A Profitable Proposal by

1
Selling Your Credit Card Portfolio Can
Produce Major Benefits
A Profitable Proposal by the Residential and
Consumer Whole Loan Division
2
Why Banks Sell Their Portfolios
Stagnant credit card portfolio growth
Competition from major card issuers Low net
yield after factoring in ALL expenses
Historically high premiums Alleviate rising
delinquency and losses Enhanced card services
to customers Re-focus staff and capital on core
business
3
Common Concerns
You fear cross-selling by the portfolio
partner. Fact - By contract, investors are
prohibited from cross-selling You fear a loss
of identity. Fact - Your institutions name
remains on all credit cards and marketing
materials You fear a loss of control. Fact -
Your institution will have final approval of
all marketing materials You fear card rates
will rise after sale. Fact - Up to 90 of
customers will receive better rates due to
risk-based pricing You fear changes by
investor will create cardholder runoff. Fact - To
justify paying the premium, your partner
must retain and grow the portfolio through
exceptional customer service and unique marketing
4
Benefits To You
Historically high premiums Future revenue
sharing - Up to 40-50 basis points of the
outstanding balance of a growing, off-balance
sheet asset - Typically 10 - 25 for new
accounts originated by your bank or your
investment partner Alleviation of credit risk
and program costs Re-focus on core business -
Allocation of capital and employees to your more
profitable products Customer/Deposit growth -
Promotes bank name through partners marketing
channels Alliance with compatible,
non-competing partner Competitive card program
5
Benefits To Your Customers
Lower interest rates 24/7 account access via
telephone and Internet Expanded card programs
(various cards types, e.g. Platinum, Student,
Business, Secured, etc.) Merchandise and
travel rewards programs
6
Determine Your True Portfolio Profitability
7
Calculate Your Portfolio Yield
Double-click on spread sheet to calculate net
yield.
Source Credit Card Management
8
Why Morgan Keegan?
Morgan Keegan can show you the transactions
impact on your balance sheet and income statement
prior to the sale to help you make an effective
management decision.
Morgan Keegan has relationships with all known
credit card investors, enabling the seller to get
not only the best price, but also the partner
that best fits the needs of the bank and its
customers. Morgan Keegan has more than 40
research analysts to help with reinvestment
strategies.
9
Free Portfolio Analysis
Morgan Keegan can provide you with an estimate of
the initial premium and income stream you can
expect to receive with very little information
from you.
What we need to begin Year-to-date monthly
management reports for each type of card (ex
Gold, Platinum, Classic) for - Most recent
month available - Last two year-ends A
sample application
10
Morgan Keegan and Regions A credible source for
your credit card portfolio sale
80 billion financial holding company Morgan
Keegan, an independent subsidiary of Regions
Financial Corporation with more than 135 offices
in 14 states and 2,000 employees Stock is
traded on the New York Stock Exchange (RF) A
full line of financial products and services
including - Principal buyer and seller of
residential and consumer conforming and
non-conforming loans - Fixed income trading
and portfolio analysis - Equity research and
trading - Public capital mergers and
acquisitions private equity
1-800-366-7426 www.Morgan Keegan.com