Fund – Woonsocket High http://woonsockethigh.org/ Sat, 25 Sep 2021 01:41:00 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 http://woonsockethigh.org/wp-content/uploads/2021/05/woonsocket-high-icon-150x150.png Fund – Woonsocket High http://woonsockethigh.org/ 32 32 Pintec (PT) drops 1.02% in Light Trading on September 24 http://woonsockethigh.org/pintec-pt-drops-1-02-in-light-trading-on-september-24/ http://woonsockethigh.org/pintec-pt-drops-1-02-in-light-trading-on-september-24/#respond Sat, 25 Sep 2021 01:41:00 +0000 http://woonsockethigh.org/pintec-pt-drops-1-02-in-light-trading-on-september-24/

Pintec Technology Holdings Ltd – ADR (NASDAQ: PT) fell to close at $ 0.97 on Friday after losing $ 0.01 (1.02%) on a volume of 60,466 shares. The stock ranged from a high of $ 0.98 to a low of $ 0.93, while Pintec’s market cap now stands at $ 34,977,052.

About Pintec Technology Holdings Ltd – ADR

PINTEC Technology Holdings Limited is a leading independent technology platform providing financial services in China. By connecting business and financial partners on its open platform, PINTEC enables them to deliver financial services to end users effectively and efficiently. The Company offers its partners a full range of personalized solutions, ranging from point-of-sale financing, personal installment loans and installment loans to businesses, to wealth management and insurance products. Leveraging its scalable and reliable technology infrastructure, PINTEC serves a wide range of verticals spanning online travel, e-commerce, telecommunications, online education, SaaS platforms, financial technology, research on Internet and online classifieds and listings, as well as various types of financial partners including banks, brokers, insurance companies, investment funds and trusts, consumer finance companies, peer-to-peer platforms and other similar institutions.

Visit the Pintec Technology Holdings Ltd – ADR Profile for more information.

The daily solution

Twitter (NYSE: TWTR) disclosed a binding agreement to settle a consolidated class action lawsuit, under which the social media company will pay $ 809.5 million to resolve allegations it provided misleading information to investors.

The Federal Reserve is reviewing ethics policies that govern financial holdings and the activities of its senior officials following recent revelations that two regional Fed chairmen engaged in intensive trade last year.

Breakthrough Energy, a non-profit organization started by a billionaire philanthropist and Microsoft (NASDAQ: MSFT), co-founder Bill Gates in 2016, raised a treasure trove of seven leading global companies to advance the organization’s mission of achieving a net zero emissions society by 2050.

About the Nasdaq Stock Market

The Nasdaq Stock Market is a global leader in trading data and services, as well as the listing of stocks and options. The Nasdaq is the world’s largest stock exchange for options volume and is home to the five largest US companies – Apple, Microsoft, Amazon, Alphabet and Facebook.

To get more information about Pintec Technology Holdings Ltd – ADR and keep up with the latest company updates, you can visit the company profile page here: Pintec Technology Holdings Ltd – ADR’s Profile. For more information on the financial markets, be sure to visit Equities News. Also, don’t forget to sign up for the Daily Fix to get the best stories delivered to your inbox 5 days a week.

Sources: The chart is provided by TradingView based on 15 minute lag prices. All other data is provided by IEX Cloud as of 8:05 p.m. ET on the day of publication.

DISCLOSURE:
The views and opinions expressed in this article are those of the authors and do not represent the views of equities.com. Readers should not take the author’s statements as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please visit: http://www.equities.com/disclaimer


President Biden welcomes leaders of India, Japan and Australia to first “Quad” summit on Friday


Some Chinese Banks Stop Offering New Loans To Real Estate Developers Amid Evergrande Fear

Iowa Senator Chuck Grassley is running for eighth term

Special House committee assigns four Trump allies in U.S. Capitol riots investigation

CDC approves COVID-19 vaccine booster shots for millions of elderly and vulnerable people

Semiconductor shortage to cost global auto industry $ 210 billion in revenue in 2021

US Olympians to be vaccinated against COVID-19 for Beijing Winter Games

FAA urges airlines to take stronger action with unruly and disruptive passengers

Source link

]]>
http://woonsockethigh.org/pintec-pt-drops-1-02-in-light-trading-on-september-24/feed/ 0
M&T Bank Corporation – Consensus indicates potential rise of 18.2% http://woonsockethigh.org/mt-bank-corporation-consensus-indicates-potential-rise-of-18-2/ http://woonsockethigh.org/mt-bank-corporation-consensus-indicates-potential-rise-of-18-2/#respond Fri, 24 Sep 2021 10:12:01 +0000 http://woonsockethigh.org/mt-bank-corporation-consensus-indicates-potential-rise-of-18-2/

M&T banking company with ticker code (MTB) now have 17 analysts covering the stock. Analyst consensus indicates a rating of “Hold”. The range between the high target price and the low target price is between 201 and 137.75 with an average TP of 161.34. With the stock’s previous close at 136.5, this indicates that there is upside potential of 18.2%. The 50 day MA is 137.99 and the 200 moving average now drops to 148.06. The company has a market capitalization of $ 18,266 million. You can visit the company’s website by visiting: http://www.mtb.com

M&T Bank Corporation is a banking holding company providing commercial and retail banking services. The Company’s Business Banking segment provides deposit, lending, cash management and other financial services to small businesses and professionals. Its Commercial Banking segment provides deposit products, commercial loans and leases, letters of credit and cash management services to medium and large commercial clients. The commercial real estate segment of the company creates, sells and manages commercial real estate loans; and offers depository services. Its discretionary portfolio segment provides deposits; securities, residential real estate loans and other assets; and short- and long-term borrowed funds, as well as foreign exchange services. The Company’s residential mortgage banking segment provides residential real estate loans to consumers and sells these loans in the secondary market; and buys management rights on loans issued by other entities. Its Retail Banking segment offers current, savings and term accounts; consumer installment loans, auto and recreational finance loans, home equity loans and lines of credit and credit cards; mutual funds and annuities; and other benefits. The company also ensures the management of trust and patrimony; fiduciary and security; investment management; and insurance agency services. It provides its services through bank offices, commercial banking centers, telephone and Internet banking, mobile banking and automated teller machines. As of December 31, 2020, the Company operated 716 national bank offices in New York State, Maryland, New Jersey, Pennsylvania, Delaware, Connecticut, Virginia, West Virginia and the District of Columbia; a full-service commercial banking office in Ontario, Canada; and an office in George Town, Cayman Islands. M&T Bank Corporation was founded in 1856 and is headquartered in Buffalo, New York.

You can now share this on Stocktwits, just click on the logo below and add the ticker in the text to be seen.

Source link

]]>
http://woonsockethigh.org/mt-bank-corporation-consensus-indicates-potential-rise-of-18-2/feed/ 0
TEB BANCORP: Management report and analysis of the financial situation and operating results (form 10-K) http://woonsockethigh.org/teb-bancorp-management-report-and-analysis-of-the-financial-situation-and-operating-results-form-10-k/ http://woonsockethigh.org/teb-bancorp-management-report-and-analysis-of-the-financial-situation-and-operating-results-form-10-k/#respond Thu, 23 Sep 2021 19:48:05 +0000 http://woonsockethigh.org/teb-bancorp-management-report-and-analysis-of-the-financial-situation-and-operating-results-form-10-k/
This discussion and analysis reflects our consolidated financial statements and
other relevant statistical data, and is intended to enhance your understanding
of our financial condition and results of operations. The information in this
section has been derived from the consolidated financial statements, which
appear elsewhere in this annual report. You should read the information in this
section in conjunction with the other business and financial information
provided in this annual report.

Overview


Total assets increased $10.2 million, or 3.3%, to $315.7 million at June 30,
2021 from $305.5 million at June 30, 2020, primarily reflecting increases in
cash and cash equivalents and available for sale securities offset by decreases
in loans held for investment and loans held for sale. Total deposits increased
$13.8 million, or 5.4%, to $269.9 million at June 30, 2021 from $256.1 million
at June 30, 2020. This resulted from an increase in interest-bearing savings and
NOW accounts, which increased $12.8 million, or 16.9%, to $88.2 million at June
30, 2021 from $75.4 million at June 30, 2020, and an increase in demand
deposits, which increased $15.4 million, or 16.4%, to $109.0 million at June 30,
2021 from $93.6 million at June 30, 2020.

Borrowed funds, consisting solely of Federal Home Loan Bank of Chicago ("FHLB")
advances, decreased $4.0 million, or 44.4%, to $5.0 million at June 30, 2021
from $9.0 million at June 30, 2020. Increased levels of deposits and cash during
the year reduced our reliance on borrowed funds.



Net income was $6.4 million for the year ended June 30, 2021, compared to $1.1
million for the year ended June 30, 2020. The increase in income was due to an
increase in non-interest income during the year ended June 30, 2021, offset by a
decrease in net interest income and an increase in non-interest expense. Net
interest income after provision for loan losses decreased $454,000, or 4.8%, to
$9.1 million for the year ended June 30, 2021 from $9.5 million for the year
ended June 30, 2020, primarily as a result of a lower average balance of loans.
Non-interest income increased by $7.0 million, or 111.7%, to $13.2 million for
the year ended June 30, 2021 from $6.2 million for the year ended June 30, 2020,
primarily resulting from a $6.9 million, or 135.0%, increase in gain on sales of
mortgage loans. Non-interest expenses increased $1.2 million, or 8.4%, to $15.9
million for the year ended June 30, 2021 compared to $14.7 million for the year
ended June 30, 2020. The increase in non-interest expenses was due to an
increase in compensation and benefits expense during the year ended June 30,
2021.

Change in Fiscal Year

The Equitable Bank changed his exercise to June 30th of September 30, effective with June 30, 2018 fiscal year.

Summary of significant accounting policies


The discussion and analysis of the financial condition and results of operations
are based on our financial statements, which are prepared in conformity with
accounting principles generally accepted in the United States of America ("U.S.
GAAP"). The preparation of these financial statements requires management to
make estimates and assumptions affecting the reported amounts of assets and
liabilities, disclosure of contingent assets and liabilities, and the reported
amounts of income and expenses. We consider the accounting policies discussed
below to be significant accounting policies. The estimates and assumptions that
we use are based on historical experience and various other factors and are
believed to be reasonable under the circumstances. Actual results may differ
from these estimates under different assumptions or conditions, resulting in a
change that could have a material impact on the carrying value of our assets and
liabilities and our results of operations.

The JOBS Act contains provisions that, among other things, reduce certain
reporting requirements for qualifying public companies. As an "emerging growth
company" we may delay adoption of new or revised accounting pronouncements
applicable to public companies until such pronouncements are made applicable to
private companies. We determined to take advantage of the benefits of this
extended transition period. Accordingly, our financial statements may not be
comparable to companies that comply with such new or revised accounting
standards.

                                       39

————————————————– ——————————

Contents

The following are our main accounting policies:


Allowance for Loan Losses. The allowance for loan losses is established as
losses are estimated to have occurred through a provision for loan losses
charged to operations. Loan losses are charged against the allowance when
management believes the uncollectability of a loan balance is confirmed.
Subsequent recoveries, if any, are credited to the allowance for loan losses.
The allowance for loan losses consists of specific reserves on certain impaired
loans from analyses developed through specific credit allocations for individual
loans. The specific reserve relates to all loans for which the allowance for
loan losses is estimated on a loan by loan basis using either the present value
of expected future cash flows discounted at the loan's effective interest rate,
the loan's obtainable market price, or the fair value of the collateral if the
loan is collateral dependent. The general reserve is based on our historical
loss experience along with consideration of certain qualitative factors such as
(i) changes in the nature, volume and terms of loans, (ii) changes in lending
personnel, (iii) changes in the quality of the loan review function,
(iv) changes in nature and volume of past-due, non-accrual and/or classified
loans, (v) changes in concentration of credit risk, (vi) changes in economic and
industry conditions, (vii) changes in legal and regulatory requirements,
(viii) unemployment and inflation statistics, and (ix) changes in underlying
collateral values.

There are many factors affecting the allowance for loan losses, some are
quantitative while others require qualitative judgment. The allowance for loan
losses reflects management's best estimate of the probable and inherent losses
on loans. The adequacy of the allowance for loan losses is reviewed and approved
by our board of directors. Allocations of the allowance for loan losses may be
made for specific loans, but the entire allowance for loan losses is available
for any loan that, in management's judgment, should be charged-off.

As an integral part of their examination process, various regulatory agencies
review the allowance for loan losses as well. Such agencies may require that
changes in the allowance for loan losses be recognized when such regulatory
credit evaluations differ from those of management based on information
available to the regulators at the time of their examinations.

Income Taxes. Deferred tax assets and liabilities are recognized for the
estimated future tax consequences attributable to differences between the
financial statement carrying amounts of existing assets and liabilities and
their respective tax basis. Deferred tax assets and liabilities are measured
using enacted tax rates in effect for the year in which those temporary
differences are expected to be recovered or settled. The effect on deferred tax
assets and liabilities of a change in tax rates is recognized in income in the
period that includes the enactment date. Deferred tax assets are reduced by a
valuation allowance when, in the opinion of management, it is more likely than
not that some portion or all of the deferred tax assets will not be realized.

We recognize the tax effects from an uncertain tax position in the consolidated
financial statements only if the position is more likely than not to be
sustained on audit, based on the technical merits of the position. We recognize
the financial statement benefit of a tax position only after determining that
the relevant tax authority would more likely than not sustain the position
following an audit. For tax positions meeting the more-likely-than-not
threshold, the amount recognized in the consolidated financial statements is the
largest benefit that has a greater than 50% likelihood of being realized, upon
ultimate settlement with the relevant tax authority. We recognize interest and
penalties accrued or released related to uncertain tax positions in current
income tax expense or benefit.

Covid-19 epidemic


In December 2019, a coronavirus (COVID-19) was reported in China, and, in March
2020 was declared a national emergency in the United States. The COVID-19
pandemic has caused significant economic dislocation in the United States as
many state and local governments ordered non-essential businesses to close and
residents to shelter in place at home. Certain industries have been particularly
hard-hit, including the travel and hospitality industry, the restaurant
industry, and the retail industry. The following table shows the Company's
exposure within these hard-hit industries.



                                       40

————————————————– ——————————

  Table of Contents


Commercial Loan Type              June 30, 2021      Percentage of Portfolio Loans
Restaurant, food service, bar    $     1,572,457                        0.73 %
Retail                                 2,255,298                        1.04 %
Hospitality and tourism                        -                           - %
                                 $     3,827,755                        1.77 %



The Company's allowance for loan losses increased $59,000 to $1.4 million at
June 30, 2021 compared to $1.4 million at June 30, 2020. Provisions were booked
totaling $150,000 during the year ended June 30, 2021, compared to $135,000
during the year ended June 30, 2020. At June 30, 2021 and June 30, 2020, the
allowance for loan losses represented 0.65% and 0.57% of total loans,
respectively. In determining its allowance for loan loss level at June 30, 2021,
the Company considered the health and composition of its loan portfolio going
into the COVID-19. At June 30, 2021, approximately 98.8% of the Company's loan
portfolio was collateralized by real estate. Approximately 1.8% of the Company's
loan portfolio is to borrowers in the more particularly hard-hit industries
(including the restaurant and food service industries, retail industry, and
hospitality and tourism industries) and the Company has no international
exposure.

Given the ongoing and dynamic nature of the circumstances, it is difficult to
predict the full impact of the COVID-19 outbreak on our business. The extent of
such impact will depend on future developments, which are highly uncertain,
including when the coronavirus can be controlled and abated and when and how the
economy continues to reopen. As the result of the COVID-19 pandemic and the
related adverse local and national economic consequences, we could be subject to
any of the following risks, any of which could have a material, adverse effect
on our business, financial condition, liquidity, and results of operations:

? demand for our products and services may decrease, making it difficult to grow

assets and income;

if the economy is unable to continue to reopen, and / or high levels of

? return to unemployment, loan delinquencies, problematic assets and foreclosures can

increase, resulting in increased expenses and decreased income;

? loan guarantees, especially real estate, may lose value, which could

increase loan losses;

our allowance for loan losses may need to be increased if borrowers

? financial difficulties beyond the abstention periods, which will negatively affect

our net income;

? the equity and liquidity of loan guarantors may decline, compromising their

ability to honor commitments to us;

as a result of the drop in of the Federal Reserve Board federal target

? funds close to 0%, the return on our assets could fall further

that the decrease in our cost of interest-bearing debt, reducing our

interest margin and spread and reduction in net income;

? our uninsured investment income may decline as a result of continuing market turmoil;

? our cybersecurity risks are increased due to an increase in the

number of employees working remotely;

we rely on third-party providers for certain services and the unavailability of a

? critical service due to the COVID-19 outbreak could have a negative effect on

we; and

? Federal Deposit Insurance Corporation premiums may increase if the agency

incurs additional resolution costs.



Moreover, our future success and profitability substantially depends on the
management skills of our executive officers and directors, many of whom have
held officer and director positions with us for many years. The unanticipated
loss or unavailability of key employees due to the outbreak could harm our
ability to operate our business or execute our

                                       41

————————————————– ——————————

Contents

business strategy. We may not be able to find and integrate suitable successors in the event of loss or unavailability of key employees.

Any or a combination of the factors identified above could have a negative impact on our business, financial condition, results of operations and prospects.


As of June 30, 2021, the Company originated 26 PPP loans totaling $1.8 million
and generated approximately $76,000 from the processing fees. All PPP loan
originations occurred before the end of the June 30, 2021 reporting period. As
of June 30, 2021, 18 PPP loans totaling $1.1 million have been forgiven.

As of June 30, 2021, the Company had modified 88 loans aggregating $22.9
million, primarily consisting of the deferral of principal and interest payments
and the extension of the maturity date. Of these modifications, $22.8 million,
or 99.5%, were performing in accordance with the accounting treatment under
Section 4013 of the CARES Act and therefore did not qualify as TDRs. As of June
30, 2021, all of these modifications have resumed monthly loan payments and no
modifications remain in a deferred status. Three loans totaling $294,000 that
were modified did not qualify for the favorable accounting treatment under
Section 4013 of the CARES Act and therefore each loan was reported as a TDR;
however, one of the loans was transferred out of TDR status after receiving six
consecutive monthly payments after the end of the deferral period. Management
has evaluated the loans and determined that based on the liquidation value of
the collateral, no specific reserve is necessary.


                                                            As of June 30, 2021
                                            Payments Resumed                   Payments Deferred
Loan Classification                 Number of Loans       Balance       Number of Loans         Balance
Construction, land, development                    2    $    113,324                   -        $      -
1-4 family owner occupied                         50       6,928,668                   -               -
1-4 family non-owner occupied                     16       2,255,510                   -               -
Multifamily                                       13      10,716,179                   -               -
Commercial owner occupied                          2       1,419,056                   -               -
Commercial non-owner occupied                      2       1,408,571                   -               -
Consumer and installment loans                     3          40,655                   -               -
Total loan modification requests                  88    $ 22,881,963                   -        $      -



Comparison of financial position to June 30, 2021 and June 30, 2020


Total assets increased $10.2 million, or 3.3%, to $315.7 million at June 30,
2021 from $305.5 million at June 30, 2020, primarily reflecting increases in
cash and cash equivalents and available for sale securities offset by decreases
in loans held for investment and loans held for sale.

Cash and cash equivalents increased $36.3 million, or 276.8%, to $49.4 million
at June 30, 2021 from $13.1 million at June 30, 2020 due to the increased
balance in deposit accounts and decrease in total loans outstanding during the
year.

Available-for-sale securities increased $12.6 million, or 61.9%, to $32.9
million at June 30, 2021 from $20.3 million at June 30, 2020, due to utilizing
excess cash to purchase securities totaling $16.9 million, offset by maturities
and calls of $4.3 million.

Loans held for investment decreased $21.8 million, or 9.1%, to $216.8 million at
June 30, 2021 from $238.7 million at June 30, 2020, primarily reflecting a
decrease in one- to four-family owner occupied loans of $28.5 million, or 28.4%,
to $72.0 million at June 30, 2021 from $100.5 million at June 30, 2020. The
decrease in one- to four-family owner occupied loans resulted from increased
refinances and loan paydowns. These decreases were partially offset by an
increase in multifamily loans of $15.4 million, or 20.2%, to $91.9 million at
June 30, 2021 from $76.4 million at June 30, 2020, as we continue to focus on
originating this type of loan.

                                       42

————————————————– ——————————

Contents


Loans held for sale decreased $11.8 million, or 63.3%, to $6.9 million at June
30, 2021 from $18.7 million at June 30, 2020. We currently sell a majority of
the fixed-rate one- to four-family residential real estate loans that we
originate. The balances at any month end vary based on the timing and volume of
loan originations and sales. The decrease in mortgage interest rates due to
COVID-19 resulted in a greater volume of loans originated and sold in the last
quarter of the fiscal year ended June 30, 2020.

Total deposits increased $13.8 million, or 5.4%, to $269.9 million at June 30,
2021 from $256.1 million at June 30, 2020. The increase was due to increases in
demand deposits of $15.4 million, or 16.4%, to $109.0 million at June 30, 2021,
from $93.6 million at June 30, 2020 and interest-bearing savings and NOW
accounts of $12.8 million, or 16.9%, to $88.2 million at June 30, 2021 from
$75.4 million at June 30, 2020, offset by a decrease in certificates of deposit
of $14.3 million, or 16.4%, to $72.7 million at June 30, 2021 from $87.0 million
at June 30, 2020. These increases are largely due to increased economic stimulus
payments with decreases in certificates of deposit balances resulting from
decreases in interest rates offered.

Borrowed funds, consisting solely of FHLB advances, decreased $4.0 million, or
44.4%, to $5.0 million at June 30, 2021 from $9.0 million at June 30, 2020.
During the year, deposits increased and assets decreased, which allowed us to
pay down borrowings.



Total equity increased $9.6 million, or 40.9%, to $33.1 million at June 30, 2021
from $23.5 million at June 30, 2020 as a result of net income for the year.
Accumulated other comprehensive loss decreased as a result of higher yields on
our pension investments, resulting in a net positive funded status as of June
30, 2021.

Average Balance Sheet

The following table sets forth average balance sheets, average yields and costs,
and certain other information at and for the periods indicated. No
tax-equivalent yield adjustments have been made, as the effects would be
immaterial. All average balances are daily average balances. Non-accrual loans
were included in the computation of average balances.

                                       43

————————————————– ——————————

Contents


The yields set forth below include the effect of deferred fees, discounts, and
premiums that are amortized or accreted to interest income or interest expense.
Loan balances exclude loans held for sale.



                                        For the Year Ended June 30, 2021            For the Year Ended June 30, 2020
                                      Average                                     Average
                                    Outstanding                    Average      Outstanding                     Average
                                      Balance        Interest     Yield/Rate      Balance         Interest     Yield/Rate

                                                                   (Dollars in thousands)
Interest-earning assets:
Loans                                $   229,258     $   9,879          4.31 %   $   249,657     $   11,173          4.48 %
Securities                                21,867           577          2.64 %        21,719            604          2.78 %
Federal Home Loan Bank of Chicago
stock                                      1,116            30          2.69 %         1,288             53          4.12 %
Other                                     19,602             3          0.01 %         4,688             49          1.05 %
Total interest-earning assets            271,843        10,489         
3.86 %       277,352         11,879          4.28 %
Non-interest-earning assets               30,707                                      25,971
Total assets                        $    302,550                                $    303,323

Interest-bearing liabilities:
Demand deposits                     $     61,442            37          0.06 %  $     49,837             29          0.06 %
Savings and NOW deposits                  82,191            69          0.08 %        74,453             62          0.08 %
Certificates of deposit                   78,629         1,158          1.47 %        94,481          1,733          1.84 %
Total interest-bearing deposits          222,262         1,264          0.57 %       218,771          1,824          0.83 %
Borrowings                                 5,215             7          0.14 %        23,300            398          1.71 %
Total interest-bearing
liabilities                              227,477         1,271         

0.56% 242,071 2,222 0.92% Non-interest bearing debts 48,249

          35,852
Total liabilities                        275,726                                     277,923
Total equity                              26,824                                      25,400
Total liabilities and equity        $    302,550                                $    303,323
Net interest income                                  $   9,218                                   $    9,657
Net interest rate spread (1)                                            3.30 %                                       3.36 %
Net interest-earning assets (2)     $     44,366                                $     35,281
Net interest margin (3)                                                 3.39 %                                       3.48 %
Average interest-earning assets
to interest-bearing liabilities           119.50 %                          

114.57%

————————————————– ——————————

The net interest rate differential represents the difference between the weighted average return (1) on interest-bearing assets and the weighted average rate of

interest bearing liabilities.

(2) Net interest-bearing assets represent the total of interest-bearing assets less

total interest-bearing liabilities.

(3) The net interest margin represents the net interest income divided by the average total

    interest-earning assets.


Rate/Volume Analysis

The following table presents the effects of changing rates and volumes on our
net interest income for the years indicated. The rate column shows the effects
attributable to changes in rate (changes in rate multiplied by prior volume).
The volume column shows the effects attributable to changes in volume (changes
in volume multiplied by prior rate). The total column represents the sum of the
prior columns. For purposes of this table, changes attributable to both rate and
volume, which cannot be segregated, have been allocated proportionately based on
the changes due to rate and the changes due to volume.



                                       44

————————————————– ——————————

  Table of Contents


                                         Year Ended June 30, 2021 vs.                Year Ended June 30, 2020 vs.
                                                     2020                                        2019
                                      Increase (Decrease)         Total           Increase (Decrease)          Total
                                            Due to               Increase               Due to               Increase
                                      Volume         Rate       (Decrease)       Volume          Rate       (Decrease)

                                                                      (In thousands)
Interest-earning assets:
Loans                               $    (879)     $  (415)    $    (1,294)    $    (508)     $     (81)    $     (589)
Securities                                   4         (30)            (26)            20            (7)             13
Federal Home Loan Bank of
Chicago stock                              (5)         (18)            (23)          (38)           (31)           (69)
Other                                        2         (49)            (47)            22           (28)            (6)
Total interest-earning assets            (878)        (512)         (1,390)         (504)          (147)          (651)

Interest-bearing liabilities:
Demand deposits                              7            1               8             2            (1)              1
Savings and NOW deposits                     6            1               7           (6)              2            (4)
Certificates of deposit                  (233)        (342)           (575)            73            254            327
Total interest-bearing deposits          (220)        (340)           (560)            69            255            324
Borrowings                                (25)        (366)           (391)         (415)          (360)          (775)
Total interest-bearing
liabilities                              (245)        (706)           (951)         (346)          (105)          (451)

Change in net interest income       $    (633)     $    194    $      (439)    $    (158)     $     (42)    $     (200)



Comparison of operating results for the years ended June 30, 2021 and 2020


General. Net income was $6.4 million for the year ended June 30, 2021, compared
to $1.1 million for year ended June 30, 2020. The increase in income was due to
an increase in non-interest income offset by a decrease in net interest income
and an increase in non-interest expense, described in more detail below.

Interest Income. Interest income decreased $1.4 million, or 11.7%, to $10.5
million for the year ended June 30, 2021 compared to $11.9 million for the year
ended June 30, 2020. Interest income on loans, which is our primary source of
interest income, decreased $1.3 million, or 11.6%, to $9.9 million for the year
ended June 30, 2021 compared to $11.2 million for the year ended June 30, 2020.
Our average yield on loans decreased 17 basis points to 4.31% for the year ended
June 30, 2021 from 4.48% for the year ended June 30, 2020, reflecting recent
decreases in market interest rates. The average balance of loans also decreased
by $20.4 million, or 8.2%, to $229.3 million for the year ended June 30, 2021
from $249.7 million for the year ended June 30, 2020.

Interest Expense. Interest expense decreased $951,000, or 42.8%, to $1.3 million
for the year ended June 30, 2021 compared to $2.2 million for the year ended
June 30, 2020, due to decreases in interest expense on borrowings and decreases
in interest rates paid on deposits.

Interest expense on borrowings decreased $391,000 to $7,000 for the year ended
June 30, 2021 from $398,000 for the year ended June 30, 2020. This decrease
resulted from the decreases in both the average balance of borrowings and the
average rate we paid on borrowings. The average balance of borrowings decreased
$18.1 million to $5.2 million for the year ended June 30, 2021 from $23.3
million for the year ended June 30, 2020, and the annualized average rate we
paid on borrowings decreased 157 basis points to 0.14% for the year ended June
30, 2021, from 1.71% for the year ended June 30, 2020. As described above,
increased levels of deposits and cash during the year ended June 30, 2021
reduced our reliance on borrowed funds. The decrease in rates paid on borrowings
reflects recent decreases in market interest rates.



Interest expense on deposits decreased $560,000, or 30.7%, to $1.3 million for
the year ended June 30, 2021 from $1.8 million for the year ended June 30, 2020.
Specifically, interest expense on certificates of deposit decreased $575,000, or
33.2%, to $1.2 million for the year ended June 30, 2021 from $1.7 million for
the year ended June 30, 2020. This decrease resulted from an decrease in the
annualized average rate we paid on certificates of deposit, which decreased 37

                                       45

————————————————– ——————————

Contents

basis points at 1.47% for the year ended June 30, 2021 by 1.84% for the year ended June 30, 2020. Lower rates paid on certificates of deposit reflect lower market interest rates during the year ended June 30, 2021.


Net Interest Income. Net interest income decreased $454,000, or 4.8%, to $9.1
million for the year ended June 30, 2021 from $9.5 million for the year ended
June 30, 2020, primarily as a result of the decreased interest income from
loans. Our net interest rate spread decreased by six basis points to 3.30% for
the year ended June 30, 2021 from 3.36% for the year ended June 30, 2020, and
our net interest margin decreased by nine basis points to 3.39% for the year
ended June 30, 2021 from 3.48% for the year ended June 30, 2020.

Provision for Loan Losses. Provisions for loan losses are charged to operations
to establish an allowance for loan losses at a level necessary to absorb known
and inherent losses in our loan portfolio that are both probable and reasonably
estimable at the date of the financial statements. In evaluating the level of
the allowance for loan losses, management analyzes several qualitative loan
portfolio risk factors including, but not limited to, management's ongoing
review and grading of loans, facts and issues related to specific loans,
historical loan loss and delinquency experience, trends in past due and
non-accrual loans, existing risk characteristics of specific loans or loan
pools, changes in the nature, volume and terms of loans, the fair value of
underlying collateral, changes in lending personnel, current economic conditions
and other qualitative and quantitative factors which could affect potential
credit losses. See "-Summary of Significant Accounting Policies" for additional
information.

After an evaluation of these factors, we recorded a $150,000 provision for
the year ended June 30, 2021 and $135,000 for the year ended June 30, 2020. Our
allowance for loan losses increased $59,000, or 4.4%, to $1.4 million at June
30, 2021 from $1.4 million at June 30, 2020. The allowance for loan losses to
total loans increased to 0.65% at June 30, 2021 from 0.57% at June 30, 2020, and
the allowance for loan losses to non-performing loans increased to 178.09% at
June 30, 2021 from 100.91% at June 30, 2020.

To the best of our knowledge, we have recorded all loan losses that are both
probable and reasonable to estimate at June 30, 2021. However, future changes in
the factors described above, including, but not limited to, actual loss
experience with respect to our loan portfolio, could result in material
increases in our provision for loan losses. In addition, the WDFI and the
Federal Deposit Insurance Corporation, as an integral part of their examination
process, will periodically review our allowance for loan losses, and as a result
of such reviews, we may have to adjust our allowance for loan losses.

Income other than interest. Information on non-interest income is as follows.





                                              Year Ended June 30,              Change
                                              2021            2020        Amount     Percent

                                                        (Dollars in thousands)
Service fees on deposits                   $       409     $      430    $   (21)      (4.9) %
Service fees on loans                              224            238        (14)      (5.9)
Gain on sale of mortgage loans                  12,033          5,120       6,913      135.0
Income on sale of uninsured products               503            321         182       56.7
Gain (loss) on sale of other real
estate owned                                        33            118        (85)     (72.0)
Other                                               25             20           5       25.0
Total non-interest income                  $    13,227     $    6,247    $  6,980      111.7 %




Gain on sale of mortgage loans (consisting solely of one- to four-family
residential real estate loans) increased as we earned a higher servicing release
premium in addition to selling $496.5 million of mortgage loans during the year
ended June 30, 2021 compared to $334.9 million of such sales during the year
ended June 30, 2020. Gain on sale of other real estate owned decreased as we
made one sale of other real estate during the year eneded June 30, 2021 in
excess of the principal balance and four sales of other real estate during
the year ended June 30, 2020 in excess of the principal balance.

                                       46

————————————————– ——————————

Contents

Non-interest charges. Information on non-interest charges is as follows.





                                            Year Ended June 30,              Change
                                             2021           2020        Amount     Percent
                                                       (Dollars in thousands)
Compensation and benefits                 $    10,000     $   8,503    $  1,497       17.6 %
Occupancy                                       2,121         1,969         152        7.7
Advertising                                       164           227        (63)     (27.8)
Data processing services                        1,067         1,096        (29)      (2.6)
FDIC assessment                                    90           112        (22)     (19.6)
Cost of operations of other real
estate owned                                      174         1,047       (873)     (83.4)
Insurance                                         116           156        (40)     (25.6)
Professional Fees                                 525           489          36        7.4
Other                                           1,652         1,078         574       53.2
Total non-interest income                 $    15,909     $  14,677    $  1,232        8.4 %




Compensation and benefits expense increased primarily as a result of the
increased commissions from greater loan volume. Advertising expenses decreased
due to the large volume of applications received without the need to advertise.
FDIC assessments decreased due to improved financial condition. Cost of
operations of other real estate owned decreased due to a large write off on
other real estate loans during the year ending June 30, 2020. Insurance expenses
decreased as we were able to renegotiate our contract and lock in a multi-year
term. Other expenses increased due the increase in sold loan commsion fees
offset due to the increased volume in loans sold, which are offset within
compensation and benefits once the loans are sold.

Income Tax Expense. We recognized no income tax expense or benefit for the years
ended June 30, 2021 and June 30, 2020 due to a full valuation allowance being
recorded against the Company's deferred tax assets.

Market risk management


General. Our most significant form of market risk is interest rate risk because,
as a financial institution, the majority of our assets and liabilities are
sensitive to changes in interest rates. Therefore, a principal part of our
operations is to manage interest rate risk and limit the exposure of our
financial condition and results of operations to changes in market interest
rates. Our Asset/Liability Management Committee, consisting of members of our
senior management, is responsible for evaluating the interest rate risk inherent
in our assets and liabilities, for determining the level of risk that is
appropriate, given our business strategy, operating environment, capital,
liquidity and performance objectives, and for managing this risk consistent with
the policy and guidelines approved by our board of directors. The board of
directors receives a monthly report from the Asset/Liability Management
Committee. We currently utilize a third-party modeling program, prepared on a
quarterly basis, to evaluate our sensitivity to changes in interest rates.

We have sought to manage our interest rate risk in order to minimize the exposure of our earnings and capital to changes in interest rates. The following are our main strategies for managing our interest rate risk:

? sell the majority of our long-term fixed rate secondary loans

Marlet;

? limit our dependence on non-core / wholesale funding sources;

? increase our volume of transaction deposit accounts; and

? diversify our loan portfolio by adding more commercial loans, which

   typically have shorter maturities and/or balloon payments.


                                       47

————————————————– ——————————

Contents

By following these strategies, we believe we are in a better position to respond to increases in market interest rates.

We do not engage in hedging activities, such as futures, options or swaps, or investing in high-risk mortgage derivatives, such as residual interest on guaranteed mortgage bonds, residual interest of real estate mortgage investment conduits or dismembered mortgage-backed securities.


Net Interest Income. We analyze our sensitivity to changes in interest rates
through a net interest income model. Net interest income is the difference
between the interest income we earn on our interest-earning assets, such as
loans and securities, and the interest we pay on our interest-bearing
liabilities, such as deposits and borrowings. We estimate what our net interest
income would be for a 12-month period. We then calculate what the net interest
income would be for the same period under the assumptions that the United States
Treasury yield curve increases or decreases instantaneously by 200 and 400 basis
point increments, with changes in interest rates representing immediate and
permanent, parallel shifts in the yield curve. A basis point equals
one-hundredth of one percent, and 100 basis points equals one percent. An
increase in interest rates from 3% to 4% would mean, for example, a 100 basis
point increase in the "Change in Interest Rates" column below.

The tables below show, as of June 30, 2021, calculating the estimated changes in our net interest income that would result from the designated immediate changes in United States Treasury yield curve.



                                   June 30, 2021
        Change in Interest Rates     Net Interest Income      Year 1 Change
           (basis points) (1)          Year 1 Forecast          from Level
                               (Dollars in thousands)
                  +400              $               11,198             25.97 %
                  +200                              10,160             14.29 %
                 Level                               8,889                 - %
                  -200                               8,284            (6.81) %
                  -400                               8,052            (9.42) %

————————————————– ——————————

(1) Assumes an immediate uniform change in interest rates at all maturities.



The table above indicates that at June 30, 2021, in the event of an
instantaneous parallel 200 basis point increase in interest rates, we would have
experienced a 14.29% increase in net interest income, and in the event of an
instantaneous 200 basis point decrease in interest rates, we would have
experienced an 6.81% decrease in net interest income. At June 30, 2020 in the
event of an instantaneous parallel 200 basis point increase in interest rates,
we would have experienced a 7.33% increase in net interest income, and in the
event of an instantaneous 200 basis point decrease in interest rates, we would
have experienced a 4.69% decrease in net interest income.

Net Economic Value. We also compute amounts by which the net present value of
our assets and liabilities (net economic value or "NEV") would change in the
event of a range of assumed changes in market interest rates. This model uses a
discounted cash flow analysis and an option-based pricing approach to measure
the interest rate sensitivity of net portfolio value. The model estimates the
economic value of each type of asset, liability and off-balance sheet contract
under the assumptions that the United States Treasury yield curve increases or
decreases instantaneously by 200 and 400 basis point increments, with changes in
interest rates representing immediate and permanent, parallel shifts in the
yield curve.

                                       48

————————————————– ——————————

Contents

The tables below show, as of June 30, 2021, the calculation of the estimated variations of our NEV that would result from the designated immediate variations of United States Treasury yield curve.


                                               At June 30, 2021
                                                                              NEV as a Percentage of Present
                                                                                   Value of Assets (3)
   Change in
  Rates (basis                       Estimated Increase (Decrease) in                            Increase
Interest points)     Estimated                      NEV                         NEV             (Decrease)
      (1)             NEV (2)           Amount               Percent         Ratio (4)       (basis  points)
                                            (Dollars in thousands)
      +400          $    54,555    $           6,557               13.66 %        19.11 %                  407
      +200               53,122                5,124               10.68 %        17.58 %                  254
       -                 47,998                    -                   - %        15.04 %                    -
      -200               38,872              (9,126)             (19.01) %        11.64 %                (340)
      -400               44,460              (3,538)              (7.37) %        13.00 %                (204)

————————————————– ——————————

(1) Assumes an immediate uniform change in interest rates at all maturities.

(2) NEV is the present value of the expected cash flows of the assets,

liabilities and off-balance sheet contracts.

(3) The present value of the assets represents the present present value of the entries

cash flow from interest-bearing assets.

(4) The NEV ratio represents the NEV divided by the present value of the assets.



The table above indicates that at June 30, 2021, in the event of an
instantaneous parallel 200 basis point increase in interest rates, we would have
experienced a 10.68% increase in net economic value, and in the event of an
instantaneous 200 basis point decrease in interest rates, we would have
experienced a 19.01% decrease in net economic value. At June 30, 2020 in the
event of an instantaneous parallel 200 basis point increase in interest rates,
we would have experienced a 14.97% increase in net economic value, and in the
event of an instantaneous 200 basis point decrease in interest rates, we would
have experienced a 6.41% decrease in net economic value.

Certain shortcomings are inherent in the methodologies used in the above
interest rate risk measurements. Modeling changes require making certain
assumptions that may or may not reflect the manner in which actual yields and
costs respond to changes in market interest rates. In this regard, the net
interest income and net economic value tables presented assume that the
composition of our interest-sensitive assets and liabilities existing at the
beginning of a period remains constant over the period being measured and
assumes that a particular change in interest rates is reflected uniformly across
the yield curve regardless of the duration or repricing of specific assets and
liabilities. Accordingly, although the net interest income and NEV tables
provide an indication of our interest rate risk exposure at a particular point
in time, such measurements are not intended to and do not provide a precise
forecast of the effect of changes in market interest rates on net interest
income and NEV and will differ from actual results. Furthermore, although
certain assets and liabilities may have similar maturities or periods to
repricing, they may react in different degrees to changes in market interest
rates. Additionally, certain assets, such as adjustable-rate loans, have
features that restrict changes in interest rates both on a short-term basis and
over the life of the asset.

Calculations of interest rate risk may also not reflect the fair value of financial instruments. For example, decreases in market interest rates can increase the fair value of our loans, deposits and borrowings.

Liquidity and capital resources


Liquidity describes our ability to meet the financial obligations that arise in
the ordinary course of business. Liquidity is primarily needed to meet the
borrowing and deposit withdrawal requirements of our customers and to fund
current and planned expenditures. Our primary sources of funds are deposits,
principal and interest payments on loans and securities, proceeds from the sale
of loans, and proceeds from maturities of securities. We also have the ability
to borrow from the FHLB and from U.S. Bank. At June 30, 2021, we had a $121.4
million line of credit with the FHLB, and had $5.0 million of borrowings
outstanding as of that date, and we also had a $5.0 million line of credit with
U.S. Bank, with no borrowings outstanding as of that date.

                                       49

————————————————– ——————————

Contents


While maturities and scheduled amortization of loans and securities are
predictable sources of funds, deposit flows and loan prepayments are greatly
influenced by general interest rates, economic conditions, and competition. Our
most liquid assets are cash and short-term investments including
interest-bearing demand deposits. The levels of these assets are dependent on
our operating, financing, lending, and investing activities during any given
period.

Our cash flows are comprised of three primary classifications: cash flows from
operating activities, investing activities, and financing activities. Net cash
provided by (used in) operating activities was $12.4 million and ($4.7) million
for the year ended June 30, 2021 and the year ended June 30, 2020. Net cash
provided by investing activities, which consists primarily of disbursements for
loan originations and the purchase of securities, offset by principal
collections on loans, and proceeds from maturing securities and pay downs on
securities, was $13.5 million and $26.2 million for the year ended June 30,
2021, and the year ended June 30, 2020. Net cash provided by (used in) financing
activities, consisting of activity in deposit accounts, borrowings, and advance
payments by borrowers for property taxes and insurance, was $10.4 million and
($14.0) million for the year ended June 30, 2021 and the year ended June 30,
2020.

We are committed to maintaining a strong liquidity position. We monitor our
liquidity position on a daily basis. We anticipate that we will have sufficient
funds to meet our current funding commitments. Based on our deposit retention
experience, current pricing strategy and regulatory restrictions, we anticipate
that a substantial portion of maturing time deposits will be retained, and that
we can supplement our funding with borrowings in the event that we allow these
deposits to run off at maturity.

At June 30, 2021, we exceeded all of our regulatory capital requirements, and we
were categorized as well capitalized at June 30, 2021. Management is not aware
of any conditions or events since the most recent notification that would change
our category.

Off-balance sheet arrangements and global contractual obligations


Commitments. As a financial services provider, we routinely are a party to
various financial instruments with off-balance-sheet risks, such as commitments
to extend credit and unused lines of credit. While these contractual obligations
represent our future cash requirements, a significant portion of commitments to
extend credit may expire without being drawn upon. Such commitments are subject
to the same credit policies and approval process accorded to loans we make. At
June 30, 2021, we had outstanding commitments to originate loans of $20.9
million, and outstanding commitments to sell loans of $41.0 million. We
anticipate that we will have sufficient funds available to meet our current
lending commitments. Time deposits that are scheduled to mature in one year or
less from June 30, 2021 totaled $32.1 million. Management expects that a
substantial portion of the maturing time deposits will be renewed. However, if a
substantial portion of these deposits is not retained, we may utilize FHLB
advances or other borrowings to offset projected portfolio loan production.

Contractual Obligations. In the ordinary course of our operations, we enter into
certain contractual obligations. Such obligations include data processing
services, operating leases for premises and equipment, agreements with respect
to borrowed funds and deposit liabilities.

Recent accounting positions


Please refer to Note 1 to the Financial Statements included as Item 8 in this
Annual Report for a description of recent accounting pronouncements that may
affect our financial condition and results of operations.

Impact of inflation and price changes


The financial statements and related data presented herein have been prepared in
accordance with U.S. GAAP, which requires the measurement of financial position
and operating results in terms of historical dollars without considering changes
in the relative purchasing power of money over time due to inflation. The
primary impact of inflation on our operations is reflected in increased
operating costs. Unlike most industrial companies, virtually all of the assets
and liabilities of a financial institution are monetary in nature. As a result,
interest rates, generally, have a more significant

                                       50

————————————————– ——————————

Contents


impact on a financial institution's performance than does inflation. Interest
rates do not necessarily move in the same direction or to the same extent as the
prices of goods and services.

ARTICLE 7A. Quantitative and qualitative information on market risk

For more information on market risk, see section 7. Management report and analysis of the financial position and results of operations.

© Edgar online, source Previews

Source link

]]>
http://woonsockethigh.org/teb-bancorp-management-report-and-analysis-of-the-financial-situation-and-operating-results-form-10-k/feed/ 0
Spanish bank Banco Santander and Swedish Skandinaviska Enskilda Banken agree to acquire SEB’s retail banking activities in Germany http://woonsockethigh.org/spanish-bank-banco-santander-and-swedish-skandinaviska-enskilda-banken-agree-to-acquire-sebs-retail-banking-activities-in-germany/ http://woonsockethigh.org/spanish-bank-banco-santander-and-swedish-skandinaviska-enskilda-banken-agree-to-acquire-sebs-retail-banking-activities-in-germany/#respond Thu, 11 Mar 2021 05:38:29 +0000 http://woonsockethigh.org/spanish-bank-banco-santander-and-swedish-skandinaviska-enskilda-banken-agree-to-acquire-sebs-retail-banking-activities-in-germany/

The Spanish bank Banco Santander and the Swedish Skandinaviska Enskilda Banken (SEB group) have agreed to the acquisition by Santander Consumer Bank of the retail banking activities of SEB in Germany for approximately 555 million euros.

Banco Santander said the acquisition, which will complement Santander’s leadership in consumer credit in Germany with a broader retail banking business, will almost double the number of branches in Santander Consumer Bank’s network. SEB’s retail network of 173 branches serves 1,000,000 customers, including 10,000 small and medium-sized businesses. Outstanding loans amounted to € 8.5 billion, 82% of which was mortgage loans. SEB’s retail activity has deposits of € 4.6 billion.

Santander President Emilio Botín said: “Germany is a central market for Santander. This acquisition is an important step towards achieving our goal of being a full-service retail bank in Europe’s largest market.


Santander Consumer Bank, a unit of Santander’s consumer credit division, is a leader in consumer credit in Germany. Thanks to agreements with more than 45,000 distributors, it is the leading independent provider of automobile financing and sustainable consumer loans, with 6 million customers and a 14% market share in installment loans. With customer loans of 22.315 billion euros at the end of 2009, Santander Consumer Bank contributed 385 million euros to the group’s net income in 2009, making it the sixth largest bank in Germany in terms of profits.

The transaction is expected to close in 2011 subject to relevant regulatory approvals.

The acquisition will have an impact of approximately 10 basis points (1%) on the capital base ratio of the Santander group, which stood at 8.8% as of March 31, 2010.

Banco Santander is a retail and commercial bank, based in Spain, present in 10 main markets. At the end of 2009, Santander was the largest bank in the euro area in terms of market capitalization and the fourth in the world in terms of profits. Founded in 1857 in Santander, Santander had 1,245 billion euros in funds under management at the end of 2009. Santander’s 170,000 employees serve its 92 million customers through 13,660 branches, more than any other international bank. It is the largest financial group in Spain and Latin America, with leading positions in the United Kingdom and Portugal. Santander has a large presence in Europe through its Santander Consumer Finance branch and in the northeastern United States through Sovereign Bancorp. In 2009, Santander recorded € 8.94 billion in net income group share.

Banco Santander has been run by the same family since its founding in 1857 and at its annual meeting of shareholders in the Spanish port of Santander last month Emilio Botín, the 75-year-old president, said Brazil’s profits would exceed domestic market bank profits for the first time this year. Botín is married to Paloma O’Shea, Marquis d’O’Shea and Santander is in the region of Spain where most Irish people can trace their origins.


Source link

]]>
http://woonsockethigh.org/spanish-bank-banco-santander-and-swedish-skandinaviska-enskilda-banken-agree-to-acquire-sebs-retail-banking-activities-in-germany/feed/ 0
A stock to buy as Canadian debt soars http://woonsockethigh.org/a-stock-to-buy-as-canadian-debt-soars/ http://woonsockethigh.org/a-stock-to-buy-as-canadian-debt-soars/#respond Thu, 11 Mar 2021 05:38:29 +0000 http://woonsockethigh.org/a-stock-to-buy-as-canadian-debt-soars/



Rising global debt could prove to be one of the biggest economic challenges of the 2020s. Global debt is set to hit a record high of over $ 257 trillion in the months to come after. have grown by $ 9 trillion in the first three quarters of 2019.

Individual domestic debt is also a major concern. MNP’s recent Consumer Debt Index showed that 50% of Canadian respondents said they were under $ 200 of not being able to cover their monthly bills. Almost half of those polled said they were not confident in their ability to cover their expenses without taking on more debt.

One of the reasons Goeasy (TSX: GSY) has thrived is that Canadian consumers are looking for alternatives in this difficult climate.

Goeasy offers rental of home furnishings, household appliances and electronics, as well as unsecured installment loans. In the third quarter, the company announced that its loan portfolio grew 38% year-over-year to $ 1.04 billion.

Investors can expect to see the company’s fourth quarter and full year 2019 results by mid-February. Goeasy predicts revenue growth of between 14% and 16% for fiscal 2020, and it expects its gross loan portfolio to reach between $ 1.3 billion and $ 1.4 billion by the end of next year. .

Goeasy stock is near a 52-week high, but still has a favorable price-to-earnings ratio of 15 and book value of 5. Stocks were up 84% year-on-year at the Jan. 28 close. The stock last paid a quarterly dividend of $ 0.31 per share, representing a modest return of 1.7%.


Source link

]]>
http://woonsockethigh.org/a-stock-to-buy-as-canadian-debt-soars/feed/ 0
Why Shinhan said no to Lotte Capital’s offer http://woonsockethigh.org/why-shinhan-said-no-to-lotte-capitals-offer/ http://woonsockethigh.org/why-shinhan-said-no-to-lotte-capitals-offer/#respond Thu, 11 Mar 2021 05:38:28 +0000 http://woonsockethigh.org/why-shinhan-said-no-to-lotte-capitals-offer/



Korea’s non-banking industry is cited as one of the few sectors that can weather the current unfavorable financial circumstances, such as slowing asset growth and rate hikes.

Specifically, the credit scores of non-bank lenders are expected to stay afloat, unlike other financial institutions such as brokerage houses, credit card companies, savings banks and life insurance companies. , according to Korea Ratings in December.

Such an optimistic outlook has sparked anticipation that Lotte Capital, the non-bank lending arm of Korean-Japanese retail conglomerate Lotte, would find the right buyer.

Lotte World Tower in Jamsil, southeast of Seoul (Lotte Property & Development)

Related:
Lottery Bids Lack Of Bidders: Was It All The Hype?
Lotte to sell financial units to boost the holding’s structure

As part of streamlining and regulatory compliance measures, Lotte is seeking to get rid of its shares in Lotte Capital, Lotte Card and Lotte non-life insurance by November of this year.

Adding to the appeal was the fact that unlike credit card companies or insurers, Lotte Capital’s new owner would be exempt from government scrutiny for regulatory approval.

The price tag for the acquisition of Lotte Capital – whose net income jumped nearly 60% in three years to 2017 – is estimated at 1.5 trillion won ($ 1.34 billion).

Despite a promising future, Korea’s premier banking entity Shinhan Financial Group refused to join the preliminary call for tenders which closed on February 12.

KB Financial Group was the only financial giant led by a commercial bank to make an offer. As widely anticipated, Hana Bank and Woori Bank have also pulled out of the race.

Details of the bid, as to how much KB wants to acquire, will remain confidential until the preferred bidder is selected in April or later.

The transaction will involve more than 40% of the capital of Lotte Capital held by the Korean holding company Lotte Corp. and Lotte Engineering & Construction.

The shares must be sold under Korea’s Monopoly Regulation and Fair Trade Act, which requires non-financial conglomerates with a holding company in Korea to sell financial units within two years of introducing a structure. of holding company. Lotte adopted the structure in November 2017.

Last minute withdrawal

Hours before the preliminary round, the cat was already out of the bag that Shinhan Financial had moved away from concerns about a “possible overpayment” in the high-profile deal managed by Citigroup Global Markets Korea Securities.

The reports came as a surprise, as Shinhan Financial, run by commercial bank subsidiary Shinhan Bank, had expressed strong intention to compete for Lotte Capital, and chose Merrill Lynch’s Seoul branch as its advisor.

Besides the risk of overpaying, Shinhan Financial appears to have battled fears of damaging its reputation, which can occur when an entity acquires a non-bank lender that offers consumer loans at high interest rates.

“Brand value is important to financial groups in Korea,” said Choi Chung-uk, analyst at Daishin Securities.

Lotte Capital’s sources of income come mainly from loans to businesses, individuals and the purchase of an installment car. In September, installment loans for car purchases and business loans accounted for 31.5% and 36.1% of the company’s outstanding loans, respectively, according to Korean rating agency NICE Investors Service. Consumer loans based on credit score, with relatively higher interest rates than the former, accounted for 29.9%.

Nearly half of those who take out personal loans borrow at an annual interest rate of more than 20%, according to Lotte.

“High interest rate loan products could have a negative effect on the (reputation) of financial groups, so that a lender is subject to changes in business model when the owner changes hands,” Choi said. .

One man’s poison, another’s meat

For KB Financial, however, reaching Lotte Capital means a much needed diversification of its business portfolio, especially as it lost its No.1 position in terms of net income to Shinhan Financial last year. .

For its subsidiary KB Capital, which mainly focuses on installment auto loans, it can establish itself as the second private finance company in Korea with the acquisition of Lotte Capital, which is the fourth with a total capital of 7,500. billion won.

Lotte Capital may also want to be taken over by KB Financial, as being owned by a private equity firm could weaken its credit ratings, industry observers have said.

Other bidders are MBK Partners, Hahn & Co. and Orix Private Equity Korea.

Under KB, Lotte Capital’s current AA- rating assigned by Korean rating agencies, including Korea Ratings, may remain unchanged. AA- is also the rating given to KB Capital.

The reverse will happen if a for-profit PEF takes over, said Kim Min-jung, analyst at Hanwha Investment & Securities.

“If a PEF becomes a major shareholder of Lotte Capital, opportunities for credit rating improvement are limited due to attempts to resell shares,” Kim wrote in a Feb. 12 note. “But if a financial group buys shares of Lotte Capital, there is still room for improvement.

KB Financial has yet to plan to partner with PEFs and form a consortium, the group spokesperson said.

By Son Ji-hyoung (consnow@heraldcorp.com)


Source link

]]>
http://woonsockethigh.org/why-shinhan-said-no-to-lotte-capitals-offer/feed/ 0
8 things that won’t hurt (phew!) Your credit http://woonsockethigh.org/8-things-that-wont-hurt-phew-your-credit/ http://woonsockethigh.org/8-things-that-wont-hurt-phew-your-credit/#respond Thu, 11 Mar 2021 05:38:28 +0000 http://woonsockethigh.org/8-things-that-wont-hurt-phew-your-credit/

Pay a credit card a month late and you can count on it to hurt your credit score. But there are more obscure areas you may wonder about: What if I marry someone whose credit is much worse than mine? Could my library fine from five years ago prevent me from getting approval for a car loan? Does denial of credit hurt my score?

We asked experts from the two biggest credit rating companies to share what consumers mistakenly thinks could be damaging their credit score. Here’s what Tommy Lee, Senior Scientist at FICO, and Jeff Richardson, Marketing and Communications Manager at VantageScore, had to say:

1. Check your own credit

If someone checks your credit because you applied for a loan or a credit card, this is called a “serious investigation”. These can reduce your score by a few points, but the impact wears off after six months. When you check your own credit, it is a “stealth survey” that doesn’t hurt your score. You will see both types listed on your credit reports.

Some research suggests a link between tracking your score and improving it, so be sure to check it out. It is good credit hygiene.

2. Getting married

You can share pots and pans, but you don’t share the credit. “Each of you has your own separate credit report, and only credit obligations that you have purchased are included in that report,” says Lee. For the best or for the worst, credit records stay separate when you get married. Your marital status and your spouse’s creditworthiness do not affect your credit score.

3. Bounce a check

The overdraft charges on your account are already quite high. You also don’t have to worry about an NSF check damaging your credit score. This is because the bank account information is not on your credit report. Your credit score is calculated from the information in your credit reports. If something isn’t on your credit reports, it can’t affect your score.

4. Library or traffic fines

Previously, if these fines were remitted to a collection agency, they could report it to the credit bureaus, Equifax, Experian, and TransUnion. Debt collection hurts credit scores, and many people have learned of forgotten fines by dropping their credit scores significantly. As part of a 2015 agreement between the three credit bureaus and the New York attorney general, credit reports no longer include debts that do not arise from a contract or payment agreement. This means that jaywalking or a long forgotten library book will not hurt your credit.

5. Pay a late utility bill

Paying a credit card bill 30 days past the due date will likely put a big bruise on your credit, as most card issuers report to the credit bureaus. Utility payments, however, are not routinely reported to credit bureaus. Late payment could leave you with no service, but credit problems are unlikely if you do eventually pay.

“If you don’t pay for a long time, these accounts go to a third-party collection agency that reports it to the credit bureaus,” says Richardson.

6. Being denied credit

Your credit rating may go down a bit, but only because your credit was checked when you applied, and this happens whether your application is approved or denied. A hard credit draw – the kind that happens when you apply for credit – can lower your score by a few points, but a denial of credit won’t show on your credit report or affect it.

7. Full payment of your credit card bill

There is a persistent myth that having a small balance on your credit card is better for your credit than paying off your balance in full each month.

The part of your credit limit that you use – called “Use of credit” – affects your credit score. But there’s no benefit in paying less than 100% of your statement balance – and paying the bill in full is best for your credit.

8. Losing your job

Losing a source of income can certainly make it harder to pay your bills, but your income doesn’t directly affect your score.

However, it can make it harder to get new credit, says Lee. “Lenders can look at many factors that are not on your credit report when making a credit decision, such as your income, the length of your current job, and the type of credit you are applying for. “

Even more important than knowing what won’t hurt your credit is knowing what will help you. build credit:

  • Pay all bills on time; payment history has the greatest effect on credit scores.

  • Don’t use more than 30% of your credit limits; the use of credit has the second most important impact.

  • Monitor your credit reports and dispute any score reduction errors.


Source link

]]>
http://woonsockethigh.org/8-things-that-wont-hurt-phew-your-credit/feed/ 0
Retire: plan to do it twice http://woonsockethigh.org/retire-plan-to-do-it-twice/ http://woonsockethigh.org/retire-plan-to-do-it-twice/#respond Thu, 11 Mar 2021 05:38:28 +0000 http://woonsockethigh.org/retire-plan-to-do-it-twice/

There is the retreat that looks like the ads: ride a bike, travel, enjoy the family.

And then there’s the one where you can’t go up the stairs anymore.

Most of us plan happily first, when our health is good and our energy is high. The second can be difficult to envision, when health falters and medical crises can change lives in an instant.

Yet focusing only on the active part of retirement can hurt your quality of life once you start to decline, which is why financial advisers also suggest that you look at how you will live in the later phase. Here is what you should consider for this second step.

Envision the future

Certified financial planner Dana Anspach of Scottsdale, Ariz. Doesn’t want her clients to prematurely abandon their homes or take other actions that may not be right for them. A couple she counseled, for example, moved to a continuing care community – a community that includes independent living, assisted living, and nursing home care – in the 1980s and moved back to a new home. year later because they couldn’t entertain or decorate their apartment the way they wanted. (They used their refunded deposit to buy a condo and had enough money to pay for home care.)

Anspach has also heard horror stories of elderly people who were left in dangerous conditions for too long until health crises pushed them into hospital – and left their families scrambling to meet the costs, to their care and what to do with the family home.

The key, the planners say, is to start thinking and talking about how you want to cope when your health starts to deteriorate.

“You have so many more options if you plan ahead and set the course of where you want to go,” says Danielle Howard, CFP in Basalt, Colorado.

Howard starts with the slightly easier decisions like who clients want to make medical and financial decisions if they become incapable. Then the discussion moves on to the more difficult topics – imagining life when they can’t climb the stairs or drive or handle daily activities such as cooking, cleaning, dressing or bathing.

Could they stay in their current accommodation? Should it be changed? Who will provide their care and how will they pay for it?

Anspach advises clients who do not have dependence insurance or family members willing to provide care to save their home equity for such expenses, rather than using it to increase their retirement income. (Home equity can be leveraged with Credit lines or reverse mortgages or by selling the house.)

If parents expect children to help them, Anspach says, they need to make sure the children are on board and the lives of those children are stable enough to provide care if the parents come closer.

“You don’t want to move across the country and have them transferred elsewhere,” says Anspach.

Consider the needs of caregivers

Parents should also think about how they can make things easier for their caregivers, says Ed Vargo, CFP in Cleveland. Vargo encouraged his in-laws to move from one house at 20 minutes to another at five minutes.

“That 20 minutes can turn into an hour round trip, and you can go there several times a day,” says Vargo.

His stepmother, Rose Forrester, understood this dynamic well. Before retiring three years ago, Forrester was a physiotherapist who provided home care to older patients – and a caregiver to her mother, who also lived 20 minutes away. Eventually, Forrester and her husband, Dan, moved the elderly woman into their home, where she lived for three years until her death.

Then the couple started talking about what they should do to make things easier for themselves and their children in the years to come. Neither wanted to leave their four-decade-old home, but both realized that its stairs and layout would be difficult to navigate one day.

“I could have stayed 10 more years, but in 10 years I knew I wouldn’t have the energy to move,” says Forrester. The couple moved into a single-story ranch-style home three years ago, when he was 68 and 66.

Vargo now talks with his father to get closer. The older man initially rejected the idea, but after a few years of talking he said he was considering it now.

“People tend to tell others what to do. It doesn’t really work, ”says Vargo. “Have a discussion, share your concerns, but be patient. “

Liz Weston is a Certified Financial Planner and Columnist at NerdWallet, a personal finance website, and author of “Your Credit Score”. E-mail: [email protected]. Twitter: @lizweston.

This article was written by NerdWallet and was originally published by The Associated Press.




Source link

]]>
http://woonsockethigh.org/retire-plan-to-do-it-twice/feed/ 0
How to Pay Off Parent PLUS Loans Faster http://woonsockethigh.org/how-to-pay-off-parent-plus-loans-faster/ http://woonsockethigh.org/how-to-pay-off-parent-plus-loans-faster/#respond Thu, 11 Mar 2021 05:38:27 +0000 http://woonsockethigh.org/how-to-pay-off-parent-plus-loans-faster/

The best way to pay off Parent PLUS loans faster is to pay more than the minimum each month. This is true for any type of student loan.

But Parent PLUS borrowers can also get rid of their loans faster by refinancing with a private lender. Refinancing can save you money and get you out of debt faster if you get a lower rate on a higher interest PLUS loan, go for a shorter repayment term, or do both.

Refinancing Parent PLUS Loans is not for everyone, including those with bad credit and borrowers who do not want to give up federal loan protection. Here are strategies for paying off PLUS parent loans faster if refinancing doesn’t make sense to you, as well as when to consider this option.

Make interest payments only during school

You don’t have to make PLUS loan payments while your child is in school or for six months after graduation. Late payments can make sense if you have other financial priorities, like getting a second child’s education, or if your child has agreed to pay off the debt for you.

Interest is still accrued during a carry forward of the PLUS Parent Loan, and is added to your balance once the loan goes into repayment. This will increase your future payments, potentially limiting your ability to pay extra for the loan. If you choose to delay full payments, try to pay only the interest for now.

On the PLUS parent loan deferral application, you can choose to pay interest only.

Stick to the standard repayment plan

If you do not defer PLUS loans, your first payment will be due 60 days after the loans are disbursed. You will automatically enter the repayment on the standard plan – 120 monthly payments over 10 years. Stick to this schedule if you can afford it.

You can pay less each month under others parent loan repayment options PLUS, such as extended repayment or income contingent repayment. But these plans lower your bills by increasing your repayment term, so standard repayment is the fastest option for paying off parent loans.

Share repayment responsibility

According to a 2019 report by private lender Sallie Mae, 50% of families expect children to at least share the responsibility for repaying their parents’ loans.

If you and your child are both going to contribute to Parent PLUS Loans, you should each consider paying a little more.

For example, let’s say you have $ 17,000 in PLUS loans. Each month, you owe around $ 200, based on current interest rates and a 10-year repayment term. If you and your child each contribute $ 125 each month, that additional $ 50 would reduce your repayment term by two and a half years.

If you can’t pay more each month, stagger your payments so that you each pay every two weeks. Doing bi-weekly payments, you will make an additional payment per year. This would pay off the debt 13 months earlier.

Should You Refinance Parent PLUS Loans?

To refinance PLUS loans, you will need strong credit – at least in the high 600% – or a co-signer who meets that threshold. Having enough income to cover your future payments is also a must, especially if you plan to shorten your repayment term to pay off your loans faster.

You will save the most money by refinance PLUS loans ASAP in your repayment term. Use this calculator to model your payments at different rates and shorter repayment terms to see what matches your repayment goals:


Source link

]]>
http://woonsockethigh.org/how-to-pay-off-parent-plus-loans-faster/feed/ 0
5 things to know about NASA credit cards http://woonsockethigh.org/5-things-to-know-about-nasa-credit-cards/ http://woonsockethigh.org/5-things-to-know-about-nasa-credit-cards/#respond Thu, 11 Mar 2021 05:38:27 +0000 http://woonsockethigh.org/5-things-to-know-about-nasa-credit-cards/

If the main thing you need to pay off your debt is a little space, a NASA Federal Credit Union credit card could be a star in your wallet.

These aren’t the most rewarding cards on the planet, but they can provide a bit of a break to reduce higher interest balances if you qualify for their best rates. Here’s what to know before take off.

1. There are several cards in this universe

The NASA Federal Credit Union offers a handful of credit cards, each with different features:

NerdWallet Rating

Learn more

NASA Federal Credit Union Platinum Advantage Rewards Credit Card
NerdWallet Rating

Learn more

  • the NASA Federal Platinum Advantage Rewards Credit Card is a rewards credit card that earns 1 point for every dollar spent. Points are redeemable for things like travel and merchandise. The card’s website notes that there are no travel blackout dates, which is ideal for those who travel frequently. With this card, you can also benefit from a relatively low interest rate, depending on your creditworthiness. The current APR is 9.40% to 17.99% variable APR. The annual fee for this version of the card is $ 0.

NASA Federal Credit Union Classic Credit Card
NerdWallet Rating

Learn more

  • the NASA Federal Classic Credit Card earns no cash back or rewards and is designed for those just getting started with credit cards. The card offers the following APR: 17.99% for 3 months on balance transfers, then the current APR of 12.40% – 17.99% variable APR. The annual membership fee is $ 0.

  • A secure version of the NASA Federal Classic Credit Card. A secure credit card, designed for people building or replenishing credit, requires a cash deposit equal to the credit limit of the card. The minimum deposit is $ 500; the maximum, $ 2,000.

  • A “Star Trek” branded rewards card. This card gives you 3 points per dollar spent on startrek.com, 2 points per dollar at gas stations and 1 point per dollar on all other purchases. Points are redeemable for cash back, travel and more. The annual membership fee is $ 39.

2. You don’t need a rocket scientist to apply

You don’t have to be an astronaut to qualify for any of these cards, but you must be a member of the NASA Federal Credit Union. You will be eligible for membership if:

  • You are employed (or retired) from NASA Headquarters, any NASA center or facility, or the National Academy of Sciences.

  • You work for or are a member of one of the partner companies of the credit union or associations.

  • You are related or live in the same household as a member of the credit union.

  • You are a member of the National Space Society. This is the route that applies to most people. You can get one year of free membership in the company through the credit union.

3. You won’t encounter a lot of charges in your orbit

As Michael Bay’s space comedy drama “Armageddon” reminded us, you don’t want to miss out on anything – except credit card charges, which you should totally ignore if you can. Fortunately, the three major NASA Federal Credit Union cards incur several charges directly into the airlock. The cards have:

  • No foreign transaction fees.

As mentioned, the “Star Trek” card has an annual fee, but it does not have a balance transfer or foreign transaction fee.

4. You can reduce your debt (but not with lightning speed)

the no balance transfer fees on these cards is a rare advantage. You may also be entitled to a relatively low APR on balances you transfer in the first 90 days.

Of course you may be able to find balance transfer cards which offer an even more attractive offer: no annual fees, no balance transfer fees and an introductory 0% APR on balance transfers. But some of these offers may require excellent credit; the NASA Federal Credit Union has options that don’t.

In addition, do not overlook the advantages inherent in joining a checkout: That is, lower fees overall, higher interest rates on deposits, and exceptional customer service.

5. There’s a spatial quirk in California

If you live in California, any NASA Federal Credit Union credit card you obtain will be considered an secure credit card, under the terms of the credit union.

The Credit Union notes that “the credit extended under this credit card account is secured by various personal property and money,” which may include property you purchased with the card or stocks you owned. with the credit union. In other words, you might not need to make a cash deposit, but the credit union will have some leeway if you don’t pay what you owe.

Depending on your needs and your financial situation, a secured credit card can be, in Mr. Spock’s words, illogical.


Source link

]]>
http://woonsockethigh.org/5-things-to-know-about-nasa-credit-cards/feed/ 0