January 24, 2001

 

 Headlines---

      Mellon Leasing for Sale?

       Correction: Saddleback Does Not Accept Broker Business

         Equifax/UAEL Announcement "Now Official"

      Penske Truck Leasing Commences Tender Offer

        Heller Puts "Spin" on Being Downgraded to "Stable" by Fitch

        also adds," (the economy) faces a credit crunch that could impair

             smaller lessors' ability to compete effectively,"   

        Merill-Lynch Says "Rocky Road" and It Tastes Like Ice Cream for Bond Buyers

     Progress Finance Declares Divident ( yes, there are a number of leasing

        companies doing very well today.editor )

          New Wireless Management to Revolutionize Biz

 

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     Correction: Saddleback Does Not Accept Broker Business

 

Kit,

 

Please revise your comment/summary for Saddleback Financial Corporation.

 

"Saddleback Financial ( 1/2001 Prez. Warren Emard in business, looking for new business from brokers."

 

Saddleback is still in business, but we have never actively sought out Broker business.  We are

still originating business through vendors and directly to lessees.  Please delete the comment

about broker business as we do not accept broker business.  It is our understanding that broker

business should be referred to BSB.

 

Thanks.

 

**********************************************

Rich Balkcum

Saddleback Financial Corporation

625 The City Drive, Suite 140

Orange, CA 92868

tel. 714-938-9500 x309 * fax 714-938-9510

**********************************************

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   Mellon Leasing for Sale?

 

" Mellon US Leasing was told last Tuesday that the division is for sale. They were told it would not be sold to a competitor, which leads him to believe there may be an overseas suitor. He said Mellon booked about $1 billion in leases last year. Apparently the sales staff was given

retention bonuses, and most of them have a lot in the pipeline, so they plan to stay. My friend

actually thinks it will be positive since Mellon tightened up the credit standards quite

substantially after purchasing US Leasing."

 

  Name With Held

 

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

 

  LeaseExchange.com

 

It is our goal to be accurate and fair, report the news, and in our experience

from Metrolease to UniCapital and others we hear things first as "rumors."  We

understand from two reliable sources that LeaseExchange is "automated" and

up and running, but they have very limited funds. Many people have

been let go.

 

We hear other eLease companies who received "investment money" are running on "low" as

the internet is not bringing them enough money even to make overhead.

Some have cut back, cutting the overhead, but very few of them have

entered the "black." These companies are basically "automated" super brokers,

or "aggregate funders," as they like to call themselves.  Several other names have been reported to us, and I have confirmed with principals as a reporter, but on a confidential

basis.  Many of the actual funding sources are more aware about the "volume" and it

appears that without additional venture capital, many of the eLease companies will not been

around in three to six months, except perhaps in an "on line" basis only.  Something

like "auto pilot."

 

         editor

 

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      Reaction to:    Association Membership Dues Comparison

               

                         http://www.leasingnews.org/links_section.htm

 

Great job, Kit! I really don't know why you are in the leasing business as

your heart and talents are obviously in journalism. I saved your report and

even printed it on real paper to put in a binder (computers don't always

work; paper does). Thanks for providing the leasing business with this

remarkably valuable service.

 

Bob T.

BoTei@aol.com

( Bob Teichman, Teichman Financial Training )

 

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   Barney Miller----

 

Kit.....Abe Vigoda is alive and well and living in NYC. Before I left

Copelco/CitiCapital in Sept.'00, I had the pleasure of standing on a grocery

line with Mr.Vigoda. He has aged quite a bit, but what a class act. He was

in from NYC visiting his grandchildren, who were in a local school play that

evening. Your e-mail blurp just sparked that memory.

Regards,

Shawn McGill,VenServ

smcgill@venserv.com

 

P.S. Citicorp purchased Copelco Capital in 5/00!

 

  ( She was referring to the Detective Fish in "Barney Miller," the tv show

    anniversary premiere was yesterday. The announcement was 4/00,

    but McGill is correct, and we will correct the Citicorp date. Thank you.

    We are still looking for accurate dates for the following:

              merican Business Leasing ( gone )

  The Bancorp Group, Inc. (Southfield, MI) (Not accepting news business. The  

      BOD of the parent bank is assessing what to do with the leasing

      subsidiary.....currently servicing portfolio but not originating. no longer in

          business )

 Bankvest (bankrupt) .

 Imperial Credit Industries (ICII) ( sold portfolio )

 Leasing Solutions , San Jose( bankrupt )

 Merit Leasing ( gone )

 Prime Leasing, Minnesota ( no longer doing business )

 Rockford ( sold to American Express )

 USA Capital Leasing ( gone-bk )

 

The List can be viewed "on line" at: http://www.leasingnews.org/list.htm

( as reported last week and we posted, but they asked us to remove for

    the formal announcement today. )

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Equifax Launches Small Business Financial Exchange to SupportLending to Small Businesses

 

   ( we reported on this last week, then they asked us to remove from our

     site, and we accomodated them.  Here is the official announcement today.

     editor )

 

Top US Lenders to Participate in Commercial Exchange 

 

United Association of Equipment Leasing to Support

 

ATLANTA, Jan. 24 /PRNewswire/ -- Equifax Inc. (NYSE: EFX) today announced a revolutionary new

service capability -- a member-owned data exchange to assist financial institutions in making

credit decisions about small businesses.  Managed by Equifax to meet the needs of top U.S. banks and lenders, the Small Business Financial Exchange will enable member financial institutions to report and maintain comprehensive trade data on small businesses.

 

"The Small Business Financial Exchange fills a critical gap in the lending community," said Tom

Chapman, chairman and chief executive officer of Equifax Inc.  "It's the first and only source

for lenders to see the total aggregated loan exposure and performance of small business owners.  Equifax's comprehensive expertise as the trusted steward of information makes the Exchange possible."  The Exchange will provide data on loans, credit card exposure and leasing history, with the ability to integrate consumer data to provide a total picture of a small business

owner's risk and exposure.

 

The Small Business Financial Exchange, which will be available in the second quarter of 2001, is Equifax's second commercial credit exchange and reflects the company's experience gained with fourteen domestic and over thirty worldwide exchanges.

 

Fifteen of the 20 largest U.S. small business lenders currently are members.  They include:

Advanta Corporation (Nasdaq: ADVNB ADVNA), AmSouth Bancorporation (NYSE: ASO), Bank of America Corporation (NYSE: BAC), Bank One Corporation (NYSE: ONE), BB&T Corporation (NYSE: BBT), Capital One Financial Corporation (NYSE: COF), SunTrust Banks, Inc. (NYSE: STI), United Association of Equipment Leasing (UAEL), Wachovia Corporation (NYSE: WB) and Wells Fargo & Company (NYSE: WFC).

"The Small Business Financial Exchange will profoundly impact the ability of financial

institutions to support the small business community, now estimated at 25 million by the Small

Business Administration," said Bill Catucci, executive vice president, Equifax Information

Services.

 

A recent survey conducted by the National Small Business United organization and Arthur Andersen found that 24 percent of small and mid-sized businesses are unable to obtain adequate financing.  The lack of information available to lenders can contribute to the number of small businesses that do not qualify for loans.  Addressing this deficiency, the Exchange will assist members in managing acquisition risk, preventing fraud, managing portfolios and locating "skipped" accounts.

 

"By creating a quality credit repository, the Small Business Financial Exchange will greatly

enhance our lending capability to the small business market," said John Donohoe, consumer credit risk management executive, Bank of America.  "It will help us to make loans faster and improve the quality and efficiency of the credit decisions process which equates to better service for our customers."

 

"The Small Business Financial Exchange initiative is critical to the continued success of small

business lenders, regardless of portfolio size," said Marc L. Bernstein, executive

vice-president and Business Direct division manager at Wells Fargo Bank.  "I can think of

nothing more important in "decisioning" a small business's credit than knowing what other bank

loans that business already has and how they have managed them.  Equifax is addressing what has

been up until now a disturbing blind spot in our business."

 

"The concept of a member-owned and managed data exchange is extremely appealing considering the current evolution in reporting business performance data," said Steve Bauer, vice president and national risk manager for Business and Community Banking at Bank One.  "This exchange has the potential to change the entire informational landscape for extending business credit.  The framework is set to attract vast amounts of predictive and meaningful data."

 

"The UAEL, which represents more than 500 equipment lessors, brokers and funding sources

throughout North America, is pleased to represent the equipment leasing industry," said Bob

Rodi, president of the United Association of Equipment Leasing.  He added, "We are certain that

our members can make a valuable contribution that will lead to better portfolio management,

thereby improving the availability of equipment leases and loans to our customer base."

 

About Equifax Inc.

 

Equifax (www.equifax.com ), a worldwide leader in enabling and securing global commerce, brings buyers and sellers together through its information management, transaction processing, direct marketing, and customer relationship management businesses.  Atlanta-based Equifax serves the financial services, retail, credit card, telecommunications/utilities, transportation,

information technology and health care industries and government.  Equifax offers knowledge,

expertise, convenience and security to provide value-added solutions and processes for its

customers wherever they do business, including the Internet and other networks.  Equifax employs about 13,000 associates in 17 countries with sales in almost 50 and has $1.9 billion in revenue.

Statements in this press release that relate to Equifax's future plans, objectives,

expectations, performance, events and the like are "forward- looking statements" within the

meaning of the Private Securities Litigation Reform Act of 1995 and the Securities Exchange Act of 1934.  Future events, risks and uncertainties, individually or in the aggregate, could cause

actual results to differ materially from those expressed or implied in these statements.  Those

factors could include changes in worldwide and U.S. economic conditions that materially impact

consumer spending and consumer debt, changes in demand for the Company's products and services, risks associated with the integration of acquisitions and other investments, and other factors discussed in the "Forward-looking Information" section in the management's discussion and analysis included at Part II, Item 7 in the Company's annual report on Form 10-K for the year ended December 31, 1999, and 10-Q for the period ending September 30, 2000.

 

CONTACT:  Dave Mooney of Equifax Inc., 404-885-8117, or  

 

dave.mooneyl@equifax.com , or Caroline Campbell of Ketchum,  

 

404-879-9277, or caroline.campbell@ketchum.com , for Equifax  

 

Inc.

 

SOURCE  Equifax Inc.

 

CO:  Equifax Inc.; Advanta Corporation; AmSouth Bancorporation; Bank of      America

Corporation; Bank One Corporation; BB&T Corporation; Capital One      Financial Corporation;

SunTrust Banks, Inc.; United Association of      Equipment Leasing; Wachovia Corporation; Wells Fargo & Company

 

ST:  Georgia, Alabama, North Carolina, Pennsylvania, Virginia, Illinois,      California

 

IN:  FIN CPR MLM

 

SU:  PDT JVN

 

01/24/2001 08:30 EST http://www.prnewswire.com

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   Progress Financial Corporation Declares Cash Dividend

 

BLUE BELL, Pa., Jan. 24 /PRNewswire/ -- The Board of Directors of Progress Financial Corporation

(Nasdaq: PFNC) (the "Company") has declared its regular quarterly cash dividend on its common

stock, according to W. Kirk Wycoff, Chairman, President and Chief Executive Officer.  The cash dividend of $.06 per share will be paid on February 16, 2001 to shareholders of record on

January 31, 2001.

 

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 sixteen full service offices.  The Company also offers a diversified array of financial services including equipment leasing through Progress Leasing Company, with offices in Blue Bell, Pennsylvania, and financial planning services and investments through Progress Financial Resources, Inc., headquartered in Philadelphia, Pennsylvania; and asset based lending through Progress Business Credit.  In addition, the Company also conducts commercial mortgage banking and brokerage services through Progress Realty Advisors, Inc. with locations in Blue Bell, Pennsylvania; Richmond and Chesapeake, Virginia; Woodbridge, New Jersey; and Raleigh, North Carolina.
The Company also receives fees for the construction and
development of assisted living communities through Progress Development

Corporation; venture capital activities managed by Progress Capital Management, Inc.; and

financial and operational management consulting services for commercial clients through KMR

Management, Inc. located in Willow Grove, Pennsylvania.  The Company's common stock is traded on the Nasdaq Stock Market, National Market under the Symbol "PFNC".

 

SOURCE  Progress Financial Corporation  

 

CO:  Progress Financial Corporation

 

  ( full report at end of Leasing News )

 

 

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  CarBiz.com to exchange equity for assets of Automotive FinanceCorporation the financing arm of

     ALLETE's automotive services division

 

 

TORONTO, Jan. 24 /PRNewswire/ - CarBiz.com Inc. (CDNX: CZ), a leading provider of Internet and software solutions to the North American automotive industry, today announced that it has signed a Letter of Intent with US-based Automotive Finance Corporation (AFC) - a division of ALLETE

Corporation (NYSE: ALE) - to exchange a portion of its equity for AFC's Micro 21 assets, in an all stock deal valued at US$1.8 million, subject to regulatory and Exchange approval.

 

The purchase price will be paid by the issuance of 2,500,000 Series A Units and 2,898,214 Series B Units of CarBiz, each at an ascribed price of $0.504 per Unit. Each Series A Unit consists of one common share of CarBiz and one purchase warrant exercisable into one common share of CarBiz

for a period of 12 months from closing date at a purchase price of $2.25 (CDN). Each Series B Unit consists of one common share of CarBiz and one purchase warrant exercisable into one common share of CarBiz for a period of 24 months from closing date at a purchase price of $2.40 (CDN).

 

Additionally, as a part of the letter of intent, at the next annual general meeting of CarBiz,

shareholders will be asked to approve the issuance of 4,601,786 purchase warrants to ALLETE

exercisable into one common share of CarBiz for a period of 24 months from closing date at a

purchase price of $2.40 (CDN), subject to regulatory and Exchange approval.

 

Also, a small group of shareholders who, as a collective group, hold approximately 8.55 million

CarBiz shares, will grant ALLETE a right of first refusal, for a period of 36 months from the

closing date, to acquire additional shares.

 

Micro 21 provides AFC with a portfolio of dealer services to its 15,000 dealer-client base,

including a Finance and Insurance (F&I) software solution designed to improve dealers'

efficiency in the areas of vehicle financing. As a result of this investment, CarBiz will be a

primary provider of technology products to AFC.

 

AFC is the largest independent dealer floor plan financing company in North America, and is a

wholly-owned subsidiary of ALLETE: a multi-services company based in Duluth, MN. Over the past five years AFC's market presence has expanded significantly to over $400 million in auto floor plan receivables.

 

"We are looking forward to a mutually beneficial relationship with CarBiz.com," said John

Fuller, CEO and President of AFC. "Many of our dealer clients currently require technology

solutions and products that we do not offer; by selling Micro 21 to CarBiz.com we will now be

able to offer our 15,000 dealers comprehensive solutions that are cost effective and easily

integrated."

 

"This transaction represents a tremendous opportunity for CarBiz.com to introduce itself to a

huge network of automobile dealers, and will enable us to bundle our solutions and products with AFC's solutions," said Carl Ritter, CEO of CarBiz.com. "Our technology and training products have excellent synergies with AFC, allowing us to aggressively grow our business with their 15,000 dealers."

 

ABOUT CARBIZ.COM 

 

Carbiz.com provides Internet and software solutions for the automotive industry. Its technology

solutions offer a suite of dealer front-end management tools, and a complete e-commerce platform designed to connect financial institutions, credit bureaus, automobile dealers and consumers online. Carbiz.com's solutions allow consumers and dealers to establish a relationship via the Internet and other means, allowing consumers to search for dealers and vehicles, apply for vehicle financing and leasing, and provides them with a variety of financing options.

Carbiz.com's technology solutions increase automobile dealers efficiency, improve their

relationships with customers, expand their customer base by generating sales leads, and provides them with the tools needed to design, develop, and maintain their own web site. Carbiz.com's

solutions are currently in use by over 6,000 North American automobile dealers.

 

Forward-Looking Statements  

 

Investors should take note that certain statements in this press release are forward-looking and may not give full weight to all of the potential risks and uncertainties. These forward-looking

statements include statements that are subject to risks and uncertainties (e.g., the risk that

the transaction may not close). Forward-looking statements are subject by their nature to risks

and uncertainties, and actual results, actions or events could differ materially from those set

forth in the forward-looking statements. Any forward- looking statements speak only as of the

date made. The Company is not undertaking to update any information in the foregoing reports

until the effective date of its future reports required by the securities laws.

 

The Canadian Venture Exchange has not reviewed and does not accept responsibility for the

adequacy or accuracy of this release.

 

SOURCE Carbiz.com, Inc.

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eCredit.com Names Christopher Richmond as New Chief Executive Officer

 

 

DEDHAM, Mass.--(BUSINESS WIRE)--Jan. 24, 2001--

 

Former GE Capital Executive to Lead eCredit.com in Next Phase of

 

Growth  eCredit.com today named Christopher H. Richmond as chief executive officer and a member of the

company's board of directors. Company founder Venkat Srinivasan will continue as chairman,

driving eCredit.com business and technology vision.

 

Richmond was formerly president and CEO of the Commercial Equipment Financing (CEF) business of General Electric (GE) Capital Corp. CEF is GE's eighth largest business and recently ended a record year in sales revenue, growing to $22 billion. Under Richmond's direction, CEF met or exceeded its revenue projections for more than 20 consecutive quarters.

 

"Bringing in Chris as CEO will help us secure the company's position as market leader in

providing credit and underwriting solutions that drive financial liquidity in commerce," said

Srinivasan. "Chris joins us from a company that is one of the world's best senior executive

training grounds and brings the industry stature and collaborative management style that will

help eCredit.com build long-lasting market leadership."

 

According to Richmond, "eCredit.com has a very attractive value proposition - providing

financial tools that help companies make money, which is critical in today's economic climate.

It also has a sustainable business model that targets multiple, related markets where

eCredit.com has demonstrated domain expertise and a strong customer track record. The company is at the beginning of what should be an exciting, high-growth market opportunity."

 

Richmond joined GE Capital in 1991 and was promoted to president of GE Capital, Commercial

Equipment Financing in 1994. Under his leadership, CEF had a portfolio of $42 billion and

businesses in 11 countries in North America, Europe, Asia and Australia. CEF provides facilities and equipment financing to middle market companies. Prior to joining GE, Richmond was president and chief operating officer at the engineering and electronics consulting firm, Syska and Hennessey in New York. He also has 20 years experience in the public sector.

 

"Horizontal services, such as finance, are the enablers of e-commerce, and eCredit.com is

uniquely positioned to capitalize on the enormous opportunity created by helping its customers

harness the power of the Internet to transform their businesses," said Ken Fox, co-founder and

managing director at Internet Capital Group (NASDAQ: ICGE) and eCredit.com board member. "Chris Richmond's decision to lead eCredit.com is a strong validation of the company's fundamentals as a strong business. We believe he will bring the world-renowned management practices and operational discipline of GE to the dynamic, fast-growth environment of eCredit.com, helping drive revenue, profitability and long-term value."

 

About eCredit.com

 

eCredit.com enables Fortune 1000 companies, financial services organizations and e-businesses to transform business processes throughout the financing supply chain to strengthen customer

relationships, increase customer purchasing power, and grow the bottom line. eCredit.com

solutions automate credit and underwriting to better manage risk and deliver a portfolio of

financing options at the point-of-sale. Included among the Company's customers and partners are CIT, Eastman Chemical, GMAC, Fleet Leasing, Gateway and Ryder System, Inc. eCredit.com, headquartered in Dedham, Mass., is a member of the Internet Capital Group partner company network. For additional information, visit eCredit.com on the Web at www.ecredit.com.

 

CONTACT: 

 

Roopa Bhide

 

eCredit.com

 

(781) 752-1275

 

roopa@ecredit.com

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 Heller Puts "Spin" on Being Downgraded to "Stable" by Fitch

 

 

They also state in the press release:

 

"Along with the forecast for strong growth, McGrane cautioned that the leasing industry in

general faces a credit crunch that could impair smaller lessors' ability to compete effectively, in that they are unable to borrow at competitive spreads.  'The flip side to growth in the

equipment leasing industry is the need for greater amounts of capital to foster and sustain that growth,' he said. '"But because the money markets have tightened and securitizations are not

being as well received in the capital markets, small leasing companies will have trouble

securing the funding they need to compete.'

 

  (remember most of the business news is from press releases written by 

   professionals who want to make everything to their advantage, change

   poor to great, make everything "hunky-dory."  You need to read the

   entire press release, not just the first paragraph or two to get the

   full picture ( as noted above ). editor )

 

   ( their press release )

 

  2001 Forecast

 

    :Equipment Leasing Industry Poised for Strong Performance AmidCooling Economy, Reports      

 

 

         Heller Financial

 

  ( They are saying," If you have cash, now is the time to ask for a lease or a loan." )

Heller Financial, Inc. (NYSE: HF) predicts that the equipment leasing industry is on track for a solid performance in 2001, experiencing rising revenues even as the domestic economy continues to slow.

 

Jim McGrane, Group President, Heller Global Vendor Finance, said equipment leasing is well

positioned to take advantage of a cooler economic climate. "With GDP growth expected to decline in 2001, companies will be especially conscious of preserving cash, which makes leasing a very attractive option relative to purchasing," he said.  "We already are seeing signs that more companies are electing to lease critical equipment rather than finance equipment purchases."

 

McGrane also sees an opportunity for many equipment lessors to take advantage of recent

developments in online technology to significantly streamline lease transaction processing,

provide a higher level of service and further enhance revenues.  Such technology is expected to

particularly benefit those that specialize in lease transactions valued up to $100,000 and often feature standardized items.

 

"We believe 2001 will be the 'year of execution' as many in the industry begin to reap the

benefits of technological advances, especially those of us in small-ticket leasing," said

McGrane.  "The dramatic efficiency gains online technology offers will make leasing more

profitable for lessors and more attractive to end-users."  McGrane added that since the average

small-ticket lease is approximately one-tenth the size of a lease in the middle-market segment,

technology is vital for achieving the economies of scale that help compensate for the lower

per-transaction revenues of smaller leases.

 

According to McGrane, the industry now faces the challenge of deploying this specialized online technology in the leasing marketplace.  "With outstanding new tools being developed specifically for small-ticket equipment leasing applications, the focus shifts to implementation," he said. 

"The key issue for lessors will be convincing the market to adopt the new technology on a broad

scale."  McGrane acknowledged that technology has already provided significant gains in

processing efficiency, one of the leasing industry's chief concerns.  He cited the Equipment

Leasing and Finance Foundation's "State of the Industry Report 2000," which described

technological advances as triggering a 7.5 percent decrease in average application turnaround

time for small- and micro-ticket leasing.

 

Along with the forecast for strong growth, McGrane cautioned that the leasing industry in

general faces a credit crunch that could impair smaller lessors' ability to compete effectively, in that they are unable to borrow at competitive spreads.  "The flip side to growth in the

equipment leasing industry is the need for greater amounts of capital to foster and sustain that growth," he said.  "But because the money markets have tightened and securitizations are not

being as well received in the capital markets, small leasing companies will have trouble

securing the funding they need to compete."

 

McGrane said he expects more consolidation within the industry, with larger, investment-grade

lessors possibly acquiring smaller competitors, facilitated by larger lessors' ready access to

funds through the capital markets.

 

Heller Global Vendor Finance, part of the company's Leasing Services business unit, structures,

markets and services global and domestic leasing programs for equipment manufacturers,

distributors and dealers.  It offers the expertise necessary to service both high-volume,

small-ticket transactions, and larger, more customized enterprise structures.

 

According to Heller, equipment-leasing industry highlights for 2001 are likely to include: 

 

-- Technology paving the path to increased business and profitability.

 For lessors and vendors alike, online technology is positioned to  

 change the landscape for the majority of equipment leasing  

 transactions under $100,000.  With processing that previously required  

 hours or days now capable of being completed in a matter of minutes,  

 the leasing option will have greater appeal for end-users while  

 enhancing lessors' operating margins.  "An increasingly larger  

 percentage of standardized, flow-oriented, small-ticket transactions  

 will be facilitated online as new technology is implemented," McGrane  

 observed.  "Still, there will always be a need for human expertise in  

 handling larger transactions that require customized structures."

 

 McGrane added that Heller would continue to serve both segments.  "Our  

 technological capacity and service capabilities allow us to meet the  

 needs of customers at either end of this dynamic spectrum," he said.

 

-- Addressing the talent shortfall in the industry.  "As today's leasing  

 industry advances, it requires a rare combination of both business and  

 technological skills," McGrane said.  "And, because equipment leasing  

 is a relatively small industry that consolidation is making even  

 smaller, it's easier for a competitor to identify and raid your star  

 performers.  With talent at a premium, it's critical to develop  

 strategies to reduce turnover."  The equipment leasing industry now  

 faces the challenge of blending the skills of veteran professionals  

 who have broad industry knowledge and proven sales ability with the  

 technology savvy of newer employees, he added.

 

-- Pursuit of new international opportunities.  "All of the elements are  

 in place for leasing to take hold in parts of the world where it has  

 thus far been an under utilized financing option, particularly the Asia  

 

Pacific region," said McGrane.  "In countries like Japan, Korea and  

China, the fast-paced business climate fosters the potential for  

tremendous expansion in our industry."  McGrane added that many  

businesses see leasing as particularly advantageous during their  

rapid-growth stages, when financing a purchase may be prohibitively  

costly for a developing company.  McGrane also sees possibilities for  

accelerated growth in Latin America, though he cautioned that the  

region's inflationary economies and political instability are  

potential obstacles.

 

Heller Financial, Inc., is a worldwide commercial finance company providing a broad range of

sophisticated, collateralized financing solutions. With $20 billion in total assets, Heller

offers equipment financing and leasing, sales finance programs, collateral- and cash flow-based

financing, financing for health care companies and financing for commercial real estate. The

Company also offers trade finance, factoring, asset-based lending, leasing and vendor finance

products and programs to clients in Europe, Asia, and Latin America.  Heller's common stock is

listed as "HF" on the New York and Chicago Stock Exchanges.  Heller can be found on the World

Wide Web at http://www.hellerfinancial.com .

 

The statements made by the Company in this news release may include certain forward-looking

statements that reflect the Company's current expectations regarding its future growth, results

and performance. These forward-looking statements are subject to a variety of risks and

uncertainties, which could cause the Company's future growth, results and performance to differ

materially from those expressed in, or implied by, these statements.  Information concerning

these risks and uncertainties is contained in the quarterly and annual reports that the Company

files with the Securities and Exchange Commission.

 

SOURCE  Heller Financial, Inc.

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

 

 

    Rocky Road Except for " High-yield Investment Grade Corporate Bonds"

 

  ( their press release )

 

 Merrill Lynch Fixed Income Analysts, Strategists Forecast Superior Returns in 2001

 

 

 

    Merrill Lynch (NYSE: MER) analysts and strategists today said that high-yield and select

investment grade corporate bonds should provide superior returns in 2001, compared to last year.

    Improving liquidity, narrower swap spreads and positive returns should be the highlights of

2001, said Thomas Sowanick, Merrill Lynch chief global fixed income strategist. Financial

markets should benefit from the additional funds freed up by the ongoing retirement of

government debt, he said. Swap spreads could continue to narrow, but it is unlikely that the old lows will be tested.

    "We find the most compelling values in government markets and in the high-yield sectors,"

Mr. Sowanick said.

    In the US, investors should use treasuries to satisfy their needs for long duration assets

and focus exposure to spread products on the shorter end of the curve, said Kenneth Hackel,

Merrill Lynch chief US fixed income strategist.

  "The recent decline in mortgage rates has triggered the early stages of a prepayment wave in

mortgage backed securities," Mr. Hackel said. "With the overall mortgage market now trading

above par, we believe that investors should be very cautious in their allocations to this

sector," he added.

    The combination of weaker economic growth and reduced government funding needs should lead to another year of solid returns for the global fixed income markets, said Karim Basta, global fixed income strategist.

    "Global fixed-income investor exposure to the Euro remains extremely high," Mr. Basta said.

"This suggests limited downside for the US dollar and reinforcing our overweight US dollar

allocation in our recommended global bond portfolio."

   Action on US interest rates by the US Federal Open Market Committee could be felt worldwide.

Even though the market is pricing to at least 100 basis points easing this year, Merrill Lynch

maintains a bias for a steeper yield curve for the first half of 2001, said Gerald Lucas,

Merrill Lynch senior government strategist.

    "The Republicans may be more sympathetic toward maintaining a minimum amount of marketable

debt," Mr. Lucas said.

    Meanwhile, the supply of municipal bonds won't keep up with demand, said Philip Fischer,

Merrill Lynch municipal bond strategist. Merrill Lynch expects issuance of municipal bonds to be flat to slightly up from last year, he said.

    "Investors should not be overly concerned about the Bush tax bill," Mr. Fischer added. "The

Congress will go after the most readily available options such as the marriage penalty, not

marginal tax rates. This suggests that the demand for municipals will continue."

    Given uncertainty about both credit fundamentals and the economic backdrop, Merrill Lynch

recommends that investors avoid having a long-term view about the year ahead, said Mary Rooney, head of Merrill Lynch's derivatives and credit strategy.

    "Given our expectation of a continuation of high spread volatility, shorter-term tactical

trades should outperform longer-term fundamentally-oriented strategies," Ms. Rooney said.

    Merrill Lynch has more than 900 analysts in 26 countries and is highly ranked for the

quality of its research. Institutional Investor (II) magazine has rated Merrill Lynch the number one firm for equity research in Asia, Europe, Latin America and the United States. Merrill Lynch also won II's latest Global Fixed Income survey. The firm was voted number one by The Wall Street Journal in its 2000 All-Star Analyst Survey for the fourth year in a row. It has also won research polls conducted by Primark Extel, Finance Asia, Latin Finance, Reuters, and Emerging Markets Investor among others.

    Merrill Lynch is one of the world's leading financial management and advisory companies with

 

 

offices in 44 countries and total client assets of about $1.7 trillion. As an investment bank,

it is the top global underwriter and market maker of debt and equity securities and a leading

strategic advisor to corporations, governments, institutions, and individuals worldwide. Through

 

 

Merrill Lynch Investment Managers, the company is one of the world's largest managers of

financial assets. For more information on Merrill Lynch, go to www.ml.com.

 

 

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

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

 Penske Truck Leasing Commences Tender Offer for All Outstanding Shares OfRollins Truck Leasing 

 

 Corp.

 

 

READING, Pa., Jan. 24 /PRNewswire/ -- Penske Truck Leasing Co., L.P., based in Reading, PA,

announced today the commencement of a tender offer to acquire all of the outstanding shares of

common stock (including the associated rights) of Rollins Truck Leasing Corp. (NYSE: RLC), based in Wilmington,

 Del., for $13.00 net per share in cash.

 

The tender offer is being made pursuant to the Agreement and Plan of Merger by and among Penske Truck Leasing Co., L.P., Sun Acquisition Corporation, an indirect wholly owned subsidiary of Penske Truck Leasing, and Rollins Truck Leasing Corp., which the parties entered into and announced on January 15, 2001.  The tender offer is scheduled to expire at 12:00 Midnight, New York City time, on Wednesday, February 21, 2001, unless extended in accordance with the Merger

Agreement and applicable law.

 

The consummation of the tender offer is subject to customary closing conditions, including that

a majority of the outstanding Rollins shares are tendered, that the Hart-Scott-Rodino waiting

period expires or is terminated and that Rollins maintain tangible net equity of at least $321

million until the tender offer is completed.

Georgeson Shareholder Securities Corporation is acting as Dealer Manager for the tender offer

and Corporate Investors Communications, Inc. is acting as Information Agent.

 

Penske Truck Leasing is a global transportation services provider headquartered in Reading, Pa., with annual revenues of approximately $2.7 billion.  The company operates more than 144,000

heavy-, medium-, and light-duty trucks and serves customers from approximately 750 locations in

the United States, Canada, Mexico, South America and Europe.  Product lines include full-service leasing, contract maintenance, commercial and consumer rental, integrated logistics services and supply chain management.

 

Rollins Truck Leasing Corp. is a national full-service truck leasing and rental company, which

services more than 53,000 vehicles under various lease and maintenance agreements from

approximately 270 locations in the U.S. and Canada.

 

This announcement is not an offer to purchase nor a solicitation of an offer to sell shares. 

Penske Truck Leasing has filed a tender offer statement with the SEC and Rollins has filed a

solicitation/recommendation statement with the SEC with respect to the offer.  Investors and

security holders of Rollins are urged to read each of the tender offer statement and the

solicitation/recommendation statement referenced in this press release because they contain

important information about the transaction.  Investors and security holders may obtain a free

copy of the tender offer statement, the solicitation/recommendation statement and other

documents filed by Penske Truck Leasing and Rollins with the SEC at the SEC's web site at

www.sec.gov and from Penske Truck Leasing or Rollins.

 

SOURCE  Penske Truck Leasing  

 

CO:  Penske Truck Leasing; Rollins Truck Leasing Corp.; Georgeson Shareholder      Securities

Corporation

 

ST:  Pennsylvania, Delaware

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

   Major Changes to Come in Wireless Service

 

  Brience Goes Live on Evolve ServiceSphere in Only Six Weeks

 

 

 Leading Wireless Application Developer Manages Critical Business Processes  

 

   With Evolve ASP Solution 

 

EMERYVILLE, Calif., Jan 24 /PRNewswire/ -- Evolve(R) (Nasdaq: EVLV), a leading provider of

eBusiness solutions that optimize the service chain, today announced that Brience(TM), Inc., one of the fastest-growing, global providers of mobile infrastructure software that powers the

Adaptive Web, has successfully implemented Evolve's ServiceSphere(R) -- in only six weeks -- to

strategically manage their professional resources and automate their time and expense

management.

 

As the leader in wireless applications, Brience offers enterprise solutions designed to let

companies dynamically customize and deliver any information to any wireless or broadband device.

"We were looking for a fully functional web-based professional services automation (PSA)

solution that would provide for total visibility throughout our value chain allowing us to

provide our clients with the right set of skills at the right time," said Keyur Patel, Chief

Strategy Officer, Brience, Inc. "We selected Evolve's ASP (application service provider)

ServiceSphere because it was the clear choice for a solution that will support and manage our

global growth. Not only did the Evolve solution meet our stringent quality requirements but they were also willing to partner with us to ensure success and get us live without delay."

 

Kurt Heikkinen, Evolve Vice President of Worldwide Customer Service noted, "With embedded best practices for effective implementation, the Evolve RapidConnect(TM) implementation methodology ensures our customers get up to speed quickly, can take charge of the technology and are able to realize benefits rapidly. We are excited to stay connected with Brience as it streamlines its value-creating business processes, becomes more efficient and continues to grow."

 

Evolve ServiceSphere's sophisticated collaboration engine streamlines every phase of service

delivery, from new business development and pipeline management, to team building, project

management, online and offline time-and-expense reporting, billing and revenue analysis.

 

Under a partnership that extends beyond customer/client relationship, Evolve and Brience are

working together to bring Brience's technology to mobile-enable Evolve's ServiceSphere

application for wireless application platform (WAP) cellular phones, personal digital assistant

(PDA) devices on Palm, Windows CE or RIM-based platforms, and other future devices as the

wireless industry matures.

 

About Brience  

 

Brience is one of the fastest-growing, global providers of mobile infrastructure software that

powers the Adaptive Web. Brience extends existing business infrastructure to support a multitude of communication networks and Internet devices, providing increased accessibility, improved business efficiency, and a compelling end user experience.  Brience, with headquarters in San Francisco, California and 19 offices worldwide, serves the Global 2000. Additional information Brience can be found at http://www.brience.com or by calling 866-BRIENCE.

 

About Evolve  

 

Evolve provides solutions for integrating and streamlining the core business processes that are

critical to professional service organizations: managing project opportunities, professional

resources and service delivery. We call it Connecting the Service Chain(TM).

 

Nearly 100 leading service organizations have chosen Evolve, including the professional service

divisions of product-based companies like E.piphany, Ericsson, Exodus, Novell, Siemens, and Sun Microsystems; professional service firms such as EDS, marchFIRST, Razorfish, and Scient; and the IT departments of large corporations including Fleet Capital Leasing. Evolve is headquartered in Emeryville, Calif. (San Francisco Bay area), and has offices throughout North America and in the

 

UK. Additional information is available at www.evolve.com or 888-2EVOLVE.

 

Safe Harbor Statement  

 

This news release contains forward-looking statements, including but not limited to statements

regarding Evolve's customers and partners, the benefits of our solution, new and future product

plans, and the success of the company's products and services in meeting customer's needs.

Actual results could differ and such differences could be material. These statements involve

risks and uncertainties, including without limitation that the customer may not achieve the

benefits anticipated from such products, and our product rollouts may not occur as anticipated.

The company undertakes no obligation to update publicly any forward-looking statements to

reflect new information, events or circumstances after the date of this release. Investors are

encouraged to review the company's filings with the Securities and Exchange Commission for a

discussion of additional factors that could affect Evolve's future performance.

 

NOTE:  Evolve, the Evolve logo, ServiceSphere, RapidConnect, "Connecting the Service Chain", and Evolve. Connect. Thrive." are registered trademarks or trademarks of Evolve Software, Inc.

 

CONTACT:  Shannon Hart of Evolve, 510-428-6000, or shart@evolve.com; or Cynthia Randall of

hypelab, 415-977-1344, or cynthia@hypelab.com, for Evolve; or Mara McFalls of Brience,

415-547-3521, or mmcfalls@brience.com; or Susan Corkery of Horn Group, 415-905-4036, or

scorkery@horngroup.com, for Brience.

 

SOURCE  Evolve Software, Inc.

 

CO:  Evolve Software, Inc.; Brience

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

Progress Financial Corporation Announces Fourth Quarter Operating Earnings Of $1.8 Million, or

$.31 Per Share

 

 

BLUE BELL, Pa., Jan. 24 /PRNewswire/ --  

 

Progress Financial Corporation (the "Company")(Nasdaq: PFNC) today reported fourth quarter 2000 operating earnings of $1.8 million, or diluted earnings per share of $.31, before gains on sale of securities and the Maryland Leasing Division and other charges amounting to $420,000 or $.07 per share.  After the one-time gains and charges, the Company reported fourth quarter 2000 net income of $1.4 million, or diluted earnings per share of $.24 compared to net income of $2.0 million, or diluted earnings per share of $.32, for the fourth quarter of 1999.  Results for the fourth quarter of 1999 included $931,000 of client warrant income compared to $41,000 of client warrant income during the current quarter.

 

Net income for the twelve months ended December 31, 2000 totaled $7.3 million, or diluted

earnings per share of $1.22, compared to net income of $6.7 million, or diluted earnings per

share of $1.10, for the twelve months ended December 31, 1999.  Results for the twelve months ended December 31, 2000 included $3.5 million of client warrant income compared to $4.2 million for the comparable period in 1999.

 

Commenting on the fourth quarter results, W. Kirk Wycoff, President and CEO, stated, "Although the quarter included a number of non-recurring items of income and expense, I am delighted with core operating earnings, and the nearly 20% increase in deposits from our franchise expansion. 
We are especially pleased with the growth in fee income primarily due to an $808,000 increase in mutual fund, annuity and insurance commissions, a $205,000 increase in management fees generated by the Company's subsidiary Progress Capital Management, Inc. which manages the mezzanine debt and venture capital funds, and a $426,000 increase in consulting fees generated by the Company's subsidiary KMR Management, Inc. which provides financial and operational management consulting services for commercial clients."

 

Average earning assets for the fourth quarter of 2000 were $835.2 million compared to $668.2

million for the same period in 1999.  The growth in assets relates primarily to higher

commercial loan production and an increase in available for sale securities funded by

significant deposit growth.  Average loans (gross) increased $87.5 million, or 18%, compared to the same quarter of 1999.  Consequently, tax-equivalent interest income for the fourth quarter of 2000 increased $4.4 million, or 31%, over the same period in 1999.  Net interest income increased $1.1 million, or 15%, compared to the fourth quarter of 1999.  The net interest margin was 3.99% compared to 4.29% for the same period in 1999.

 

Loans and leases outstanding totaled $543.1 million at December 31, 2000 compared to $503.7

million at December 31, 1999.  This increase was primarily due to a $56.2 million increase in

commercial business loans and a $16.3 million increase in commercial real estate loans.  These

increases were partially offset by a $30.8 million decrease in lease receivables due to the

previously announced sale of the Company's Maryland-based leasing division. The Company reported non-performing assets of $5.8 million at December 31, 2000 and December 31, 1999.  The Company's non-performing assets to total assets ratio at December 31, 2000 was .63% compared to .75% at December 31, 1999.  The non-performing loans to assets ratio was .44% at December 31, 2000 compared to .74% at December 31, 1999.

 

During the quarter ended December 31, 2000, the Company recorded a $1.7 million provision for loan and lease losses (including the previously announced $1.2 million additional provision) due to loan and lease growth and the level of non-performing and delinquent loans and leases.  This resulted in a $441,000 increase in the provision for loan and lease losses from the comparable period in 1999.  Net charge-offs increased by $290,000 from the comparable quarter in 1999.  The ratio of the allowance for loan and lease losses to total loans and leases has increased significantly to 1.36% at December 31, 2000 compared to 1.18% at December 31, 1999.

 

Non-interest income for the quarter ended December 31, 2000 amounted to $6.5 million, compared to $6.1 million for the same period in 1999.  During the quarter, the Company recognized  $41,000 in client warrant income compared to $931,000 in the same period of 1999.  Loss in the unconsolidated entities was $802,000 during the quarter ended December 31, 2000 compared with income from equity in unconsolidated entities of $1.9 million in the 1999 quarter. The loss in the unconsolidated entities primarily relates to the Ben Franklin Mezzanine Debt Fund and NewSpring Ventures Venture Capital Fund.  The Company recognized a $1.7 million gain on the sale of its Maryland-based leasing division which closed during the fourth quarter of 2000.  Fee income increased $1.4 million primarily due to an $808,000 increase in mutual fund annuity and insurance commissions, a $205,000 increase in management fees generated by the Company's subsidiary Progress Capital Management, Inc., which manages the mezzanine debt and venture capital funds, and an increase of $426,000 in consulting fees generated by the Company's subsidiary KMR Management, Inc., which provides financial and operational management consulting services for commercial clients.

 

During the fourth quarter, the Company decided to sell its AMIC Division of Progress Realty

Advisors which conducts business primarily in Virginia and North Carolina.  As a result, the

Company recognized a one-time expense of $373,000 relating to reduction of goodwill associated with the AMIC Division.

 

Total non-interest expense was $10.8 million for the quarter ended December 31, 2000 compared to $9.1 million for the quarter ended December 31, 1999.  Excluding non-recurring expense of  $373,000 related to the sale of the AMIC Division in the fourth quarter of 2000, non-interest expense increased $1.4 million.  This increase was primarily due to increases in salaries and employee benefits of $1.1 million as a result of additional employees to staff three new bank branches, the acquisition of KMR Management, Inc., the staffing of Progress Capital Management, Inc., and from other new positions established within the Company.  Occupancy and furniture, fixtures and equipment expenses increased $298,000 mainly due to a new operations center, bringing data processing in-house, and new branch openings.  Capital securities expense increased $173,000 due to the issuance of $6.0 million of 11.445% capital securities in July 2000.  Total assets increased to $914.2 million at December 31, 2000 from $768.9 million at December 31, 1999.  Total deposits increased to $617.5 million at December 31, 2000 from $521.4 million at December 31, 1999.  Deposit growth of 18.4% was primarily the result of new commercial business customer relationships and retail branch expansion.

 

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 sixteen full service offices.  The Company also offers a diversified array of financial services including equipment leasing through Progress Leasing Company, with offices in Blue Bell, Pennsylvania, and financial planning services and investments through Progress Financial Resources, Inc., headquartered in Philadelphia, Pennsylvania; and asset based lending through Progress Business Credit.  In addition, the Company also conducts commercial mortgage banking and brokerage services through Progress Realty Advisors, Inc. with locations in Blue Bell, Pennsylvania; Richmond and Chesapeake, Virginia; Woodbridge, New Jersey; and Raleigh, North Carolina. The Company also receives fees for the construction and development of assisted living communities through Progress Development Corporation; venture capital activities managed by Progress Capital Management, Inc.; and financial and operational management consulting services for commercial clients through KMR Management, Inc. located in Willow Grove, Pennsylvania.  The Company's common stock is traded on the Nasdaq Stock Market, National Market under the Symbol "PFNC".

 

Progress Financial Corporation  

 

Consolidated Statements of Financial Condition  

 

(Dollars in Thousands) 

 

December 31,  December 31,  

 

2000          1999  

 

Assets:                                        (Unaudited)    (Audited)  

 

Cash and due from banks: 

 

Non-interest bearing                           $25,360       $15,648  

 

Interest bearing                                59,637        24,278  

 

Trading securities                                     -         3,267  

 

Investments and mortgage-backed securities  

 

Available for sale at fair value  

 

(amortized cost: $207,795 and $147,529)        205,166       149,518  

 

Held to maturity at amortized cost  

 

(fair value: $40,225 and $32,914)               41,940        34,309  

 

Loans and leases, net (net of reserve:  

 

7,407 and $5,927)                              535,712       497,738  

 

Premises and equipment                            18,343        15,600  

 

Other assets                                      28,091        27,395  

 

Net assets of discontinued operations                  -         1,188  

 

Total assets                                  $914,249      $768,941 

 

Liabilities and Shareholders' Equity  

 

Liabilities:  

 

Deposits                                        $617,543      $521,439  

 

Short-term borrowings                             79,360        50,767  

 

Other liabilities                                 31,954        22,475  

 

Long-term Debt:  

 

Federal Home Loan Bank advances                102,000        85,000  

 

Other debt                                      10,000        24,000  

 

Subordinated Debt                                  3,000         3,000  

 

Total liabilities                              843,857       706,681  

 

Corporation-obligated mandatorily redeemable  

 

capital securities of subsidiary trust  

 

holding solely junior subordinated debentures  

 

of the Corporation                               20,232        14,451 

 

Commitments and contingencies                          -             - 

 

Shareholders' equity:  

 

Serial preferred - 1,000,000 shares authorized  

 

but unissued -                                        -  

 

Junior participating preferred stock - $.01 par  

 

value - 1,010 shares authorized but unissued          -             -  

 

Common stock, $1 par value; 12,000,000 shares  

 

authorized; 5,814,000 and 5,680,000 shares  

 

issued; including treasury shares of 125,000  

 

and 152,000; and unallocated shares held by  

 

the Employee Stock Ownership Plan of 0  

 

and 14,000                                        5,814         5,680   

 

Other shareholders' equity, net                   46,145        40,895  

 

Net accumulated other comprehensive income  

 

(loss)                                           (1,799)        1,234  

 

Total shareholders' equity                      50,160        47,809  

 

Total liabilities, Corporation-obligated  

 

mandatorily redeemable capital securities  

 

of subsidiary trust holding and  

 

shareholders' equity                         $914,249      $768,941 

 

Progress Financial Corporation  

 

Consolidated Statements of Operations  

 

(Dollars in Thousands, except per share data) 

 

Three Months Ended      Twelve Months Ended  

 

December 31,             December 31,  

 

2000         1999         2000        1999  

 

(Unaudited) (Unaudited)  (Unaudited)  (Audited)  

 

Interest income:  

 

Loans and leases,  

 

including fees            $13,644     $10,860     $51,132    $40,952  

 

Mortgage-backed securities   3,125       2,055      10,461      8,008  

 

Investment securities        1,121         838       4,115      2,346 

 

Other                          426         223       1,320        868  

 

Total interest income     18,316      13,976      67,028     52,174 

 

Interest expense:  

 

Deposits                     7,003       4,808      24,162     16,759  

 

Short-term borrowings        1,572         432       4,707      2,199  

 

Long-term borrowings         1,494       1,570       6,306      6,474  

 

Total interest expense    10,069       6,810      35,175     25,432 

 

Net interest income            8,247       7,166      31,853     26,742  

 

Provision for loan and  

 

lease losses                  1,666       1,225       4,416      3,548  

 

Net interest income after  

 

provision for loan and  

 

lease losses              6,581       5,941      27,437     23,194 

 

Non-interest income:  

 

Service charges on deposits    514         584       2,236      2,097  

 

Lease financing fees           397         298       1,433      1,223  

 

Mutual fund, annuity and  

 

insurance commissions       1,710         902       4,605      2,669  

 

Loan brokerage and  

 

advisory fees                 540         688       2,193      2,385  

 

Gain (loss) from sale of  

 

securities                    270        (125)        533       (347)  

 

Gain from sale of leasing  

 

division                    1,686           -       1,686          -  

 

Client warrant income           41         931       3,523      4,188  

 

Equity (loss) in  

 

unconsolidated entities      (802)      1,909      (2,791)     2,524  

 

Fees and other               2,189         882       6,124      2,848 

 

Total non-interest income  6,545       6,069      19,542     17,587 

 

Non-interest expense:  

 

Salaries and employee  

 

benefits                    5,406       4,300      20,180     15,850  

 

Occupancy                      618         448       2,302      1,495  

 

Data processing                223         353       1,098      1,171  

 

Furniture, fixtures and  

 

equipment                     563         435       2,147      1,477  

 

Professional services          827         641       2,466      1,943  

 

Capital securities expense     572         399       1,907      1,595  

 

Other                        2,584       2,483       8,206      8,117 

 

Total non-interest  

 

expense                  10,793       9,059      38,306     31,648 

 

Income from continuing  

 

operations before income  

 

taxes                         2,333       2,951       8,673      9,133  

 

Income tax expense               907         994       3,016      3,101  

 

Income from continuing  

 

operations                    1,426       1,957       5,657      6,032  

 

Gain on sale of discontinued  

 

operations, net of tax            -           -       1,519          -  

 

Income from discontinued  

 

operations, net of tax            -           4         123        639  

 

Net income                    $1,426      $1,961      $7,299     $6,671 

 

Basic income from continuing  

 

operations per common share    $.25        $.33        $.98      $1.04  

 

Diluted income from continuing  

 

operations per common share    $.24        $.32        $.95       $.99  

 

Basic net income per  

 

common share                   $.25        $.33       $1.26      $1.15  

 

Diluted net income per  

 

common share                   $.24        $.32       $1.22      $1.10 

 

Dividends per common share      $.06        $.05        $.21       $.17 

 

Basic average common  

 

shares outstanding        5,731,664   5,851,322   5,793,607  5,778,014 

 

Diluted average common  

 

shares outstanding        5,889,374   6,064,781   5,984,594  6,085,859 

 

Progress Financial Corporation  

 

Supplemental Data 

 

Three Months Ended     Twelve Months Ended  

 

December 31,           December 31,  

 

2000        1999       2000        1999   

 

(Dollars in Thousands, except per share data)  

 

Profitability Measures:  

 

Return on average assets         .63%       1.08%        .88%       .98%  

 

Return on average equity       11.41       17.33       15.16      15.47  

 

Net interest spread (FTE) (B)   3.27        3.67        3.50       3.63  

 

Net interest margin (FTE) (B)   3.99        4.29        4.17       4.24  

 

Efficiency ratio               74.37       65.12       71.40      65.01  

 

Diluted net income per  

 

common share (A)               $.24        $.33       $1.22      $1.10 

 

Selected Loan Data:  

 

Non-performing assets         $5,784      $5,767      $5,784     $5,767  

 

Ratio of non-performing  

 

assets to total assets          .63%        .75%        .63%       .75%  

 

Ratio of allowance for loan  

 

and lease losses to total  

 

loan and leases receivable     1.36        1.18        1.36       1.18  

 

Ratio of allowance for loan  

 

and lease losses to  

 

non-performing loan and  

 

leases receivable            183.61      103.96      183.61     103.96  

 

Loan delinquency ratio          2.25        2.21        2.25       2.21  

 

Ratio of loans and leases  

 

to deposits                   87.95       96.59       87.95      96.59 

 

Selected Equity Data:  

 

Book value per share (A)       $8.82       $8.26       $8.82      $8.26  

 

Tangible book value  

 

per share (A)                  8.28        7.41        8.28       7.41  

 

Dividends per common share (A)   .06         .05         .21        .17  

 

Average equity to  

 

average assets                 5.56%       6.23%       5.78%      6.33%  

 

Tier 1 risk-based capital  

 

ratio (Bank)                   9.79        8.90        9.79       8.90  

 

Total risk-based capital  

 

ratio (Bank)                  11.04       10.01       11.04      10.01  

 

Tier 1 leverage ratio (Bank)    6.46        6.30        6.46       6.30 

 

Selected Average Balances:  

 

Loans, gross              $565,995    $478,535    $541,178   $454,479  

 

Earning assets             835,202     668,187     773,271    635,453  

 

Total assets               894,731     720,182     833,305    680,857  

 

Deposits                   604,321     502,207     561,450    452,998  

 

Equity                      49,723      44,899      48,141     43,131 

 

(A) Per share amounts have been restated to reflect the 5% stock dividend  

 

distributed to shareholders on August 31, 2000.

 

(B) FTE represents a fully tax equivalent basis.

 

Progress Financial Corporation  

 

Supplemental Balances 

 

Period-End Balances At:            December 31,   December 31,  % Change  

 

2000           1999 

 

Loans and Leases, Net:  

 

Commercial business                   $175,972      $119,807       46.9%  

 

Commercial real estate                 178,874       162,588       10.0  

 

Construction, net of loans in process   60,172        58,813        2.3  

 

Single family residential real estate   34,676        40,554      (14.5)  

 

Consumer                                37,242        34,918        6.7  

 

Leases receivable                       56,183        86,985      (35.4)  

 

Total loans and leases             543,119       503,665        7.8  

 

Allowance for loan and lease losses     (7,407)       (5,927)      25.0  

 

Loans and leases, net             $535,712      $497,738        7.6% 

 

Deposits:  

 

Non-interest-bearing demand deposits   $88,356       $65,305       35.3%  

 

NOW and SuperNow                       104,047        80,086       29.9  

 

Money Market                            37,157        35,015        6.1  

 

Passbook and Statement Savings          27,337        31,517      (13.3)  

 

Time deposits                          360,646       309,516       16.5  

 

Total Deposits                    $617,543      $521,439       18.4% 

 

SOURCE  Progress Financial Corporation  

 

CO:  Progress Financial Corporation

 

ST:  Pennsylvania

 

IN:  FIN

 

SU:  ERN

 

01/24/2001 16:03 EST http://www.prnewswire.com

 

 

 

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