Leasing News is a web site that posts information, news, and entertainment for the commercial leasing and finance industry. The News Edition is updated Monday, Wednesday and Friday.
Wednesday, August 10, 2011
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and was not written by Leasing News nor information verified, but from the source noted. When an article is signed by the writer, it is considered a “by line.” It reflects the opinion and research of the writer. It is considered “bias” as it is the writer’s viewpoint.
Women for Wounded Warriors
Terri E. McNally, Global Capital, Chicago, Illinois, is involved in this regarding three funders/Memorial services--one in Arlington, one in Virginia beach, and one in each person's home town. Money will help defer costs of travel, rental cars, food, and hotel for extended family, airfare, and other costs. 100% of the money will go towards the families.
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Depping Secedes from the Government Banking Regulators
Number one, Ascentium Capital, is up and running with CEO Thomas Depping and a management team, many from First Sierra and American Express Business Finance, as well as Ken Paston's Studebaker-Worthington, whose web site is now down, and according to an insider, is active, and may be expanding the sales staff. I am sure his telephone is ringing off the hook.
No one at Main Street Bank or Ascentium returned telephone calls, and all this information comes from web sites or from insiders.
The former Studebaker-Worthington staff is active. The statement in the press release and web site shows: "The company will originate loans and leases through a national sales staff that will work with equipment manufacturers, distributors and resellers, as well as vendors, franchisors and selected equipment lease brokers."
It appears Ascentium will not be emphasizing the indirect or broker business, and only a small group of “select” brokers will be able to refer transactions. The aim is to build up a direct and vendor marketing team, most likely to work out of Houston, as Paston’s staff is out of Jericho, New York; however, in this day and age, most salesmen work out of their own office. Cloud computing will be enabling more functions away from a “main computer.”
The web site says, "We finance equipment from $5,000 up to $250,000, and larger equipment amounts for certain qualified businesses. For equipment costs between $5,000 and $100,000, a completed application is all that we need to start the credit approval process."
It should also be noted that Ascentium Capital is not listed in the California Department of Corporations as licensed California Finance Lender and therefore should not be doing business in California. The wait now is nine months, according to several who have also recently applied. Whether licensed in other states are not known at this time.
Whether they will be licensed next week, or next month, is not known.
Let's first get into the motivation of Tom Depping, who when he had First Sierra tried to get a bank going, primarily for the cost of funds and other abilities gained. Main Street Bank grew, wound up in a good position and despite the FDIC consent decrees, was in good shape, growing, profitable, good cash position, doing very well.
When the layoffs happened, Tom Depping told Leasing News it was only two or three salesmen who were let go, but in reality, ex-employees told us it was close to 40, and later FDIC quarterly reports reflected this number, as well as the Executive Vice-President and person in charge Bob Fisher, CLP, surfaced working as a Bank of America Business Development Officer.
According to ex-employees information, which Leasing News could not confirm with FDIC after numerous attempts, the FDIC concern was all the loans to physicians and other medical professionals, long term, at good rates, with little or no collateral. The FDIC believed the higher rates meant the loans and leases were not of good quality, or else how could they get the rate? They reportedly also did not like the length or structure or credit criteria. They also didn't like some of the other factors, especially types of equipment with higher rates---and because of the rates, thought something was wrong. Again, Leasing News could not confirm this, but was told by at least six or more sources that had the personal knowledge of what had happened.
In 2009 the FDIC noted $2.7 million in lease financing charge offs and $4.2 million in commercial and industrial loans, but not land and construction or real estate loan defaults. The layoffs happened the beginning of March, 2010.
By the end of the year 2010, the fact was there were no serious delinquencies or charge offs in comparison, according to FDIC records, and 2011 the bank was doing very well, but the planning had started earlier, and when Tom Depping made his public remarks about wanting to make business loans and leases to small businesses, he wasn't kidding, as he felt he had his team's hands tied by the regulators.
Some of the action he took in March, 2010, was for the bank auditors, some was for the disappointment that they ruled he could not be CEO or president of the bank, meaning he could not be active in the "day-to-day" operation, as he remained Chairman and also CEO of the holding company. Now to tell that to a Texan, you'd better unstrap the holster for the revolver your belt. To tell that to Tom Depping who handled billions of dollars of transactions, had connections, had survived several economic recessions, he is not going to sit still, so it is obvious he got Main Street Bank in very good order, in a very tough market place, with a plan to get out of the banking regulations, especially a Washington government telling a Texan how he could run his business. He in effect seceded.
Let's look at the management page: https://ascentiumcapital.com/management.aspx
Depping is the CEO, and the president of Main Street Bank; Sonny Lyles is the executive VP, and chief risk officer, followed by exec. vp, Chief Financial Officer Ken Meyer, formerly with American Express Business Finance and First Sierra Financial; Ken Paston, exec. vp, sales and marketing.
Ken Paston, Exec. VP, Sales and Marketing
Paston previously was president of the Main Street Bank "Studebaker-Worthington division," where he served as president since 1975, and his right hand man for over ten years, Omar Diaz.
Exec. VP, CIO, David Pederson was with American Express Business Finance and First Sierra Financial; Sr. VP, Treasurer, Evan Ilikoff, formerly with Wells Fargo Securities; John Lee, Sr. VP, General Counsel, American Express and Xerox; Jerry Noon, Sr. VP, Asset Management, Main Street Bank, American Express Business Finance, First Sierra Financial; Hernan Traversone, CLP, Sr. VP, Credit Risk.
Hernan Traversone, CLP, Sr. VP, Credit Risk
Traversone holds a key position as he is responsible for credit underwriting and portfolio sales. He was Chief Credit Officer of Silver Mark Capital, a division of Sterling Bank, and prior American Express Business Finance, Houston, and VP, Operations, wholesale business for First Sierra Financial. As important, he is a Certified Leasing Professional.
Bryan Wheeler, Sr. VP, Vendor Services
Bryan Wheeler, Sr. VP, Vendor Services, who was Senior Vice President of Credit and Operations at Main Street Bank, with direct responsibilities in underwriting and vendor management. In addition, he served as Regional President at Main Street Bank where he managed retail branch locations. Prior to that, Bryan served as Director of Vendor Services for American Express Business Finance and its predecessor, First Sierra Financial, Inc. from 1998 until 2005.
All these officers hold key positions and the three highlighted may be considered more visible, but the point is this is both a seasoned and knowledgeable group, and while the company may be considered new, the executive team is one of the most experienced in the leasing and finance industry.
Look for some major competition once this organization is fully up and operational. Depping is jumping with both feet back in the leasing and financing business. As with Steve Hudson in Canada, he evidently sees the leasing business taking off again.
Dwight Galloway's RLC Funding Up and Running
June 1, 2011 Leasing News announced Dwight Galloway, CLP, former head of LEAF Specialty Finance, Columbia, South Carolina has formed RLC Funding, a separate division of Navitas Lease Corp, Ponte Vedra Beach, Florida. He will start accepting application by the end of June. RLC Funding will be working out of Columbia, South Carolina.
Gary Shivers, CEO of Navitas Lease, reports everything is up and running "except California. Which should be soon. Dwight is doing a great job."
Shivers applied for a California Lenders License over nine months ago, and was told at one point, they were six months behind. The division is doing audits, as well as "knee deep" in complaints, but the main fact is most of California State Departments are short-handed and have had budget cuts, too.
Dwight Galloway sent from his BlackBerry, "RLC Funding, a Division of Navitas Lease Corp. has been funding for brokers nationwide for a month. However, waiting final licensing, we are not yet originating as a lender in CA. Business is brisk with most of our long time sources already sending apps and some new brokers starting as well."
Responses to Working with a Smaller Bank Question
"I know I've asked you before, but the investors I worked with ten years ago like the leasing business and asked me if there were any opportunities to make $$$ in leasing today. I told them I'm not smart enough to know the answer, or to really speculate, and that I would ask you. It seems to me, fundamentally, that in addition to sound business practices, it is absolutely imperative to make sure you have take-out sources for fundings that you do. My former CFO thinks there is a real opportunity for originating deals with locals’ customers, and then selling those deals and a relationship intro. to local banks or local bank branches."
"What do you think?"
"Capital Technology & Leasing has for the past 13 years and continues to this date to use local banks to fund local lease credits. We have had good success with this model. We do millions each year with local lenders. Through this entire down economy we have had only two defaults. With the repossession and disposal of the assets we were able to limit the banks losses to a very small amount. Our leases are mostly shorter terms (24 -36 months) on technology equipment. The equipment generally has a good resale market...which limits exposure."
“That has always been my working model. I work with about 30 different banks all of them Community Banks. It is forever changing loan demand changes, officers move from bank to bank, rates change etc. We have been very successful with our program for almost 25 years. We bill and collect for all of our banks stripping out the sales tax and remitting it to the state. Almost 70% of the leases we write are FMV (mainly so that if default happens we can recover the equipment for the banks) as these are all non-recourse assignment of lease and are full payout to the banks.
“We usually insist that our lawyers work any defaults because bank attorneys do not typically do leases but only secured transactions. We seldom loose and always recover our equipment sometimes we do not get the money in addition to the equipment. We only sell credits to banks in their local area most of whom they are acquainted with.
“The designation of OneWorld as the preferred provider for Leasing for all ICBA banks has been a big lift to our business model and has helped to add banks outside of our normal trade area. I have been working with all of the NAELB members to place and transactions in our area of operation. As a matter of note, a NAELB member and I shared in a $48,000 residual on a five year lease just last month (we also make a nice fee up front).”
"I believe the community bank community can be a key in helping our industry out of its current slump.
"There is significant opportunity in this space and this concept is that which resulted in the founding of Blue Bridge Financial 2 years ago. As a former small bank CFO, I personally experienced the challenges or managing a number of smaller bank balance sheets and the related pressure that regulators are placing on asset diversification and strong loan portfolio oversight. This has created a need by smaller banks to diversify their balance sheets which have become overly real-estate reliant. When we founded Blue Bridge, community banks (defined as those with under $1B of assets) had real estate concentrations of over 50% of their total assets, while larger banks (over $1B in total assets) had under 30% real estate concentrations. Similarly, the profitability of the larger institutions has historically been significantly greater than that of the community banks. It is obvious that the regulators will force community bank asset diversification, which is good from a risk-management perspective. The challenge to these community banks is expertise in entering this specialized area of lending.
"This is where Blue Bridge saw a significant void. The equipment lending/leasing business is highly fragmented, as you are aware and many banks have been burned by trying to enter this space in a haphazard manner, which provides a challenge for those of us still working with banks to overcome. Our approach is a partner-based approach. We provide full-scale outsource solutions to our bank clients. We work to provide a fully regulatory compliant solution for banks to essentially work with us as an equipment lending division, whereby we provide independent third party deal sourcing, underwriting, lien-perfection, servicing and collection functions to the bank. While this approach is certainly a more costly offering from an infrastructure perspective (regulatory compliance – including CIP, BSA/AML, OFAC, etc), it allows each bank to comfortably have a partner with vested interests in the performance of their portfolios as opposed to the originator or broker who provides one-off or other deal-flow type of product to them. Moreover, it provides them with a level of expertise not present within smaller banks as we have staffs that have managed every aspect of a bank’s operations, a leasing company’s operations, as well as a leasing company run within a bank. This allows us to provide regulatory process support and I am pleased to say that our platform has passed such regulatory scrutiny.
"We are the facilitators within this industry to spurring small business credit availability. The way we approach it is one where we see ourselves as facilitators to bridge the gap between credit-worthy small businesses who may not best know how to package themselves in a manner where they can secure credit from a bank, and a bank which struggles in how to evaluate certain small businesses credit-worthiness in an efficient, cost-effective manner. "
"Fraud is significantly less prevalent in Canada , many banks and independent lease co's carefully scrutinize intermediaries such as my firm , with many not accepting broker business at all, or if they do, its a select invitation .Given the low spreads and higher risk and exposure on commercial credit lines its not a surprise the banks are gravitating to leasing .
"Having worked in lease finance for 30 years the fullness of time sees all the bad players exit the market ... in your own words 'leasing product is good if you know what you are doing ...'
"While many banks and other financial institutions have caution in lease finance credible, trustworthy intermediaries and lease firms always prevail ... unfortunately, as I said, it takes the fullness of time!"
Leasing Industry Help Wanted
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Bruce Block appointed senior vice president, municipal finance division business development officer, Sovereign Bank, Boston, Massachusetts. He previously was vice-president, Director Markets & Syndication (previously Koch Financial, where he held the same position (200-June, 2011). " While serving the public finance and tax-exempt leasing industry, Block has been involved in the financing of a wide range of assets, including emergency vehicles, buses, capital equipment, helicopters and aircraft, waste treatment plants, technology and energy performance contracts."
Nelson J. Chai, age 46, was named president CIT Group, New York, NY. Mr. Chai served as Executive Vice President and Chief Financial Officer of Merrill Lynch & Co., Inc. Before this, he was Executive Vice President and Chief Financial Officer of NYSE Euronext (NYSE: NYX) and its predecessor company NYSE Group, Inc., and was Chief Financial Officer of Archipelago Holdings. He is a board member of the U.S. Fund for UNICEF and Thermo Fisher Scientific Inc. He received a BA degree in Economics from the University of Pennsylvania and an MBA from Harvard University.
Robert "Bob" Cleator was named Vice President of Sales and Marketing, Chicago Freight Car Leasing, Rosemont, Illinois. Cleator will succeed Paul Deasy, who was recently named president of the company, a full service operating lessor of railcars to industrial, agricultural, and food products shippers and railroads. "He has had significant sales and marketing leadership experience obtained while working at two Class 1 railroads, Canadian National Railroad and Kansas City Southern Railroad. He mostly recently led the Midwest Sales Region for American Railcar Leasing LLC."
Michael J. Fox promoted to executive vice president, corporate banking, Univest, Souderton, Pennsylvania. He "…joined Univest in 2009 and most recently held the title of senior vice president and senior relationship manager. In his new role as executive vice president of corporate banking, he is responsible for sales management of the large corporate segment in addition to managing cash management and government services. Fox will report to Philip C. Jackson. Fox serves as supervisor for Montgomery Township and is a Eucharistic Minister at Mary, Mother of the Redeemer Parish. He has more than 20 years of experience in the financial services industry and currently resides in Montgomery Township."
William Henak was named President and Chief Operating Officer of TCF Financial Corporation, Wayzata, Minnesota. He joined TCF Equipment Finance in July, 2000 and previously was Executive Vice-President and Chief Operation Officer, serving prior from (1995-November,2000) as president and founder of First Commercial Capital Corporation (was sold to TCF Equipment Finance.) He attended Wartburg College (1977-1981)
Philip C. Jackson promoted to president, corporate banking, Univest, Souderton, Pennyslvania. "Jackson joined Univest in 2005 and most recently held the title of market president for Montgomery County and the Lehigh Valley. In his new position as president of corporate banking, he is responsible for leading a team of five executives responsible for sales and relationship management across business segments including large corporate, middle market, small corporate, cash management, government services and private banking. Jackson will report to K. Leon Moyer. Jackson serves as President of the Board for the State of Pennsylvania Area Council of the Boys and Girls Clubs, a board member of Lutheran Community at Telford and the Allentown Symphony and is a member of the National Area Council for the Boys and Girls Club of America and the Philadelphia Cricket Club. Jackson has 30 years of experience in the financial services industry and currently resides in Upper Gwynedd."
Mitch Larkin, age 63, was hired by Sentry Financial Corporation, Salt Lake City, Utah, as Senior Vice-President, Business Development. "He is responsible for new business development through a network of Independent Leasing and Finance Companies, Captive Finance Companies, Commercial Banks, Diversified Financial Services Companies, Brokers and Packagers, and Investment Banks strategically located throughout the United States & Canada with transactions ranging from $500,000 to $10 million."
He joined Bankers Capital, February, 2009. Previously he was with Madison Capital from 2006, and prior at Butler Capital for over five years, serving in the Lessor & Broker Financing Service Division. Prior he was at "... Tilden Financial, ICON Capital Corp., LDI Financial Services and several other companies over his 40-year career. A resident of Pikesville, Maryland, and Larkin is a 1970 graduate of Husson College in Bangor, ME. Larkin will maintain a remote office location in Maryland."
Scott Schafer promoted to director, portfolio management, Key Equipment Finance, Superior, Colorado. He joined Key Equipment Finance in 2007. Previously, he spent 17 years at Ford Motor Credit Company in positions of increasing responsibility, including branch asset manager. The University of South Dakota (1985-1990).
Vince Narez was named Managing Member, Foundation Specialty Financing Fund, LLC. After graduating college (San Jose State University, BA, Economic,, 1973-1977) I spent some time with Crocker Bank. In 1979 I left the bank to join Riviera Finance, an accounts receivable factoring company, based in Southern California. I spent 15 years with Riviera Finance until I joined Concord Growth Corporation in1995. Concord Growth Corporation was purchased by Bay View Bank in March 1997. In June 2002, I led a group of investors in the purchase of factoring assets from Bay View Bank and formed Bay View Funding, an accounts receivable factoring company. In October 2007, we sold Bay View Funding to Capital Corp of the West. Bay View Funding is a wholly-owned sub, where I serve as President. In April 2009 we bought the company back from Capital Corp of the West. I expect to stay in the commercial finance industry until I retire!"
Leasing News: Fernando’s View
As a new school semester draws closer, movie-goers are getting ready to hit the books and equip themselves with studying material. To help movie buffs ease you back into the scholastic groove, we’ve compiled a list of some of the most entertaining school-themed films, all easily available at Netflix.
Goodbye, Mr. Chips (Sam Wood, 1939): Though it sometimes gets lost in the shuffle of MGM gold released in 1939, this sensitive, decade-spanning portrait of a teacher's life deserves to remember just as much as those other juggernauts. The excellent, underrated British actor Robert Donat won a Best Actor Oscar for his rich, subtle performance in the title role of Mr. Chips, who looks back at his many years at a boarding school, from a shy, inexperienced instructor to an aged, revered headmaster. Over the course of the film we witness his dedication to his students as well as his relationship with his beloved wife (Greer Garson). Clearly the inspiration for such special-professor films as "Dead Poets Society" and "Mr. Holland's Opus," this classic hasn't lost any of its tender charm.
To Sir with Love (James Clavell, 1967): Virtually a remake of "Goodbye, Mr. Chips" for the late 1960s, this beloved drama survives with its own charm intact due greatly to Sidney Poitier's presence in the main role. Poitier stars as Mark Thackeray, an idealist who changes careers from engineering to teaching at an East End London high school populated mainly by tough slum kids. Facing hostility from his new students, Mark nevertheless pushes forward with dignity and curiosity, and finds a way to win their trust and learn about their conditions. In an ironic role given his earlier performance as a rebellious kid in "The Blackboard Jungle," Poitier anchors an engaging and poignant tale of people of different ages discovering their purposes through education and experience. Extra points for Lulu's memorable title song.
Back to School (Alan Metter, 1986): A veteran of years of nightclub stand-up comedy, Rodney Dangerfield at last became popular in this enjoyable box-office hit about, well… going back to school. Dangerfield plays Thornton Melon, a middle-aged and fun-loving millionaire whose encourages his son Jason (Keith Gordon) about pursuing higher education by volunteering to go back to college and take classes by his side. The millionaire’s extroverted personality quickly finds a soft spot among the university’s students, but also puts him at odds with more traditional faculty members who will do anything to flunk him. Providing both an ideal fit for Dangerfield’s comic persona and a showcase to supporting players like Sally Kellerman and Robert Downey Jr., this is the perfect movie to check out for laughs before heading back to the campus.
The School of Rock (Richard Linklater, 2003): Best known as a humane, versatile indie director (“Slacker,” “Dazed and Confused”), Richard Linklater scores with this energetic comedy, which gives Jack Black his best role to date. The story follows Dewey (Black), a wannabe rock star whose career goes nowhere until he takes a job as a substitute teacher at a private school. Facing a classroom of fourth graders, Dewey uses his musical skills to blend in with the other teachers and in the process discovers a group of potentially gifted young musicians. Can he successfully teach the students how to play rock in time for the Battle of the Bands contest while dodging the suspicious glances of the school principal (Joan Cusack)? A joyous crowd-pleaser, this comedy can be enjoyed by pupils and professors alike.
Easy A (Will Gluck, 2010): Nathaniel Hawthorne's classic novel "The Scarlet Letter" gets a breezy update in this lightly enjoyable comedy set in the world of high-school beauties, nerds and jocks. Olive (Emma Stone, from "Superbad") is a dedicated student whose conventional attitudes leave her virtually invisible with the cool crowd in her Southern California high-school. It’s not until a rumor about her libidinous abandon starts being circulated in the halls that she’s noticed and, like Hawthorne's Hester Prynne, is metaphorically branded with a bad-girl mark. Unlike her literary counterpart, however, the sharp Olive figures out a way to use her new infamy for her own benefit. Directed by Will Gluck with an eye for fast wisecracks and the comic talents of the vibrant Stone, the film is a sweet and tart surprise.
San Rafael, California-- Adopt-a-Dog
Her Adoption Fee of $250. includes current Rabies, DHLPP and Bordatella vaccinations AND Microchip. Ginger's Adoption Fee of $250. includes Spay, Current Rabies, DHLPP, Bordatella vaccinations
AND MICROCHIP! APPLICATION
To meet or apply for any of our dogs, click here to go to our Adopter Profile application. ADOPTION PENDING! Very friendly with bigger dogs than herself. She thinks 'laps' are nice to sit on, too!
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1508 - Ponce de Leon arrived in Puerto Rico. Spain had appointed him to colonize Puerto Rico. He explored Puerto Rico and Spanish ships under his command began to capture Bahamanian Tainos to work as slaves on Hispaniola. His settlement at Caparra, 2 miles south of San Juan Bay, was plagued by Taino Indians and cannibalistic Carib Indians.
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