TUNE IN---DON”T BE LEFT OUT

 

1pm, PDT Today www.leasingnews.org/newsmaker.htm

 

Meet the Leasing News Maker Mike Meacher

President, National Association of Equipment Leasing Brokers

 

The only leasing association to report a drop in membership last year.

An organization formed solely for brokers...learn why---

the good, the bad, and the ugly!!!

 

It’s easy to log on and ask questions—full instruction

available on line or at the end of this edition

 

Kit Menkin’s Leasing News www.leasingnews.org Thursday, January 24,2000

 

Headlines----

 

Irwin Financial's Small Ticket Leasing Business Incurs $1.7 Million QIV Loss
Pitney Bowes Capital Names 2 More to Franchise Finance Team

Certified Lease Professionals “Missing”

Broadlane/Healthcare Enter into 3 Year Agreement

Parent of Bank of Walnut Creek Reports Earnings
UnionBanCal Announces Quarterly Cash Dividend
Progress Financial 4th Quarter Net Income $555,000
S&P: 2001 Successes Fuel European ABS in Year Ahead
www.leasingnews.org/newsmaker.htm Instructions
Valentine Day-February 14th

 

###Denotes Press Release

 


Irwin Financial's Small Ticket Leasing Business Incurs $1.7 Million QIV Loss

Irwin Financial's small-ticket leasing line of business which includes Irwin Business Finance, Onset Capital, and Irwin Franchise Capital (www.irwinbf.com), incurred a pre-tax loss of $1.7 million in the fourth quarter, compared with a pre-tax loss of $0.2 million a year earlier and a loss of $4.4 million pre-tax for the year, compared with a $2.6 million pre-tax loss in 2000.

The increased loss was principally the result of difficult economic conditions that led to higher levels of charge-offs and delinquencies, primarily on the company's domestic leases originated in 2000. To address these issues, the company's provision for loan and lease losses totaled $2.8 million during the fourth quarter, compared to $0.6 million a year ago. Lease charge-offs increased to $1.7 million during the fourth quarter, a $1.0 million year-over-year increase. The company tightened its underwriting criteria for its domestic broker business beginning in the first quarter of 2001. Leases originated since that time have shown improved performance. Lease and loan fundings totaled $46.4 million in the fourth quarter, a year-over-year increase of 24.8 percent. The equipment lease and loan portfolio totaled $264.8 million at year-end, a $109.9 million or 71 percent annual increase.

(Courtesy of Monitordaily.com)

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Pitney Bowes Capital Services Names Two Additional Members to Franchise Finance Team

STAMFORD, Conn, -- Pitney Bowes Inc. (NYSE:PBI) announced that Pitney Bowes Capital Services had added two more experienced professionals to their franchise finance team, as listed below. In December 2001, Pitney Bowes Capital Services announced its entry into the franchise finance marketplace where it will be offering customized financial solutions to multi-unit franchise operators.

Pitney Bowes Inc. is a $4 billion global provider of integrated mail and document management solutions headquartered in Stamford, Connecticut. The company serves more than 2 million businesses of all sizes through dealer and direct operations. Pitney Bowes Capital Services operates through Pitney Bowes Credit Corporation, a subsidiary of Pitney Bowes Inc.

For additional information about Pitney Bowes, please visit our website at www.pitneybowes.com.

John Stewart, Director of Marketing & New Business Development
14 years experience in financial services with several major companies
Most recently: National Marketing Manager, SIEMENS MEDICAL SOLUTIONS
FINANCIAL SERVICES
Prior: Director of Marketing, Franchise Finance Group, FINOVA CAPITAL CORP
Barry Parks, Sales Vice President
15 years experience in financial services with several major companies
Most recently: VP & Division Mgr., Communication Finance, FINOVA CAPITAL CORP
Prior: VP Marketing, Franchise Finance Group, FINOVA CAPITAL CORP

(Courtesy of ELAonline)

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Please tune in at 1pm, PDT www.leasingnews.org/newsmaker.htm

Certified Lease Professionals "Missing"

If you know of any of the following e-mail address, telephone number, or company where they may be working, please contact Cindy Spurdle at the CLP Foundation at CWSpurdle@msn.com or at 610-687-0213 or fax 610-687-4111

Ronnie Bissland
Bob Clabots,
Ann Clark,
Cathy Clark,
Kevin Conroy,
Ron Hill,
Tim Hill,
Joyce King,
Jennifer Kardos
Ralph Lewerenz,
Tom Long,
Duncan McIntyre,
Jeff Minott,
Jennifer Mintz,
Pat O'Rourke,
Pat Ontal,
Kris Rector
Patty Russell,
Ron Schultz,
Chris Siri,
Bill Wehner,
Dale Volkamer.

If anyone has an address or phone number please advise Cindy at the CLP Foundation at CWSpurdle@msn.com or at 610-687-0213 or fax 610-687-4111.


. Doug Rees, formerly of Bancorp Financial Services Fame, Now at Enterprise Funding

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Enterprise Funding Group Announces New Name, New Broker Services Program and New Hires.

Grand Rapids, MI. Curt Bobeldyk, President and Chief Lending Officer, announced today that the company's name has been changed to Enterprise Funding Group from Enterprise Capital Corp. "The name change is a function of our recent private equity capitalization and our increased focus on providing much needed funding support to brokers and lessors in the equipment leasing industry. I am very excited about the opportunity to grow an already successful company into new markets. Our focus has always been on providing high quality service in the Michigan and Indiana markets. Growing throughout the Midwest and continuing our conservative, profitable operations under Enterprise Funding Group is the opportunity we have been seeking for some time." The equity placement was handled by Smith and Associates, an investment advisory firm located in Holland, MI.

The company has opened a Broker Services Program, aimed at small ticket ($10,000 to $100,000) transactions for brokers and lessors in the Midwest market area. "We are interested in developing strong relationships with select brokers and lessors that are built on excellent service, prudent underwriting, and mutual trust. We have identified a need for our services and plan to be a key player for years to come", said Bobeldyk. Doug Rees, formerly of Bancorp Financial Services, has joined Enterprise Funding Group to head up the Broker Services Program. "Doug has the contacts and expertise to grow our program. I am very excited to have him as a part of our team," said Bobeldyk.

Thomas F. Walker has also joined Enterprise Funding Group as a business development representative in Michigan. Tom has 17 years of lending experience, most recently with First International Bank.

Enterprise Funding Group is a Grand Rapids, MI-based equipment finance company, specializing in hard asset equipment in manufacturing, industrial, and construction industries in the Midwest. The company's website is www.enterprisefundinggroup.com.

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Valentine Day-February 14th

Valentine Day is right around the corner. Now is the time to start thinking of ordering some chocolate to your significant other, mother, spouse, sister, daughter, or business associate to show your appreciation

Australian
www.bellefleur.com.au/

Belgian
www.orderline.com/chocolate/

French, wow
www.french-chocolate.com

www.zChocolat.com
from Provence, fast delivery, raves about gift, plus "refresh" club

Great Britain
www.thechocolatesociety.co.uk/

Mendocino, CA. U.S.A.
www.mendocino-chocolate.com
on line store and also worth the drive to Mendocino, too.

New Jersey, U.S.A.
www.ethelm.com

San Jose, Ca. U.S.A.
www.schurras.com
Silicon Valley's finest

United States
www.godiva.com

www.sees.com
Great chocolate, underrated by many until you try one, business discounts up to 30% are available

Boxed Chocolate Ratings from Consumer Reports http://www.americanleasing.com/recommendations/chocolateRated.htm

History of St. Valetine's Day

5th Century, Rome

Mid February was traditionally the time of the Lupercian festival, an ode to the God of fertility and a celebration of sensual pleasure, a time to meet and court a prospective mate. In AD 496, Pope Gelasius outlawed the pagan festival. But he was clever to replace it with a similar celebration, although one deemed morally suitable. He needed a "lovers" saint to replace the pagan deity Lupercus.

The martyred Bishop Valentine was chosen as the patron saint of the new festival. Saint Valentine had been beheaded for helping young lovers marry against the wishes of the mad emperor Claudius. Before execution, Valentine himself had fallen in love with his jailer's daughter. He signed his final note to her, "From Your Valentine", a phrase that has lasted through the centuries

Pope Gelasius didn't get everything he wanted. The pagan festival died out, it is true, but he had further hoped people would emulate the lives of saints. Instead they latched onto the more romantic aspect of Saint Valentines religious life. While not immediately as popular as the more passionate pagan festival, eventually the concept of celebrating true love became known as Valentine's Day

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Broadlane and HealthCare Markets Group Enter Into Three-Year Financial Management Services Agreement

SAN FRANCISCO & NEWPORT BEACH, Calif Broadlane Inc., a leader in providing supply chain management services to the healthcare industry, today announced an agreement with HealthCare Markets Group (HMG), a respected supplier of specialty financial advisory services to the healthcare industry, to provide equipment lease management services to Broadlane's customers. The three-year agreement, which is effective immediately, covers database management and negotiation services for the termination or restructuring of leased and rented capital equipment contracts.

HMG's Lease Management Program provides financial management services that optimize purchase options, or restructure terms of capital equipment assets on fair market value leases or rentals, therefore eliminating or limiting the exposure to leases or rentals that are not cost effective.

"Broadlane operates one of the most dynamic and successful purchasing programs in the industry and we are delighted with the opportunity to be able to serve their diverse customer base of hospitals and other healthcare facilities," said Matt Morsey, partner of HMG.

Under the Lease Management Program, HMG assumes the leadership role in an area of financial management often overlooked by healthcare providers: tracking, analyzing, managing and negotiating end-term solutions that optimize purchase options or restructuring terms of capital equipment assets on fair market value leases or rentals. HMG's Lease Management Program has successfully resolved over $500 million in lease and rental contracts saving its clients millions annually.

"We are committed to offering our customers the most progressive and innovative services available in the market," said Bill Thomas of Broadlane's Contracting Services Department. "HMG has proven its ability to reduce the costs associated with the lease and rental of capital equipment and we are pleased to offer their services to our customers."

About Broadlane

Through an extensive suite of services, Broadlane delivers comprehensive supply chain management services to the healthcare industry. Those services include contract management, procurement strategy consulting, materials management outsourcing, and technology services. Among the companies that focus on improving efficiencies within the healthcare supply chain, only Broadlane offers this full array of services.

Broadlane customers include leading healthcare providers such as Kaiser Permanente, Tenet Healthcare Corporation (NYSE:THC), Universal Health Services (NYSE:UHS), Continuum Health Partners, The Health Alliance of Greater Cincinnati, Community Health Systems (NYSE:CYH), U.S. Oncology (Nasdaq:USON), IASIS Healthcare and others. Broadlane counts among its customers more than 300 acute care hospitals and more than 1,400 sub-acute care facilities. Broadlane has offices in San Francisco and Oakland, Calif.; Cincinnati; Dallas; and New York City. For more information visit www.broadlane.com.

(Courtesy of ELAonline.com)

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Progress Financial Corporation Announces Fourth Quarter Net Income of $555,000 or $.10 per Share

Mr. Wycoff went on to say, "The expansion of our retail branch franchise by 25% and the excellent performance of our real estate and SBA lending divisions in 2001 contributed to our ability to weather the technology and economic downturn. When the Comerica sale is completed, we will have significantly reduced our Company's risk profile, and we look forward to continued growth in 2002 based on our community banking strategy."

BLUE BELL, Pa., --
Progress Financial Corporation (the "Company")(Nasdaq: PFNC) today reported fourth quarter 2001 earnings of $555,000, or diluted earnings per share of $.10. Operating earnings, which excludes gain from sale of securities, gain on sale of investments in unconsolidated entities, equity (loss) in unconsolidated entities, gain on sale of Maryland leasing division, client warrant income (loss), additional loan loss provisions, income from discontinued operations, non-recurring write-offs and data processing conversion costs, net of tax, for the fourth quarter of 2001 were $447,000, or diluted earnings per share of $.08, compared to $1.8 million, or diluted earnings per share of $.31 in the fourth quarter of 2000. Operating earnings, net of tax, for the year ended December 31, 2001 were $4.0 million, or diluted earnings per share of $.69 compared to $5.8 million, or diluted earnings per share of $.96 for the year ended December 31, 2000.

Net income for the three months ended December 31, 2001, was $555,000, or diluted earnings per share of $.10, compared to net income of $1.4 million, or diluted earnings per share of $.24 for the fourth quarter of 2000. Results for the three months ended December 31, 2001 included a gain on the sale of investments in unconsolidated entities of $802,000 and a gain on sale of securities of $509,000 as compared to a gain on the sale of securities of $270,000 for same quarter in 2000. Results for the fourth quarter of 2001 included goodwill write-offs of $440,000 and an extraordinary loss of $301,000 relating to the early extinguishment of debt. During the fourth quarter of 2000, the Company had recognized a $1.7 million gain on the sale of the Maryland-based leasing division.

Net income for the twelve months ended December 31, 2001, was $544,000, or diluted earnings per share of $.10, compared to net income of $7.3 million, or diluted earnings per share of $1.22 for the twelve months ended December 31, 2000. A gain on sale of securities of $2.8 million was realized for 2001 as compared to a gain of $533,000 for 2000. Results for year ended December 31, 2001 included losses of $1.9 million from client warrants, due to the permanent impairment of equity securities received from warrants, compared to gains of $3.5 million in 2000, which were primarily due to market appreciation on these same warrants recorded in accordance with FASB 133. The provision for loan and leases losses was $7.1 million for the year ended December 31, 2001 as compared to $4.4 million for 2000. The increase was undertaken primarily due to increases in criticized loans, the level of charge-offs, non-performing assets, and continued economic concerns.

To comply with the directive issued by the Office of Thrift Supervision ("OTS") to reduce lending to early stage technology companies, Progress Bank entered into an agreement to sell loans totaling $25.6 million at December 31, 2001 from the Bank's specialized lending division to Comerica Bank - California (Comerica). The sale was announced during November 2001 and has been approved by OTS and the Board of Governors of the Federal Reserve System and the transaction is expected to close by January 31, 2002, subject to approval of State regulatory authorities.

At December 31, 2001, Progress Bank's Tier 1 leverage ratios and total risked-based capital ratios were 7.90% and 12.85%, respectively. As a result, Progress Bank was in compliance with the terms of the directive which requires the Bank to maintain 7.50% and 12.00% Tier 1 leverage and total risked-based capital ratios at December 31, 2001, respectively.

In December 2001, the OTS agreed to extend the dates by which the Bank must comply with a designated ratio of classified assets to capital. As revised, the Bank's classified assets to capital ratio must not exceed 25% on March 31, 2002 and must not exceed 20% on June 30, 2002. At December 31, 2001, the Bank's classified assets to capital ratio was approximately 36%. Commenting on the fourth quarter results, W. Kirk Wycoff, President and CEO, stated, "We completed a number of important transactions in the fourth quarter to enable us to refocus on community banking. While it was expensive and time-consuming to exit these business lines, we are committed to restoring our shareholder value based on our community banking franchise. Our results for the fourth quarter and the year 2001 reflect the significant reserve additions to address credit and economic concerns as well as flat net interest income due to rapidly declining interest rates. These costs reflect our transition to a credit-based and asset-sensitive community bank model, which we believe will generate consistent results in varying interest rate and credit environments."

Mr. Wycoff went on to say, "The expansion of our retail branch franchise by 25% and the excellent performance of our real estate and SBA lending divisions in 2001 contributed to our ability to weather the technology and economic downturn. When the Comerica sale is completed, we will have significantly reduced our Company's risk profile, and we look forward to continued growth in 2002 based on our community banking strategy."

Average earning assets for the fourth quarter of 2001 decreased slightly to $833.3 million from $835.2 million for the same period in 2000. Tax- equivalent interest income for the fourth quarter of 2001 decreased $3.9 million, or 21%, over the same period in 2000 while interest expense decreased $3.0 million or 30% for the same period. Tax-equivalent net interest income decreased $861,000, or 10% as compared to the fourth quarter of 2000. The net interest margin for the fourth quarter of 2001 was 3.58% compared to 3.99% for the same period in 2000 and 3.78% for the third quarter of 2001. The margin has been compressed by an environment of unprecedented decreases in short-term rates during 2001 of 475 basis points and the reduction in earnings assets from the third quarter.

Average earning assets for the year ended December 31, 2001 were $845.9 million compared to $773.3 million for 2000. The growth in average assets relates primarily to purchases of mortgage-backed securities and higher commercial real estate and business loan production funded by higher levels of deposits. Tax-equivalent interest income for the twelve months ended December 31, 2001 increased $2.0 million, or 3%, over the same period in 2000. Tax-equivalent net interest income remained level for 2001 as compared to 2000. The net interest margin was 3.79% for the year ended December 31, 2001 compared to 4.17% for 2000. Loans and leases outstanding totaled $530.5 million at December 31, 2001 compared to $543.1 million at December 31, 2000. This decrease was primarily due to payoffs and sales of commercial business loans and lease receivables partially offset by increases in construction loans and commercial real estate loans. Loans outstanding at December 31, 2001 include loans held for sale of $25.6 million which are primarily commercial business loans from Progress Bank's specialized lending division included in the previously announced sale to Comerica. The Company reported non-performing assets of $10.9 million at December 31, 2001 compared to $5.8 million at December 31, 2000 and $6.3 million at September 30, 2001. The increase in non-performing assets at December 31, 2001 is primarily the result of two additional non-accrual commercial business loans. The Company's non-performing assets to total assets ratio at December 31, 2001 was 1.28% compared to .63% at December 31, 2000. The non-performing loans to assets ratio was 1.10% at December 31, 2001 compared to .44% at December 31, 2000. The ratio of the allowance for loan and lease losses to total loans and leases has increased to 1.87% at December 31, 2001 compared to 1.36% at December 31, 2000.

Non-interest income for the three months ended December 31, 2001 amounted to $5.5 million compared to $6.5 million for the same period in 2000. The quarter ended December 31, 2001 included a gain on the sale of investments in unconsolidated entities of $802,000. The Company's subsidiary, Progress Capital, Inc., sold its limited partnership interest in a venture capital fund resulting in a gain of $964,000 representing the amount by which the Company had previously written down its investment. The Company's subsidiary, Progress Development Corporation, sold its interest in Progress Development I, L.P. resulting in a loss of $162,000. For the three months ended December 31, 2001, a gain on sale of securities of $509,000 was realized as compared to $270,000 for the same quarter in 2000. Equity in unconsolidated entities was $184,000 for the fourth quarter of 2001 as compared with a loss of $802,000 for the same period in 2000. Fee income for the quarter decreased $800,000 primarily due to lower mutual fund, annuity and insurance commissions from the Company's subsidiary, Progress Financial Resources, Inc. During the fourth quarter of 2000, the Company recognized a $1.7 million gain on the sale of the Maryland-based leasing division.

Non-interest income for the twelve months ended December 31, 2001 amounted to $16.1 million, compared to $19.5 million for 2000. The year ended December 31, 2001 included a gain on sale of securities of $2.8 million compared to a gain of $533,000 for 2000. The securities gain during 2001 included a $708,000 gain on the disposition of the Company's investment in NewSeasons Assisted Living Communities Series B and C stock. The Company recognized a loss of $1.9 million from client warrants during 2001 compared with a gain of $3.5 million during 2000. Loss in unconsolidated entities was $634,000 for the year ended December 31, 2001 compared with a loss of $2.8 million for 2000. The 2001 loss in the unconsolidated entities primarily relates to a loss on its investment in a venture capital fund and the 2000 loss primarily relates to a loss on its investment in its mezzanine debt fund and venture capital fund. Fee income decreased $1.2 million for the year primarily due to lower mutual fund, annuity and insurance commissions from the Company's subsidiary, Progress Financial Resources, Inc., and decreased loan, brokerage and advisory fees from the Company's subsidiary, Progress Realty Advisors, Inc., which was partially offset by increased consulting fees generated by the Company's subsidiary, KMR Management, Inc. During 2000, the Company recognized a $1.7 million gain on the sale of the Maryland-based leasing division.

Total non-interest expense remained level at $10.8 million for the quarter ended December 31, 2001 compared to the quarter ended December 31, 2000. Excluding non-recurring expenses of $710,000 in 2001 and non-recurring expenses of $501,000 in 2000, non-interest expense decreased $192,000. The non-recurring expenses for 2001 primarily included write-offs related to Progress Leasing Company, including a goodwill write-off of $440,000. Non- recurring expenses for 2000 included a write-down of goodwill associated with the AMIC Division of Progress Realty Advisors, Inc. for $373,000. Professional services expenses increased $162,000 primarily due to legal expenses related to loans to pre-profit companies and the business activities of KMR Management, Inc. Salaries and employee benefits decreased $445,000 mainly due to lower commission expense for Progress Financial Resources, Inc.

Total non-interest expense was $39.6 million for the twelve months ended December 31, 2001 compared to $38.3 million for 2000. Excluding non-recurring expenses of $1.1 million in 2001 and non-recurring expenses of $752,000 in 2000, non-interest expense increased $925,000. The non-recurring expenses for 2001 primarily included write-offs related to Progress Leasing Company, including a goodwill write-off of $440,000 and a write-down of used asset inventory for $422,000. Non-recurring expenses for 2000 included a write-down of goodwill associated with the AMIC Division of Progress Realty Advisors, Inc. of $373,000 and data processing conversion costs of $379,000. Professional services expenses increased $1.2 million primarily due to the business activities of KMR Management, Inc. and legal expenses related to loans to pre-profit companies. Occupancy expense increased $239,000 in 2001 mainly due to the establishment of four new banking offices. Capital securities expense increased $371,000 due to the issuance of $6.0 million of 11.445% capital securities in July 2000. Salaries and employee benefits decreased $1.0 million in 2001 mainly due to lower commission expense for Progress Financial Resources, Inc.

During the fourth quarter of 2001, the Company paid off $10.0 million of long-term Federal Home Loan Bank borrowings resulting in an extraordinary loss on the early extinguishment of debt of $301,000.

Total assets decreased to $851.4 million at December 31, 2001 from $914.2 million at December 31, 2000. Total deposits increased to $629.5 million at December 31, 2001 from $617.5 million at December 31, 2000.

Progress Financial Corporation is a unitary thrift holding company headquartered in Blue Bell, Pennsylvania. The business of the Company consists primarily of the operation of Progress Bank, which serves businesses and consumers through twenty full service offices. The Company also offers financial planning services, life insurance, and investments through Progress Financial Resources, Inc., headquartered in Philadelphia, Pa. In addition, the Company receives fees for financial and operational management consulting services for commercial clients through KMR Management, Inc. located in Willow Grove, Pa. The Company's common stock is traded on The Nasdaq Stock Market under the Symbol "PFNC".

Progress Financial Corporation

Supplemental Balances
Period-End Balances At: December 31, 2001 December 31, 2000 % Change

Loans and Leases, Net:
Commercial business (B) $146,844 $175,972 (16.6%)
Commercial real estate (B) 197,394 178,874 10.4
Construction, net of loans in process 77,380 60,172 28.6
Single family residential real estate 26,518 34,676 (23.5)
Consumer 44,821 37,242 20.4
Leases receivable 37,572 56,183 (33.1)
Total loans and leases 530,529 543,119 (2.3)
Allowance for loan and lease losses (9,917) (7,407) 33.9
Loans and leases, net $520,612 $535,712 (2.8%)
Deposits:
Non-interest bearing demand deposits $ 84,783 $ 88,356 (4.0)%
NOW and SuperNow 120,665 104,047 16.0
Money Market 45,779 37,157 23.2
Passbook and Statement Savings 30,191 27,337 10.4
Time deposits 348,105 360,646 (3.5)
Total Deposits $629,523 $617,543 1.9%

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parent of Bank of Walnut Creek Leasing

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BWC Financial Corp. Announces Fourth Quarter & Year End 2001 Earnings

WALNUT CREEK, Calif--James L. Ryan, chief executive officer and chairman of the Board of BWC Financial Corp. (Nasdaq:BWCF) and its subsidiaries Bank of Walnut Creek and BWC Mortgage Services, announced Fourth Quarter and Year End 2001 earnings.

Net income for the Corporation for the year ending December 31, 2001 was $5,464,000 or $1.60 diluted earnings per share, compared to net income of $6,435,000 or $1.83 diluted earnings per share at Year End 2000.

Earnings for the Year 2001 represent a return on average assets (ROA) of 1.45% and a return on average equity (ROE) of 14.97%, compared to an ROA of 1.97% and an ROE of 20.45% for the Year 2000.

Fourth Quarter 2001 income was $1,394,000 or $0.41 diluted earnings per share compared to Fourth Quarter 2000 income of $1,722,000 or $0.50 diluted earnings per share. Earnings for Fourth Quarter 2001 represent a return on average assets (ROA) of 1.37% and a return on average equity (ROE) of 14.64%, compared to a 1.99% ROA and a 20.63% ROE for Fourth Quarter 2000.

Total assets of the Corporation at December 31, 2001 were $395,057,000, compared to total assets of $350,513,000 at Year End 2000. Additional details may be found in the Summary of Consolidated Financial Results for Year End and Fourth Quarter 2001:

BWC Financial Corp. Consolidated Financial Results In thousands except share and per share amounts

                                                  Quarter Ended                     Year to Date

SUMMARY INCOME STATEMENT             December 31,                         December 31,

                                                                2001          2000                             2001          2000

                                                               ----------------------------------------

Interest Income                                         $ 7,191         $ 8,774                $30,879          $32,138

Interest Expense                                     1,610                   2,625                  8,591          9,139

                                                             ----------------------------------------

Net Interest Income                                5,581                  6,149                  22,288         22,999

Provision for Credit Losses                     450                     375                    1,600            1,150

Non-interest Income                           2,788                   1,948                   9,054              5,885

Non-interest Expenses                       5,481                   4,928                   20,386          17,295

Minority Interest                                240                       140                         695                327

                                                                                       ----------------------------------------

EBIT                                                   2,198                   2,654                   8,661               10,112

Income Taxes                                     804                   932                      3,197                   3,677

                                                                                       ----------------------------------------

Net Income                                $ 1,394                  $ 1,722                  $ 5,464                  $ 6,435

Basic EPS                            $ 0.45                          $ 0.55                     $ 1.75                  $ 2.03

Diluted EPS                        $ 0.41                        $ 0.50                        $ 1.60                  $ 1.83


SELECTED PERFORMANCE RATIOS

Return on Average Assets                  1.37%             1.99%             1.45%             1.97%

Return on Average Equity                  14.64%             20.63%           14.97%        20.45%

Net Interest Margin to Earning Assets     5.87%         7.61%             6.36%           7.61%

Efficiency Ratio (Bank only)                  60.51%            56.03%          60.08%      55.14%

SUMMARY BALANCE SHEET
In thousands                                                    December                                  December
                                                                                31,                                                 31,
Assets:                                                                 2001                                             2000
                                                                              --------                                            --------
Cash and Equivalents                                    $ 21,049                                         $ 24,472
Investments                                                      86,709                                               67,945
Loans 281,467 252,323
Allowance for Credit Losses                           -5,403                                               -5,042
Other Assets 11,235 10,815
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Total Assets                                                     $395,057                                         $350,513
Deposits                                                         $340,469                                               $309,636
Other Borrowings                                           12,955                                                  2,424
Other Liabilities                                               3,381                                                     4,242
-------- --------
Total Liabilities                                              $356,805                                                $316,302
Equity                                                             38,252                                                     34,211
Total Liabilities and Equity                           $395,057                                               $350,513

BWC Financial Corp. has been recognized by U. S. Banker as a "truly successful company" and was cited by Contra Costa Newspapers as one of the 50 Fastest Growing Companies in the East Bay. The Bank's headquarters and main office are at 1400 Civic Drive, Walnut Creek. Additional branch offices are in Orinda, San Ramon, Danville, Pleasanton, and Livermore, with Regional Business Centers in Fremont and San Jose. BWC Mortgage Services, with headquarters in San Ramon, has mortgage consultants in each of the Bank's branch offices.

Nasdaq:BWCF
http://www.bowc.com

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UnionBanCal Corporation Announces Quarterly Cash Dividend

SAN FRANCISCO--UnionBanCal Corporation (NYSE:UB) announced today a cash dividend of 25 cents per share of common stock for the first quarter of 2002, unchanged from the fourth quarter of 2001. The dividend will be paid on April 5, 2002, to shareholders of record as of March 8, 2002.

UnionBanCal has approximately 156.5 million shares of common stock outstanding. Based in San Francisco, UnionBanCal Corporation is a bank holding company with assets of $36.0 billion at December 31, 2001. Its primary subsidiary is Union Bank of California, N.A., the third largest commercial bank in California with 245 banking offices in California, six banking offices in Oregon and Washington and 15 international facilities. The Web site is located at www.uboc.com.

--30--mmc/sf*

CONTACT: UnionBanCal Corporation
Stephen L. Johnson, 415/765-3252 (Public Relations)
John A. Rice, Jr., 415/765-2998 (Investor Relations)

KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: BANKING
SOURCE: UnionBanCal Corporation

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S&P: 2001 Successes Fuel European ABS in Year Ahead

LONDON--Consumer finance and small-ticket leasing transactions are expected to provide a solid backbone to the European asset-backed securities (ABS) market in the year ahead, fuelled by the successes of 2001. Public issuance volumes came in a huge 56% higher, ending at $17.0 billion (EUR19.3 billion) compared with $10.9 billion a year earlier.

The number of transactions that closed was less impressive, up 13.8% at 33 compared with 29 in 2000, underscoring the fact that many of these transactions are now being executed on a much larger scale, said Perry Inglis, a director at Standard & Poor's Structured Finance Ratings group in London.

"This trend toward larger issuance has grown in response to increasing investor demand for these bonds, an attraction that arises from their strong performance history," he said. "Indeed, the highly diversified, de-linked nature of the pools and low interest rate levels meant that there was no direct effect on the performance of European consumer ABS transactions and no negative rating activity in this sector as a direct result of Sept. 11 events."

He added that a combination of repeat issuance and enquiries from many new sources will guarantee a minimum volume in the year ahead with Continental Europe playing a pivotal role after its impressive 2001 performance when volumes there significantly outpaced those of the U.K.

U.K. volumes slowed down dramatically with a 57.8% decline seen as volumes ended at $1.9 billion compared with $4.5 billion a year earlier, a slump that Mr. Inglis directly attributes to a "larger-scale transactions tendency."

"Some of the big players were absent from the U.K. market over the course of 2001, accounting for the slide in volumes," he said. "Many credit card issuers in particular are waiting to generate sufficient collateral to issue larger transactions than they would have in the past. These deals will be issued on a less frequent basis."

Continental European activity in contrast was extremely robust, notably in the auto loan and equipment leasing sectors as credit card usage still remains low, Mr. Inglis said further.

"The European consumer finance market is still in its relative infancy and it may be some time before there are sufficiently seasoned pools that can be securitized to take Europe into the same league as its U.S. counterpart," he said. "However, the leasing market significantly geared up over the past two years."

In the jurisdictional league tables Italy came up trumps, with volumes surging two-fold higher to dethrone the U.K. from its premier position. Volumes ended at $5.8 billion compared with $2.5 billion a year earlier, a figure that excludes all nonperforming assets.

The number of Italian transactions that closed almost doubled to end at 13 compared with seven a year earlier. Chris Such, an associate director at Standard & Poor's Structured Finance Ratings group in London, expects a similar bullish performance in the year ahead.

"The Italian ABS market has grown rapidly over the past couple of years to a point where it is now the biggest issuer in this section of the European ABS market," he said. "It now accounts for one-third of all European deals. This trend is expected to continue through 2002 with Italy establishing itself as the main European market for consumer ABS."

He added that Portuguese ABS activity was rekindled in 2001 after a period of relative inactivity. And, while he expects a number of transactions to hit the market in 2002, volumes will not significantly outpace those levels seen in 2001 when the Portuguese market issued approximately 5% of all European transactions, Mr. Such added.

"We're expecting a steady flow of issuance from Portugal in the coming year, principally driven by the auto-loan sector," he said. "Concerns continue to surround the withholding tax issue in Portugal and until this issue is fully resolved in a revision to the Portuguese securitization laws it is unlikely the market will grow much above the levels that are currently being observed."

Volumes for the Portuguese ABS market ended at $706.7 million compared with $431.0 million a year ago. By number, volume was on par on a year-on-year basis, ending at three.

A copy of Standard & Poor's detailed report is available on RatingsDirect, Standard & Poor's Web-based credit analysis system, at http://www.ratingsdirect.com. The report is also available on Standard & Poor's Ratings Services Web site at http://www.standardandpoors.com. Under Forum, select Ratings Commentaries, then Structured Finance.

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