23 JulAnnouncing a New Source for Reliable, Low Cost Retail Business Cash …

Get affordable, no credit check merchant account cash advance today, simply by completing an online form. Merchant cash advance rates are competitive and funds are made available to approved applicant businesses in less than a week.

Nationwide (PRWEB) July 22, 2014

Theres never been a more straightforward and easy qualification retail business cash advance available to small businesses. With these merchant account cash advance loans, companies can access working capital without a credit check. Competitive merchant cash advance rates are available through this bad credit quick business cash advance program.

The five largest banks in the nation, recently surveyed by news media, state new federal regulations are the primary reason for the high percentage of small business loan rejections. Citing Frank-Dodd, along with previously enacted compliance laws, financing institutions deny commercial loan applications at historical levels. Banks undergo several stress tests each year, a result of the economic meltdown which gripped the nation beginning in mid 2008. Now, those same institutions hold billions of dollars in their reserves.

Small business owners with near perfect personal credit files and high company credit scores are routinely denied financing. Banks now require more than good credit. Small business loan approval requires substantial collateral and full disclosure of all personal and company assets and liabilities. In addition, applicant businesses must provide years of tax returns and scores of financial documents for verification. Personal guarantee notes are common and lengthy applications make funding complex.

Banks assert that hundreds of millions of dollars in defaulted consumer loans, ranging from lines of credit to mortgages, to auto loans, require heavier application scrutiny. Traditional banks are not providing access to working capital, still reeling from such large losses. Under pressure from congressional members to offer more financing options, banks are resisting.

However, innovative alternative lenders are filling the void. With new technology and easier lending standards, low cost loans are available without a credit check. No collateral is required, and there are no application fees. Application approvals stand at 98 percent and approval notification comes in just 24 hours. Funds are made available through direct deposit in three to five business days. Funds can be used for any purpose and rates are competitive. Payments are based on a percentage, rather than a fixed dollar amount. Loan amounts range from $5,000 up to $500,000.

BusinessCashAdvanceGuru.com expanded nationwide services are now available in the following geographical areas:

Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Washington DC, West Virginia, Wisconsin, and Wyoming.

About Business Cash Advance Guru

http://www.BusinessCashAdvanceGuru.com is a division authorized by TieTechnology, LLC. Business Cash Advance Guru’s merchant cash advance division specializes in helping small business owners realize their dreams. That’s why we created our merchant cash advance program in 2003, and continue to be a merchant cash advance leader in the industry, offering the most flexible payment options and the lowest interest rates and in the business.

About TieTechnology, LLC

http://www.tietechnology.com specializes in small business service based solutions for businesses. Services provided by TieTechnology LLC, include: merchant credit card processing, business service telecommunications, and web based visibility marketing. The advantages of doing business with TieTechnology is their commitment to customer service excellence and their offering of one stop solutions to all business to business service product needs for the customers’ convenience. To learn more about their wide assortment of business services and their specialized divisions, see the following links and descriptions.

For the original version on PRWeb visit: http://www.prweb.com/releases/retail-busines-cash/advance-loans/prweb11992003.htm

23 JulFlagstar Reports Second Quarter 2014 Results

TROY, Mich., July22, 2014 /PRNewswire/ — Flagstar Bancorp, Inc. (NYSE: FBC) (the Company), the holding company for Flagstar Bank, FSB (the Bank), today reported a second quarter 2014 net income applicable to common stockholders of $25.5 million, or $0.33 per (diluted) share, as compared to net loss of $78.9 million in the first quarter 2014, or $1.51 loss per share, and net income of $65.8 million in the second quarter 2013, or $1.10 earnings per (diluted) share. Book value per common share increased to $19.90 at June30, 2014, as compared to $19.29 at March31, 2014 and $17.66 at June30, 2013.

Our second quarter results reflect the continued enhancements, that we began in 2013, to put the bank in a position to be profitable, said Sandro DiNello, the Companys President and Chief Executive Officer. During the second quarter, net interest income increased to $62.4 million and net gain on loan sales increased to $54.8 million, while noninterest income increased to $102.5 million and noninterest expense decreased to $121.4 million.

Mr. DiNello continued, We continue to focus on controlling our noninterest expense in the current mortgage environment and are managing expenses in order to be profitable in any origination environment. While we are pleased with these results, this quarter brought two changes that impacted pretax income by approximately $20 million, albeit favorably. Overall, we are encouraged by our progress, especially as it relates to our growth in net interest income and net gain on sale income, as well as our continued expense discipline.

Net Interest Income

Second quarter 2014 net interest income increased to $62.4 million, as compared to $58.2 million for the first quarter 2014 and $47.1 million for the second quarter 2013. Of the $4.2 million net increase from the prior quarter, $4.6 million was attributable to an increase in volume of average net interest earning assets. This increase was partially offset by higher funding costs. Net interest margin for the Bank increased to 3.06 percent for second quarter 2014, as compared to 3.05 percent for the first quarter 2014 and 1.72 percent for the second quarter 2013.

Interest income increased by $5.6 million from the first quarter 2014, primarily driven by loan growth. The average yield on interest-earnings assets increased slightly to 3.43 percent for the second quarter 2014, as compared to 3.39 percent for the first quarter 2014 and 3.01 percent for the second quarter 2013.

Interest expense increased slightly from the first quarter 2014, primarily from deposit growth. The average cost of funds for the second quarter 2014 was 0.56 percent, as compared 0.52 percent for the first quarter 2014 and 1.58 percent for the second quarter 2013. The average cost of total deposits increased to 0.53 percent for the second quarter 2014, as compared to 0.46 percent for the first quarter 2014 and decreased from 0.75 percent for the second quarter 2013. This increase in cost was primarily attributable to a slightly more aggressive deposit pricing strategy.

Noninterest Income

Second quarter 2014 noninterest income increased to $102.5 million, as compared to $75.0 million for the first quarter 2014 and $220.0 million for the second quarter 2013.

Other noninterest income increased to $7.6 million for the second quarter 2014, as compared to a loss of $14.5 million for the first quarter 2014 and decreased from income of $44.8 million for the second quarter 2013. The increase from the prior quarter was primarily due to negative fair value adjustments in the first quarter 2014.

Loan fees and charges increased to $25.3 million for the second quarter 2014, as compared to $12.3 million for the first quarter 2014 and decreased from $29.9 million for the second quarter 2013. The increase from the prior quarter was primarily due to an unanticipated $10.0 million benefit from a contract renegotiation.

Second quarter 2014 net gain on loan sales increased to $54.8 million, as compared to $45.3 million for the first quarter 2014 and decreased from $144.8 million for the second quarter 2013. The increase from the prior quarter primarily reflects an increase in fallout-adjusted mortgage rate lock commitments. The benefit from the increase in fallout adjusted mortgage rate lock commitments was partially offset by a margin decrease. The net gain on loan sale margin (based on the amount of fallout-adjusted locks) decreased to 0.82 percent for the second quarter 2014, as compared to 0.93 percent for the first quarter 2014 and 1.47 percent for the second quarter 2013, due to a reduction in production base margin and hedge costs.

Gain on loan sale income is driven by rate lock commitments net of estimated cancellations, or fallout-adjusted locks, as the Company uses fair value accounting to account for the majority of its mortgage business. Fallout-adjusted locks were $6.7 billion for the second quarter 2014, a 37.9 percent increase from the first quarter 2014.

Net transaction costs on sales of mortgage servicing rights (MSRs) decreased to an expense of $2.7 million for the second quarter 2014, as compared to income of $3.6 million for the first quarter 2014 and an expense of $4.3 million for the second quarter 2013. The decrease from the prior quarter was primarily due to the first quarter 2014 release of holdback reserves on sales completed in prior periods.

Loan administration income (including off-balance sheet hedges of mortgage servicing rights) decreased to $13.9 million for the second quarter 2014, as compared to $19.6 million for the first quarter 2014 and $36.2 million for the second quarter 2013. The decrease was due to negative mortgage servicing rights fair value adjustments.

Noninterest Expense

Noninterest expense was $121.4 million for the second quarter 2014, as compared to $139.3 million for the first quarter 2014 and $174.4 million for the second quarter 2013.

Compensation and benefits decreased to $55.2 million for the second quarter 2014, as compared to $65.6 million for the first quarter 2014 and $70.9 million for the second quarter 2013. The decrease from the prior quarter was primarily due to the effect of previously announced staff reductions that occurred during the first quarter 2014.

Second quarter 2014 legal and professional expenses decreased to income of $2.1 million, as compared to an expense of $13.9 million for the first quarter 2014 and an expense of $16.4 million for the second quarter 2013. The decrease from the prior quarter was primarily driven by a $10.0 million change due to the estimated timing of payments impacting the fair value of the liability associated with the Department of Justice settlement.

Credit-Related Costs and Asset Quality

At June30, 2014, the Companys allowance for loan losses declined to $306.0 million, as compared to $307.0 million at March31, 2014 and increased from $243.0 million at June30, 2013. At June30, 2014, the ratio of the allowance for loan losses to non-performing loans held-for-investment was 263.1 percent, as compared to 286.9 percent at March31, 2014 and increased from 94.2 percent at June30, 2013.

Provision for loan losses decreased to $6.2 million for the second quarter 2014, as compared to $112.3 million for the first quarter 2014 and $31.6 million for the second quarter 2013. The reduction was due in part to an increase during the first quarter 2014 related to increases in the loss emergence period on its residential loan portfolio and losses incurred due to reset risk on interest-only loans.

Net charge-offs for the second quarter 2014 decreased to $7.2 million, as compared to $12.3 million for the first quarter 2014 and $78.6 million for the second quarter 2013. The decrease from the prior quarter was primarily driven by a decrease in residential first mortgage loan charge-offs.

Total non-performing loans held-for-investment were $120.2 million at June30, 2014, an increase as compared to $110.7 million at March31, 2014 and a decrease from $257.9 million at June30, 2013. The increase from the prior quarter was primarily driven by an increase in non-performing residential first mortgage loans. The ratio of non-performing loans held-for-investment to loans held-for-investment remained at 2.76 percent for both June30, 2014 and March31, 2014, as compared to 5.74 percent at June30, 2013.

Real estate-owned and other non-performing assets increased slightly to $31.6 million at June30, 2014, as compared to $31.1 million at March31, 2014 and decreased from $86.4 million at June30, 2013.

The Company maintains a representation and warranty reserve on the balance sheet, which reflects an estimate of losses that may occur both on loans that have been sold or securitized into the secondary market and those currently in the repurchase pipeline, primarily with Fannie Mae and Freddie Mac. At June30, 2014, the representation and warranty reserve was $50.0 million, as compared to $48.0 million at March31, 2014 and $185.0 million at June30, 2013. The provisions related to the representation and warranty reserve – change in estimate was $5.2 million for the second quarter 2014, as compared to a benefit of $1.7 million for the first quarter 2014 and a provision of $28.9 million for the second quarter 2013. Representation and warranty reserve – change in estimate increased $6.9 million from the first quarter 2014, which reflects the estimated impact of changes in the fair value of repurchased loans at time of repurchase.

Asset resolution expense, which includes expenses associated with foreclosed properties (including the foreclosure claims in process with respect to government insured loans for which the Bank files claims with the Department of Housing and Urban Development (HUD)) was $17.9 million for the second quarter 2014, as compared to $11.5 million for the first quarter 2014 and $15.9 million for the second quarter 2013. The increase from the prior quarter primarily resulted from higher expenses related to repurchased government insured loans.

Balance Sheet and Funding

Total assets increased to $9.9 billion at June30, 2014, as compared to $9.6 billion at March31, 2014. The increase from the prior quarter was due to an 8.4 percent increase in loans held-for-investment, primarily from warehouse and commercial and industrial loans. Investment securities available-for-sale also increased as cash was invested from the sale of residential first mortgage jumbo loans.

Total deposits increased to $6.6 billion at June30, 2014, as compared to $6.3 billion at March31, 2014. The increase from the prior quarter was primarily due to an increase in branch retail savings accounts, which increased $186.4 million.

At June30, 2014, the Company had $202.5 million of cash on hand and interest-earning deposits, as compared to $219.2 million at March31, 2014. The Bank maintains a line of credit with the Federal Home Loan Bank of Indianapolis (FHLBI) under which borrowings are collateralized by residential first mortgage loans and other assets of the Bank. At June30, 2014, the Bank had borrowings outstanding from the FHLBI of $1.0 billion and an additional $1.8 billion of collateralized borrowing capacity available at the FHLBI. The Company also had $1.6 billion of investment securities available-for-sale at June30, 2014, which could serve as a further source of liquidity.


The Banks regulatory capital ratios remain above current regulatory quantitative guidelines for well-capitalized institutions. At June30, 2014, the Bank had a Tier 1 leverage ratio of 12.52 percent, as compared to 12.44 percent at March31, 2014. At June30, 2014, the Company had an equity-to-assets ratio of 13.95 percent.

Beginning January 2015, the Company and the Bank each becomes subject, on a phased-in basis, to the Basel III regulatory capital requirements that replace the current capital requirements. Assuming that the Basel III requirements were fully applicable at June30, 2014, the Banks pro forma Basel III Tier 1 leverage ratio would be 11.44 percent at June30, 2014 (see Non-GAAP reconciliation).

Senior Management Addition

The Company is pleased to announce that Stephen Figliuolo recently joined the Bank and will serve as Chief Risk Officer, subject to regulatory approval. Mr. Figliuolo will be responsible for managing the office of Enterprise Risk Management, which oversees credit risk, operations risk, modeling and analytics, mortgage risk and loan review operations.

Earnings Conference Call

As previously announced, the Companys quarterly earnings conference call will be held on Wednesday, July23, 2014 from 11 am until noon (Eastern).

It is preferred that questions are emailed in advance to investors@flagstar.com, or they may be asked during the conference call.

To join the call, please dial (866) 952-1908 toll free or (785) 424-1827, and use passcode: 222687. Please call at least 10 minutes before the call is scheduled to begin. A replay will be available for five business days by calling (888) 348-4629 toll free or (719) 884-8882, using passcode: 222687.

The conference call will also be available as a live audio cast on the Investor Relations section of flagstar.com. It will be archived on that site and will be available for replay and download. A slide presentation accompanying the conference call will also be posted on the site.

About Flagstar

Flagstar Bancorp, Inc. (Flagstar) is the holding company for Flagstar Bank, FSB, a full-service financial institution offering a range of products and services to consumers, businesses, and homeowners. With $9.9 billion in total assets at June30, 2014, Flagstar is the largest bank headquartered in Michigan. Flagstar operates 106 banking centers, all of which are located in Michigan and 32 home lending centers in 18 states, which primarily originate one-to-four family residential first mortgage loans. Originating loans nationwide, Flagstar is one of the leading originators of residential first mortgage loans. For more information, please visit flagstar.com.


This press release contains both financial measures based on accounting principles generally accepted in the United States (GAAP) and non-GAAP based financial measures, which are used where management believes it to be helpful in understanding the Companys results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in this press release. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements, by their nature, involve estimates, projections, goals, forecasts, assumptions, risks and uncertainties that are difficult to predict and could cause actual results or outcomes to differ materially from those expressed in a forward-looking statement. Forward-looking statements contained in this press release and any information related to expectations about future events or results are based upon information available to the Company as of the date hereof. Forward-looking statements can be identified by such words as anticipates, intends, plans, seeks, believes, expects, estimates, and similar references to future periods. Examples of forward-looking statements include, but are not limited to, statements made regarding the Companys current expectations, plans or forecasts of its core business drivers, credit related costs, asset quality, capital adequacy and liquidity, the implementation of the Companys business plan and growth strategies, the suspension of dividend payments on preferred stock, the deferral of interest payment on trust preferred securities, the result of improvements to the Companys servicing processes, the Companys strategy for its servicing business and other similar matters. Although we believe that these forward-looking statements are based on reasonable estimates and assumptions, they are not guarantees of future performance and are subject to known and unknown risks, uncertainties, contingencies, and other factors. Accordingly, we cannot give you any assurance that our expectations will in fact occur or that actual results will not differ materially from those expressed or implied by such forward-looking statements. We caution you not to place undue reliance on any forward-looking statement and to consider all of the following uncertainties and risks, as well as those more fully discussed in the Companys filings with the Securities and Exchange Commission (SEC), including, but not limited to, our Form 10-K and Forms 10-Q: volatile interest rates that impact, among other things, the mortgage banking business, our ability to originate loans and sell assets at a profit, prepayment speeds and our cost of funds; changes in regulatory capital requirements or an inability to achieve or maintain desired capital ratios; actions of mortgage loan purchasers, guarantors and insurers regarding repurchases and indemnity demands and uncertainty related to foreclosure procedures; uncertainty regarding pending and threatened litigation; our ability to control credit related costs and forecast the adequacy of reserves; the imposition of regulatory enforcement actions against us; our compliance with the Supervisory Agreement with the Board of Governors of the Federal Reserve System and the Consent Order with the Office of the Comptroller of the Currency. Except to the extent required under the federal securities laws and the rules and regulations promulgated by the SEC, the Company undertakes no obligation to update any such statement to reflect events or circumstances after the date on which it is made.

23 JulBanc of California Selects nCino

nCino, Inc., the leader in secure, cloud-based operating solutions to
the financial services industry, announced today that Banc of California
has selected its Bank
Operating System to automate and standardize commercial and SBA

to Tweet: @BancofCal selects @nCino to advance #SBA,
commercial lending through #cloud #banking

With more than $4 billion in assets, Banc
of California has over 80 locations throughout the state. Its
specialized product mix and unique niche of business borrowers meant a
traditional LOS would disjoint the loan process and make a messy paper
trail. As an alternative, nCino’s Bank Operating System provides a
single platform for lead generation through to origination, funding and
reporting – regardless of the loan type. It completely automates all
document workflows, leading to a more productive and streamlined lending
environment while also granting the bank increased transparency into
loan production. With the CRM, monitoring and reporting capabilities,
Banc of California can see the maturity of each loan and its relevance
to the portfolio’s performance over time, enabling its lenders to be
better relationship managers for proactive outreach about renewals, new
products and more.

Jade Bautista, director of operations and strategy for Banc of
California’s Financial Institutions Group, explained, “Operationally nCino
gives us everything we need. Its dynamic Bank Operating System pushes
the boundaries for exceptional lending standards and provides us the
comfort to be creative and offer unique products while not having to be
confined by platform limitations. nCino provides us with the foundation
to meet our commitments and offer the best banking services throughout

nCino provides financial institutions with a cloud-based Bank Operating
System that provides a deeper level of clarity to retail, consumer and
commercial loan production. It is fully customizable and scalable, able
to offer a comprehensive borrower perspective based on the definitive
needs of any bank or credit union.

“Banc of California faced the common challenge of needing a platform
that could support its particular product mix and concentrated borrower
segment,” said Pierre NaudÃ, CEO, nCino. “Our Bank Operating System will
fundamentally help its lenders execute quality loans while delivering
significant returns in quicker funding and reduced operating costs. The
view they now have into loan management should enable smarter decisions
in forecasts, pricing and goal setting.”

About nCino

Wilmington, NC-based nCino, Inc. is the leader in cloud-based bank
operating solutions to the financial services industry. Through its
flagship Bank Operating System solution, nCino leverages the power of
the Salesforce Platform to provide small- to mid-sized financial
institutions with superior transparency and clarity into their existing
loan production pipelines, portfolios and operating efficiencies across
all business lines, resulting in increased profitability, productivity
gains and regulatory compliance.

For more information, visit www.ncino.com.

For media and press inquiries email [emailprotected].

The NCINO mark is a federally registered trademark of nCino, Inc. All
rights reserved.

About Banc of California, Inc.

Since 1941, Banc of California, Inc. (NYSE: BANC) through its banking
subsidiary Banc of California, National Association, has provided
banking services and home lending to private businesses, entrepreneurs
and homeowners in California and the West. Today, Banc of California,
Inc. has over $4 billion in consolidated assets and more than 80 banking
locations. For more information, please visit www.bancofcal.com.

23 JulNSW economy gaining momentum

Deloitte Access Economics economist Chris Richardson agrees, saying NSW is getting its act together with low interest rates generating better news in both retailing and housing construction, as well as better times in the states finance sector.

However, in his latest Business Outlook he says Western Australia, Queensland and the Northern Territory still have the economic growth bragging rights for now.

Thats because flagging mining investment is being matched by the export phase of the resources boom.

CommSecs quarterly study assesses the states and territories on economic growth, retail spending, equipment investment, unemployment, construction work done, population growth, housing finance and dwelling commencements.

The results show jurisdictions fall into three camps.

Western Australia remains Australias best performing economy followed by the Northern Territory and NSW. The next grouping is Queensland, Victoria and the ACT, while the final grouping is South Australia and Tasmania.

While the expectation was that Western Australia would slip down the economic rankings … (it) still leads the performance rankings on two of the indicators and is second or third on five other indicators, Mr James said.

The ACT is holding up at this stage, despite the expected impact from the federal budget cuts.

Mr James said the nations capital is being underpinned by low unemployment but weak confidence is constraining retail and business spending.

Mr Richardson said the good news was that the May budget didnt add many more public servant cuts.

But the bad news is that public service numbers will fall from here, he said.


(strength/weakness based on eight economic indicators)

WA – home lending/unemployment

NT – economic growth/home lending

NSW – population growth/construction work

Qld – business investment/population growth

Vic – home lending/economic growth

ACT – unemployment/business investment

SA – construction work/unemployment

Tas – Retail spending/various





Guernsey, 22 July 2014 – As a consequence of the Alternative Investment Fund Manager directive#xA0; which comes into force on the 22nd July 2014, Volta Finance Limited (the Company or Volta Finance or Volta) confirms the formal appointment of AXA IM Paris as the Alternative Investment Fund Manager (AIFM) to the Company. #xA0;This means that AXA IM Paris will continue to be responsible for the management of the Companys investment portfolio, subject to the overall control by the Board.

In relation with the AIFM directive, Volta appointed State Street Custody Services (Guernsey) Limited as its new depositary/custodian, replacing Deutsche Bank AG, London Branch.



Volta Finance Limited is incorporated in Guernsey under the Companies (Guernsey) Laws, 2008 (as amended) and listed on NYSE Euronext Amsterdam. Its investment objectives are to preserve capital and to provide a stable stream of income to its shareholders through dividends. For this purpose, it pursues a multi-asset investment strategy targeting various underlying assets. The assets that the Company may invest in either directly or indirectly include, but are not limited to: corporate credits; sovereign and quasi-sovereign debt; residential mortgage loans; automobile loans. Volta Finance Limiteds basic approach to its underlying assets is through vehicles and arrangements that provide leveraged exposure to some of those underlying assets.

Volta Finance Limited has appointed AXA Investment Managers Paris, an investment management company with a division specialised in structured credit, for the investment management of all its assets.


AXA Investment Managers (AXA IM) is a multi-expert asset management company within the AXA Group, a global leader in financial protection and wealth management. AXA IM is one of the largest European-based asset managers with #x20AC;547 billion in assets under management as of the end of#xA0;December 2013. AXA IM employs approximately 2,143 people around the world and operates out of#xA0;21 countries.


Company Secretary and Administrator
Sanne Group (Guernsey) Limited
+44 (0) 1481 739811

State Street Custody Services (Guernsey) Limited

For the Investment Manager
AXA Investment Managers Paris
Serge Demay
+33 (0) 1 44 45 84 47


This press release is for information only and does not constitute an invitation or inducement to acquire shares in Volta Finance. Its circulation may be prohibited in certain jurisdictions and no recipient may circulate#xA0;copies of this document in breach of such limitations or restrictions.

This document is not an offer for sale of the securities referred to herein in the United States or to persons who are US persons for purposes of Regulation S under the US Securities Act of 1933, as amended (the Securities Act), or otherwise in circumstances where such offer would be restricted by applicable law.#xA0; Such securities may not be sold in the United States absent registration or an exemption from registration from the Securities Act.#xA0; The company does not intend to register any portion of the offer of such securities in the United States or to conduct a public offering of such securities in the United States.

This communication is only being distributed to and is only directed at (i) persons who are outside the United Kingdom or (ii) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the Order) or (iii) high net worth companies, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as relevant persons).#xA0; The securities referred to herein are only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with, relevant persons.#xA0; Any person who is not a relevant person should not act or rely on this document or any of its contents.

Past performance cannot be relied on as a guide to future performance.


This press release contains statements that are, or may deemed to be, forward-looking statements. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms believes, anticipated, expects, intends, is/are expected, may, will or should. They include the statements regarding the level of the dividend, the current market context and its impact on the long-term return of Voltas investments. By their nature, forward-looking statements involve risks and uncertainties and readers are cautioned that any such forward-looking statements are not guarantees of future performance. Volta Finances actual results, portfolio composition and performance may differ materially from the impression created by the forward-looking statements. Volta Finance does not undertake any obligation to publicly update or revise forward-looking statements.

Any target information is based on certain assumptions as to future events which may not prove to be realised. Due to the uncertainty surrounding these future events, the targets are not intended to be and should not be regarded as profits or earnings or any other type of forecasts. There can be no assurance that any of these targets will be achieved. In addition, no assurance can be given that the investment objective will be achieved.


22 JulGroup, Cornerstone form Group Mortgage

Fort Collins-based The Group real estate and Cornerstone Home Lending are partnering to add mortgage services to Group offices.

Group Mortgage, a joint venture between the Northern Colorado real-estate company and home lender, will bring mortgage loan officers to each office operated by The Group, according to a release. The in-house officers will be able to assist buyers and agents through the mortgage process.

“This partnership represents each organization’s strong commitment to provide the highest level of expertise to our mutual clients.” Cornerstone Mountain West Division President Gene Humphries said in a written release. “We are thrilled to provide this opportunity to Northern Colorado home buyers.”

Information: www.houseloan.com and www.thegroupinc.com.

22 JulWhy Walmart is a Better Investment than Amazon

At its core, investing is about generating the highest return possible for a given risk level. Equity investors generate return from 2 sources: dividends and capital appreciation. Capital appreciation comes from either multiple expansion from changes in the perception of a businesses’ future cash flows, or from real business growth.

Valuation Ratios, Perception, amp; Reality

Changes in perception of a businesses’ future cash flow potential do not reflect the actual underlying growth of a business. They are merely an expectation of what underlying growth will be in the future. We can’t know the cash flows of a business down the line, but we can guess. When analyzing the growth of a business, it is critical to adjust for expectation changes. Looking at stock prices alone distorts one’s view of the actual underlying growth of a business because expectation changes affect share prices.

Real business growth can be measured by a variety of metrics; growth in earnings, revenue, book value, assets, EBIT, or EBIDTA are all popular choices. The higher up one goes on the income statement, generally the more accurate the number for comparing businesses. Past revenue growth is a better predictor of future revenue growth than past earnings growth is at predicting future earnings growth. Unfortunately, unprofitable expansion can artificially inflate revenue numbers. EBITDA (earnings before interest, tax, depreciation and amortization) growth makes a strong proxy for overall business growth.

Capital Allocation amp; Enterprise Value

Management can finance growth organically with the company’s own cash flows, or through finance markets with debt or share issuances. Similarly, management can return money to shareholders by retiring debt or reducing share count. Lowering share count is obviously beneficial to shareholders as it increases the percentage of ownership of each shareholder. Reducing debt returns money to shareholders by eliminating debt holder claims on future cash flows.

Enterprise Value, Shareholder Return, amp; Debt

Imagine you were purchasing a business outright and you wanted to remove all claims other people have over the business. You would have to purchase all the equity of the business, plus retire all outstanding debts. As a bonus, you could take the cash in the bank account out of the business you purchased. Therefore, the enterprise value a business is equity value + outstanding debt – excess cash. When management retires debt, the company reduces its future obligations on cash flows, thereby increasing shareholders value.

The expectation/valuation multiple adjusted historical growth of a business is best measured by setting a constant valuation multiple to use for the EBITDA multiple. Setting a constant value has 2 advantages:

  1. It allows you to compare the business growth of any business on an apples-to-apples basis
  2. It accounts for changes in perception of the business that would otherwise distort growth measures

Standardizing Equity Value

EBITDA margins are about 1.9x net profit margins for the Samp;P500. The historical average P/E ratio of the Samp;P500 is about 15, and the historical average P/EBITDA ratio is a bit under 8. Using 8x as the standard EBITDA multiple to show business growth works well from a historical perspective.

Real Business Value per Share

The formula to estimate underlying business growth per share is the change in time of:

EBITDA per share x 8 – Total Debt per share + Cash per share

This formula takes into account share issuance/reduction, debt issuance/reduction, change in cash on hand, and business growth though valuation multiple adjusted EBITDA. Going forward, I will call this number the total real value per share, or RBV/S.

Dividends Matter to Shareholders

The only return item missing from the formula above is dividends. Dividend payments increase the growth rate of shareholders beyond underlying business growth. This is because shareholder return = capital appreciation + dividends. Underlying business growth (assuming no valuation multiple changes) creates capital gains; dividend payments are returns in excess of capital gains.

As with EBITDA, it is important to view dividend payments on a valuation adjusted basis so as not to penalize overvalued businesses and reward undervalued businesses. Do not confuse business valuation with business performance. One is the price we set on a business, while the other is how the business actually performs. Both are important, but analysis can become muddled when they are combined.

How to Calculate Shareholder Growth

To add in the affects of dividends, add the total amount of dividends paid per share over a time period to the ending RBV/S. Total valuation adjusted shareholder return growth for the period is:

( ( RBV/SNow + ?D/S Now to Start ) / RBV/SStart )^( 1/time periods )-1

The shareholder return number above is a growth number. If the business behaves similarly in the future as in the past, shareholders can expect a return of close to the historical shareholder return.

Valuation Matters to Investors

Expected growth is only half the battle in investing. Valuation does matter. If you buy a business that can pay you 10% a year that grows at 8%, it is better than a business that can pay you 5% a year that grows at 8%. Therefore, businesses with lower valuation multiples are better than businesses with higher valuation multiples, all other things being equal.

The EBITDA/EV multiple has historically done a better job of identifying value stocks than other multiples. It is a good place to start when sorting businesses by valuation. Keep in mind, the EBITDA/EV multiple does not tell you the actual yield you will get when you buy a stock. It simply does a better job of sorting stocks by value than other valuation multiples.

Walmart amp; Amazon Compared

Armed with shareholder return growth (SRG) and the EBITDA/EV multiple, we can accurately sort stocks based on their historical growth and current valuation in an attempt to find cheap businesses growing quickly. As an example, we will compare the discount retail king Walmart (WMT) to the game changing e-commerce retailer Amazon (AMZN).

The 10 year numbers for Walmart are below:

Walmart has a 5 year compound growth rate of 10.46%, and a 10 year compound growth rate of 12.83%. Further, the company has an EBITDA/EV ratio of 12.38%, so it is not overly expensive.

Compare this to Amazon’s 10 year numbers:

Amazon has breathtakingly high 5 and 10 year compound growth rates of 28.48% and 21.10%. The company is extremely expensive right now, with an EBITDA/EV ratio of only 2.51%, about 5x as expensive as Walmart.

Assuming both of these businesses grow at their 5 year previous growth rates, it would take Amazon shareholders 18 years to catch up to Walmart shareholders EBITDA/EV yield.

This is assuming that Amazon retains its extremely high EBITDA/EV ratio, and grows at 21.10% for the next 18 years. I believe both assumptions are highly unlikely. Even in a very favorable scenario, an investor needs an 18 year horizon to rationalize investing in Amazon over Walmart.


Investors can shed light on how quickly a business is actually growing using RBV/S growth and dividend payments. Investors can easily compare how expensive a business is in relation to other businesses using the EBITDA/EV ratio. Calculating how many years one business must grow before it passes another business can give you an idea of what investment best fits your time frame.

It is important to note that the Amazon to Walmart comparison did not adjust either businesses growth rates down over time. Amazon has a bright future, but it is highly unlikely the company can grow shareholder value at 20% per year for the next 18 years. It is also highly unlikely that Amazon will trade at such a high EBITDA/EV ratio in the distant future like it does today. Correcting for these two factors would show Amazon investors would have to wait significantly longer than 18 years to catch up with Walmart investors.

About the author:

22 JulSunTrust Banks Q2 Profit Rises, Adj. Earnings Top Estimates

For the second quarter, net income available to shareholders increased to $387 million or $0.72 per share from $365 million or $0.68 per share in the previous year.

The lender said its recent-quarter results were negatively impacted by $0.09 per share related to Form 8-K and other legacy mortgage-related items. Excluding items, adjusted earnings were $0.81 per share.

On average, 18 analysts polled by Thomson Reuters expected the company to report earnings of $0.77 per share for the quarter. Analysts estimates typically exclude special items.

On a fully taxable-equivalent or FTE basis, total revenue grew to $2.20 billion from $2.10 billion a year earlier. Wall Street analysts estimated revenues of $2.07 billion for the quarter.

Total revenue, excluding sale of RidgeWorth, declined $4 million as higher investment banking and mortgage servicing income was offset by a decline in mortgage production income.

Net interest income on FTE basis remained unchanged from last year at $1.24 billion. Non-interest income was $957 million, up from $858 million in the same quarter last year.

Mortgage production income fell to $52 million from $133 million in the prior year, mainly due to a decline in refinance production volume and gain on sale margins. Meanwhile, Mortgage servicing income was $45 million, significantly up from $1 million a year ago.

Investment banking income grew to $119 million from $93 million last year mainly reflecting higher client activity across most origination and advisory product categories.

William Rogers, Jr., chairman and chief executive officer of the company said, Favorable revenue trends, particularly growth in loans, deposits and fee income, coupled with continued expense discipline and further asset quality improvements led to solid core earnings growth this quarter.

Provision for credit losses fell to $73 million from $146 million in the preceding year.

Tier 1 capital ratio was 10.65 percent, compared to 11.24 percent a year earlier.

Earlier this month, SunTrust Mortgage, Inc., the home-lending arm of SunTrust Banks, agreed to a $320 million settlement with the US Department of Justice to resolve a criminal probe into SunTrusts administration of the Home Affordable Modification Program or HAMP, that resulted in a $204 million pre-tax charge.

STI closed Fridays trading at $39.72 on the NYSE.

For comments and feedback: contact editorial@rttnews.com


22 JulHuntington Bank earnings increase 9 percent

Huntington Bank earnings increase

CHARLESTON, W.Va. #x2014; Huntington Bancshares Inc., parent company of Huntington Bank, on Friday reported a 9 percent increase in second quarter earnings.

The Columbus, Ohio-based company said it earned $165 million during the quarter, a $14 million increase compared to the same quarter last year and a 10 percent increase from its first quarter earnings this year. On a per-share basis, the company earned 19 cents a share, up 2 cents from second quarter last year.

#x201c;We are very pleased with our second quarter performance, which reflects our steadfast focus on executing our strategies,#x201d; said Steve Steinour, Huntington#x2019;s chairman, president and CEO. #x201c;We have been able to grow both total revenue and net interest income year over year.#x201d;

Steinour said the company saw average loan growth of 9 percent during the recent quarter, which helped it overcome interest rate pressure from the low, flat yield curve.

#x201c;Average loans increased $3.7 billion from the second quarter of 2013, driven by growth in commercial and auto lending, reflecting heightened consumer and business confidence in the economy,#x201d; Steinour said.

For the quarter, the company saw a 39 percent increase in automobile loans and 7 percent increases in both commercial and residential loans.

21 JulClark County Business Briefs

Sheraden Schilling and Erin Edwards have joined LoanStar Home Lending as loan officers at the Vancouver branch. Schilling, who lives in Washougal, has been in banking since 1995. She previously worked at Washington Mutual/Chase Bank and Umpqua Bank. Edwards has a degree from Arizona State University and has 13 years experience between Wells Fargo Bank and Umpqua Bank. She lives in Vancouver.