Wednesday, January 18th, 2006
Headlines--- Technical Note ######## surrounding the article denotes it is a "press release"
Technical Note: Readers may have noticed our new format at the beginning of the year, plus our technical problems with "sends this page to a friend." At this time, both the archives articles and "top stories" have the ability to send the article to another party with a comment. The entire full current edition has always been able to be sent to another, but not individual stories. We have finally been able correct the process and have readers send "some" current articles with the "send to a friend" feature. We may be able to have that working for all the current articles as was our original goal, but due to the technicalities of having an archive page, our mail addition going to it, and top stories, the procedure worked in proto-type, but not in reality, until we recently solved the www "script" problem. Editor ---------------------------------------------------------------Classified Ads---Credit Atlanta, GA. Boston Ma. Corona, CA. Fort Lee NJ Irvine, CA , Los Angeles, CA New Jersey, NJ New York, NY. Sausalito, Ca Orange, CA. Senior Credit Officer For a full listing of all "job wanted" ads, please go to: http://216.66.242.252/AL/LeasingNews/JobPostings.htm To place a free "job wanted" ad, please go to: http://216.66.242.252/AL/LeasingNews/PostingForm.asp http://www.thesciencebookstore.com/printmain.asp?cat=Photographs+-+Panoramic+City+Views More on Bugsy: ---------------------------------------------------------------
EFG Leasing Closed? by Christopher Menkin For over a year and a half brokers and vendors have been asking and telling Leasing News that EFG Leasing, also known as the Equipment Leasing Group, in Fresno, California, with Kenneth Wheeler, as president, is closed. On October 26, 2004, the telephone did not answer. Leasing News later found out a new temporary number: "559-226-4776 ext #29 "New numbers until the T1 line is completed by SBC. We are not able to keep our 888 number and have changed our headings on the UAEL, ELA and Monitor Daily sites. We will be going to 800 numbers first of the week it should be done. "Give me a call in the morning if you like to talk. I will be in after 9:45am. "EFG Leasing Inc. Kenneth Wheeler" Since last Friday, January 13 th , the main number 888-808-3065 has answered "disconnected." The "4776" number above also did not work, nor the telephone number 800-648-6950 on a press release from EFG. The main number is noted in the Equipment Leasing Association, as EFG was a member in 2005. While the web site states EFG is a member of the United Association of Equipment Leasing, the company nor individuals are listed as members. This EFG web site has Donald Coleman President same telephone number, address, and second suite, empty at last visit 559-226-4776 ext #29 http://www.leasingnews.org/Pages/EFG_Srvc_team.htm They attracted brokers with very low rates, plus this claim: *Application Only to $150,000* http://www.leasingnews.org/Pages/Rate_updates_efg.htm Leasing News printed the story from the Fresno Bee, Fresno, California newspaper, and Kenneth Wheeler subsequent response: http://www.leasingnews.org/Conscious-Top%20Stories/EFG_Rumors5.htm http://www.leasingnews.org/Conscious-Top%20Stories/EFG_Rumors4.htm Here are recent complaints, in which we were able to contribute information, technique, and practical experience with the leasing company in question. (without a signed "complaint," copies of documents signed, and copy of check or bank transfer, Leasing Here are brokers who recently contacted Leasing News (we are withholding their names as we have not been able to determine if EFG Leasing is still in business. In the last story, they had incorporated in Nevada and perhaps may have moved to this state, as The Funding Tree previously did. ".Thanks! for the info. I will keep you in the loop as things progress. I did a deal with them in January 05 for $80,000 which they funded, and in the last month I started shooting some deals over and they approved a lot of them, but also declined a few, which is puzzling, because if they were going to scam you, you would think that they would approve everyone and take as much money upfront as possible. "I also saw their rating in the (magazine) in **** of this year, so I suspected nothing. I started to get nervous in the last 2 weeks, when I continuously call and send e-mails, and you don't hear from anyone for 3 or 4 days, and then you still don't get the answers you want or indication of what is needed to close the deals. That's when I decided to do a search on your site and what I found freaked me out." Another one: "I have brokered a transaction to ****** and for the last two weeks they have not answered their phones and any email reply is cryptic at best-they have not funded either. My customer sent signed docs and checks to them 2 weeks ago. Have you heard anything negative? I thought if anyone would know you would? At this point I am very concerned because you of all people know that this is a service business and service starts with answering the phones. I would appreciate any info." A third: "In reading your email, we were extremely discouraged to find out that a funding source can hold onto an advanced rental check for over 4k for over 3 months, without returning calls, and get away with it- simply because we, the broker, felt obligated to fund this elsewhere. I'm not sure how this should have been handled any differently; we do know what the documents state, but when we have 4 vendors calling every day for payment and the funding source is not returning calls, what were we supposed to do? "I have contacted the customer, and he is prepared to write a letter of complaint as long as he remains anonymous, but at this point - will this even help? Or is this a lost cause since we funded this deal elsewhere. Please advise." (The agreement had no time frame, and also called for specific documentation, plus it had a clause if the party went elsewhere, they lost their deposit.) And a fourth one: "Thanks for your reply, and we understand where you are coming from, However, ****** never answers your questions, he always recites his problems, and will not address the true subject. "I am sorry that we were not reading your stories until recently However, if it has been going on that long there must be some truth to these complaints. "We would have been more concerned. we will be complaining to what ever agency we can to stop this out and out Scam. excuse me "Alleged Scam" "I say it looks like an alleged RICO case to me. "Thanks again, you will be hearing more from us as we go after this lot." Ironically, the last several communications are that this leasing company is out of business. We have informed the reporter for the Fresno Bee, who is on the scene, to up-date his first story on EFG Leasing. Here is a collection of our previous stories: http://www.leasingnews.org/Conscious-Top%20Stories/EFG_Rumors.htm Brokers, if you have a "tough" deal, one that you know is going to be "difficult" to do, consult the "Story Credit List:" http://www.leasingnews.org/Story_Credit/Story_Credit.htm--------------------------------------------------------------- Popular Loses another NorVergence Legal Round
There are an estimated 300 NorVergence leases in contention totaling $9 million dollars in the state of Missouri cases. "In the Circuit Court of St. Louis County, Popular Leasing (or Popular Fleecing as one of my clients called it) filed a motion to enforce language in the Equipment Rental Agreements that purported to waive the defendants' right to a trial by jury. "We had a hearing on the issue in front of a 3-judge panel of the court. The panel ruled in the defendants' favor. The order states, "[t]he court finds the jury waiver clause at issue in the Equipment Rental Agreement is inconspicuously burning in small type on the back of the pre-printed form Equipment Rental Agreement at the end of a lengthy paragraph entitled "APPLICABABLE LAW." "The sentence is not set apart from the rest of the paragraph, nor is it in all capital letters as are several other provisions of the Leases." The court further agreed with our argument about the personal guarantors and concluded "that those defendants who signed a guaranty agreement did not contractually agree to a waiver of their right to jury trial because there is no statement in the Guaranty Agreement with respect to a jury waiver." "Unless Popular Leasing somehow gets the court to reconsider the ruling, it looks like Popular Leasing will soon be bogged down with numerous jury trials in which it will not look very sympathetic." Ronald J. Eisenberg, Esq. Schultz & Little L.L.P. Case citation: Popular Leasing USA, Inc., v. Harry Major Machine & Tool Co, et al., Master Cause No. 04CC-3753A. Order signed December 19, 2005. "On Tuesday, December 13, Deloitte and Touche in collaboration with the St. Louis RCGA and St. Louis Commerce Magazine recognized Popular Leasing as a "Greater St. Louis Top 50 Business" Shaping Our Future at an awards ceremony, in the Grand Ballroom of the Hyatt Regency - St. Louis Union Station." http://www.popularleasingusa.com/Default.aspx### Press Release ########################### CLEARLINK'R' Capital Corporation and ICON Capital Corp. Announce Agreement MISSISSAUGA, Ontario------CLEARLINK Capital Corporation (CLEARLINK) (TSX:CNK), a financial services provider and equipment trading organization based in Mississauga, Ontario, Canada, and ICON Capital Corp. (ICON Capital), an equipment leasing and financing company based in New York City, have signed a definitive agreement whereby CLEARLINK will sell and ICON Capital will acquire CLEARLINK's leasing business. Under the terms of the agreement, which has been approved by each company's Board of Directors, ICON Capital will acquire CLEARLINK's leasing business and portfolio, and assume the obligations related thereto. The consideration to be paid in the transaction is approximately $52.6 million in cash and the assumption of certain liabilities, which amount will be adjusted at closing for interim activities. The transaction is subject to customary closing conditions, which include regulatory approvals and approval by CLEARLINK's shareholders. It is anticipated that the closing will occur prior to March 31, 2006. Fraser R. Berrill, President and Chief Executive Officer of CLEARLINK, stated "I am very pleased to announce this transaction with ICON Capital. Our decision to sell the leasing business to ICON Capital is the culmination of an ongoing strategic review process. After several years of declining activities in the leasing business, the Board determined that it was preferable to sell this business to ICON Capital rather than incur the resource commitment, time investment and uncertainty of a successful turnaround. ICON Capital, which has the experience and resources to achieve the long-term potential of this business, will continue to provide the level of service our customers have come to expect from CLEARLINK and offer the employees in our leasing business the opportunity to continue with the business that they have been dedicated to for many years." Beau Clarke, Chairman and Chief Executive Officer of ICON Capital, added that "ICON is excited about the opportunity to acquire CLEARLINK's leasing business and portfolio and is delighted to welcome CLEARLINK's employees into the ICON family. Together in the newly combined company, we believe that we will continue to provide superior service to our customers while building on the solid foundation already created by both CLEARLINK's and ICON's employees and continue to achieve future success both in Canada and the United States." CLEARLINK will continue to manage a small number of leases excluded from the transaction, but will not be writing new lease business. It will continue to maintain its existing trading business, which is not included in the transaction, and explore avenues to grow that business. CLEARLINK will also focus on resolving its remaining litigation matters. After closing, CLEARLINK will continue to invest its excess cash while exploring opportunities in new financial services or shareholder value initiatives. A proxy circular will be mailed to CLEARLINK's shareholders shortly for a meeting of CLEARLINK's shareholders expected to be held in February 2006. At that meeting, CLEARLINK's shareholders will be asked to approve the transaction and to approve a change to CLEARLINK's name. About CLEARLINK CLEARLINK Capital Corporation is an innovative financial services provider and equipment trading organization. Based in Mississauga, Ontario, CLEARLINK operates throughout North America and Europe. About ICON Capital ICON Capital Corp. is one of the largest independent equipment leasing and financing companies in the United States, with headquarters in New York City and offices in San Francisco and Boston. CLEARLINK(R) is a registered trademark of CLEARLINK Capital Corporation. CLEARLINK Capital Corporation (TSX:CNK) CLEARLINK Capital Corporation Robert Wright Senior Vice President and CFO (905) 855-2500 or Toll Free: 1 (800) 433-5553 Fax: (905) 855-2725 rwright@clearlink.com www.clearlink.com OR ICON Capital Corp. Thomas W. Martin Executive Vice President and CFO (212) 418-4700 Fax: (212) 418-4739 tmartin@iconcapital.com www.iconcapital.com### Press Release ###########################
Top Stories-January 9-13
These are the top ten stories most "opened" by readers last week. (1) Yes, Quinn is Gone from Main Street Bank (2) Correction---Photo of Judy MacNeal (3 ) Memorial Fund for Bob Henney's two daughters (4) Memorial Fund for Bob's two daughters (5) Cartoon---Stress Meeting (6 ) Pictures from the Past---1993 (7) Fraud and Business Practices Dominate Legal Committee Meeting (8) Review of 2005 and Forecast for 2006--by Ron Caruso (9) Sales make it Happen: Listening - Back To Basics (10) New CLP Officers and Board to Meet Challenges in 2006 -------------------------------------------------------------- Classified Ads---Help Wanted Equipment Finance & Leasing Representative
Funding Manager
Sales Person
Sales Professionals / Sales Manager / Credit Analyst
--------------------------------------------------------------- The next edition of "Sales Makes it Happen," the writer of the series will be announced. It is true he is a "retired leasing president," but the fact is he now makes his living traveling all over the United States advises top executives of all industries about improving their sales division. He is completing a web site about what he has learned in talking to other executives, and Leasing News readers will be getting a preview. Next week we will reveal his name and background.
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Still an Imperfect Business by Michael J. Fleming, CAE President, Equipment Leasing Association ELTnews So much has been written over the past several years regarding how imperfections have been diminished in the marketplace and limited our opportunities. Some of this reduction of imperfection is attributed to growing transparency. We may be accepting the observation as dogma. But is it true? What is an imperfection? It is a mismatch which creates an opportunity for one party offering a transaction or a product to another party that manages the imperfection for value. The first question we should ask is what imperfections have been diminished. *Tax arbitration - rates are lower. The value of tax incentives such as deferral mechanisms are worth less. ITC is long gone and is not on the horizon as tax reform initiatives are primarily in terms of a broader, flatter and simpler system. We could add to this list, but the point is made. There may be fewer imperfection based opportunities. But look again. Imperfections come is three types - rules based, market structure based and value based. Remember, imperfections are mismatches to be managed. Several of the above imperfections are rules based and there reduction does change things. But market structure imperfections always are emerging as issues such as consolidation, concentrations, liquidity, corporate cultures, changing strategies and product attributes occur. A customer may be knowledgeable, consider alternatives and still value what you can provide better than any alternative. That is how we manage the value imperfection. The customer has an itch that needs a scratch. You have the scratch that manages the imperfection - that is what the customer cares about. Both parties understand this "imperfection" and how an action can solve it. Win - win! We have to work to identify these value imperfections. We will always have an imperfect market if we focus on the value imperfections. Growth based on imperfections is still available, but the nature of the imperfections and how we think about them needs to change. Equipment Leasing Association, Mike Fleming---------------------------------------------------------------
Alexa Ranks Leasing Media Web Sites
David G. Mayer's Business Leasing 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 News has its own individual web site, it will be included in the Alexa survey. These comparisons are compiled by Leasing News using Alexa and should be viewed as a "sampling," rather than an actual count from the website itself. Other than as noted above, we believe the ratings are reflective as most have stayed in the same position, basically, for over a year. The Alexa tool bar works on most browsers. You may download their free tool bar A graph and analysis of the last three months are available. ( Note: the lower the number, the higher you are on the list. It is based on all web sites. Leasing is only a very small part of the various sites such as Yahoo, MSN, Google, etc. ) ---------------------------------------------------------------Basel II Will Spur Real Estate, Corporate Loan Securitizations aBSnet With the introduction of Basel II at the end of the year, analysts are predicting a greater number of commercial mortgage securitizations and concentrated corporate loans deals. Jocelyn Lynch, a v.p. global trust services at Bank of New York, said she believes that overall issuance will be stable but different kinds of assets will be securitized as banks adjust to the new requirements. "There won't necessarily be a fall in issuance, rather a shift in the kinds of asset classes being securitized," she said. Basel II will revise the international standards for measuring the adequacy of a bank's capital and provide a consistent framework for the way banks approach risk management. "[Commercial mortgage and corporate loans] attract a higher risk rating so it will be beneficial to securitize them," said Ron Thompson, head of ABS research, structured finance at Royal Bank of Scotland. Additionally, small-to-medium enterprise loan securitizations, which are often unrated, are expected to rise. Very often SME loans are not secured by real estate and so attract a higher risk rate, he added. ---------------------------------------------------------------
### Press Release ########################### U.S. Bancorp Reports Record 2005 Net Income
U.S. Bancorp Chairman and Chief Executive Officer Jerry A. Grundhofer said, "Our 2005 results demonstrated our ability to execute and deliver on our promise to produce high-quality earnings and industry leading returns, while maintaining credit quality and investing in distribution and scale to provide future growth opportunities for the Company. We achieved record earnings of $4.5 billion in 2005. This represented $2.42 per diluted share, an 11.0 percent increase over our 2004 results. This is the fourth consecutive year that we have exceeded our long-term goal of 10 percent earnings per share growth. We also improved upon our industry leading performance metrics and posted return on assets of 2.21 percent and return on average equity of 22.5 percent for the year. In addition, excluding securities gains and losses and the valuation of our mortgage servicing rights, we grew revenue faster than expense in 2005, thus creating positive operating leverage - a fundamental objective of this Company. Our management team is dedicated to maintaining superior operating efficiency. This year was no exception, as we obtained a tangible efficiency ratio for the year of 40.8 percent. Further, in late 2003 our Company made a commitment to return 80 percent of earnings to our shareholders in the form of dividends and share buybacks. In 2005 we returned 90 percent of earnings to our shareholders, and since we originally made that commitment, we have returned 98 percent of our earnings to shareholders. We expect to continue to return 80 plus percent in 2006. "I am extremely proud of the improvements we have made in the Company's overall risk profile. Our net charge-offs were 51 basis points of average loans in 2005, a continued improvement compared with prior years. Nonperforming assets at December 31, 2005, were $592 million, a 21 percent decrease from the balance at December 31, 2004. The steps we have taken to reduce the Company's risk profile will enable us to minimize the impact of future changes in the economy. "We have continued to invest in our Company. The acquisitions we have made in our fee-based businesses over the past few years have allowed us to achieve our earnings objectives, while maintaining high returns, despite the pressure on the net interest margin. We will continue to invest in fee-based businesses, strengthening our presence and product offerings for the benefit of our entire customer base. "Going forward, we will continue to capitalize on our balanced mix of products and services, our great franchise and our ability to provide continuously improved customer service in order to produce high quality results for the benefit of our customers, communities and shareholders. "Finally, I would like to thank all of our employees. We could not have accomplished our goals this year without their many contributions and dedication to our Company." Full press release with financial data at: http://phx.corporate-ir.net/phoenix.zhtml?c=117565&p=irol-newsArticle&ID=804603&highlight =### Press Release ########################### AmSouth Reports Earnings for Fourth Quarter and 2005; ( Credit quality remained strong despite the effects of a single commercial credit, which was previously provided for, that was charged off in the quarter. Net charge-offs were 0.44 percent of average net loans in the fourth quarter, increasing 25 basis points compared with the third quarter of 2005. Without the effect of the single commercial credit, net charge-offs would have been 0.24 percent, a 5 basis point increase. The ratio of loan loss reserves to total loans was 1.02 percent at December 31, 2005. ( Total nonperforming assets at December 31, 2005, were $122.9 million, or 0.34 percent of loans net of unearned income, foreclosed properties and repossessions, compared to $98.1 million, or 0.29 percent, in the previous quarter. The increase is due to leases to commercial airlines suffering well-publicized financial difficulties. Loans past due over 90 days were $86.1 million at the end of the quarter, reflecting an increase related to the effects of Hurricane Katrina. ) BIRMINGHAM, Ala.------AmSouth Bancorporation (NYSE:ASO) reported earnings for the fourth quarter ended Dec. 31, 2005, of $.52 per diluted share, compared to $.49 per diluted share reported for the fourth quarter of 2004. Net income for the fourth quarter of 2005 was $182.1 million versus $176.9 million for the same period in 2004. AmSouth's fourth quarter performance resulted in a return on average equity of 20.4 percent, a return on average assets of 1.40 percent, and an efficiency ratio of 51.7 percent. "AmSouth finished 2005 with record earnings for the year, highlighted by strong loan growth, solid deposit growth, and an expanding net interest margin in the fourth quarter," said Dowd Ritter, AmSouth's chairman, president and chief executive officer. "We intend to carry that strong momentum into this new year as we accelerate our expansion efforts in our fast-growing Florida markets." For the year, reported earnings were a record $725.7 million or $2.04 per diluted share, compared with $623.5 million or $1.74 per diluted share in 2004. Results for 2004 included charges related to a previously announced regulatory settlement. Excluding those expenses, earnings would have been $675.9 million or $1.89 per diluted share in 2004, resulting in earnings per share growth of 7.9 percent in 2005 (see Reconciliation of GAAP Amounts to Adjusted Amounts in the attached financial tables). Return on equity for 2005 was 20.4 percent, return on assets was 1.43 percent, and the efficiency ratio was 52.0 percent. Full press release at: http://www.amsouth.com/irrc/### Press Release ########################### Western Alliance Reports Net Income of $28.1 Million Western Alliance Bancorporation reported of net income of $28.1 million for 2005, up 39.9 percent from $20.1 million for 2004. Diluted earnings per share were $1.24, compared to $1.09 for 2004. For the fourth quarter 2005, net income was $8.4 million, up 31.3 percent from $6.4 million for the fourth quarter 2004. Earnings per share were $0.34 for the fourth quarter 2005 compared to $0.33 for the same period in 2004. We closed our initial public offering of 4.2 million shares on July 6, 2005, which increased our average shares outstanding in 2005 and resulted in net proceeds of $85.1 million. Loans grew $176 million to $1.79 billion at Dec. 31, 2005 from Sept. 30, 2005 and $605 million from Dec. 31, 2004. Deposits grew $46 million to $2.39 billion from Sept. 30, 2005 and $638 million from Dec. 31, 2004. Robert Sarver, chairman and chief executive officer, said, "2005 was an outstanding year for Western Alliance Bancorporation. Our team achieved all of our objectives for the year by organically growing our loans and deposits each over $600 million, hiring 28 experienced relationship managers, opening three new offices, reporting record earnings, and finally, completing our initial public offering on the New York Stock Exchange. Sarver continued, "We started 2006 with the announcement of our merger with Intermountain First Bancorp, and earlier today announced our merger with Bank of Nevada. These transactions will substantially strengthen our position in Clark County and establish our presence in Reno. Additionally, we are on track to open eight new offices throughout our territory this year and expect to hire another 20 experienced relationship managers from other financial institutions. These actions should enable us to continue our exceptional growth and performance trend." Full press release here: http://www.snl.com/Cache/2061856.PDF?T=&IID=1025038&CachePath=%5c%5cdmzdoc2%5cwebcache%24%5c&FID=2061856&D=&O=PDF&Y = ### Press Release ########################### Western Alliance Bancorporation and Bank of Nevada Announce Merger Agreement LAS VEGAS-----Western Alliance Bancorporation (NYSE:WAL) and Bank of Nevada announced today that they have signed a definitive agreement pursuant to which Bank of Nevada will merge with and into BankWest of Nevada, the lead subsidiary of Western Alliance. Privately held Bank of Nevada had deposits of $254 million, loans of $213 million, and regulatory capital of $25 million at Sept. 30, 2005. BankWest of Nevada reported deposits of approximately $1.6 billion, loans of $1.0 billion, and regulatory capital of $140 million at the same date. Under the terms of the agreement, Bank of Nevada shareholders will receive approximately $80.19 in cash for each share of Bank of Nevada common stock. The transaction is valued at approximately $74 million and is expected to be immediately accretive to Western Alliance's earnings per share, without regard to potential cost savings. Robert Sarver, chairman and chief executive officer of Western Alliance, said, "This merger complements our franchise in southern Nevada and takes us into rapidly growing Mesquite. Coupled with our previously announced merger with Intermountain First Bancorp and Nevada First Bank, this transaction will dramatically expand our presence in the fastest-growing state in the nation. After the mergers have been completed, BankWest of Nevada will be renamed Bank of Nevada in recognition of its burgeoning statewide presence. Sarver continued, "Using cash for this transaction, as well as for a portion of the Intermountain First merger, will fully utilize the excess capital Western Alliance acquired in its initial public offering. As these transactions close, we look forward to driving up our return on tangible equity and earnings per share as we continue our exceptional growth." "We're delighted to be able to expand our distribution system to Nevadans for financial services so quickly," said Larry Woodrum, president and chief executive officer of BankWest of Nevada. "Including the offices we presently have under construction, we should end 2006 with more than triple the five offices we had when it began." John Gaynor, president and chief executive officer of Bank of Nevada, commented, "This merger is a great opportunity for our employees and customers. Our staff will have many more career opportunities, and our customers will have access to more products and services and a larger lending capacity -- all without even changing our name." About Western Alliance Bancorporation Western Alliance Bancorporation is the parent company of BankWest of Nevada, Alliance Bank of Arizona, Torrey Pines Bank, Miller/Russell & Associates, and Premier Trust. These dynamic companies provide a broad array of banking, leasing, trust, investment, and mortgage services to clients in Nevada, Arizona and California. Staffed with experienced financial professionals, these organizations deliver a broader product array and larger credit capacity than community banks, yet are empowered to be more responsive to customers' needs than larger institutions. Additional investor information can be accessed on the Investor Relations page of the company's Web site, www.westernalliancebancorp.com.### Press Release ########################### First Oak Brook Bancshares, Inc. Announces Full Year and Fourth Quarter 2005 EarningsFIRST OAK BROOK BANCSHARES, INC., (NASDAQ:FOBB) announced net income for 2005 of $16.633 million, down from $19.072 million for 2004. Diluted earnings per share were $1.67 in 2005 compared to $1.91 in 2004, down 13%. Earnings in 2005 resulted in a return on average shareholders' equity (ROE) of 12.46% and a return on average assets (ROA) of .78%. Richard M. Rieser, Jr., Company CEO said, "We are heartened by our progress on a number of key initiatives undertaken in 2005, especially in the face of the Federal Reserve's continued gradual hiking of short-term interest rates, the flattened yield curve where short-term rates rose to roughly approximate longer-term rates, and fierce competition for deposits and loans among banks in the Chicago market. "Despite these challenges, the Company proved itself a prodigious deposit gatherer, a consistent corporate strength. We ended the year 2005 with deposits up 10%, or $169 million, rising to $1.884 billion from $1.715 billion in 2004. Checking, money market accounts and $100,000 and under CDs all rose, while savings accounts and jumbo CDs declined. In short, our core deposits grew smartly in 2005. We don't rely on any brokered CDs for our funding. "We attribute our success as deposit gatherers to two long-pursued strategies: First, we continue to lead and innovate in the Treasury Management industry, which helps us attract and retain lower-cost commercial checking deposits. To illustrate our leading edge capabilities, this year we introduced Remote Capture, a way our clients can convert their receivables from checks to images on their own premises and then to transmit this electronic data remotely to us for collection. "Second, we continued in 2005 to expand our branch network. In 2005, we opened a record four offices, bringing our total to 21. In March 2005, we opened our 18th office in Darien, which at year-end held over $61 million in deposits. In October 2005, we opened 3 additional offices -- in Glencoe, Northbrook and Wheaton -- which at year-end had attracted $88.3 million in new deposits. "In the cases of our new Glencoe and Northbrook offices (combined deposits of $71.7 million at year-end), we introduced a new refinement to our market-driven approach. We branded these two new branches, serving super-affluent communities on Chicago's North Shore, as Chicago Private Bank (CPB). CPB is headed by experienced private bankers and offers exclusive services such as a doorman and concierge who make 'house calls' in our Mini-Cooper concierge cars. The CPB model has been so well-received that we're expanding it, having at the end of 2005 put a private banker in our downtown Chicago office at Dearborn and Huron Streets. "It is not, however, in our deposit liabilities, but in our investment and loan assets where we continue to face our severest tests. Over the course of 2005, we grew our loan portfolio $240.6 million, or 22%, to $1.312 billion from $1.072 billion at the end of 2004. Loan growth was spread over all four major components of our portfolio. Commercial real estate and construction grew $78 million, or 24%. Commercial and Industrial (C&I) loans grew $42.4 million, or 28%. Residential mortgage and home equities grew $28.1 million, or 11%. And consumer loans, including indirect auto, Harley Davidson motorcycles, and other consumer loans, climbed $92 million, or 27%. "Unfortunately, balance sheet loan growth alone does not tell the whole story. Our $334 million indirect auto portfolio yielded 4.11% for the fourth quarter of 2005 -- below today's marginal cost of funds. Within the indirect auto portfolio there is a significant portion of 'A' paper written in 2003 and 2004 at about 3.5%. While this segment is high quality and turns relatively fast (average life is 31 months), it will take us awhile to boost the overall portfolio yield. In December 2005, our average new auto originations yielded 5.49%, and we project for the year 2006 an average auto portfolio yield of 4.68%, depending on new indirect loan volume. The $71 million Harley Davidson motorcycle portfolio yielded 5.46% for the fourth quarter of 2005. "Similarly, a closer look at C&I loan volume reflects strong growth in our leasing and syndicated loans, but relatively flat outstandings within our small business and middle-market loan sector. We are focusing significant management effort and financial resources on building up our small business and middle-market C&I loan origination capabilities. Late in the year, we brought in Bill McGowan as an Executive VP to address this challenge. Previously, Bill was a senior lender in the Fifth/Third and Old Kent organizations and, prior to that, served as a division head in commercial lending at American National Bank. Bill is working hard to recruit additional senior lenders to augment our commercial loan origination platform. "Historically and continuing in 2005, the Company has been under-loaned. At the beginning of 2005, Oak Brook Bank had a loan to deposit ratio of 63%. By year-end 2005, we increased this ratio to 70%. Nonetheless, we trail peers who average 89% and sometimes more. The result is that the Company has, in relation to peers, an oversized investment portfolio. While in 2005 we shrunk our investment portfolio by $48.4 million, we still have approximately $364 million of excess lower yielding investments when compared to our peers. We see a very profitable opportunity over the next several years in redeploying investment dollars into better yielding loans or, failing that, into higher yielding investments. With projected cash flows from investments totaling approximately $253.7 million over the next two years and our much anticipated growth in commercial lending capability, we are hopeful we can realize an improved loan to deposit ratio. "We want to emphasize that, in fulfilling our loan growth goals, we do not expect to compromise credit quality. High credit quality has always been a hallmark of our conservative culture. Evidencing this, at year-end 2005 non-performing assets (NPAs) from all sources dropped to just $900,000 from $10.2 million a year ago. The largest portion of this reduction in NPAs resulted from our sell-out of the 60 W. Erie condos. Net charge-offs in 2005 dropped to just $94,000 from $323,000 in 2004. "During 2005, we continued to produce healthy fee revenues. Investment Management & Trust fees climbed 17% to $3.054 million. Merchant credit card fees rose 34% to $8.016 million from $5.978 million. And gains on mortgages sold increased 292% to $949,000 from $242,000 -- largely due to our "Guaranteed Best Rate" (GBR) program introduced in March 2005. Under GBR, we offer to meet or beat the best mortgage or home equity line rates in Chicago, or pay $300. In addition, we offer low fixed closing costs (plus title and taxes) to take the surprises away at the closing table. For the first time we used broadcast TV to promote this program, in addition to our usual radio, newspaper, and direct mail media. "Over 2005, the Company strengthened and deepened its management team and refined its organizational structure. Our Wealth Advisory Group, headed by Senior EVP Tom Sawyer, expanded beyond Investment Management and Trust to include Chicago Private Bank in Glencoe and Northbrook. Chicago Private Bank brought on board 3 seasoned private bankers -- Scott Landau as President (Scott was formerly Senior VP in Wealth Management at LaSalle), and two Managing Directors. "Our Retail Group, under Senior EVP Darin Campbell's fine leadership, deepened its executive ranks in all areas, but particularly on the Retail Branch side where we named VPs for Sales, Products, and Operations and Compliance. "On the Commercial side, we promoted two Senior VPs to co-head Commercial Banking and introduced a mentoring program where seasoned and less experienced commercial bankers are teamed up. In C&I Lending, EVP Bill McGowan joined the Bank and is providing clarity of direction and focus in building up our commercial lending platform. We reorganized our Credit Administration and Closing Divisions for better support. "In our Real Estate Group, headed by Senior EVP Larry Silberman, we streamlined our organization, creating two efficient departments out of three. Operating even more efficiently, we doubled commercial real estate and construction loan originations, built from scratch two new owned branches in Darien and Wheaton, built out two leased facilities in Glencoe and Northbrook, and sold our remaining condo inventory at 60 W. Erie. "Our Finance and Administrative Group, under Senior EVP and CFO Rose Bouman, operated very smoothly, notwithstanding the heavy burden of Sarbanes-Oxley compliance and the additional workload generated by our continued growth. Notable hires include an experienced head of Compliance and a skilled Director of Education to manage both internal training and to serve as Dean of Chicago Private Bank (CPB) University, our financial and business continuing education program for clients and friends of CPB. "This management team did an admirable job charting our course throughout 2005. With this even stronger and deeper leadership, we are confident their talent and dedication will provide the sort of ongoing guidance and inspiration so necessary when margins are under pressure." full Press Release with financials available here: http://www.snl.com/irweblinkx/file.aspx?IID=100277&FID=2062296### Press Release ########################### CIT Declares Dividends for Fourth Quarter 2005 Common Dividend Increased to $.20 Per Share NEW YORK, -- CIT Group Inc. (NYSE: CIT), a leading provider of consumer and commercial finance solutions, today announced that its Board of Directors has declared a regular quarterly cash dividend of $.20 per share on its outstanding common stock, a 25% increase over last quarter's dividend of $.16 per share. The common stock dividend is payable on February 15, 2006 to shareholders of record on February 28, 2006. CIT also announced that its Board of Directors has declared quarterly cash dividends of $0.3968750 per share on the Company's Series A preferred stock and $1.2972500 per share on the Company's Series B preferred stock. The common stock dividend is payable on February 28, 2006 to shareholders of record on February 15, 2006. About CIT: CIT Group Inc. (NYSE: CIT), a leading commercial and consumer finance company, provides clients with financing and leasing products and advisory services. Founded in 1908, CIT has over $60 billion in assets under management and possesses the financial resources, industry expertise and product knowledge to serve the needs of clients across approximately 30 industries worldwide. CIT, a Fortune 500 company and a component of the S&P 500 Index, holds leading positions in vendor financing, factoring, equipment and transportation financing, Small Business Administration loans, and asset-based lending. With its Global Headquarters in New York City, CIT has approximately 6,000 employees in locations throughout North America, Europe, Latin and South America, and the Pacific Rim. For more information, visit http://www.cit.com .### Press Release ########################### American Stock Exchange Lists Common Stock of MicroFinancial Incorporated NEW YORK, -- The American Stock Exchange(R) (Amex(R)) today listed common shares of MicroFinancial, Incorporated, under the trading symbol "MFI." Based in Woburn, Massachusetts, MicroFinancial Inc. is a financial intermediary specializing in leasing and financing for products in the $500 to $15,000 range. The company has been in operation since 1986, and was previously listed on the New York Stock Exchange under the same trading symbol. "We are pleased to welcome MicroFinancial Inc. to the American Stock Exchange," said Senior Vice President Amex Equities Group John McGonegal John McGonegal. "The Amex looks forward to supporting MicroFinancial as it seeks to convey its value proposition to a greater number of investors." The specialist in MFI will be Kellogg Capital Group. For more information on MicroFinancial, or any Amex-listed company, please visit http://www.amex.com. The American Stock Exchange(R) (Amex(R)) is the only primary exchange that offers trading across a full range of equities, options and exchange traded funds (ETFs), including structured products and HOLDRS(SM). In addition to its role as a national equities market, the Amex is the pioneer of the ETF, responsible for bringing the first domestic product to market in 1993. Leading the industry in ETF listings, the Amex lists 150 ETFs to date. The Amex is also one of the largest options exchanges in the U.S., trading options on broad-based and sector indexes as well as domestic and foreign stocks. For more information, please visit http://www.amex.com SOURCE American Stock Exchange### Press Release ########################### The Alta Group Focuses on Strategic Growth Tony Mynsted, formerly of IBM Global Financing, to assist expansion LAKE TAHOE, NV, - The Alta Group, a leading consultancy serving the global equipment leasing and finance industry, investment professionals, manufacturers, banks and government organizations, today announced the appointment of Anthony J. (Tony) Mynsted as an associate.
Anthony J. (Tony) Mynsted In this position, Mynsted is responsible for promoting a broad range of Alta products and services, and building new client relationships for the firm in North America. Among these services is Alta Learners' Track, a new online training program for equipment leasing and finance company personnel. "Tony's extensive sales success with manufacturers and leasing programs over the years will be of enormous help in strategically growing Alta business in the right directions," said John Deane, Alta Group managing principal. "His work will allow our principals and other associates to focus on what they do best - using our global experience and creativity to improve the competitiveness and operational efficiency of our clients." Prior to joining The Alta Group, Mynsted worked at IBM for more than 40 years. He sold IBM products and solutions for 28 years, then helped develop and execute the Business Partner leasing program for IBM Global Financing (IGF) for 12 years. He was the World Wide IGF Client Executive for Avnet, IBM's largest customer, for the past six years. Mynsted is based in Lawrence, Kansas. About The Alta Group The Alta Group is a global consultancy serving equipment leasing and finance companies, investment professionals, manufacturers, banks and government organizations. Established in 1992, the company provides a broad array of strategic consulting and advisory services, education and training programs, merger and acquisition, dispute resolution and operations review services that improve the competitiveness and operational efficiency of customers across the world. The Alta Group has built a reputation on its industry experience, international expertise, creative thinking, trust and professionalism. It supports clients in North America, Latin America, Europe and the Middle East, as well as Greater China and Asia Pacific. For more information, please visit www.thealtagroup.com.### Press Release ###########################
News Briefs--- News Briefs---- Buffett Issues warning Over Trade Bankruptcies Cut Into Profit at Two Lenders Selling stampede shuts down TSE Venture capitalists predict top 2006 tech trends Intel misses sales target Yahoo falls 12% after missing forecasts San Diego House resales take a tumble in December 43% of first-time home buyers put no money down SEC Seeks More Disclosure on Execs' Pay Tyco to Split into three Gold mines regain their glitter Cingular goes after firms selling call records Chicago Smokers inhale as ban dawns A Stolen Love Is Found, 37 Years Down the Road ---------------------------------------------------------------
You May Have Missed The Cronkite Doctrine http://www.washingtonpost.com/wp-dyn/content/article/2006/01/15/AR2006011501112.html ---------------------------------------------------------------
Sports Briefs---- Quarterback wear beards Patience with coaches key to making playoffs-Ira Miller Turner accepts 49ers coordinator gig Mangini accepts offer to become new Jets coach With Colts Gone, the Broncos Shed Their Anonymity ----------------------------------------------------------------
"Gimme that Wine" Making Wine in a Hostile Climate on Sonoma's Coast-Eric Asimov Wine sales up 10.3% through Christmas Johnny Depp reveals favorite wine Third Wines of Chile Awards Cohn festival dates set If you want to know if you got a value for your wine, or what the wine price is today, go to www.winezap.com Type in the vintage (year) and name of the producer with wine type or geographic area, such as 1995 Chateau Lynch Bages Pauillac. Even 1995 Lynch Bages will work, or 1999 Viader ----------------------------------------------------------------
Calendar Events This Day Thesaurus Day Metric System Day ----------------------------------------------------------------
Today's Top Event in History 1782- Birthday of Daniel Webster, American statesman and orator who said, on Apr 6, 1830, "The people's government, made for the people, made by the people, and answerable to the people." Born at Salisbury, NH; died at Marshfield, MA, Oct 24, 1852. ----------------------------------------------------------------
This Day in American History 1770- the Sons of Liberty in New York City attacked British soldiers. They were called this because the group of American civilians attached 40 to 50 armed soldiers because they had cut down the liberty poles that the Americans had erected. The soldiers used their bayonets and dispersed them. No one was killed, but several persons on both sides were seriously injured. What was really a mob fight was termed the Battle of Golden Hill. Super Bowl Champions This Date 1976 Pittsburgh Steelers -------------------------------------------------------------
American Football Poem Born To Win R.G. Graham When you were in your crib tiny and small, Grandma and grandpa and mom and dad too, And now you're getting older probably past two, You're kind to your neighbors and all your friends too, So when you go to school and see children that are sad. |
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