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Kit Menkin’s Leasing News www.leasingnews.org Friday December 21,2001 Commercial Money Center Interchange Buys Monarch Capital Official Press Release—It is “Announced” from UAEL Key Corp to Build Loan Loss Reserve, Strengthen Balance Sheet Bank of the West Parent Deal Closes XP Windows Vulnerable to Hack Attacks Ohio Up-Front Tax Guidance Expected By December 28 special report by ELA’s Dennis Brown ### denotes press release ___________________________________________________________________________ Commercial Money Center I have been recently reading negative comments in the Leasing News from brokers around the country about Commercial Money Center. Let me say first and foremost, there is nothing more valued than a broker/vendor relationship. But, it's seems we have lost sight of the relationship between broker and the funding source! I have only been in the leasing industry for three years, but I have seen many funding sources recently eliminate the broker from their programs and go strictly direct to vendors or in a dying economy closing their doors altogether. Why then would brokers, begin to attack one of the few funding sources (CMC) that rely on broker business? Why would brokers, that have been earning millions of dollars in commissions since 1997, attack one of their funding sources? Have they lost sight of the millions of dollars they have made and will continually make as long as CMC stays in business? Many brokers will send a C and D deal to CMC from the same vendor that gives them millions of dollars in A and B business! CMC understands how crucial ALL relationships are! But, is the broker without flaws? Does he or she tell the vendor upfront that CMC is slow and tedious? Or do they say and do everything and anything to get that deal and earn the commission CMC pays, including statements such as, "it will fund in less than a week." Knowing that even at its peak efficiency, CMC takes 4 to 6 weeks to fund! Deals are submitted sloppy, containing inaccurate or wrong information, thereby consistently taking weeks and weeks to get through processing. It is not until then, that vendors are being told after a paper nightmare, that CMC funds slowly. Would a vendor be more understanding if a broker submitted a deal right , and got to funding quickly, so the time it takes for CMC to do its part has less of an impact on the vendor and the relationship. Throw in CMC's recent problems caused by the events of September 11th, and you've compounded an existing problem in an already delicate relationship. I wish CMC could fund cattle, computers, Fair Isaacs of 500,bankrupticies,etc..in three to four days. I wish terrorist wouldn't have flown the planes into the World Trade Center. I wish the majority of brokers were honest with their vendors and told them that they have been shopping their transaction for 4 to 6 weeks (with the equipment already being delivered) to no avail. Now they are taking them to CMC where it will take another 7 to 8 weeks! I wish CMC could JUST FUND!, but there are other requirements to be met. But, what I really, really wish is that brokers saw the big picture and were a little more understanding with the people who are signing their commission checks and helping pay their bills!
Ty Hanson Commercial Money Center employee ( Bill Hansen has been under the weather recently, and not able to respond himself. He has agreed to be one of the “Meet the Leasing Newsmaker” on our live forum. We hope he is well enough for the January 3rd. Thursday, 1pm…but if not, then January 10th, as we are going to schedule this as a weekly meet the Leasing News Maker. editor ) #### ########################## ############################ United Association of Equipment Leasing (UAEL); Oakland, California at it's November Board of Director's Planning Meeting approved the appointment of Joe Woodley, CLP as Chief Executive Officer (CEO) effective December 1, 2001. Woodley is a Past President of UAEL and has over 25 years experience in the industry and with the association. Additionally, Joan Dalton was promoted to Chief Operating Officer (COO). Dalton has been with UAEL for over 2 years and has over 20 years in the hospitality and association industry. Bill Grohe continues as Director of Membership. Bill has 40 years of experience in the leasing industry and is a Past President of UAEL. The Executive Committee and Board of Director's are committed to this team and look forward to growth and positive changes. The 2002 Board of Director's are: Executive Committee President - Bob Fisher, CLP Vice President - Bette Kerhoulas, CLP Secretary/Treasurer - Jim Coston Immediate Past President - Chuck Brazier, CLP Board Members Brent Hall, CLP Victor Harris Terey Jennings, CLP John Kruse Larry LaChance, CLP Christopher "Kit" Menkin Ben Millerbis, CLP Troy Molitor Jerry Newell, CLP Peter Stommel, CLP Bob Teichman, CLP 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 www.uael.org #### ##################### ############################################ Leasing News reported this on November 20,2001 http://www.leasingnews.org/Conscious-Top%20Stories/new%20CEO.htm plus this story: http://www.leasingnews.org/Conscious-Top%20Stories/woodley.htm For readers interested in the new by-laws, especially for the standards and ethics committee changes, the vote was: 75%
Yes Go
to the front page, www.uael.org
and click on Results of the 2001 ballot Leasing
News has been patiently waiting since November 29th for
a statement from the sitting officers of UAEL regarding
readers wanting to know about a leasing exec. being appointed
CEO. We have been
told a statement was pending. We assume this press release
is not the statement. If it is, we invite Joe Woodley to join the
Leasing News Maker Forum for readers to ask him questions
directly on January 10th.
editor -### ##################################3 Interchange
Buys Monorach Capital Interchange Financial Services Corporation Signs Definitive Agreement to Acquire Assets and Liabilities of Monarch Capital Corporation Anthony S. Abbate, President and Chief Executive Officer of Interchange Financial Services Corporation ("Interchange") (NASDAQ: IFCJ), whose principal subsidiary is Interchange Bank ("Bank"), reported today that the Interchange has signed a definitive agreement with Monarch Capital Corporation ("Monarch"), to purchase substantially all of Monarch's assets and liabilities. Monarch is a leasing and financing company located in West Caldwell, New Jersey, which was formed in 1986 by its sole shareholder James Jenco. Monarch provides leasing and financing of capital equipment principally to middle market companies. As part of the transaction, James Jenco will join Interchange as President of the Bank's equipment lease financing subsidiary, Interchange Capital Company, L.L.C. ("ICC"). In addition, Monarch's employees, who are instrumental to the success of Monarch, will also join ICC. "James Jenco brings with him almost 25 years of leasing experience and along with his staff will assist Interchange's leasing unit (ICC) to more rapidly achieve its strategic objectives", said Mr. Abbate. Mr. Jenco also stated, "I welcome the opportunity to join the Interchange family to facilitate the Bank's equipment leasing business. It will enable us to enhance the array of products and services available to the customers of Monarch while helping expand the customer base of the Bank". The aggregate lease portfolio to be purchased is approximately$15 million and is scheduled to close in January 2002. The deal is expected to be accretive to Interchange's earnings in the first year. The Company is a $812 million-asset commercial bank holding company, whose principal subsidiary is Interchange Bank. The Company is a financial intermediary that, along with traditional banking, offers a broad range of services including 24-hour, 7-day- a-week online banking and bill paying services through InterBank. Customers can also do their stock trading, obtain insurance services and apply for a loan through the Bank's web site. Mutual Funds and Annuities are offered through the Company's Investment Services Program. The Interchange Bank-Line Call Center enables customers to open new accounts over the telephone; and customers can do basic banking transactions over the telephone with Interchange Bank-Line. The Business Class Banking Account offers checking with a variety of extra services including Interbanking - a proprietary product, which allows the business customer to do routine business banking right from their office PC. And through our subsidiary, Interchange Capital Company, L.L.C., we are able to extend cost- effective equipment leasing solutions for a variety of expansion and upgrading projects. The Bank is headquartered in Saddle Brook, New Jersey and has 17 branch offices located in Elmwood Park, Franklin Lakes, Garfield, Hillsdale, Little Ferry, Lodi, Montvale, Oakland, Paramus, Park Ridge, Ramsey, River Edge, Rochelle Park, Saddle Brook (2), Waldwick and Washington Township. Further information about the Bank, its core values and focus, and its products and services can be found on our web site at www.interchangebank.com. Our web site also has a direct link to the NASDAQ Stock Market that enables you to keep informed of the daily quotes and market activity for the Company's stock, which trades under the symbol IFCJ.
Sites of Reference: http://www.interchangebank.com ############################ ####################################### Key Corp to Build Loan Loss Reserve, Strengthen Balance Sheet KeyCorp (NYSE: KEY) announced today a fourth quarter after-tax charge of approximately $410 million, or $0.96 per common share. Of this amount, $372 million, or $0.87 per share, is for an additional provision for loan losses. The remaining $38 million, or $.09 per share, is for principal investing write-downs and to further strengthen balance sheet reserves. Key also announced that its Board of Directors increased the cash dividend 1.7 percent to an annual rate of $1.20 per share on its common stock. This marks the 37th consecutive year the company has increased its dividend. The first payment at this new rate of $0.30 per quarter is payable on March 15, 2002, to shareholders of record on March 5, 2002. "In May, we announced a series of initiatives to sharpen our strategic focus by returning to our core relationship businesses," said Chairman and Chief Executive Officer Henry L. Meyer III. "Today, we are restoring Key's tradition of having a strong loan loss reserve position coupled with a conservative credit culture. Building our loan loss reserve and strengthening our balance sheet is critically important in the wake of September 11 and the continued uncertainty surrounding the timing of an economic recovery. These actions position us to take full advantage of the economic rebound when it occurs. "Further, I am pleased that the Board reaffirmed its confidence in Key's future financial performance by increasing the dividend." Results for the fourth quarter of 2001 will include pre-tax charges of approximately $650 million ($410 million after-tax), identified as follows: -- An increase in the loan loss reserve of $590 million, a non-cash charge of which approximately $425 million will be used to build the reserve for the continuing portfolio. The remaining amount will be added to non-replenishing reserves for losses on loan sales and the runoff portfolio. -- An additional $60 million represents a $45 million mark-to-market adjustment in our principal investing portfolio, primarily for travel and airline related investments which were directly impacted by the events of September 11, and a $15 million reserve for customer derivative losses. As a result of these actions, Key's allowance for loan losses at December 31, 2001, is expected to be approximately $1.7 billion, or 2.6 percent of period-end loans, compared with 1.8 percent at September 30, 2001. Over this same time period, the allowance for loan losses as a percent of nonperforming loans is expected to increase from 133 percent to approximately 183 percent. For the continuing portfolio alone, the allowance for loan losses as a percent of nonperforming loans is expected to exceed 216 percent at year-end 2001. Key has also continued to strengthen its capital ratios. At December 31, 2001, Key's tangible equity to tangible assets ratio is expected to be above 6.4 percent, compared with 6.1 percent a year ago. The company expects fourth quarter 2001 earnings, excluding the charges announced today, to be $0.54 to $0.56 per common share. Key will release its fourth quarter results on Wednesday, January 16, 2002. ( courtesy of ELAonline.com ) ################### ############################### -------------------------------------------------------------------------------------------------------------- |