Location: Headquarters—Birmingham, AL
28 Loan production offices in Southeast and Southwest

Employees: 400+

Founded: Collateral Companies started in 1933; 1985 New South Federal Savings Bank chartered

History

• First opened for business in October 1933 under the name Collateral Investment Company.
• In 1985, New South Federal Savings Bank, a subsidiary of Collateral Investment Company, was chartered by the Federal Home Loan Bank.
• New South is part of a privately-held, family owned business begun by W. T. Ratliff, grandfather of Will Ratliff, current Chairman. The Ratliff family remains very involved in the management of New South and is committed to the continued success of the bank.
• New South acquired the operations of Umbrellabank.com in 2004. Umbrellabank.com, now functions as the internet banking division of New South and provides convenient online banking for depositors nationwide.

Awards and Community Relations

• New South Federal is the 4th largest mortgage lender in Alabama, after large banks such as Bank of America, Regions, and Wells Fargo.
• New South has a history of supporting working families by making loans to qualified lower and middle income borrowers. Today, the average mortgage is approximately $145,000.
• The Birmingham Business Journal named New South as one of the Best Places to Work in 2006, 2007, and 2008, and a third of New South employees have been with the company for a decade or more.
• New South leads the way in meeting high standards for fair lending practices, as the third lender nationwide to sign a best practices agreement with HUD.
• New South’s CRA officer was awarded the Economic Development Award from the Congressional Black Caucus.

New South’s Performance

• As of December 31, 2008, New South held over $1.9 billion in assets.
• New South maintains good liquidity through deposits meeting FDIC guarantee requirements. The FDIC insures all deposits up to $250,000 per customer, (joint accounts which are considered to be two customers, $500,000 FDIC insurance available), and IRA accounts up to $250,000.
• In 2008 New South implemented a strong liquidity plan. In addition, a significant portion of New South’s asset base remains in highly liquid government-backed mortgage securities.
• New South’s core businesses have continued to perform well into 2009. The residential mortgage portfolio has continued to be very profitable despite the downturn in the real estate market, and the retail mortgage lending business is enjoying record volumes and profits. In March, New South saw its most profitable month ever in mortgages originated for sale, along with significant new deposits, with deposits now totaling more than $1.3 billion at the end of the first quarter.

Our Core Values

Integrity:
Trust is the foundation and the cornerstone for all that we do. Our word is our bond and we must maintain complete confidence in our integrity among employees and customers or all of our efforts are meaningless. Inside and outside of our Family of Companies, people must be able to rely on us.

Service:
Professional and enthusiastic service is our basic product in every business; it is the essential, defining characteristic which can create lasting relationships with our customers and set us apart from our competitors. We will constantly strive to ensure that we are both willing and completely able to serve those who look to us for products, services, or assistance.

Community:
The relationships that bind us together, both within our Family of Companies and externally to the larger communities where we live and work, must be characterized by certain basic values. We will respect the uniqueness of every human being and appreciate the strength that lies in differences. We will work hard and cooperatively, seizing opportunities to improve our own lives and the lives of our neighbors. We will build mutually sustaining relationships and communicate openly, thus illuminating our strengths and our weaknesses, our achievements and our needs for growth and development.

Profitability:
It is our partners’ and shareholders’ willingness to leave their capital invested with us that makes everything we do, all we achieve, possible. We will reward their confidence in our stewardship, both by prudently protecting their capital and also by continuing to provide them exceptional long-term returns on their investment. Only through profitable and growing operations will we meet their expectations and our own personal and business goals.