Semi-Official: Popular Equipment Financial sold to TCF Financial

It appears that the long rumored but little reported upon acquisition of Popular Equipment Finance's lease portfolio by TCF has occurred. If you attempt to go to either www.popfinance.com or www.poplease.com you will be redirected to the TCF website.

January 12, 2009 Leasing News announced that Popular Finance was sold to TCF. There still is no official word, even in February 16,2009 10-K filing or the latest from Puerto Rico:

Popular, Inc., Puerto Rico, announced today a series of actions, in a press release stating:

"The Board of Directors reduced the quarterly cash dividend to $0.02 cent per common share. The Board believes that increasing the capital base is a prudent action in face of the prospect of worsening economic conditions. The reduction in the cash dividend will generate an additional $68 million of capital a year.

"In addition, Popular also continues to adopt aggressive cost-reducing measures that are expected to generate savings of approximately $34 million annually. A hiring and salary freeze across the Corporation continues in effect."

TCF Financial Corporation reported in their 10K filed February 16,2009:

"Operating Segment Results BANKING — Consisting of deposits, investment products, commercial banking, small business banking, consumer lending and treasury services, reported net income of $105.3 million for 2008, down 54.6% from $232.1 million in 2007. Banking net interest income for 2008 was $514.6 million, up 6% from $485.5 million for 2007."

"LEASING AND EQUIPMENT FINANCE — An operating segment composed of TCF's wholly-owned subsidiaries TCF Equipment Finance and Winthrop Resources, provides a broad range of comprehensive lease and equipment finance products. Leasing and equipment finance reported net income of $30.3 million for 2008, down 12.4% from $34.6 million in 2007. Net interest income for 2008 was $79.8 million, up 22.1% from $65.4 million in 2007.

"The provision for credit losses for this operating segment totaled $17.2 million in 2008, up from $5.3 million in 2007. The increase in the provision for credit losses from 2007 to 2008 was primarily due to increased net charge-offs, which included a $2.1 million one-time recovery of a previously charged-off lease in 2007, and increased delinquency and non-accrual loans and leases.

"Leasing and equipment finance non-interest income totaled $55.5 million in 2008, down $3.6 million from $59.2 million in 2007. The decrease in leasing and equipment finance revenues for 2008, compared with 2007, was primarily due to a decrease in sales-type lease and operating lease revenues.

"Leasing and equipment finance non-interest expense totaled $68.5 million in 2008, up $3.2 million from $65.4 million in 2007, primarily related to a $1.2 million net effect of foreign exchange losses in 2008 on foreign denominated loans compared with foreign exchange gains in 2007 and an increase of $1.3 million in expenses associated with repossessed assets."

Popular Equipment Finance Story:

http://www.leasingnews.org/archives/January%202009/01-12-09.htm#pop