Kohl Analytics Group is a service provider for Forensic-level Profitability Analysis for financial institutions. Being a service means we do the vast majority of the work for you. As such. we focus on FIs that lack the internal resources (I.e., time, data, etc.) to perform world-class profitability analytics on their own. The value of our process is clear as our clients average between 50 to 100% better returns than the industry. We do this by determining which parts of the organization create or destroy value so that institutions can promote the good and minimize the bad. After all, you can’t manage what you don’t measure and Kohl measures things that most people never consider. The process entails analyzing the financial institution at the lowest, forensic level. We gather every loan and deposit, individual loan and deposit transactions, plus time and activities for each employee that touches the value stream of originating and servicing loans and deposits. We then determine the revenue and cost of those transactions, and they are assigned to each individual loan and deposit instrument. Once this occurs a P&L for each instrument materializes. At this level, one can roll up and create P&Ls by customer/member, delivery channel, credit score, loan officer, geography, etc., and any combination thereof. The real key to this process is the time and activities of the employees caring for customers and their loans and deposits. Employee salaries and benefits account for about 50% of Net Interest Expense (NIE). What many don’t realize is that those employees also cause or drive about another 25% to simply keep them comfortable and make them productive. So, since employees all-in drive about 75% of NIE, if you don’t get this piece right the entire profitability analytics process is going to be way off.