|
|
New Update on Commercial Money Center -Netbank/Lakeland
Settle “Net Bank and Lakeland Bank settled with the Bankruptcy Trustee.
Apparently, they got an assignment of the leases, and didn't
bother filing a UCC Financing Statement! Can you believe that????? “The upshot is that for Net Bank, they are paying (yes paying)
the Trustee $6.2 million
dollars. This is on the heals
of major losses at the Bank. Kit, you
might want to do a search on them, their stock sucks, and the have major reserves for losses this year.
After paying the $6 million, they get to keep the worthless leases.
Hey, is that a good settlement or what? “Lakeland pays 1.3 million. “The settlement gets confirmed by Bankruptcy Court later
in April. 2003. “The deal was signed 2/5/03.” (From a highly reliable source-name with held) Netbank reported a net loss of $15.9 million (or $.36
per share) for the full year 2002, according to its press release. (Parent of Republic
Leasing of South Carolina) "The bank's financial performance continues to be adversely
affected by the non-performing business equipment leases in the bank's
portfolio. The leases were originated by Commercial Money Center, Inc.
and represent an outstanding principal investment of approximately $82
million. As reported previously, the bank has initiated litigation against
Illinois Union Insurance Company, Royal Indemnity Company and SAFECO
Insurance Company of America to guarantee performance of surety bonds
these carriers issued on the leases in default. The bank's action against
the sureties has been consolidated into a multi-district litigation
proceeding in Federal District Court in Ohio. The schedule instituted
by the judge assigned to the case requires completion of briefs by March
14, 2003, on the issue of whether the investors are entitled to judgment
on the pleadings. The bank expects a ruling on these motions in Spring
2003." "The company finished the year with record results by
posting the highest quarterly earnings per share figure in its six-year
history. ######## ################### Financial highlights of the fourth quarter include: -- A 336% increase
in net income, from $2.9 million in fourth quarter 2001 to $12.6 million in fourth quarter 2002; -- A 150% increase
in fourth quarter EPS, from $.10 last year to $.25 in the current year; -- Quarterly mortgage
production of $4.7 billion, representing a 30% increase from production in the preceding quarter; and -- Loan and servicing
rights sales into the secondary market of $4.4 billion, representing a 27% increase from sales in the preceding quarter and a balance sheet turn of 5.0 times on
an annualized basis. Including non-operating charges of $73.8 million related
to the acquisition of Resource Bancshares Mortgage Group, Inc. and the
subsequent repositioning of the company's balance sheet, the company
reported a net loss of $15.9 million (or $.36 per share) for the full
year 2002. Excluding the acquisition and repositioning charges, core
operating earnings totaled $30.4 million (or $.68 per share). On a core
earnings basis, the results represent an increase of 360% from year-end
2001 when earnings totaled $6.6 million (or $.22 per share). Management Commentary "We are extremely proud of the solid financial results
that we delivered on behalf of our shareholders during the second half
of the year and especially the fourth quarter," said Douglas K.
Freeman, chairman and chief executive officer. "Our 2,000 associates
remain focused on building the country's premier, new era financial
institution. We concentrate on select market segments where we can leverage
our technology and customer service competencies to offer consumers
superior value. This year's results show the progress that our associates
are making on all fronts." "Given the continued low-interest rate environment,
each of our business lines performed well during the quarter,"
said Steven F. Herbert, chief financial executive. "At the bottom
line, low interest rates fueled record production, sales and margins
in our conforming mortgage operation. This area maximized the earnings
opportunity by keeping expenses in check while handling the significant
increase in loan volume." "We know the favorable mortgage lending conditions that
gave our fourth quarter results additional lift cannot continue indefinitely,"
Freeman added. "Industry forecasts currently predict a rise in
interest rates during the second half of 2003. Our mortgage operations
are well positioned to compete. They offer a full line of products to
meet changing consumer demand. Any earnings volatility caused by a decline
in conforming business should be partially offset by increased production
of adjustable-rate mortgages, home equity products and non-conforming
loans as well as our investment in servicing rights." "...to grow during the fourth quarter. The bank finished
the year with a total of 152,560 customers, representing a quarterly
increase of 2,326 customers. The average NetBank account balance increased
to $9,037, representing a 6% increase from third quarter and a 62% increase
from year-end 2001. Average balances across all account types rose significantly
year-over-year. Compared with 2001, checking balances were up by 51%;
money market by 52%; and certificates of deposit (CDs) by 9%. "Total deposits remained relatively flat quarter-over-quarter,
although core deposits actually grew. From October to December, approximately
$140 million in brokered CDs matured. Management made a strategic decision
not to replace these brokered accounts since there were no underlying
core customer relationships. For year-end 2002, deposits totaled $2.1
billion, representing an increase of $551 million or 37% from 2001." Mortgage Banking Operations "The company's collective mortgage operations continued
to benefit from the current low interest rate environment. As highlighted
earlier, production and sales reached record levels for the company.
Production for the quarter totaled $4.7 billion while sales totaled
$4.4 billion. Compared with last quarter's results, production increased
by 30% and sales by 27%." "b) Non-performing loans includes $83.8 million of CMC
leases" "About NetBank, Inc. "NetBank, Inc. (Nasdaq:NTBK) operates with a revolutionary
business model through a diverse group of complementary financial services
businesses that leverage technology for more efficient and cost-effective
delivery of services. Its major subsidiaries include NetBank(R) (www.netbank.com),
the country's first commercially successful Internet bank; RBMG, Inc.,
a wholesale mortgage lender that generates residential mortgages through
a nationwide network of independent brokers and correspondent lenders;
Market Street Mortgage Corporation, a retail residential mortgage lender
that conducts business in 39 states; Meritage Mortgage Corporation,
a wholesale mortgage lender that originates non-conforming residential
mortgages through a nationwide network of independent brokers; and Republic
Leasing Company, Inc., a wholesale originator and servicer of commercial
business equipment leases. NetBank is a Member FDIC. NetBank, RBMG(R),
Market Street Mortgage(R) and Meritage(R) are Equal Housing Lenders." CONTACT: NetBank, Atlanta Rich Jeffers, 678/942-7596
|
|
