MARKETING INDIRECT ORIGINATION: New York. One of the largest ind. equip.lessors needs  motivated, self-starter to purchase single investor leases from institutional investors; min.transaction  $1 million; portfolio of primarily investment grade lessees/good "story credits".  Min 3 yrs exp. sourcing/ originating leasing transactions, knowledge credit and pricing. E-mail: jobposting1@leasingnews.org

  

Headlines---

 

Classified ads---Asset  Management/Collectors

    North Carolina Sues Cambridge Credit Counseling

        Alexa Report on Leasing Industry Web Sites

            Examiner details demise of DVI

                ELA: New Tax Proposal a “Crisis” for Investors

The Leveraged Lease Accounting Issues

    Classified Ads---Help Wanted

        Cindy Fleck New Sales Dir. West Region  U.S. Bancorp Manifest

            CIT Quarterly Dividend for First Quarter 2004     

                Greater Community Bancorp Reports First Quarter 2004     

Hansabank to Expand Leasing Operations in Russia

    National Commerce Bank Services Announces New Division

        Mediation Gains Ground as Cost-saving Option

            CFNB Reports 21% Increase in Third Quarter Earnings

                Greater Bay Bank 1^st Quarter 2004 Results

Regions Leasing of Montgomery, Ala. Goes IDS Rapport

    News Briefs---

        Gimme that Wine

            “This Day in American History”

                Baseball Poem

 

 

########  surrounding the article denotes it is a “press release”

 

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Aloha—While I have had the best of intentions to write Leasing News from Kaua’i, this is the first one.  I was able to produce a “Sunday Sermon” as it was appropriate from Keoneloa Bay.  It is also sent to those who subscribe.

 

Carl Moberg is again up-dating all the classified ads, contacting everyone, verifying e-mail addresses, suggesting “fresh” copy,” and looking for feed back.  We do this every 45 days.

 

One of the major complaints I have received is having classified ads in the beginning.  To me it is the most important as we are trying to help people find jobs. From a general’s readers interest, the

ads are revealing in the number category, region, and the experience of the people looking for work.

 

We have helped many find work, including senior positions as well as those new to the business.  If you have ever been unemployed, you do not lose the insecurity of being out of work, and hopefully

want to help those looking.

 

 

        Kit Menkin, editor

------------------------------------------------------------

 

Classified ads---Asset  Management/Collectors

 

Asset Management: Austin, TX. 20+ years exper. lease/finance. P & L responsibility, strong credit & collection management, re-marketing& accounting.  Computers, construction, auto & transportation. Both commercial/consumer portfolios. Email: kmalone@austin.rr.com

 

Asset Management: Bloomfield Township, MI. 15+ yrs experience asset management and credit analyst. Leadership and training skills. Audited returns, max residual, lease end and resale negotiator.E-mail: cmcozzolino@msn.com

 

Asset Management: Chicago, IL. MBA, 15+ years exp. Long history of success in maximizing residual position through outstanding negotiation skills & lease contract management. Third party re-marketing, forecasting etc... email:jgambla@aol.com

     

Asset Management: Oxnard-Hollywood Beach, CA.

19 Years w/Equity Analysis/Placement and Residual Forecasting of Computer Assets. Portfolio Manager for Two Major Lessors and Strong Analyst Background w/Leading Information Services Firm.

email: GregoryMLorenz@aol.com

 

 

Collector

 

Collector: Boston, MA. Challenging position where my skills, professional experience, organization, leadership, strategic thinking, creativity,  energy, passion, competitive nature will enable me to define opportunities  and personal development.Email: bernd.janet@verizon.net

 

Collector: Jacksonville, East Brunswick, FL. 13 years experience with collection, recovery,re-marketing and  legal on commercial loans and leases. Expertise with distressed portfolios, Six Sigma trained. Willing to relocate. Email:RichardB12364@aol.com

   

Collector: Joplin, Mo. Will do car repossessions, willing to go about anywhere. Have three years exp. thanks.Email: derekrgreen@yahoo.com

 

Collector: West Hartford, CT. Credit/Collections /Rental Management in leasing & construction fields. Looking for stable company that will appreciate my 20+ years of experience. Email: losterastringban@aol.com

 

 

North Carolina Sues Cambridge Credit Counseling

 

(Richard and John Puccio are the president and CEO of Southfork Recovery & Remarketing http://www.southforkasset.com/contact_us.asp)

The state of North Carolina  filed a civil suit against Cambridge Credit Counseling Corp. and Debt Management Foundation Services Inc. charging the companies with unfair and deceptive
practices.

 

 Last week, Massachusetts sued Cambridge, charging its executives with breaches of fiduciary obligations and unfair and deceptive practices (CardLine 4/9). Cambridge and Debt Management are
registered as not-for-profits that provide debt counseling.

 

The North Carolina suit, filed in Wake County Superior Court in Raleigh, asks that both Cambridge and Debt Management be banned from advertising, soliciting and engaging in debt management in the state. Further, the suit seeks to cancel all contracts the firms have with North Carolina customers. Wake County, NC, joined the suit against Agawam, MA-based Cambridge and Largo, FL-based Debt Management. North Carolina Attorney General Roy Cooper charged that consumers paid extra interest and late charges on their debts because Cambridge didn't pay the consumers bills as promised.

 

Debt Management charged consumers enrollment fees up to $1,000 and a monthly charge of $39 a month for 40 months, according to Cooper.

 

 In a statement, Cambridge declined to comment on specifics of the North Carolina suit but said it planned to defend itself. Debt Management did not respond to CardLine's calls. Last month, the U.S.
Senate Permanent Subcommittee on Investigations reported that Cambridge owned and operated an interlocking group of not-for-profit counseling entities and for-profit processing firms (CardLine 3/24).

 

The Senate found that the not-for-profits funneled revenues into the processors to the benefit of Cambridge's executives.

[Headlines]

 

Alexa Ranks Leasing Association Web Sites

Rank	04/19/2004	03/15/2004		WEBSITE NAME
1.	85,031	81,929		www.aba.com American Bankers Association
2.	105,910	105,146		www.leasingnews.org  Kit Menkin's Leasing News
3.	126,273	143,187		www.elaonline.com Equipment Leasing Association
4.	154,521	136,081		www.monitordaily.com Monitor Daily
5.	180,252	181,374		www.nacha.org The Electronic Payments Association
6.	258,732	223,562		www.Leasingpress.com Leasing Press
7.	527,979	734,204		www.leasefoundation.org Equip. Leasing & Fin Fndn
8.	531,728	576,629		www.ibaa.org Ind Community Bankers of America
9.	553,392	728,852		www.uael.org  United Association of Equipment Leasing
10.	631,151	596,168		www.us-banker.com  U.S.Banker
11.	640,955	562,457		www.cfa.com  Commercial Finance Association
12.	728,183	1,001,086		www.naelb.org  National Assoc. of Equip Leasing Brokers
13.	765,425	700,830		www.pblaw.com/newsletters/bln/ Bus. Leasing News
14.	877,960	1,328,427		www.nvla.org National Vehicle Leasing Association
15.	1,072,935	864,194		www.lessors.com  eLessors Networking Association
16.	1,196,410	1,014,141		www.iicl.org  Institute of International Container Lessors
17.	1,336,504	1,744,449		www.executivecaliber.ws  Exec Caliber-Jeffrey Taylor
18.	1,383,218	1,384,204		www.clpfoundation.org   CLP Foundation
19.	1,456,752	1,458,680		www.nationalfunding.org The National Funding Assoc
20.	2,358,687	3,813,381		www.mael.org Mid-America Association of  Equip Lessors
21.	2,552,945	1,156,151		www.efj.com Equipment Financial Journal
22.	5,474,265	5,171,253		www.1stBusinessDay.com BizWiz Daily
23.	No Data	2,511,070		www.eael.org Eastern Association of Equipment Leasing
24.	No Data	No Data		www.leasingtoday.com Leasing Today
25.	No Data	No Data		www.leasecollect.org Lean -Lease Enforcement Att Net
26.	No Data	2,414,281		www.aglf.org  Assoc of Government Leasing  Financing

 

Note: The Business Leasing News website is the specific web address, and not the address of the law offices, which would result in a rating of the entire site, in addition to the newsletter itself.

 

It should also be noted that several of the web sites have their "list serve" posted via their site, meaning their e-mails are counted as a visit to the site, whereas they are "list serve" communication.

 

These comparison are compiled by Leasing News using Alexa and should be viewed as a "sampling," rather than actual count from the website itself.

 

The Alexa tool bar works on most browsers. They are partnered with Google.

You may download their free tool bar

 

A graph and analysis of the last three months are available

 

[Headlines].

 

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Behind DVI Demise

 

         By JOHN WILEN

                The Intelligencer

 

 

"What caused (DVI,) a company with an established position in the health-care marketplace and with an almost mathematical certainty of moderate, if unspectacular income, to descend into bankruptcy

amidst allegations of fraud and accounting irregularities?"

 

Court-appointed examiner R. Todd Neilson poses the question, then spends nearly 200 pages trying to

answer it in a report filed in U.S. Bankruptcy Court in Wilmington on April 8.

 

As The Intelligencer reported last week, that report is packed with details from Neilson's nearly six-month investigation. But, as Neilson makes abundantly clear, even his opus - and its 1,700 pages of supporting materials - may only begin to scratch the surface of what he calls the "massive fraud" that took place at the Warwick company from the late 1990s until last August.

 

DVI was a finance company with a specialty in health care. It loaned health clinics money to buy expensive medical equipment or make capital improvements. DVI borrowed money from banks to finance those loans. When the volume of its loans reached a certain level, it packaged them into a separate company, and sold that company off to investors in the open market.

 

DVI got itself into trouble in the first place by expanding overseas in the mid-1990s, Neilson writes.

The $110 million outlay required for that move - made by chief executive officer Michael O'Hanlon over the objections of his executives and directors, Neilson concludes - caused the initial cash shortage that led, ultimately, to many of DVI's other alleged shenanigans, Neilson writes.

 

Neilson spreads criticism widely in his report but directs most at O'Hanlon, "a strong, 'hard-nosed'

executive who was raised in a tough area of Philadelphia and brought that 'bare knuckle' philosophy to DVI."

 

"There is a business axiom that states 'success has many fathers but failure is always an orphan,'" writes Neilson in one of his report's most poignant passages. "The failure of DVI is not an 'orphan' searching for a 'father' - that 'father' is Michael A. O'Hanlon."

 

Calls for comment to O'Hanlon's homes in West Palm Beach, Fla., and Ocean City, N.J., were not returned.

 

Neilson blames O'Hanlon for the company's overseas adventures, which he says DVI underfunded by at least $110 million. But he also sees the CEO as the prime mover behind a number of practices that ultimately led to DVI's downfall.

 

DVI's investment in the Corpus Christi Community Cancer Care Center is offered by Neilson as an example of the way DVI's failure to cut its losses early led to greater losses - and allegedly fraudulent attempts to hide those losses - later.

 

DVI loaned $1 million to the Corpus Christi center in 1994. The money was ostensibly intended to fund the creation of a radiation oncology facility. But DVI quickly discovered it had been defrauded of $800,000, Neilson writes.

 

Instead of writing off that loss, a move that would have hurt DVI's bottom line, the company loaned as much as $6 million over the next 10 years to three different operators in a futile attempt to recoup its initial investment, Neilson concludes.

 

The center's contracts were in "a nearly continual state of delinquency," and its outstanding debt stood at $5.5 million on Jan. 31, 2004, he writes.

 

Other than a single write-down of about $60,800 in 2001, writes Neilson, "DVI never recognized any other loss or recorded any other reserve with regard to the Corpus Christi center, a center that apparently had never operated at a profit throughout its history."

 

In 1999, DVI, at O'Hanlon's direction, loaned at least $10 million to the Hit Factory, a New York recording studio run by a longtime friend of O'Hanlon's, Edward Germano, Neilson writes.

 

"O'Hanlon made the decision to fund this acquisition despite the possible disapproval of the DVI credit committee, because he had already promised Germano the funds," Neilson writes, citing an interview with a DVI executive.

 

The loan was to help the Hit Factory expand into Miami. That expansion didn't go well, Germano became ill and eventually died, and O'Hanlon let the company suspend payments. In March 2000, DVI extended the Hit Factory $4.5 million in working capital loans "for the purpose of meeting DVI ... monthly lease payments," Neilson writes.

 

But the Hit Factory continued to struggle, and rarely made its payments. By June 2003, DVI told the studio it was in default, with a past due balance of $4.5 million, and a total balance for all financing of $19.9 million.

 

 

"It was clear to DVI, as early as December 2000, that there was significant exposure that should have been recognized as a reserve against loan losses," writes Neilson. "Rather than accept that likelihood, DVI, under Michael O'Hanlon's direction, continued to pour millions of dollars into this financially hopeless situation."

 

In the cases of the Corpus Christi center and the Hit Factory, and in many other instances, DVI refused to write off losses, Neilson found. Instead, the company rewrote loan contracts for no reason other than to hide the fact that the original loans had become uncollectable, he alleges.

 

DVI would take a bad loan - one whose borrowers were not making payments - and pay it off with a brand new loan, Neilson alleges.

 

Rewriting, Neilson found, let the company continue to recognize as revenue money due from the contracts, and it let DVI avoid having to take a loss against its bottom line. That made the company's financial health look much better on paper than it actually was, boosting its value in the eyes of investors.

 

As he puts it in his examination of DVI's treatment of loans extended to Health Integrated Services, a provider of various health-care services that ultimately may have cost the company more than $22 million in bad loans:

 

"It is difficult to conceive an explanation that would justify the accounting subterfuge demonstrated in these transactions. The examiner believes the actions of those responsible were a deliberate attempt to conceal and misstate the financial operations of DVI."

 

Rewriting bad loans could make DVI look better on paper, Neilson wrote, but the company still had to come up with cash to operate.

 

In August 1999, a DVI lender pulled a short-term line of credit as the company was preparing to repurchase several bad loans. The confluence of events created a "$35 million issue that 'would sink the company,'" writes Neilson, citing chief financial officer Steven Garfinkel.

 

Garfinkel told Neilson that O'Hanlon told him to find a way to fund the loan buyout. At that point, Garfinkel tells Neilson, he "blinked" and suggested pledging collateral to a Fleet credit line that was either barred from use as collateral under the company's borrowing agreements or was already pledged to another line of credit. That move opened up more room to borrow.

 

Garfinkel's attorney declined comment.

 

That decision began a process of pledging ineligible collateral that continued through the time of the company's bankruptcy filing last summer, Neilson alleges. At one point, there was as much $102 million in collateral improperly pledged to lenders, Neilson finds.

 

Neilson clearly feels there's plenty more to be found on DVI, concluding: "While this report, in the examiner's view, addresses in detail many of the key pieces in the 'story' of DVI, this story is a long and complex one that may still have more pieces to be investigated."

 

Neilson writes that he cooperated with many other investigative agencies in his investigation, including the Securities and Exchange Commission and U.S. attorneys in Delaware and Pennsylvania. All have declined comment.

 

While the examiner did not accuse the people in his report of specific crimes, he describes the actions of DVI and its executives as "massive fraud," and accuses them of "illegal and unethical conduct."

 

DVI continues to operate under bankruptcy court protection, with Mark Toney, a distressed-company specialist with the New York turnaround firm Alix Partners, as its chief executive. But it doesn't appear that Toney's goal with DVI is a turnaround. Toney has said his purpose is to wind down the company's operations.

 

Toney declined extensive comment on Neilson's report, other than to say that it "speaks for itself."

 

Neilson credits help from Toney and many DVI employees in his report, a sentiment Toney echoes:

 

"Personally, I thank the employees who have cooperated and assisted both the examiner and Alix Partners over the past eight months," Toney said via e-mail. "Many parties were impacted by the failure of DVI, including a group of employees that worked hard and were honest people."

 

John Wilen can be contacted via e-mail at

jwilen@phillyburbs.com.

 

(sent to us by a reader )

[Headlines]

 

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Equipment Leasing Association Calls New Tax Proposal a “Crisis” for Investors

 

 ELT News

 

Tax Law Change Precedent Being Set, Causing Uncertain Investment Environment

 

Arlington, VA—The Equipment Leasing Association (ELA) strongly opposes the pending substitute amendment to S. 1637 as a component of the international tax reform bill, which was approved by the Senate on Thursday, April 8. In a letter sent to Senate Finance Committee Chairman, Charles E. Grassley, ELA President Michael Fleming said that the amendment, containing a new proposal for retroactive action on leasing transactions, should “concern every individual and corporate taxpayer in America. Tax policy is being developed ‘on the fly,’ with no analysis, no inquiry, and retroactivity, all of which will further the investment crisis in America."

Fleming specifically pointed out the new Section 470 concerning limitations on losses from tax-exempt use property as particularly disturbing to the equipment leasing and finance industry, but noted that this provision being proposed should be a warning to all financial institutions.

 

"A bigger issue is emerging with this proposal,” warned Fleming. “If American companies provide investment in an unstable environment where you have constant tax changes and long-standing, time-honored principles are ignored, how can these companies continue to invest? Some certainty must be provided so investors know what they are getting in to.”

 

Most alarming to ELA and its members is the retroactive action. Even though current law permits sale – leaseback transactions to tax-exempt entities under provisions adopted by Congress twenty years ago, the amendments made in Section 470 will apply to any transaction entered into prior to November 18, 2003 done with a foreign entity for tax years beginning after December 31, 2004.

 Practically speaking, leasing transactions entered into in 1999 or 2001 or anytime prior to November 18, 2003 under current law and longtime practice will become subject to a changed tax law due to the amendment.

 

“A new effective date provision has been proposed, which appears to violate every historic principle of tax policy,” stated Fleming in the letter.

 

“At no time has the Senate Finance Committee held a balanced and open hearing addressing the legal principles and technicalities underlying real sale-leaseback transactions to tax-exempt entities,” added Fleming. “Any reasonable taxpayer should be able to assume that current law will prevail when making decisions with tax implications. But they should be alarmed and put on notice that the Senate has come to the new principle reflected in this action.”

According to ELA, for leasing businesses and particularly public companies, this most recent effective date action by the Senate has grave financial reporting consequences.

 

“Essentially, the economics of the transactions will be materially changed,” noted Fleming.  Companies are now reporting their 1st quarter financial results. Because the leasing transactions affected by this effective date provision are 20 to 30 years in term, “the earnings impact will be significant and must be reported with negative results,” he said.

 

The second concern identified by ELA relates to treating sale-leaseback transactions to foreign persons or entities different from transactions to U.S. tax-exempt entities. The association asks why the transactions should be treated differently if a U.S. taxpayer entered into two similar sale-leaseback transactions in 2000, each for subway cars or environmental equipment, but one transaction was to a U.S. transit authority and the other transaction to a transit authority in a foreign country.

 

“The legal foundation is the same and the transaction structure is the same and each was done under law established by Congress,” stated Fleming. “U.S. businesses growing internationally will be put on notice by this new principle from the Senate.”

 

Fleming notes that, as always, ELA is prepared to discuss the provisions and their economic consequences with Grassley and his staff.

About The Equipment Leasing Association

 

Organized in 1961, the Equipment Leasing Association (ELA) is the premier non-profit association representing companies involved in the dynamic equipment leasing and finance industry to the business community, government and media. As the voice of the leasing industry, ELA promotes the estimated $218 billion industry as a major source of funds for capital investment in the United States and abroad. ELA provides its members with comprehensive services, assists in the resolution of industry issues, educates financial decision-makers on the benefits of leasing and promotes high standards of business practices within the industry. ELA maintains an informational portal for financial decision-makers to learn more about leasing and find a leasing company at http://www.LeaseAssistant.org. Headquartered in Arlington, Va., ELA has more than 800 member companies and a staff of 25 professionals. For more information on ELA, please visit ELA Online at http://www.ELAOnline.com.

[Headlines]

 

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The Leveraged Lease Accounting Issues

    by Phil Tirino, CPA

 

Thinking Outside the Box.   Leveraged Leasing should never be the same!  Perhaps some new ideas and a revitalized interest are called for?

 

The last 30 years has seen many changes in the leasing industry, but not in all areas. Take "Leveraged Leasing" as an example. For 30 years no one has asked the simple question "What is the Multiple Investment Sinking Method of accounting and yield analysis really doing?" For thirty years people have complained about their dissatisfaction with leveraged lease accounting, and the difficulty of explaining it to prospective investors. Regardless of the complaints, little was done.

 

This is probably because the market is small and specialized and only a very few care. Of those few that care, an even smaller number have the tools to look closely. For those few that do look closely, a surprise will be in store. Please read the featured article “Yield Revisited”.

 

 It is not about the proper use of the Kings' English, good spelling or current events. It is all about leveraged leasing, and readers are assumed to have a good background in leasing in general, as a minimum requirement for delving in. Just click on the link below.

 

 I promise, it will be a hard ride, the horses will come back wet, and you will have a headache and a sore back if you make it through. You will also have a great deal to think about.

 

Phil Tirino, CPA

 

 

http://www.nefinsys.com/YieldRevisited.asp

[Headlines]

 

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Classified Ads----Help Wanted

 

Accounting

 

Accounting: PricewaterhouseCoopers seeks executives with experience in equipment leasing to help clients improve their leasing businesses by assessing "as is" conditions and designing and implementing solutions to operational issues.  PwC also seeks CPA's with a broad based knowledge of FAS13 and familiarity with accounting for leases with simple and complex transaction structures. Email: anthony.g.anderson@us.pwc.com About the Company: PricewaterhouseCoopers, New York, NY.

 

Credit and Documentation Administrator

 

Credit & Doc. Admin. to assist with credit investigation, doc.prep., coordinate territory mgrs. Wayne, NJ fast growing lessor. Contact: Duane E. Rouba @ 800-848-7210 X 222.. About the Company: www.leasingpartnerscapital.com

 

Marketing Indirect Originator

 

MARKETING INDIRECT ORIGINATION: New York. One of the largest ind. equip.lessors needs  motivated, self-starter to purchase single investor leases from institutional investors; min.transaction  $1 million; portfolio of primarily investment grade lessees/good "story credits".  Min 3 yrs exp. sourcing/ originating leasing transactions, knowledge credit and pricing. E-mail: jobposting1@leasingnews.org

 

Middle Market Sales Representative

 

Middle Market Sales Rep.: exp. sales reps throughout country for middle market leasing/financing. Must have min.5-years exp. in “hard assets” ranging from 100K -$1.0MM generated from vendor and /or direct sources. Excel. benefits, base salary and commission program. Resumes to amandell@eqcorp.com . About the Company: A rapidly expanding Middle Market Leasing / Finance Company located in CT. Equilease Financial Services, Inc

Sales

 

Sales: Tired of working on commission and not getting your fair share of the split? We pay up to 60% of gross margin +residuals !! Contact Michael Wagner @ 949-250-0585 x222 or Fax: 949-250-8042. E-mail: mwagner@dimensionfunding.com About the Company: Dimension Funding, LLC Formed in 1979. Located on 17748 Sky Park Circle, Irvine, CA. 92614. Website: www.dimensionfunding.com

Syndicator

 

Syndicator: exp.credit packager/syndicator. min. 4-yrs evaluating, underwriting and /or syndicating transactions from 100K -$1.0MM. Outstanding opportunity, future growth, excellent benefits, base salary & bonus arrangement. Resumes: amandell@eqcorp.com . About the Company: A rapidly expanding Middle Market Leasing / Finance Company located in CT. Equilease Financial Services, Inc

Title Clerk

 

Title Clerk: exp. motor vehicle title clerk. Min. 3-years experience in titling, perfecting security interest commercial vehicles in various states. Comfortable work environment in fast growing company. Excel. salary & benefit package. Resumes: amandell@eqcorp.com About the Company: A rapidly expanding Middle Market Leasing / Finance Company located in CT. Equilease Financial Services, Inc

[Headlines] 

####  Press Release ###########################

 

Cindy Fleck New Director West Region  Sales for U.S. Bancorp Manifest

 

 

Marshall, MN –

 

U. S. Bancorp Manifest Funding Services has named Cindy Fleck as Director of Sales for the West.  Brad Peterson, Senior Vice President and General Manager of Manifest Funding Services made the following announcement to employees on Monday, April 5th. 

 

“I am very pleased to announce that Cindy Fleck has accepted the position of Director of Sales - West for Manifest Funding Services.  Cindy has been with Manifest for over 13 years and brings incredible knowledge and leadership to her new role.  Cindy has had a tremendous track record of success at Manifest, beginning in Credit continuing into Sales and most recently as Director of Marketing.  Her commitment and dedication to servicing our customers will be valuable in her new role.”

 

 

 

Cindy graduated from Southwest State University in 1992 with a degree in Accounting and a minor in Business.  In 1990, she began her career with Manifest in our Credit department advancing to Account Executive and was promoted to Credit Manager in 1995. 

 

In 1998, Cindy joined the Manifest Sales team as the South Central Regional Sales Manager.  In her two years as RSM, Cindy was instrumental in growing existing relationships and building new ones that allowed Manifest to double our volume from that Region. 

 

In early 2000, Cindy and her husband, Steve, had their first of two boys.  To allow her more time with her young family, she moved into the Southwest Region as a Broker Services Representative.  Over the next two years she was a key player that led the Southwest Region to unprecedented growth for Manifest.

 

For the past two years, Cindy has served as the Director of Marketing for Manifest.  She has been involved in almost every aspect of our business, including the development of products and services that are focused on the success of our customers.  She has many unique qualities that have made her successful in this position, most important of which is an incredible focus on our customers. 

 

“I am excited to have her experience and strong leadership skills devoted to the West Sales team and to our customers,” Peterson said.

 

“Please join me in congratulating Cindy as she accepts the position of Director of Sales for the West.  I have an enormous amount of confidence in her abilities and look forward to Cindy and her team continuing to grow our successful relationships in the West.” 

 

Brad Peterson

General Manager

 

About Manifest Funding Services

 

Established in 1987, U.S. Bancorp Manifest Funding Services specializes in financing equipment through a network of independent finance brokers and lessors. It strives to be the premier funding source in the business equipment finance industry by emphasizing long-term relationships and innovative products that are focused on the success of the independent broker and lessor.  

 

 

Corporate Contact:
        Brad Peterson, Senior Vice President and General Manager, Manifest Funding Services

        507-532-7194 - jb.peterson@manifestfunding.com

[Headlines]

 

####  Press Release ################################

 

CIT Announces Quarterly Dividend for First Quarter 2004

 

 

    LIVINGSTON, N.J.,  -- CIT Group Inc.(NYSE: CIT) announced that its Board of Directors has declared a regular uarterly cash dividend of $.13 per share, payable on May 28, 2004, to shareholders of record on May 14, 2004.

 

    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 nearly $50 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.  CIT, a Fortune 500 company, holds leading positions in vendor

financing, U.S. factoring, equipment and transportation financing, Small

Business Administration loans, and asset-based and credit-secured lending.

CIT, with its principal offices in Livingston, New Jersey and New York City,

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.

 

SOURCE  CIT Group Inc.

[Headlines]

 

### Press Release ####################################

 

Greater Community Bancorp Reports First Quarter 2004 EPS of $0.25, up 19.1%

 

 

TOTOWA, N.J.----Greater Community Bancorp (NASDAQ:GFLS)reported net income for the first quarter of 2004 of $1.8 million, an increase of 11.0% over the $1.6 million reported for the first quarter of 2003. Diluted earnings per share were $0.25, an increase of 19.1% over the $0.21 reported for the prior-year first quarter.

 

   Anthony M. Bruno, Jr., Chairman and CEO of Greater Community Bancorp, commented, "Our improved earnings this quarter reflect the measures we implemented in 2003 to grow our loan portfolio, reposition our leasing business and expand our deposit base. Although our environment remains highly competitive, loan growth was 20.2% ahead of last year's first quarter, led by commercial real-estate, construction loans and our growing portfolio of lease receivables. Our net interest margin continues to expand. We are more effectively leveraging our lending relationships and we are pleased to achieve strong growth in income from commissions, fees and service charges on deposits. Importantly, we are growing the balance sheet and building long-term revenue momentum while maintaining control over our expense levels."

 

   Total revenue, consisting of net interest income and non-interest income, was $8.5 million for the first quarter of 2004, an increase of 4.7% over the prior-year first quarter. Net interest income increased 6.4% to $7.0 million, reflecting growth in average earning assets of 6.5% for the same period. The net interest margin was up 11 basis points from the prior quarter. Mr. Bruno added that margin improvement was derived from a decline in premium amortization and a shift in earning asset mix, as well as a one-time $200,000 prepayment penalty.

 

   Non-interest income for the first quarter of 2004 was $1.6 million, a 2.5% decline from the first quarter of 2003. Excluding securities gains and gains from the sale of assets, non-interest income was $1.27 million compared to $1.31 million in the prior-year quarter. Strong growth in commissions and fees from brokerage services and service charges on deposits was offset by declines in mortgage banking income, bank-owned life insurance income and other income.

 

   Non-interest expense totaled $5.6 million for the first quarter of 2004, an increase of 1.5% over the first quarter of 2003. Salaries and benefits rose 6.5%, reflecting annual compensation adjustments and rising health care costs, partially offset by a 13 person decline in the number of full-time equivalent staff. Excluding personnel costs, the remaining categories declined 4.4% as the Company effectively controlled its expense structure. The efficiency ratio improved to 67.6% from 69.9% in last year's first quarter.

 

   At March 31, 2004, assets were $792.0 million, an increase of 7.6% over March 31, 2003. Loan and lease balances grew $88.7 million year-over-year, or 20.2%, and consisted primarily of commercial real estate loans, up $57.5 million or 28.3%; construction loans, up $9.4 million, or 32.4%; and lease receivables, up $8.4 million or 30.1%. Loan growth was funded through a combination of deposit growth and the sale of investment securities. Deposits increased 9.3%, and included 8.0% growth in non-interest bearing deposits. Core deposits now constitute 67.9% of total deposits.

 

   Mr. Bruno noted, "Asset quality remains sound, with a net recovery recorded for the quarter. Although non-performing assets are trending upward moderately over the last two quarters, they are keeping pace with overall growth in our loan and lease portfolio. We are comfortably reserved against our current non-performing levels." The Company experienced a net recovery of $72,000 this quarter compared to net charge-offs of $43,000 in the prior quarter. Non-performing assets were 0.38% of total assets at March 31, 2004, down from 0.45% twelve months ago and 0.34% for the prior quarter. Loan and lease loss reserves were 1.63% of period-end loans, representing 2.82 times the level of non-performing assets plus 90-day delinquencies.

 

   Shareholders' equity totaled $53.8 million at March 31, 2004, up 4.5% from twelve months ago. Shares outstanding at quarter-end were 7,153,000. Cash dividends per share paid during the quarter were $0.11. 

 

   About the Company 

 

   Greater Community Bancorp is a $792 million financial holding company headquartered in Totowa, New Jersey. The Company operates fifteen branches in the northern New Jersey counties of Bergen, Passaic and Morris through its three state-chartered commercial bank subsidiaries: Greater Community Bank, Bergen Commercial Bank and Rock Community Bank. They provide traditional commercial and retail banking services to small businesses and consumers in New Jersey. The Company also owns two non-bank subsidiaries: Greater Community Financial and Highland Capital Corp., an equipment leasing and financing subsidiary. 

CONTACT:Greater Community Bancorp, Totowa Anthony M. Bruno, Jr., 973-942-1111 x 1001 anthony.bruno@greatercommunity.com  or Margolin & Associates, Inc. Linda Margolin, 216-765-0953 lmm@margolinIR.com

 

[Headlines]

 

#### Press Release ##################################

 

 

Hansabank to Expand Leasing Operations in Russia

 

 

TALLINN, Finland,  -- Indrek Neivelt, Hansabank Group CEO, gave an overview of the Group's Russian strategy at the annual general meeting of shareholders held today in Tallinn. He informed the shareholders that Hansabank is analysing the possibilities for gradually expanding the Group's presence in the Russian market. The Group believes that under current market conditions an optimal limit for Russian risk is 10% of the Group risk-weighted assets.

 

In the medium-term Hansabank's strategy includes having leasing operations and a small bank in the Russian market. As a result the Group is analysing possibilities for entering the Russian banking market either through an acquisition or a greenfield start-up. Indrek Neivelt, "Our current Russian assets form approximately 5% of the Group risk-weighted assets. We believe that under current market conditions we can raise the limit to 10%, which still remains on the conservative side. We see several opportunities on the Russian financial market, but also bear in mind to limit the risks on an acceptable level."

 

The Group's current activities in Russia have been very successful. The portfolio of Hansa Leasing Russia -- a company established at the end of 2002 to finance the Russian transit sector -- has grown to USD 153 million. The portfolio of trade finance, which mainly serves Russian exporters, amounts to USD 70 million. This spring Hansabank will establish a new leasing company, which will start to provide financing also for other asset groups, such as equipment and real-estate. The new company will focus on the Moscow and St. Petersburg region.

 

Additional information: 

Indrek Neivelt 

Hansabank Group, CEO 

372 6131 372

Mart Toevere

Head of Corporate Communications and IR

Tel. +372 613 1569

SOURCE  Hansapank AS

CO:  Hansapank AS

ST:  Finland, Russia

 

Web site:  http://www.hansagroup.com

 

[Headlines]

#### Press Release ############################

 

National Commerce Bank Services Announces New Division

 

 

MEMPHIS, Tenn.----National Commerce Bank Services, Inc. (NCBS), the pioneer of in-store banking and a leading retail bank consulting group, today announced the launch of a new division, NCBS Strategic Marketing Solutions, which focuses on target marketing and customer retention programs for retail banks.

 

   NCBS Strategic Marketing Solutions creates marketing programs to acquire new customers, or working with a bank's existing customer data files, to cross-sell current customers and stem customer and deposit attrition.

 

   "This was a logical next step for us," explains Clifford Y. Davis, president of NCBS. "For more than 15 years, we have been improving the performance of our client retail banks by completely focusing on growth through in-store expansion. Our new division fits right in with that core competency. Now, in addition to physical expansion, we can boost growth by assisting banks in attracting and retaining profitable customers."

 

   While virtually all U.S. financial institutions now have sophisticated customer databases, banks have not fully utilized the potential of their information systems. In many cases, they simply do not have the necessary budgets, expertise, or staffing in place to make the best use of their in-house data to develop profitable marketing campaigns. As a result, direct mail efforts at most banks can be unfocused, ineffective, and costly.

 

   "Through detailed data analysis, we offer a single source solution with proven results and greatly enhanced response rates," adds Davis. "We remove the pain in creating and implementing a direct marketing effort." According to Davis, on a per unit basis, NCBS reduces the expense of direct mail campaigns while increasing penetration, thus growing the business and increasing market share.

 

   The new division is headed by Robert Arndt, first vice president and group manager. "We think of ourselves as a 'Special Ops' group," says Arndt. "We're fast and efficient - we get in, understand the bank's budget and objectives, and quickly get the job done."

 

   NCBS Strategic Marketing Solutions was spun out of the customer data department of National Bank of Commerce (NBC), the lead banking subsidiary of National Commerce Financial. "We have a thorough understanding of bank database modeling and analytics, and years of experience in developing tested and proven programs," says Arndt. "The combination of our experience, sophisticated technology and streamlined processes allows us to create programs efficiently and affordably."

 

   By identifying profitable segments of a potential customer base, NCBS Strategic Marketing Solutions has developed acquisition programs that have achieved response rates between .5 and 2.5 percent, with returns as high as four times investment.

 

   Equally impressive results have been achieved in customer cross-sell programs. "We not only determine which customers can be profitably cross-sold, but also ensure that each customer gets offered the right product, at the right time, and over the right channel," says Arndt.

 

   Customer cross-sell programs developed by NCBS Strategic Marketing Solutions have resulted in response rates of up to 5 percent with a return on investment of up to eight times.

 

   NCBS Strategic Marketing Solutions has partnered with Synapse Technology of Charlotte, North Carolina, for its customer and deposit retention offering. Synapse Technology uses a proprietary system that reviews a bank's daily transactions to identify customers who appear to be at risk of withdrawing deposits or leaving the bank altogether.

 

   "Synapse Technology has developed the most effective early warning system on the market to proactively alert banks on a daily basis to potential customer attrition or diminishing deposit balances," says Arndt. "Partnering with Synapse Technology has enabled us to provide a superior retention solution to our clients."

 

   NCBS Strategic Marketing Solutions also provides on-site training for the Synapse system. "It's technology training, but from a banker's perspective, which is crucial to banks truly adopting the system and incorporating it into their existing processes."

 

   "We're uniquely positioned to understand what banks are looking for. We know the tremendous pressures they face to increase profits under very tight budgets," adds Davis. "We're bankers... we get it." 

 

   About NCBS 

 

   NCBS is an in-store bank consulting resource for financial institutions and retailers worldwide. A pioneer in the implementation and execution of in-store financial services, NCBS provides consulting on in-store bank programs, leasing, training, facilities and facilitating retailer partnerships.

 

   NCBS is a subsidiary of National Commerce Financial Corporation (NYSE:NCF), a sales and marketing organization that delivers select financial and consulting services through a national network of banking and non-banking affiliates. With $23 billion in assets, NCF operates nearly 500 branches in 14 of the nation's fastest growing metropolitan areas throughout the southeast.

 

CONTACT:National Commerce Bank Services, Inc. Media: Eileen Sarro, 901-523-3605 Rob Arndt, 919-683-7441; 919-270-5426 (cell)

 

SOURCE: National Commerce Bank Services, Inc.

 

04/20/2004 12:01 EASTERN

[Headlines]

 

######  Press Release #################################

 

 

Mediation Gains Ground as Cost-saving Option For Resolving Disputes, Avoiding Litigation

 

Glenbrook, Nev., — At the crest of the technology bubble, when cash flowed to almost any idea, no one worried about deals going bad. When they did, they just called their lawyers and moved on to the next big deal,” says Paul Bent, The Alta Group’s new mediation specialist.

 

“Needless to say, there is much more intense attention paid now to the cost of handling problems through litigation.  Just ask the big law firms; they’re open to mediation today,” Bent notes.

 

The Department of Justice (DOJ) has seen an 82 percent increase in the number of cases resolved using alternative dispute resolution (ADR) over the past seven years. In 1995, there were 509 processed cases using ADR. This figure leapt to 2,866 in 2002, according to the department's Office of Dispute Resolution. DOJ is using ADR to settle routine internal employment discrimination cases, personal injury suits against the government and other disputes.

 

The practice saves money. Law.com recently reported on a DOJ survey in 2000 of 828 Civil Division cases in which ADR was used. The survey shows that the government saved an average of $10,700 per case in litigation costs (such as witness fees and travel) and resolved cases six months earlier than normal.

 

Bent joined The Alta Group in January to help lessors resolve disputes, rescue troubled deals and preserve relationships without going to court. Bent says mediation can be used when a lease transaction is being negotiated, carried out or closed. He has more than 20 years experience developing, arranging, facilitating, managing, negotiating and closing structured corporate financings and related business transactions. An attorney and investment banker, he launched his own mediation practice in 2001. Prior to that, he was founder, president and general counsel of GoodSmith & Co. Inc., a boutique investment banking firm specializing in large-ticket leasing.

 

John Deane, founding principal of The Alta Group, decided to pursue mediation training after seeing the value Bent’s skills brought to his consulting group and working on various litigation support projects. He completed the 40-hour mediation training program at the Steven Rosenberg Mediation Offices, Mill Valley, Calif. This qualifies him to serve on various court panels.

 

“It was a power experience,” says Deane. “It taught me that it is good to get uncomfortable in a meeting so people can deal with it and get beyond it,” Deane says. He also learned that both sides have to be committed to reaching a solution for it to work.

The program developed skills which Deane says would have been valuable in many of the situations he’s faced throughout his business career and are important to The Alta Group’s clients today.

 

Lessors are feeling squeezed by years of turmoil inside and outside the equipment leasing industry. With the Equipment Leasing Association’s latest Survey of Industry Activity indicating contraction, decreased profitability and deteriorating return on equity and return on asset, lessors are eager to conserve time, money and goodwill and both lawyers and executives are more receptive to mediation.

 

It used to be perceived as touch-feely, or people just didn’t understand it,” says Bent.  “Today people are more cognizant of the fact that litigation is extremely expensive and time consuming and eats away at a company's resources -- resources that may be preserved by using mediation,” he adds.

 

The Alta Group’s mediation services include:

 

*Facilitating difficult negotiations when the deal is about to close but suddenly starts to go off the rails.

 

*Mediating disputes that arise during the lease term, whether from failure to pay, breach of covenants, misuse of collateral, or for any other reason.

 

*Assisting with end-of-lease issues by bringing a neutral third party perspective to issues of valuation, contract interpretation, renewals, or extensions.

 

###

 

The Alta Group (www.thealtagroup.com) is an international consulting and training firm serving the equipment leasing and finance industry with offices in the United States, Europe and Latin America.  It is composed of more than 20 professionals--former CEOs, company founders, and industry organization leaders--who collectively have more than 600 years of experience. The company was founded in 1992 by Norm Chapman, John Deane, John Giddens and Bill Montgomery.

 

Contact:

Susan Carol Associates

Celebrating 15 Years in Communications

www.scapr.com

(540)659-0843

[Headlines]

 

##### Press Release #############################

       

CFNB Reports 21% Increase in Third Quarter Earnings

 

 

IRVINE, Calif.----California First National Bancorp (NASDAQ:CFNB) ("CalFirst Bancorp") announced net earnings of $2.8 million for the third quarter ended March 31, 2004, a 21% increase from net earnings of $2.3 million for the third quarter of fiscal 2003. Diluted earnings per share for the third quarter increased 19% to $0.25 per share, compared to $0.21 per share for the third quarter of the prior year, reflecting the impact of a slightly greater number of fully diluted shares. For the nine months ended March 31, 2004, net earnings decreased 8% to $7.5 million, compared to $8.2 million for the first nine months of fiscal 2003. Diluted earnings per share were $0.67 for the first nine months of fiscal 2004, down 8% from $0.73 per share reported for the same period of fiscal 2003.

 

   For the third quarter ended March 31, 2004, gross profit of $9.5 million increased 14% from $8.4 million reported for the third quarter of the prior year. This reflected a $240,000 decrease in net direct finance and interest income, which was offset by a $1.4 million increase in other income. The increase in other income is primarily due to a significant increase in the gain on sales of leased property, benefiting in part from a larger investment in leases reaching their end of term during the quarter. The 5% decrease in net direct finance and interest income to $4.9 million, compared to $5.1 million for the third quarter of fiscal 2003, reflects lower direct finance income resulting from lower yields earned on the investment in capital leases, despite an increase in average balances. The provision for lease losses was down, as the overall level of reserves required against problem leases did not increase during the period.

 

   For the first nine months of fiscal 2004, gross profit of $26.7 million increased 2% from $26.2 million reported for the same period of the prior year. The change reflected a $1.4 million increase in other income, which was offset by a $818,000 decrease in net direct finance and interest income. The increase in other income again resulted primarily from a large increase in gain on sales of leased property, offset by decreased income from sales type leases. The decrease in net direct finance and interest income to $14.1 million, from $14.9 million for the prior year period, reflected lower total direct finance and interest income, offset somewhat by a lower provision for lease losses. The decrease in total direct finance and interest income reflected a significant decrease in interest and investment income earned on liquid investments, along with lower direct finance income resulting from lower yields earned.

 

   During the third quarter, CalFirst Bancorp's selling, general and administrative ("S,G&A") expenses increased by 8% to $5.0 million, compared to $4.6 million during the third quarter of fiscal 2003. For the first nine months, S,G&A expenses were up 13% to $14.5 million, compared to $12.8 million reported for the first nine months of the prior year. The increase in S,G&A expenses for both periods is due to higher costs related to the development of the organization and expanded marketing programs.

 

   Commenting on the results, Patrick E. Paddon, president and chief executive officer, indicated that: "CalFirst Bancorp's results for the third quarter of fiscal 2004 show the benefit of improved performance from our investment in capital leases, while at the same time we continued to focus on developing new business. During the third quarter and first nine months of fiscal 2004, the volume of new leases originated increased by 50% when compared to last year. New leases booked during the third quarter also jumped considerably, and consequently, our investment in capital leases increased to $154.7 million, while transactions in process were still up by 37%. Growth in other income contributed strongly to improved profit comparisons, due mostly to higher income from sales of leased property, and in part to a portfolio of leases reaching the end of term during fiscal 2004 comparable in magnitude to the prior year. During the third quarter ended March 31, 2004, CalFirst Bank recorded a meaningful profit, and is profitable on a year to date basis as well."

 

   California First National Bancorp is a bank holding company with leasing and bank operations based in Orange County, Calif. California First Leasing Corporation leases and finances computer networks and other high technology assets through a centralized marketing program designed to offer cost-effective leasing alternatives. California First National Bank ("CalFirst Bank") is a FDIC-insured national bank that gathers deposits using telephone, the Internet, and direct mail from a centralized location, and will lease capital assets to businesses and organizations and provide business loans to fund the purchase of assets leased by third parties.

 

CONTACT:California First National Bancorp, Irvine S. Leslie Jewett, 949-255-0500 ljewett@calfirstbancorp.com

[Headlines]

 

#### Press Release ###############################

 

Greater Bay Bank 1^st Quarter 2004 Results

 

PALO ALTO, Calif.----Greater Bay Bancorp (Nasdaq:GBBK), a $7.6 billion in assets financial services holding company, today announced results for the first quarter of 2004.

 

   For the first quarter of 2004, Greater Bay Bancorp's net income was $24.9 million, or $0.43 per diluted share, compared to $21.4 million, or $0.37 per diluted share, for the fourth quarter of 2003. This result for the first quarter of 2004 compared to $25.1 million, or $0.45 per diluted share, for the first quarter of 2003. Based on net income for the first quarter of 2004, Greater Bay Bancorp's return on average common equity was 14.82% and return on average assets was 1.32%. For the fourth quarter of 2003, net income resulted in a return on average common equity of 13.05% and a return on average assets of 1.10%. For the first quarter of 2003, net income resulted in a return on average common equity of 16.60% and a return on average assets of 1.28%.

 

   The $0.06 increase in earnings per diluted share for the first quarter of 2004 compared to the fourth quarter of 2003 was primarily attributable to the following items: 

 

   --  Lower provision for loan losses, due to improving credit
         quality, contributed approximately $0.05 per diluted share,
         net of tax. 

 

   --  Increased non-interest income of $6.9 million, primarily due
         to ABD's seasonal override commissions and higher gains on
         investments. This contributed approximately $0.08 per diluted
         share, net of tax. 

 

   --  These increases were partially offset by added personnel
         costs, which were largely associated with seasonal accruals
         and benefits, plus a contribution to the Greater Bay Bancorp
         Foundation ("Foundation") which combined to reduce earnings by
         approximately $0.07 per diluted share. 

 

   The $0.02 decline in earnings per diluted share for the first quarter of 2004 compared to the first quarter of 2003 was primarily attributed to the following items: 

 

   --  The decline in interest earning assets, which was partially
         offset by the increase in the net interest margin, resulting
         in a decrease of approximately $0.02 per diluted share, net of 
        tax. 

 

   --  Increased operating expenses related to ABD's acquisition of
         the Sullivan & Curtis Insurance Agency ("S&C") in the third
         quarter of 2003, higher personnel expenses (due to incentive
         accruals, employee-related insurance and recruiting costs), 
        increased depreciation on equipment leased to others and an
         increase in the funding of the Foundation collectively
         resulted in a decline in earnings of approximately $0.08 per
         diluted share. 

 

   --  This decline was partially offset by increased non-interest
         income, primarily due to ABD's growth in revenue stemming from
         its acquisition of S&C and to the lower provision for loan
         losses which combined to increase earnings by $0.08 per
         diluted share, net of tax. 

 

   "We are pleased to report another quarter of solid operating performance," commented Byron A. Scordelis, President and Chief Executive Officer. "In spite of a rise in operating expenses that was largely due to seasonally incurred personnel costs, our first quarter earnings rose by 16% versus the fourth quarter of 2003. Our non-interest margin continued to expand, and non-interest income from ABD continued to grow. We are also encouraged to note measurable improvements in key credit metrics which we believe to be reflective of our sustained adherence to our relationship-based orientation and disciplined credit principles." 

 

   Non-interest Income 

 

   Non-interest income for the first quarter of 2004 increased to $47.5 million from $44.8 million in the first quarter of 2003. The increase was primarily due to increases in insurance agency commissions and fees of $3.9 million partially offset by a decrease of $1.1 million in gain on sale of loans.

 

   Non-interest income as a percentage of total revenues was 38.64% for the first quarter of 2004 compared to 35.02% and 37.02% for the fourth quarter and first quarter of 2003, respectively. 

 

   Operating Expenses 

 

   Operating expenses increased approximately $6.0 million in the first quarter of 2004 from the fourth quarter of 2003. The increase was due primarily to FICA tax increases of $2.5 million, a $900,000 Foundation contribution, and $1.4 million in increased incentive-related accruals.

 

   Operating expenses increased by $6.7 million during the first quarter of 2004 from the first quarter of 2003. The increase was due primarily to operating expenses of $2.7 million related to S&C, an increase in incentive accruals of $411,000, increases in medical and workers' compensation insurance of $659,000, an increase in depreciation on equipment leased to others of $1.2 million due to the growth of the Company's leasing business, and a contribution to the Foundation of $900,000. 

 

   Balance Sheet 

 

   At March 31, 2004, Greater Bay Bancorp's total assets were $7.6 billion, total loans were $4.4 billion, total investments were $2.2 billion, and total deposits were $5.2 billion.

 

   Total loans declined by $283.0 million from March 31, 2003 to March 31, 2004 and by $101.6 million from December 31, 2003 to March 31, 2004. The year-over-year decline was primarily attributable to a decline of $224.3 million in the construction and land loan portfolio which is reflective of the relatively diminished level of this activity in the Company's primary serving areas. In addition, the size of the Shared National Credit ("SNC")/corporate finance portfolio declined by $27.6 million which is consistent with the Company's orderly withdrawal from this activity. Total SNC outstandings stood at $15.1 million as of March 31, 2004 involving three remaining credits.

 

   Total core deposits (excluding institutional time deposits) rose by $277.3 million compared to March 31, 2003 and by $183.8 million compared to December 31, 2003. This represents a year-over-year growth rate of 6.20% and an annualized growth rate of 16.20% when compared to December 31, 2003. Total deposits declined by $340.3 million versus March 31, 2003 and by $131.2 million versus December 31, 2003 which is consistent with the Company's reduced need to fund its investment portfolio with institutional time deposits during those periods.

 

   From March 31, 2003 to March 31, 2004, total investments declined by $250.8 million which was consistent with the Company's stated goal to move toward a more asset sensitive balance sheet structure. Total investments declined by $52.2 million compared to December 31, 2003.

 

   Mr. Scordelis commented, "The decline in outstanding loans is consistent with what we perceive as a continued softness in regional demand. We are continuing our aggressive pursuit of new business opportunities, but will not compromise our credit standards and principles in that process. In the deposit area, we are pleased by the continued growth in our core totals as it enables us to be less reliant on institutional deposits, and provides us with an effective base to manage our balance sheet when regional growth accelerates." 

 

   Credit Quality Overview 

 

   Net charge-offs in the first quarter of 2004 were $5.6 million, or 0.50% of average annualized loans, compared to $6.3 million, or 0.54%, one year ago and $9.3 million, or 0.81%, for the quarter ending December 31, 2003. Non-performing assets of $49.2 million for the first quarter of 2004 decreased from $61.7 million at December 31, 2003 and increased from $40.3 million at March 31, 2003. The ratio of non-performing assets to total assets was 0.64% at March 31, 2004, compared to 0.81% at December 31, 2003 and 0.51% at March 31, 2003. The ratio of non-performing loans to total loans was 1.08% at March 31, 2004, compared to 1.36% at December 31, 2003 and 0.79% at March 31, 2003.

 

CONTACT:Greater Bay Bancorp Byron A. Scordelis, 650-614-5751 Steven C. Smith, 650-813-8222   or Silverman Heller Associates Philip Bourdillon/Gene Heller, 310-208-2550

[Headlines]

 

 

News Briefs---

 

World Economy Is Starting to Bloom, IMF Says, Projecting Strong Growth

http://www.washingtonpost.com/wp-dyn/articles/A32529-2004Apr21.html

 

Greenspan Tells Congress Rates Will Rise

http://apnews.myway.com/article/20040421/D82388A80.html

 

Western Farmers Cope With Drought Again

http://www.washingtonpost.com/wp-dyn/articles/A33093-2004Apr22.html

 

[Headlines]

 

“Gimme that Wine”

 

Screw Tops Gain Acceptance Worldwide—Frank J. Prial

http://www.nytimes.com/2004/04/21/dining/21WINE.html

 

New wine makes Canadian history

http://www.canada.com/edmonton/edmontonjournal/columnists/story.html
?id=5c2d6d05-7671-4351-9f16-5cfce109aaf7

 

Developer buys $9.5M Manteca mansion

http://www.recordnet.com/articlelink/041904/news/articles/041904-gn-8.php

 

Napa crops rose in value in 2003

http://www.napanews.com/templates/index.cfm?template=story_full&id=
F279F85B-9131-48C4-B2B9-6A717F69AF41

 

A Strong Year For California Wine Shipments

http://www.winesandvines.com/headline_04_20_04_year.html

 

Earnings Rose 92% for EBay in Quarter

http://www.nytimes.com/2004/04/22/business/22ebay.html

[Headlines]

 

 

 

This Day in American History

 

    1836-Battle of San Jacinto, in which Texas won independence from Mexico. A 570-foot monument dedicated on the 101st anniversary of the battle, marks the site on the banks of the San Jacinto River, about 20 miles from present city of Houston, TX, where General Sam Houston's Texans decisively defeated the Mexican forces led by Santa Ana in the final battle between Texas and Mexico.

http://www.lsjunction.com/events/jacinto.htm

http://www.sanjacinto-museum.org/

http://www.tsha.utexas.edu/handbook/online/articles/view/SS/qes4.html

    Today is "Kindergarten Day," a day to recognize the importance of play, games and "creative self-activity" in children's   Observed on the anniversary of the birth of Freidrich Froebel, in 1782, who formed the first kindergarten in 1837.  German immigrants brought Froebel's ideas to the US in the 1840s. The first kindergarten in a public school in the US was started in 1873, at St. Louis, MO.       

    1838-American naturalist, explorer, conservationist and author John Muir birthday, born at Dunbar Scotland, emigrated to the US in 1849,where he urged establishment of national parks and profoundly influenced US forest conservation.   The 550-acre Muir Woods National Monument in Marin County

(Mill Valley)name after him. In 1892, he and several other early preservationists formed the Sierra Club. Muir served as the club president for 22 years, tirelessly advocating the importance of preserving wilderness as a place where thousands of "tired, nerve-shaken, over-civilized people" could find spiritual and physical rejuvenation. It is hard to overestimate Muir's influence in fostering modern concepts of wilderness appreciation and protection. However, in practical terms, Muir and the Sierra Club lost several of their battles to protect the wilderness. From 1908 to 1913, Muir fought fervently against the proposed construction of the Hetch Hetchy dam in Yosemite National Park, which was being built to provide a reservoir of water for the city of San Francisco. Muir railed against his opponents, calling them "temple destroyers" and "devotees of raging commercialism," but to no avail--the dam was built and water covers the Hetch Hetchy Valley today.

http://www.sierraclub.org/john_muir_exhibit/

http://www.visitmuirwoods.com/

http://www.jmt.org/

http://www.sfgate.com/getoutside/1996/apr/muirwoods.html

    1869- President Ulysses S. Grant appointed Brigadier General Ely Samuel Park, who served as his military secretary during the Civil War, to the post of commissioner of Indian Affairs.  He was the first Native American Indian ever appointed

to be superintendent of Indian Affairs.

    1878,Captain David B. Kenyon of Engine Company No. 21, New York City, installed the first firehouse pole. A hole was cut in an upper floor to accommodate a greased pole three inches wide that extended between the two stories, to enable the firemen to slide down the pole instead of using the stairs.     

    1918- German flying ace Baron Manfred von Richtofen was shot down and killed during the battle of the Somme. .The 'Red Baron," so named for the color of his Fokker triplane, was credited with 80 kills in less than two years. Royal Flying Corp pilots recovered his body and the Allies buried him with full military honors.

    1922 Mundell Lowell Birthday

http://www.spaceagepop.com/lowe.htm

http://www.mundelllowe.com/

http://www.shs.starkville.k12.ms.us/mswm/MSWritersAndMusicians/
musicians/MundellLowe/Lowe.html

    1966-Pres. Johnson in 1966 presented the Medal of Honor awarded posthumously in the Vietnam War to the first African American soldier, Private. First Class Milton Lee Olive, III, Company B, 503rd Infantry, 173rd Airborne Brigade, who was killed when he grabbed an enemy grenade and fell on it to save the lives of four companions..

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Baseball Poem

 

BOB SHEPARD
Bill Lattanzi

Transmigratory birds -
Orioles, Jays, Cards -
In town one day, gone the next.
Our cities connect by rail by bus by train
By plane, by wire and less.
We move.
Born in the burbs, 90 miles from your
Calm, Bob Shepard:
"Now batting. The Centerfielder. Mickey Mantle."
And you were old then. Doing your crosswords,
Looking up at just the right moment, never
Missing a line. Your P.A. voice sitting
kindly between the squawk of the Scooter and
the Ol' Redhead, wised up, seen it all.

We migrate and grow by rail and plane and
PF Flyer - running faster, jumping higher -
Now we're minutes from Fenway, and
Sox fans, too. Proof that peace is possible;
It's all a game. And with my sons
We sit, ghost of my Dad and we and them and watch
Rootless and rooted, rooting,
And listen for you, Bob Shepard, 87 I think you are, still there,
In between clever McCarver and professional Buck.
Look up, Bob. Look up.
"Number 2. The shortstop. Derek Jeter. Jeter."
The game goes on.

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