trust. We provide customized investment solutions that produce results. We take the time to understand your needs and guide your institution towards meeting your long-term growth objectives. First Empire began selling Certificates of Deposit (CDs) to financial institutions over two decades ago. Our firm has since evolved into more than just a full service broker-dealer. We have become a strategic partner, providing our clients with customized solutions to meet their long-term growth objectives. Financial Strategy Group In today s competitive financial markets no one can afford to be one-dimensional. That s why for years, we have been investing in resources that will allow our clients to grow and serve their customer base. Our Financial Strategy Group is a think-tank of industry professionals who have access to a nationwide network of resources to provide you with solutions. We begin with a conference call with our team of experts to identify areas of opportunity and risk, and evaluate your individual institution s needs. All it takes is 20 minutes to get started on a call with our team of experts. We have helped so many institutions with a proven process that works. The Financial Strategy Group will evaluate the direction of your growth objectives, potential challenges and how we can utilize our expertise to make your goals a reality. The key to your growth is meeting the needs and expectations of your customers... It's the same with our business. Our solutions are customized to meet your goals and objectives. The Financial Strategy Group will tap into the tremendous resources of our affiliated companies, such as Balance Sheet Management Services*, LPC Services* and First Empire CD Management*, to help you in the following areas: Risk Control with our Asset Liability Management program Loan Portfolio through our Conduit and Loan Participation Programs Liquidity with Deposit and Funding strategies And yes, even Regulatory Support *Balance Sheet Management Services, Inc., LPC Services, Inc. and First Empire CD Management, Inc. are not members of the NASD or SIPC. First Empire Securities, Inc. is solely a member of the NASD and SIPC. Fixed Income Securities Brokerage First Empire s fixed income brokerage maintains established relationships with almost every primary and regional dealer throughout the country. They provide us with constant access to their inventories. This allows us to first look at your needs and then search for a product that fits. Our Trading Desk includes individuals with decades of experience, specializing in fixed income investment products. We offer a full range of fixed income securities, including Treasuries, Agencies, Mortgage Backed Securities, Municipal and Corporate Bonds, and negotiable CDs. Investment Portfolio Analytics First Empire Securities provides comprehensive balance sheet management services, including: asset/liability management analysis, investment portfolio analysis and accounting support (FinSer)**. These services focus on loan demand, interest rate risk, and other changing market conditions that affect the future value of your investments. In the long term, these services allow you to provide better opportunities for your customers. Regulatory Guidance Charles Felker, our Managing Director of Regulatory Affairs, has over thirty years experience working with regulations that govern financial institutions. Mr. Felker regularly speaks on the subject of Fixed Income Securities at the Federal Reserve Management School and has done so for nearly ten years. Mr. Felker provides regulatory consultation, examination support, policy reviews, board presentations, regulatory updates, educational seminars, and other consulting/compliance related services. Investment Product and Market Education First Empire also provides investment product and market education. We provide your investment officer with information on each investment vehicle available, the inherent risks and rewards of each, and the effect the investment will have on your institution s strategic plan and balance sheet. **FinSer is neither an affiliate nor a subsidiary of First Empire Securities, Inc. Any services provided under portfolio accounting are the sole responsibility of FinSer. The information contained in this document has been obtained from sources we believe to be reliable. However, we do not guarantee it is accurate or complete. This information is subject to change without notice. This document is not and should not be construed as an offer to buy or sell any security or securities.

4 Our Affiliates Balance Sheet Management Services LPC Services First Empire CD Management Balance Sheet Management Services, Inc., LPC Services, Inc. and First Empire CD Management, Inc. are not members of the NASD or SIPC. First Empire Securities, Inc. is solely a member of the NASD and SIPC.

5 Balance Sheet Management Services Balance Sheet Management Services provides comprehensive analytics and consulting services to meet the growing balance sheet management and regulatory needs of institutions nationwide. Our goal is to understand your institution s long-term growth objectives so we can recommend solutions tailored to your needs. Solutions for growth. Balance Sheet Management Services, Inc. is not a member of the NASD or SIPC. 100 Motor Parkway, 2nd Floor, Hauppauge, NY Tel: Toll Free: Toll Free Branches: Fax: Website:

6 Solutions for Growth Balance Sheet Management Services provides comprehensive analytics and consulting services to meet the growing balance sheet management and regulatory needs of institutions nationwide. Our goal is to understand your institution s long-term growth objectives so we can recommend solutions tailored to your needs. We provide a comprehensive analysis of your balance sheet that focuses on: Earnings Management: A historical peer comparison of your primary operating & income ratios. Capital Management: A capital utilization analysis including a potential growth and leverage forecast. Also includes detail of the maximum growth by asset risk weighting category, potential impact on net income, ROA, ROE, dividends and tax implications. Liquidity Management: A historical comparison of deposit growth and loan growth, a 10-year projection of rate-shocked investment portfolio cash flows, plus a comprehensive liquidity calculation. Interest Rate Risk Management: A three-year income simulation under assumed flat, up and down rate scenarios. Details potential impact on loan income, investment income, interest expense, net interest income, net income, ROA, ROE, capital and capital ratio. Economic Value of Equity: A rate-shock analysis that details the market value risk of your assets, liabilities and capital. Also Available Gap matrix Strategic planning consultation Board education Investment Accounting Services through FinSer* We provide comprehensive portfolio accounting services through a cooperative business agreement with FinSer Corporation. Once the initial portfolio is complete, the only required maintenance is updated confirmations on any new transactions. FinSer s Online Bulletin System allows you to download your monthly reports and data files, in less than twenty-four hours in most cases, for quick turnaround. Monthly: Portfolio Distribution and maturity reports Independent market value pricing Premium, discount, amortization, and accretion reports SFAS #115 accounting reports Interest accrual reports 24 month cash flow and budget projections Transaction, safekeeping, and pledging report ABS, MBS, and CMO information, prepayment reports and More! Quarterly: Market commentary and interest rate history reports Portfolio distribution, yield, and duration graphs Interest rate risk analysis and rate shock of portfolio Annually: Year End Portfolio Recap Investment Portfolio Analysis Our portfolio analytics team identifies potential risks and opportunities through analytical software. Whether the investment strategy is to outperform an internal or industry benchmark, maintain a favorable spread to liabilities, understand an examiner s position, or identify strengths, weaknesses, and opportunities, our portfolio analytics team has assisted our clients in optimally managing their investment portfolios.

7 Solutions for Growth Strategic Investment Portfolio Planning Based on the results of our investment portfolio analytics, which provides a comprehensive measurement of your institution's balance sheet, we will offer qualified recommendations. Our team of experts will assist you in developing strategic plans customized for your institution. By assessing your strengths, weaknesses and sustainability against today s market environment, we partner with your institution to ensure that you meet your financial goals, while providing outstanding service to your customers. Regulatory Consultation We provide comprehensive consulting services regarding your investment portfolio in the eyes of regulators and examiners. You will benefit from direct consultation with Charles Felker, our Managing Director of Regulatory Affairs and frequent speaker at the Federal Reserve Management Schools. With over thirty years of experience, Mr. Felker can assist your institution in all of the following areas: Investment Regulations Asset/liability Management Assessments Pre and Post Examination Support Regulatory Flexibility Field of Membership Board, ALCO, and Senior Management Presentations We offer presentations customized for your institution on many topics including: Regulations Interpretive Rulings Customized Topics Regulatory Updates and Educational Seminars We are dedicated to the regulatory awareness and education of institutions. We provide regulatory updates to aid in the regulatory compliance process. We provide commentaries on proposed regulations and their affect on the institution's investment policy. We also conduct educational seminars based on your specific needs. *FinSer is neither an affiliate nor a subsidiary of Balance Sheet Management Services. Any services provided under portfolio accounting are the sole responsibility of FinSer. The information in this document has been obtained from sources we believe to be reliable. However, we do not guarantee it is accurate or complete. Balance Sheet Management Services does not provide investment advice. Past performance is no guarantee of future performance or results. This information is subject to change without notice. This document is not and should not be construed as an offer or solicitation to buy or sell any security or securities. Balance Sheet Management Services, Inc. is not a member of the NASD or SIPC. Policy Reviews and Revisions Balance Sheet Management Services assists institutions with an in-depth understanding of their investment policies, placing consideration towards the available investment opportunities, regulations, examiner decisions, and cash flow monitoring tools needed to be competitive in today's market environment. Asset Liability Management Policy Investment Policy Loan Participation Policy Loan Purchases

8 LPC Services The development of LPC Services is the result of numerous inquiries and requests we have received over the years from clients who were seeking assistance in entering the loan participation market. Through several unique programs, LPC Services works with financial institutions on strategies to enhance the performance of their loan portfolios and mitigate risks to their balance sheets. Our nationwide network of financial institutions, combined with decades of experience, gives us an in depth understanding of the issues affecting institutions. This enables us to provide loan portfolio solutions. LPC Services, Inc. is not a member of the NASD or SIPC. 100 Motor Parkway, 2nd Floor, Hauppauge, NY Tel: Toll Free: Toll Free Branches: Fax: Website:

9 Loan Portfolio Solutions The development of LPC Services is the result of numerous inquiries and requests we have received over the years from clients who were seeking assistance in entering the loan participation market. Through several unique programs, LPC Services works with financial institutions on strategies to enhance the performance of their loan portfolios and mitigate risks to their balance sheets. Our nationwide network of financial institutions, combined with decades of experience, gives us an in depth understanding of the issues affecting institutions. Our Loan Participation program matches buyers and sellers of loans to be participated or to be bought or sold. In essence, we provide our clients with valuable tools to more effectively manage their balance sheets/loan portfolios. This program offers both the buyer and the seller several benefits. For buyers, this program will assist in: Enhancing portfolio yield Providing additional avenues to diversify loan product and concentration risks Establishing new borrower relationships Providing the ability to grow loans outside of your geographic limitation For sellers, this program provides: Assistance in funding loan projects outside of your legal lending limits The ability to offer additional loans to your customers and maintain loyalty An outlet to mitigate your concentration risk in a product type or geographical area An appealing alternative to high borrowing rates LPC Services makes this process simple for both the buyer and the seller. For the buyer, we provide the resources to assess, present and determine the value of loan participations in your balance sheet. For the seller, we are able to present your loans to a nationwide network of hundreds of qualified clients/buyers with a click of the mouse. With our in-depth knowledge, we can target market your loan participation package with extreme efficiency to those most likely to be your participants. Our Conduit program has allowed us to partner with worldclass financial institutions in order to give our clients on line access to price and sell new production conforming and nonconforming, residential, 1-4 family real estate loans. The program is extremely flexible and user friendly. You will have the ability to price an individual loan as many times as you need to by changing the characteristics and specifications of the mortgage loan until it accomplishes the objectives of the borrower and your institution. Most importantly, it will allow your institution the ability to write and immediately sell mortgages with risk profiles that may not be typical, (i.e. interest only, jumbo 40 year, etc.) thereby servicing your customer while mitigating your risk. The interface will consist of on-line platforms that will deliver immediate pricing once all of the relevant fields are populated. Access to this additional pricing tool is a valuable resource in the development of your mortgage business. Our Credit Card Alliance program provides clients with the ability to sell their credit card receivables at a premium. Now you can: Mitigate risk within your loan portfolio in a way that is transparent to your customers Generate profit that may offset recent losses Offset balance sheet restructuring to take advantage of today s higher yield Increase liquidity while providing benefits to your customers This unique program will provide your institution with: Non-interest Revenue Custom branding that is transparent to your customers. Your institution s name will appear on all credit cards and statements Increased customer card accounts More robust credit card programs and offerings On-site training of programs with your institution s staff Improved customer retention, providing customers with: Enhanced product offerings Competitive interest rates Reward options Upgrade to platinum card Excellent customer service (24X7 call center using your institution s name) Credit cards may be profitable, but they carry the inherent risks of an unsecured loan. Now you can keep the benefits without the risks. The information contained in this document has been obtained from sources we believe to be reliable. However, we do not guarantee it is accurate or complete. The information is subject to change without notice. This is not a solicitation to buy or sell any security or securities. LPC Services, Inc. is not a member of the NASD or SIPC.

10 First Empire CD Management First Empire CD Management has been providing institutions with a reliable source for federally insured certificates of deposit for over a decade. As a leading partner in finding funds for institutions, we have the resources to assist you with acquiring as much money as you need as quickly as you need it at the lowest possible cost. We offer valuable strategies to help our clients utilize the national CD marketplace and provide solutions to optimize their portfolio. First Empire CD Management provides growth strategies. First Empire CD Management, Inc. is not a member of the NASD or SIPC. 100 Motor Parkway, 2nd Floor, Hauppauge, NY Tel: Toll Free: Toll Free Branches: Fax: Website:

11 Growth Strategies First Empire CD Management has been providing institutions with a reliable source for federally insured certificates of deposit for over a decade. As a leading partner in finding funds for institutions, we have the resources to assist you with acquiring as much money as you need as quickly as you need it at the lowest possible cost. We offer valuable strategies to help our clients utilize the national CD marketplace and provide solutions to optimize their portfolio. We have the ability to match depository institutions nationwide. Our team of experienced professionals can assist you in developing customized funding alternatives that complement your lending. Raise maximum liquidity in the most cost-effective manner. Representing a national network of institutions, we make available the most opportunities for fixed rate and variable rate CDs from institutions that are all federally insured. We assist you in the following ways: Match Variable Rate Loans With Variable Rate CDs Tied To The Same Index Customize Funding Designs Reduce The Expense of Obtaining Deposits Locally By Using CD Funding Fund Loans At An Attractive Spread Lock-in Lower Cost of Funds In A Rising Rate Environment Avoid Competing With Your Core Deposits We speak with thousands of depository institutions and minimize the administrative process to enable deposit growth that is hassle-free. Many of our clients are continually looking to us to place funds in quality institutions. In the long-term, we can save your institution the expense of showing overly aggressive rates to local depositors, thereby increasing your core deposit base and maintaining a lower overall cost of funds. First Empire CD Management, Inc. has been assisting in the placement of non-negotiable certificates of deposit with financial institutions for over a decade. CD Funding Assistance At First Empire CD Management, Inc. your total cost never exceeds the negotiated rate of interest. We partner with your institution in the following ways: Locate depositors for your institution. These depositors are found through a national network of institutions. Instruct depositors to wire funds directly to your institution along with their complete return wiring instructions. Send written confirmation to you and each depositor noting the length and term of the certificate and rate of interest being paid. These return rates and terms are predetermined by you. Once you have provided an estimate of the amount of funds your institution needs, we will complete your processing quickly and efficiently. We are dedicated to assisting your institution in finding the funding it needs to grow. CD Investing Assistance At First Empire CD Management, Inc., our financial professionals help institutions maximize their income. Our national network of institutions is an excellent source for nonnegotiable CDs that are not available through the rate board. Our financial professionals are constantly working for you, targeting the CDs that meet your institution s specific needs. In addition, we provide the following value added services: Direct wiring instructions to the issuing institution Assistance with receiving monthly interest checks Advice on all maturities The information contained in this document has been obtained from sources we believe to be reliable. However, we do not guarantee it is accurate or complete. This information is subject to change without notice. This document is not and should not be construed as an offer to buy or sell any security or securities. First Empire CD Management, Inc. is not a member of the NASD or SIPC.

12 Contact Us Headquarters: 100 Motor Parkway, 2nd Floor Hauppauge, New York Tel: Fax: Branch Locations: Scottsdale, Arizona Salem, Oregon Great Falls, Virginia Reach all of our branches toll free: