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August 3, 2001 Headlines---- Feds file charges on PinnFund founder College Grads and Lease Execs Go to GE—USA Today Story Metropolitan Financial Corp. Reports Second Quarter Loss ( how the feds and banks react with losses ) Friday-Odds and Ends Manifest Ins. Policy/ Chris Ciarrocchi says "hello!”/A Dream?/Some Kind Words --------------------------------------------------------------------------------------------- Feds file charges on PinnFund founder By Mike Freeman UNION-TRIBUNE
STAFF WRITER The U.S. Attorney's Office yesterday filed a criminal complaint against Michael J. Fanghella, founder of PinnFund USA in Carlsbad. He faces charges of transporting $7.3 million in stolen funds across state lines to benefit his ex-girlfriend, Kelly Cook. Fanghella also is charged with filing false financial statements with the U.S. Department of Housing and Urban Development to receive a HUD certification needed for PinnFund's mortgage business. In part, authorities filed the criminal charges yesterday to make sure Fanghella remains behind bars. He surrendered to U.S. marshals in San Diego Wednesday after four months as a fugitive. Lawyers speculate that more sweeping criminal charges could be filed soon, not only against Fanghella but against others involved in the case. "I would expect a (grand jury indictment) that would involve more money, more counts and possibly more individuals than Michael Fanghella," said Robert Hickey of McKenna & Cuneo, a San Diego law firm hired to help hunt down PinnFund-related assets, which will be sold to recover some of the millions lost by investors. Fanghella stood by his attorneys yesterday at a hearing before U.S. District Judge Marilyn Huff. When Huff asked him if he understood his rights, Fanghella answered in a hoarse voice, "Yes, your honor." He will be held at the Metropolitan Correctional Center in downtown San Diego at least until a detention hearing, which is scheduled for Aug. 23. It is unclear how much prison time Fanghella could face as a result of the two charges filed yesterday. His attorney Ezekiel Cortez and Assistant U.S. Attorney Kevin Kelly both declined to comment after the hearing. In March, the U.S. Securities and Exchange Commission accused Fanghella, Oakland resident James Hillman and companies they controlled with bilking at least 166 investors out of $330 million. The SEC charges were filed in a civil complaint, which is less severe than criminal charges. But the U.S. Attorney's Office also has been investigating the case from the beginning, issuing subpoenas for records from PinnFund and others. PinnFund was a high-risk mortgage lender that used investor money to fund home loans for people with bad credit. The SEC contends that Fanghella diverted $109 million of investor funds to pay for his lavish lifestyle, including $14 million in gifts to Cook. According to the SEC, an additional $95 million went to cover operating losses at PinnFund, and the rest went to pay investors in what authorities describe as a classic Ponzi scheme, in which money from new investors was used to pay interest to earlier investors. Fanghella disappeared after the SEC filed its civil charges in March. Huff issued a warrant for his arrest for contempt of court after he failed to appear. For four months, authorities speculated that Fanghella was living in Barbados, where he had a home and bank accounts. His attorney on Wednesday denied that Fanghella had been in the Caribbean. Mike Freeman's e-mail address is mike.freeman@uniontrib.com. His phone number is (760) 476-8209. --------------------------------------------------------------------------------------------- Friday—Odds and Ends Manifest Insurance Policy Testimony from Hal Hayden Just a note to add to your comments about the Manifest Group and their broker "insurance" policy. Although always skeptical of these things since I've experienced the worst from some funders in the past, I can vouch for the integrity that Manifest displays when it comes to the issue of protecting a broker's vendor and customer relationships. When we sold our company in 1995, we retained ownership of the existing portfolio. Although TMG had no reason to believe that they would ever see another new lease from us, their staff bent over backward to work closely with us for the next 5 years as leases matured and we negotiated purchase options, etc. There are others that probably will do the same for a broker, but they are few and far between. Hal Hayden HalH@CapitalStream.com Chris Ciarrocchi says "hello!”---reports where former Advanta staff is today It's great to see my name in lights!!!! "Chris Ciarrocchi says "goodbye". (this is noted on the Leasing News list when Advanta closed its broker business.) I hope all is well, with your power problems, and a slow economy, it's great to still see your website is still available to catch up on the latest leasing news. Well, I am currently employed with UBS PaineWebber as a Financial Advisor. And I'm enjoying every challenging day that the markets put in front of us. Just to keep you up dated on what many Advantians are doing: Jane Hackforth, was married in England in June of this year becoming , Jane Smith. Ron Cinalli, is now currently employed with Marlin Leasing, in the National Accounts Group. Bill Beard, is currently employed with Household Finance, in NE Philadelphia. Sheri Mathers, is currently employed with All Bases Covered, an IT solutions company. All are well. I wish you and your staff a healthy and happy summer. And I hope to here from you soon. Best Regards, Chris Ciarrocchi christopher.ciarrocchi@ubspainewebber.com UBS Paine Webber 3200 Center Square West 1500 Market Street Philadelphia, PA 19102-2187 1-800-345-7941 ext 2010 ~~~ Travis Foxx Has A Dream? or a Nightmare? Watching all of this GE Capital activity made me think of the UAEL Fall Conference in Tucson (three years ago, or was it four?) You were undoubtedly present as well at the luncheon, where Sudhir Amembal was the Keynote speaker. The topic was the future of the leasing industry, and among Mr. Amembal's comments were that brokers that had been in the business for some time would be selling out as an exit strategy, and there would be a conglomeration of these smaller operations. The larger entities that resulted would form alliances to get even better economies of scale, etc... Then, as a (half?) joke he stated "and they will all be bought by GE Capital". I clearly recall the room breaking out in a chuckle at the joke, and then stopping just as suddenly, and becoming very quiet for a moment or two, before he continued on... Or was that just a dream I had once? Travis Foxx travisfoxx@merchantcapital.net Need financing for your growing business? Merchant Capital - "Financing for Entrepreneurs" http://www.merchantcapital.net ( Perhaps a nightmare would be appropriate. Yes, I was there. It was no dream. You described it perfectly, except you had to be there to get Sudhir Amembal timing. He has an accent and uses it always to his advantage in speaking. He can be quite witty, as well as accurate. He got us all laughing, until we realized he may be serious. He definitely is a premier leader in our industry. editor ) ~~~~ “No Longer Any Trial of ELA Weekly Newsletter”-- Daniel Aubainn writes: It was recently brought to my attention that you had placed the following information in your newsletter: "The Equipment Leasing Association Newsletter covers information weekly that is not available at other associations on line and the great majority is not covered by other leasing newspapers, such as the Monitor or Leasing News. Members of ELA get a lot for their membership dues. You may be able to obtain a"free trial subscription," or subscription without the links to the full stories ( I think the "nuggets" they publish are perfect for the busy reader. I also think for the lessor or leasing professional, this is excellent, current information. editor )" This is not true. ELA's ENEWS newsletter is a Members Only service. I know Katie Plona may have offered prospective members a "peek" at a newsletter to get them interested in membership but we do not offer "trial subscriptions or subscriptions without the links". Please correct this in a future edition of Leasing News. I have received several requests generated by your newsletter. Thanks and keep up the good work. Daniel Daniel Aubain Database Manager Daniel Aubain <daubain@ELAMAIL.COM> Equipment Leasing Association Direct: (703) 516-8377 Main: (703) 527-8655 FAX: (703) 527-2649 Website: http://www.elaonline.com/ ( Yes, we miss Katie Plony. But you can buy a pass...or you may ask for an exception, as per ELA policy, and perhaps the new membership director will make them available on a limited basis: ) 24 Hour All
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Association The Correct Answer is “No” The Gramm-Leach-Bliley (GLB) financial services modernization bill passed in 1999 requires financial companies to annually send customers a copy of their policies for sharing and selling their personal information to other companies and to set up a mechanism by which customers can opt-out of such sharing or selling of their personal information. Is your company sending out its privacy policy to customers? The correct answer for a leasing company who leases to companies only is: no. http://www.leasingnews.org/archives/August01/8-01-01.htm Some Kind Words.... A word of encouragement for you ..... You and I have exchanged only a few thoughts and words, but I read your input into this industry and I am encouraged by your professionalism. I am sure that I speak for many silent business people. There will always be jerks out there in any endeavor. That's just life. You are an asset to many. Keep focused and the faith and know that you are providing a great service. Don't let the jerks into your world. Best Regards, Bob Blake ~~~ re: Sunday Sermon Hit the nail right on the head. Rick Wilbur ~~~~~ What Readers Like at Leasing News---- You always seem to have something good to point out. Your Sunday Sermon this week is an excellent commentary, "more better" than usual! Especially liked your suggestion to join an association, get involved, take an assignment, show responsibility, care about your profession.....would add...seek relationships with like minded individuals.....amen Cheers from Charlie Bancroft ~~~~ I applaud your review of our present economy. As a small business owner, have felt the weakening of the economy and realized more competition on fewer transactions. However it is in these kinds of situations that our company has grown and our honesty with our clients has been most rewarded. All this talk of ethics in a slowing down economy would seem like mixing oil and water, but it has done nothing but improve Quest's bottom line. In fact we are having our best month in our 3 1/2 years in business. I do indeed see the glass as half full and I appreciate others that have the same vision. Keep up the good work! Lance Blount, V.P. Quest Financial Corporation ~~~~ Your Leasing News was passed on to me. I like your writing style and openness. The newsletter fills a need in the market, particularly in regard to forward looking developments. We're in a specialized niche within the Semiconductor Industry, but I would like to have you put me on your mailing list if possible. Sandy Garrett CEO, The Garrett Group ~~~ First time browser - interesting stuff. Keep it up. Thomas J. Becker ~~~~ United Association of Equipment Leasing MINNESOTA REGIONAL EVENT Wednesday, August 14, 2001 "You've Asked For It, You've Got It!" Meeting & Roundtable Discussion "Hiring and Retaining Good People" 4:00pm - 6:00pm Dinner & Networking 6:00pm - 8:00pm Overview: What kind of success are you experiencing in recruiting and hiring sales people and internal people? What innovative compensation and/or benefit plans are you utilizing to hire and retain your top performers? What candidate background(s) have you found lead to hiring the most successful people? Location: Bayview Event Center 687 Excelsior Boulevard Excelsior, MN (952) 470-2224 Price: $18.00 per person* *Price is for meeting and roundtable discussion only. Dinner not included. Registration Form: Name: Company: Address: Phone: Fax: Email: Payment: Check Visa/MC Amex Credit Card #/Expiration Date: Name on Card: Joanie Dalton - Managing Director UAEL - United Association of Equipment Leasing 520 Third Street, #201 Oakland, CA 94607 (510) 444-9235 x27 (510) 444-1346 fax joanie@uael.org College Grads and Lease Execs Go to GE—USA Today Story (In case you missed this story yesterday in USA Today, here is a good story of why an executive would want to join GE---and if I were working at CIT, here is where I would apply first. editor.) Companies know where to go for a CEO GE's graduates By Gary Strauss USA TODAY—Thursday, August 2, 2001 GE may bring good things to life. Lately, former GE executives have been bringing good things to other firms. Led by legendary CEO Jack Welch, GE is Corporate America's top farm team. Sixteen former Welch disciples run publicly held U.S. companies. Eleven have been named CEOs since 2000 alone. Yet GE remains loaded with raidable talent, even with the recent departures of Power Systems chief Robert Nardelli and Aircraft Engines CEO James McNerney, who were snapped up by Home Depot and 3M after Medical Systems chief Jeffrey Immelt was tapped to succeed Welch. ''It's still the No. 1 company to recruit CEOs from,'' says Jeff Christian of Christian & Timbers, a leading executive recruiter. ''There are probably 50 execs there who could run Fortune 500 companies.'' Several have quickly installed GE's management template at their new firms, revving up stock prices and re-energizing operations. Consider: · TRW, up 22% since Feb. 1 under David Cote, former GE Appliances CEO. Cote is reducing TRW's dependence on the automotive industry, expanding semiconductor sales and slashing debt. ·
· Supermarket operator Albertson's, up 14% since April 23 under Larry Johnston, also a former head of GE Appliances. In an early restructuring move, Johnston is shuttering unprofitable stores and cutting administrative overhead. ·
· Tool and industrial-parts maker Pentair, up 60% since Jan. 2 under Randy Hogan, who held several management positions at GE before leaving in 1994. Hogan has boosted earnings and cash flow by cutting costs and improving operating efficiency. ·
* Home Depot, up 22% since Dec. 4 under Nardelli, who is re-energizing the company with GE-style employee training, planning and quality-control standards. · Even troubled Honeywell, whose $42 billion merger with GE fizzled in late June, is up 5% since July 3, when former GE executive Larry Bossidy took over as CEO. Not that most of these guys come cheap. To nab Nardelli, Home Depot forked out a compensation package of stock options, restricted shares, loans and pay valued at more than $325 million -- so far. Yet considering how much burnishing some GE executives bring to their new companies' market value, some might consider such CEO pay packages chump change. Insurer Conseco lavished former GE Capital chief Gary Wendt with a compensation package worth more than $200 million. Just 13 months after Wendt was hired, Conseco shares are up 85%, boosting its market value by $2.3 billion. Several GE alumni, including Steve Bennett at Intuit and Mark Bulriss at Great Lakes Chemical, have floundered, at least based on their firms' sagging stock prices. Since Bulriss, a former GE Plastics executive, joined the specialty chemical maker in April 1998, its shares have fallen 47%. Intuit shares have tumbled 49% since January 2000, when Bennett, a former GE Capital executive, joined the software firm. Long term, other former GE executives have done extremely well for shareholders. During Bossidy's 8 years as CEO of AlliedSignal before later joining Honeywell, the stock surged more than 950%. Under John Blystone, former head of GE's European Power Systems division, shares of industrial-parts maker SPX are up 713% since 1995. General Dynamics rose more than 175% in the 3 years former GE executive William Anders was CEO. Other former GE executives have shown a strong entrepreneurial bent. Peter Cartwright, a former nuclear power development manager at GE, is founder and CEO of San Jose, Calif.-based power-generator CalPine. CalPine is up 1,783% since its 1996 initial public stock offering. Size, sizzle matter Why is GE so fertile for picking CEO talent? Under Welch's 20-year leadership, GE shares have rocketed almost 3,500%. Despite a softening economy, GE continues to post results that upstarts would envy. Second-quarter profit was a record high, up 15% over a year ago. Even derailed deals like the one with Honeywell don't make GE gun-shy of making acquisitions to continue growth. Monday, it struck a $5.3 billion deal for commercial lender Heller Financial. GE is among the world's biggest companies when defined by market capitalization: The value of its outstanding stock is almost $425 billion. If they were stand-alone firms, GE Capital and several other of its 20 major divisions would be big companies themselves. And virtually all are No. 1 or No. 2 in their markets. GE has long been a leader in identifying talented executives early in their careers. About 10,000 are groomed each year at GE's vaunted Crotonville, N.Y., Leadership Development Center. Many are seasoned at GE's far-flung businesses, where they're able to get a range of management experience and develop multiple skill sets. ''When you work at GE, you get accelerated learning at some very different industries,'' Bossidy says. ''They (also) work on leadership development by coaching, by education and by mentoring. Over time, that makes you very aware. And very qualified.'' Welch takes a personal role in building GE's leadership farm team. ''He personally reviews performance evaluations and career plans of the top 500 executives in detail,'' says University of Michigan business professor Noel Tichy, the chief engineer behind GE's management training engine and co-author of Control Your Destiny or Someone Else Will. Welch is also legendary for conducting frequent, intensive performance reviews of scores of managers, Tichy says. He identifies ''A'' players who could be tapped for major roles, ''B'' players who are ripe for nurturing and ''C'' players who are ultimately weeded out. Those who thrive under the demanding Welch are viewed as potential successes at virtually any big company seeking senior management talent, retired GE vice chairman John Opie notes. So in an era of increasing CEO turnover, GE continues to be a hiring honey pot. Besides those running public U.S. firms, two former GE executives are CEOs of big privately held firms, two oversee foreign firms and several former GE-ers are in key management posts and could be destined for greater roles at major firms. Home Depot and Albertson's were even willing to overlook Nardelli's and Johnston's lack of retail experience. 3M reportedly considered Immelt and Nardelli before selecting McNerney as its first-ever outsider CEO. ''GE guys end up with a hard-wired, genetically imprinted point of view,'' Tichy says. ''Get rid of bureaucracy. Hold people accountable. Clearly articulate your values and operating mechanisms. Plan. Revamp. And have what Welch calls ''edge'' -- being able to make the tough decisions quickly. It's not rocket science, but few companies can execute like GE.'' In July 1998, Polaris Industries hired Tom Tiller, who was running GE's Silicones division at the age of 36. ''I knew he was our guy 10 minutes after meeting him. His intelligence, his aggressiveness, his business record told me he would be the right fit,'' says Hall Wendel, Tiller's predecessor. ''The fact that Tom was from GE was icing on the cake. You can't argue with Welch's track record.'' Welch retires Sept. 7. But few substantive short-term changes are expected under the homegrown Immelt, who inherits GE's momentum of strong performance and growth. Taking good things elsewhere Once ensconced in the corner office, former GE executives appear to operate out of the standard Welch playbook, which mandates cost-cutting, boosting profit, streamlining operations and new product rollouts. ''We do tend to speak the same language,'' Hogan says. Tiller says Polaris is applying some of the concepts he learned at GE: building the brand in the USA and elsewhere, accelerating rollouts of Polaris-branded products and accessories, and setting up lucrative financing, insurance and service contracts through the company's burgeoning financial services division. ''The idea of stretch, speed, growth and productivity -- some of the basic things GE does so well -- can be tailored here,'' he says. Most GE alumni are big proponents of Six Sigma, the intensive quality-control management process that is designed to streamline operations, eliminate waste, improve product quality and boost customer service. ''The processes are real and replicable,'' Hogan says. ''I'm not saying it's easily replicable, and that's key. You have to recognize the culture and individual strengths of people, not graft everything, but to transfer some of the best practices.'' At Home Depot, Nardelli has swooped through the company like a do-it-yourselfer on a rampage -- eliminating management group presidencies, pushing for faster, broader sales via the Internet and implementing broad plans for developing and rewarding workers. At Albertson's, Johnston is also imprinting GE practices. ''We're turning over every stone in the company. The environment I came from is pretty notorious for ongoing productivity and continuous improvement. That's exactly what we're pushing for,'' he says. The GE magic hasn't worked everywhere. 3M shares have floundered since McNerney's January arrival, down 7%. In May, Iomega ousted CEO Bruce Albertson. The former GE Appliances chief was hired 18 months earlier to turn around the data-storage device maker. Weighed down by asbestos-related claims, Owens Corning, run by former GE Plastics chief Glen Hiner since 1992, filed for Chapter 11 bankruptcy protection in October. Media conglomerate Primedia has lost about half its value since former NBC executive Tom Rogers became CEO in 1999. NBC is owned by GE. Computer-leasing firm Comdisco filed for Chapter 11 in July. Its stock has plunged 90% since turnaround specialist and GE alumnus Norman Blake was hired Feb. 28. Given the cyclical nature of some sectors and the broad market's swoon, some former GE executives may simply need more time to make their mark. ''Even in a normal economy, you have to give them a couple of years. Because during the first year or so, you're still seeing most of the effect of their predecessors,'' Christian says. Metropolitan Financial Corp. Reports Second Quarter Loss and Capital Raising Initiative
HIGHLAND HILLS, Ohio, Aug. 3 /PRNewswire/ -- Metropolitan Financial Corp. (Nasdaq: METF), parent company of Metropolitan Bank and Trust Company, today reported a loss for the quarter ended June 30, 2001. Net loss for the quarter was $2,078,000 or $0.26 per common share compared to net income of $547,000 or $0.07 per common share for the second quarter of 2000. Net loss for the six months ended June 30, 2001 was $2,501,000 or $0.31 per common share compared to net income of $1,154,000 or $0.14 for the six months ended June 30, 2000. The loss was due primarily to increased loan loss provisions, provisions for real estate owned, compression of the interest rate spread, costs associated with a computer conversion and compensation and occupancy expenses relating to new facilities opened during 2000 and the first half of 2001. The loan loss provision for the quarter and the six months ended June 30, 2001 was $3,145,000 and $4,200,000, respectively, compared to $1,600,000 and $3,100,000 for the quarter and six months ended June 30, 2000, respectively, an increase of 96.6% and 35.5%, respectively. This increase was made to reflect credit issues as a result of a slowing economy and problems with specific borrowers. As a result of the second quarter loan loss provision, the loan loss allowance increased to $17,028,000 at June 30, 2001, an increase of 22.1%, from $13,951,000 at December 31, 2000. Metropolitan Bank and Trust Company's (the Bank) loan loss reserve as a percentage of total loans reached 1.39% at June 30, 2001 compared to 1.07% at December 31, 2000. The provision for real estate owned was $600,000 for the second quarter ended June 30, 2001 and $700,000 for the six months ended June 30, 2001 and will be used to make certain properties more attractive for disposition. "Despite the increase in non-performing assets which stem largely from our commercial loan portfolios, the Bank's balance sheet remains invested primarily in low risk assets," said Metropolitan CFO Donald F. Smith. "These assets include cash deposits, high quality investment securities, residential mortgage loans and seasoned loans secured by multi-family properties and comprise 54.8% of our total assets," he added. The interest rate spread for Metropolitan Financial Corp. (the Holding Company) has decreased to 1.89% and 1.97% for the three month and six month periods, respectively, ended June 30, 2001; compared to 2.38% and 2.32% for the three month and six month periods, respectively, ended June 30, 2000. In addition, the Holding Company and the Bank announced today that they have agreed to certain actions under a Supervisory Agreement with the Office of Thrift Supervision and the Ohio Department of Financial Institutions. The Supervisory Agreement includes, among other things, an agreement by the Holding Company to prepare and adopt a plan for raising capital that uses sources other than increased debt or which requires additional dividends from the Bank. The Supervisory Agreement does not prohibit the Holding Company from making payments on its Trust Preferred Securities or other Holding Company obligations. In addition, the Bank has entered into a separate supervisory agreement that includes, among other things, the following requirements: 1. Development of a capital improvement and risk reduction plan by September 28, 2001. This plan is expected to increase the Bank's core and risk-based capital from its present "adequately capitalized" status to "well capitalized" by December 31, 2001; 2. Reduction in fixed assets; 3. Attain compliance with approved interest rate policy requirements, thus reducing the Bank's interest rate risk; 4. Reduction in volatile funding sources, such as brokered and out-of- state deposits; 5. Improving credit risk controls; and, 6. Restricting growth. The supervisory agreements for the Holding Company and the Bank also contain restrictions on adding, entering into employment contracts with, or making golden parachute payments to directors and senior executive officers and in changing position responsibilities of senior officers. Additionally, the Holding Company announced that it has engaged Ryan, Beck & Co. LLC, an investment banking firm specializing in community banks, as its financial advisor to explore strategic alternatives including a recapitalization, which could occur in the fourth quarter. Metropolitan Chairman, CEO and majority shareholder Robert M. Kaye has indicated his intention to invest a substantial amount of additional capital in connection with any recapitalization. "We are evaluating capital raising alternatives that could take the Bank to the well-capitalized level by year-end," said Mr. Smith. "Currently, our risk-based capital ratio is at 8.71% and the Bank is deemed to be adequately capitalized. In order to be considered well capitalized, we have to increase that ratio to 10.0%," he added. The Bank is currently deemed well-capitalized in all other categories. The Bank's primary business objective has been to increase core deposits. It has done this by introducing new deposit products that have been well received in the marketplace. These include on-line banking, a premium interest-bearing checking account, a competitive money market account, and an array of other competitively-priced deposit products. Additionally, the Bank has initiated several actions that have resulted in: * Increased fee income from mortgage originations and gains from the sale of commercial real estate assets; * Growth in the trust and financial services division, resulting in a 54% year-to-date increase in assets under administration; * A successful entry into the public funds market; * Close to 80% occupancy level in the new corporate headquarters building; and, * Extension of the Bank's posting time so that all transactions made before the close of 5 p.m. post that same day. Previously, transactions made after 3 p.m. posted the next business day. Also, the Bank has initiated an aggressive expense management program that is expected to have a positive impact on its efficiency ratio by year-end. "The level of capital and other actions required by the agreement with our regulators is prudent to continue to support our mission as a community bank. Our strategy is to grow the value of the Bank by increasing core deposits. We are going to remain focused on deposit growth while aggressively reducing costs," said Mr. Kaye. "As a result of these initiatives, we expect to report improvement in our third and fourth quarter results, compared to the first half of 2001," he added. "We also do not anticipate opening any new retail locations during the next 12 months," Mr. Kaye said. "We have built several new retail sales offices in growing markets during the last several years, and we are going to give those time to become more established in the marketplace," he added. The Bank anticipates that its cost of funds will likely decrease during the remainder of 2001 as higher rate borrowings and CDs mature and are replaced by less expensive funding. "Maturities of borrowings and CDs during the last six months of 2001 amount to $415 million. We anticipate that the benefit of the cost of fund reductions will exceed the impact of interest rate reductions on assets," said Mr. Smith. Further, the Bank anticipates maintaining its asset base at $1.7 billion or less during the remainder of 2001. Loan origination in the Bank's core markets, however, will remain active. This news release contains forward-looking statements that are subject to assumptions, risks and uncertainties. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words "believe," "expect," "anticipate," "likely," "intend," "plan," "estimate" or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could" or "may." Actual results could differ materially from those contained in or implied by such forward-looking statements for a variety of factors including: changes in interest rates; continued softening in the economy and other factors which would materially impact credit quality trends, real estate leasing and the ability of the Bank to generate loans; business and other factors affecting the economic outlook of individual borrowers of the Bank and their ability to repay loans as agreed; the ability of the Holding Company and the Bank to timely meet their obligations under their respective supervisory agreements; delay in or inability to execute strategic initiatives designed to grow revenues and/or manage expenses; changes in law imposing new legal obligations or restrictions or unfavorable resolution of litigation; and changes in accounting, tax or regulatory practices or requirements. This news release does not constitute an offer of any securities of the Holding Company, the Bank or any of their affiliates for sale. Profile of Metropolitan Financial Corp. Metropolitan Financial Corp. is a Unitary Thrift Holding Company headquartered in Highland Hills, Ohio. Metropolitan Bank and Trust Company operates 24 full-service retail sales offices in northeastern Ohio and maintains eleven loan origination offices throughout Ohio and western Pennsylvania. To find out more about Metropolitan's products and services, please visit the Bank's Web site at www.benicetoyourmoney.com . Metropolitan Financial Corp. --------------------------------------------------------------------------------------------- Note to Readers: If you are not receiving our electronic newspaper, it may be because we have exceeded the maximum size you have set to receive; or when we mention the name of a virus, your anti-virus program picks this up as a “virus” as the name is part of the protection pattern; or your network administrator is screening bcc: e-mail. In any case, you may view us on line at www.leasingnews.org daily. We are concerned about the length, but we cannot control it when there is a very busy news day. editor --------------------------------------------------------------------------------------------- Policy Statement Policy Statement---Nothing is sent out that is not "fair." Always unbiased reporting. Fairness always. If it is questionable, we will ask the writer's permission to quote them. We will print information without attribution, but feel as long as we do not name the person who sent it, we can use the information. Any information we think is suspicious, we try to have if substantiated first by at least two reliable people. We will not purposely send out "negative" news. We prefer "positive" news. We have no "axe" to grind or are not paid or seek or accept any remuneration for product or promotion. We do not spam anyone. To be added to the mailing list, you must request it. We do not send anything about our company or personal e-mail or jokes to the leasing news list. We do not share our mailing list with anyone. We try not to send more than one report a day, if at that, unless an "alert." We follow Internet Netiquette at all times. Our sole purpose is to provide communication to improve our profession. We reserve the right to deny sending the newsletter when requested. We reserve the right to edit or delete an opinion that is not in good taste or is outright derogatory. Leasingnews.org www.leasingnews.org
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