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May 18, 2005 Archive
By: Charlie Lester
(With the permission of the NAELB Board of Directors)
By any standard, the 2005 annual National Association of Equipment Leasing Brokers Conference was a tremendous success. It was a blending of the old and the new with an energy and enthusiasm level that was refreshing as much as it was tiring for an old guy like me. I have not seen so much energy and enthusiasm in the last 15 years of attending the various industry association conferences.
The NAELB conference drew 364 attendees from its membership of 592. More importantly in my opinion, 119 were attending their first industry conference and 60 were new members. The number of exhibitors was over 40 with 39 claiming to be funding sources. As usual, some of the funding sources were brokers or super brokers pretending to be true funding sources, but the question that stumped those that attended Dwight Galloway's session on “Do You Know Your Funder?” was “what is a true funding source?” It would interesting to hear what your readers define as a “true” funding source.
Probably the most interesting news with the “funding sources” was the emphasis on C & D level credits. Using the Exhibitor Profiles passed out to the attendees, 19 said their credit window was for A & B level credits only, but 20 said their credit window covered C & D level credits. Wonder if the C & D level sources have ever heard of the old adage that you can't compensate for risk with rate? Guess not or there would not be so many of them------at least for now.
The blending of the old and the new was very apparent. Bruce Kropschot was moderator for a session on “How to Get Top Dollar When You Sell Your Lease Brokerage Business” with Gerry Oestreich, Jim Borland and Charlie Lester as three old guys telling the story on how they sold their companies. At the end of the session, Jim Borland of US Energy Capital announced his plan find a merger or acquisition partner to help him realize the full potential of his niche market. He has a large number of national programs he has been developing for the past 25 years that the big guys are still trying to figure out how he did it. A press release from Jim is expected soon.
The new wave that pushes the edge of technology with the Internet as a marketing tool included Bob Anderson's session as moderator on “Lots of Leads for a Little Loot” and Kurt Hess and Gary Saulter's session on “Winning with Cutting Edge Marketing Tactics”. Looks like the old guys will have to learn more of the modern technology to keep up with the kids of the industry. What ever happened to the simple phone and fax as a way to communicate? What's a BLOG? Sounds like a horror movie to me.
Old or new, the sessions were well attended and participation was high even on Saturday afternoon when the sessions are normally attended by the janitors cleaning up and the presenters.
Claude Elmore somehow found the key to success as far as organization and execution of the pieces that make for a very successful conference. However, Claude has failed to learn that the Conference Chair who has a suite should give a party for those that made him successful. However, Claude is young and almost as cheap as Dwight Galloway. Even the Power Point presentations came off with very few computer problems that somehow have plagued sessions in the past. How Claude did that may be the 8th wonder of the world.
Donna Cole had the joy of turning over the job as President to Heather von Bargen from Caladesi Leasing. Somewhere in the depths of my little brain was the saying that “If you want a job done right, give it to a woman”. If you look up a woman leader in the dictionary, you will find a picture of Donna Cole. She has been a quiet, strong leader over the past year that has been able to avoid controversy that could have been divisive to the association.
After spending some time with Heather, I can tell you that she is a human dynamo that will follow in Donna's footsteps with strength and an unbelievable drive. I am glad I don't work for Heather since I would not enjoy being in rehab for exhaustion most of the time.
All the old pros were there, but there is a changing of the guard in the NAELB in my opinion. The members are younger, better trained in the technology necessary to succeed in today's environment and their energy level is disgusting. I am just glad I am nearing the end of my career in this great industry since I would not want to compete with the new breed of brokers we have today. To you other old folks, learn the new technology, adjust to the industry changes and take lots of vitamins or these new kids will eat your lunch and you won't even know it.
I say kids respectfully, but also with a sense of humor. Some are so young; I don't know whether to shake their hands or put them over my shoulder and burp them.
Since I am trying to move to retirement more and more, this conference may be my last annual conference and I thank all of you that have helped me have what I believe has been a meaningful career with respect for my competitors and customers.
Thank you and God Bless.
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Facebook and the Leasing Social Network
My best friend since 1963 named his son after me, who works for Facebook, Global Real Estate and Facilities. He has invited us both next week to have lunch with him at the facilities. I am looking forward to it. I should also disclose my family is buying stock via the Merrill Lynch-Private Client Group, as well as Leasing News and I have a Facebook site. So I am very "pro" not against this social site.
Whether it is a site for leasing business, don't know yet, but certainly those in retail, selling products, or using it as "yellow pages" or for following certain celebrities, musicians, politics, singers, it has tremendous value. I certainly enjoy seeing photos of my kids and their grandkids, or where friends have visited or photos and notes about their trips and news about their kids and grandkids.
I helped the United Association of Equipment Leasing (now National Equipment Finance Association) in setting up and housing at our office TeleMagic by dial-up in 1994 (it may have been 1993, don't remember) to access the membership directory and changes, as well as communicate on a bulletin board. Soon afterwards, Summit and I created for free a website, instead of dial-up, offering free emails. At the time, companies were charging $10 a month to have your own email. At a Los Angeles Regional meeting, I was the main speaker: the subject was the new UAEL web site and free emails. When I asked how many had an email in a room of about 75, four raised their hands, and three were from the same company.
I was asked why would we need an email, anyway?
I told the UAEL leasing audience the membership directory on line and members could add and make changes, so they could get the latest information and we had a "listserve." “What was that,” they asked? You can send emails back and forth to each other and they are posted. "Why would we want to do that?" they asked.
Actually Facebook is basically a chat room, which is a very old idea, first used by AOL where you had public and private chat rooms; they also were the first let you build your own web site. But they did not have photo's or video's that you could post, and AOL was a dial up at 9600 baud, quite slow compared to today's fast speeds, nor did it have the many features and ease of use that Facebook has.
As to the public exposure on Facebook, it can be private or public, but in reality privacy died when the internet was created – once the cucumber becomes a pickle, it can't go back.
Definitely privacy died, as our ability to research news stories can substantiate. Even attorney emails with clients have been ruled public in California.
Almost everyone has a hand held device and can make photographs or videos, so you see events on line with video and photographs showing all types of events, personal, business, and news. Nothing is private anymore.
There also is the fact that Google and the others sell and/or utilize all the information they gather from your visits. I saw a calendar at Staples and the next few days, I kept getting pop-ups of the calendar with the price and how to order it. I turned all pop ups off, which is a pain as some pop-ups you want to see when you visit a site, so you have to manually allow each one. I do like Amazon reminding me of things I bought and what is new, but sure don't like the pop-ups that interrupt what I am viewing.
To those who think Facebook is a fad or won't help their business, my advice is think about this some more.
(Leasing News provides this ad as a trade for investigations
Doing Business with Different Generations
(Courtesy of Barbara Griffin, President, Southern California Leasing--appeared in her May, 2012 Newsletter)
"Did you know that the baby boomers are considered the
Face to face meeting
Prefer phone calls
Voicemail and email
Instant message, blogs, text
Bill Griffith was promoted to Portfolio Manager for the TAB Bank Equipment Leasing Division, Ogden, Utah; working out of Chicago, Illinois. "As Portfolio Manager, Bill will be responsible for oversight of portfolio performance data, analytics, and reporting, including the monitoring of delinquency and non-performing assets. Bill will take the lead in monitoring the Leasing Division’s third-party Servicing designees relative to their Service Agreement performance. Responsibilities will also include managing the Leasing Division’s Small -Ticket Portfolio inclusive of evaluating new and existing Portfolio Program opportunities, as well as managing the documentation review/approval and funding function for the monthly small-ticket portfolio acquisitions. Also, Bill will participate with the Leasing Division’s management team in assessing strategic opportunities, new Originator Program opportunities, as well as new products/services."
"Bill Griffith has been in the equipment leasing and finance industry for more than 20 years. His career began in the late 1980s with Associates Finance. From there he spent four years with Transamerica Leasing. Bill joined Padco Lease Corp. as a Senior Credit and Collection Analyst in 1997 and was soon promoted to Credit and Operations Manager where he remained prior to joining TAB Bank. Bill served for five years as Area Director for the UAEL (now known as NEFA -- National Equipment Finance Association). He was recognized as the UAEL Volunteer of the Month in May 2007 and served on the UAEL Board of Directors in 2007-08. Bill has also served on various credit committee conference panels for NAELB (National Association of Equipment Leasing Brokers). In his new role with TAB Bank, Bill will be responsible for underwriting small-ticket equipment leasing portfolio acquisitions." DePaul University BA, Marketing (1994 – 1997) Deans List, 3.407 GPA Activities and Societies: DePaul Mentor Program
Matthew Hieber appointed Vice President of Asset Management, CoActiv Capital Partners, a Marubeni Group Company, Horsham, Pennsylvania. Previously he was vice-president asset management, De Lage Landen, where "...he served as global process manager where he standardized process flows for remarketing activities across North America and Europe." "I am looking forward to bringing my international business experience and Asset Management knowledge to the CoActiv management team,” Hieber stated. “I am also excited to be reunited with several colleagues whom I’ve worked with before, early on in my leasing career. “ (January, 2007-February, 2012).Penn State University MBA, Finance (2000 – 2002),Temple University - Fox School of Business and Management BS, Finance (1988 – 1991)
Dean Vicha was appointed president NationalLease, Oakbrook Terrace, Illinois. He joined the firm January, 2006. He previously "...served as vice president, national accounts. Earlier, he served as vice president of member services and as national account executive. Director, Business Development, Ryder systems (March, 2000-December, 2005). National Sales Executive, Rollins Leasing Corp (February, 1993-March, 2000) “NationaLease’s National Accounts effort expanded its reach and grew its customer base significantly under Dean’s leadership of that program,” Doug Clark, chief executive officer of NationaLease said. “Now that he’s at the helm of the entire organization, he will bring that same energy, dedication, and expertise to our member companies so that they can deliver the highest quality transportation solutions to their customers.” NationaLease is one of the largest full service truck leasing organizations in North America, with more than 600 service locations throughout the U.S. and Canada, a combined customer fleet of 125,000 tractors, trucks, and trailers, and annual revenue in excess of $4 billion. Dan Vicha graduated from Illinois State University with a Bachelor degree in Communications (1987-1992)
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Loan growth remains tough challenge for community banks
Quarter 1, 2012 vs. Quarter 4, 2011
For many banks and thrifts, the worst of the credit troubles stemming from the last downturn are behind them, putting the focus back on driving profits.
But central to that drive is loan growth, and it remains hard to come by for many community lenders.
"It is a challenging environment out there in a lot of ways, including on loan growth," Michael Sand, president and CEO of Hoquiam, Wash.-based Timberland Bancorp Inc., told SNL, summing up the difficulties lenders face trying to expand loan books in an era of heightened regulatory scrutiny, slow economic growth and, in many swaths of country, anemic loan demand.
An SNL Financial analysis of first-quarter call report filings among banks under $10 billion in assets found that loan books actually shrunk nearly 1% from the end of 2011 and were down from the same quarter a year earlier.
Sand's thrift operates in a variety of markets in the Pacific Northwest, from rural to urban communities, from markets heavy on private industry to others that are influenced by military spending. As such, he views the lender's footprint as a good barometer of overall conditions. And the reading so far this year boils down to this: Local economies are healing enough to juice loan demand modestly, but not enough to drive robust loan growth.
"We are out there picking up credits," Sand said, adding that he expects at least high single-digit loan growth this year after a "flattish" 2011. Sand noted multifamily housing as a source of strength, given the slowdown in single-family home sales in favor of more apartment complexes in the wake of the housing bust.
Particularly when compared with a year earlier, multifamily lending was a bright spot for the community banks with more than $1 billion in assets in the latest completed quarter.
Quarter 1, 2012 vs. Quarter 1, 2011
But runoff rates remain high, as many borrowers continue to deleverage and pay down debts. And, increasingly pressing, competition for coveted customers is fierce, meaning conservative lenders have to back away from a fair number of credit deals because of downward pressure on pricing.
"It is very competitive out there, and at times you just can't go down on price to keep certain credits, so I don't think we're different than most everybody else in that we're not going to avoid some runoff," Sand said.
But there is a silver lining within all of that from community bankers' perspective, Sand said. "Many customers are telling us they are tired of working with the really big banks — and that is a big source of the competition out there — and they are tired of the service they are getting," Sand said. As such, community banks, which strive to be long on personalized service and local expertise, are finding they can pluck away good customers from larger lenders, he said.
"Community banks, certainly, can't provide all the products and services of a big bank, but with technology today, we can provide many of them," Sand said. "Not everything, but most people don't need everything. If they can get what they need, and get it with really good service, that becomes very appealing."
Stealing share from lenders is a big reason why Sand anticipates some loan growth this year.
"It is pretty significant," Sand said. "Some of the nicer credits we've been able to get recently have come from the big banks."
Stealing share is particularly important in areas where, as Chico, Calif.-based TriCo Bancshares President and CEO Richard Smith put it, "economic malaise drags on" and continues to negatively affect the psyches of both businesses and consumers.
Alvin Kang, president and CEO of Los Angeles-based BBCN Bancorp Inc., shared many of the same concerns while speaking at the D.A. Davidson conference.
BBCN Bancorp caters to Korean-American communities, but Kang said the challenges of modest loan demand ring true for a niche operation like his in much the same way as they do for banks with broader customer bases. BBCN has operations along the West Coast, as well as in Illinois, New York and New Jersey.
Kang said the company's loan pipeline is building up, but loan growth so far this year "is really low to mid-single digits."
"We have quite a bit of capacity lending-wise," Kang said. "But there is still a sense of caution" among customers due to economic sluggishness.
And Kang is worried that as baby boomers begin to retire en masse in coming years, they will slow their spending, adding a new drag on businesses and, by extension, the banks that lend to them.
"I'm very concerned about our economy," Kang said.
Banking Report Card
MultiFunding.com has given every FDIC regulated bank across America a grade for their commitment to small business lending. The grade is based on publically available date as of 12/31/2011
"Based on our analysis of the FDIC data, the average bank in America uses 7.62% of their deposits to make loans to small businesses. Therefore, we established the following grading structure:
The following ten states have the highest number of A grade banks with headquarters in their states:
Minnesota 242 A banks
Go here to search for a bank in your area
Dale Kluga, Cobra Capital, on JP Morgan Chase
4-13-12 radio interview where he blasts Jamie Dimon for his high risk investments (before the $2B loss was announced):
Here is the link to Dale’s 4-27-12 American Banker article:
Here is the link to his 4-24-12 Bloomberg TV interview:
Mr. Kluga (49) has over 28 years of commercial leasing and banking experience. In 1989 he co-founded a community bank for the second largest Chicago based banking organization at the age of 29 and subsequently founded the parent company’s equipment leasing subsidiary, which was acquired in 2007 by Bank of America. Mr. Kluga is a CPA and 1981 graduate of Northern Illinois University with a B.S. in accounting and is a graduate of Continental Illinois National Bank’s Financial Information Services Training Program and its’ Wholesale Banking Training Program.
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Please contact Laura (email@example.com) for more information about this pet.
She will be at the Pet Club at 1850 South Norfolk Street in San Mateo on Saturday, May 19 from 10:00 am until 7:00 pm.
Please call us at 408-390-3160 or 408-835-4264 before driving to the event to see if the dog has already been adopted.
Priority is given to potential adopters who have already filled out an application and talked to us about the dog.
Her adoption fee is $400.
We are not an animal shelter. We are a rescue organization that saves and takes care of dogs that were on their last days in overcrowded shelters. We were able to get the dogs out of the shelter before they were put to sleep and now they need permanent homes.
For an application, please contact us ASAP at: firstname.lastname@example.org
She has been spayed (fixed) and given DHLPP, rabies, bordatella shots, a de-worming, flea and tick treatment and a microchip implantation.
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