Leasing News - information, news, education and entertainment for the commercial bank, finance and leasing industry

You May Have Missed ---
KeyBank to pay $190 million because of
Silicon Valley Bank, Signature Bank failure

######## surrounding the article denotes it is a press release, it was not written by Leasing News nor has the information been verified, but from the source noted. When an article is signed by the writer, it is considered a byline. It reflects the opinion and research of the writer.

New Hires/Promotions in the Leasing Business
and Related Industries

Ashley Hayes was hired as Lease Administrator, PEAC Solutions, Mount Laurel, New Jersey. She is located in Conroe, Texas. Previously, she was Lease Administrator, Xerox Financial Services at Xerox Corporation (March, 2017). She joined MRC Smart Technology Solutions, a Xerox Company, August 2008, Dispatch, promoted Order Administration, March 2010, promoted Operations Manager (April, 2013 February, 2017).
https://www.linkedin.com/in/ashley-hayes-1673a645/

Paul "PJ" McElroy was hired as Senior Vice President, East Region, DLL, Philadelphia, Pennsylvania. Previously, he was Vice President, Equipment Finance Officer, KeyBank Commercial (March, 2022 - January, 2024); SVP, Direct Sales, DLL (September, 2019 - April, 2022); Business Development Manager, Siemens (September, 2015 - September, 2019); Vice President, Key Equipment Finance (August, 2015 - August, 2015); Business Development Manager, Siemens (September 2016): Vice President, Key Equipment Finance (August, 2015 - August, 2016). He began his career at GE Capital, starting April, 2004, Sales Representative, promoted June, 2009, Dealer Support, Senior Vice President (March 2011 - July, 2015) 11 years, 4 months.
https://www.linkedin.com/in/pjmcelroy/

Steve Nippak was hired as Senior Vice President of Sales, Odessa, Toronto, Ontario. Previously he was Executive VP of Sales, Country Manager, Canada & Europe, UPTIQ (November, 2021 - January, 2024); Vice President, Business Development ARGO (February, 2019 - October, 2021). Full Bio:
https://www.linkedin.com/in/stevenippak2020/details/experience/
https://www.linkedin.com/in/stevenippak2020/

Deana Redmond was promoted to Assistant Vice President, Asset Recovery, North Mill Equipment Finance, LLC., Norwalk, Connecticut. She is located in Salt Lake City Metropolitan Area. She joined North Mill September, 2021, Repossession Manager; Lease Return Manager, Aztec Financial (October 2020 - September, 2021). She joined Marlin Capital Solutions September, 2016, as Program Manager, Business Development Manager (July, 2018 - October, 2020); Finance Manager, Rush Enterprises, Inc. (May, 2010 - September, 2016); Sales Coordinator, Lake City International Trucks (October, 1991 - May, 2010) 18 years, 8 months.
https://www.linkedin.com/in/deanaredmond

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SBA Office of Advocacy Reports Weak Small Business
Loan Supply and Demand

In the last year and a half, bankers have been reporting tightened credit standards and weaker demand for C&I (commercial and industrial) and CRE (commercial real estate) loans. The SBA Office of Advocacy reports that loan demand has dropped more than it did around the pandemic.

Business lending grew between June 2022 and June 2023. Total C&I loans grew at a slower rate from the previous year; from 2.1% to 5.9% growth. Small business C&I loans ($1 million or less) grew by 2.6% after two consecutive declines. Outstanding bank lending to businesses.

The Office of Advocacy states that bank delinquency rates for both C&I and CRE loans remain near historic lows. For the first time since 2015, CRE loan delinquency rates surpassed C&I rates in the last quarter. Typically higher than C&I and CRE rates, credit card delinquency rates have been steadily increasing since 2021.

Among all lenders, small business loan approval rates have yet to fully rebound back to pre-pandemic rates. Traditional lenders have relatively flat approval rates between 2021 and 2023. Alternative lenders have had a slight increase in approval rates.

Source:
SBA Office of Advocacy Economic Bulletin

Coleman Report
28081 Marguerite Pkwy.
#4525, Mission Viejo, CA 92690
bob@colemanreport.com

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Losses in Securities Portfolios Remain Historically High
according to the Federal Reserve of Kansas City

• Unrealized losses in securities portfolios at community banking organizations (CBOs) have remained at historic levels since the Federal Open Market Committee began raising rates in 2022. As of 3Q 2023, few CBOs have realized these losses through selling securities. These heightened levels of unrealized losses in the available-for-sale (AFS) securities portfolio, reflected in accumulated other
comprehensive income2, has caused tangible equity capital to remain at depressed levels compared to historical norms, though improved from the record low in 3Q 2022.

• Recent filings of large, publicly traded financial institutions have indicated more institutions are beginning to sell securities and realize losses as a strategic move to restructure the balance sheet and improve future earnings by reinvesting in higher yielding assets or paying down more expensive wholesale funding.

• While realized losses at CBOs from the sale of securities remain at historic norms and overwhelmingly within the AFS securities portfolio, more CBOs may begin to consider strategic restructuring, similar to larger banks.

Source:
https://www.kansascityfed.org/Community/documents/9965/Community_Banking_Bulletin_Highlight_-_Jan_2024_-_GL.pdf

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Leasing News Advisor
Randy Haug

Randy Haug | EVP/ Co-Founder
LTi Technology Solutions
w: 402.493.3445 ext. 1014
Mobile: 402-981-3155
rhaug@ltisolutions.com
www.ltisolutions.com

Randy Haug is the EVP, Vice Chairman, and Co-Founder at LTi. He is responsible for overseeing the market direction and strategies of LTi and serves as an advisor to clients regarding their business issues and strategies. He has spent the majority of his career in the equipment finance industry, working and mentoring LTi’s Executive Management Group, Divisional Managers, Product Managers, Sales, Account Managers, and Marketing team.

He is widely considered an industry thought leader and uses his consultative problem-solving and mentoring skills set to improve the lives of those at LTi as well as those in the industry with whom he collaborates with.

He also enjoys working with both of his sons in the business, who have become Subject Matter Experts and leaders in their own right. While EVP, Vice Chairman, and Co-Founder is his primary job function by day, Randy also loves traveling, as well as spending time with his family, friends, his grandson, and new granddaughter.

He is a member of the Equipment Leasing and Finance Association Board of Directors. He has participated in a number of different industry associations, including as a member of the Equipment Leasing and Finance Association, Advocacy Advisory Committee; Executive Committee Board Member & Development Committee Chair for Equipment Leasing and Finance Foundation (ELFF); Board of Trustee to ELFF; Past President of the National Equipment and Finance Association (NEFA); and Current Chair and Co-Founder of the Chris Walker Education Committee of NEFA. He has also participated in a number of different industry association committees in both the ELFA and NEFA associations and has been an industry speaker and panelist at a number of educational events within those associations.

Randy is a servant leader and has sat on board level positions in many industry companies and organizations. Randy had been involved in the Equipment Finance industry for 34 years while at LTI Technology Solutions, Inc. and its previously named LeaseTeam, Inc. company.

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Leasing and Finance Industry Help Wanted

Starbucks has 38,000 Locations Globally

Started in 1971 in Seattle, Washington, Starbucks is the second-most prolific quick-service brand in the United States.

Since then, Starbucks has spread to over 80 different countries in its mission to serve coffee (or another beverage of choice) to everyone who walks through their doors.

After all, that’s their primary revenue stream:

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Update on Compliance Under The Small
Business Data Collection Rule
By Sloan Schickler, Esq.

As previously reported, the the final Small Data Collection Rule promulgated under Section 1071 of the Dodd-Frank Act on March 30, 2023 (Rule 1071). Under this final rule, covered financial institutions are required to collect certain specific data points for reporting to the CFPB to determine practices related to lending to minority, women and LGBTQ+ owned small businesses.

Compliance dates under the rule are staggered commencing in October of 2024 for institutions with 2500 or more transactions to January 2026 for institutions with 100 such transactions in 2024 and 2025. However, on October 26, 2023, the United States District Court for the Southern District of Texas issued an injunction preventing the CPFB from enforcing the 1071 Rule. The stay was issued in a case brought by a consortium including the American Bankers Association. Several additional institutions intervened and succeeded in convincing the court that enforcement of Rule 1071 had to be delayed until the United States Supreme Court decides a pending case challenging the constitutionality of the CFPB. The Supreme Court will make its decision by about June of 2024. Until that time, the CFPB will not be able to enforce Rule 1071.

A covered financial institution is one that engages in financial activity and includes both depository and non-depository institutions such as online lenders, platform lenders, independent and captive equipment and vehicle finance companies and commercial finance companies. Motor vehicle dealers are exempt from compliance under the rule. Depending on your company’s activities it may be exempt.

Covered credit transactions are extensions of credit for business, commercial or agricultural purposes such as lines of credit and loans. True leases are among the transactions exempt from coverage.

Generally, the rule requires collection of data from businesses with $5 million or less in gross annual revenue for the preceding fiscal year.

Financial institutions are breathing a sigh of relief that the CFPB cannot enforce Rule 1071 for now. Some are asking whether they can postpone the compliance preparations which are complex. Depending on what happens with the Supreme Court case pending, it is very possible that Rule 1071 compliance will be necessary even if it is delayed. For this reason, you should not delay consulting legal counsel to determine whether Rule 1071 compliance is applicable to your company and the transactions it generates.

Originally appeared in NVLA LeaseWire

Sloan Schickler is a partner in the commercial finance law firm, Schickler & Schickler PLLC. Schickler, a veteran vehicle leasing, finance and bank attorney and the attorneys in her firm have decades of experience representing and protecting lessors, banks, captive and independent finance companies in all facets of the vehicle leasing and financing business. She has served as the NVLA Legal and Legislative counsel since 2017, is currently the only woman on the board of directors and is a supporter of Leasing News and sits on its Advisory Board. Sloan can be reached at sloan.schickler@schicklerlaw.com or 212-262-5297.

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Top Ten Leasing News Read by Readers
December 15 to December 19

(1) Equipment Finance Cares Announces
2024 Dates and Locations
https://leasingnews.org/archives/Jan2024/01_16.htm#cares

(2) Edward P. Kaye
Leasing News Advisor
https://leasingnews.org/archives/Jan2024/01_16.htm#kaye

(3) New Hires/Promotions in the Leasing Business
and Related Industries
https://leasingnews.org/archives/Jan2024/01_16.htm#hires

(4) New Hires/Promotions in the Leasing Business
and Related Industries https://leasingnews.org/archives/Jan2024/01_19.htm#hires

(5) A Look at the Funding Dilemma Caused by Accounting
Which Affects Banks and Use of Funds Available
By Dale R. Kluga, CPA, Experienced Funder
https://leasingnews.org/archives/Jan2024/01_19.htm#look

(6) Mexican Whiskey Is on the Rise,
Powered by Ancient Corn
https://www.nytimes.com/2024/01/11/dining/drinks/mexican-whiskey.html

(7) Macy’s to Cut About 2,350 Jobs
Close Five Stores
https://www.wsj.com/business/retail/macys-to-cut-about-2-350-jobs-close-five-stores-f7daac9d

(8) Latest batch of Criterion releases
By Leasing News' Fernando Croce
https://leasingnews.org/archives/Jan2024/01_19.htm#fernando

(9) Archives for the Current Month
(following the current archives, previous issues are filed by year,
then month, and day. You may also use the "search" feature
t o find a specific article in our archives.)
https://leasingnews.org/archives.htm

(10) Story Credit Financing
Business Loans, SBA Loans, Working Capital
https://leasingnews.org/archives/Jan2024/01_16.htm#sc

Special Editions

Dr. Martin Luther King JR.
Film Review/Movies, Watch at Home
by Fernando Croce, Leasing News Movie Reviewer
https://leasingnews.org/Pages/jan152024.html

Ken Greene, Leasing Person
of the Year for 2023
https://leasingnews.org/archives/Jan2024/01_17.htm

News Briefs

Home sales in 2023 were worst since 1995
as high mortgage rates slammed market
https://nypost.com/2024/01/19/business/existing-home-sales-in-2023-sank-to-lowest-levels-since-1995/

Delta reports record 2023 revenue,
$4.6 billion profit for the year
https://www.ajc.com/news/atlanta-airport-blog/delta-reports-record-2023-revenue-46-billion-profit-for-the-year/PC2BN3PHZJGMVDYOIFWUP4WPIE/

Teslas crash more than gas-powered cars
Here’s why
https://www.cnn.com/2024/01/18/business/why-do-people-keep-crashing-teslas/index.html

Why Does Coca-Cola Taste Better at McDonald's?
The Fast Food Chain Answers
https://www.yahoo.com/entertainment/why-does-coca-cola-taste-150848588.html

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KeyBank to pay $190 million because of
Silicon Valley Bank, Signature Bank failure
https://www.cleveland.com/news/2024/01/keybank-to-pay-190-million-because-of-silicon-valley-bank-signature-banks-failures-in-2023.html

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Sports Briefs---

Christian McCaffrey’s 2nd TD rallies 49ers
to 24-21 playoff win over Jordan Love and Packers
https://www.pressdemocrat.com/article/sports/christian-mccaffreys-2nd-td-rallies-49ers-to-24-21-playoff-win-over-jordan/

Stanford's Tara VanDerveer becomes winningest coach
in college basketball, passing Mike Krzyzewski
https://www.pressdemocrat.com/article/sports/stanfords-tara-vanderveer-becomes-winningest-coach-in-college-basketball/

Dusty Baker explains why he joined SF Giants:
‘The prodigal son wanted to come back home https://www.eastbaytimes.com/2024/01/21/dusty-baker-explains-why-he-joined-sf-giants-the-prodigal-son-wanted-to-come-back-home/’

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California News Briefs---

Oakland’s surging violence is
driving this In-N-Out at epicenter to close
https://www.sfchronicle.com/crime/article/oakland-in-n-out-18610993.php

End of a Bay Area era? Pittsburg’s steel mill idles
amid sale to Japanese company
https://www.mercurynews.com/2024/01/20/end-of-a-bay-area-era-pittsburgs-steel-mill-idles-amid-sale-to-japanese-company/

Half Moon Bay massacre: A year later, struggle
for better farmworker housing drags on
https://www.eastbaytimes.com/2024/01/21/half-moon-bay-massacre-a-year-later-struggle-for-better-farmworker-housing-drags-on/

Two centuries ago, 3 Californians crossed an ocean
and changed Hawaii forever
https://www.sfgate.com/hawaii/article/hawaii-cowboy-paniolo-history-18615187.phpr

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Gimme that Wine

http://www.youtube.com/watch?v=EJnQoi8DSE8

Wine & Grape Conference Season
East of the Rockies = Dates and Places
https://www.winebusiness.com/news/article/281992

California Wine Players See More
Consolidation Ahead
https://www.shankennewsdaily.com/2024/01/18/34690/california-wine-players-see-more-consolidation-ahead/

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