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| December 15, 2000 Bay
View Capital--Changes Coming Bay View Capital: Update SAN MATEO, Calif., PRNewswire/ -- Following its regular meeting yesterday, the Board of Directors of Bay View Capital Corporation (NYSE: BVC) announced that at the present time the Company is focusing on the sale of certain assets of its franchise lending operation. All other operations -- including retail and commercial banking, automobile financing and asset-based lending -- continue to perform at or above 2000 plan. Bay View is continuing to evaluate all strategic options, including the sale of the company, in consultation with the financial advisor Merrill Lynch & Co. No decisions are anticipated until the first quarter of calendar 2001. Bay View Capital Corporation is a diversified financial services holding company with over $6 billion in assets. Headquartered in San Mateo, California, it is the parent company of Bay View Bank, N.A. and its subsidiaries, Bay View Acceptance Corporation, Bay View Commercial Finance Group, and Bay View Franchise Mortgage Acceptance Company. Forward-Looking Statements This press release contains forward-looking statements which describe the Company's future plans, strategies and expectations. All forward-looking statements are based on assumptions and involve risks and uncertainties, many of which are beyond the Company's control and which may cause actual results, performance or achievements to differ materially from anticipated results, performance or achievements. Factors that might affect forward-looking statements include, among other things: -- the demand for the Company's products; -- actions taken by the Company's competitors; -- tax rate changes, new tax laws and revised tax law interpretations; -- adverse changes occurring in the securities markets; -- inflation and changes in prevailing interest rates that reduce margins or the fair value of the financial instruments held; -- economic or business conditions, either nationally or in the Company's market areas, that are worse than expected; -- legislative or regulatory changes that adversely affect the Company's business; -- the inability to sell or securitize assets; -- the timing, impact and other uncertainties of asset sales or acquisitions and the Company's success or failure in the integration of their operations; -- the ability to enter new geographic and product markets successfully and capitalize on growth opportunities; -- technological changes that are more difficult or expensive than expected; -- increases in delinquencies and defaults by borrowers and other loan delinquencies; -- increases in the provision for losses on loans and leases; -- the inability to sustain or improve the performance of subsidiaries; -- the inability to achieve the financial goals in the Company's strategic plans, including any financial goals related to both contemplated and consummated asset sales or acquisitions; -- the outcome of lawsuits or regulatory disputes; -- credit and other risks of lending, leasing and investment activities; and the inability to use net operating loss carry forwards currently held by the Company. As a result of the above, the Company cannot assure that future results of operations or financial condition or any other matters will be consistent with those presented in any forward-looking statements. Accordingly, the Company cautions you not to rely on these forward-looking statements. The Company does not undertake, and specifically disclaims any obligation, to update these forward-looking statements, which speak only as of the date made. SOURCE Bay View Capital Corporation ( I am told, not by Steve Chriest of Signature Financial, there are some major changes coming. I do not have enough information to put on The List, but remember---this is a "press release" from Bay View Capital. editor ) National City Closing Loan Zone from The Associated Press CLEVELAND (AP) - National City Corp. will close its 69 Loan Zone retail stores and also plans to leave the auto leasing business, the $85 billion bank holding company announced Friday. Nearly 200 jobs will be cut, but some workers could be hired for other positions with National City, said Tom Koch, a company spokesman. Loan Zone stores are located in 20 states, most of them concentrated in National City's home territory of Illinois, Indiana, Michigan, Ohio and Pennsylvania. The Loan Zone business run by National City's Pittsburgh-based Altegra subsidiary and the auto leasing business ``did not measure up to our model for profitability and growth,'' said David A. Daberko, chairman and chief executive. The leasing business was done through auto dealers. National City expects to take pretax charges in the range of $43 million to $46 million in the fourth quarter to cover the closings. REACTIONS TO RODI----- Get Another Five Vendors to Replace that One I enjoyed Bob Rodi's thoughts in yesterday's newsletter about taking responsibility for transactions not funding with United Capital. I would ask Bob to consider the following: 1. just because United Capital approved a deal does not mean we would hold it in house. Understanding an underwriter's credit window DOES NOT MEAN that you agree with it as well. If we all pre-screened deals that we would not do in-house, we would be doing our customers a dis-service by not testing the market. 2. what do you say to a vendor whose transaction funded on 11/27 when he calls you and asks why his check was returned by his bank on 12/12? Don't argue with me that this can't happen - because today it did. 3. even if we do want to book the lease internally or with another underwriter, what do you say to a lessee who will not sign the new docs until he gets the old docs back - knowing that United Capital is unable to return those at this time. Worse yet, what about the advance rental check? There are many more questions that can be asked - but the point I want to make is that there is NO way to overcome this situation and maintain any credibility with the vendor. There are just too many variables out of our control. A quick fix by using "equity in your house, credit cards, savings, whatever" to fund the deal yourself is absolutely wrong. Funding a deal internally is not as easy as just paying the vendor. You have to consider taxes (sales & property), filing as a foreign corporation in the state of the lessee (if you do not also work there), filing UCC's, etc. All of this cost further time and money - and if not done correctly, penalties as well. The best advice would be complete honesty with the vendor. If you lose the business - go out and get another 5 vendor to replace that one. If anyone can think of a lesson we can learn from this - use that in the future as well. Just a thought. ( name with held by request-- ) Bob Rodi/Response to Anonymous Dear Anonymous: I am sorry you mis-understood my remarks. I wasn't recommending that brokers become "funding sources". I was merely making the point that this is no longer the "risk free" environment that many brokers had become used to over the years. Whether or not you believe it or buy into it, your success in the very short term, will depend on your ability to understand exactly the types of transactions you cite in your response. Understanding those types of deals and being able to put them together is what makes you valuable to the funding source in this day and age. Brokers are no longer needed to bring funding sources "plain vanilla" business at 10-20% commissions. To be really good as a broker you have to know, or at least have a good understanding, of all the tasks that make your funding source work. That covers credit, risk management, documentation, funding, pricing, collections and customer service. If you cannot prove to your lenders and funding sources that you have this kind of understanding you will be labeled as "high maintenance". As such you will be remanded to 2nd or third tier funding sources or "super brokers" rather than mainstream sources. Again, whether or not you believe it, this puts you at a competitive disadvantage in the current market place. I also advised you to be "prepared" to fund a transaction yourself, not to become a funder. This is a solid recommendation that prompts you to have a back-up plan, just in case you find yourself in the situation that many brokers found themselves in recently with several other "funding sources". Given the current uncertainty in the market (just look at Kit's list and read leasingnews regularly) having a back up plan is a prudent business practice, to say the least. Don't automatically think you're safe with a big name lender. Things can change with them as fast as any other source. If you have, at least, thought of a "Plan B" you are lining up your options and will be ready to deal with any contingencies that may arise. Your customers, vendors and employees will appreciate this and you will command respect as leader who knows and understands the needs of the customers you serve. I hope that this helps you better understand my remarks. Please feel free to call me at any time. Maybe some of my personal experiences will help you. I would be happy to share them with you. Bob
Rodi ( The only thing Bob may have left out, is join as many leasing organizations as your budget can afford. You will learn and receive more than the dues. If you have the time and energy, become a Certified Leasing Professional. This will not only impress your funding sources, but you will get the satisfication of being certified knowledgeable about your professional. editor ) Here! Here! Rodi!!!! It does not take a lot of guts to call somebody out and make sure your name is withheld. I have known Bob Rodi for nearly 10 years. He has never once hid behind anonymous even when he has expressed highly unpopular and sometimes unsound ideas. What has Bob done that could possibly cause somebody to believe that he would care or react if they called him out. I am not aware of him eliminating any of 59 companies on the list personally. Take what is said for what it is worth. Bob has been around a long time and knows a lot of things. We do not know how long "Anonymous" or "Name Withheld" have been around because they want to hide. We can only assume that they are new to the industry and overly sensitive to criticism or disagreement that they might receive. Step up if you are going to play and let us know who you are. Your comments are valid, and will be respected whether or not they are agreed with. If we were all alike there would be no need for all of us. Andrew
Thorn ( We honor all those who want to withhold their name. Sometimes I will check them out for authenticity, sometimes I know them, and I can attest one person said they were in business 12 years, another 25 years, and verified that. Do not know how long the others were in business. But Mr. Thorn is absolutely correct: " If we were all alike there would be no need for all of us." editor ) editor@efj.com vote!!! ============================================================= REMEMBERING THE "PIONEERS OF LEASING" VOTING BEGINS TODAY! For an upcoming feature, The EFJ is asking YOUR help to determine who have been the most significant contributors to the development of equipment leasing in the U.S. Cast your vote for the "Pioneers of Leasing" feature article today. For more information visit www.efj.com! Please forward this notice on to co-workers and industry colleagues! Questions and comments may be forwarded to editor@efj.com. Make
your vote count! For more leasing news, visit The EFJ's web site at www.efj.com or visit R.H. Caruso & Co., Inc., executive recruiters for the equipment leasing industry at www.rhcaruso.com. GovLease.Net AARO Broadband Wireless To Develop Government Leasing Site; E-Commerce Will Create ``Procurement System of Tomorrow'' OKLAHOMA CITY--(BUSINESS WIRE)----AARO Broadband Wireless Communications, Inc. (OTCBB:AARW) and e-Leasing Corporation of Dallas, Texas, announced today an e-commerce contract designed to make it easier to bring government agencies together with primary capital markets. The contract will create GovLease.net, the first Internet site focused on allowing government direct access to the capital lease markets. GovLease.Net will service the federal, state and local governments and private financial institutions with interactive access to the government leasing market. AARO Chief Financial Officer Mike Canfield said the initial contract with e-Leasing is worth more than $175,000 in web design, maintenance and hosting revenue, with recurring annual revenue of $60,000 to $75,000. "GovLease.net will provide comprehensive online competitive bid services significantly reducing the time, effort and cost associated with government lease transactions. GovLease.Net will bring government and the capital markets together in a single on-line marketplace, eliminating the middleman," Canfield said. According to Dean Chittenden, President of e-Leasing, the government purchasing procedures of today and yesterday are slow, bulky and cumbersome and often lack the financial information needed by bidders. With hardcopy letters and bid requests, the bidding processes currently take weeks or months to complete and waste both human resources and materials in the process. GovLease.net will create the government Internet lease financing system of tomorrow, Chittenden said, bringing government agencies and leasing organizations together in a single, non-partisan electronic bidding process that will benefit government with lower interest rates and much faster response time. "Through GovLease.net, e-Leasing intends to take advantage of the broadband communications capabilities AARO offers in order to enhance service to the public and private sectors. In terms of faster document downloads and more comprehensive, secure leasing transactions, this partnership with AARO will allow e-Leasing to provide unsurpassed service to our government clients," Chittenden said. "For example, a bidder with AARO's high-speed connectivity would be able to download the entire financial statement of the City of Oklahoma City in a matter of seconds. The speed and reliability of data are key to our success," Chittenden said. Canfield said AARO expects to have the site up and running by spring 2001. AARO will develop and host the site using content provided by e-Leasing. About AARO AARO Broadband Wireless Communications, Inc. provides wireless connectivity up to 100 Mbps. AARO New World services such as unified communications, IP telephony and video conferencing services are delivered via a highly secure, carrier-class IP network. About e-Leasing Corporation e-Leasing Corporation is committed to providing government with no-cost, high-featured lease services to automate tasks associated with lease bidding and record keeping. e-Leasing has combined great concepts and superior technology, with over 75 years of leasing and public finance experience, to build a strategic partnership with government and the capital markets. e-Leasing offers simple, yet powerful solutions for linking government and capital markets. This document includes forward-looking statements, made under the Safe Harbor Provision of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are generally identifiable by the use of words such as "believe," "expect," "intend," and other words of similar nature. These statements are based on management's current expectations, estimates and projections that are subject to risk and uncertainties, including, but not limited to, success of negotiations, availability of financing, political currency and regulatory, competitive and technological developments. Consequently, actual results could differ materially from those forward-looking statements. AARO Broadband Wireless Communications, Inc. does not undertake, and specifically disclaims, any obligations to update forward-looking statements, which speak only as of the date made. CONTACT: AARO
Broadband Wireless Communications, Inc. Cooper and Kallick Form B.A. Financial Services Philip D. Cooper and Sandy Kallick announce the formation of B.A. Financial Services, Inc. (BAFSI). Cooper, will serve as Chairman of the Board and Chief Executive Officer. Kallick will serve as President and Chief Operating Officer. Cooper has 29 years experience at ORIX Credit Alliance, Inc. where he advanced through the ranks to become Chairman of the Board, President and CEO. Kallick spent 20 years with ORIX Credit Alliance, Inc where he served as Senior Executive Vice President and COO. B.A. Financial Services, Inc. will be a niche player to the Finance Industry, offering creative financing solutions to companies who still appreciate "Relationship Lending", along with consulting services to financial institutions. Cooper says "I am thrilled to be re-entering the finance industry after a brief retirement. The past few years have been extremely challenging for finance and leasing companies and I'm looking forward to lending our expertise to the marketplace." Kallick adds, "Phil and I established an excellent working relationship over our years together at Credit Alliance and I am pleased to have this opportunity to work with him again". Contact: B.A. Financial Services, Inc., Sandy Kallick, President/COO, phone (201) 525-0748, email: skallick@BAFSI.Net. ODDS and ENDS No, you did not miss an edition yesterday, Thursday. It is our policy not to issue a report if it is not warranted. When we started this two years ago, it was every few weeks, grew into once a week, and then after we started the web site, it is almost every day---but not every day. I apologize when the report is too long, but I don't control the news...it controls our publication. We have no advertising, banners, or promotions, so no deadlines caused by "sponsors." We are really non-profit and free, which gives us great freedom and abilities to speak out. United Capital---I hear that Steve Dallas had a successful trip in New York. He did not tell me this. People who he is negotiating to pay "NSF" checks, deals half-way funded, and other problems, he has promised to make good and he seems to be working on "damage control." Let's give Dallas a chance. Let's have faith. Let's be positive, instead of negative. Merge Rumor I have heard many rumors about the various leasing industry associations. Bob Rodi nor any of the directors involved have even alluded to this, but I hear from others, good sources, that the United Association of Equipment Leasing, and I believe it is right to say, the Eastern Association of Equipment Leasing, are about to merge. This has been an effort for as long as I can remember, over five years, and it has come close before. I am told it is almost a "done deal." That may be an exaggeration, but I have heard it from some many people, I am starting to believe the rumor, and perhaps as important, pass it on. I understand there may be one more meeting before this becomes "public." I also have heard the rumor that Michael Flemming, would like to retire. He is 63, I was told. He is a landmark at "ELA." I heard membership was down. Perhaps there may be some truth in that, but I think it is more "sour grapes." I heard that about UAEL, too, especially since they do not have a full time executive director, was down...but my very reliable sources tell me the membership is over 600 ( 582 as of the beginning of December, according to a recent newsletter sent out by Bob Rodi about the "State of UAEL" just received today by mail). It is certainly true that membership may be down at the various organizations. Perhaps we will learn the real truth by April or May when "membership retetention is complete." Look at The List to see how many companies are no longer around this year. I am sure that has an affect; however, now is the time that all professionals should be joining a professional association. If you have the money and energy, join as many as you can. You and your company will benefit. Leasing News Advice In a down time, a down sizing time, a difficult time,you need more information and help than ever before. The remaining companies, the strong ones, are very busy, with a lot of very good deals, and their business, I am told is very good. They are selective. They are really not looking for new brokers or relationships, just trying to keep care of their "faithful." So making alliances, keeping them, learning about your industry, means joining an association. If you are not an Equipment Leasing Association "person," then try another organization. At least, you should belong to the National Association of Equipment Leasing Brokers (www.naelb.org ), whether a broker, funder, software provider, or attorney. Brokers can join for $295 a year. They have a "listserve", as they call it. A instant bulletin or chat room, if you will, that brokers use to find funding sources, to solve problems, to ask for advice, to seek solutions, and the netiquette is improving*. This feature alone is worth the $295 fee for a broker. Buy yourself a Christmas present, and join the NAELB for a year and find out for yourself. If you have the funds, join UAEL.org, as you will get more features and abilities. And if you have the money, elaonline.org is the top of the line. There are other local organizations and meetings as you can find on our site at: netiquette: http://techcorps.org/webcourse/newsgroups/netiquette.html more information http://www.fau.edu/netiquette/net/ for the serious user NAELB Listserve The current thinking of the Board of NAELB is to leave the Listserve as self-regulated rather than impose restrictions. The only real restrictions appear in the subscript of all messages which are to keep your postings concise, on a subject matter of interest to our members and in good taste. If someone posts something that irritates some members (as in the recent flurry of postings over the "direct fenders only please" posting) the response from members should cause that to be self-correcting. We have established an open forum for the NAELB member community. Please tell every NEALB member you know to get on this service. Remember, to send a response to a posting you have two choices: 1) select "reply" on your e-mail program and the response is sent only to the individual who originated the posting or 2) select "reply all" and everyone on listserve will see your response.
Happy Holidays,
Have a nice weekend...I hope to finish up my Christmas shopping, too. Kit Menkin
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