GMFS Transaction (Tables)

12 Months Ended

Dec. 31, 2014

Total consideration is as follows:
Cash paid to owners of GMFS	$	62,847,452
Contingent consideration		11,430,413
Total consideration	$	74,277,865

Schedule of Net Assets Acquired

Fair value of Assets:
Cash and cash equivalents	$	13,304,612
Mortgage loans held for sale		92,512,390
Mortgage loans held for investment		1,098,897
Derivative assets		1,590,160
Other assets		2,713,950
MSRs		32,300,337
Goodwill		16,512,680
Intangible Assets		5,800,000
Loans eligible for repurchase from Ginnie Mae		21,169,329
Total assets acquired		187,002,355

Fair value of Liabilities:
Warehouse lines of credit		85,840,705
Accounts payable and other liabilities		5,714,456
Liability for loans eligible for repurchase from Ginnie Mae		21,169,329
Total liabilities assumed		112,724,490
Fair value of net assets acquired	$	74,277,865

Goodwill represents the excess of the purchase price over the fair value of the net assets acquired and liabilities assumed and is primarily made up of expected synergies and the assembled workforce of GMFS. This determination of goodwill is preliminary, and is subject to change when the valuation is complete. A preliminary determination of the goodwill is as follows:

Total purchase price	$	74,277,865
Less: Preliminary estimate of the fair value of the net assets acquired		(57,765,185	)
Goodwill	$	16,512,680

Schedule of Intangible Assets Acquired

	Estimated Fair Value		Estimated Useful Life
Trade name	$	2.0 million	10 years
Customer relationships		1.3 million	10 years
Licenses		1.0 million	3 years
Favorable lease		1.5 million	12 years
Total Intangible assets	$	5.8 million

Schedule of Revenues, Earnings, and Net Income

	Year Ended December 31, 2014		Year Ended December 31, 2013
Net interest income	$	21,623,473	$	15,737,131

Noninterest Income
Mortgage banking activities, net		41,047,510		46,354,596

Loan servicing fees, net of direct costs		5,239,010		3,022,447

Other income		673,270		709,369

Net income		35,213,626		11,465,008

Interest income – mortgage loans held for sale	$	594,217

Mortgage banking activities, net:
Gain on sale of mortgage loans, net of direct costs		5,344,361
Loan origination fee income		213,540
Provision for loan indemnification		(118,895	)
		5,439,006
Loan servicing fee income, net of direct costs		929,718
Change in fair value of mortgage servicing rights		(1,684,373	)
Other income		45,861
Total non interest income		4,730,212

Net income before expenses and taxes relating to Honeybee TRS	$	583,073
Expenses of Honeybee TRS		(2,710,564	)
Net loss after expenses of Honeybee TRS, before tax		(2,127,491	)
Tax benefit		850,996
Net loss after expenses of Honeybee TRS, after tax	$	(1,276,495	)

Schedule of Future Amortization Expense

2015	$	788,340
2016	$	788,340
2017	$	732,776
2018	$	455,004
2019	$	455,004