|
Do you have a solution for each scenario
below that serves both your customer’s and your bank’s
best interests?
A. A profitable commercial printer who’s
been a good customer comes knocking at your door. The management
group has an opportunity to purchase the company from its
owner, however there is a $750,000 gap between the purchase
price and the available cash equity, seller financing, and
the amount of senior financing that could be supported by
the asset base.
B. A children’s day care company
wants to build a new 14,000 sq ft facility to accommodate
175 pre-schoolers. They have a 1st mortgage with you but need
additional financing for construction plus the purchase of
FF&E. And they need to preserve working capital.
C. This distribution company, like many
others, has suffered with current economy, but they are clearly
in a turn-around mode with a profitable future. Sales have
picked up, but meeting payroll and keeping vendors happy has
been a problem. They need a working capital line of credit
of about $50,000 – fast.
D. A provider of pharmacy services for
correctional facilities is planning a 82,000 sq. ft. expansion.
This company comes to you for construction and equipment loans.
It is important to the company that they borrow 100% of the
equipment cost but their financial statements do not warrant
the total amount requested for both loans.
On January 27, 2004, four panelists will
share insight into four types of alternative financing that
offer win-win solutions for these scenarios. Customers win
by having access to cost-effective packages. You win buy solving
your customer’s needs without jeopardizing your position.
You have the added advantages of helping a customer succeed
and potentially gaining more business.
The panel discussion on Alternative Financing
Sources will address:
- The SBA 504 Loan program which provides
businesses with long-term, below-market fixed-rate, subordinated
loans for real estate and construction. John Sower, President,
Chesapeake Business Finance Corp (CBFC), will show you how
your bank can help businesses gain the value of owning while
keeping their necessary loan to value in line by tapping
this SBA program. CBFC
is a private non-profit corporation licensed by the SBA
to make 504 loans to businesses throughout Maryland.
- A mezzanine subordinated loan that provides
businesses capital while preserving management’s 100%
ownership of the firm. Donald Tyson, Managing Director of
the Penn Mezzanine Fund, will explain how companies can
obtain financing similar to venture capital or an angel
investment without giving up equity. Penn Mezzanine is a small business mezzanine
loan fund owned by several banks in the Philadelphia area
and the Ben Franklin Technology Partners of Southeastern
Pennsylvania that invests in small and midsize businesses.
- A short-term working capital loan that
serves businesses unable to arrange conventional financing.
Vickie Tillman, Vice President for Cambridge Capital LLC,
will offer insight into how banks can tap independent commercial
finance companies to solve financing challenges. Cambridge
Capital, a locally owned and controlled finance company,
can provide account receivable financing to companies reporting
losses, negative net worth or just starting up.
- An equipment lease that permits businesses
to pay for equipment as it produces profits. Donna Ruth,
account manager for Chesapeake Industrial Leasing Co., Inc., will explain how a business
can conserve working capital, hedge against obsolescence
and inflation and frequently gain tax benefits.
All the panelists have a background in
commercial banking and experience in solving businesses financial
needs. Bring your toughest questions to the morning session
at the Columbia Hilton, Columbia, MD on January 27 from 7:30
to 9:30. Continental breakfast will be served. Register on-line
at the CCRMA website or by calling
301-725-3540.
|
|
Calendar includes 19 Programs – Several Brand
New Ones!
January 27 is “opening day”
for the Chesapeake Chapter’s 2004 program series. The
2004 line-up includes 19 seminars, workshops and social events
for all levels within the industry. Topics are as diverse
as alternative financing, writing, climbing the corporate
ladder, operational risk management, niche marketing, and
targeted prospecting.
We’ll open with a much-requested
seminar focusing on alternative financing sources (see related
story). A few days later, the topic is Lending for Nonprofits
as we present an RMA-CCRMA co-sponsored educational program.
If you’ve looked at this course before, look again!
It has been revised to include an overview and history of
nonprofits; changes in financial statement analysis and presentation;
a review of tax returns (990); underwriting policies and standards;
a list of resources; a nonprofits vocabulary; and case studies
to reinforce concepts learned.
In February, we’ll host the second
in our Young Financial Professional series with a panel of
senior lenders offering insight on climbing the corporate
ladder. Spring programs include two featuring Ned Miller,
a nationally-recognized expert in sales and a new program
to build writing skills. For details on these and all programs,
log onto our website. You can
even register on-line!
|
|
For many community banks, controlling
operational risks will be a key issue in 2004, a point
underscored during a recent RMA audioconference on the
subject. Three senior community bankers and a Federal
Reserve Bank regulator discussed the most worrisome
operational risks and the cultures their institutions
have promoted for dealing with them. For a full report
on the discussion, click on RMA’s
Feature of the Week.
The biggest concerns noted were: external events such
as 9/11 and the Northeast blackout last summer; new
technologies like electronic payment systems; and fraud.
According to RMA’s Director of Operational Risk,
Charles Taylor, many small to medium-sized community
banks are just beginning to identify how OR affects
them and ways to address these risks. This is an “emerging
science” but we do have some best practices defined,
two forums for ongoing discussions and sharing, and
a course, Operational Risk 101 available to members.
Taylor is also a valuable resource for members and he’ll
be available to Chesapeake Chapter members at an open
discussion on April 12. He’ll explain what OR
is and what effective management looks like as well
as review the Sarbanes-Oxley Act. Plan to bring your
questions and “what keeps you up at night”
to this event. As soon as a date and location are confirmed,
we’ll announce the details.
|
|
|
RMA offers text-based and multimedia self-study
courses with one goal in mind: helping you master critical
skills. RMA's self-study format is designed to reduce training
time and expense without leaving the office. You can enroll
in the Mentor On-line or choose paper or multimedia-based
courses. All allow you to learn at your pace when it’s
convenient to you. Courses cover a wide-range of topics from
introductory to advanced material. Learn more at RMA's website.
|
|
Interested in journalism? Have a knack
for sharing ideas? Like to write? Have a keen interest in
news? If you answered yes to any of questions, consider becoming
the chapter’s newest newsletter editor. The newsletter
editor works with the chapter administrator to put together
6 issues of Chesapeake Clips each year. Contact Jo Taylor
via email chapter president.
|
|
|
|
|
Examiners will be utilizing new examination
procedures, recently developed by the federal banking agencies,
to check your institutions risk management and anti-money
laundering strategies and policies for US Patriot Act Compliance.
SEC approved extensive changes adopted
by the NYSE & NASDAQ Stock Market in 2002 (based on Sarbanes
Oxley Act) to bolster the accountability and corporate governance
of listed companies. Implications of dealing with the new
law include: Board Structure and Duties, Board Independence
and Increasing Competition.
Have you assessed your institution regarding
overall Operational Risk? Operational risks encompass credit
risk, market risk, operating risk, securities lending and
consumer lending risks?
If these topics are “keeping you
up at night” please check out our local chapter’s
upcoming seminars and additional information provided by our
link to RMA Headquarters
data and seminars.
In order to receive the best value for
your membership I encourage you to contact me or our administrators,
Peter and Peggy, regarding specific topics of interest that
you would like information on, “hot topics of concern”
or specific training seminars for your employees. Your peers
may share your area of concern or need. We can meet your needs
with a half or full day seminar or “event” that
would benefit everyone.
It is our mission to serve you by providing
the most current and relevant information on risk management.
As always, your input and suggestions are most welcome. I
can be reached at 410-665-7600 x 3003 or via
email. I look forward to hearing from you!
Jo Taylor, CCRMA President
Click here
for a complete list of CCRMA Board Contacts!
|
|
Career Corner – Practical Tips to Advance Your
Career
Short on leadership and management skills?
Consider a volunteer position.
Your current position may not afford you the opportunity to
manage people. What’s more, it may be some time before
you get that chance in your own workplace. Volunteering, especially
in a leadership role, can put you on the fast track to developing
these skills.
As a volunteer leader, you can hone leadership and management
skills including:
Communication Skills – learn that communication
is a two-way street. The best leaders are the best listeners
who invite new ideas to the table.
Decision-making Skills – learn to move people
along to a decision as well as how to make one when it’s
time.
Management Skills – as a leader or committee
chair, learn to manage a group of volunteers to produce results.
Delegation Skills – learn what to delegate, the
best ways to do so, and how to follow up to assure jobs are
done.
Presentation Skills – learn to organize your
presentations and get comfortable in front of a crowd.
Along the way, you’ll pick up some great networking
possibilities and some outstanding opportunities to showcase
your talents.
Imagine when your boss learns that you organized, recruited
bank presidents, and prepared the panel questions for the
recent CEO Luncheon and Panel which attracted 120 bankers!
Perhaps leadership guru, Peter F. Drucker, said it best:
“…My friends in business always come to me
with enormous development programs for their people and I
take a very dim view of them. Because the real development
I’ve seen in people… comes from their being volunteers
in an organization. You have responsibility, you see results,
and you very soon find out what your values are.”
To find a volunteer position that fits,
begin by joining the Chapter’s Young Financial Professionals
group. Contact Charles Ruch at 410-626-2113 or via email.
And plan to attend the group’s next meeting, a luncheon
panel on “Advancing Your Career in Banking” on
February 11 featuring four senior bankers who will provide
tips and resources for career success. Click here for details.
|
|
Julie Damron
Riggs Bank N.A.
John DiPietro
Citizens National Bank
William Fuller
Harbor Bank of Maryland
John Kearney
SCORE
Philip Reaves
Citizens National Bank
Andrew Seested
UBS AG
Victoria Tompkins
Citizens National Bank
April Wong
National Cooperative Bank
|
|
