Monday, January 24, 2011
Today's Equipment Leasing Headlines
Archives January 24, 2003—25 year Anniversary
Slide show: Jack LaLanne through the years
######## 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.
Archives January 24, 2003—25 year Anniversary
This was before the current Leasing News Bulletin Board Complaint
Bulletin Board Complaint--ACC Capital Corporation
The complaint was brought to the National Association of Equipment Leasing Brokers Complaint Procedure. Actions are not made public.
There have been other complaints regarding residuals and lease extensions, including law suits. The company exited the small ticket marketplace to concentrate on the middle-market place, they stated. Here is history on the first 25 years:
A Look Back On 25 Years at ACC Capital Corporation
Twenty-five years ago when I started this business in a 15` x 15` room with my first partner, Duffy Casey, I had no idea that the business would evolve to its current point. I had been working for IBM and wanted an alternative to the offer “Big Blue” had put on the table, that of a marketing manager’s job in Anchorage, Alaska. I knew a little bit about leasing because, at that time, everything we sold at IBM, at least initially, was through a lease. In addition, my partner, Duffy, had spent a couple of years in the steam-ship container leasing business for Gilbert Flex-Ivan. Back in those days when leasing was a growth industry, you really didn’t need to know much more than how to explain the rate factor to the customer and tell them that the lease payments were tax deductible.
My knowledge of the technical aspects of leasing grew under the tutelage of my mentor and business partner, Sudhir Amembal. As my knowledge grew, so grew the business. We entered into formal agreements with a number of small financial institutions to originate and manage their lease portfolios. Lease management for financial institutions continues today, as ACC services for a number of community banks.
In 1985 I began teaching what Sudhir called the “soft side” of lease education-the sales and marketing seminar for Amembal Halladay. 1985 was significant in another way in that I accepted a contract with Zion’s Bancorp to help them create a new leasing company, Zion’s Credit Corporation, and run the marketing for that leasing company (The entire staff of ACC, some 28 strong, moved over to Zion’s). Zion’s Credit Corporation managed ACC’s existing portfolio and I continued to have independent annual audits on the company. In 1989 I left Zion’s and realized a long-term goal of becoming an equity partner at Amembal Halladay.
Teaching and consulting on a full-time basis was exhilarating but the travel was a drag (50% including weekends). I sold back my interest in Amembal Halladay to Sudhir in 1992 and opened up ACC for business once again. My time at Amembal Halladay compounded the importance of using the technical aspects of accounting, finance and taxation in the leasing business to acquire new customers.
Over the years, I have been able to boil down complex concepts, such as lease vs. purchase, into very powerful sales tools that lease originators, with their customers, are able to use and appreciate. ACC has always been a friend of lease originators, with several formal alliance agreements in place that make a lease originator an ACC partner.
In 1995, Sudhir Amembal reciprocated by buying a minority interest in ACC. He was very eager to get “his hands dirty in leasing.” The practical experience that Sudhir gained in being a part of ACC has had enormous benefit to him in the classroom. In 2000, Sudhir left the business, moved to Mexico and is now teaching and consulting exclusively on an international basis.
ACC continues its traditions in utilizing the technical aspects of leasing to increase its business share. Marci Kimball-Slagle heads our intermediary group as Senior Vice-President. Congratulations to Marci are in order, as she was recently elected to the board of the United Association of Equipment Lessors and is on the Organizing Committee for the National Association of Equipment Lease Brokers annual meeting coming up this March. I continue to consult and teach sales training classes at various national association meetings. I am assisted by Kirstin Patterson, our Chief Operating Officer, and Todd Jensen, who serves as Chief Financial Officer and General Counsel.
ACC is here to serve the lease originator community. Our goal at ACC is to make money by helping lease originators and our lease-originating partners make money.
Wishing you all the very best and a prosperous 2003.
Loni L. Lowder
(These ads are “free” to those seeking employment
All “free” categories “job wanted” ads:
LEAF Commercial Credit Under Way
As predicted by Leasing News, the new company by the founder of LEAF Financial is underway; moving to the 14th floor, 2005 Market Street, Philadelphia setting up a web site, and it appears this will be the concentration. Resource Real Estate at 1845 Walnut Street, is now moving to 2005 Market, 15th floor.
As highlighted in the story of the relationship with Guggenheim, the announcement stated, "Senior management contributed capital to LCC in the form of all the shares of common stock they owned in LEAF Financial." This perhaps is the four who joined Crit DeMent from Fidelity: Nick Caperrelli, Dave English, and Miles Herman.
If the collective 10% number from the SEC filings is correct, it appears management will have 10% of the new company and Guggenheim will end up with 5%.
Reading the press release, the new group will have access to a revolving line from Guggenheim for an initial $50 million, and then up to $200 million in additional tranches, provided certain conditions are met, including the parent putting in $10 million more for preferred stock. Most of the $36 million equity number appears to be soft asset/share value from Leaf Financial, including the $10 million future commitment to acquire additional preferred shares, only $5.2 million was in real cash.
Resource TRS, the Company’s directly-owned taxable REIT subsidiaries (TRS), holds all the Company’s direct financing leases and notes. It is interesting as Resource America Inc. has always shown operating losses, so where the free and clear assets are located is a question not explored.
According to the web site, www.leafnow.com, "At LEAF we provide vendors with financing products and services designed to do one thing...accelerate their sales."
"It's not simply offering vendors a financing program...It's actually helping them achieve their goals by integrating financing into their selling tactics."
LCC-LEAF Transfer Agreement:
Leasing News story:
((Please Click on Bulletin Board to learn more information))
New Trends in Leasing
Many companies have abandoned or radically changed their broker program with the most recent US Bancorp, who has just eliminated a number of SIC codes for future leasing, according to request for sources for a number of them. It seems the drive has been to vendors with mini-captive lessor programs on private label contracts and higher “referral fees.”
The market for independent brokers is creating avenues from banks and young lessors to enter the marketplace, although the list is smaller. The list strictly after vendor business, and not direct or indirect through brokers, is getting much larger with many innovative programs. The trend is creating more captive lessors. And brokers being involved in setting up the captive lessor program as an employee devoting all their time exclusively to the leasing program.
Leasing Companies Out of Business
Companies with an * are no longer in business. The others are companies that were taking broker business, but announced that they no longer are accepting broker business. Many have also down-sized or are managing an existing portfolio.
More details are available in this list by company name:
Advantage Business Capital, Lake Oswego, Oregon
(Note: Should a company policy have changed, please contact email@example.com)
Funders looking for new Brokers:
"Broker/Lessor" looking for broker business:
NAELB Broker Exchange
Fifth-Third Bank Leasing Charge Offs
Fifth-Third Bank (NasdaqGS: FITB ), Cincinnati, Ohio last week posted fourth-quarter profit $270 million compared to its $160 million loss posted in the 2009 quarter. The bank said it will sell $1.7 billion in common shares and issue new debt to raise funds to buy back those 136,320 preferred shares, worth about $3.4 billion and pay back its TARP loan.
David A. Merrill, President, Fifth Third Leasing Company
David Merrill, head of the leasing division, also chairman of the Equipment Leasing and Finance Association, is one of the directors not responding to their leasing company policy requiring notification to the lessee about the initial end of the lease term, meaning Evergreen clause. Perhaps his company supports the ELFA policy of not making it mandatory to notify the lessee and invoke twelve more monthly payments.
Looking at the latest numbers from the FDIC, the bank wrote off $5.76 million in lease financing receivables September 30, 2010. Other information regarding lease income or its part of nonconforming loans was disclosed here.
To put this in perspective, other charges offs this period included $547 million in construction and land development, $580.7 million in loans secured by 1-4 family residential prosperities, $246 million in nonfarm nonresidential property, $332.9 million in commercial and industrial loans, $199.4 million in loans to individuals, $121.6 million in credit cards, for a total of $1.97 billion
In Fifth-Third Bank press release it was stated: “Net charge-offs were $956 million in the third quarter of 2010, or 495 bps of average loans on an annualized basis. Results included net losses of $510 million realized on the sale or transfer of loans to held-for-sale and $446 million, or 2.33 percent of average loans and leases, in the loan portfolio.”
December 31, 2010 FDIC filings were not posted at press time. It will be interesting to view the FIDC filing with the SEC filing as well as compare the last three years nonconforming loans and leases as well as charge offs.
According to the FIDC filing, Fifth-Third had $19 million in charge offs for lease financing receivables in 2008 and $28.76 million in 2009.
Charge offs in the same period were $1.97 billion, $2.58 billion which in 2009 included $815 million in construction and land development, $588.2 million in 1-4 family residential properties, $190.5 million secured by nonfarm nonresidential properties, $551.7 million in Commercial and industrial loans, $336.7 million in loans to individuals, $169.1 million in cared cards, so in proportion to lease financing receivables they do not make it as serious, but then the sales and income may also be disportionment.
There also is no indication about how much profit came from Evergreen leases.
Fifth-third Third Quarter 2010 Press Release:
Evergreen and the ELFA MFLI-25
Bank Beat---First Billion Dollar Plus Banking Failure 2011
The eight branches of United Western Bank, Denver, Colorado were closed with First-Citizens Bank & Trust Company, Raleigh, North Carolina, to assume all of the deposits. Formed January 1, 1960, the bank had 161 full time employees. It is the first billion dollar plus banking failure of 2011. Aggregate losses to shareholders are estimated to total around $735 million with a zero chance of recovery.
This was the seventh bank to fail in the United States and the first in Colorado since October 2, 2009, when Southern Colorado National Bank, Pueblo, failed. Despite promises of raising sufficient capital and backing from Goldman Sachs, among others, there simply were too many bad loans involving real estate investments with climbing noncurrent loans and large charge offs. Bank equity had dropped from $226.6 million 2008 to $188.3 million 2009 to $140 million September 30, 2010, while noncurrent loans grew in the same period from $45.9 million to $62.9 million to $72.6 million September 30, 2009. The bank lost $33.4 million 2009 and $69.3 million year-end 2009 from charge offs of $11.43 million in construction and land development, $3.5 million in nonfarm nonresidential property, $1 million in commercial and industrial loans, $664,000 1-4 family residential properties, and $343,000 in multifamily residentia properties.
2010 year-end filings have not been posted, but the trend is obvious.
The latest FDIC numbers showed a $52.5 million loss September 30, 2010 following charge offs of $20.8 million in construction and land development, $7.4 million in nonfarm nonresidential properties, 2.1 million 1-4 family residential properties, $2 million multifamily residential properties, and $605,000 in commercial and industrial loans. Tier 1 risk-based capital ratio: 6.84%.
As of September 30, 2010, United Western Bank had approximately $2.05 billion in total assets and $1.65 billion in total deposits.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $312.8 million.
Enterprise Banking Company, McDonough, Georgia, was closed Friday, and assets and deposits were not purchased. The FDIC created the Deposit Insurance National Bank of McDonough (DINB), which will remain open until January 28, 2011, to allow depositors access to their insured deposits and time to open accounts at other insured institutions. It was the 53rd bank to fail in George since the middle of 2008.
The bank was established October 25, 1925 and had 18 full time employees. It was originally Dorsey State Bank of Abbeville, but was purchased March, 2005 and moved to McDonough where it specialized in real estate loans brought to it by its directors. Located in Henry County, 35 miles south of Atlanta, it was reportedly one of the fastest growing counties in the country and the statistics show when the real estate bubble burst, the bank couldn't handle it. In fact, there were no buyers and the FDIC is in the process of dissolving all the assets and paying off the liabilities as noted above until January 28, 2011.
Net equity 2008 was $5.6 million and 2009 $5.3 million following a $5.4 million loss 2008 and $5.66 million loss 2009 primarily after $2.9 million charge off in construction and land development, $821,000 secured by nonfarm nonresidential properties, $274,000 1-4 family residential properties plus $11.1 in noncurrent loans. These noncurrent loans climbed to $20.4 million September 30, 2010 seeing the bank equity drop to $1.65 million after a $3.7 million loss following a $1.4 million charge off in construction and land development, $708,000 in 1-4 family residential properties, and $1.37 million in commercial and industrial loans. Tier 1 risk-based capital ratio: 1.96%.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $39.6 million.
As of September 30, 2010, Enterprise Banking Company had $100.9 million in total assets and $95.5 million in total deposits
The five branches of The Bank of Asheville, Asheville, North Carolina were closed with First Bank, Troy, North Carolina, to assume all of the deposits.
The town is perhaps best known for the Biltmore Estate, built by George Washington Vanderbilt III with 250 rooms. Over a million visit the historic US landmark each year. http://en.wikipedia.org/wiki/Biltmore_Estate
Founded December 1, 1997 the bank had 58 full time employees with four offices in Asheville and one in Candler. Bank equity in 2008 was $20.6 million and $19.5 million 2009 with $25 million in noncurrent loans and while it had made $825,000 profit the year before was showing a $33,000 loss following $1.1 charge offs in real estate, primarily construction and land development of $1.18 million and $995,000 in commercial and industrial loans.
September 29, 2010 found noncurrent loans at $30.4 million with bank equity dropping to $1.58 million from $20.6 million September 29, 2009. The bank had also lost $18.6 million following charge offs of $8.3 million in construction and land development, $4 million in commercial and industrial loans, $1 million in nonfarm nonresidential property, $342,000 in 1-4 family multiply properties, $194,000 in other loans and $109,000 in loans to individuals. Tier 1 risk-based capital ratio: 0.82%.
As of September 30, 2010, The Bank of Asheville had approximately $195.1 million in total assets and $188.3 million in total deposits. The FDIC and First Bank entered into a loss-share transaction on $166.3 million of The Bank of Asheville's assets.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $56.2 million.
News ABC 13 TV News on Closing:
The six branches of CommunitySouth Bank and Trust, Easley, South Carolina were closed Friday. To protect the depositors, the FDIC entered into a purchase and assumption agreement with CertusBank, National Association, Easley, South Carolina, a newly-chartered bank subsidiary of Blue Ridge Holdings, Inc., Charlotte, North Carolina, to assume all of the deposits of CommunitySouth Bank and Trust.
Milton H. Jones, Jr. is CEO and President of CertusBank (meaning "certain."). He was with BofA for 32 years. Other directors include the CEO of Hendrick Automotive Group, who retired in 2004 after 32 years with BofA. Walter L. Davis as chief credit officer, formerly Exec. VP of Wachovia direct retail credit. COO is Charles M. Williams, formerly in global and investment bank with BofA. Robert J. Brown, Chairman/CEO of management firm he established in 1960. Dr. Robert L. Wright, "40 years of experience in government, business management, and finance. J. Veronica with government and 20 years experience with Nations Bank (now BofA). Howard C. Bluver, Founder of JDS Financial Group, Port Washington, NY; he is also a member of the Board of Directors, and is Chairman of the Audit Committee, at Bank of Georgetown, Washington, D.C.
CommunitySouth formed January 18, 2005, had 87 full time employees with two offices in Easley, one each in Anderson, Greenville, Greer, Mauldin, and Spartanburg.
As of September 30, 2010, CommunitySouth Bank and Trust had approximately $440.6 million in total assets and $402.4 million in total deposits. The bank equity had dropped from $29.1 million 2008, $12.5 million 2009 to $5.99 million September 30, 2009. . The bank lost $2.6 million 2008 and $17.6 million 2009 following charges offs of $6.5 million in construction and land development, $2.58 million in nonfarm nonresidential property, $1.4 million in commercial and industrial loans, $1.4 million in 1-4 family residential properties, and $214,000 to individuals.
September 30, 2009 the bank had lost $8.4 million following charge offs of $4.5 million in construction and land development, $1 million in 1-4 family residential properties, $642,000 in commercial and industrial loans, 4348,000 in nonfarm nonresidential properties. Noncurrent loans September 2009 were $16.7 million and September 2010 $32.6 million. Tier 1 risk-based capital ratio: 2.18%
The FDIC and CertusBank, N.A. entered into a loss-share transaction on $211.3 million of CommunitySouth Bank and Trust's assets.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $46.3 million. Compared to other alternatives
Tracking Bank Failures Map:
List of Bank Failures:
Leasing Industry Help Wanted
Please see our Job Wanted section for possible new employees.
Top Stories --January 18---January 20
Here are the top ten stories opened by readers:
(1) U.S. Bancorp and Leasing Still Going in Opposite Directions
(2) Where was Lease Police When You Needed Them?
(3) Leasing 102 by Mr. Terry Winders, CLP
(4) Active in Leasing---Bank Beat
(5) Schwarzenegger says governorship cost him $200 million
(6) Casino No Show loses to E.A.R. BK Trustee $471,250
(7) Mazuma Announces Resignation of Director Mike Lee
(8) ELFA Small Ticket Council on Evergreen Clauses
(9) Evergreen and the ELFA MFLI-25
(10) The Eight States Running Out of Homebuyers
Mr. Terry Winders, CLP, has been a teacher, consultant, expert witness for the leasing industry for thirty years and can be reached at firstname.lastname@example.org or 502-327-8666.
He invites your questions and queries.
(This ad is a “trade” for the writing of this column. Opinions
Saluting Leasing News Advisor Rosanne Wilson
The Leasing News Advisory Board does not participate in editorial decisions, meaning reviewing or choosing stories or subjects. Their role is to participate with policy and business advice as well as contribute in discussions on matters brought up by the publisher in a private internal blog.
A long time friend and supporter of Leasing News, Rosanne Wilson, CLP, B.P.B., is the newest member of Leasing News Advisory Board as of 2010.
Rosanne most recently completed 5 years serving on the Board of Directors of the National Association of Equipment Leasing Brokers (NAELB); one year as a Director and four years as Treasurer.
Rosanne has been a Certified Lease Professional for 12 years, serving the last two years on the CLP foundation Board of Directors. She is also a “Best Practices Broker”, a Master Member of the NAELB, and an accredited member of the Better Business Bureau for 20 years. She currently serves on the NAELB Membership Committee, the Screening Committee and the newly formed Funder Task Force. In addition, she is a 22 year member of the Beaverton Chamber of Commerce and is listed in the Who’s Who of Business Leaders.
Rosanne has been active in the equipment leasing industry since 1985. Rosanne founded 1st Independent leasing, Inc. in 1990 and is currently celebrating her 22nd year in business. Previously, she spent 12 years with TransAmerica Financial Services and was the Branch Manager of the Portland, Oregon office.
She is married and has 2 children and 4 grandchildren. Her hobbies include travel with her husband, spending time with her family and 3 cats, and gardening.
Rosanne Wilson, CLP
Breed: Australian Cattle Dog Mix
Rescue Group: Colorado Puppy Rescue
THIS PUPPY WILL BE AVAILABLE AT OUR NEXT ADOPTION EVENT: Monday, January 24th from 6pm - 8pm.
At the Petco located at I-25 and Colorado Blvd. For a map http://www.petco.com/content/locator/Details.aspx?storeId=1497&Nav=2
BREED CHARACTERISTICS: (Breeds are our best guess)
ADOPTION FEE: This puppy is available for a $150 adoption fee and a $50 spay and neuter deposit. Cash, Visa and MasterCard accepted. We do not accept checks.
ABOUT ADOPTING FROM CPR: Our puppies are only available at our adoption events. CPR does not reserve or take requests. Due to our limited foster homes, we cannot hold puppies for anyone nor can we board puppies after being adopted. Because of the overwhelming demands on our foster homes, all adoptions must be done on a first-come, first-served basis. The first good, properly qualified prospective home will be able to adopt the puppy. A personal visit to our adoption event is required. We do not ship out of state.
Rescue Group: Colorado Puppy Rescue
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Slide show: Jack LaLanne, passes away at 96, through the years
Packers Head to Super Bowl
Cutler's NFL contemporaries go after him on Twitter
Don't question Cutler's toughness
Steelers go old school, ground up Jets in AFC title game
Brash Jets Hit Familiar Wall in Pittsburgh
Welcome to Cowboys Stadium, Steelers and Packers!
(Leasing News provides this ad as a trade for investigations
Growing Grapes as Part of a Real-Life Script
Napa Valley's Lodges at Calistoga Ranch Report 2010 Sales Success
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US/International Wine Events
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This Day in American History
1639 - Representatives from three Connecticut towns banded together to write the Fundamental Orders, the first constitution in the New World
Super Bowl Champions this Date
1982 San Francisco 49ers
During his 16 years as an NFL quarterback, Joe Montana won four Super Bowls and the respect of fans everywhere. His legendary tenure with the San Francisco 49ers through the 1980s will be remembered as one of the most dominating periods in professional sports. And unlike many of the great quarterbacks, Montana posted both the numbers and the big wins necessary to cement his place in the Hall of Fame. With coauthor Richard Weiner, Montana relates his special knowledge of the game in Joe Montana's Art and Magic of Quarterbacking , a treasury of instruction, anecdotes, and inside-the-huddle information that should earn the cheers of football fans and players everywhere.
In addition to instructional chapters on ball-handling, offensive and defensive formations, pass patterns, and conditioning, Montana also covers the more advanced aspects of playing quarterback, such as reading defenses and calling audibles. With examples right out of the 49er playbook, he dissects contemporary offenses and defenses, emphasizing his points with well-known plays and situations from his own storied career, including postseason classics such as "The Catch" and "The Drive." A winning combination of color action shots and chalkboard-style diagrams--plus memorable sidebar quotes from coaches and players--makes Joe Montana's Art and Magic of Quarterbacking an attractive and informative addition to the pigskin bookshelf. A foreword by John Madden ("I'll say it without any disclaimer. Joe Montana is the greatest quarterback who ever played the game.") and a brief concluding history of the game serve as bonus bookends.
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