LEAF Q3 Business Metrics Show Continued Improvement

AUG 3, 2011 - 9:37 am

Resource America (RAI) reported that since its capital raise announced in January, its LEAF Financial subsidiary has shown continued increases in key business metrics for the third fiscal quarter ended June 30, 2011 as compared to the second fiscal quarter ended March 31, 2011: Credit Applications – up 20%;
Lease Originations – up 23% and Approved Backlog – up 51%

RAI noted that its commercial finance assets under management at June 30, 2011 were $0.6 billion, down from $1.0 billion at June 30, 2010.

The following commentary on LEAF Financial and its lease origination and servicing subsidiary, LEAF Commercial Capital, was excerpted from the RAI news release:

At our LEAF Business Capital unit in Philadelphia, PA, we have recently signed three major private label program agreements to support the captive finance units of a multibillion dollar industrial control and HVAC manufacturer, a multi-line industrial distributor to support their telephony product lines and a market leading distributor of medical products for physician based practices.

At our Moberly, MO, based LEAF Dealer Solutions unit, during the third fiscal quarter ended June 30, 2011, we added 104 new dealers as active users of our leasing programs and 116 additional dealers have enrolled in our enhanced lease origination online portal MyLeaseLink.com. The portal allows dealers to manage their financing transactions in real time.

Expanded Senior Credit: In April 2011, Wells Fargo Lender Finance(Wells) joined as a participant in LEAF’s revolving senior debt facility arranged and managed by Guggenheim. This additional $60 million commitment from Wells will be used by LEAF to fund new lease originations. LEAF is in discussion to expand this facility further over the coming quarters.

Securitizations: DBRS (DBRS.com) on July 16, 2011 reaffirmed the credit rating of the five securitization transactions totaling $700 million that LEAF arranged for its funds since May 2010.

To read the full text of the Resource America news release: click here.

Like this story? Begin each business day with news you need to know! Click here to register now for our FREE Daily E-News Broadcast and start YOUR day informed!