INDUSTRY NEWS

EXCLUSIVE: Santander Bank Exits Equipment Finance

Monitor has learned from reliable industry sources that Santander Bank, in an effort to drive capital savings and core C&I, is planning to exit the equipment finance industry in the U.S., consistent with a similar shutdown of EFL in the UK.

Sources additionally report that an asset purchase agreement has been signed with Sterling National Bank (No. 51 on the Monitor 100) to acquire the equipment finance business from Santander.

Though Santander’s equipment finance division has posted consistently good, sustainable results — reaching No. 47 on the Monitor 100 list this past June — the parent bank in Madrid has decided to realign its focus on its core commercial footprint in C&I and focus on clients that can drive a more traditional commercial bank cross sell.


Sponsored

Hitachi Capital America Technology Finance Launches New Website

Hitachi Capital America Technology Finance launched a new website that compliments the company’s financing solutions to value-added resellers (VARs) and focuses on universal branding and website navigation. The launch of the website is part of Hitachi’s rebranding campaign to promote their new name with a more focused product offering to their core client base, VARs and technology vendors. 

AP Equipment Financing Q2/2019 Volume Up 38.9%

AP Equipment Financing closed a record-setting second quarter in 2019 having funded $43.9 million, representing a 38.9% growth over Q2/2018. AP was listed at #90 on the Monitor’s Top 100 Equipment Finance Companies this past June and plans to continue beyond its current position in 2019, with trends suggesting the company will see an all-time high in funded volume this year.

ACT: Commercial Vehicle Markets Heading for a Market Correction in 2020

In its latest Commercial Vehicle Dealer Digest, ACT Research noted that the heavy truck and trailer markets, and increasingly the medium duty market, are heading for corrections in 2020, even as the slow growth U.S. economic outlook remains largely unchanged, aside from concerns about trade and tariffs. The key driver of the near to mid-term outlook is the U.S. consumer, who remains well positioned to keep the economy out of the ditch, even as key freight-generating sectors of the economy take a pause.

Balboa: 60% of Small Businesses Got Unsecured Loans from Non-Bank Lenders

Direct lender Balboa Capital released findings from its survey aimed at gauging small business owners’ understanding of unsecured business loans and to ascertain where small business owners obtained unsecured business loans during the first six months of 2019. The results revealed that 75% of small business owners are familiar with unsecured business loans and 60% acquired their loans from non-bank lenders.

FASB Proposes Guidance Update on Transition From LIBOR

The Financial Accounting Standards Board issued a proposed accounting standards update that would provide temporary optional guidance to ease the potential burden in accounting for, or recognizing the effects of, reference rate reform on financial reporting. The proposed ASU would provide optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships affected by reference rate reform. The guidance would apply only to contracts or hedging relationships that reference LIBOR or another reference rate expected to be discontinued.

Sponsored

Signature Financial Adopts LTi ASPIRE v.5 Platform

Signature Financial, Signature Bank’s equipment finance subsidiary, will upgrade to LTi Technology Solutions’ ASPIRE v.5 platform. Signature determined ASPIRE would be the most effective solution for handling its market workflows and managing projected growth.

First American EF Ranks #30 on ‘Best Companies to Sell For’ List

Selling Power Magazine identified First American Equipment Finance as #30 among the top sales forces in the U.S. The ranking includes companies of all sizes, with sales teams ranging from fewer than 100 salespeople to salesforce numbers in the thousands.

Marlin Reports 29% Volume Increase Y/Y in Q2/2019

Marlin Capital Solutions reported second quarter 2019 net income of $6.1 million, or $0.49 per diluted share, compared with $5.1 million, or $0.41 per diluted share in the prior quarter, and $6.5 million, or $0.52 per share a year ago. Second quarter 2019 net income on an adjusted basis was $6.3 million, or $0.51 per diluted share, compared with $6.5 million or $0.52 per diluted share a year ago.

White Clarke Digital Solution Supports Merchants Bank Floorplan Finance

Merchants Bank launched its digital floorplan strategy following a four-month program to introduce new software that automates business processes, reduces administration and enhances the finance customer experience. It chose to implement the program through CALMS Compass, a floorplan finance solution from Atlanta-based fintech provider White Clarke Group.

Rush Enterprises Reports $1.55B in Revenue in Q2/2019

Commercial vehicle dealership operator Rush Enterprises achieved revenues of $1.545 billion and net income of $41.6 million, or $1.10 per diluted share in the second quarter of 2019, compared with revenues of $1.349 billion and net income of $29.4 million, or $0.72 per diluted share, in the quarter ended June 30, 2018.

Allegiance Financial Adopts IDS InfoLease 10 to Manage Portfolios

Allegiance Financial Group selected IDS InfoLease 10 for portfolio management. The platform will provide flexibility and agility to support AFG’s business model which focuses on constructing the right financial product to meet a customers’ specific business needs.

Chesswood Reports $8MM in Adjusted Income for Q2/2019

Sponsored

Commercial equipment finance provider Chesswood Group reported its results for the second quarter and six-months ended June 30, 2019. Adjusted operating income for the second quarter was $8 million compared to $9 million in the second quarter of 2018. This measures Chesswood’s operating income before the change in the allowance for credit losses in the period and Tandem Finance’s net expenses.

Solar Capital Sees Net Originations of $120.4MM in Q2/2019

Solar Capital reported net investment income of $18.4 million, or $0.44 per share, for the second quarter of 2019. The company also had total originations of $120.4 million and repayments and amortization of $162.1 million across its four core business units: cash flow, asset-based, equipment finance and life science lending.

TBF Financial Buys $60MM in Commercial Debt from Online Lender

TBF Financial, a purchaser of non-performing equipment leases, purchased nearly $60 million in non-performing loans from a major online small business lender in recent transactions. TBF bought the pools of post-charge-off loans as the highest bidder in transactions arranged through multiple brokers. In most cases, the company purchases directly from alternative lenders, equipment leasing companies and banks.

Avolon Reports Q2/2019 Profit of $185MM

International aircraft leasing company Avolon reported a profit of $185 million in the second quarter of 2019. Other financial highlights included lease revenue for the quarter of $678 million and generated net cash of $423 million of net cash from operating activities.

Survey: Tech Advancements Pose Challenge to Transportation Industry

Emerging technology has continued to disrupt nearly every industry, and, according to a new survey, the transportation sector is no exception. Fleet managers expect major changes, as more than half (52%) state that new technology poses the biggest challenge for their fleet in the upcoming year, according to a survey released by TD Bank and conducted at the NAFA Fleet Management Association 2019 Institute & Expo.

North Mill Posts All-Time High in Orginations in July

Independent commercial equipment lessor North Mill Equipment Finance saw yet another record-breaking month in originations as the company posted $15 million of aggregate volume in July. An all-time high for the organization, the momentum is expected to continue as the year progresses.

LeaseAccelerator, Clearlink Partner Up on ASC 842, GASB 87 Adoption

Independent professional services firm Clearlink Partners joined the global alliance program of lease accounting software provider LeaseAccelerator. The alliance will enable Clearlink Partners to offer private companies, smaller public companies and governmental entities that need help with the implementation and operation of the new standards with services such as future state design, data collection, software implementation and managed services. •