Leasing News is a web site that posts information, news, and entertainment for the commercial leasing and finance industry. The News Edition is updated Monday, Wednesday and Friday.
Correction--- Another Misrepresentation from LEAF?
Ted Nuggett: Current State of Mortgage Lending
######## 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.
Correction--- Another Misrepresentation from LEAF?
This was corrected on line, and is a minor part of the story, but for the sake of accuracy the number at the Santa Ana, California Call Center was up-dated on line, and for those who missed it, here is the up-date:
“From following SEC filings where employee count is included; the numbers didn't jive. In the press release the 90 employees in Moberly, Missouri for the copier division were mentioned (SEC says less, but not worth quibbling as new hires may have been added) and according to a highly reliable source, there are seven sales personnel in the direct call center in Santa Ana, California, as well as other LEAF sales personnel tell us they work out of their residence in Southern California. But the 106 Philadelphia employees is another subject and the main theme of this article. The Leasing News count is 62.”
Friday’s Story Up-dated:
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Telephone call to Jeffrey Taylor in Hospital
(Long time leasing trainer, author, and former publisher of
Although I spoke to Jeffrey in ICU, it is not recommended that many call him at this time. He has had two heart operations and is having a third today, Monday, as they are working now on his arteries. He has had esophagus problems with the most serious being stage 4 lung cancer, which they can't work on until his heart is strong enough, and he is strong enough.
He told me he had sold his house, was just about to move into his new house, when he "fainted" and thought it was the cancer. It was not. It was his heart. He is in good shape, and mind is clear. Upon hearing the awful news about the cancer and other problems, he did not turn to drink, and has kept his sobriety and is very strong in keeping sober.
He keeps going back to ICU and then the heart care part of the hospital. He says it is kind of funny in the hospital, and he thinks he has a book about it, particularly with all the experts and seeming that no one is in charge. He says he has "excess coverage" on his health plan and considers himself very lucky as the bill he believes will be tremendous, especially with more to come.
His wife and children are very supportive. He considers himself a lucky man to be alive. He appreciates his friends support and is sorry he can't communicate with them on his laptop or talk to many on the telephone.
Previous Article: Jeffrey Taylor in Hospital
Bank Beat----Georgia Bank Failures Lead the Nation
Georgia leads the nation with 63 bank failures since August, 2008. The state accounts for almost 30% of all banking failures so far in 2011. The latest has lost $94.3 million in the last two years and bank equity had dropped to $9.58 million with a 1.21% tier 1 capital risk. Almost half their loans continued in the problem area. The cost to the FDIC Insurance fund: $273.5 million. The second Georgia bank failure of $156.5 million brings the total cost up to $430 million.
The 16 branches of Atlantic Southern Bank, Macon, Georgia were closed with CertusBank, National Association, Easley, South Carolina, acquired the banking operations, including all the deposits. Founded December 10, 2001, the full time employee count had gone from the previous year from 162 to 149 with four offices in Macon, two in Brunswick and one in Bonaire, Byron, Darien, Jacksonville, Lizella, Rincon, Roberta, Savannah, Valdosta, and Warner Robins.
Bank equity had dropped from $38.9 million year-end 2009 to $20.5 million year-end 2010 with non-current loans at $96.6 million, and as of March 31, 2011, net equity of $9.58 million. The bank had lost $58.5 million in 2009 after net charge offs of $33.3 million ($21.7 million in construction and land development, $3.99 million commercial and industrial loans, $2.2 million secured by multifamily residential properties, 2.28 million secured by multifamily residential properties, $2.2 million secured by nonfarm residential properties and had lost $17.7 million year-end 2010 with $13.7 million in charge offs ($9.2 million construction and land development, $1.6 million nonfarm residential, $1.3 million in 1-4 family residential properties, $930,000 in commercial and industrial loans, plus a number of other categories.)
March 31, 2011 the bank showed a $2.5 million loss (net equity was $9.58 million). Tier 1 risk -based capital ratio was 1.21%.
Atlantic Southern Bank had total assets of $741.9 million and total deposits of $707.6 million. The loss-share transaction for Atlantic Southern Bank was $585.1 million.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) for Atlantic Southern Bank will be $273.5 million.
First Georgia Banking Company, Franklin, Georgia was closed with CertusBank, National Association, Easley, South Carolina, acquired the banking operations, including all the deposits. Founded November 3, 2003, they had 158 employees at 15 branches, with two each in Carrolton, Columbus, Cornelia, Dalton and one in Bogart, Bremen, Franklin, Greensboro, Jefferson, and Villa Rica. As a result of these transactions, CertusBank(SM) expands its existing footprint outside of South Carolina, adding 25 locations in Georgia and one in Florida. Its assets now comprise $1.8 billion.
In January 2011, CertusBank(SM) acquired the assets of CommunitySouth Bank & Trust of Easley, SC through a similar transaction with the FDIC. Today CertusBank(SM) continues to operate all six former CommunitySouth branches under the CertusBank(SM) name in the Upstate of South Carolina.
"We're truly excited for CertusBank(SM) to extend its presence into Georgia and northeast Florida," said CertusBank(SM) Chairman, CEO and President Milton H. Jones, Jr., whose 30-plus-year banking career includes serving as Georgia market president for Bank of America. "The State of Georgia is strategic to our growth. Our footprint covers some of the most economically diverse and promising cities in the country, and we look forward to being an integral part of the communities we serve."
First Georgia Banking Company had total assets of $731.0 million and total deposits of $702.2 million. The loss-share transaction for First Georgia Banking Company was $452.1 million.
Bank equity had gone from $33.76 million in year-end 2009 to $17.6 million year-end 2010 Non-current loans were $48.6 million.
First Georgia Banking lost $36.6 million year-end 2009 and $15.47 million year-end 2011 with charge offs of $30.3 million year-end 2009 ($13.4 million construction and land development, $6.8 million 1-4 family residential ptoperty, $4.9 million nonfarm non residential property, $2.6 million commercial and industrial loans, $1.2 million multifamily residential and $14.7 million year-end 2010 ( $5.1 construction and land development, $.6 million 1-4 family residential property, $2.5 million secured by nonfarm nonresidential property, $516,000 multifamily residential property, $275,000 commercial and industrial, $369,000 loans to individuals, and $250,000 in "other loans."
March 31, 2011 the bank had lost $2.38 million and equity capital was at $5.78 million. Tier 1 risk-based capital ratio was 1.37%.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) for First Georgia Banking Company, $156.5 million
The three branches of Summit Bank, Burlington, Washington, were closed Friday by the Washington State 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 Columbia State Bank, Tacoma, Washington, to assume all of the deposits of Summit Bank.
Prior to the acquisition of Summit Bank, Columbia Banking System had 85 banking offices, including 60 branches in Washington State and 25 branches in Oregon. Columbia Bank does business under the Bank of Astoria name in Astoria, Warrenton, Seaside, Cannon Beach, Manzanita and Tillamook in Oregon
As of March 31, 2011, Summit Bank had approximately $142.7 million in total assets and $131.6 million in total deposits. Columbia State Bank will pay the FDIC a premium of 0.75 percent to assume all of the deposits of Summit Bank. In addition to assuming all of the deposits of the failed bank, Columbia State Bank agreed to purchase essentially all of the assets.
Founded January 1, 1914 as the Bank of Concrete, Summit had 36 full time employees located in Burlington, Concrete and Mount Vernon. Equity had gone from $13.2 million year-end 2009 to $6.2 million year-end 2010 to $2.7 million March 31, 2011. Non-current loans at year-end 2010 were $9.7million.
Summit lost $314,000 year-end 2009 with $1.5 million charge offs ($1 million construction and land development, $442 secured by 1-4 family residential properties and $8.68 million year-end 2010 with $6.1 million in charge offs ($2.5 million construction and land development, $1.67 million in 1-4 family residential properties and $1.5 million in commercial and industrial loans.)
March 31, 2011 the bank reported a loss of $3.49 million. Tier 1 risk-based capital ratio was 2%. The FDIC and Columbia State Bank entered into a loss-share transaction on $113.4 million of Summit Bank's assets. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $15.7 million.
Tracking Bank Failures Map:
List of Bank Failures:
“What good is Lease Education for the back office?”
The back office is clearly a large expense, and to minimize it have each person good at there job and do what they are told to, to hold down costs. How many times have I heard that comment!!! Efficiently comes from people that are not only trained in their job but trained in what leasing is all about so they can detect errors and omissions. Robots can perform many tasks but you do not expect them to think. I believe that too many lessor’s think the same about their staff.
On many occasions I have had to thank my lucky stars that a member of my staff questioned what was occurring and therefore saved my bacon. This would not have occurred if I had not understood how valuable education on all aspects of leasing was to my staff. They need not be lawyers but they need to understand documentation and the purpose of doing it correctly. They do not need to be accountants but they can find a problem with structuring and pricing faster than you can. A completely trained staff is the best back up in the world. If you train and respect them they become part of the team and not part of the furniture.
Regardless on how many years someone has been in leasing, changes occur every day. New ways to offer and handle the business need constant attention and management is not always on top of every change. Sending staff to training to refine their tasks and review current changes can support your need to control costs and be on top of your market. Just staying abreast of changes in documentation can save you time and money and protect the viability of your company.
One of the cheapest ways to offer training is to have one of the many lease educators come in and do a review of your procedures by having all of the staff explain their function and where they fit in the chain of events. When everyone sees the correct work flow and its purpose, it gives meaning to their jobs, and once in a while suggestions surface that will improve the duplication of effort and establish a more efficient method. Current changes in the companies business plan can also be presented that makes everyone aware of the company goals and makes sure they are all pulling the same way.
Usually an outside trainer is best because the teacher is not handicapped by the restrictions of the company’s outlook and current and new approaches can be presented.
If everyone is trained to understand leasing and its benefits then they can be your ambassadors away from the office. A happy employee encourages customers to do business each day because the customers get answers instead of being past off to others. The more professional your staff looks the better it is for your company reputation.
Another suggestion I have is to prepare a test for your staff on the rules and regulations plus questions on your company policy and simple questions on types of leases you offer and the markets you prefer and then prepare yourself for the results. If you are not surprised at some of the answers you will be in the minority. If you need help preparing these tests contact me because I have a lot of such tests.
One thing is for certain “all the rules and all the competitors change everyday” and staying on top of the changes is a full time job. It is difficult when you have a strong understanding of commercial leasing and an impossible job if you do not. Plus your organization, when poorly trained can destroy you. Education and training is a must to a properly run leasing company.
Mr. Terry Winders, CLP, has been a teacher, consultant, expert witness for the leasing industry for thirty-five years and can be reached at email@example.com or 502-649-0448
Previous #102 Columns:
Top Stories---May 16--May 20
Here are the top ten stories opened by readers:
(1) Jeffrey Taylor in Hospital
(2) Another Misrepresentation from LEAF?
(3) Archives May 16, 2000--Resource America Announces
(4) Leasing 102 by Mr. Terry Winders, CLP
(5) The Real Strange Case of Sheldon Player!!!
(6) The Main Reason to Lease
(7) Top Ten Cities with the Highest Credit Scores
(8) Five Worst Housing Markets
(9) Archives, May 18, 2007
(10) Playboy puts entire 57 years of magazines online
Leasing Industry Help Wanted
For information on placing a help wanted ad, please click here:
Please see our Job Wanted section for possible new employees.
NFA Networking Luncheon May 26, Atlanta, GA
National Funding Association luncheon open to members and non-members this Thursday, May 26, 2011 from 11:30am---1:00pm, The City Club of Buckhead, Atlanta, Georgia
~ How Businesses Get Into Financial Trouble ~
~ And... How They Get Out ~
Featuring Guest Speakers:
George Bergmark - is a seasoned, highly educated, Part Time CFO for companies in the Atlanta area. George brings a wealth of knowledge and experience both turning around troubled companies, and moving marginal companies to become great.
Jeff Lovejoy is a seasoned former bank executive, Jeff now coaches businesses in the Atlanta area on all aspects of improvement, mastering excellence, and attaining their goals.
Contact the Host:
City Club of Buckhead
Charlie Chan Saying "Contest"
There are some very good entrees in this contest started last Friday.
Readers may submit either their favorite saying or one they make up that fits a current leasing story. The top ten will be chosen, with each winner receiving a prize, with number one a very good bottle of wine.
If you also do not want your name used in the announcement of being in the top ten, we will oblige and still send a prize. So you can submit "off the record."
It's easy. Send an email to me with subject: Contest
Macon, Georgia-- Adopt-a-Dog
Breed: Beagle/Husky Mix
Cary is a 2 year old Husky mix. She has a Great Personality! She is a well behaved, unusual but pretty dog. Cary would be a wonderful family pet!
Rescue Group: Heart of Georgia Humane Society
Contact: Christian R
Adopt-a-Pet by Leasing Co. State/City
Adopt a Pet
Death Toll Rises to 89 From Missouri Tornado
Banks' glut of foreclosures threatens housing market
Ted Nuggett: Current State of Mortgage Lending
Ted Nugget, news anchor at American Network Television (ANT), clarifies the current state of mortgage lending in America.
(Leasing News provides this ad “gratis” as a means
Heat turn up stifling defense, beat Bulls
'Fugees' Jason Kidd, 'Over the Hill Gang' give Mavs ugly win
Two terrible minutes doom San Jose Sharks in Game 4
Ex-49er Coffee expresses strong opinions about NFL, money
LA Man, 31, Arrested in SF Giants fan beating
San Jose Mayor Declares State of ‘Fiscal Emergency’
Please send to a colleague---Leasing News is Free
This Day in American History
1785- Benjamin Franklin, Philadelphia, PA, writes his friend, George Whately, “ I have only to move my eyes up and down as I want to see distinctly far or near” as he describes his invention that day of a bifocal eyeglass. He was annoyed at having to carry two pairs of glasses. He took a frame and equipped it with lenses that consisted of two parts with a different focusing powers. Inasmuch as ordinary spectacles in the colonies cost as much as $100 each, a huge sum of money in those days, his invention did not receive ready popular response, as only the wealthy could afford glasses.
The object is to insert the numbers in the boxes to satisfy only one condition: each row, column and 3x3 box must contain the digits 1 through 9 exactly once. What could be simpler?
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