Monday, January 10, 2011
Today's Equipment Leasing Headlines
Bulletin Board Complaint--ACC Capital Corporation
You May Have Missed---
######## surrounding the article denotes it is a “press release”
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.
Bulletin Board Complaint--ACC Capital Corporation
This complaint concerns a residual not paid by ACC Capital Corporation, Midvale, Utah. Leasing News requested a statement from ACC Capital and received this from Loni Lowder, President:
"One time situation, no comment."
The following was sent to ACC Capital as received from Genesis Commercial Capital:
"I am writing you this letter in hopes that you might be able to intervene in a dispute between Genesis Commercial Capital, LLC and ACC Capital Corporation. Your significant influence has helped us achieve amicable resolutions in the past, and we think we were wronged by ACC in this situation.
"Genesis sourced, negotiated, and brokered a deal through ACC for back in 2005. Genesis and our representatives were responsible for closing and negotiating the terms of the contract with the lessee in full. Genesis and ACC agreed to a broker referral fee that was well below the norm on a deal of this nature and size in lieu of a residual sharing split of 40/60. The deal was negotiated directly by our President, Greg Rieke and their President, Loni Lowder.
"Approximately 90 days before the lease was set to mature I contacted Carrie Button at ACC (July 2010) to find out if they wanted us to collect the residual directly and remit funds to them or if they wanted to collect it on their end and remit finds back to Genesis,. She informed me that they would prefer to handle the negotiations directly and assured me that once the lease matured, ACC would have a negotiated residual in place and would forward us funds once they were remitted to ACC. We showed the lease maturing 11-01-2010 and when I spoke to her she told me that was a mistake and it should be 1-01-11. I contacted Carrie again this week to discuss the outcome of the residual negotiations and was referred to CEO Loni Lowder. Mr. Lowder advised me that nothing would be remitted to us as a result of him owing money to outside creditors. Since we have an outstanding relationship with the lessee we were able to reach out to them and discovered that the residual collected by ACC was for roughly $120,000, of which 40% is due to Genesis. We also learned this was collected back in November 2010 which was contradictory to what Carrie had told us the maturity date was.
"We have a document (1) signed by both parties that outlines the residual sharing in this case and Mr. Lowder has basically told me too bad, 'Genesis is not getting anything.' I was hoping you could help in this situation and at a minimum at least notify your readers of what kind of company ACC is. They regularly solicit broker business only to –defraud their brokers out of monies earned. The public needs to be aware of this situation and this company and needs to steer clear from sending them business. Signed agreements seem to mean nothing to Mr. Lowder and today’s day and age that is a sad scenario. I asked Mr. Lowder to reconsider his course of action and let him know that I felt what he was doing was wrong. He said 'things that are wrong happen all the time' and simply brushed me off. "
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ZRG Partners 4th Quarter Hiring Index Up 60%
The ZRG Leasing and Finance index posted a substantial 60% gain in new hiring opportunities for the fourth quarter and ended the year at a 457 level, the highest since October 2008.
While some of the larger firms in the index maintained steady hiring, the news this quarter is the broader based hiring trend across "other firms" outside of the top 10 volume players tracked in the index.
More companies are re-entering the market to hire new talent to achieve 2011 objectives. Hiring this quarter is not limited to just a few giants. Executive Search engagements during the first weeks of January also point to a marked increase in demand for hiring that is emerging in the industry.
While many employment openings in 2010 were operational, collections and risk focused, we are now seeing more "growth oriented" positions in the index in Q4, which points to further optimism for 2011.
The ZRG Hiring Index is in conflict with the Equipment Leasing and Finance Association MLFI-25 November figures and chart itself.
There is a difference between the ELFA and ZRG chart, as explained by Larry Hartman, Managing Partner:
Our index looks at “job opportunities” for future hiring while the ELFA looks at employee headcount. Our index is future looking and jobs today will result in headcount in 3-6 months while the ELFA is static and is looking at total employees/headcount in the rear view mirror.
"Additionally, many member firms in the MLFI 25 might be reducing headcount in some areas but hiring now in others. For example, CIT announced this week that 123 people will be losing jobs in the “Express loan SBA Division” while at the same time, CIT is hiring in the leasing division. In past years, both headcount and new hiring was down. Now, while headcount is still lagging, companies are once again looking to fill roles which will likely result in increased total headcount in 6-12 months."
The MLFI-25 numbers come from 31 members. The group has fluctuated over the years from 25, 26, 38, 30 and is now 31 (1). The companies have also changed due to merges or going out of business.
About the ZRG Partners and the Hiring Index
The index is published quarterly and is based on several key proprietary data sources. These data sources include hiring data that comes directly from benchmark firms that make up the Index as well as 20 different National Job Boards and several leasing industry specific job sites. The sample group includes banks, captives and independents. The next update will be in April 2011. www.zrgpartners.com
Full Report with contact numbers:
1- ADP Credit Corporation
Is GLR by Sudhir a “revolutionary milestone?”
You be the judge! Sign Up Now.
Sudhir Amembal's Global Leasing Resource (GLR) is to launch Tuesday, January 11th. Is it a milestone as Sudhir claims?---
“A revolutionary, comprehensive database of over 375 companies; almost equally divided between the United States and the rest of the world.”
GLR does not sponsor and is not responsible for listings as a leasing association would be or able to make a recommendation as they are best known to do. There also is no recourse as a leasing association offers regarding complaints about members listed, such as the National Association of Equipment Leasing Brokers is known for (ask Joe Bonanno’s question, “Is the funding a member of NAELB?”) It was one of the key elements in the formation of the association to do business only with those who belong because if there is a problem, the association can get involved.
The list does not include all banks, only those who pay, nor does it include without payment those seeking broker business, captive lessors, consultants, service provider; many of the categories who belong to leasing associations (see related story on leasing association membership.)
Leasing companies, including brokers, (and not others) who submit a completed listing by June 30, 2011 are entitled to a free single subscription to GLR through December 31, 2011. Otherwise a fee is required. The site will require a subscription in 2012.
In addition to leasing and specific equipment associations, news media, specialty industry directory publications (and there are many of them) perhaps the closet competition is from the World Leasing Book. It is a printed by Euromoney Yearbooks with “over 85 authoritative articles, 6,500 contracts from over 4,900 companies active in the sector “(compared to GLR at 375).
Pricing for the 2011 World Leasing Yearbook is $450
Leasing Companies NOT Listed with GLR the first year
“If a lessor but not listed with GLR you can subscribe for the charter price of US$150/year. This subscription is for multiple users of a single organization at a single physical location.” It will be higher in 2012.
If not a leasing company or broker:
“If your organization is any other entity, such as a service provider, vendor, or bank, you can subscribe for the charter price of US$295/year. This subscription is for multiple users of a single organization at a single physical location.
“For multiple users of a single organization at all physical locations, please contact Kelly Farnham at email@example.com information on obtaining an Enterprise Subscription.” http://www.globalleasingresource.com/subscriptions
ACCESS TO GLR
GLR is available as follows:
To learn more or make up your mind if this is a milestone, please go here to subscribe (free if leasing company or broker): http://www.globalleasingresource.com/
Previous story, more about GLR:
Leasing Industry Help Wanted
Please see our Job Wanted section for possible new employees.
Leasing Association Membership Count
While the year-end numbers are down, there are less leasing companies and associates who service them; however, in reality the numbers are UP from the first quarter of 2010. In making the comparison, while they appeared to lose members when compared to the end of the year, they actually grew from the low of 3/31/10, which should really be viewed from this mark than the mark at the end of the previous year.
The chart above should be viewed as positive and optimistic when comparing the first quarter of 2010 to year-end 2010, as looking to year-end 2011 not as good as year-end 2010:
(Dates are the beginning of the year and show the
While the year-end numbers are down, there are less leasing companies and associates who service them; however, in reality the numbers are UP from the first quarter of 2010.
In interpreting the comparison, while associations did lose members when compared to the end of the year, they actually grew from the low of 3/31/10. It will be interesting to learn the 3/31/11 compared to the first quarter of the last two years.
As reported in previous editions, the merger of the Eastern Association of Equipment Lessors and United Association of Equipment Leasing to create the National Equipment Finance Association happened just at the down turn, coupled with the personalities of the East and West Coast members. It appears Randy Haug and his board turned things around, and now especially with the hiring of well-known Gerry Egan, ironically past president of the NAELB, and a young, dynamic president and board, look for growth this year.
While the numbers are sometimes off one or two, the previous year numbers were all from the associations, and for some reason, appear to get "adjusted."
Here are the numbers provided by NEFA for year-end 2010:
"I see some real positive signs here already," NEFA Executive Director Gerry Egan said. "We have had a number of folks who have been out for a couple of years come back. I take that as a good sign for NEFA and for the industry and economy at large. We've also had some folks who hadn't been members of our group but are looking to make connections with some new broker/lessors. That's another real good sign up..."
The make-up of the association shows almost half are broker/lessors in the under $10 million a year range. There are 36 funding members, 17% with eight over $50 million a year, and 55 service providers or 26%, which would be attorneys, back office companies, software companies. Reflecting the market place there were more broker/lessor members joining than funding source.
It is interesting to note an association that only allows brokers to vote, meaning gives no voice to its funder members, has 78 funding sources (the end of 2009, they had 92 funding source members). Of course, many here, as well as perhaps with other associations, are not what Leasing News would consider as a true "funder," continuing recourse on over 50% of their transaction.
NAELB has powerful cash equity, although records show a poor financial year in 2010, but they have added new programs such as the brokers exchange and have new programs in the works, plus continue their education and meet the funder series, as well as offer discounts and savings on many services and products for their members.
While NAELB may have more members, it does not have the diversity or the products that are offered by ELFA and its large staff as reflected in their membership breakdown. They are the only leasing association with a full time “communications vice-president,” who handles and generates public relations, as well as several independent public relation firms to reach all news media as well as assist in publication of their magazine and other publications. They are the only association with a full time person who is responsible for both state and federal legislation, very active, seeming to travel all the time. A staff that serves the various active committees and sub-committees.
Perhaps as important is the mix of the membership which are quite different than the other leasing associations, as they include Captive Lessors (65), Law Firms (95), Software Providers (26) and a host of others, including the largest employers in the finance and leasing fields. At the same time, ELFA lists only 11 "broker/packagers."
AGLF works closely with ELFA in conferences and perhaps also in membership. It certainly is a specialty field and with all forms of government having financial difficulties, perhaps more are leasing, and unfortunately more are being turned down than in previous years.
This group is perhaps the most stable with its membership.
The CLP Foundation is another example of a comeback from the economic downturn. Chris Walker, CLP, and his board should be given credit for the turn around:
Arizona Equipment Leasing Association at one time has an estimated 25 members. No official count is available at this time. The group is active. They get together for social and business meetings during the year, even invite speakers.
The Equipment Financing and Leasing Foundation does not have members. It does have a board of directors as well as contributors but is not a “membership organization.” It is currently looking for an executive director. The person may come from the industry itself as Gerry Egan came to NEFA.
New Company: LEAF Commercial Capital?
Crit DeMent, Chairman, CEO, LEAF Financial Corporation
LEAF Financial, Philadelphia, Pennsylvania issued a press release with an announcement of $236 million of equity and debt capital to its "lease origination and servicing subsidiary, LEAF Commercial Capital."
Can this mean LEAF Financial can’t access lease funding anymore under its own business platform. Notice also that they are capitalizing the new company with non-cash subordinated debt.
"LCC is a joint venture among LEAF, Resource Capital Corporation and Guggenheim Securities. Resource Capital and Guggenheim committed to investing over $44 million of capital in the form of preferred stock and subordinated debt, respectively, into LCC."
Again the statements from Crit DeMent, chairman and CEO of LEAF Financial, mention a "long range business plan," but at the time it doesn't explain why the company is down to about 15 in staff in Collections and another 5 in Litigation within Jim Grant Collections and Litigation department; that’s about 1/3 of staff left, according to Leasing News sources.
DeMent says in the press release: "This increased capacity combined with LEAF's well established, programmatic access to the asset backed securitization market will allow us to continue to provide outstanding service to our many current equipment vendor partners and also to be able to take advantage of many new opportunities brought about by the recent dislocation in our industry. The increased ability to fund leases will also enhance the base from which LEAF continues to manage its partnership programs."
Questions remain, such as what is LEAF Financial going to be doing if Leaf Commercial (LCC) is doing the new lease originations and servicing? That's what Leaf Financial was doing. Certainly the addition of Guggenheim will add more oversight control over LEAF's business operations because they are going to be at risk. Does it also mean LEAF will become less competitive with higher money costs and more restrictive credit and operational policies?
Accessing funds through Leaf Commercial Capital is adding an extra layer of costs by bringing Guggenheim into the formula. On the surface this may look like Leaf is getting a breathe of fresh air, but with a higher costs of funds it and coming oversight, it may add not eliminate the difficulty to growing their already declining business model as evidenced by the employee layoffs that first began with the sales staff.
The facts remain that Bob Hunter, Executive Vice President of Sales & Marketing, on the Executive Board, is gone, Bill Conway laid off, Vice-President of Credit, Colleen White, Director of Operations laid off, and a host of others, as well as the 2009 SEC LEAF filings showed 377 employees; February down to 271; reportedly to 113 in July, closes down LEAF Specialty, 80 in Missouri, and with the latest cuts, what then is really the long range plan for LEAF Financial in Philadelphia. Will the spin off then be LEAF Commercial Credit as DeMent has done in the past.
Resource America Reports $8.6 million loss for Fiscal Yr. Ended:
(Leasing News provides this ad as a trade for investigations
Bank Beat---Florida, Florida, Florida
Florida becomes the first to report a bank failure in 2011.
The fourth largest populated state (13 million) Florida had 29 banks failures last year, the largest followed by Georgia with 21 (10th with 7 million), Illinois with 14 failures (6th with 11.7 million) California with 12 (1st with $31.4 million) and Washington with 11 (15 with 6 million)
The nine branches of First Commercial Bank of Florida, Orlando, Florida were closed with First Southern Bank, Boca Raton, Florida, to assume all of the deposits. Founded April 21, 1999, there were 87 full time employees with two branches in Orlando and a branch each at Deltona, Edgewood, Kissimmee, Lake Mary, Saint Cloud, Winter Garden, and Winter Park.
As of September 30, 2010, First Commercial Bank of Florida had approximately $598.5 million in total assets and $529.6 million in total deposits.
Net equity went from $48 million year-end 2008 to $40.2 million year-end 2009 to $12.1 million September 30, 2010.
Again it is land development and construction causing the financial problems. Perhaps the bank which was trying to raise capital and also talked about merging or opening a new branch should have been put out of their misery two years ago. The investors lost everything, and after looking at the statistics, it is easy to see why they had trouble raising sufficient capital to stay in business.
The bank lost $5,700 year-end 2008 after $17.5 million in charges offs, lost $13.5 million year-end 2009 with charge offs of $31.2 million ($16.3 million in construction and land development, $8.6 million secured by 1-5 family residential properties, $5.6 million in nonfarm nonresidential properties. $315,000 commercial and industrial loans, $302 in loans to individuals. September 30, 2010 noncurrent loans were $114,480 with the bank showing a loss of $27.88 million dollars following charge offs of $16.3 million ($10.1 million in nonfarm nonresidential property, $2.9 million in construction and land development, $1.3 million secured by 1-4 family residential properties, $1.7 million to commercial and industrial loans.
Tier 1 risk-based capital ratio: -2.13%
The FDIC and First Southern Bank entered into a loss-share transaction on $484.3 million of First Commercial Bank of Florida's assets.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $78.0 million.
The two branches of Legacy Bank, Scottsdale, Arizona were closed today by the Arizona Department of Financial Institutions, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Enterprise Bank & Trust, St. Louis, Missouri, to assume all of the deposits of Legacy Bank.
Founded January 3, 2005, the bank had 20 full time employees at its two branches in Scottsdale.
Again, it is land development and construction that is closing the banks in Arizona, and perhaps hurting all smaller and regional banks who are unable to raise sufficient capital to survive, and perhaps should not survive as they made poor credit risk decisions compared to those who are still in business.
Bank equity dropped from year-end 2008 to 2009, from $8.5 million to $7 million as it showed a loss of $7.2 million after charges offs $5.9 million in 2008 to a loss of $8.68 million after charges offs of $6.85 million year-end 2009 ($3.3 million in construction and land development, $2.95 million in commercial and industrial loans were the primary write-offs.)
Tier 1 risk-based capital ratio 2.73%
Bank equity had dropped to $3.3 million September 30, 2010 with $6.6 million in noncurrent loans, a loss of $3.5 million following $3.3 million in charge offs ($1.95 million in construction and land development, $1.12 million in commercial and industrial loans and $226,000 in loans secured by 1-4 family residential property.
As of September 30, 2010, Legacy Bank had approximately $150.6 million in total assets and $125.9 million in total deposits. Enterprise Bank & Trust will pay the FDIC a premium of 1.0 percent to assume all of the deposits of Legacy Bank. The FDIC and Enterprise Bank & Trust entered into a loss-share transaction on $119.8 million of Legacy Bank's assets. Enterprise Bank & Trust will share in the losses on the asset pools covered under the loss-share agreement.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $27.9 million.
Tracking Bank Failures Map:
List of Bank Failures:
((Please Click on Bulletin Board to learn more information))
Alexa Finance/Leasing Web Site Report
Alexa Ranks Leasing Media Web Sites
Alexa Ranks Leasing Media Web Sites
www.assetfinanceinternational.com has a new url address and is "too young" an address to rate. www.leasinglife.co.uk is a section of http://www.vrl-financial-news.com/ and the rating is not accurate as it gives the rating not of the leasing site specifically, but the entire financial site, and therefore is not in the count.
David G. Mayer's Business Leasing and Finance News is not included in the Alexa report list as it does not have its own individual site and Alexa finds Patton Boggs, LLP Attorneys at Law. The rating is not valid as it includes all those who visit and communicate with the law firm. When Business Leasing and Finance News has its own individual web site, it will be included in the Alexa survey.
*It should be noted that NAELB web site "list serve" requires logging onto their site, meaing their e-mails are counted as a visit to the site, whereas they are "list serve" communication. These are technically visits to the web site, but primarily to use "list serve."
The Alexa tool bar works on most browsers. They are partnered with Google.
You may download their free tool bar A graph and analysis of the last three months are available.
Top Stories --January 4--January 6
Here are the top ten stories opened by readers:
(1) Leasing 102 by Mr. Terry Winders, CLP
(2) Reaction to Curt Ritter 2010 Leasing Person of the Year
(3) Leasing Person of the Year for 2010: Curt Ritter
(4) Benchmark Financial Bulletin Board Complaint Update
(5) New Hires---Promotions
(6) Operation Lease Fleece---2011 Update
(Tie)(7) D.B. Harris Faces Prison for Filing False Tax Returns
(Tie)(7) Herm Roberts Passed Away
(8) AXIS Capital receives a majority equity investment
(9) Very Good News from NACM
(10) ELFA Continues Lack of Notice Drive: Evergreen Clauses
"Hi I’m Mickey. I am a 6 year old male corgi mix who came to the shelter on 12/8/10. I’m housebroken! I am very friendly and love to play ball! I am already neutered and ready for you take me home! My ID# is 170578."
Adopt-a-Pet by Leasing Co. State/City
Adopt a Pet
Philippines passes India in call-center jobs
Packers' unpredictable defense confuses Vick
S.F. Police chief new S.F. District Attorney
China to become biggest Bordeaux importer
Pacific Rim winery bought up by Banfi
Wine Spectator 2011 Wine Predictions
Wine Prices by vintage
US/International Wine Events
Leasing News Wine & Spirits Page
This Day in American History
1776- Thomas Paine published "Common Sense" The pamphlet, 50 pages, according to Chase, contained the first demand for independence for the American colonies, sold 100,000 copies the first three months and up to 500,000 before the year-end. No other book in the U.S. has had such a quick or large sale relative to population. The pamphlet was highly influential in swinging the tide of the popular opinion toward a clean break with the mother country. It is said the pamphlet influenced the authors of the Declaration of Independence who followed its objectives very closely.
American Football Poem
A champion is one who gets up when he can't.
Take pride in how far you have come; have faith in how far you can go.
Tough times don't last, tough people do.
If you think you are beaten, you are.
If you think you'll lose, you've lost.
If you think you're outclassed, you are
Life's battles don't always go,
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