your irst choice - the plateau group, inc. · 2 the plateau group, inc. founded in 1981 in...

Your irst choice 1

The Plateau Group, Inc.2

Founded in 1981 in Crossville, Tennessee, The Plateau Group,

Inc. is an underwriter of payment protection products and a

distributor of related financial products and services through-

out the United States and South Pacific Islands. Plateau serves

clients in the banking, consumer finance, automotive, credit

union and retail industries. The company is considered one of

the premier providers of products and services to financial

institutions. Plateau also holds a national reputation as a

provider of reinsurance and reinsurance accounting.

Company Profi leCompany Profi le

Authorized StatesAuthorized States

Your irst choice 3

Financial PerformanceFinancial Performance

Financial Performance Results for 2017 Include:• Net after tax income of $2,743,244 compared to $2,041,100 for 2016; an increase of 34.4%.• Net income per share of $2.31 compared to $1.75 for 2016; an increase of 32%.• Shareholders’ equity at year-end 2017 of $28,245,086 ($23.69 per share) compared to $25,319,219 at year-end 2016 ($21.69 per share); an increase of 11.56%.• Return on equity of 10.3% for 2017 compared to 8.4% for 2016. • Collected insurance premium of $112,180,589 com-pared to $110,301,323 for 2016; an increase of 1.7%.• Cash and Invested Assets at year-end were $69,583,526 compared to $69,518,217 at 2016.• Investment Income of $1,359,164 compared to $993,722 for 2016; an increase of 36.8%.• Commissions and Fee Income of $4,871,901 compared to $4,802,900 for 2016.

NOTE: Total revenues, cash and invested assets and investment income used in this presentation may not coincide with the enclosed balance sheet and income statement because certain components are reclassifi ed for GAAP presentation. The numbers discussed in the Letter to Shareholders and in the Analysis of Premium Section are used consistently for planning and comparison.

Table of ContentsTable of Contents

Letter to Shareholders.......................2Marketing/Sales Photos.....................4Management Photos ..........................5Consolidated Balance Sheet...........14Consolidated Earnings......................15Shareholders’ Equity...........................16Plateau Associates.............................11Executive Committee.........................14Board of Directors..............................14Associates by Department................15


Letter to ShareholdersLetter to Shareholders

Dick WilliamsPresident

To our: Shareholders, Customers, and Prospec ve Customers:

For 2017, The Plateau Group, Inc. reported record earnings of $2,743,244, $2.31 per share compared to $2,041,100, $1.75 per share for 2016. This is an increase of 34.4% in earnings and 32% in per share earnings. The earnings were boosted by favorable income tax adjust-ments in the amount of $458,000, primarily a ribut-able to the revalua on of deferred tax liabili es at the new lower tax rate. Shareholders’ equity increased to $28,245,086 during 2017 compared to year-end 2016 of $25,319,219, an increase of 11.56%. Return on equity for 2017 was 10.3% compared to 8.4% for 2016.

Each of our revenue components experienced a gain for the year. Insurance premiums were a record $112,180,589, an increase of 1.7% compared to 2016. Income generated from premiums, less commissions, claims and premium taxes, increased $701,917 to $12,071,598 in underwri ng margin, which is the amount available to cover overhead from premiums. The premi-um by Market Segment chart on this page illustrates the sources of our produc on and the changes during 2017.

The second largest revenue component is com-missions and fee income which was rela vely fl at at $4,871,901 for 2017. A por on of this component is de-rived from administra ve fees collected on administered extended service contracts and debt protec on products off ered by banks. The largest component of this important source is commissions earned by off ering valuable prod-ucts manufactured or underwri en by other vendors.

Our third source of revenue is investment income generated by inves ng our capital and reserves held on our insurance products. At year end 2017 we held a total of $69,583,526 in cash and invested assets. Investment earnings for 2017 were $1,359,164 compared to $993,722 for 2016, an increase of 36.8%. More than ninety-fi ve percent of our por olio is invested very conserva vely in short term cer fi cates of deposit, fi xed income gov-ernment bonds and fi xed income corporate bonds. The average yield on our investments for 2017 was 2% as we con nue this conserva ve investment por olio.

On the expense side, rising technology costs and regulatory and compliance costs are costs of doing business for Plateau. We u lize prudence in every pos-sible decision we make in these areas but must meet the requirements imposed on our opera ons to improve busi-ness processes and compliance requirements. To a large extent these costs are outside of our control. We focus on the costs within our control. The key performance indica-tor we use to gauge our eff orts on cost control is our ra o of opera ng expenses to opera ng revenue. For 2017 this ra o was 26.89%. Our stated goal for this ra o is 25% and we believe we can achieve this target in the next couple of years.

Your irst choice 5

During 2017 we applied for and received Cer fi -cates of Authority (CofA) in eleven new states. Plateau Insurance Company obtained four of these new CofA’s bringing its total to forty-three states plus three cer- fi cates in the South Pacifi c Islands. Plateau Casualty

obtained seven new CofA’s bringing its total to forty-six states. This expansion is important to Plateau as we review many of the new business opportuni es requiring the need to off er products in mul ple states. Now that we have obtained the new CofA’s we are taking the next step in fi ling policy forms for the necessary products. The ability to provide products in the majority of states combined with maintaining a ra ng of A- with AM Best will con nue to bring new business opportuni es for our review.

We con nued to add experienced profession-als to our staff in 2017. Bill Ellio joined our staff in January 2017. Bill brings 39 years of credit insurance experience with four diff erent carriers, the most recent being Transamerica which exited that business in 2016. His role with Plateau is client management, including management of exis ng accounts and helping assess the new opportuni es we iden fy. In June 2017 Jim Hall, an associate of Bill’s at Transamerica, with 28 years of credit insurance experience in a variety of opera onal areas, including form fi lings, management of claims, and group mortgage opera ons, joined our staff . Since Transamerica exited the monthly pay group mortgage business at year end 2016, we have replaced some of the Transamerica policies in force through certain creditors with Plateau In-surance Company policies, picking up approximately one million dollars in annual premium. In 2018 we have iden- fi ed and are working to replace another million dollars

of group mortgage annual premium. Bill and Jim have been very valuable in assis ng us with the transi on of this business. We now have twelve associates with many years of experience in our business who have joined our staff in the last six years contribu ng to our marke ng, opera ons and growth.

Plateau must maintain compliance with laws and regula ons from mul ple sources. Insurance is regulated

by each state, each of which has its own unique laws and regula ons. Our staff must be well aware of the unique requirements of each state. The majority of our products are off ered by lenders which have their own set of regu-latory requirements on a state by state basis, as well as federal lending laws imposed on their business. For Pla-teau, the Consumer Financial Protec on Bureau has been the elephant in the room since its incep on under the leadership of Richard Cordray, where the bureau applied enforcement ac ons and imposed very expensive se le-ment agreements. Since his resigna on late in 2017, Mick Mulvaney has led the bureau as a very reasonable director. It appears that under Mulvaney’s leadership, and hopefully the permanent director who follows him, the bureau will be led in ways that are fair to all par es, including lenders.

Plateau remains well posi oned to deliver on stra-tegic priori es and create long-term value for our share-holders. With our expanded footprint of CofA’s we expect to a ract new business opportuni es. We an cipate cross selling our products in the commercial bank market to exis ng clients, growing the automobile market through recently contracted agents and third-party administrators, and growing the consumer fi nance market as we a ract new producers. As we build on the momentum of our diversifi ca on over the past eight years, we remain dedi-cated to providing excellent and diff er en ated service for our customers.

I want to off er a sincere thanks to our associates, our management team, and our board for their dedica on, commitment to quality service and their openness to in-nova on and improvement. To our investors and clients, I thank you for your trust. We understand we must con- nue to earn it and we look forward to the challenge.

Regards,


Marketing/Sales DevelopmentMarketing/Sales Development

Doyle KellySoutheast

Reed GassChief Marketing Offi cer

Thom HaganMiddle Tennessee

David GreeneWest Tennessee

Bob JoyceNortheast

Greg JanssenIndiana

Dave KarrFinancial Institutions

Andrea Bower Kansas

Cameron RogersEast Tennessee

Tony SnowIndiana

Fred AntleySouth Carolina

Melody WilliamsDirector of Training

Bill ElliottClient Management

John KellySoutheast Agent

Michael BoozerSouth Carolina Agent

John ManningAlabama Agent

Your irst choice 7

Skip DavisSr. Vice President

Products/Marketing

Euretha RobertsSr. VIce President

Operations

Mike GrahamSr. Vice President

Reinsurance Accounting

Eric ShaverSr. Vice President

Information Technology

ManagementManagement

David HardegreeChief Financial Offi cer

Executive Vice President

Elaine Pelletier, FSA, MAAASr. Vice President

Actuary

Steve DouglasVice President

General Counsel

Michael Ramsey, CPAVice President

Treasurer

Sharon Tabor, Vice President

Property & Casualty

Shelia NewberryVice PresidentTitle Insurance

Sandy WhitsonVice President

Premium Processing

Doris DavisVice PresidentCredit Claims

Judy HicksVice President

Accounting

Terri HammonsVice PresidentAgent Services

Deedy AdamsVice President

Compliance

Sissie TurnerVice President

Group Mortgage/MOB

Joy WhitedVice PresidentUnderwriting

Eric Shaver IIInformation Technology

Security Offi cer


Consolidated Balance SheetsConsolidated Balance Sheets

Your irst choice 9

Consolidated EarningsConsolidated Earnings


Con

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1, 20

161,1

53,45

44,6

32,95

218

,119,9

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9,213

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,297,1

55

Net in

come

2,041

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2,041

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Othe

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64,62

564

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18,35

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,358

362,7

3238

1,090

Retir

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(17,24

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(144,1

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(576,7

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(576,7

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Divid

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13,01

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3,120

256,1

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502,3

461,4

40,96

464

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2,022

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1, 20

161,1

67,58

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26(54

4,588

)25

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19

Net in

come

2,743

,244

2,743

,244

Othe

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ensiv

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ome

216,4

9721

6,497

Stoc

k iss

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30,65

0 sha

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628,8

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9,451

Retir

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- 14,7

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(14,72

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4,128

)(52

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(301,8

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(576,7

76)

(576,7

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Divid

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9,017

176,2

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5,299

T

otal

24,94

457

0,955

2,113

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216,4

972,9

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7

Balan

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1, 20

17 $

1,192

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$5,7

06,25

3 $

21,67

4,397

$(32

8,091

) $

28,24

5,086

Your irst choice 11

Plateau AssociatesPlateau Associates

Jessie SteppCredit Claims

Victoria SteppCredit Claims

Gina KeenerCredit Claims

Megan SherrillCredit Claims

Kimberly VincentCredit Claims

Tonya IlesCredit Operations

Jo ReaganCredit Operations

Renee HolbrookCredit Claims

Brandy ThompsonCredit Operations

Erin Young, AVPCredit Operations

Cassie IlesCredit Operations

Tasha HigdonCredit Operations

Tiff any ThompsonCredit Operations

Pamela PingreeCredit Operations

Sarah RaryCredit Operations

Joshua VanWinkleCredit Operations

Sandra BradberryUnderwriting

Bre WeidnerCredit Operations

Dana RedwineUnderwriting

Becky JohnstonUnderwriting

Jackie WilbanksGroup Mortgage/MOB

Shaina HardyGroup Mortgage/MOB

Meredith MullenUnderwriting

Kelley MillerGroup Mortgage/MOB

Hannah LauGroup Mortgage/MOB

April Fagan, AVPCredit Claims

Brandy AdkinsUnderwriting

Leanne LandersCredit Operations

Lauren BilbreyCredit Claims



Andrew EllerAgent Services

Shannon GrahamAgent Services

Katie CastelowAgent Services

Keli SmithAgent Services

Laura LooneyAgent Services

Margaret MullinaxAgent Services

Beverly Jolly Compliance

Jessica HawnLicensing

Mary Franc GrahamCompliance

Amanda DyerLicensing

Troy BolenInformation Technology

Alexis DeiblerCompliance

Greg BaughmanInformation Technology

Terry WalterP&C/Auto

LeeAnn Roberts, AVPP&C/Auto

Heather JohnsonP&C/Auto

JoAnn RamseyInformation Technology

Skye PearsonInformation Technology

Daniel CareyInformation Technology

Julie HowardInformation Technology

Brandi WyattP&C/Auto

Whitney HenryP&C/Auto

Cammie ElmoreP&C/Auto

James HallCompliance

Your irst choice 13


Melissa DyerTitle Services

Stephanie CareyGeneral Services

Brett SuggsGeneral Services

Vicki MasonGeneral Services

Glenna JacksonGeneral Services

Vicki CarlsonGeneral Services

Lynette DurantAccounting

Tracy Graham, AVPAccounting

Michele StandeferAccounting

Margaret SmithAccounting

Hannah ZiesReinsurance

Crystal DavidsonReinsurance

Johnnie WhittenburgReinsurance

Nick DonathanReinsurance

Kaye BarnettReinsurance

Natasha CollinsPlateau West

Martha LindsayPlateau West

Tamara BurtonPlateau West

Andrea ShumatePlateau West

Scarlett Sapp-HolmesAccounting

Christy ReedCredit Claims


Executive CommitteeExecutive Committee

Steve Miller, ChairmanThe Plateau Group, Inc.

Crossville, TN

Dick Williams, PresidentThe Plateau Group, Inc.

Crossville, TN

John Barker, CEOCitizens Tri-County Bank

Dunlap, TN

John BrunoBrentwood, TN

Board of DirectorsBoard of DirectorsDavid Barnes, PresidentBank of FrankewingFrankewing, TN

Bill Bates, CEOBank of Perry County Lobelville, TN

James England, ChairmanDecatur County BankDecaturville, TN

Craig Fitzhugh, Chairman, CEOBank of RipleyRipley, TN

Randy Graham, President, CEO First National Bank of TennesseeLivingston, TN

David Hardegree, CFOThe Plateau Group, Inc.Crossville, TN 38555

Mark Hayes, Chairman, CEOFirst National BankPulaski, TN

Wright Hickerson, III, DirectorFCB CorporationManchester, TN

Andy Nash, EVPThe Farmers BankPortland, TN

David Williamson, President, CEOBank of Putnam CountyCookeville, TN

Chad Wilson, PresidentFoundation Bank/McKenzie Banking Co.Jackson, TN

Wib Evans, PresidentFirst Bank Ventures

Lexington, TN

John HaileCleveland, TN

Your irst choice 15

CorporateDick WilliamsDavid Hardegree, CPAEuretha RobertsMike GrahamEric ShaverSkip DavisElaine Pelle er, FSA, MAAASteven Douglas, A yBill Ellio

Marke ng Staff Reed GassThom HaganDavid GreeneCameron RogersDoyle KellyFred AntleyBob JoyceGreg JanssenTony SnowAndrea BowerDave KarrMelody Williams, Trainer Marke ng AgentsJim Smar Hank LovedayJohn ManningDonna BrownMichael BoozerJohn Kelly

Informa on TechnologyEric ShaverJoAnn RamseyDaniel CareyTroy BolenEric Shaver IISkye PearsonGreg BaughmanJulie HowardGarre Davis

Group Mortgage/MOBSissie TurnerHannah LauJackie WilbanksShaina HardyKelley Miller

Agent ServicesTerri HammonsKeli SmithMargaret MullinaxShannon GrahamKa e CastelowLaura LooneyAndrew EllerAmanda DyerJessica Hawn

General ServicesVicki MasonStephanie CareyBre SuggsVicki Carlson Craig Wya Jewell SelbyGlenna Jackson

Corporate Accoun ngMichael Ramsey, CPAJudy HicksMargaret SmithTracy Graham Christy ReedLyne e Durant Scarlet SappMichele Standefer

Reinsurance Accoun ngMike GrahamJohnnie Whi enburgKaye Barne Hannah ZiesCrystal DavidsonNick Donathan

P & C / AutoSharon TaborLeeAnn RobertsTerry WalterBrandi Wya Heather JohnsonWhitney HenryCammie Elmore

Title InsuranceShelia NewberryMelissa Dyer

Compliance Deedy AdamsBeverly JollyAlexis DeiblerMary Franc Graham, A yJames Hall

Credit Opera onsSandy WhitsonErin YoungJo ReaganJoshua VanWinkleTasha HigdonPamela PingreeTonya IlesBre WeidnerSarah RaryTiff any ThompsonBrandy Flynn Cassie IlesLeanne LandersHenri Calahan

Underwri ngJoy WhitedSandra BradberryBecky JohnstonMeredith MullenDana RedwineBrandy Adkins

Credit ClaimsDoris DavisApril FaganKimberly VincentVictoria HoustonMegan SherrillJessie SteppGina KeenerRenee HolbrookLauren Bilbrey

Plateau WestMartha LindsayNatasha CollinsTamara BurtonAndrea Shumate

Plateau Associates by DepartmentPlateau Associates by Department


Crossville, Tennessee

Plateau CustomersPlateau Customers

Plateau Corporate Offi cePlateau Corporate Offi ce

Your irst choice 17

your irst choice - the plateau group, inc. · 2 the plateau group, inc. founded in 1981 in...

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