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Kit Menkin's Leasing News www.leasingnews.org Tuesday, July 16 2002 Accurate, fair and unbiased news for the equipment Leasing Industry ------------------------------------------------------------------------------------- Headlines---- Greenspan Tells Congress--On the Road to Recovery Stock Markets Tumble in Europe, Asia AGLF Loses 32% Membership Photoshop Owner: Open Complaint Advance Rentals---Accusations Confidence Falls With the Dollar Not My E-mail Still Making the Rounds e-ClassicSystems Leasing Program for ATM Manager Pro eLessors Networking Association Evolving Beyond Technology Take Me Out To The Ball Game . . .July 24th, Anaheim, CA First Niagara Financial Reports 2nd Quarter Earnings Willis Lease Finance Recruits Monica J. Burke as CFO Business Leasing News---July Edition by David G. Mayer Why stock options are an evil not addressed--NY Times Dennis Brown---Streamline Sales Tax Report Non-Leasing Business News In Brief ### Denotes Press Release Non-Leasing Business News In Brief ---------------------------------------------------------------------- Economy Is on Road to Recovery, Greenspan Tells Congress By THE ASSOCIATED PRESS WASHINGTON (AP)-- Federal Reserve Chairman Alan Greenspan told Congress Tuesday the economy is on the road to full recovery but will keep feeling the effects of last year's recession. Corporate executives should be held accountable to accurately state the financial condition of their companies, he said. ``The effects of the recent difficulties will linger for a bit longer but as they wear off, and absent significant further adverse shocks, the U.S. economy is poised to resume a pattern of sustainable growth,'' Greenspan told the Senate Banking Committee. The markets remained volatile, however, and investors seemed to take little comfort in promising second-quarter earnings reports or Greenspan's report. Stocks fell sharply in early trading, as the Dow Jones industrials plummeted by more than 170 points. Delivering his semiannual report on the economy, Greenspan struck a more upbeat and reassuring tone than he had earlier this year. He said he and his Fed colleagues now expect the economy this year to grow between 3.50 percent and 3.75 percent when measured from the fourth quarter of 2001. That's stronger than the 2.5 percent to 3 percent pace forecast in February. But he also sounded a warning. ``Financial markets have been notably skittish of late and business managers remain decidedly cautious,'' Greenspan said. To restore investor trust shaken by the accounting scandals, Greenspan said CEOs must be held accountable to accurately report on the financial condition of their companies and should be penalized for not doing so. Greenspan said checks and balances on corporate governance that worked well in the past might have been hurt by the go-go mentality of the 1990s that ``arguably engendered an outsized increase in opportunities for avarice.'' Greenspan's testimony comes as a startling wave of accounting scandals threatens to cause consumers and businesses to spend and invest less. It was deep cuts in capital spending that helped to push the economy into recession last year. ``Considerable uncertainties -- about the progress of the adjustment of capital spending and the rebound in profitability, about the potential for additional revelations of corporate malfeasance and about possible risks from global political events and terrorism still confront us,'' Greenspan said. Against that backdrop and given that inflation has remained low, Fed policy- makers have opted to hold short-term interest rates at 40-year lows at each of their four meetings this year. ``We have chosen to maintain that stance pending evidence that the forces inhibiting economic growth are dissipating enough to allow the strong fundamentals to show through more fully,'' Greenspan said. A growing number of economists believe the Fed will keep rates unchanged through the rest of the year. Low interest might motivate consumers to keep spending and businesses to invest, forces that would bolster economic growth. Consumers, whose spending accounts for two-thirds of all economic activity, have been holding up despite the spotty recovery and the sour stock market, Greenspan said. A growing number of economists believe the Fed will keep rates unchanged through the rest of the year, and they said that view was reinforced by Greenspan's remarks. Low interest might motivate consumers to keep spending and businesses to invest, forces that would bolster economic growth. ``The Fed will stand pat and will not be doing anything for awhile in terms of interest rates --either lowering them or raising them,'' said Wells Fargo's chief economist Sung Won Sohn. ``He implied that the crisis of confidence in the stock market could go on for awhile, and we shouldn't expect any significant improvement in confidence any time soon,'' the analyst said. Weak stocks have yet to crimp consumer spending because of offsetting boosts from low interest rates, solid appreciation in home values and extra cash from refinancing. In contrast, business spending has remained weak, he said. Companies whose profits took a hit during the slump are reluctant to make big commitments in hiring and in investment until they are sure the recovery is here to stay. Greenspan repeated his support for forcing companies to treat lucrative stock options for top executives as a business expense. Fed policy-makers' forecast is for the nation's unemployment rate -- now at 5.9 percent -- to peak at between 5.75 and 6 percent later this year, an improvement from the Fed's earlier forecast and significantly below the 7.8 percent jobless rate hit in the last recession of 1990-91. Inflation was forecast to be moderate this year, with consumer prices as measured by a price gauge tied to the gross domestic product to increase by about 1.5 percent to 1.75 percent, little changed from an earlier estimate. ( full testimony before Congress at bottom of news ) ---------------------------------------------------------------------------------------------- Stock Markets Tumble in Europe, Asia LONDON (AP) - Stock prices fell Tuesday in Europe and Asia in the wake of U.S. financial scandals and wild fluctuations on Wall Street. Analysts said investors' confidence in the U.S. economy and corporate reports had been shaken. ``It's a structural problem. People are saying, 'We don't believe the numbers,''' said Akber Khan, a London-based analyst with Deutsche Bank. London's Financial Times-Stock Exchange 100-share index was down 59.90 points, or 1.5 percent, at 3,934.60 Tuesday afternoon, reversing early gains, despite news that Britain's inflation rate had fallen to its lowest level in more 25 years. On Monday, the FTSE fell 5.4 percent to its lowest close since Dec. 17, 1996, and the biggest single-day fall since the Sept. 11 terrorist attacks. By midday Tuesday, Frankfurt's Xetra DAX fell 7.63 points, or 0.2 percent, to 3,904.88, and the Paris CAC-40 was down 43.15 points, or 1.3 percent, at 3,280.59. With the U.S. dollar weakening against the Japanese yen and the euro, investor confidence has been shaken by accounting scandals at major American companies, and fears of more to come. The Dow Jones industrial average briefly plunged more than 400 points Monday in New York, although it recovered to close 45 points lower for the day at 8,639.19. In early trading Tuesday, the Dow was down another 200 points. European investors continued to be wary amid fears of further falls to come. Major Asian stock markets had a difficult Tuesday, too. Tokyo's benchmark 225-issue Nikkei Stock Average shed 124.73 points, or 1.20 percent, to close at 10,250.42. The Nikkei regained some ground by midday, but worries crept back toward the end of the day. Singapore's Straits Times Index fell 23.91 points, or 1.5 percent, to 1,585.85, and benchmarks also fell more than 1 percent in Taiwan and South Korea. In Hong Kong, the benchmark Hang Seng Index dipped 160.17 points, or 1.51 percent, to 10,421.49. ``One must wait to see if the declines in the U.S. dollar and U.S. stocks are an omen of more volatility to come,'' the Chinese-language Hong Kong Economic Journal said in a front-page commentary. Deutsche Bank's Khan doubted there would be a quick end to the turmoil. ``We're nowhere near resolving the problems,'' he said. ``We're just going to continue to drift.'' ------------------------------------------------------------------------------------------------------- Association of Government Leasing and Finance Loses 32% Membership “Jorie Lagerwey ( former executive director ) no longer works here. Please make a note of the new address for AGL&F, since May 2001, located at the bottom of this email. This may be the cause of returned mail. “232 Members “Also, I will add you to our email newsletter so that you can be better informed of our activities. Cordially, -- Graham Hauck Executive Director Association for Governmental Leasing and Finance 1255 23rd Street, NW Washington, DC 20037 202.742.AGLF (2453) fax: 202.833.3636 email: gsh@aglf.org The association went from 250 members in June of last year to 343 at the end of last year. According to the new Executive Director, Graham Hauck, as of June, 2002 it stands at 232. AGLF was founded in 1981 to serve municipal leasing industry. Publishes Bi-monthly newsletter; sponsors 2 annual conferences; 50-state leasing survey; federal leasing survey; and conducts numerous industry projects. Two types of membership: regular member - private sector organizations active in leasing/finance; governmental member - any state, territory, US possession, District of Columbia, or political subdivision of above. Dues information: As many people as would like to from any one company may join. One person must be designated the Regular Member and pay $650/year dues. The other members are designated Additional Members and pay $150/year dues. Non-members are very welcome at our conferences. For registration materials, they can call 202.742.AGLF (2453) or email 202.742.AGLF (2453) ---------------------------------------------------------------------------------------------------- Photoshop Owner: Open Complaint Applied for a lease, was approved, allegedly, the digital printer was not delivered, original funder closed doors, several months go by, new funder (a bank) wanted more information, provided, credit, formal approval given, vendor did not trust original broker, would not deliver, deal fell apart, lessee wanted check back for $4,441.12 , broker/discounter/superbroker said, no, worked hard on this, plus you signed:
NOTICE
OF ACKNOWLGEMENT AND UNDERSTANDING “The attached documents represent a binding legal contract between you ( the Lessee) and ******* ( the Lessor). The obligation is not cancelable. There is no right to return the equipment or to a refund.” “Your next invoice and/or coupon book will be forwarded to you shortly. Payments are due monthly on the due date shown.” A third paragraph states: “ Please sign this notice as your understanding and acknowledgment of the notice and your further acknowledgment that these lease documents represent the only agreements between you( the Lessee) and *****. No other agreements regarding warranty, performance or profits to be generated by the equipment, whether written or implied are in existence with the Lessor.” It does not appear the lessee/broker/discounter/superbroker whom the complaint is addressed is not in the business of just keeping advance rentals, and appears through all the time and paperwork to have spent much time and effort working on the transaction. A check was submitted for $4,441.12 (“This represents the first and last payments plus tax, $165.00 inspection fee and a $175.00 documentation fee”) The broker/discounter submitted all the papers, including a commission sheet from the original transaction that showed a $1.00 purchase option, meaning it was a Capital Lease. The commission was 15%. This buy rate for 48 months was .02879 and sell rate .03310. The actual contract, used, with the second “funding source,” shows a “sell rate” of .03589. The interest may be calculated in several manners, but for simplicity, let’s say it is over 30% with first and last in advance. Broker/discounter/superbroker says will not return any money, “ I earned it, plus I
have this signed document.” Applicant’s reaction: Well. I really feel ripped off. “This guy strung me along. Making me feel everything was OK. That letter I signed made me feel like the deal was funded and I would be seeing my payment book any day. Figured no risk. Deal is done. Also, the word deposit wasn't used, but first and last lease payments. I felt no risk at all until the vendor called and said they couldn't ship because his Purchase Order had an expiration date on it previous to the 90 day agreement as stated in the lease agreeement. “I can't believe ********* and yourself find this acceptable to keep $4100 dollars for making a few phone calls and sending a couple faxes and pulling a 40.00 credit report worth taking a small business person for 4K! especially since he has the power to cancel the a non-cancelable agreement after he receives the money from the lessee. I am fortunate to have found a much more reliable leasing broker. “One that is very honest and fair. I’ve spoken to several other leasing brokers and they all say this guy scammed me! They all said he should return the first and last lease payments since they weren’t his to begin with and should have been forwarded to the leasing company/underwriter. “This guy is essentially a pimp for leasing companies. Why aren't leasing brokers regulated by some "higher" agency like real estate agents and banks are regulated? “What this guy has done to me is like me taking a customers roll of film, having them pre pay for the order. The film comes out blank and I don't make any prints but they don't get their money back. it cost me pennies, but man, would the customer be really pissed. All along, that customer would be given the idea that when they came back in they'd have what they ordered. But all they get back is blank film.” ---- Leasing News views this as a “civil dispute” due to the signed paper: “There is no right to return the equipment or to a refund.” Coda: Certain states consider “capital leases” a loan. Other states will consider it a “finance lease” due to a marginal purchase option; some, will even define an “operating lease.” When they are classified as a loan, the usury law of the state has a maximum interest. Most of these transactions exceed the interest rate and are subject to not only invalidating the transaction, but also charging damages against the parties involved in the “illegal act.” The Commercial Finance Association has a compendium of commercial law that includes details of commercial usury in each state that is updated at least twice a year by a network of law firms in each state. Irwin uses it extensively and we have not yet found an error. It also provides information on state licenses, guarantees, Tax liens etc. You buy it without being a member and can access it on their website or use a CD Rom. Their website is: www.cfa.com. The telephone number for the Commercial Finance Association is 212/594-3490. http://easycall.net/midi/hangonsloopy.mid Advance Rentals---Accusations (From time-to-time we publish our policy and for new readers, as well as long time readers, please read:
Leasing News does not want to print accusations. We confirm all information given to us before publishing. We verify all information given to us. We want to be "fair and accurate." Our role is industry news. We encourage your communication, but we have an adopted policy from the date of our inception: http://www.leasingnews.org/policy.htm
If you have a complaint or knowledge of inappropriate conduct, behavior, possible illegal activity, the proper venue for this is a written complaint to your leasing association's standards and ethic committee. If the company you are writing about is a member, they may be expelled or censured.
One of the many reasons to belong to an association, is to promote ethics and fairness. Leasing associations have committees composed of professionals in the industry who work for free and consider all written complaints or information about conduct submitted to them. It is your best "protection." Exchange business with the members of your association. If there is a difficulty or a problem, you have a "lifeline" to call. Join an association just for this protection ( there are other reasons, but this is an excellent one ).
We also invite all readers to utilize our "Customer Complaint" Bulletin Board. http://www.leasingnews.org/bulletin_board.htm We will post all verified complaints of fraud, unethical conduct, and this may serve as a warning not to do business with this specific company. The experienced professionals write in all the time, "know who you are dealing with." We hope you don't find out the hard way and our "Customer Complaint" Bulletin Board is one way to be alerted.
We do not want to discourage you from sending us "on" and "off the record," information, but we will not publish accusations. We will report the "inside" news and hope we are of sometimes entertaining, but always--- of educational benefit.
We often act as an “ombudsman,” facilitating a settlement or return of monies. These are not reported as the complaints are “settled.” Please utilize your association standard and ethic committee. Let your association enforce their professional code of ethics and help out their members with the information that you provide them.
editor. ---------------------------------------------------------------------------------------------- Confidence Falls With the Dollar By Paul Blustein Washington Post Staff Writer The dollar fell below the one-euro level yesterday, a fresh sign of the deepening pessimism in U.S. financial markets and the growing disillusionment among investors worldwide over the scandals besetting American companies. The one-to-one "parity" between the dollar and the currency of the 12- nation euro zone – which late yesterday was changing hands at about $1.0055 per euro – marks an important milestone in the sell-off that has sent the greenback tumbling from its once-mighty perch along with U.S. stock prices. The last time the euro was worth $1 was more than two years ago; as recently as March 1, it was worth about 86 cents. The decline in the dollar benefits the U.S. economy in significant ways, especially by making American products cheaper against competing goods made overseas. But although many economists agree that a smooth descent for the greenback is desirable, yesterday's drop, which came amid gut- wrenching turmoil on Wall Street, underscored the risk that foreigners might be panicked into dumping their massive holdings of U.S. stocks and bonds, inflicting serious economic damage in the process. "What happened today, and it's been happening for the last several weeks, is that foreign investors have lost confidence in corporate America, and because they've lost confidence they're buying fewer U.S. assets – stocks, bonds and the currency," said Rebecca Patterson, a currency strategist at J.P. Morgan Chase in New York. "As long as it happens in a controlled way, the weaker dollar will be simulative for the economy, because it helps exporters," Patterson added, but the worrisome scenario, she said, is that foreign investors, fearing a further sharp erosion in the greenback, might unload their U.S. investments on a much more rapid and disorderly scale to avoid suffering losses on their holdings – thereby precipitating a similar move among U.S. investors. "There's a risk you would get a snowball effect," she said. The dollar peaked in February after a long rise that drove its value up about 40 percent against most major currencies. Although it remains well above its 1995 lows, its decline has accelerated in recent weeks. Against the Japanese yen, it has fallen about 13.6 percent in the past 4½ months, trading yesterday at 116.31 yen, down from 116.79 on Friday. Dampening enthusiasm overseas for U.S. investments is easily verifiable from U.S. government figures, which show that foreign investors bought $131 billion of U.S. stocks and bonds in the first four months of the year, compared with $187 billion in the same period a year earlier. And in the weeks since, foreign purchases have slacked off even further, according to internal data generated by J.P. Morgan Chase and other currency market participants. That poses a problem for the U.S. economy because of the trade deficit, which widened to a record $112 billion in the first quarter of 2002 based on the broadest measure. Since Americans buy so much more from abroad than they sell, the economy depends on foreigners' willingness to continue pouring money into the United States – in effect, lending Americans the money to buy imports. The dollar's decline reflects foreigners' increasing reluctance to supply those funds, and it also stems from a growing preference among American investors to move money overseas, even though other big economies including Europe and Japan are expanding less rapidly than the United States. At Principal Capital Income Investors in Des Moines, for example, Gwen Swanger, managing director of international fixed income research, said that since early May a $1 billion fund the firm manages has "overweighed the euro, the yen and the Canadian dollar" – that is, invested in bonds from those areas in amounts out of proportion to the size of their overall markets. "The structural imbalance in the U.S. has been waiting for some time to correct itself," she said, referring to the trade deficit, "and we felt it was about time to start correcting." The prospect of such a correction in the trade deficit is welcome in most quarters of U.S. industry, which has long sought a lower dollar to improve its competitiveness. "It's just anecdotal information, but we're already beginning to see companies saying they're beginning to get order inquiries again from European customers," said Frank Vargo, vice president for international economic affairs at the National Association of Manufacturers. Partly for that reason, policymakers have been largely sanguine about recent developments in currency markets. "The movement that's taken place so far is no particular cause for alarm," said Kenneth Rogoff, the chief economist of the International Monetary Fund, although he acknowledged: "We're looking at it very closely." One of the only governments to show concern is Japan's, because the country is depending on exports to lift its economy out of its slump, and a stronger yen erodes the competitiveness of Japanese goods. Finance Minister Masajuro Shiokawa said over the weekend that a range of 125 yen to 130 yen per dollar would be "a favorable level." But private analysts in the United States warn that dangers loom for the U.S. economy as well. "To the degree that the dollar declines as part of a broader decline in financial markets driven by the desire to sell off everything that's American – stocks, bonds, the dollar – that's not to be applauded," said Alan Blinder, an economics professor at Princeton and a former Federal Reserve vice chairman. The greatest cause for anxiety is that a "snowballing" decline in the dollar hits U.S. markets so hard as to prompt consumers to curb the spending that is propping up the economy. "The worry is that this could spill over into consumption, because if the American consumer pulls in his and her horns, it's going to derail whatever prospects for growth we have," said David Gilmore, an economist at Foreign Exchange Analytics in Essex, Conn. ----------------------------------------------------------------------------------------------------- Please send to a colleague. We are trying to build our readership. We print “inside” news, the truth. No axe to grind. See our classified ads for employment, books to read about leasing, The List, Bulletin Board Complaints, and more.... _________________________________________________________________ Not My E-mail Still Making the Rounds Hey Kit! Looks like you have another virus? Or you were smoking something weird. I received this on Saturday. There did not appear to be any virus attachments. It was in HTML and the source code was very simple. Here are the headers:: Received: from cmsmail05.cms.usa.net [127.0.0.1] by cmsmail05.cms.usa.net via mtad (CM.0402.2.02C) with ESMTP id 917ggNckU0621M05; Sun, 14 Jul 2002 02:10:48 GMT Return-Path: <clb@wekz.net> Received: from ckhnet.com [208.142.106.52] by cmsmail05.cms.usa.net via smtad (ES.0801); Sun, 14 Jul 2002 02:10:46 GMT Received: from Ogpr [12.148.192.25] by ckhnet.com (SMTPD32-7.10) id AD89C9AC0146; Sat, 13 Jul 2002 21:10:17 -0500 From: kitmenkin <kitmenkin@leasingnews.org> To: DDelack@USA.NET Subject: A very nice game MIME-Version: 1.0 Message-Id: <200207132110618.SM00576@Ogpr> Date: Sat, 13 Jul 2002 21:10:46 -0500 Content-type: multipart/mixed; boundary="=_IS_MIME_Boundary" Good Luck!! Doug Delack -----Original Message----- From: kitmenkin [mailto:kitmenkin@leasingnews.org] Sent: Saturday, July 13, 2002 10:11 PM To: DDelack@USA.NET Subject: A very nice game This is a nice game This game is my first work. You're the first player. I expect you would like it. Doug—This is the new type of virus making the rounds, coming from someone else’s address book. They invade and choose a name at random from the address book, so the original recipient has no means to warn others. The HTML may have had a worm hidden in it. Go to www.antivirus.com and get a free virus check. If you run a server, run a check on it too, as one may be sleeping there. Number one: I never send out in html---only text. **** Number two: I don’t send out jokes in Leasing News or anything else but only daily news. Number three: I never send out attachments (unless responding to a specific request) ***I also read only in text, as html e-mail may contain a worm or virus. You were smart to include the header. In fact, you can always look that up before opening any e-mail with an attachment. If the header shows it does not come from the sender, delete it and run a virus check immediately. My header would be: Received: from virusscan [192.168.0.107] by americanleasing.com [192.168.0.5] with SMTP (MDaemon.v3.0.4.R) for <kitmenkin@americanleasing.com>; Mon, 15 Jul 2002 12:18:40 -0700 Received: from 192.168.0.1 by virusscan (InterScan E-Mail VirusWall NT); Mon, 15 Jul 2002 11:43:49 -0700 (Pacific Daylight Time) Received: from 65.209.205.30 (65.209.205.30) by mail15b.boca15-verio.com (RS ver 1.0.63s) with SMTP id 056824 for <kitmenkin@leasingnews.org>; Mon, 15 Jul 2002 14:54:38 -0400 (EDT) Received: from mail pickup service by wave2 with Microsoft SMTPSVC; (American Leasing donates the mail server service to Leasing News and you can see it goes through two anti-virus programs, one separate and one on the mail server, and my workstation has a third---you cannot run them all on the same machine. We also have a Unnix box, which runs on the NT operating system for the mail server, as we have had problems getting it to work properly on the Windows 2000 operating system. Our classified ads run on a separate dedicated server, with a separate and different anti-virus program, as we have been hacked and hit by too many viruses. (Are we paranoid? Yes. And yes, anyone can learn the route of our mail via the header, no secrets given away here. Editor ) ___________________________________________________________________ #### ########################################## #################### e-ClassicSystems Announces Leasing Program for ATM Manager Pro, the World's Leading ATM Business Management System NORWOOD, Mass., -- e-ClassicSystems, Inc. (www.eclassicsystems.com) today announced a leasing program for the world's leading ATM business management system, ATM Manager Pro(R). The program is targeted primarily at small and mid-size ATM deployers. "Every deployer, large and small, needs an integrated business management system to efficiently manage the daily operations and accounting of their network," said Tyson Nargassans, Director of Sales and Marketing of e- ClassicSystems. "With the current economy, we needed to balance the need for our system with our customer's desire to conserve capital for new placements. The leasing program accomplishes these objectives. This program allows even the smallest organization to acquire the system used by the leading ATM deployers." The program includes all future product releases and unlimited telephone and web support. Data conversion, on-site implementation, and training are also available. In addition, the lease can include the annual renewal fees if desired. The term can extend one to five years with the deployer having an option to acquire the rights to the software at the end of the lease term for a $1 buyout. The leasing program will also enable customers to communicate electronically with other companies in the industry such as cash providers, armored carriers, processors, and of course, other ATM Manager Pro users. "We examined a per transaction pricing model but selected the leasing program as our preferred method. We can prove the per transaction fee ultimately penalizes the deployer for future growth or superior locations," said Mr. Nargassans. "The leasing program creates a solid and efficient back- office environment for a fixed investment. This investment will lead to better customer service, improved profitability and most importantly, help every deployer expand their network without the need for additional staff, which is the number one expense for any small business. We are very excited about the program and look forward to working with every deployer." About e-ClassicSystems, Inc. e-ClassicSystems, Inc., based in Norwood, Massachusetts, is a premier provider of software solutions to organizations that deploy or manage ATMs. Its product, ATM Manager Pro(R), is world's leading ATM business management system. Introduced in May 2000, ATM Manager Pro databases are managing the operations of more than 63,000 ATMs worldwide at 59 customer sites. The product suite offers a number of integrated modules to centralize all ATM- related data including assets, configurations, transactions, profitability, cash, service, supplies and more. e-ClassicSystems' mission is to deliver best-of-breed software solutions to help financial institutions and ISOs manage the operations and accounting of their ATM networks. For more information, visit www.eclassicsystems.com or call Tyson Nargassans at 781.551.9123. Contact: Tyson Nargassans e-ClassicSystems, Inc. (781) 551-9123 tnargassans@eclassicsystems.com ############ ############################################# eLessors Networking Association Evolving Beyond Technology John O. Semon comments on the continuing evolution of the eLessors Networking Association (eLNA) Atlanta, GA - (The Lessors Network Newswire) - With the consistent sell out success of the eLessors Networking Association's (eLNA) annual conferences introducing technology for the equipment leasing industry, eLNA's identity has become synonymous with leasing technology; however, today eLNA is much more that a "technology" association. As explained by eLNA chairman, John O. Semon, "eLNA's identity is best defined by one word found in our name, the eLessors Networking Association." Today Semon confirmed several new strategies are being implemented to further strengthen networking benefits for eLNA members. eLNA recently announced it would begin providing complimentary attendee registrations to the CEOs and/or Presidents (or their designees) of the 100 largest leasing companies in the U.S. As Semon puts it, "This was an easy decision. When it comes to networking, we simply want to ensure these senior leasing executives are participating in our Annual Networking Conference." Additionally, eLNA will begin offering CEOs and/or Presidents of the 100 largest leasing companies in the U.S. free annual membership to expose their companies to eLNA's membership. Unlike other industry associations, eLNA has never relied on membership dues for revenue. All dues paying members attending the Annual Networking Conference receive full credit of their membership dues against attendee registration cost thereby making their membership complimentary. According to Semon, "We strongly feel the benefits of networking in today's economic climate has never been more critical to our member's business activities. eLNA has perfected the art of networking hospitality, refined to embrace a standard that today's business executives find particularly appealing." Semon also confirmed eLNA has entered into an promotional agreement with The Lessors Network (www.lessors.com), rated by Yahoo as one of the top ten most visited equipment leasing web sites. Details are currently being finalized that will provide each eLNA member increased exposure to the equipment leasing industry from The Lessors Network web site at no additional cost. About the eLessors Networking Association The eLessors Networking Association (eLNA) provides a forum for the exchange of information, products and services among members representing a national network of industry leaders and smaller pre-IPO companies from the equipment leasing and finance community. The primary benefit to eLNA membership is participation in exclusive, high profile networking events showcasing resources designed to enhance equipment lease origination, administration, funding and distribution networks. Additional information is available from - www.elessors.com. http://www.elessors.com/Events/f2-register.html This Event Limits Attendance To 150 Attendees. Registration Is On A First Come Basis. eLNA Member Attendee Registration - $250 Non-Member Attendee Registration - $750 Registration fees increase in reverse proportion to available space. Monitor 100 - CEO/President Registration - Complimentary Exhibitor Workshop Closed/Sold Out! Designed for the commercial promotion of your company, products and services to conference attendees. Executive Briefings Closed/Sold Out! Guest speakers invited by eLNA to deliver topical and informative presentations (without commercial promotion) to conference attendees. Exhibitor/Advertiser Closed/Sold Out! This showcases feature table top exhibits at two evening Networking Receptions and a conference program ad, providing intimate introduction of your company representative(s) to conference attendees and distribution of promotional materials. Networking Reception Table Top Exhibitor showcases feature table top exhibits at the evening Networking Receptions (two) provide intimate introduction of your company representative(s) to conference attendees and distribution of promotional materials. Conference Program Advertising Closed/Sold Out! Advertising in the conference program provides exposure for your company, products and services. All ads are full page color or black and white. Sponsorship showcases are outstanding promotional opportunities for your company. You benefit increased exposure and awareness about your company, products and services. ################# ############################################# Take Me Out To The Ball Game . . .July 24th, Anaheim, CA Join In On the Fun by Attending the First Annual UAEL Orange County Anaheim Angels Night! Anaheim Angels vs. Oakland A's When: Wednesday July 24, 2002
Where: Edison International Field, Anaheim, CA
Time: Let's meet at 5:30 PM under the "Big A" for a Potluck Tailgate Party before game time. Game Time at 7:05 PM.
Cost: $7.00 per person if you reserve your ticket by July 15th $10.00 per person if you reserve your ticket after July 15th Please reserve your ticket today by downloading the flyerhttp://www.uael.org/events/regional/pacific_events/ballgame_flyer.doc or completing the bottom portion of the form and mailing it to Southern California Leasing at the address provided. http://www.uael.org/events/regional/pacific_events/ballgame_flyer.doc To download the flyer: Place your cursor on the flyer link below Right-click your mouse Choose "Save Target As..." from the list of options Choose a location to place your file Click the "Save" button UAEL Orange County Anaheim Angels Night Flyer Please contact Barbara Griffith at 714-573-9804 or Gina Iacono at 714-834-0127 with any questions. ############ #################################### ################ First Niagara Financial Group, Inc. Reports 2nd Quarter Earnings First Niagara Financial Group, Inc. (Nasdaq: FNFG), announced that net income for the quarter ended June 30, 2002 increased 40% to $7.0 million, or $0.28 per share from $5.0 million, or $0.20 per share for the same period of 2001. Effective January 1, 2002, the Company was required to adopt a new accounting standard which no longer permits goodwill amortization. Adjusting prior period results to exclude the effects of goodwill amortization, similar to the 2002 second quarter, net income for the current quarter increased $0.8 million or 13% from the second quarter of 2001. During the second quarter of 2002, the Company was required to record a $1.8 million tax charge related to the recapture of excess bad debt reserves for New York State tax purposes, triggered by the Company's recent decision to combine its three banking subsidiaries. Additionally, during the current quarter, the Company realized a $0.9 million gain from the curtailment of its defined benefit pension plan and severance costs of $0.4 million related to the consolidation of its three banking subsidiaries. "I am pleased that we were able to attain strong double digit growth in the current quarter despite the additional tax charge incurred," stated Chairman, President and CEO, William E. Swan. "We continue to demonstrate the benefits of being a diverse financial services company, as evidenced by our growth in noninterest income for the quarter. Additionally, we benefited from the low interest rate environment, our significant commercial loan growth and effective cost control. We anticipate these trends will continue as we take steps to leverage the First Niagara brand and gain operational efficiencies and flexibility through the consolidation of our three banks and conversion to an OTS charter." Net interest income increased 19% to $22.7 million for the second quarter of 2002 from $19.1 million for the same period in 2001. During the quarter, the Company continued to benefit from the lower interest rate environment, which reduced its cost of funds. Additionally, the Company's ongoing focus on higher yielding commercial loan originations resulted in commercial real-estate and business loans ("commercial loans") increasing $84.0 million, or 14% from the end of 2001 and is on pace to meet its 20% growth target for 2002. As a result, the net interest rate spread improved 34 basis points to 3.25% for the quarter ended June 30, 2002 compared to 2.91% for the second quarter of 2001. Total loans outstanding at June 30, 2002 increased to $1.93 billion as compared to $1.87 billion at December 31, 2001, as commercial loan growth was partially offset by the Company's strategic initiative to hold less fixed rate residential mortgages. Deposits increased 8% to $2.15 billion at June 30, 2002 from $1.99 billion at December 31, 2001. This increase resulted from the Company's focus on increasing its customer base, which included the opening of its 38th banking center and the introduction of a money market savings account in the first quarter of 2002, as well as, a general deposit inflow being experienced by most banks. For the quarter ended June 30, 2002, average noninterest-bearing deposits increased 28% to $111.7 million from $87.5 million for the same period in 2001, primarily due to an increase in commercial business. As a result of this and the increase in net interest rate spread discussed above, the net interest margin improved to 3.47% for the second quarter of 2002, from 3.17% for the same period in 2001. For the quarter ended June 30, 2002, the Company had $12.6 million in noninterest income, an increase of 23% over the $10.3 million for the same period in 2001. This increase primarily resulted from internal growth, which included the addition of new banking services in the fourth quarter of 2001, as well as the Company's continued emphasis on its mutual fund, annuity and insurance businesses. Additionally, during the second quarter of 2002, the Company's insurance agency subsidiary realized $0.4 million from the receipt of 2001 contingent profit sharing, as loss ratios were better than originally projected. These increases were partially offset by a decrease in covered call option premium income caused by the Company's decision to eliminate this program in 2002. Noninterest expense for the three months ended June 30, 2002 was $20.4 million as compared to $20.5 million for the comparable period of 2001. Adjusting the second quarter of 2001 amounts for the change in accounting for goodwill, noninterest expense for the current 2002 quarter increased $1.0 million, primarily due to a $0.9 million increase in salaries and benefits. This increase in salaries and benefits was a result of internal growth and $0.4 million of severance costs incurred in the second quarter of 2002, partially offset by the previously mentioned $0.9 million pension plan curtailment gain. The Company's efficiency ratio improved to 57.9% for the quarter ended June 30, 2002 from 65.4% for the same quarter in 2001, adjusted for the new accounting for goodwill. Excluding the severance costs and pension plan curtailment gain, this ratio was 59.3% as the Company's continued focus on efficiency through its Adding Value Always ("AVA") initiative has helped revenue to increase faster than noninterest expense. Outlook "Based upon the results of our first two quarters and the anticipated gain from the previously announced sale of our Lacona Banking Center, we are comfortable with the current analysts' consensus estimate of $1.21 per diluted common share for 2002," stated Mr. Swan. "We anticipate that our net interest rate spread and margin should remain at or near current levels and expect our commercial loan growth will continue for the remainder of 2002. We are currently implementing our (de novo) expansion strategy, which includes the |