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

 

 

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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 )

 

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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

 

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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
24% No
1% Abstain

 

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

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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

 

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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 )

 

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