TSL March 2018 by Secured Finance Network

Representing the Asset-Based Financing, Factoring & Supply Chain Finance Industries Worldwide March 18

Community Involvement Issue Profiles of CFA Members & the Causes They Support P10

IN THIS ISSUE Corporate Social Responsibility: Whatâ&#x20AC;&#x2122;s at Stake for Business Leaders Today P30 CFA Chapters Give Back P34 Relationship Management Average vs. Extraordinary P40 The TSL Interview: Ward Mooney & Scott Diehl P44 The TSL Interview: Jason Miller P52 Rosenthal Celebrates 80 Years P48

DEPARTMENTS

Collateral The CFA Brief What Would You Do? Revolver

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SPECTRUM Commercial Services offers asset-based loans and accounts receivable financing services nationwide. When Steve Lowenthal and Brian Van Nevel purchased the company in 2001, they needed a lender who could help them weather market challenges and capitalize on opportunities. With the Lender Finance team, Steve and Brian found a team of professionals that truly understood asset-based lending and factoring. Since that first conversation more than 16 years ago, our teams have worked side by side, successfully navigating the changing landscape of the marketplace. When you set goals for where you want to take your business, we want to help you get there. Learn how we can work together to move your business forward at wellsfargocapitalfinance.com/spectrum. ÂŠ 2018 Wells Fargo Capital Finance. All rights reserved. Wells Fargo Capital Finance is the trade name for certain asset-based lending services, senior secured lending services, accounts receivable and purchase order finance services, and channel finance services of Wells Fargo & Company and its subsidiaries. IHA-5315601

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COMMUNITY Representing the Asset-Based Financing, Factoring & Supply Chain Finance Industries Worldwide INVOLVEMENT ISSUE Volume 74, Issue 2

March 18

Profiles of CFA Members & the Causes they Support

FEATURES 10 Community Involvement Profiles More than 25 CFA members share their stories in giving back to the community through various charities. From organizations assisting with natural disaster recovery and food pantries to planting trees and financial literacy, the charities and organizations are as varied and vibrant as CFA’s members.

30 Corporate Social Responsibility: What’s at Stake for Business Leaders Today

Jessica Staheli of Scherzer International explores the importance of “giving back” in today’s business environment. By Jessica Staheli

34 CFA Chapters Give Back

CFA chapters share their experiences with their charity involvement over the years. Giving back allows the chapter to further build a sense of community and camaraderie. By Eileen Wubbe

40 Relationship Management Average vs. Extraordinary

Joe Accardi of Santander challenges lenders to re-examine their client relationships. By Joe Accardi

44 The TSL Interview: Ward Mooney & Scott Diehl Reflect on their Careers & Accomplishments

Ward Mooney of Crystal Financial and Scott Diehl of Wells Fargo Capital Finance, now both retired, reflect on their time in the asset-based lending industry. Mooney and Diehl were the recipients of CFA’s Lifetime Achievement Awards at CFA’s 73rd Annual Convention in Chicago in November 2017. By Eileen Wubbe

48 SPONSORED CONTENT 48 Rosenthal Celebrates 80 Years When one looks at Rosenthal & Rosenthal’s track record of success, especially as it marks its 80th year in business this year, it’s clear that entrepreneurism runs deep in the Rosenthal family.

52 The TSL Interview: Jason Miller of Otterbourg: Achieving Success by Helping Others Succeed Jason I. Miller is a partner at Otterbourg P.C. He concentrates his practice in the area of commercial finance, with a particular focus on asset-based and cash-flow financing. He represents major national and international commercial banks, finance subsidiaries of banks, mezzanine lenders, independent factors and finance companies. By Michele Ocejo

DEPARTMENTS 11

Letter From CFA’s CEO, Rich Gumbrecht, discusses TSL’s first community involvement theme issue and the importance of giving back.

Collateral The latest issues affecting the ABL and factoring industries, including company news and personnel announcements.

What Would You Do? In this edition of What Would You Do?, the Chief Credit Officer of Overadvance Bank considers the Bank’s options after learning that one of the Bank’s financially distressed borrowers selected a competing debtorin-possession financing proposal from the borrower’s second lien lender over the Bank’s financing offer. By Dan Fiorillo and Jim Cretella

The CFA Brief 56 67 69

Among CFA Members CFA Chapter News Calendar

Advertisers Index

Revolver Andrea Petro, former executive vice president and division manager of the Lender Finance Division of Wells Fargo Capital Finance based in Dallas, TX, discusses five reasons to support the Commercial Finance Association Education Foundation 2018 Individual Giving Campaign. By Andrea Petro

STAFF & OFFICES Michele Ocejo Editor-in-Chief & CFA Communications Director Eileen Wubbe Senior Editor Aydan Savaser Art Director

Editorial Offices 370 Seventh Avenue Suite 1801 New York, NY 10001 (212) 792 -9390 Fax: (212) 564-6053 Email: tsl@cfa.com Website: www.cfa.com

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The Commercial Finance Association is the trade group for the asset-based lending arms of domestic and foreign commercial banks, small and large independent finance companies, floor plan financing organizations, factoring organizations and financing subsidiaries of major industrial corporations. The objectives of the Association are to provide, through discussion and publication, a forum for the consideration of inter- and intra-industry ideas and opportunities; to make available current information on legislation and court decisions relating to asset-based financial services; to improve legal and operational procedures employed by the industry; to furnish to the general public information on the function and significance of the industry in the credit structure of the country; to encourage the Association’s members, and their personnel, in the performance of their social and community responsibilities; and to promote, through education, the sound development of asset-based financial services. The opinions and views expressed by The Secured Lender’s contributing editors and authors are their own and do not necessarily express the magazine’s viewpoint or position. Reprinting of any material is prohibited without the express written permission of The Secured Lender. The Secured Lender, magazine of the assetbased financial services industry (ISSN 0888255X), is published 8 times per year (Jan/Feb, March, April, May, June, September, October and November) $65 per year non-member rate, and $100 for two years non-member rate, CFA members are complimentary, by Commercial Finance Association, 370 Seventh Avenue, New York, NY 10001. Periodicals postage paid at New York, NY, and at additional mailing offices. Postmaster, send address changes to The Secured Lender, c/o Commercial Finance Association, 370 Seventh Avenue, New York, NY 10001.

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THE INDUSTRY IN BRIEF

Rosenthal Acquires Domestic Factoring Portfolio From BB&T Rosenthal & Rosenthal, Inc., the leading independent factoring, asset-based lending and purchase order financing firm in the United States, announced the completion of a deal to acquire the domestic factoring portfolio of BB&T Corporation (NYSE: BBT), one of the largest financial services holding companies in the United States. As part of the deal, Rosenthal will acquire BB&T’s portfolio of 90 factoring clients, adding approximately $2 billion in volume to its already robust $9 billion in factored volume. Rosenthal will add a front office in Georgia and back office support in North Carolina to manage the new portfolio. These two new locations complement Rosenthal’s already existing California office and New York headquarters. Twenty-five BB&T factoring professionals will join the nearly 200 Rosenthal staff currently serving the firm’s clients nationwide. The deal marks the first acquisition in Rosenthal’s 80-year history and positions the firm to further diversify the regions and industries it currently serves. This significant expansion allows Rosenthal to continue to develop new business opportunities within the furniture, casual living, fabrics and textiles industries, alongside the fashion, apparel, accessories, manufacturing, food and beverage and gift and home sectors, where Rosenthal has had historically strong relationships. “We are excited to acquire BB&T’s portfolio of factoring clients and honored to welcome their talented team of professionals into the Rosenthal family,” said Peter Rosenthal, President of Rosenthal & Rosenthal. “This acquisition is a logical step forward for our firm, significantly advancing our goal of establishing Rosenthal as the leading independent national finance company.” “We are pleased to be a part of this

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transaction with Rosenthal & Rosenthal,” said BB&T Specialized Finance and Operations Manager Robert Fentress. “Both our clients and associates will benefit from an association with one of the most respected firms in the factoring and asset-based lending business.” ABOUT ROSENTHAL & ROSENTHAL Rosenthal & Rosenthal (www.rosenthalinc.com) is the leading independent factoring, asset-based lending and purchase order financing firm in the United States. Founded in 1938 by Imre J. Rosenthal, the firm is now led by the second and third generations of the Rosenthal family. As a privately held company, Rosenthal is committed to providing personalized service and flexible lending to clients across a broad range of industries. Rosenthal has offices in New York, California, Georgia and North Carolina. BB&T BB&T is one of the largest financial services holding companies in the U.S. with $221.6 billion in assets and market capitalization of $38.9 billion as of December 31, 2017. Building on a long tradition of excellence in community banking, BB&T offers a wide range of financial services including retail and commercial banking, investments, insurance, wealth management, asset management, mortgage, corporate banking, capital markets and specialized lending. Based in Winston-Salem, N.C., BB&T operates over 2,000 financial centers in 15 states and Washington, D.C. A Fortune 500 company, BB&T is consistently recognized for outstanding client service by Greenwich Associates for small business and middle-market banking. More information about BB&T and its full line of products and services is available at BBT.com. Media Contact: Casey Klurfeld casey@lividini.com

Karen Sessions Named New President of Bank of America Business Capital Bank of America Business Capital (BABC) is pleased to announce that Karen Sessions has been named president, succeeding Jeff McLane, who was named U.S. regional commercial credit executive at Bank of America Merrill Lynch. Ms. Sessions will lead an international team of asset-based lenders. With nine primary offices serving the United States, Canada and Europe, BABC provides corporate borrowers with senior secured loans of $5 million or more, cash management, interest rate and foreign exchange risk management, and a broad array of capital markets products. Based in Los Angeles, Ms. Sessions began her banking career at Fleet Securities in Boston, a predecessor entity, and brings 20 years of industry experience to this role. She most recently served as the BABC portfolio and underwriting manager for the west region. Ms. Sessions earned a Master of Business Administration from the Kelley School of Business at Indiana University and a Bachelor of Arts degree from Cornell University. She is a member of the Commercial Finance Association and on the organizing committee for the annual Asset-Based Capital Conference. She also served on the boards of St. Marks School and Vestry of St. Mark’s Episcopal Church as well as the board of the Children’s Center at Caltech. Bank of America is one of the world’s leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched conve-

Pierce, Fenner & Smith Incorporated and Merrill Lynch Professional Clearing Corp. are registered as futures commission merchants with the CFTC and are members of the NFA. Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured * May Lose Value * Are Not Bank Guaranteed.

Meta Financial Group, Inc.® Announces Agreement to Acquire Crestmark Bancorp, Inc. Meta Financial Group, Inc.® (Nasdaq: CASH) (Meta), the holding company for the federally chartered savings bank MetaBank®, announced it has reached an agreement to acquire Crestmark Bancorp, Inc. (Crestmark), the holding company for the Michigan state-chartered bank, Crestmark Bank, in an all-stock transaction. Meta operates in several segments within the banking and payments industries. Crestmark is a commercial lender specializing in providing diverse financial solutions to businesses. This acquisition provides Meta with a national commercial and industrial lending platform, and is intended to add an immediate pipeline of insurance premium financing business and provide opportunities for innovation and synergistic cross-selling among business lines. It is expected to be immediately accretive to 2018 earnings per share, excluding merger costs, approximately 10% earnings per share accretive for fiscal year 2019 and to have a tangible book value earn-back period of approximately 2.2 years. Upon the closing of the transaction, Crestmark will operate as a division of MetaBank. “With this acquisition, we continue to deliver on our goal of growth and innovation through diversification,” said J. Tyler Haahr, chairman and CEO of Meta. “This transformational

transaction will allow us to significantly add on-balance sheet loans at attractive yields with the addition of Crestmark’s national lending platform. It also creates complementary crosssell opportunities for our insurance premium finance business. Crestmark has built an enviable lending platform, and we believe the business is poised for rapid growth. We look forward to welcoming their tenured management team and talented workforce to Meta.” Crestmark, through Crestmark Bank, is a commercial lender offering asset-based loans, equipment finance leases and government-guaranteed loans to small and mid-sized businesses across the US. Crestmark focuses on working with a broad range of industries, including manufacturing, transportation and health care. “The merger of Meta and Crestmark results in the complementary combination of a leading player in the payments industry and low-cost deposit generator with a premier, high-margin asset generator,” said W. David Tull, chairman and CEO of Crestmark. “The synergies will enable the combined entity to grow and prosper. Additionally, Crestmark will be able to leverage the power of Meta’s low-cost deposit franchise and larger balance sheet to capitalize on even more growth opportunities.” The Crestmark transaction will build upon Meta’s previous lending acquisition of AFS/IBEX, which it purchased in December 2014. With this acquisition, Meta’s growing national lending offerings will help to offset much of the seasonality created by its other divisions. Meta Payment Systems® specializes in payments products, particularly prepaid cards, which spike in sales at various times of the year such as holidays and tax season. Refund Advantage, EPS Financial and Specialty Consumer Services make up

INDUSTRY NEWS

nience in the United States, serving approximately 47 million consumer and small business relationships with approximately 4,700 retail financial centers, approximately 16,100 ATMs, and award-winning online banking with 32 million active users and more than 18 million mobile users. Bank of America is among the world’s leading wealth management companies and is a global leader in corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately three million small business owners through a suite of innovative, easy-to-use online products and services. The company serves clients through operations in all 50 states, the District of Columbia, the U.S. Virgin Islands, Puerto Rico and more than 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange. “Bank of America Merrill Lynch” is the marketing name for the global banking and global markets businesses of Bank of America Corporation. Lending, derivatives and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Securities, strategic advisory, and other investment banking activities are performed globally by investment banking affiliates of Bank of America Corporation (“Investment Banking Affiliates”), including, in the United States, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Merrill Lynch Professional Clearing Corp., both of which are registered broker-dealers and Members of SIPC, and, in other jurisdictions, by locally registered entities. Merrill Lynch,

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INDUSTRY NEWS

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Meta’s tax-related financial solutions divisions, which are also seasonal. Crestmark will continue to operate from its offices in Troy, MI. Upon the closing of the transaction, W. David Tull, Crestmark’s chairman and CEO, and one other mutually agreeable director, will each join the Meta board, and Michael “Mick” Goik, president and chief operating officer of Crestmark, will become EVP of MetaBank and President of the Crestmark division of MetaBank. Pursuant to the terms of the agreement, Crestmark will merge with and into Meta, and Crestmark Bank will merge with and into MetaBank. MetaBank had $5.2 billion in assets and $1.3 billion in total loans on Sept. 30, 2017. On a pro forma consolidated basis, the combined company would have had approximately $6.4 billion in assets and $2.2 billion in loans and leases at the end of September 2017, with lending operations throughout the US. Under the terms of the agreement, Crestmark shareholders will receive 2.65 shares of Meta common stock for each share of Crestmark common stock. The aggregate value of the acquisition consideration, based on the closing price of Meta shares on January 8, 2018 of $91.35, is $320.6 million, or $242.08 per Crestmark share. Meta anticipates issuing approximately 3.3 million shares to Crestmark shareholders. The transaction is intended to qualify as a tax-free reorganization for US federal income tax purposes. Giving effect to the transaction, existing shareholders of Meta are expected to own approximately 75 percent of the outstanding shares of Meta, and Crestmark shareholders are expected to own approximately 25 percent of the outstanding shares of Meta. It is anticipated that the transaction will close in the second calendar

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quarter of 2018. The transaction is subject to closing conditions, including the approval of bank regulatory authorities, receipt of third-party consents and the receipt of approval by shareholders of both Meta and Crestmark. In connection with the parties’ entry into the agreement and plan of merger, certain shareholders of Crestmark, including certain of its current directors and senior executives, entered into agreements to vote in favor of the transaction. Raymond James & Associates, Inc. is acting as financial advisor to Meta and delivered a fairness opinion to the Meta Board of Directors. Katten Muchin Rosenman LLP is serving as legal counsel to Meta. Sandler O’Neill + Partners, L.P. is acting as financial advisor to Crestmark. Dickinson Wright PLLC is serving as legal counsel to Crestmark. Meta Financial Group, Inc. is the holding company for MetaBank®, a federally chartered savings bank. Meta Financial Group shares are traded on the NASDAQ Global Select Market® under the symbol CASH. Headquartered in Sioux Falls, SD, MetaBank operates in both the Banking and Payments industries through: MetaBank, its traditional retail banking operation; Meta Payment Systems, its electronic payments division; AFS/ IBEX, its insurance premium financing division; and Refund Advantage, EPS Financial and Specialty Consumer Services, its tax-related financial solutions divisions. More information is available at metafinancialgroup.com. Crestmark Bancorp Inc. is the holding company for Crestmark Bank, a Michigan state-chartered FDIC-insured commercial bank with regional offices in six states and sales representation nationwide. Headquartered in Troy, Michigan, Crestmark provides working capital loan solutions, line of

credit solutions, equipment leasing, equipment financing and financial services to businesses in a wide range of industries. More information is available at crestmark.com.

Monroe Capital Establishes Independent Sponsor Finance Vertical Monroe Capital LLC (Monroe) announced it has established an Independent Sponsor Finance vertical. Brad Bernstein, Chris Larson and Zia Uddin will lead the vertical, based out of the firm’s Chicago office. Brad, Chris and Zia have an average of over 20 years’ experience in private equity and independent sponsor finance. The Independent Sponsor Finance vertical focuses on providing comprehensive “one-stop” solutions for independent sponsors seeking both debt and equity financing for acquisitions, mergers, business combinations and recapitalizations. In the last few years, Monroe funded 12 transactions involving over $300 million of debt and equity capital to independent sponsors. Its team has a broad investment mandate and prides itself on its ability to move quickly and efficiently on new opportunities. The Independent Sponsor Finance vertical complements its existing healthcare, technology, media, specialty finance, and retail and consumer products asset-based lending-focused verticals. In 2017, Monroe financed 77 direct lending investment transactions, involving over $2.0 billion of new capital deployed. Monroe manages in excess of $5.2 billion in various funds including private credit funds, separately managed accounts (SMAs), a publicly-traded BDC and other fund vehicles. Monroe Capital LLC (Monroe) is a

William Bence Moves into New Role at MB Business Capital MB Business Capital (MBBC) a division of MB Financial Bank, N.A. announced that William Bence is moving from portfolio management into a new business development role as vice president/business development officer. MBBC also announced John Robinson joined as senior vice president/ business development officer for the northeast U.S. region. “MB Business Capital’s success is attributed to its people. We are happy when we can accommodate employee

career growth while maintaining the high level of skill and knowledge that MB Business Capital’s team is known for. Will and John are perfect additions to our highly successful national sales team and we welcome them both,” said Michael Sharkey, president of MB Business Capital. Bence will be responsible for developing new asset-based lending opportunities, primarily in the Michigan and Ohio markets. He will be based out of the MB Rosemont, IL office. Bence has over 10 years of asset-based lending experience and began his career with LaSalle Business Credit and later Bank of America Business Capital, where he served in credit analyst and field examiner positions. Bence is presently an active member of the Association for Corporate Growth (ACG), Commercial Finance Association (CFA), and Turnaround Management Association (TMA), and serves on the Education Committee for the CFA. Will holds a B.S. in Finance from the University of Illinois, and an MBA with honors from the University Of Chicago Booth School Of Business. In 2016, Bence was named to the inaugural 40 Under 40 class by the Commercial Finance Association. Robinson Jr. brings over 30 years of banking experience to MB. He was most recently with Fifth Third Bank’s Structured Finance Group. He started his career at Maryland National Bank with roles in credit and portfolio management. After his years at Maryland National, which was eventually purchased by NationsBank, Robinson Jr. has had career stops at McShane Group, a turnaround advisory firm, and as director at Parkway Capital, a mezzanine lender. Robinson Jr. holds an MBA from Lehigh University, Bethlehem, PA, and a B.S. in economics from Pennsylvania State Univer-

sity, State College, PA. He is currently serving on the board of directors of ACG Maryland & Baltimore Community Toolbank. He is a past president and board member of the Chesapeake Chapter of the Turnaround Management Association, and he is credentialed as a Certified Turnaround Professional. He is also the past director of the National Turnaround Management Association, and past chairman and board member of the board of directors for the Hoffberger Center for Professional Ethics at the University of Baltimore, Baltimore, MD. Robinson Jr. will be based in the Hunt Valley, MD office, covering the Northeast and Mid-Atlantic regions. MB Business Capital is the assetbased lending division of MB Financial Bank, a commercial bank headquartered in Chicago, Illinois. MB Business Capital seeks assetbased lending opportunities in the $5 million-to-$35 million range and is offering dedicated syndication opportunities of up to $100 million. The firm can also provide access to the full range of business banking products and services offered by MB Financial Bank.

INDUSTRY NEWS

private credit asset management firm specializing in direct lending and special situations investing. Since 2004, the firm has provided private credit solutions to borrowers in the U.S. and Canada. Monroe’s middle-market lending platform provides senior and junior debt financing to businesses, special situation borrowers, and private equity sponsors. Investment types include unitranche financings; cash flow, asset-based and enterprise value-based loans; and equity coinvestments. Monroe is committed to being a value-added and user-friendly partner to business owners, senior management, and private equity and independent sponsors. The firm is headquartered in Chicago and maintains offices in Atlanta, Boston, Dallas, Los Angeles, New York, and San Francisco. Monroe has been recognized by Global M&A Network as the 2017 Small Middle Markets Lender of the Year; Private Debt Investor as the 2016 Lower Mid-Market Lender of the Year; M&A Advisor as the 2016 Lender Firm of the Year; and the U.S. Small Business Administration as the 2015 Small Business Investment Company (SBIC) of the Year. www.monroecap.com

Remember

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THE SECURED LENDER’S

COMMUNITY INVOLVEMENT ISSUE Profiles of CFA Members & the Causes they Support

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Welcome to TSL’s first Community Involvement Issue. You’ll often hear me refer to the “CFA Community” in describing the breadth and nature of the people and organizations with whom we work and serve. Our Association is one that is united by profession, but bound by the affinity and goodwill of our people. When the concept of this issue was first discussed, we knew philanthropy was alive and well within the CFA Community, but we didn’t truly understand how much time and energy CFA members spend contributing to the worthwhile causes about which they are passionate. This issue is a departure from our traditional business-oriented themes, but the response has been enthusiastic, to say the least. CFA members were eager for the opportunity to talk about their respective charities and to highlight the good their team members were doing. These activities are not only intrinsically fulfilling and impactful, but they are also good for business. People want to work for and do business with companies who are good corporate citizens. With the polarizing political atmosphere and the avalanche of negative news that is thrown at us daily, it’s nice to take a step back and focus solely on the people who are working to make this a better world. Past Atlanta Chapter President and CEO of Allied Financial Steven Gold sums it up best on page 35: “We often get so caught up with the intensity of work that we can lose track of more important things going on around us. Volunteering and staying in touch with our community is vital to our success and overall wellbeing.”

The process of creating this issue has taught us a few things. One, for many organizations charity is ingrained in their culture and has been from the start. We learned the charities supported by CFA members are as varied and unique as the members themselves, from food banks to safe water initiatives and mentoring disadvantaged teens. And we learned that our members are giving in truly meaningful ways. They are out in their communities, donating their time and expertise. The Community Involvement profiles, starting on page 12, feature nearly 30 CFA members sharing their experiences of charity work and its importance. In addition to the profiles, this issue also includes articles on other aspects of social responsibility and philanthropy. On page 30, Jessica Staheli, of Scherzer International, explores the importance of “giving back” in today’s business environment in Corporate Social Responsibility: What’s at Stake for Business Leaders Today? Key industry executives discuss why giving back is so important and how it affects their relationships with both borrowers and their community. On page 34, TSL senior editor Eileen Wubbe turns the spotlight on CFA Chapters and their charitable endeavors. Partnering with charities has been a tradition of CFA Chapters for many years and their commitment is

inspiring. From children’s cancer organizations to sorting food for those less fortunate, there is no shortage of organizations needing help. Asset-based lenders and factors pride themselves on the relationships they build with their clients. It sets them apart from other lenders and is often a factor in retaining these clients. In Relationship Management: Average vs. Extraordinary on page 40, Joe Accardi, of Santander, challenges lenders to re-examine their client relationships and to take them to the next level. On page 44, we celebrate the accomplishments of two esteemed members of the industry who recently retired. Ward Mooney, of Crystal Financial, and Scott Diehl, of Wells Fargo Capital Finance, were the recipients of CFA’s Lifetime Achievement Awards at CFA’s 73rd Annual Convention in Chicago in November 2017. Finally, Jason Miller, of Otterbourg, believes the path to true success involves helping others succeed. On page 52, he discusses his deep involvement with two charitable causes, Water Collective and Fabulous & Fighting. Winston Churchill said, “We make a living by what we get, but we make a life by what we give.” If that is true, then those profiled on the following pages are creating rich, vibrant lives indeed.

“This issue is a departure from our traditional businessoriented themes, but the response has been enthusiastic, to say the least. CFA members were eager for the opportunity to talk about their respective charities and to

Warm regards,

highlight the good their team members were doing.”

Richard D. Gumbrecht CFA CEO

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THE COMMUNITY INVOLVEMENT ISSUE

AeroFund Financial: Personal Involvement Makes the Difference When Stephen Troy and his wife, Leanne, started their company, AeroFund Financial, over 30 years ago, they made a decision to support community causes they could personally get involved in to make a difference. They focused on organizations with a specific mission to support kids. That goal led them to put major support into three great organizations and projects: Junior Achievement, The American Cancer Society and their own homegrown AeroFund Toys for Kids. Junior Achievement, a worldwide organization that prepares young people for success in business and financial literacy, has been Stephen’s particular focus. Leanne’s involvement has been with the Grandview League, a local group of women that raises funds for the American Cancer Society, as well as organizing their own AeroFund Christmas Shopping Spree, during which their employees shopped each Christmas for gifts for underserved children from different local charitable organizations. Each required not only monetary contributions, but also time. Early on, Stephen gravitated to Junior Achievement, which gave him the opportunity to teach in the classroom and mentor the future leaders of tomorrow. For 25 years as a board member, he has personally helped guide JA as well as taught JA programs in high school. He is proud of his record of not missing a semester. “It is a wonderful gift to myself to connect and mentor our future leaders, before they start their own journeys,” said Stephen. Leanne’s focus has been through the Grandview League, where she has been a leader in the Cattle Barons Ball, one of the leading fundraisers in Silicon Valley, as well as AeroFund’s annual Christmas shopping which has provided thousands of toys for children whose parents struggle with their care. “It’s with a sense of pride that we have been part of the solution in our community, whether it is preparing the youth of tomorrow, helping eradicate a horrible disease, or putting a smile on a child’s face during Christmas. At AeroFund, we like to know when we write that check, we are not just throwing money at a problem, we are taking an active role in the solution,” said Stephen.

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AeroFund employees organize their own Christmas Shopping Spree. Employees shop each Christmas for gifts for underserved children from different local charitable organizations.

Amerisource: Helping Where They are Needed Amerisource and its employees are dedicated to giving back to the communities in which they live and work. This charitable spirit has resulted in Amerisource team collectively donating hundreds of thousands of dollars and countless volunteer hours to many worthy nonprofit organizations. Annually, Amerisource employees take part in a sponsored walk called Walk for the Woods. The funds raised are used to support disadvantaged students and help them to achieve future success. The Amerisource team helped to collect new books, crayons, pencils, paints, stickers, and coloring books to distribute to the Texas Children’s Hospital and to the children affected by Hurricane Harvey. In the aftermath of Hurricane Harvey, the Amerisource employees stepped up and provided help to those who needed it. This included sorting donations at the Tomball Renewal Center, and the KIPP School. Helping clients, friends, family and colleagues whose homes were damaged by flooding (gutting houses, tearing

down sheet-rock, ripping out flooring, etc.). Amerisource donated Christmas gifts to the Tomball Renewal Center. The TRC addresses the needs of the disadvantaged and marginalized in the Northwest Houston area. They also donated Christmas gifts to the children of families who had lost their home and possessions in Hurricane Harvey. These gifts included new bikes, toys, books, clothes, and shoes. Houston Junior Woman’s Club is an organization of women dedicated to volunteer services and financial assistance to charitable organizations, all of which serve the needs of children in the Houston community. Amerisource provides them with a location to meet and make their fundraising gifts and supports their

COMMUNITY INVOLVEMENT part of BFS’s corporate culture. BLG matches funds raised when an employee or team of employees engages in an event or activity, such as a 5k race, benefiting a qualified charitable organization.

Amerisource employees helping to repair a home ravaged by flooding.

annual “Holiday happenings”. Amerisource sponsors three Zambian Orphans through a Christian charity called Family Legacy. The sponsorship

pays a Christian education, a school uniform and a daily nutritious meal. Visit www.amerisource.us.com for more information.

Bibby Financial Services: Charitable Giving as Corporate Culture Bibby Financial Services (BFS) is committed to giving something back to make a difference in the world. The company’s leadership team believes in supporting the causes close to employees’ hearts because what is important to them as individuals is important to the business.

The Bibby Financial Services (BFS) team in Nashville with their sports equipment donation for the Andrew Jackson FOP Youth Camp, left to right: Tina Hughes, Andrea Snyder, Tammy Louallen-Jones, Julie Payne, Mitch Highsmith, Roseanne Gerena, Thomas Powell, Autumn Wiggins, Melanie West, Scott Blackburn, Mary Ann Hudson, Glenda Jackson, Lorrie Shepherd and Whitney Massey. BFS employees are proud to participate in the company’s Giving Something Back (GSB) program, a unique initiative that reinforces the company’s values and aims to harness the passion of its people, supporting

them as they raise funds or volunteer for their favorite charities. Launched in 2007 by its parent company, Bibby Line Group (BLG), as part of its Bicentenary year celebrations, the GSB program has made charitable giving

Globally, the program has raised more than $13.1M (as of January 2018) for over 1,000 charitable causes since its inception. Chief executive officer, North America, Ian Watson hopes to see the total hit $15M by year end. “The dollar figure represents more than just money given to charities,” said Ian. “It’s hard work and personal time our people have devoted to making things better in their communities. I find it really gratifying to see the pictures and to hear the stories of how their efforts have impacted the lives of others. The charities we work with can’t do what they do without people to support them, and I think it’s a very special thing that we’re able to encourage and empower our associates to volunteer even during work hours.” The GSB program goes beyond fundraising as employees are encouraged to volunteer their personal time to make things better for others. BFS North America employees are allotted 8 hours paid time off per year for the purpose of volunteering for charitable organizations. Employees make use of this opportunity to support their local communities through activities like sorting donations at food banks, entertaining hospitalized children and their families, and packing bags of personal supplies for those in need. The causes supported by employees of BFS North America in 2017 included: Andrew Jackson Fraternal Order of Police Youth Camp, Second Harvest Food Bank, Children’s Restoration Network, Children’s Hospital of Atlanta, My Stuff Bags Foundation, The Terry Fox Foundation, The Kidney Foundation of Canada, Movember Foundation of Canada, plus local organizations benefiting the homeless and veterans.

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Birch Lake Associates, LLC: Support from One Family Impacts an Entire Classroom, and Beyond A year after Northwestern Settlement closed out its 125th Campaign in honor of its 125th anniversary the fruits of the campaign are visible across all its campuses. In September Northwestern Settlement unveiled its expanded campus for Rowe Elementary’s middle school in a ribbon-cutting ceremony. Mayor Rahm Emanuel shared that a child drops out of college in the third grade, saying places like Rowe are crucial to keeping children engaged and raising the bar along the way. Thanks to donors Bill and Diane Welnhofer, Rowe scholars walk in the door each morning reminded that college is the goal, and that they are on the path to attaining it. Through their sponsorship of the Northwestern University classroom at Rowe Elementary, the Welnhofers and donors like them give young Chicago scholars a place that offers not just the opportunity, but gives them the tools and the power, to do anything with their life – to give them choices. By providing their families assistance through the food pantry, challenging their critical literacy skills through Adventure Stage Chicago shows and programs, and keeping them engaged beyond the school day through After School, the Settlement is ensuring scholars and their families have access to what they need not just to get by, but to what they need to succeed. Those scholars now spend a week each spring at House In The Wood’s Valerie Hall Outdoor Education Center, putting their science and math classes into real world situations, and getting hands on with environmental and STEM lessons. This unique experience is a common part of the curriculum at Rowe. And so successful other schools are adding it to their school year. This year House In The Wood will welcome its first high school classes for outdoor education residencies. Support from the Welnhofers, and their friends doesn’t stop with Rowe Elementary. Bill’s wife, Diane, president of the Settlement’s Winnekta Board, also participates in the annual Adopt A Family event, where

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Summer Adventure campers play a team building game to get to know each other better and build on social and emotional learning skills.

the Winnetka Board adopts some of the neighbors in greatest need, providing gifts from a wish list that ranges from sheets and towels the families had lived without, to extra pots and pans, and toys for the children. For more than125 years Northwestern Settlement has nurtured, educated and inspired children and families in need

in Chicago. Northwestern Settlement’s programs are fully integrated to meet the complex needs of their neighbors, and disrupt generational poverty. The Settlement touches nearly 40,000 lives and 85 percent of Chicago’s zip codes. Learn more about Northwestern Settlement at www. northwesternsettlement.org

Blank Rome: Pro Bono work for Nonprofi ts Blank Rome is proud of its deep tradition of giving back to its communities, including through pro bono service. Blank Rome’s pro bono policy requires each of the firm’s attorneys and paralegals to undertake at least 25 hours of pro bono service every year, although 65 hours is encouraged. In order to achieve this goal, Blank Rome helps identify meaningful pro bono opportunities. One such opportunity is Compass. Founded in Washington, D.C., with offices in Philadelphia and Chicago, Compass recruits, trains, and supports teams of business professionals— predominantly MBA alumni from top business schools and consulting firms, lawyers from top regional and national firms, and members of strategy departments from the cities’ largest corporations—who provide strategy consulting services to local nonprof-

its—free of charge. Compass’ mission is to inspire business professionals to engage with local nonprofits to transform communities. It has engaged and inspired over 2,300 unique business volunteers to collaborate with nonprofit leaders since 2001, conducting 500 projects for 365 clients, and providing over $54 million of pro bono consulting services to the nonprofits. Blank Rome’s business department,

COMMUNITY INVOLVEMENT time together. It can be a fun challenge to plan activities for me and my little —they range from educational to more recreational. Last week I took him to the Liberty Science Center which gave us an opportunity to be more interactive and a chance to understand a little more how my little learns and what he likes to do. And I’m lucky that CapFlow creates an environment where volunteering is encouraged,” said Whelan.

Blank Rome attorneys with Compass Executive Director: Pictured from left to right: Mat Rotenberg (Partner, Blank Rome), Heather Sonnenberg (Partner, Blank Rome) and Beth Dahle (Executive Director – Philadelphia, Compass). which includes its asset-based lending team, has partnered with Compass since it expanded to Philadelphia several years ago. Since then, more than 30 of their attorneys and paralegals have served as volunteers on Compass pro bono projects, and many are repeat volunteers. Blank Rome partners Heather Sonnenberg and Mat Rotenberg, as well as associates Marcie Landsburg, Jillian Zvolensky, and Adam Sansweet are some of the members of the asset-based lending team who volunteer with Compass. Heather and Mat have each participated on three or more Compass pro bono project teams over the past five years for nonprofits based in Greater Philadelphia, including projects for ACHIEVEability, Center For Literacy, Philadelphia Works, SeniorLAW Center, Smith Memorial Playground and Playhouse, and The Women’s Center of Montgomery County.

“We volunteer with Compass because they provide a meaningful and welldesigned experience for their volunteers. Each project is identified by the senior leadership of the nonprofit client based on a critical strategic need and is then jointly vetted and refined by Compass and the client. As a result of this work, the project is already well-developed, allowing the volunteer project team to hit the ground running,” shares Mat Rotenberg. Heather Sonnenberg adds, “Each hour that we spend volunteering on a Compass project provides substantially more than an hour’s worth of value to the client—both because of the importance of the project to the client and because the initial groundwork has been completed. This makes for a successful partnership.” For more information about Compass, visit www.compassprobono.org.

CapFlow Funding Group, Jimmy Whelan: Putting Others First Jimmy Whelan, head of credit and underwriting at CapFlow Funding Group, is an active member of Big Brother/Big Sister in New Jersey. “My family has always put volunteering and helping others first. I grew up helping out with Habitat for Humanity and running fundraisers. As we get older and get busy with work and any other commitments, it’s even more important

to take the time to support others. What I love about being a Big Brother is that I’m having a direct impact in one boy’s life. We’ve definitely had our ups and downs, but when we have a good day together, I know that we both value that

Chapman & Cutler: Giving Back for Over 100 Years Chapman partners with many charities to raise awareness and needed funds. The firm’s partnership with Gads Hill Center, a Chicago community organization founded in 1898, dates back to our founder, Theodore Chapman, who was an ardent supporter in 1913 when he founded the firm, until his death. Chapman continues that legacy of giving and support for the Gads Hill Center, which includes donating holiday gifts to fulfill children’s Santa wishes. To highlight a recent activity, the firm has partnered with the American Heart Association’s Heart Walk campaign for the past three years, an effort that resulted in Chapman receiving the Law Chalice Award for the most funds raised two years in a row. In 2017, Chapman partnered with Cristo Rey, a college preparatory school on the near southwest side of Chicago, as part of a new diversity pipeline program for high school students. Following a nationally successful model, students are given an opportunity to earn up to 70% of their educational costs by working as entry-level interns in local companies. Chapman hosts annual fundraisers supporting many causes and conducts

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firmwide campaigns to raise funds for victims of natural disasters and refugee crises. For example, Chapman’s annual holiday giving campaign is designed so that the firm’s personnel have the opportunity to select from charities they want their donations to benefit. In 2017, the firm fundraised to support the people and pets impacted by four major natural disasters that impacted the U.S. and Mexico: Hurricane Harvey (Texas), Hurricane Irma (Florida and Puerto Rico), the Mexico City earthquake, and the Northern California wildfires. Chapman offers a number of opportunities for members of the firm (attorneys and staff) to collaborate on projects that benefit our communities. One such example is the Bike Commuter Challenge, a two-week, workplace competition among companies (and law firms) in the Chicagoland area to promote environmental sustainability by reducing the carbon footprint.

Chapman and Cutler team members participated in the 2017 American Heart Association Metro Chicago Heart Walk.

CIBC: Dedicated to Financial Literacy Every year, CIBC employees from across the United States participate in their annual employee Volunteer Day. On December 6, 2017, over 500 employees in Chicago, Atlanta and Detroit volunteered to teach Operation HOPE’s financial literacy curriculum to students ranging from K-12. On Volunteer Day, CIBC employees visited several area schools and taught classrooms in groups of 2-3 employees, reaching over 3,000 students in total for the day. CIBC’s teams in St. Louis and Milwaukee also participated in these same teaching events earlier in the year. As part of Operation HOPE’s commitment to improving communities, many of the schools visited are in low-income areas. Employees receive training in order to prepare lessons tailored to the ages of the students. Students learn about savings, investments in a setting that pairs a traditional lesson with an interactive game. In total, CIBC’s U.S. Region volunteers about 11,000 hours of CRA-qualified service each year.

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CIBC team members on their 2017 Volunteer Day on December 6, 2017.

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CIT: Planting 18,000 Trees Planted Across California And Florida CIT Group Inc. announced its interactive philanthropic campaign, the Gratitude & Growth Project, garnered support from stakeholders across the country to plant nearly 18,000 trees in California and Florida to help restore forests in the states that were affected by recent wildfires and hurricanes. The Gratitude & Growth Project was extended from November through December 31, 2017 to allow CIT’s customers more time to participate in the program and help restore forests in two states where the company has a significant presence. Customers were invited to engage with the content on social media and through direct communications to show support for the cause. “Through the collective efforts of our employees, business clients and bank customers, CIT will donate 18,000 trees to two important areas that have suffered extensive damage last year,” said CIT Chief Marketing and Communications Officer Gina Proia. “The response to this program shows a collective commitment to make our communities stronger, and we extend

our sincere gratitude to all that participated.” CIT has partnered with OneTreePlanted. org, a nonprofit organization dedicated to reforestation, and the trees will be planted

this spring. OneTreePlanted.org estimates between 46,000 and 58,000 square miles of forest are lost each year, the equivalent of 36 football fields each minute.

Crestmark: “We Help” Philosophy Benefits Communities Across the Country “We help. It’s not just what we say. It’s what we do at Crestmark. Whether we’re helping small businesses grow or improving communities through fundraising and volunteer service, this is our call to action and our way of life for over 300 employees in eight locations across the country,” said W. David Tull, CEO and founder of Crestmark.

W. David Tull, Crestmark CEO (right) presents a $100,000 scholarship check to Michael A. Mazzeo, Ph.D., dean and professor of finance in Oakland University’s School of Business Administration, and Angie Schmucker, vice president of development and alumni relations. “We help” is Crestmark’s core philosophy and guiding principle. In fact, the company trademarked the phrase in 2012 to officially recognize its longstanding and continued commitment to helping others

inside and outside the company. And for Crestmark’s 20th anniversary, in lieu of a company party, they opted to provide a scholarship to a local university to help business students pay tuition.

Crestmark has been recognized and awarded honors for being top supporters in many charitable causes. Each year, its volunteers lead ongoing initiatives that teach financial literacy and foster independence for adults in distress, underserved high-school students, survivors of sexual assault and domestic abuse, and others trying to make sound financial decisions. Additionally, individual offices rally around local causes including food banks, charitable walks and runs for over 10 charities, holiday collections for those in need, Habitat for Humanity, cancer support, student tutoring, professional mentoring, scholarship funds, and other causes that are personal to our employees. Crestmark offers employee matching for charitable contributions and encourages teams of co-workers to participate in service activities—on and off the clock. Simply put: Crestmark employees help people. And they’re proud of it.

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ENGS: Spreading Warmth During this unusually frosty southern winter, ENGS Commercial Capital spread some warmth in their community by sponsoring a coat drive. ENGS’ team members rallied together to collect coats, hats, scarves, and gloves to donate to Jessie’s Place, a local nonprofit shelter for women and children. ENGS was able to help keep 30 persons a little warmer this holiday season by bringing them cold- weather clothing items. But there are still so many women and children who are struggling. Please join ENGS in its continuing efforts to provide support to the hundreds of thousands of families across the nation who call a shelter home. For more information on how you can partner with ENGS to make a difference in the lives of women and children, please contact Azurdee Ramasar at aramasar@engsfinance.com. Jessie’s Place serves as a safe haven for women and children by providing the tools necessary to help them become strong and self-sufficient. You can learn more about their mission by visiting https://jimmiehalemission.com/ ministries-more/jessies-place/. To make

ENGS employees, Erin Kilpatrick and Kenneth Haley, collected Winter clothing items for Jessie’s Place, which serves as a safe haven for women and children by providing the tools necessary to help them become strong and self-sufficient. an impact in your community, please visit https://www.homelessshelterdirec-

tory.org/ to find a service opportunity near you.

Express Trade Capital: Lending a Hand in the Industry and the Community Express Trade Capital’s team takes pride in their ability to help entrepreneurs and designers at all levels. As a private lender, ETC’s knowledge base includes a variety of flexible and creative solutions to help entrepreneurs get the financial assistance they need without falling into debt or giving up equity. The ETC management team loves to host and attend info sessions at incubators to help business owners plan and execute their finances wisely as they grow. Last fall, they hosted an info-session at Project JUST in Brooklyn, an incubator devoted to ecofriendly apparel designers and manufacturers. So many businesses struggle not because they aren’t viable, but because they don’t know how best to manage their finances in a sustainable way. Express Trade is always happy to help these businesses, whether they become clients or not. ETC’s executives also find immense satisfaction in donating to worthy causes that either relate to our industry or help those in need in the local area. The business

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Some of the Express Trade Capital team members who assist business owners. regularly donates to charities like Two Ten, an organization that assists footwear employees and their families with scholarships, disaster relief, job opportunities and emergency financial assistance for those struggling to make ends meet.

Helping those in need and particularly, those close to the industries Express Trade Capital finances, brings ETC closer to the community and invigorates the team as individuals.

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Gerber Finance Inc.: Employees Volunteer For a Week of Service This October, Gerber Finance Inc. partnered with three nonprofit organizations for a week of hunger relief-focused volunteering in New York City.

In keeping with Gerber’s long history of philanthropy, and passion to do more, company leaders noted the importance of giving back to the community. “We are essentially a service business working with and learning from a broad spectrum of industries and knowledgeable entrepreneurs. It is now the time to use the skills we have learned over the years towards a greater good of giving back in ways that not only solve their temporary need, but, in the long term, help them improve their own financial situation,” said Gerald Joseph, CEO, Gerber Finance Inc. Employees volunteered among three organizations to make a positive impact on the effort to provide food to the hungry. This inaugural week of service reinforced Gerber’s commitment to helping those in need, and served to kickstart Gerber’s efforts to aid in hunger relief in 2018.

Volunteering Opportunities Included: BRC: Volunteers worked alongside members of the BRC Horizons Workforce Development Program to help prepare and serve lunch to clients of the Bowery Residents’ Committee. Carter Burden Network, a leading aging services organization: Volunteers provided meal delivery and caring company to NYC home-bound seniors.

Gerber team members volunteering with Carter Burden Network. From Left to Right: Entela Semini, Elena Goynatsky, Jennifer Palmer, Lori Miller and Augusta Melendez.

goal for coats donated. West Side Campaign Against Hunger: Volunteers helped in the supermarket-style food pantry by stocking shelves, bagging food, breaking down boxes, and assisting customers. Additionally, during the holidays, Gerber employees participated in the New York Cares Coat Drive, achieving 180% of Gerber’s internal company

“While we have often volunteered in the past, the week of service in October and the coat drive for the holidays mark the initial stages of our committed long-term philanthropic plan that we are formally rolling out this year. While it is easy to donate money, we believe that to truly make an impact, we must also dedicate our time. Moving forward, each quarter our staff will spend a week

in the community working to reduce hunger locally,” said Jennifer Palmer, president, Gerber Finance Inc.

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Gordon Brothers: A Tradition of Giving Back Gordon Brothers has a longstanding tradition of giving back. Over the past 115 years, four generations of Gordon/Frieze family leadership have built a culture of community engagement. Today, Gordon Brothers performs service on a company-wide basis, directly supports a variety of philanthropies, and encourages employees to give back in their own communities. Internally, the company promotes families whose children are treated at Boston Children’s Hospital. Additionally, community service and engagement the Phil Frieze & Phil Gordon Award recby giving employees three days of ognizes an employee who demonstrates paid volunteer time to support a inspirational leadership, exceptional cause of their choice. In addition, Gordon Brothers celebrates “Global Giveback Day,” a group community service event at each of the company’s 25 offices around the world. The firm’s holiday campaign of giving, on behalf of clients and partners, directly supports a range of charitable organizations, including Direct Relief in 2017 to support victims of disasters internaGordon employees joined together to make a difference on their Global Giveback Day 2017. tionally. Gordon Brothers also offers two scholarship programs: the Gordon Brothers Scholarship for Excellence at the Terry J. Lundgren Center for Retailing in partnership with the University of Arizona, to support the development of future retail leaders; and the John A. Lima Memorial Scholarship in memory of Lima’s dedication to the appraisal industry, to support employees’ children pursuing education. The Gordon/Frieze family leadership continues to promote community engagement through their own traditions. The Phil & Bernice Frieze Annual Golf Tournament, which is sponsored and organized by Gordon Brothers employees, has raised $2.8 million since 1994 to help ease the financial burden on

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humanity, courage in the face of adversity and exemplary community service each year. The culture of community involvement extends deeply into the values and activities of employees at Gordon Brothers too. Today, employee-managed campaigns support a variety of causes, including Toys for Tots, The Jimmy Fund, Walk to Defeat ALS, Cycle for Survival, and The United Way Campaign, among others. Gordon Brothers matches these donations. “I think it can be hard in a business environment to appreciate the humanity of the people and companies we work with. Social responsibility and giving back is one way for us to do that

at Gordon Brothers. We’re a familyrun business guided by a strong set of values. Our commitment to giving back helps us stay true to that character and is a way for us all to connect and join together,” said Ken Frieze, CEO.

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Hilco Global: Giving Back is a Team Effort Hilco Global is in the business of understanding and enhancing the value of both tangible and intangible assets and maximizing that value fully. This same focus extends to the company’s approach to giving back to those in need. “Hilco Helps” is a company-wide initiative to help enhance the lives and maximize the potential of the most important type of assets... human assets. Hilco Global seeks to improve the lives of those in need (often children) in communities that are underserved and require assistance to maximize their full potential. The company calls its cause-marketing efforts “Hilco Helps”. Hilco Helps is the company’s corporate giving program which allows it to put employees’ and Hilco’s resources to work, supporting children’s education and arts programs, urban anti-violence programs, disease prevention, and disaster relief efforts. In 2017, Hilco Helps helped to raise over $1.2 million dollars (through in-kind donations, direct donations, and marketing efforts/sponsorship) in support of several organizations doing outstanding work. In addition to direct financial support, employees donated time to relief efforts in disaster zones, churches, schools, etc. across the country and provided internship opportunities to mentor and engage Chicago’s youth. This past year, Hilco Global continued its strong support and partnership with two Chicago-based youth organizations, Youth Guidance/BAM and Chicago Youth All-Stars. Both groups focus on providing thousands of Chicago’s most vulnerable inner-city youth with assistance to stay in school, increase high school graduation rates and go on to college and beyond, leading a productive work life. In support of these worthwhile causes, Hilco Global continues to serve as the title sponsor for the annual Youth Guidance Gala, helping to raise over $800,000 for the organization this year, and helping to build-out a theatre program for the kids at Chicago All Stars. In addition, during the summer Hilco Global hosted five high school and college-aged inner-city youths and provided paid internships at its global headquarters in Northbrook, IL.,

Team Hilco Global at the 2017 Chicago JP Morgan Corporate Challenge.

teaching and training important skills that will help them throughout their personal and professional lives. Additionally, in the wake of the 2017 devastating hurricanes, Hilco Global and its employees sprang to action to help those in areas that were most impacted by the devastating storms. In all, Hilco Global donated and distributed over $450,000 worth of food, cleaning supplies, insect repellent and direct financial support which were donated to causes that were instrumental in getting relief to those who needed it most, including the American Red Cross, the Rebuild Texas Fund and Florida Disaster Fund. As in past years, the Hilco Helps employee match and sponsorship

programs donated auction proceeds and employee matching support to several worthwhile organizations totaling more than $100,000, to important charities such as American Jewish Committee, Jewish National Fund, One Star Foundation, Headstrong Project, Karin Foundation, Back 2 School Illinois, and various food banks across North America. Hilco Global remains committed to growing the Hilco Helps program to better serve the communities and helping those in need.

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InterNex Capital, Simrita Singh: Mentoring High School Students Simrita Singh, director of marketing at InterNex Capital, has been volunteering with an organization called Hire Cause since 2015. Hire Cause is a cooperative learning program where students work in teams of three-to-five students to raise awareness and capital for their preferred charities, while being coached by top professionals from all sectors of industry. The mission is to provide NYC students with the unique opportunity to supplement their traditional public-school education with real-world projects that have a positive impact in the community as well as their growth/ development for the future. Simrita works closely with the Hire Cause team to mentor high school students to help

them determine what they want to do in the future and learn business skill sets. The high-school students have unique access to mentors who assist with their business development skills. Students as young as freshman have the opportunity to work on real-life business cases while gaining exposure to fundraising, team building and innovation. Hire Cause focuses on driving engagement between companies and students around meaningful causes that make the world a better place, inspiring students and companies to

contribute, lead and grow together. Hire Cause provides programs to the high school classes that allow students to work on their current skill set while also expanding their skill set with the help of executives and entrepreneurs. Visit their website, www.myhirecause.com, to learn about their existing programs and how you can join the Hire Cause community!

MB Business Capital: Fostering the Spirit of Volunteerism MB and its employees are committed to building strong and vibrant communities they where live and work. This spirit of giving back is fundamental to the company’s culture culture. Below is a list of the key charitable activities MB employees supported in 2017, but certainly is not all-inclusive. MB On the Block Education An initiative aimed at helping low- and moderate-income students in Chicago secure a livable wage. MB on the Block: Education provides services to over 800 students at Gage Park High School and Wells Community Academy High School that address the complex issues often facing this student population of urban youth. Each student receives support, starting their freshman year and continuing beyond graduation with ongoing college and job training assistance. MB On the Block Volunteer Day Through service projects, MB employees donated 2,000 hours of service in a single day. The 2017 “MB on the Block” Volunteer Day supported 45 service projects for 30+ nonprofits across Chicagoland. 550 employees participated in the 7th annual Volunteer Day. The annual Light the Night Walk, benefitting the Leukemia & Lymphoma Society.

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Over 75 employees participated and countless others helped make MB the #2 fundraising team across Chicagoland, raising more than $40,000. American Red Cross “MB Bat for Charity” is the annual softball tournament with proceeds benefitting the American Red Cross. American Cancer Society - Making Strides against Breast Cancer Walk Over 75 employees participated and countless others helped raise more than $30,000 Employee Volunteer Awards Additionally, MB honors the work that employees do on their own to help serve nonprofit organizations that help low- and moderate-income communities by awarding grants to these organizations on behalf of its employees. In 2017, MB honored employees who volunteered or served on boards for Tutoring Chicago, Launch U, Nto

Otong Association, Chicago Collegiate Charter School and Chicago Alliance against Sexual Exploitation. ◗ Martha Gaski volunteers and fundraises for the Leukemia and Lymphoma Society (LLS) each year. She has personally raised over $2,500 and, in addition, she recruits people to also participate and fundraise. Martha has been a part of planning and contributing event giveaways (gift baskets, etc.) for the fundraising events for LLS each year. ◗ Susan Davis-Rosemont volunteers at her church as a Facilitator in a Work Meets Faith Small Group and is also a Lector at Mass. Susan is also on MB’s committee for Leukemia and Lymphoma Society’s Light the Night Walk and Fundraising. She is also on the board for Loquate, which is a non-profit Catholic organization, 8 hours per month. John Robinson-Maryland is the Treasurer, Board Member and

COMMUNITY INVOLVEMENT annually in MB’s On the Block volunteer day at the Anixter Center in Chicago. This is a half day of service. ◗ William Stapel-Rosemont recently joined PACTT’s board. PACTT is a non-for-profit that provides education, residential, and vocational programs to support children and adults with autism in becoming engaged members of their families and communities. http://www. pactt.org/about/ MB’s softball team knocks it out of the park in support of the American Red Cross. volunteer for the Baltimore City ToolBank. A non-profit organization that provides all kinds of tools, from hammers and rakes to chain saws and power generators for a nominal rental fee (3% of retail cost) to other area charities to em-

power their projects and initiatives. In 2017, the local Baltimore ToolBank loaned over $2.0MM worth of tools to empower more than 50,000 volunteers for projects throughout the state of Maryland. ◗ Dion Heintz-Rosemont participates

◗ Heidi Luck is the Director and Secretary of the Bolton Land Trust, a tax-exempt, non-profit organization founded in 2001. Led by a 15-member volunteer board of directors, the Trust is supported by 295 members and has preserved 190 acres in Bolton, CT as of January, 2017. https://www.mbfinancial.com/about-us/ corporate-giving

North Mill Capital: A Tradition of Giving Back North Mill Capital’s Minneapolis team has always found the time to volunteer and participate in various charitable events. In the past they have collected toys for Toys for Tots, food for local food pantries, and newspaper and cardboard for the Humane Society. In addition to collecting items for the needy, they have volunteered their time to sign cards for the Salvation Army for Veterans and participated at various walk-a-thons. Rochelle Hilson, senior vice president and chief operating officer of Invoice Based Financing, says, “This year we adopted a specific family in St. Paul, Minnesota. It was a very rewarding experience as we provided gifts and gift cards for a family with five children for the holidays.” In 2018 North Mill Capital LLC will continue with its volunteering and community service efforts by assembling Bravery Award Packs for children in hospitals through Jersey Cares.

North Mill Capital team members with their Toys for Tots donations.

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Otterbourg P.C.: Internships for Underrepresented Law Students At Otterbourg P.C. giving back to the community, locally and nationally, is a long-standing tenet of the firm’s culture. In addition to the individual efforts of their lawyers, both in terms of volunteering time and annual financial contributions to a variety of charitable causes, Otterbourg, as a firm, decided to put their commitment to diversity and diversity-related programs both in its workplace and the community- at-large into action by partnering with Sponsors for Economic Opportunity (SEO). The firm believes that a diverse work environment enhances any organization’s ability to provide the highest quality of services to its clients while simultaneously enriching the experience for all employees. In 2006, Otterbourg began its partnership with SEO. At that time, they were one of only 17 law firms in all of New York City participating in SEO’s Career Program in Corporate Law. Today, there are 35 participating law firms in New York City and Otterbourg is still one of the few mid-size firms that is an intern sponsor. For more than 20 years, SEO remains the only program of its kind in providing summer internship opportunities at the most prestigious law firms in New York City to promising underrepresented incoming law students,

each of whom has both exceptional promise and demonstrated accomplishments in their undergraduate careers. The SEO interns are at Otterbourg for 10 weeks during the summer prior to their entrance to law school and receive a weekly salary. In addition to their actual law firm experience, the interns participate in an intensive law school preparatory program designed to support their academic performance in law school. All of its lawyers are enthusiastic par-

satisfying for its lawyers is that the relationships with these students goes beyond the 10 weeks they are at the firm, with many of them keeping in touch with their Otterbourg mentors throughout the trials and tribulations of law school and thereafter. Otterbourg’s commitment to SEO and diversity doesn’t end with incoming law students and the legal profession. Each year, the firm, as well as individual Otterbourg lawyers, make generous financial contributions to

ticipants in the SEO program in a variety of capacities whether assisting SEO interns with their individual projects, fulfilling mentoring roles, and/or participating in panel programs presented to all 100 SEO interns in New York on a wide range of topics such as, how to successfully interview for your first job, how to obtain a judicial clerkship, and what it’s like to be a litigator, to name just a few. Everyone gets something out of the SEO program, and they all look forward to the SEO Interns arrival each summer. For those who are already practicing law, there is a great sense of satisfaction in being a part of the beginning of a young person’s journey in the practice of law; it is both reaffirming and inspiring. Equally

the SEO Scholars Program, a free eight-year academic program that readies underserved public high school students to gain admission and attend college with a 90% graduation rate. SEO is an organization that has made and continues to make a real difference in the lives of young people and Otterbourg is proud to be one of its long-time partners. In addition to the Corporate Law program, SEO coordinates similar fellowship programs with corporate, bank, and hedge fund partners. If you are interested in learning more about those opportunities, visit SEO’s website at www.seo-usa.org.

Paul Hastings: Offering Guidance Through Complex Legal Issues Paul Hastings has worked on numerous impressive community and social responsibility initiatives, but wanted to align CSR commitment with their purpose – what they value and how they practice. To do this, they needed to put action to their goal to make a bigger impact in the world and to their business and their clients’ businesses. They reinvented their CSR program to have a bigger impact on communities, and their business. In early 2015, they created a program with The Aspen Institute, through which they guide Fellows of the Resnick Aspen Action Forum through complex legal issues in areas such as gender empowerment, education, equality, environmental sustainability, poverty and health. Paul Hastings helps some of the most innovative leaders in their field — people with amazing ideas — create change in their communities. Their lawyers are

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The Aspen Institute Action Forum, where Paul Hastings and other leaders come together to discuss complex social issues.

COMMUNITY INVOLVEMENT

tasked with helping Aspen Leadership Fellows not only because it’s the best way to deploy their talent and resources as a law firm, but because they saw it as an opportunity for lawyers to engage with social entrepreneurs, innovators and impact leaders. With Aspen’s access to 2,000 global leaders and their hand picking of the most innovative social change programs on the planet, they identified the perfect partner. Paul Hastings has partnered with Aspen Fellows on projects from Wash-

ington, D.C. to Hong Kong, providing them with close to half a million dollars’ worth of legal expertise over the last six months and growing exponentially. As an example, Paul Hastings helped an entrepreneurial education company, Green Business BASE CAMP, develop an eLearning platform to bring sustainable innovation education to a broader audience. In Hong Kong, they are providing support to Light Be, co-tenancy rental service targeted at needy single-mother families, which has figured out how to turn properties of landlords into homes

for the less privileged. The firm has helped Aspen with their mission to aid leaders to move from “success to significance” and, in the process, Paul Hastings is helping their own people use their success as practitioners to be more significant. Paul Hastings has created a CSR commitment that is symmetrical to their business and to their clients’ business – creating a virtuous circle between commitment, impact and practice of law.

Republic Business Credit: Paid Internships for Young Men in Need Son of a Saint Organization, a New Orleans-based charity, recognized Republic Business Credit during its Fifth Annual Gala as one of the Sponsors of the Year.

Son of a Saint’s mission is to support boys through mentorship, education, recreation, camaraderie, cultural enrichment, emotional support and help to fill the void for dozens of fatherless young men in New Orleans. New Orleans-headquartered Republic Business Credit has been a long-time supporter of Son of a Saint. Republic has sponsored activities with the organization, as well as programs such as paid internships during the summer of 2017 for three young men from the Son of a Saint organization. The internship included interviews and full work experience for the mentees. “From the commencement of the interviews through their entire time with us, the young men of Son of a Saint were great examples of the benefits of an organization such as Son of a Saint,” said Stewart Chesters, Chief Executive Officer of Republic. “They interviewed strongly, had a great work ethic and I personally loved their desire to learn and interact. They were all not only excellent advocates of the organization, but were also very professional young men.” “It energized our whole team having

Republic Business Credit team members at the Son of a Saint Gala.

the boys work with us, while providing them with the insight into working in the financial services industry,” said Danika Louis, Portfolio Manager of Republic. “Our whole team enjoyed having them onboard and this strengthened our resolve to continue to support the work and objectives of Sonny Lee and his team at Son of the Saint.” “The level of sponsorship we’ve re-

ceived throughout 2017 has been nextlevel, and that support has elevated our program to new heights,” said Bivian “Sonny” Lee III, Founder and President of Son of a Saint. “We’re proud to present our 2017 Sponsor of the Year Award to Republic Business Credit, and to acknowledge its generosity, loyalty and unwavering commitment to champion our mission and help our boys. We’re deeply grateful.”

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Robert Sandler: Cycling for MS Robert Sandler, past CFA chairman, has been an avid cyclist for decades. In 1970, he and fellow riders founded the County Cycle Club, now the Westchester Cycle Club, some 1500 strong. They ride all over Westchester; you may see them on the local roads. Sandler has also ridden long distances in the past, and when his children were in camp near Hanover, New Hampshire, he and a friend rode the 250 miles from White Plains over three days for visiting day. “That was a long trip in the heat of the summer but a worthwhile effort filled with great memories. Little did I know the other memories that would result from my love of cycling,” Sandler said. In the summer of 2000 he went to his local drug store and on the counter lay a brochure for the National MS Society with information about a fundraiser ride across the beautiful Hudson River. “I thought that it would be a wonderful way to honor my niece, who was dealing with MS for a number of years, raise some funds for MS and ride across the iconic Tappan Zee Bridge. So, I signed up,” Sandler explained. Later that summer, he drafted his first MS solicitation letter and mailed it to business associates, friends and family. “The result that year was both surprising and humbling. I received nearly $15,000 for the cause! As I rode across the Tappan Zee Bridge and on to Rockland County State Park and back that autumn morning, little did I know that this would be the start of something great,” said Sandler. Later that month, the local MS Society invited Sandler to have lunch in White Plains. There they thanked him for an outstanding fundraising effort and strongly encouraged him to return again for next year’s ride. “Well, that next year turned into the next 18 years, and the number of supporters and funds received has remained strong,” he said. In 2012 the ride was merged with NYC, and now Sandler rides the 30 miles around Manhattan. “Over the years, I have been joined by my sons, James and

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Robert Sandler with his son and nephew at a MS society event in October 2017.

Thomas, along with my nephew Fredric. Rain or shine, each year has been an amazing and gratifying experience. At 7 a.m., we and thousands of riders begin on the West Side Highway at The Intrepid Museum, head south past the Freedom Tower, circle Battery Park, and meet the sun rising as we venture north on the FDR Drive. We go by The Brooklyn Bridge, the South Street Seaport and the United Nations, and after a brief snack at the top of Manhattan’s Inwood Park, we continue south down the Henry Hudson Parkway past the GW Bridge and on to the finish line where cheering crowds always welcome us,” Sandler said. Yes, his pace has diminished a bit each year; however, the personal rewards profoundly increase. “This past October, my eighteenth ride, I raised over $25,000 from over 200 loyal contributors, placing me as the fourth

highest fundraiser among nearly 4000 participants. In fact, I am proud to say that I have been one of the top ten fundraisers for each year I have ridden The MS Bike Tour. I could not have achieved this without each and every supporter these many years, and together we have raised in excess of $400,000 for support in patient care and significant research to help search for a cure for this elusive disease,” Sandler said. “For me it’s one year at a time,...for many years to come.”

COMMUNITY INVOLVEMENT

Scherzer International: Service Integral Part of Corporate Culture Service to our communities is a core part of Scherzer International. Both individually and in groups, SI’s employees invest time, brain power and sweat equity in volunteering and fundraisers year-round to make a positive impact on health, education and housing. Access to education and helping to improve the quality of life for underserved communities and individuals are the bedrock issues at the heart of our programs. As part of the company’s commitment to education, SI provides a need-based scholarship to Moorpark College and supports C5LA, a leadership development and college preparatory program for high-potential teens. Through SI’s work with C5LA, the company has helped raise significant funds for the organization and in 2017 SI expanded its internship program to include students from C5LA. In 2018 SI’s president, Larry Scherzer, took on the role of C5LA’s Chairman of the Board. SI’s internship program also includes college students from local universities as well as collegeaged children of employees and friends of the firm. Interns are trained alongside our employees and experience firsthand what it is like to work in a professional environment, but the positive impact of these bright students and their ideas on SI’s culture and business is immeasurable! Employee participation is at the heart of everything SI does, from its holiday toy drive for the Child and Family Guidance Center — where Carole Scherzer sits on the board — to organizing events and raising funds for the American Heart Association and the Arthritis Foundation. Each year, employees and their families participate in the Arthritis Foundation’s 5K Jingle Bell Run. This event brings the company together as a team to support each other as well as to support research into finding a cure for adult and juvenile arthritis. SI’s community involvement stems from its commitment to supporting employees and the community. The organizations and causes SI works with have a personal connection to many team members, so in addition to the company-

Larry and Carole Scherzer along with Scherzer International employees and their families at the finish line of The 2017 Jingle Bell Run.

wide programs, SI also encourages its employees to put forward their own initiatives and enlist their colleagues’ engagement. These activities range from company-wide support of employees’ children’s school activities to donating

food, clothing, computer equipment and furniture to various organizations. As Larry Scherzer said, “There has never been a question about the importance of giving back to our communities.”

Security Business Capital: Sponsor of Special-Needs School Security Business Capital is a proud sponsor of the Bynum School in Midland, Texas. Bynum is a non-profit, private, and faith-based accredited school that provides year-round services for children and adults with special needs. Bynum offers individualized and comprehensive programs to meet the needs of their students, starting from age three to adulthood. Security Business Capital has supported Bynum in the past year by sponsoring a day camp at the Midland RockHounds’ facility, a Double-A Minor League Baseball (MiLB) team located in Midland. Several RockHounds players helped the students learn basic running, hitting, throwing and catching skills. The students were able to interact with the baseball players for the day and enjoyed an event full of fellowship and food.

Security Business Capital also hosted the inaugural Bynum Weekend at the RockHounds. For three home games, the RockHounds players wore specially made jerseys featuring the Bynum student’s handprints. On the last night, the jerseys were auctioned off to raise money for the school. Security Business Capital was able to promote community awareness of the Bynum School as well as raise almost $15,000 through this event. Security Business Capital is gearing up to host the camp again in 2018 and plan on making the second annual Bynum weekend

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Synovus: Honoring Heroes and Help Through the Storm

The Bynum School students and staff with the Midland Rockhound players and Security Business Capital staff gathered for a group picture after the Bynum Day Camp at the Rockhounds May 2017. at the RockHounds an even bigger success than the first! This past December, Security Business Capital also adopted a Bynum classroom to help purchase some classroom wish list items. They were able to deliver the Christ-

mas gifts in person and enjoyed getting to know the students. Security Business Capital is fortunate to be able to partner with such an amazing school filled with wonderful educators and students.

Vion Investments: Fighting Hunger Vion Investments volunteered their time and energy to quality check, sort, package and prepare for distribution donations of food and grocery products for the Atlanta Community Food Bank.

The Vion team helping out at Atlanta Community Food Bank.

The Atlanta Community Food Bank serves the community in 29 counties across metro Atlanta and north Georgia. In the 2016-2017 fiscal year, the ACFB distributed a total of 63.9 million pounds of food and grocery products, which amounted to roughly 56.4 million meals. Spending one day each quarter working with this nonprofit organization to fight hunger by engaging, educating, and empowering the community is something that

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Vion is passionate about. “Atlanta is a great city, but it still needs a lot of organic support. If we can make a difference, even a little one, to those who lack consistent access to food and resources, it’s absolutely worth our time” said President and CEO Stacey Schacter. Vion Investments has volunteered annually for the last eight years, including projects in Toys for Tots, Habitat for Humanity, and the Feeding America network.

“Honoring Our Heroes” community event: Team members across Synovus’ five state footprint celebrated military, public safety officers and first-responders during the company’s first-ever “Honoring our Heroes” community outreach in September. Picnic lunches and meal deliveries to fire stations and precincts were provided to on-duty first responders throughout the footprint. Team members collected blankets, clothing and food staples for homeless veterans, and others worked on home renovation projects for elderly or disabled veterans. Several banks partnered with Operation Shoe Box and Support our Soldiers to send care packages to overseas military members, with one bank collecting more than 200 pounds of snacks, toiletries, video games and other items. And more than 5,000 thank-you notes — more than one per team member — were hand-written and mailed to community heroes and military members. Synovus team members demonstrated that Here Matters after Hurricane Irma. As Hurricane Irma approached south Florida, team members at Synovus headquarters in Columbus, Georgia, began assembling a rapid-response convoy for dispatch immediately after the storm cleared. Early on the morning of Wednesday, September 13, as southbound roads began to re-open, five trucks and eight Synovus team members departed Columbus for Collier and Lee Counties, Florida; 12 hours later, the team arrived. Using branches in Naples and Fort Myers as staging areas, the Synovus team distributed 600 cases of water, gas generators, lumber, carpentry tools and other building supplies, and began helping local colleagues and residents with clearing and clean-up efforts. The team returned to Columbus Friday night. Around the footprint, Synovus team members raised $18,000 and the company contributed an additional $10,000 for distribution to team members with immediate needs and for community relief efforts. Disbursement of Irma relief funds is already in progress.

COMMUNITY INVOLVEMENT

Wells Fargo Capital Finance: Team Members Donate their Time In the spirit of giving back, many people will decide to simply write a check as their way to contribute. However, for Wells Fargo Capital Finance, team members took their passion for community involvement to a new level and created a program that matched the Wells Fargo monetary donation with their volunteer hours for a local charity of their choice. Each year, Wells Fargo Capital Finance donates nearly $1,000,000 to over 250 nonprofits across the country, targeting organizations that are deep-rooted in the communities of team members but do not have the advantage of receiving national support. “Making a difference in someone’s life is incredibly rewarding. It’s easy to donate money, but what people don’t realize is that many charities are in need of volunteers,” said Ron Abenante, part of Wells Fargo Capital Finance. “What is special about Wells Fargo is that the company recognizes the need and encourages team members to be active participants and show our support. We are each given two full days of paid leave a year to use for community service, which is something we all value and enjoy.” For 25 years, team members at Wells Fargo Capital Finance have formed personal relationships with their local charities — from putting together backpacks for students, creating safe havens for abused women and children, to completing wheelchair builds for veterans and hundreds more. Many of the volunteer hours happen throughout the year, on weekends and weeknights or when the charity reaches out for community support. Every September Wells Fargo hosts a community support campaign that runs the duration of the entire month. During the month, team members across the globe raise money, awareness and volunteer to support charities and organizations in their communities. “I’ve worked at Wells Fargo for 31

years and feel very fortunate to work for a company that values and supports nonprofits and the awareness team members try to bring to these programs. We are all impacted one way or another by a cause that is dear to our hearts,”

Wells Fargo Capital Finance team members getting reach to serve a Thanksgiving holiday lunch at My Friend’s Place.

says Brenda Moseley, Wells Fargo Capital Finance. “The people who run many of these local charities started them because they were impacted personally and want to make a difference by being able to help others. I believe starting organizations like these and supporting charitable causes is the most important job in the world and is truly admirable and heroic.”

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CSR

Corporate Social Responsibility: What’s at Stake for Business Leaders Today

BY JESSICA STAHELI Jessica Staheli, of Scherzer International, explores the importance of “giving back” in today’s business environment.

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Corporate Social Responsibility (CSR) and community involvement has been part of business for over 50 years, but the last decade has seen an increased focus and now some form of CSR is expected by clients and customers in all arenas. A simple Google search on CSR and banks turns up a long list of lenders’ CSR programs, ranging from wide environmental concerns to supporting local charities. While CSR is not regulated in the U.S. (one of its main features is that the company takes its own initiative to “give back” and “conserve”), the paradigm shift has seen the creation of B-Corps, Certified Community Development Financial Institutions (CDFIs), socially responsible investments and impact investing. Most recently, The New York Times reported on BlackRock founder Lawrence Fink’s letter stating that companies “need to contribute to society as well if they want to receive the support of BlackRock.” With $1.7 trillion in active funds, Blackrock’s statement carries significant weight and has certainly reignited conversations about CSR and its place in business. For decades, business leaders and researchers have debated what type of impact CSR has on the bottom line, but a robust “meta-study” conducted in 2004 of 52 separate studies on the topic, came to the very simple conclusion that “corporate virtue in the form of social and, to a lesser extent, environmental responsibility, is rewarding in more ways than one.” More recent studies agree and indicate that CSR is good not only for our communities, but also has a positive impact on recruitment and talent retention, building new networks, competitive advantages, and attracting new clients. Several articles, including those by the Harvard Business Review and Forbes suggest that stakeholder engagement – in addition to shareholder engagement – contributes to healthier financial statements. As one HBR article put it, “[CSR]has emerged as an inescapable priority for business leaders in every country.” We can’t talk about stakeholder engagement and CSR without looking at the impact Millennials are having on corporate culture. It’s estimated that

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there are over 80 million Millennials in the U.S. with $200 billion in buying power. Equally significant is this generation’s attitude toward charitable work and giving back to the community. Almost 90% of Millennials donate to charity, with the majority of them donating roughly $600 a year and, while many may still think of Millennials as “youngsters,” the oldest of this group are approaching 40 years old. As this population – the largest living generation – continues to influence (and begins to lead) businesses, we’re likely to see corporate responsibility become even more ingrained as businesses and

Business Credit and their chosen community program with Son of a Saint. The decision to support Son of a Saint, which provides, “mentorship, education, recreation, camaraderie, cultural enrichment, emotional support and helps to fill the void for dozens of fatherless young men in New Orleans” stemmed from their desire to choose a way to give back that would engage employees in their “local roots.” As Chesters noted, while financial support is important, “a check in and of itself doesn’t create team spirit.” The leadership at Republic Business Credit saw multiple ways they could

The leadership at Republic Business Credit saw multiple ways they could help with Son of a Saint and now every employee at Republic Business Credit participates in some way. The lender takes a hands-on approach by offering an internship program that facilitates access to senior management to ask questions and engages interns in everyday business operations. financial institutions vie for the best talent and respond to demands in the marketplace. Several interviews conducted with CFA member firms reflected both the research cited above as well as recognition of the impact of the next generation of leaders. A conversation with Stewart Chesters, CEO of Republic Business Credit, LLC headquartered in New Orleans, points to the impact employees and, perhaps, especially Millennials, are having on decisions about CSR. Republic Business Credit is somewhat unique in that 50% of its employees are under 35 years old, which places them squarely in the Millennial generation (though Chesters prefers to refer to this generation as simply “younger”). Chesters has observed that this “younger profile team …likes to be involved in projects and value community development,” so offering them an opportunity to take the lead in a CSR program is a “double-win” for everyone at Republic

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help with Son of a Saint and now every employee at Republic Business Credit participates in some way. The lender takes a hands-on approach by offering an internship program that facilitates access to senior management to ask questions and engages interns in everyday business operations. Chesters commented that one benefit of the internship program is that many of the young men from Son of a Saint “don’t often consider office work as viable work and it isn’t as boring as they think!” Additionally, the lender enacted a fair wage policy for their interns because the company believes it is important for interns “to feel what it’s like to get a paycheck for their work.” Chesters stressed that employee involvement at every level underscores Republic Business Credit’s approach to community involvement and that partnering with Son of a Saint came from asking employees to suggest organizations they thought the company should

support. In addition to this centralized program, the company supports other efforts driven by staff such as collecting clothing and delivering it to Houston after Hurricane Harvey, being a recycling collection center for Mardi Gras beads that are then delivered to Son of a Saint and extending the internship program to employees’ families. When asked about the positive impact to Republic Business Credit’s “bottom line,” Chesters reiterated the need for real engagement and development in employees, stating that, “anything you can do to attract talent helps the bottom line.” That said, the CEO takes the longview on this, observing that “the commercial finance industry is constantly changing” and companies need to be alert to new ideas for stakeholders, both internally and externally. Hands-on employee involvement is also a priority at Gordon Brothers and a conversation with Michael and Ken Frieze (chairman and CEO, respectively) revealed how deeply ingrained community support is at their firm. This large organization’s contributions take many forms, ranging from their well-known Annual Charity Golf Tournament to an international “Global Give Back Day” to individual service events in local areas, but the driving force behind all these activities are the people at Gordon Brothers. As noted earlier in this article, several studies have emphasized the positive impact a strong CSR program can make on corporate culture and Gordon Brothers incorporates its commitment to giving back into its hiring process. In our conversation, Michael struck a familiar note observing that in “today’s world, people are attracted to firms with strong values and corporate culture.” His firm shows its support by giving employees paid days for their own community activities as well as matching grants to organizations supported by employees. In addition to these individual approaches, Gordon Brothers employees from around the world participate in their Global Giveback Day, which both Ken and Michael view as an engaging opportunity where

“the bonding contributes to corporate culture.” When asked about a proudest accomplishment through their CSR programs, Michael didn’t hesitate in his response that it is the “employees who have stepped up to become involved,” adding, “that’s the real legacy.” In fact, as Ken noted, the idea for their Annual Charity Golf Tournament came from an employee and still – 25 years later – “employees run the show.” This annual charity tournament is well-known to many TSL readers and brings together professionals throughout our industry to provide support to families dealing with the serious illness of a child. This type of event is a good example of the cyclical advantages of CSR as it combines both a solid benefit to families in need, while also helping the lending community thrive, which in turn helps businesses to “pay it forward” in their own communities. When asked how Gordon Brothers chose to emphasize CSR and community involvement, Ken stated that “decisions are put into place because they are the right thing to do” and reflect the organization’s values. Many large firms have taken their CSR programs global to make a real impact on all parts of the world where they do business. Meg Sullivan, chief business development, marketing and CSR officer for Paul Hastings who spearheaded the firm’s association with The Aspen Institute, a global organization dedicated to conversations to “to provoke, further and improve actions taken in the real world.” In early 2015, Paul Hastings’ created a program in which they guide Fellows of the Resnick Aspen Action Forum through complex legal issues in areas such as gender empowerment, education, equality, environmental sustainability, poverty and health. This global initiative came about when the firm decided to formally integrate corporate social responsibility into their strategy and has resulted in 98% of Paul Hastings’ attorneys participating in pro bono work around the world. When asked about the impetus for fully implementing this global strategy, Sullivan said that “business has a real role in participating and improving

the society around us,” adding that “in today’s world people want to be part of something bigger than themselves.” Through the Resnick Aspen Action Forum, Paul Hastings provided close to half a million dollars’ worth of legal expertise in just 6 months, which also begs the question – how does it impact the firm’s bottom line? Sullivan described the program as “an ethical commitment to give back” and with a 98% participation rate it seems Paul Hastings has had no trouble with attorneys stepping up. The positive impact to the firm has come through several avenues that include contributing to a positive corporate culture and talent management. The pro-

it,” said Sullivan. From wide-ranging research studies to conversations with our own CFA community, we see that corporate social responsibility and community involvement has become deeply ingrained in American business practices. In many cases, the impetus comes from an ethical commitment to help improve the world and communities in which we live and work, but it also shows an understanding that our business dealings do not exist separate from our global community. And, while some may find it uncomfortable to speak openly of CSR in connection to the bottom line, a company or lender that suffers significant financial loss then

Many large firms have taken their CSR programs global to make a real impact on all parts of the world where they do business. Meg Sullivan, chief business development, marketing and CSR officer for Paul Hastings’ who spearheaded the firm’s association with The Aspen Institute, a global organization dedicated to conversations to “to provoke, further and improve actions taken in the real world.” gram also offers participating attorneys expanded training, which broadens their expertise and adds to their professional development. Through their work with pro bono clients, Paul Hastings attorneys increase interaction in the marketplace, working on cases ranging from corporate structuring to tax and intellectual property law. Sullivan has seen that this expanded network and collaboration “builds stronger, more robust relationships.” Like others interviewed, Sullivan believes that a meaningful CSR program should be “100% intertwined” with the firm’s overall strategy and that employee engagement is critical. Paul Hastings’ pro bono efforts are “crowd-sourced” from the attorneys, rather than by a “topdown” mandate, which reflects their commitment to integrating CSR as “part and parcel of what we do and the way we do

also loses its ability to contribute to the economies that support the communities in which we live. Rather, it is the symbiotic relationship between business and community that can move us forward in a positive cycle that helps all of us grow. To quote Lawrence Fink’s letter, “To prosper over time, every company must not only deliver financial performance, but also show how it makes a positive contribution to society…. Without a sense of purpose, no company, either public or private, can achieve its full potential. It will ultimately lose the license to operate from key stakeholders.” TSL Jessica Staheli is an executive vice president with Scherzer International and serves as a member of the CFA Women in Commercial Finance Committee.

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CFA CHAPTERS GIVE BACK

CFA chapters share their experiences with their charity involvement over the years. Giving back allows the CFA chapter to further build a sense of community and camaraderie. BY EILEEN WUBBE

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Atlanta Chapter For CFA’s Atlanta Chapter, charities primarily revolve around children. The Chapter has several charities it has been active with during the past few years including CURE Childhood Cancer, Kate’s Club and Toys for Tots. Everyone in the Chapter takes turns donating time and volunteering with various charities. Children’s charities hit especially close to home for the Chapter. “We chose CURE because one of our former board members has a daughter that was diagnosed with bone cancer in 2012 and the family knew firsthand how impactful CURE was through her treatment,” said Stacy Odendahl, vice president, business development, Crestmark and Chapter President. “Involvement is on a monthly basis and we have been involved for about five years. She is in remission and it was recently announced that she is competing for the 2018 US Women’s World Championship Basketball team this summer in Germany, all while still in high school!” The Chapter has also been donating to Kate’s Club for three years. Kate’s Club, headquartered in Atlanta, offers top quality social and therapeutic programming designed specifically for grieving children and their families. Membership is free and open to any school-age child, between the ages of 5-18 who has lost a parent, sibling or primary caregiver. The biggest fundraiser for Kate’s Club is the Chapter’s annual golf outing, with 50% of all funds raised in the raffle going to Kate’s Club and 100% of mulligans going to Kate’s Club. The Chapter matches 100% of the mulligans and this year’s total was $3,500. The Chapter’s annual Atlanta Braves outing, where 20 tickets are donated to CURE patients and family members, is the Chapter’s largest source of fundraising. Joe Massaroni, director, SunTrust Robinson Humphrey, recruited more YoPros and analysts to become involved in the Chapter’s involvement with CURE, introducing potential new members. “It gives them exposure to CFA and

Atlanta Board Members, Morgan Hansen, Steven Gold, Pete Maglione, and Blake Kennedy, serving lunch to families at Children’s Hospital of Atlanta for CURE Childhood Cancer. Once a month, a team of board members go to CHOA to serve patients and their families, who are impacted by childhood cancer diagnoses. In addition to time, the Atlanta CFA donated $1,500 in 2017 through member ticket sales to an Atlanta United soccer game, which were matched by the Atlanta CFA. offers a positive experience,” Odendahl added. “We often get so caught up with the intensity of work that we can lose track of more important things going on around us,” said Steve Gold, president and CEO, Allied Financial and past Chapter President. “Volunteering and staying in touch with our community is vital to its success and overall well-being. Spending time at Egleston’s Children’s Hospital through CURE to serve lunch to the patients and families who are enduring such a difficult fight is the least that we can do. The smiles and appreciation that are shown makes us quickly realize what is really most important in life.” “We feel more connected to the community and it builds camaraderie among members through giving,” added Guy Camerlengo, vice president, Marquette Business Credit, and Chapter member. It also rounds out the Chapter’s mission – networking, education, community involvement.”

California Chapter The California Chapter CFCC Board voted to contribute $10 to the local Salvation Army for each paid registration attending its annual Holiday Party in 2017. “We had 192 paid attendees, so a contribution of $1,920.00 was made to the Salvation Army from the CFCC,” said Jason Anish, CEO of Austin Financial. “As the President of the CFCC, I am very proud of the group involvement of our members who supported this cause and other local charities through their respective organizations. The CFCC takes pride in being able to give back to the community, especially to those who are enduring hardships during the holiday season”. The Chapter plans to offer this option to holiday party attendees again this year.

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CFA’s Charotte Chapter supports Loaves & Fishes financially and volunteers to sort food. They also collect can openers in exchange for mulligans at the Chapter’s annual golf tournament.

Charlotte Chapter CFA’s Charlotte Chapter financially supports four local charities: Loaves & Fishes, Second Harvest Food Bank, Crisis Assistance Ministries and A Child’s Place. The Chapter donates leftover funds after its fiscal year and divides it among the four charities. Loaves & Fishes, which provides a

week’s worth of nutritionally balanced groceries to individuals and families experiencing a short-term crisis through a network of 30 emergency food pantries located throughout Mecklenburg County in North Carolina, benefits from Chapter volunteers helping to sort food. The Chapter also collects can openers in exchange for mulligans at its annual golf tournament. The Chapter works to collect donations for Second Harvest Food Bank, which provides a regional distribution

The Houston Chapter collected donations for Hurricane Harvey victims.

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warehouse and branches that supply food and grocery items to charitable agencies that assist people in need throughout 19 counties in North Carolina and South Carolina. A Child’s Place, an organization that represents homeless youth in Charlotte, benefits from the Chapter’s holiday toy drive while Crisis Assistance Ministry, which provides assistance and advocacy for people in financial crisis, helping them move toward self-sufficiency, receives financial support. “It is great to see everyone in jeans, at 4 o’clock in the afternoon, helping out and networking,” said Sylvia Stock, CFA Charlotte Chapter President and director of client services, Womble Bond Dickinson (US) LLP. “We encourage people to bring their children to help out and it helps bring more dimension to the Chapter member also.”

Houston Chapter For the Houston Chapter, 2017’s charity choice was simple: Hurricane Harvey. The Chapter had a private equity event planned for September, but things quickly changed and the focus turned to gathering items and donating money for those affected by Hurricane Harvey. “We made a small impact on a big problem,” said Erik Konicki, managing director, Statesman Business Advisors, LLC and Chapter President. “It was a great feeling to help out, and the entire Chapter was involved. Many helped one another out within the Chapter itself, whether it was offering a ride to work or watching someone’s kids for a few hours. It was a lot of everyone asking one another, ‘What do you need?’” Marilyn Davis, marketing manager, Amerisource Funding, and Chapter administrator, said the Chapter was also busy with matching those who needed help to those who could offer help. Kathy Mayle, financial consultant,

Women’s Committee to plan a charity walk in the Fall.” “We also encourage families of CFA participants to participate to help build the community. It helps with teambuilding,” Duckett added.

New England Chapter

One of the CFA’s Midwest Chapter charities in 2017 was the Chicago Metropolitan Battered Women’s Network. The Network is a collaborative membership organization dedicated to improving the lives of those impacted by domestic violence through education, public policy and advocacy, and the connection of community members to direct service providers. Hoover Slovacek LLP, and Chapter member, said, “Many of my generous co-workers of Hoover Slovacek LLP donated the critical items being sought by many in our area, such as diapers, tooth paste and tooth brushes and socks. I remember one of my attorneys telling me that he would bring in diapers and, when we went to unload his car, it was packed with every size diaper and wipes. Everyone wanted to contribute as we all felt the suffering of the families, many of which lost everything – their homes and personal property, some items being irreplaceable. The giving to those affected by Harvey didn’t stop there as I learned that several of my co-workers adopted families for Christmas.” Mayle said relying on social media sites for donations and to give guidance on where to donate was especially helpful. “It was a true blessing seeing every organization do what they can to help out,” Mayle said. “Gallery Furniture of Houston, for example, opened their doors and allowed people to sleep there. People were cleaning out homes and one woman was away in Oklahoma and found out through Facebook that her house was cleaned out for her and neighbors donated what they needed.”

Midwest Chapter CFA’s Midwest Chapter typically donates several thousand dollars a year to various charities. This year’s charities are St. Jude’s Children’s Research Hospital and Imerman Angels. Imerman Angels partners a “Mentor Angel”, or cancer survivor or caregiver with someone who has faced the same type of cancer. The free service helps anyone touched by any type of cancer, at any cancer stage level, at any age, living anywhere in the world. The Chapter is aiming for $5,000 in donations this year and Sue Duckett, executive vice president at Franklin Capital Holdings LLC, and chair of the Chapter’s Community Outreach Committee, plans to easily make this goal. “We want to involve everybody. The CFA is a community and we are getting the community involved,” said Duckett. “We have one-year tenures and partner with a charity and build a relationship. With 331 members in our Chapter, proceeds from certain events will go to a certain charity. We look back at the end of each year to figure out what went right and what went wrong. Our goal for 2018 is to donate $5,000. We’re working with the Chapter’s

CFA’s New England Chapter has been supporting the Ron Burton Training Village (RBTV) in Hubbardston, MA for the past 23 years. The Chapter holds a charity golf event to raise money for RBTV, a training camp designed to enrich the lives of challenged youths. Located in Hubbardston, MA, RBTV was founded by Ron Burton Sr., a former college (Northwestern) and professional (New England Patriots) football player who was originally told he lacked size, speed and overall athletic ability. “Through nothing more than perseverance and a bit of inspiration, Ron focused on self-improvement and started waking up at 4:30 a.m. each day to run seven miles, rain or shine,” explained Rod Landis, vice president, North Mill Capital LLC. Years later, he became a first-round draft pick in the NFL, AFL and Canadian Football League.” The camp enriches the lives of challenged youth in the areas of dynamic character and leadership development, physical fitness, social and educational advancement, and spiritual growth. “The original founders of the Chapter needed something to get behind and after viewing the inspirational story of the RBTV, they found their cause,” Landis said. “Twelve months a year, over a six-year period, campers are guided, supported and mentored in some of life’s most essential areas including education, social skills, morals, values, leadership and fitness. Over the past 33 years, RBTV has served more than 9,000 young men and women. “Each year, the Chapter donates $50,000 to the RBTV and in aggregate has given more than $1,150,000 to support youngsters at the camp,” added Dan Bolger, Business Capital, Citizens Commercial Banking.

THE SECURED LENDER MARCH 2018

“The annual golf tournament currently gets about 160 attendees. The Chapter tries to visit the camp at least once a year and we’ll get a good portion of the Board there to visit and meet with the kids and staff.”

New Jersey Chapter While “philanthropy” has never been a direct part of the mission statement of the New Jersey Commercial Finance Association, its board and its members have always taken great pride in giving back to the industry, community and often charitable organizations that serve the New Jersey area. Part of the National CFA’s mission statement is “encouraging the Association’s members and their personnel in the performance of their social and community responsibilities,” explained Michael Ticehurst, CFA New Jersey Chapter Vice President and partner, Rosenberg and Fecci Consulting. “The CFA New Jersey Chapter has a full committee dedicated to its philanthropic activities, which includes raising funds and awareness for worthwhile causes.” In the past few years, the New Jersey CFA board and its membership base have contributed a significant amount of money via various fundraising means to several worthwhile causes. In 2014, under thenPresident Ed Chonko (PNC Bank), the NJ CFA was able to present the Deborah Hospital Foundation (www.deborahfoundation.org) with a check for $10,000 raised by the NJ CFA members. During 2015 and 2016 (under Chonko in 2015 and under President Denise Albanese, of Cost Reduction Solutions, in 2016), the Chapter raised a significant amount of money for “Paulie & Pals”, whose mission is to provide supplemental funding to families with children with autism ages 10-18 for the purpose of sending them to summer camp. Chonko, Albanese and Michael Albanese, of Cost Reduction Solutions, all current New Jersey CFA members, currently sit on the Board for Paulie and Pals (www. paulieandpals.org). In 2017, under then-President Robinn

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Mikalic, of JD Factors, the Chapter raised $5,000 for AJ’s Childhood Brain Aneurysm Fund, which was a fund set up for the family of an industry colleague whose son was diagnosed with a brain aneurysm in 2015 and was given a 40% chance of survival. The funds were used toward medical bills, maintenance expenses and general livelihood expenses, and the Chapter is happy to update the community that AJ’s brain aneurysm has been coiled, and AJ is alive today, but will require a lifelong process of monitoring his condition. “In addition to supporting local charitable and organizations/individuals in need, the Chapter has put a great amount of importance into giving back to the community via education,” added Ticehurst. “In November 2016, Robert Schnitzer, senior vice president, Rosenthal & Rosenthal, and myself presented to the Rutgers Business School a presentation involving the intricacies of asset-based lending, factoring and the importance of collateral monitoring and field exam.” During April 2017, the CFA and World Bank united together to educate the banking community of Malawi on lending to SMEs with movables assets. Robinn Mikalic, the Chapter’s 2017 President and financing coach Rob Severson trained 78 bankers from 13 national banks along with employees from the National Registry in Africa. The Chapter is also implementing a mentoring program in 2018 to assist in the educational needs of those throughout the finance industry or for those looking to enter the industry. The Chapter is proud of its past philanthropic endeavors by its organization and its members and is excited to continue giving back ways during 2018. During 2018, under incoming President Heidi Ames, senior vice president, North Mill Capital, the Chapter is working to partner with Jersey Cares (www.jerseycares.org), a leader in volunteerism in New Jersey which increases the level of meaningful volunteer engagement by creating and managing efficient, impactful projects that address critical community-identified needs. On April 24, 2018 members of the Chapter will be creating “chemo care packages” to be

donated to Hunterdon Medical Center in Flemington, NJ. These packages are designed to help boost the spirits of children who are undergoing chemotherapy. Chapter members will be asked to decorate a bag, fill the bag with candy, toys, a journal, fuzzy socks, and other fun items to help brighten the day of a brave child. Lastly, members will also be asked to create a “super hero cape” to help a child feel like a superhero while receiving treatment. “I am pleased and gratified that the New Jersey Chapter can be also used to facilitate a charitable, fun event and give back to the community,” said Ames. Hunterdon Medical Center opened its doors in 1953, drawing national attention for focusing on wellness and primary care. Hunterdon Medical Center treats over 8,600 patients annually, with 33,000 emergency department visits and over 292,000 outpatient visits per year. The 178bed teaching hospital provides a full range of preventive, diagnostic and therapeutic inpatient and outpatient hospital and community health services. The April 24, 2018 event will be held at the offices of Wilentz, Goldman & Spitzer, P.A., 90 Woodbridge Center Drive, Suite 900 Woodbridge, NJ at 5:30 pm. This will be a free event for all 2018 CFA New Jersey Chapter members and will be followed by a networking reception. To register, please visit the New Jersey Chapter website or contact the Chapter Administrator Betty Mantz at MantzSupportServices@verizon.net. Additional CFA Chapters report they are in the beginning stages in selecting a charity for 2018 and 2019 and we plan to feature a follow-up article on their progress. TSL Eileen Wubbe is senior editor of The Secured Lender.

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Your ABL and Factoring Solution gemcapsolutions.com

RELATIONSHIP MANAGEMENT

AVERAGE VS. EXTRAORDINARY

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BY JOE ACCARDI JOE ACCARDI OF SANTANDER CHALLENGES LENDERS TO RE-EXAMINE THEIR CLIENT RELATIONSHIPS.

As far back as I can remember, going back decades, many bankers have constantly claimed that they are “relationship-oriented” with their clients, and that this is their competitive advantage in the marketplace. This usually means that they’ll be happy to have lunch a few times a year and cross-sell as many of their institutions’ products as they can. But is that really “relationship orientation”? No, of course it is not. (Note: this article is being written about bankers responsible for account relationships, but the basic concepts apply to many professionals who are viewed by their clients as trusted advisors.) Relationship managers are unquestionably busy with clients’ credit issues, collateral/field exam issues, operational issues and legal issues. They must take the time to study their clients’ industries, customers, products and capital structures; knowing a client’s business well is obviously an absolute must. And, of course, there are internal administrative reports, and credit facility renewals and modifications; managing all this is pretty much a full-time job. But effectively dealing with all of this is really a threshold requirement, i.e., doing a nice job with all of these matters gets you to a rating of “average”. Developing and managing client relationships in an extraordinary way requires that you go above and beyond these basics. Before we discuss what it takes to get to extraordinary, let’s touch on the value of developing extraordinary relationships. Competition for borrowers is fierce; there is an imbalance of lenders and borrowers in the market today. But all institutions have growth goals and are looking to bring in new client relationships. Several times a month, competitors are calling on your best existing clients with invitations to lunch or dinner, with tickets to a ballgame, with requests to pitch

a financing proposal, etc. So how good does your relationship have to be for your client to decline such meetings? If your relationship is average, the door is open, and they will routinely take those meetings with your competitors. If your relationship is extraordinary, however, and you are viewed as an asset to their business, they in all likelihood will not make time to meet. They will respond to your competitors, “I appreciate your interest, and thank you, but I’m all set with my banking. I don’t want to waste your time.” This is what we want our clients to be saying to our competitors. In addition, very satisfied clients will often not hesitate to recommend you to business colleagues. If you have earned the status of “trusted advisor” and your relationship is viewed as an asset to their business, clients will be eager to help others in their circle of executive colleagues by referring you. Investing in Relationships A cornerstone of the development of extraordinary relationships deals with the concept of “investment in relationships”. Such investment can, and should, take many forms, both professional and personal. Here’s what I think extraordinary relationship management looks like. Let’s say that “Gerry” is an executive with whom you work at a client company. As an investment in that relationship with Gerry, you can send him links to articles about productsourcing issues that you know his company is dealing with. You can introduce Gerry to a consultant for whom you have high respect who specializes in operational efficiencies with companies in their industry. You can provide constructive feedback on the company’s recently updated website. You can offer to discuss with Gerry and his executive team topics like macroeconomic issues, how

THE SECURED LENDER MARCH 2018 41

artificial intelligence could disrupt a variety of industries (including his and his suppliers’ and customers’), and the latest goings-on in the banking/financial world, including likely interest rate movements and the rapid evolution of cryptocurrencies and blockchain technology. One of the most important interactions (read: investments) you can have with clients today is something that would not have been considered ten years ago: “Gerry, how is your company vulnerable to inevitable disruption in your industry? How are you

ing out a holiday card, rather than merely signing it, take the time to write sincere words of appreciation for the relationship you have. Offer to meet with Gerry’s son, who is a senior in college and has an interest in a career in business or finance, and offer to review his resume and help him prepare for upcoming interviews. Take time to understand the type of community involvement that is important to Gerry and his company. Engage in social media with the companies and the people with whom you have relationships.

One of the most important interactions (read: investments) you can have with clients today is something that would not have been considered ten years ago: “Gerry, how is your company vulnerable to inevitable disruption in your industry? How are you addressing this threat? Will the company be able to withstand moderate or major disruption?” addressing this threat? Will the company be able to withstand moderate or major disruption?” Every business today has to think deeply about this issue, because the world is changing very rapidly, and those companies (and people) who are not open-minded to different ways of doing things and cannot adapt will find it difficult to survive, let alone prosper. For many successful executives, it can be hard to understand that what they’ve been doing really well for decades may no longer work. Respectfully and constructively challenging the many aspects of a client’s business strategy is an excellent way to invest in the relationship. Encourage them to confront challenges and appropriately take action on certain issues they have. Many clients will outright expect this kind of interaction if you are a valued trusted advisor. On the personal side, when send-

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There is a long list of possibilities for investment in a relationship if you’re tuned in to your client. Actively investing should account for at least 20% of your time. Some would say that they’re too busy for this sort of relationship “investment,” and that their workload (mentioned earlier) is their focus. They let the data analysis and busy work crowd out the time needed for building the client relationship; the mindset is “head down, blinders on.” Such relationship managers are serving notice that they are concerned only with the loss of loan principal, rather than the loss of the account. Extraordinary relationship managers are concerned with both, and active investing is a defining characteristic of their personal brand. No matter how busy they are, they will find time for it because they understand the importance of investing. So, how well have you invested in

any particular relationship, and how well have you connected? I have what I call “the $10-million question”: if you suddenly won $10 million in the lottery, and decided that you wanted to spend more time with loved ones and play more golf by ending your professional career as a relationship manager, how many relationships would you continue to maintain? Albeit some relationships may fall by the wayside, but would any continue on? If you’ve invested in relationships in an active and genuine way, my prediction is that quite a few would continue on in one form or another. Tune In, Engage, Connect, and Invest Many entities claim to be, or aspire to be, “customer-centric”. This model must go beyond a focus on operational interaction with their clients, i.e., making it easy to complete transactions; it must include human relationship orientation by the main relationship manager as well as others at the institution. Institutions which are serious about relationship orientation address the issue of “investment” in their job descriptions, in their setting of goals, and in their incentive compensation. Astute management actively encourages appropriate investment; they understand the importance of reaching out when you don ’t need or want something from a client. They understand the importance of tuning in, engaging, connecting and investing. If they are genuinely committed to extraordinary relationship orientation as an important part of their culture and as a way of doing business, then they will indeed have a competitive advantage in the marketplace. TSL Joe Accardi is the NY/NJ/PA Market Leader of the ABL Division of Santander. Feedback welcomed: jaccardi@santander.us

The True Heroes of Our Community Because of Your Generous Contributions The NextGen and Our Industry Are Stronger. The Foundation’s 2018 Campaign Welcomes Corporate Contributions and Individual Donations* Thank you for supporting the CFA Education Foundation where your contributions help the entire Commercial Finance community realize its full economic impact by continuing to educate and develop aspiring young individuals working in the field of secured lending. Individual Supporters: Foundation Benefactor: $5,000-$7,999 Andrea L. Petro

D. Michael Monk Amerisource Funding

Foundation Patron: $2,500-$4,999 John M. DePledge Citibank, N.A.

Bobbi Acord Noland Parker, Hudson, Rainer & Dobbs LLP

Jeffrey K. Goldrich North Mill Capital LLC

Foundation Member: $500-$1,499 Gail K. Bernstein PNC Business Credit

Richard Gumbrecht Commercial Finance Association

Cindy J.K. Davis Greenberg Traurig, LLP

Charles G. Johnson Commercial Finance Association

Bruce Denby CIBC

Wade M. Kennedy McGuireWoods LLP

Joseph Lehrer Citibank, N.A.

David B. Kurzweil Greenberg Traurig, LLP

Stacey J. Schacter Vion Investments

Friend of the Foundation: $1,500-$2,499 David Grende Siena Lending Group

William A. Stapel MB Business Capital

Corporate Supporters: Gold Level: $12,500 - $19,999 Winston & Strawn LLP William D. Brewer, Partner Silver Level: $7,500-$12,499 Wells Fargo Capital Finance Stewart W. Hayes, Managing Director Benefactor Level: $2,500-$4,999 TCF Capital Funding Joseph P. Gaffigan, President Troutman Sanders LLP Hazen H. Dempster, Esq., Partner • Contributions as of 2/20/18

370 7TH AVENUE, SUITE 1801, NEW YORK, NY 10001

TEL (212) 792-9390 • FAX (212) 564-6053 www.cfafdn.org

TSL INTERVIEW

Ward Mooney & Scott Diehl Reflect on their Careers & Accomplishments Ward Mooney, of Crystal Financial, and Scott Diehl, of Wells Fargo Capital Finance, now both retired, reflect on their time in the asset-based lending industry. Mooney and Diehl were the recipients of CFA’s Lifetime Achievement Awards at CFA’s 73rd Annual Convention in Chicago in November 2017.

BY EILEEN WUBBE

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has become a large and important segment of the asset-based industry.

Ward Mooney of Crystal Financial and Scott Diehl of Wells Fargo Capital Finance Speak with Andrea Petro, past CFA President, at the CFA 73rd Convention Please provide our readers with some background about your involvement in the commercial finance industry. WARD MOONEY: As an attorney, I have been committed to pro bono work and giving back to my community throughout my career. I devote over 100 hours annually to those in need. There are a number of projects I get involved with each year. I will describe the two to which I devote the majority of my time. Back in 1992, which seems like a long time ago, I started working at Gordon Brothers, which at that time was one of the few firms that had an established expertise at valuing and appraising inventory for retail stores. Using that expertise and the intellectual capital that resides at GB, we decided to start a new specialty finance company, GBFC, whose sole mission was to underwrite secured asset-based loans to retailers, businesses with stores that had inventory as its primary working capital asset. Before GBFC was established, inventory, especially located in stores, was not an asset that banks and other specialty asset-based lenders would regularly include in the borrowing base for a loan to a retailer. At that time, traditional asset-based lending usually focused primarily on accounts receivable. Perhaps a very low

advanced rate against inventory, but there was no process to consistently appraise and monitor the variables and nuances that would affect its value for a lender. GBFC was started to underwrite loans to small and middle-market retailers throughout the United States. Our back office was focused on monitoring the value of the inventory and the integrity of the borrowing base. It was a small finance company at that time. As we began adding new underwritings to our portfolio, we began getting phone calls from a variety of retailers who wanted to enhance their liquidity by borrowing secured by their inventory. We were getting many requests that were above our internal limits. We needed another financial institution to partner with us to underwrite and fund these transactions. We had learned about Foothill Capital during our initial due diligence, and we called John Nichols and Peter Schwab to explain the focus of our new specialty finance platform. They were very interested in participating with us on larger underwritings. At that time we worked with Scott Diehl and his team. In 1996 GBFC was sold to Bank Boston. Today, the business resides within Bank of America. Lending to retailers secured by inventory

What were the biggest advances/ changes you saw over your career? DIEHL: I started in 1984, so I had 33 years until my retirement. It was a good, interesting run and, just for context, I joined Foothill and never left. It just changed around on me! Overall, the company evolved over time. I believe one of my greatest accomplishments, if you look from the day I joined, we probably had a portfolio of less than $200 million in 1984, and by the time I retired, we were over $40 billion. Some of that growth came from significant mergers with other banks. Foothill merged with Norwest Bank, but the big one was the end of 2008/2009, when Wachovia and Wells Fargo joined. That historic merger really brought together these iconic brands within the ABL area, specifically the Foothill, Congress and First Union brands. I think it was an interesting backdrop. Wells Fargo was my first job out of college and at that time ABL was somewhat of a stigma product. If a company used ABL, there was a stigma attached to it because they had to borrow on their assets as opposed to getting a loan from a bank where you just had to show credit worthiness. Overtime, as the capital markets changed, ABL became a much more accepted financing alternative for many companies that never believed that an ABL could help them. I think one of the greatest things that happened over time is that Wells Fargo and other players like Bank of America realized that, as the private equity world evolved over time, the PEGs found different ways of capitalizing companies such that an ABL construct could fit right in the capital structure. Within Wells Fargo, we evolved and tried to find ways that we could focus on target industries and create efficiencies on how we could focus our business. One of the early things we THE SECURED LENDER MARCH 2018 45

Scott Diehl, formerly of Wells Fargo Capital Finance, and Ward Mooney, formerly of Crystal Financial, being honored at CFA’s 73rd Annual Convention by Andrea Petro, former executive vice president and division manager of the Lender Finance Division of Wells Fargo Capital Finance, CFA CEO Rich Gumbrecht, and CFA president and managing partner of Amerisource Funding, Michael Monk. did was to determine that we would buy loan participations from other asset-based lenders’ deals. We weren’t sure if we were making enough money with our cost structure, so we formed a distinct group to buy participations from other ABL lenders, and liberated our direct sales force to find new opportunities. It was interesting, as we thought we’d be making less money because we were receiving lower yields by buying into other ABL players’ deals. However, we learned that our lower servicing made us efficient and this niche became a significant part of our business. As I look back, we did a lot to improve ourselves. We changed processes to improve customer experience, but we also made a strategic decision to move into different markets, including bringing on Andrea Petro, former CFA president, from Transamerica, to build a lending platform to other finance companies, which grew quickly and became an incredibly important part of our strategy. We formed a technology finance business which has been a highly accretive performer and, while not a traditional ABL, it really is like an

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ABL because we look at the value of the assets in the company even in a distressed scenario. We also built out different products, which performed very well. Our healthcare finance business has grown over the last five years and is doing very well, performing nice among competitors. Fortunately, we had a first-rate Loan Sales and Syndications team led by Barry Bobrow and it was a great capability to help us compete in the market. MOONEY: Some of the biggest changes have been the growth of the industry, the number of participants and the quality of due diligence that is provided by outside firms regarding asset valuations. Many specialized appraisal firms have become critical to assetbased lenders who require a range of asset valuations to underwrite and structure a credit. Assets now include inventory, equipment, real estate, brands and intangible assets. A major component of the underwriting due diligence is a “wind-down” analysis that details the methodology and expected timing of the liquidation of the asset. Collateral valuation is much more precise, and the due-diligence

process is much more intense now. There continues to be important innovation in the industry where entrepreneurs have been successful in starting up new platforms to structure secured loans for all different types of transactions. Also many outside experts and advisors have been identified to help asset-based lenders understand both a range in values of many non-traditional assets that are now often included in a borrowing base such as in intellectual property, consumer finance receivables, real estate, brands, equipment, licenses, patents, and the equity in leases. All of these assets are now leveraged to generate liquidity beyond the traditional working-capital assets. How did your experience working at Wells Fargo Capital Finance’s Industries Group prepare you for overseeing the Supply Chain Finance Division? DIEHL: Wells Fargo Capital Finance has about 12 or 13 distinguishable businesses that are all ABL in relevance. Castle Pines Capital, which eventually became part of our Supply Chain Finance division, was a business that we financed and then bought in June 2011. It turned out to be a great assetbased loan, but also a great incubator of a business that could be part of Wells Fargo. Having confidence was key for me. Andrea and I were advocating for Wells Fargo to buy Castle Pines Capital. I felt prepared to vouch for this asset due to the many roles I had at Well Fargo Capital Finance overseeing virtually all of the customer units. From my first day at the company and my first management job, it was a great journey to learn and build confidence in myself and the great teams that I was lucky enough to work alongside. In every part of the business you learn from what you’ve done in the past and from what your competitors are doing. You take good notes from your managers and they give you

thoughts and inspiration. For me, the path has been that I learned from every part that I’ve been involved with, and I think that a lot of things that we were doing I pushed for within our business. It was a journey — we just kept building our products and realized we could have a great business, but we really needed to back it up with other segments that would give us the ability to keep growing. I couldn’t have done it if it wasn’t for the support of Peter Schwab and Henry Jordan. But, more importantly, I’m proud of Jim Marasco, Andrea, Rhonda Noel, John Leonard, Steve Macko and others in similar leadership positions within Capital Finance as well as other leaders across Wells Fargo Wholesale, who have really been able to help push the segmentation and the specific industries that we went into on a very targeted basis. What professional accomplishments are you most proud of from working in the commercial finance industry? MOONEY: Fortunately, I began my career in an excellent training program that provided a wide range of experience and responsibility. Starting and leading three different and unique asset-based finance enterprises, working with gifted partners, and tireless, enthusiastic professionals who will continue to lead and to innovate has been an exciting and rewarding journey. Ward, how have your leadership positions outside of work, such as serving on the board of advisors of Elon University School of Business, Burlington, NC and Trinity Repertory Theatre, Providence, Rhode Island, Newport Festival Foundation, etc. helped shape your professional development? MOONEY: When I began my career in finance, I was encouraged to serve on boards. Therefore, I have been on many, and they have been an important component of learning about new issues, new ideas, new solutions, and

making new friends. I serve on one public board and the importance of governance and your fiduciary responsibility to shareholders is paramount. If you make the commitment to serve on a board, it is important to work diligently and spend the time to be effective. It is not just showing up. Being on a board and participating fully is an important part of the continuing education in business and leadership. Also, you may meet a new contact that will refer you to a new opportunity! What did you gain by being involved with CFA? DIEHL: I was part of a company that’s doing asset-based lending and you’re out competing against all the people that are in your space — from small deals to middle market to the larger deals, there’s always competition. I think it’s nice to know there’s a great organization that’s actually advocating for things that are beneficial for all of the companies. The CFA creates the foundation for camaraderie and it fosters an area of a collective universe to have us do the best we can for customers. MOONEY: My first interaction with the CFA was in 1992 at the Annual Convention in Toronto. Back in those days, they had a group within CFA called the Independent Finance Company Group. These were all the finance companies that weren’t part of a bank or larger institution. Time was allocated at the conventions for the independent finance companies to get together and talk about specific issues relevant to their segment. At the meeting we introduced ourselves and explained the type of financial services we were providing. When I said that our firm was providing loans to retailers secured by inventory, people came up to me and said, ‘Wow, it was really nice to meet you, but you’re not going to be here next year because that will never get off the ground.’ Since then my involvement with the CFA has

provided many long-term friendships, introductions to many underwriting partners, and to unique, knowledgeable, professionals who helped get the deals across the finish line. What can we expect in the industry in the coming years? DIEHL: In general, I think ABL will continue to be a very important way to create credit capacity for many companies and pay the trade on time. With numerous numbers of private equity firms that are out there looking for, and doing deals, there should be plenty of ABL opportunities. But you need to be insightful, creative and reactive to change to sustain and be relevant, while looking for new opportunities, of which some may not be in the current credit/collateral or geographic comfort zones. What are you doing in your spare time now that you are retired? DIEHL: I’m enjoying it. I have to be honest, after 33 years at my first real job, it’s been kind of a breather because you realize that you’ve been through a lot of different scenarios and sometimes everything works great but there’s a lot of stress involved too. I’m actually enjoying the fact that I can do things at home that I could rarely do. So for now it’s kind of fun. I’m 56 so I think that’s probably too young to think you can play golf every day. If something comes up through people I’ve met, whether it’s in lending or something else, I might just jump back in! MOONEY: I still plan to be involved in corporate and non-profit boards. I am thinking about a new start-up that would focus on the “Baby-Boomer” generation. And I plan to have an immense amount of fun! TSL Eileen Wubbe is senior editor of The Secured Lender

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SPONSORED CONTENT PRESENTED BY:

HONORING A LEGACY AND LOOKING TO THE FUTURE

Rosenthal Celebrates 80 Years When one looks at Rosenthal & Rosenthal’s track record of success, especially as it marks its 80th year in business this year, it’s clear that entrepreneurism runs deep in the Rosenthal family.

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ince 1938, when Imre J. Rosenthal established his eponymous firm, three generations of Rosenthal family members have passed through the revolving door of Rosenthal’s headquarters on the iconic corner of 37th and Broadway in bustling midtown Manhattan. For his time, Imre’s perspective on business was fairly radical. The market was in turmoil and funding for new businesses was scarce. So, when he deliberately chose to focus on financing businesses that, for a variety of reasons, were not able to secure funding from big banks or more traditional lending institutions, Imre’s approach felt like a breath of fresh air. Early on, Imre set a precedent for being open minded, creative and supportive of his clients. From his very first client – a chicken farmer with a vision for a brighter future – to the countless textile companies and garment businesses that sought out Rosenthal’s funding and partnership over the years, Imre’s mission was always clear. He wanted to provide the financial assistance and strategic counsel that business owners needed to grow their companies and realize their success. “My grandfather had the utmost confidence in all of his clients – and their dreams – and took a personal interest in helping each of them pursue the opportunities that were within their reach,” said Peter Rosenthal, President of Rosenthal & Rosenthal. “He was a role model to all of us in so many ways and truly set the tone for the guiding principles that continue to drive our business today.” As the firm celebrates this significant milestone in 2018, the same spirit of entrepreneurship and innovation that Imre championed three generations ago is evident in the success of Rosenthal’s thriving

business today. The firm just made its first acquisition in its history, acquiring a $2 billion factoring portfolio from BB&T, one of the largest financial services holding companies in the United States. Aside from adding to Rosenthal’s existing $9 billion in factoring volume, the deal reflects the firm’s continuing expansion into other markets and sectors. “The BB&T deal is significant for Rosenthal because it not only allows us to bring our expertise and resources to the Southeast Region

of the United States but also provides a channel to reach businesses in industries where we believe we can have a meaningful impact,” said Rosenthal Chief Financial Officer Jim Occhiogrosso. The BB&T acquisition is only one example of how Rosenthal has expanded the business over the last 80 years. With its roots firmly in New York City, Rosenthal has worked hard to expand its footprint nationwide. The firm opened its West Coast office 15 years ago, to take advantage of the numerous opportunities in the Western Region. That office, led by Sydnee Breuer and Jeffrey Enoch, has grown

and established itself as a trusted partner to countless businesses up and down the West Coast. “Businesses in California and the Pacific Northwest often operate differently than their East Coast counterparts, so we wanted to be positioned to address their needs with the same level of personal service and individualized solutions that we were known for on the East Coast,” said Rosenthal Chief Marketing Officer Ken Kleiner, who led the firm’s expansion to the West Coast. “It was the

Peter Rosenthal, Cassie Rosenthal, Chris Sanjenis, Eric Bader and Ken Kleiner right moment to become bicoastal and open up our resources and knowledge base to an entirely different spectrum of businesses. In the years since we opened our office, we’ve built up a talented team of new business finance professionals, including Maria Contino, Marty Eckstein and Ying Yang, all of whom have helped to expand our presence.” Aside from expanding geographically, Rosenthal has also grown by developing relationships in industries outside of fashion – everything from

THE SECURED LENDER MARCH 2018 49

gift and home and furniture to food and beverage and consumer electronics. And, as the client base has diversified, so too have Rosenthal’s lending capabilities and service offerings. To complement its robust Factoring and Asset Based Lending divisions, led respectively by industry veterans Michael Stanley and Rob Miller, Rosenthal launched its Purchase Order Finance Division in 2016. Having the ability to provide alternative short-

The BB&T acquisition is only one example of how Rosenthal has expanded the business over the last 80 years. With its roots firmly in New York City, Rosenthal has worked hard to expand its footprint nationwide. The firm opened its West Coast office 15 years ago, to take advantage of the numerous opportunities in the Western Region. term financing quickly – and often in tandem with existing working capital facilities – allowed Rosenthal to create a viable channel for new business opportunities across the firm. Paul Schuldiner leads the PO Finance division, working hand-in-hand with cashconstrained businesses to provide equity alternatives to support their supply chain requirements. “Our job has always been to help our clients solve some of the thorniest and most complex business challenges they face,” said Peter Rosenthal. “Because we are private and still independent, we are fortunate that we can innovate when we need to and be flexible and creative when recommending financial solutions. So, whether we are helping a business take advantage of a new growth

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opportunity or simply trying to right the ship, we have the perfect mix of resources to tackle virtually any business challenge.” The BB&T acquisition adds another 25 employees – in two new offices in Georgia and North Carolina – to Rosenthal’s talented team of 200 professionals. Many of Rosenthal’s 200 staff around the country are not only finance industry veterans, but also Rosenthal veterans, like Michael Cipriani, Rob Martucci, Anthony Verrilli, Charlie Aiosa and Deane Davis, who each have 28-35 years of service with Rosenthal. These dedicated, long-time employees and their peers have very much become extended family to the second and third generations of Rosenthal family, including Stephen J. Rosenthal, Eric J. Rosenthal, Peter Rosenthal, Ken Kleiner,

(L) Vice Chairman of the Board Eric J. Rosenthal and (R) Chairman of the Board/Chief Executive Officer Stephen J. Rosenthal

Chris Sanjenis, Cassie Rosenthal and Eric Bader. “Eighty years is truly a lifetime. We have seen our clients through good times and bad, start-ups and bankruptcies, market upswings and recessions. And, through it all, we have remained a trusted partner and advisor to thousands of business owners across dozens of sectors and industries,” said Peter Rosenthal. “Our longevity and continued success has everything to do with the bond we share with our clients and our continued commitment to moving their businesses forward.” TSL

TSL INTERVIEW

Jason Miller of Otterbourg: Achieving Success by Helping Others Succeed By Michele Ocejo

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Jason I. Miller is a partner at Otterbourg P.C. He concentrates his practice in the area of commercial finance, with a particular focus on asset-based and cash-flow financing. He represents major national and international commercial banks, finance subsidiaries of banks, mezzanine lenders, independent factors and finance companies. Here, he discusses his deep involvement with two worthy charitable causes.

Please provide us with an overview of your community/charity involvement: As an attorney, I have been committed to pro bono work and giving back to my community throughout my career. I devote over 100 hours annually to those in need. There are a number of projects I get involved with each year. I will describe the two to which I devote the majority of my time. In 2014, I advised a friend on starting a new cancer charity from the ground up on issues relating to the charity’s formation, strategic planning, federal and state tax-exemption applications, contract negotiations, initial fundraising efforts, donor agreements and others. Fabulous and Fighting’s (http://fabulousandfighting.org/) mission is to collaborate with the fashion industry to provide donated clothing and accessories to

New York area cancer patients, thereby empowering them with the beauty and self-confidence to maintain a positive outlook during and after treatment as well as alleviating some of the financial burden associated with cancer. Today, I serve as pro bono counsel and am actively involved in growing the charity’s reach and impact. I also serve on the Board of Directors and legal counsel for an incredible clean water charity, Water Collective (http://www.thewatercollective.org), which works to bring clean water to partnered communities in Africa and India, together with subsequent “water independence”: a fortification of their water systems against breakages and abandonment to ensure clean water for generations to come. In my legal role, I advise on issues such as contract negotiations and documentation of financing arrangements for new projects. As a board member, I am also engaged in our education initiatives and fundraising goals. This past November, the Water Collective held its 7th Annual Gala. With the amazing support of over 50 of my clients and friends in the commercial finance industry in attendance, the charity had its most successful gala to date, raising over $45,000 that evening – enough to bring clean water to 16,000 persons. Did you choose these particular areas for a reason? I look to spend time working on projects I care about, with people I care about and where I think I can add real value. As it turns out, in the case of each of the two charities I just mentioned, I got involved because of good friends. For example, with Water Collective, it was my friend Doug Meyer, senior vice president at Bank Leumi, whose passion and enthusiasm turned me on to the organization. Ultimately, I have found that, if you approach life from a mindset of generosity -- if you are generous with your time, your advice, your concern and have a genuine wish to see others succeed -- then these kinds of opportunities have a way of finding you.

How has your charitable work affected you both personally and professionally? Charitable work has always been very satisfying for me professionally. With respect to pro bono legal work, I focused early in my career on opportunities that were transactional in nature. Doing so provided me with a chance to further hone my legal skills and put my experience to use in a context similar to my professional area of expertise. Now, it is an opportunity to invite my colleagues and even clients and friends in our industry to join the team, and then come together to do something great. Personally, I have always found what I define as success in my life by helping someone else find theirs. I believe that changing one life within my sphere of influence is always a worthy endeavor to be sought. It is an amazing thing to meet a cancer survivor overcome with gratitude and tears of joy because for the first time in a year she once again feels like her beautiful self, or to receive a video from a village of people halfway around the world to say thank you because for the first time in their lives they do not get sick from drinking water. What would you say to others who want to give their time, but feel their schedules won’t allow it? Recognize that opportunities to volunteer your time and expertise come in all shapes and sizes – it is only a matter of finding the one that is right for you. There are many wonderful opportunities where just a few hours or a half-day is all that is required and would make such a big difference. Ask a friend or colleague about their volunteer efforts and, if you are interested, see if you can help out in a way that works with your schedule. Many companies and firms have corporate volunteer programs and other avenues to give and make a difference. My best advice is to ask questions, seek out what you have in mind and then go for it! TSL Michele Ocejo, editor-in-chief, The Secured Lender and director of communications, CFA.

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what

WOULD YOU DO?

n this edition of What Would You Do?, the Chief Credit Officer of Overadvance Bank considers the Bank’s options after learning that one of the Bank’s financially distressed borrowers selected a competing debtor-in-possession financing proposal from the borrower’s second lien lender over the Bank’s financing offer. Tail Wagging the Dog? A few years ago, Overadvance Bank extended a $75 million, senior secured revolving credit facility to Sleepless City, LLC, a retailer of specialty mattresses. In addition to its first lien credit facility with the Bank, Sleepless also closed a $100 million, second lien term loan facility with King-Sized Money, Inc., an entrepreneurial hedge fund that is known to employ a “loan-to-own” strategy in determining to extend second lien credit facilities. As you would expect, Overadvance Bank and King-Sized Money executed an intercreditor agreement, which reflects a typical “first lien/second lien” collateral arrangement with regard to their respective secured credit facilities with Sleepless. In particular, the intercreditor agreement provides that King-Sized Money is deemed to consent to any debtor-in-possession (DIP) financ-

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ing provided by or with the consent of Overadance Bank, as well as to any use of cash collateral to which Overadvance Bank consents, so long as certain typical conditions are met. The intercreditor agreement does not, however, prohibit King-Sized Money from extending DIP financing, so long as King-Sized Money’s DIP financing is junior in lien priority on Overadvance Bank’s collateral and is otherwise in accordance with the intercreditor terms. Fueled in part by the success of its “sweet dreams” line of mattresses, Sleepless has grown its revenue by 1% in each of the last three years. However, its customers are increasingly purchasing mattresses online through Sleepless’ website, rather than using its 50-plus retail stores. As such, despite the increase in revenue, Sleepless, like many other highly levered retailers with underperforming or unprofitable physical store locations, is losing money at an increasing rate. A few weeks ago, Sleepless asked Overadvance Bank to consider providing a Chapter 11 DIP financing facility to Sleepless, so that Sleepless could use Chapter 11 to reject store leases at its unprofitable retail locations, as well as restructure its second lien debt with King-Sized Money, which is considered significantly undersecured. Based on the proposed Chapter 11 budget and projections provided by Sleepless, the Chief Credit Officer is supportive of the request, and the Bank starts preparing a DIP financing term sheet based on the terms that were preliminarily discussed with Sleepless. However, a few days later, Sleepless advises the Bank that King-Sized Money has also offered to provide DIP financing to Sleepless. The proposal by King-Sized Money does not contemplate priming the Bank’s security interest in the collateral. Rather, the Bank would retain its first

priority security interest on all assets existing pre-bankruptcy, as well as senior priority replacement liens on all assets of Sleepless arising post-bankruptcy to the extent of any deterioration or “diminution” in the value of the Bank’s interest in the collateral occasioned by the bankruptcy. King-Sized Money hopes to own the Sleepless’ business upon Sleepless exiting Chapter 11. As the DIP facility proposed by King-Sized is intended mainly to serve as a means to that end, King-Sized Money’s proposal offers more liquidity, better pricing and fewer covenants than the Bank’s financing proposal. Needless to say, Sleepless intends to accept King-Sized Money’s offer. The Chief Credit Officer is nervous. While the Bank is not being primed, the Chief Credit Officer knows that KingSized Money’s DIP proposal reduces the Bank’s role in the Chapter 11 case to an interested observer. For example, the Bank will not enjoy the increased pricing that would typically be earned by a DIP lender, it will not receive the typical bells and whistles associated with DIP lending (e.g., roll-up of pre-bankruptcy debt into post-bankruptcy debt, waivers, releases, etc.) and it cannot require compliance with typical Chapter 11 milestone covenants to ensure that the company is on track with its business plan. Further, and perhaps most disturbingly, relegated to the role of interested observer, the Bank will have little-to-no influence as to how or when its loan balance will repaid in the context of King-Sized Money’s sponsored plan of reorganization. If you were the Chief Credit Officer, what would you do? For starters, the terms, pricing and structure of the King-Sized Money’s DIP facility are not “market” for a DIP Lender whose primary motivation in providing the DIP credit facility is to obtain full repayment in cash of its loan. Rather,

the terms, pricing and structure of King-Sized Money’s DIP credit facility are intended to provide King-Sized Money with enough control over the Chapter 11 process to enable it to own the Sleepless business at the conclusion of the Chapter 11. As such, Overadvance Bank simply cannot compete with King-Sized Money for the DIP lending business in this case. As discussed above, without the protections and rights afforded by a DIP credit facility, Overadvance Bank will

long as the DIP financing terms do not violate the intercreditor provisions (and these DIP financing terms do not appear to conflict with the intercreditor provisions). If the Bank wants to object to the DIP financing, it will likely have to demonstrate to the Court that the Bank is not “adequately protected” because its collateral will be adversely affected by the financing. However, the Court may not show much sympathy to the Bank, because it will be argued that the junior lien lender is funding the col-

eral, the Bank can negotiate for various forms of adequate protection measures in exchange for the use of its cash collateral, such as requiring current pay of interest and fees, periodic pay downs of the principal loan balance, ongoing budget and financial reporting, cash collateral use termination rights upon any material deviation between actual and projected budgeted items, super-priority administrative claim for any collateral diminution and acknowledgment of lien and claim. While not perfect, with these

“... without the protections and rights afforded by a DIP credit facility, Overadvance Bank will likely find itself without sufficient control over its collateral and the company’s financial performance to maximize the potential for full recovery on its loan. ” likely find itself without sufficient control over its collateral and the company’s financial performance to maximize the potential for full recovery on its loan. Therefore, in order to obtain a better position in this case, the Chief Credit Officer is left with two basic alternatives: fight or negotiate (and perhaps ultimately, a combination of the two). If it is a fight, the Bank needs to assess its rights and obligations under the intercreditor agreement and applicable bankruptcy law. As noted above, while the intercreditor agreement between the Bank and King-Sized Money addresses DIP financing, it is not too helpful, given these facts. King-Sized Money is required to consent to DIP financing extended by the Bank (provided that the DIP financing terms satisfy certain conditions), but Sleepless is not willing to choose the Bank’s DIP financing terms to invoke this right. Moreover, King-Sized Money is not prohibited from extending junior lien DIP financing, so

lateral preservation costs for the benefit of the Bank’s senior lien, and any use of cash collateral by Sleepless is offset by the junior lien funding provided by KingSized Money. As such, rather than risk an adverse ruling from the bankruptcy court in a fight that appears to have a substantial degree of risk for the Bank, the Chief Credit Officer decides that the best course of action for the Bank is to try to negotiate concessions from Sleepless and King-Sized Money in exchange for the Bank’s consent. While King-Sized Money has the upper hand in negotiations as the selected DIP lender, there is value to both Sleepless and King-Sized Money in having the Bank support the DIP financing (e.g., avoids costly litigation and obtains more certainty in the Chapter 11 process). So, for example, if Sleepless expects to supplement the liquidity provided by King-Sized Money’s DIP financing by using of the proceeds of the Bank’s account receivable collat-

protections, the Bank can at least be in a better position to ensure that the Chapter 11 case is not conducted in a manner that could jeopardize the Bank’s prospects of a full recovery on its loan. We hope you enjoyed the column and, of course, are always interested in your feedback. As such, if you have any scenarios you would like to see discussed in a future column, please let us know at Dfiorillo@otterbourg.com or Jcretella@ otterbourg.com. TSL Dan Fiorillo and Jim Cretella are Members of the law firm Otterbourg P.C.

THE SECURED LENDER MARCH 2018 55

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CFA NEWS IN PRINT

Bank Leumi: Jeff Watts has joined as its new Southeast market president. In this role, Watts leads the Southeast Middlemarket team within the Commercial Banking division, based in Aventura, FL. He joins Leumi from City National Bank of Florida, where he held key leadership roles in commercial and private banking. “Jeff’s vast knowledge of commercial banking and keen understanding of the Florida community are tremendous assets to the team as we continue to provide unparalleled service to our clients,” said Shawn McGowen, head of Commercial Banking at Leumi. “I’ve known Jeff for over 15 years, and he is a proven leader. Leumi’s Southeast Commercial Banking business has been growing by double digits over the past few years, and I am confident that Jeff can build upon the incredible momentum we have established.” Watts brings more than 15 years of commercial banking experience to Leumi, all within the Florida market. He had been at City National Bank of Florida for more than eight years and, in his most recent role as Director of the Private Client Group, managed a business portfolio to serve highnet-worth clientele throughout Florida. Previously at City National, he spent six years as Broward County Market Executive, responsible for all corporate banking activities in Broward and Palm Beach counties. Additionally, he spent time as a Corporate Banking Team Leader, implementing the bank’s commercial and middle-market banking strategy. From 2003 to 2009, Watts

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was a Commercial Banking Relationship Manager at Wachovia and Wells Fargo, leading the bank’s efforts to grow its Broward County market share. Prior to commencing his banking career, Watts was Regional Sales Manager for Classroom Connect, a high-tech company dedicated to helping K-12 educators integrate technology into their instruction. Crestmark: Janice (Jan) Ibey has joined as regional first vice president and business development officer for the West Division. Ibey joins the Los Angeles team to build value for small- and medium-sized businesses in the California market. As regional first vice president and business development officer for the West Division, she reports to Steve Hansen, first vice president and West Division sales manager. With more than 25 years of experience in financial services, structured finance and capital markets, Ibey joins Crestmark from LendSpark, where she served as managing director for middlemarket lending, providing customers with asset-based lending, equipment financing and subordinated debt. Ibey co-founded and led three financial services and advisory firms in the past decade: Cinergy Commercial Capital, Fortes Financial, and Transcendence Advisors— all in California. She has been senior vice president at South Lake Mortgage Capital, AMRESCO Credit Corporation, and Mercury Savings and Loan. She also served on the executive committee of Finance America LLC, a Lehman Brothers company, where she was managing director of capital markets. Ibey earned an applied bachelor degree in professional studies with an emphasis on housing and real estate from San Diego State University. She volunteers on the board of directors for Serna Academy, a new high school that provides sobriety and support programs for students in Orange County. Crestmark is also pleased to announce

the appointment of Howard Brown as senior vice president and chief technology officer (CTO). Brown is based at the company’s corporate offices in Troy, and will report to president and chief operating officer Mick Goik. Brown brings over 12 years of IT experience to Crestmark. He most recently served as vice president and chief information officer for WyHy Federal Credit Union, where he was responsible for managing a team of project managers tasked with the development of programs for disaster recovery, data center migration, and cloud solution implementation. Previous work history includes Central Macomb Community Credit Union, where he was vice president of IT; CIG Corp, where he served as director of IT and project management; D. R. Hunt & Associates, where he was assistant director of IT and project management; and Robert Half Technology, where he was IT manager. Brown earned a bachelor degree in computer information systems from University of Alabama at Birmingham. He is currently pursuing a master degree in business administration with a concentration in information systems from Walsh College. Encina Business Credit, LLC (EBC): Clark D. Griffith has joined as senior managing director to lead originations on the West Coast. Griffith, who is based in Los Angeles, has nearly 20 years of experience in assetbased lending and commercial finance, mostly with GE Capital. He previously served as senior managing director of GE Capital Structured Finance in Japan and was ultimately named an officer of GE Japan. Prior thereto, Griffith was a senior vice president at GE Corporate Lending, where he held positions in both originations and risk management in Los Angeles and San Francisco. He also served in various risk management roles at GE Capital headquarters in Connecticut. Griffith can be reached at cgriffith@encinaBC.com.

Launched in March 2016, EBC is an independent asset-based lending platform targeting middle-market borrowers in the U.S. and Canada that cannot obtain required financing from traditional banks. The firm provides revolving lines of credit and term loans ranging in size from $5 – $50 million and secured by accounts receivable, inventory, machinery and equipment and real estate. The platform lends to both privately-owned (sponsor and non-sponsor) and publicly-traded companies across a wide range of industries, including manufacturing, retail, automotive, oil and gas, services, distribution and consumer products. Borrowers use loan proceeds to fund working capital, acquisitions, refinancings, growth, restructurings/turnarounds, debtor-inpossession (DIP)/exit financings and other special situations. Positive cash flow is not a requirement. ENGS Commercial Finance Co. (ENGS), an industry leading commercial finance company, is pleased to announce that Salvatore (Sal) M. Trupiano has joined the company as vice president, credit and underwriting for the company’s Working Capital Finance subsidiary, ENGS Commercial Capital (ECC). In this role, Trupiano will focus on process management, the underwriting of new business transactions, and the development of credit procedures. Trupiano brings over 29 years of experience in the factoring and asset-based lending industry with organizations such as Dimmitt & Owens Financial, Porter Capital Corporation, and most recently with The Commercial Finance Group, where he held the position of SVP of operations and portfolio management. Tania Daniel, managing director of ECC, commented, “Sal brings an immense wealth of industry knowledge and experience that will greatly benefit our clients,” Daniel continued, “We are thrilled that he has joined our growing team of professionals, and know that Sal’s commitment

to the highest standards will make him an integral part of the growth and overall success of ENGS Commercial Capital.” ECC is a working capital finance company that specializes in helping its clients with their cash flow needs. ECC provides factoring and asset-based lending solutions, equipment finance, insurance options, and back office support. ECC is a subsidiary of ENGS Commercial Finance Co. ENGS Commercial Finance (ENGS) is a full service commercial finance company specializing in Equipment finance, working capital finance, and insurance. Our industry-specific vendor finance programs are committed to service, speed, and simplicity. Since 1952, ENGS has been consistently lending and helping its customers expand their businesses. In 2016 ENGS was recognized as a leading independent finance company within the U.S. by The Monitor. www.engscapital.com ENGS Commercial Finance Co. (ENGS) announced the launch of a new, interactive website (www.engsfinance.com) and logo as part of a rebranding effort to reflect its commitment to provide the best and most advanced technology offering. This new website also more clearly illustrates ENGS national diversified commercial finance strategy which provides equipment financing to the truck & trailer, industrial and construction segments, along with working capital and insurance products. This rebranding aligns with the design of its new mobile-friendly website which offers a dynamic, interactive and user-friendly experience. While navigating through the new website, www.engsfinance.com, users can apply for financing, contact customer support, browse off-lease equipment, among other added benefits. Craig Weinewuth, CEO of ENGS Commercial Finance Co., commented, “When we purchased ENGS in 2012, it was our strategy to grow this business into a national, leading and diversified commercial finance lender able to satisfy our clients’

many finance needs across multiple industry verticals and product offerings. We now offer a full suite of financial products across several industries to help our clients grow their businesses. “Now is the perfect time to update our branding to better reflect our full offering of products and services,” commented Jim Freund, executive vice president. “The new logo exudes a clean, modern, and crisp feel yet preserves our heritage, and the new website showcases the evolution of ENGS as we continue our early-on commitment to expand and diversify the business.” FGI: David DiPiero, president and CEO of FGI (www.FGIWW.com), announced that Victoria Levine has joined the firm as director of business development. In this position, Levine will be responsible for business activity throughout the Northeast, with a focus on maintaining and strengthening relationships with fellow lenders, finance companies, equity sponsors and other intermediaries. “With ten years of experience in middlemarket lending, credit insurance and business development, Victoria brings with her a wealth of experience and industry knowledge. She is a tremendous asset to our company and we are very excited that she has rejoined our team,” said David DiPiero. Levine added, “I began my career at FGI Risk, where my primary focus was on sales and marketing of trade credit insurance. I’m thrilled and honored to be back, this time at FGI in the role of director of business development.” Prior to joining FGI, Levine was a director at Siena Lending Group, where she managed and grew the company’s ABL Alliance program, a back-office solution for community and regional banks looking to expand into asset-based lending. During her tenure there, she was also responsible for business development, providing assetbased loans to middle-market companies.

THE SECURED LENDER MARCH 2018 57

the cfa brief

Before that, Levine served as a senior sales executive at Coface North America, where she was responsible for providing clients with solutions to protect them against the risk of financial default of their clients. Levine was born and raised in Armonk, NY and holds a bachelor degree in mathematics and international economics from the University of Southern California. FGI (www.FGIWW.com) is a global leader in the commercial finance and services industry, equipping small and medium enterprises with the tools they need to safely grow their business. FGI’s two principal business units, FGI Finance and FGI Risk, provide clients with flexible and customized lending and risk mitigation solutions designed to support international and domestic growth. Headquartered in New York City, FGI maintains a presence on six continents with clients in over 60 countries around the world. Fifth Third Bancorp: Tom Heiks, president of North Carolina, which includes the bank’s Virginia and South Carolina employees, has been named head of Commercial Middle-market banking. In addition to his new duties, he will continue to lead the bank as a regional president, reporting to Lars Anderson, chief operating officer. “I am pleased to announce Tom’s expansion of responsibilities,” said Anderson. “He has consistently demonstrated his commitment to helping our commercial customers grow their businesses.” Heiks has been with Fifth Third for over 25 years and has had multiple commercial banking roles in North Carolina and Michigan. He has been responsible for all aspects of client management as well as for developing and directing commercial banking, corporate treasury management and professional services banking. “I am excited to take on this expanded role,” said Heiks. “I have a longstanding passion for helping customers capitalize on their business goals, and look forward to expanding that passion across the

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bank’s footprint. I am also excited to announce that Lee Fite has been named market president.” Fite, a lifelong native of the Carolinas, currently serves as a senior commercial banker. In his new role, he will continue to be responsible for the Carolinas Commercial banking teams reporting to Heiks. Fite will also lead the integration of all commercial capabilities and solutions. Both will continue to reside in Charlotte, where they are active community members with commitments to numerous boards throughout North Carolina. Heiks serves on the board of directors of the North Carolina State Chamber and the North Tryon Vision Plan. He is a member of the Charlotte Chamber of Commerce Board of Advisors and is also a campaign chair for the United Way of Central Carolinas. Fite is a board member of Discovery Place, Charlotte Regional Partners, and Wake Forest University Charlotte MBA program. He has chaired annual campaigns for the Arts and Science Council and the bank’s United Way program. Marquette Transportation Finance, LLC: Rob Gole was hired as senior vice president of sales. In his role, he is responsible for building new business opportunities while supporting existing client relationships. Gole has more than 30 years of experience in the banking and financial services industry including factoring, asset-based lending and equipment financing. Prior to joining Marquette, he was vice president, business development officer at Triumph Business Capital and at TAB Bank. “We are thrilled to add Rob to our growing team at Marquette Transportation Finance,” said DiAne Reed, executive vice president, director of national sales at Marquette. “His vast experience and knowledge of the industry will only enhance the work our team is able to produce for our clients.” Gole graduated from Cornell University with a master’s degree in business ad-

ministration and the University at Albany with a bachelor degree in economics. He is very active in the trucking industry and commercial markets with involvement in American Trucking Association, Truckload Carriers Association, Commercial Finance Association, Turnaround Management Association, Association of Corporate Growth and International Factors Association. Marquette Transportation Finance, LLC (MTF), a subsidiary of UMB Bank, n.a., is located in Bloomington, Minnesota and is a leading provider of accounts receivable financing solutions for the trucking industry, serving companies with annual revenue from $2 million to $400 million. MTF assists trucking companies in meeting their working capital needs to drive growth, fund acquisitions, improve liquidity, and fund restructures. MTF continuously works to implement industry-best practices and remain up-to-date through its memberships in American Trucker Associations, Truckload Carriers Association, and various state trucking associations in its regions. MTF is small enough to be nimble by controlling how it manages and offers its services, while also providing strength through its parent company, UMB Bank, n.a., and its ultimate parent company, UMB Financial Corporation. Opus Bank announced the expansion of its Commercial Banking and Business Banking teams with the hires of two additional senior bankers. Brandon Jones, a 17-year banking and finance veteran, joined Opus as director, client manager and is responsible for further expanding Opus’ commercial and corporate client base in Orange County, CA. Matthew Alsua, a 20-year banking veteran, joined Opus as director, business banking client manager and is responsible for partnering with Opus’ retail banking teams to provide tailored client-centric solutions to small businesses throughout its West Coast footprint. Geoff Anfuso, executive vice president,

CFA IS LOOKING FOR THE BEST AND BRIGHTEST IN THE INDUSTRY

CFA 40 UNDER 40 AWARDS

NOMINATE A RISING STAR NOW

YOU KNOW THE TYPE: ENERGETIC SELF-STARTERS WITH SUPERIOR SKILLS. THEY GET NOTICED. DO GREAT WORK....

and they haven’t even reached 40. The 3RD ANNUAL 40 UNDER 40 AWARDS will celebrate the achievements of young professionals in the commercial finance industry — movers and shakers who exemplify true excellence in their careers and who bring a strong voice and commitment to the industry at large. Last year’s 40 UNDER 40 celebration drew over 350 current and future industry leaders and was THE New York networking event of the fall. Make sure your rising stars are represented this year! All nominations are due by May 1, 2017. For further questions, please contact Michele Ocejo at mocejo@cfa.com.

Visit www.cfa.com/40under40 to start nominating now!

CFA 40 UNDER 40 AWARDS

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co-chief lending officer, head of Commercial and Specialty Banking, stated, “We are proud to have Brandon join Opus’ Commercial Banking team in Orange County. Brandon is a highly regarded banker with deep roots and a wealth of experience structuring and delivering asset-based, acquisition, and term financing; treasury management services; and owner occupied real estate lending solutions to entrepreneurs, business owners, and lower-middle and middlemarket companies in Orange County.” Ryan Baderian, senior vice president, senior managing director, head of business development, stated, “I am pleased to welcome Matt as he joins Opus’ Business Banking team. Matt holds a tremendous depth of experience in his market, providing banking products, services, and solutions to entrepreneurs, business owners, and small businesses.” Baderian added, “We look forward to Matt’s contributions as Opus continues to grow its loan origination volumes, deposit base, market presence, and overall relationship-based commercial banking franchise in the metropolitan markets on the West Coast.” Jones joins Opus most recently from First Citizens Bank, where from 2015 he served as Vice President, Commercial Banker. While at First Citizens Bank, Jones was responsible for managing and growing a portfolio of middle-market commercial clients in the Southern California markets of Orange County and the Inland Empire. From 2011 to 2015, Jones served as vice president, business banking officer at Bank of the West, where he was focused on building client relationships with and providing depository, lending, and treasury management solutions to small and lower middle-market businesses in the South Bay and downtown areas of Los Angeles. From 2007 to 2011, Jones served as vice president, business development officer at Union Bank, where he was responsible for developing and growing a portfolio of senior term, commercial real estate, and SBA loans. Earlier in his career, Jones served

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as Premier Banking Client Manager at Bank of America. Jones began his career in 2000 at UBS/PaineWebber, where he served as financial advisor. jones holds a bachelor of science degree in business administration with an emphasis in finance from Loyola Marymount University. Alsua joins Opus from Union Bank, where he served from 2004 to 2017, most recently as vice president, portfolio manager/business client advisor. While at Union Bank, Alsua focused on providing senior debt financing and banking products and solutions to small and lower-middle-market companies in Orange County, CA. Earlier in his career, Alsua served as assistant manager within the retail banking divisions of US Bank and Wells Fargo. Alsua began his banking career at Wells Fargo in 1997.

holds a bachelor degree in economics with concentrations in finance and marketing from The Wharton School at the University of Pennsylvania. PNC Business Credit is the senior secured lending division of PNC Bank, N.A., and its subsidiaries and a part of The PNC Financial Services Group, Inc. PNC (NYSE: PNC) is one of the largest diversified financial services institutions in the United States, organized around its customers and communities for strong relationships and local delivery of retail and business banking including a full range of lending products; specialized services for corporations and government entities, including corporate banking, real estate finance and asset-based lending; wealth management and asset management. www.pnc.com

PNC Business Credit announces two appointments to its senior secured financing teams in Canada and the Midwest region. Patrick Mercieca joins PNC’s senior secured financing team as vice president and business development officer. Based in Toronto, he is responsible for originating asset-based and cash flow loans across Canada with middle-market companies and private equity firms. Mercieca joins PNC Business Credit from Wells Fargo Capital Finance, where he most recently served as assistant vice president for loan originations. He holds a bachelor of commerce degree from Bishop’s University in Quebec. A six-year PNC veteran, Felicia Leksono has been named vice president and business development officer with the senior secured financing team. Based in Pittsburgh, she is responsible for business development with private equity firms and middle-market companies, as well as origination of asset-based and cash flow loans in the western Pennsylvania and West Virginia markets. Leksono most recently served as a solutions specialist with PNC’s Treasury Solutions Group. She

Regions Bank and Regions Financial Corp.: John M. Turner Jr. is the new president of Regions Bank and Regions Financial Corp., the bank’s holding company. Turner replaces Grayson Hall who remains chairman and CEO. Hall was named president in 2009 and became CEO in 2010 and Chairman of the Board of Directors in 2013. Turner, who joined Regions in 2011, is a senior executive vice president, a member of the bank’s executive council, and head of the company’s Corporate Banking Group, which serves small businesses as well as middle-market and corporate firms. He is also responsible for corporate strategic planning and will remain head of the Corporate Banking Group. “John’s promotion is an example of Regions’ talent management process, which ensures that the company develops its executives to assume greater responsibility and provides continuity of management,” Hall said. Turner previously served as the regional president of the company’s South Region and led banking operations in Alabama, Mississippi, South Louisiana and the Florida Panhandle. He was named head of

No matter how we say it, weâ&#x20AC;&#x2122;re happy to have you CFA 2018 Welcomes Service Providers as Members This is a milestone in our 75-year history, and the next step in becoming the essential community for all organizations and professionals who deliver and enable commercial lending. To learn more about joining CFA, community.cfa.com/membership or contact James Kravitz, Business Development Director, (646) 839-6080 or jkravitz@cfa.com.

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Regions’ Corporate Bank in 2014. He previously served as president of Whitney National Bank and Whitney Holding Corporation in 2008. Previously he was responsible for all geographic line banking functions across the bank, and was the company’s Eastern Region President. Turner also spent nine years at AmSouth Bank, where he held senior consumer, commercial and business positions. Turner holds a bachelor degree in economics from the University of Georgia and serves on the Public Affairs Research Council of Alabama, Business Council of Alabama, A Plus Education Foundation and Infirmary Health System boards. He is a former chairman of the Mobile Area Chamber of Commerce, former chairman of the Mobile Area Education Foundation, a former chairman of the United Way of Southwest Alabama, and a graduate of Leadership Alabama. He is a former board member of Leadership Mobile. Sterling National Bank: Priti CapoorSavage has joined the bank as a managing director and senior vice president in its Iselin, NJ office. Capoor-Savage will be reporting directly to Robert Koar, senior managing director at Sterling. CapoorSavage will focus on generating new client relationships across Sterling’s growing footprint in New Jersey. Capoor-Savage has over 37 years of experience in commercial banking. Prior to joining Sterling National Bank, she was a senior vice president at Fulton Bank of New Jersey and a senior vice president at Capital One Bank. Capoor-Savage began her career with Citibank, where she held many positions during her 28 years with the organization. “We are thrilled to welcome someone with Priti’s demonstrated track record in commercial and middle-market banking to the New Jersey team,” said David S. Bagatelle, President – New York Metro Markets. “She brings to Sterling innovative thinking and the ability to harness team dynamics

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to develop strong client relationships and drive growth.” Capoor-Savage obtained a Masters in psychology from the University of New Delhi and achieved her certificate in advanced commercial lending from the Bank Management Institute in Buffalo, New York. Sterling National Bank also announced that C. Terry Adkins has joined the bank as VP and managing director of Commercial Services. Adkins will report directly to Adam Dejak, SVP of Sales at Sterling. Adkins will be responsible for new business development, client relationship management, and generating new business opportunities across Sterling’s commercial finance businesses. Adkins was most recently vice president at LSQ Funding and Summit Financial, where he managed bank partnerships, oversaw asset-backed financing products and was a top originator in the Virginia, Maryland and D.C. metro markets. A member of the Maryland Bankers Association, Adkins has held several positions in the banking industry over the course of his career. “We are excited to add Terry’s dynamic banking and extensive lending experience to our team,” said Tom Geisel, Sterling’s EVP and president for Specialty Finance & National Markets. “He has deep market knowledge of the Mid-Atlantic region, strong industry relationships and a successful track record in helping clients identify and implement the right solutions.” Adkins holds a bachelor of science degree from the University of Baltimore. SunTrust Robinson Humphrey (STRH), the corporate and investment bank of SunTrust Banks, Inc. (NYSE: STI), announced it has hired Kevin Carpenter as a managing director in its Technology & Services Investment Banking group. Carpenter brings more than 15 years of industry experience, having worked in the healthcare information technology sector as both an operating executive and an investment

banker. He will lead healthcare information technology coverage for the firm. Charlie Deason will also join STRH as a vice president to work with Carpenter. Carpenter and Deason are both based in Atlanta. “We are very pleased to welcome Kevin and Charlie to SunTrust Robinson Humphrey and look forward to them contributing to our record growth and success,” said John Gregg, chairman & CEO of STRH. “This is a rapidly growing and evolving market where deep expertise and tailored solutions are most valued. Their years of investment banking and corporate development experience in the healthcare information technology sector will be of significant value to our corporate and financial sponsor clients.” Carpenter joins STRH from Cotiviti, where he led corporate development. Previously, he served in variety of strategy, operating and corporate development roles at Verisk Analytics, including chief strategy officer of Verscend Technologies (formerly Verisk Health). Before joining Verisk, Carpenter was an investment banker for more than 10 years, providing advisory services to healthcare information technology and healthcare services companies. Deason was also most recently with Cotiviti, where he held posts in corporate finance and corporate development. Prior to Cotiviti, he was an investment banker at Oppenheimer & Co., where he focused on healthcare information technology companies and managed care organizations. SunTrust Robinson Humphrey (STRH), the corporate and investment bank of SunTrust Banks, Inc. (NYSE: STI), announced it has hired Ken Brandes as a managing director in its Energy Investment Banking group. Brandes will lead midstream sector coverage for the firm from STRH’s Houston, TX office and brings 20 years of industry experience, having worked as an investment banker, principal investor and operating partner in the U.S. midstream sector. “We are pleased to welcome Ken to SunTrust Robinson Humphrey and look

forward to him bringing his advisory expertise to our midstream client base,” said John Gregg, Chairman & CEO of STRH. “We have been committed to the midstream sector for many years and Ken will help STRH deepen and expand our relationships. The midstream sector provides critical infrastructure throughout the U.S. and is an evolving market where deep expertise and tailored solutions are most valued.” Brandes joins STRH from Seaport Global Securities in New York, NY and his prior experience includes a principal investing role at Brookfield Infrastructure Partners and investment banking at Macquarie Capital and Citigroup. TD Bank, America’s Most Convenient Bank®: Nick Miceli was named regional president, Florida. Miceli will oversee TD Bank’s commercial, retail, small business, specialty banking operations and lending services throughout the state. “I’m thrilled to take on this role to further our increasing business in Florida,” said Miceli. “Our team in Florida has achieved significant growth, and I look forward to joining the team. Similarly, I’m quite eager to engage with our communities throughout Florida, and partner to provide our local customers, businesses and organizations with the support and service they’ve come to expect from TD.” Most recently, Miceli spent nearly ten years as commercial market president for TD Bank in New Jersey. He joined TD Bank in 1998 as middle-market lender and was named regional vice president of Essex County, NJ in 2003. Prior to joining TD Bank, Miceli held positions with legacy Bank of America organizations. “Nick’s leadership has been critical to the success of the Central New Jersey market through organic and de novo growth,” said Ernie Diaz, head of consumer distribution at TD Bank. “He is well regarded as a dynamic leader who lives by TD Bank values and delivers exceptional service to

our customers and employees alike. I have the utmost confidence that he will excel in his new role and lead the Florida region to unparalleled success.” “We’ve built excellent relationships with commercial partners throughout Florida, and Nick is certainly up to the task of continuing to establish TD as a meaningful, valuable partner within Florida’s business community,” said Chris Giamo, head of Commercial Banking, TD Bank. A passionate community leader, Miceli serves on several boards, including The New Jersey Performing Arts Center, Special Olympics New Jersey, Rutgers Business School, WBGO Newark Public Radio, Jazz House Kids and Caucus Education Corporation. Miceli holds a bachelor degree in business management and marketing from Rutgers University. Miceli will be based in South Florida. Wells Fargo Middle Market Banking announced that it has promoted 28-year banking veteran John Favret to lead its New Orleans team as regional vice president. Favret succeeds Doug Kilton, who launched the office in 2011 and recently transitioned to a commercial banking leadership role in Houston. Favret, who grew up in New Orleans, returns there to oversee a team of experienced commercial lending professionals who deliver Wells Fargo’s localized lending approach to privately held, middle-market companies with revenues of $20 million and higher. The bank’s Middle Market Banking office provides more than 80 Wholesale Banking services to clients in industries such as agriculture, manufacturing, wholesale, retail, distribution, and technology. Wells Fargo’s growing New Orleans Middle Market Banking team has become a model of employee diversity. Nine of its 13 team members identify as diverse, comprising a representative cross-section of the community. Along with its strides in diversity, the team has grown loan commit-

ments by millions and grown market share over the past six years. “John will continue Doug’s great work and lead this dynamic team to even greater heights in years to come with integrity, diligence, and commitment to helping companies grow,” said Sam Belk, Mid-South Division manager for Wells Fargo Middle Market Banking. Most recently, Favret served as Real Estate Advisory Division territory manager for the Southeast U.S., responsible for the Carolinas, Florida, Georgia, Mid-Atlantic, and Mid-South divisions. Favret began his banking career in 1989 at Southeast Bank, before it became First Union Bank, then Wachovia, and now Wells Fargo. Throughout his career, Favret held leadership positions in commercial banking, large corporate banking, underwriting, assetbased lending, and real estate. He earned a bachelor degree in accounting and finance from University of Florida. Wells Fargo Middle Market Banking announced that 26‑year banking veteran Douglas E. Kilton now leads its Houston Middle Market Banking team as regional vice president. Kilton replaces Rosine Matthews, who recently transitioned to another leadership role within the bank. In his new role, Kilton now oversees Wells Fargo’s commercial lending operations for metro Houston, providing loan, treasury management, and deposit products to privately held, middle-market companies with revenues of $20 million and higher. His team delivers a localized lending approach, providing more than 80 Wholesale Banking services to clients in industries such as agriculture, manufacturing, wholesale, retail, distribution, and technology. Prior to his new role, Kilton launched Wells Fargo’s New Orleans office in 2011, which has become a model for diversity in commercial banking. Sixty-nine percent of the employees there identify as diverse, comprising a representative cross-section

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of the community. Along with its strides in diversity, the team has garnered millions in loan commitments and grown market share over the past six years. “Doug has been an outstanding Wells Fargo leader in New Orleans, where he built a strong team and longstanding client relationships,” said Jonathan Homeyer, South Texas division manager for Wells Fargo Middle Market Banking. “Doug is making an immediate impact in Houston, leading with integrity, diligence, and commitment to helping companies grow.” In 1991, Kilton joined Wells Fargo predecessor Wachovia, where he served in a number of leadership roles, including head of Wachovia Commercial Banking in Columbia, South Carolina, and head of Wachovia Business Banking in Washington, D.C. Kilton earned a bachelor degree from Auburn University. He completed advanced foreign language studies at McGill University in Montreal, Quebec, and Middlebury College in Middlebury, Vermont. He was awarded a Fulbright scholarship upon graduation from Auburn, where he recently served as chairman of the Honors College campaign committee. Kilton currently serves on the Auburn Alumni Association board of directors. In addition to eight Middle Market Banking offices, Wells Fargo has nearly 200 Community Bank branches throughout Texas, as well as nine mortgage locations, 12 Wells Fargo Advisor offices, and 335 ATMS. Kilton joins nearly 20,000 Wells Fargo team members who live, work, and support a broad range of commercial, corporate, and individual customers in Texas. They also volunteered 143,703 hours in 2016. Wells Fargo donated more than $10,700,000 to 1,236 Texas nonprofits and schools that same year. Wells Fargo & Company (NYSE: WFC) announced that effective immediately it has appointed Mary Mack to head the company’s Consumer Lending business, in

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addition to Community Banking, expanding the senior executive vice president’s responsibilities. Mack’s new role includes the Community Banking organization, which she has led since July 2016, and Consumer Lending, which includes Wells Fargo Home Lending, Wells Fargo Dealer Services and the student lending and personal lines of credit businesses that make up its Personal Lending organization. In total, Mack’s new organization employs 115,000 team members and offers a full suite of financial products and services to consumer and small business customers across the nation. “By combining Community Banking and Consumer Lending, we are creating a more holistic approach to delivering retail banking services to our customers, which will only enhance how we help our customers succeed financially,” said Tim Sloan, president and CEO. “Mary’s proven leadership skills, resiliency and the principled way she has driven change throughout her career have earned her the respect of her customers, colleagues and teams and the opportunity to lead this combined organization.” Mack, a 33-year veteran of Wells Fargo, has led the transformation of Community Banking, including the elimination of product sales goals for retail bankers, the implementation of new compensation plans and training programs for managers and branch personnel, improved monitoring and controls, comprehensive process improvements to reshape the customer experience, and restructured regional leadership. All these changes are focused on rebuilding trust with the retail bank’s key stakeholders and aligning the focus of its team members with the interests and financial goals of customers. Prior to taking on leadership of Community Banking, Mack was head of the Wells Fargo Advisors retail brokerage business. In her new role, Mack will continue to serve on the company’s Operating Committee and report to Sloan. “I am incredibly excited about this op-

portunity to bring together these talented teams with a common purpose to provide the best in financial service and advice to our customers,” said Mack. “I look forward to engaging with the team as we chart the path forward to deliver exceptional experiences and value to our customers.” In addition to Community Bank leaders, Consumer Lending leaders reporting directly to Mack include Michael DeVito, interim leader of Wells Fargo Home Lending, the country’s largest mortgage operation; Laura Schupbach, head of Wells Fargo Dealer Services; and John Rasmussen, head of Personal Lending.

CFA WELCOMES NEW MEMBERS Blank Rome LLP The Chrysler Building New York, NY 10174 Lawrence F. Flick II Tel: (212) 885-5556 Email: flick@blankrome.com Web: www.blankrome.com Blank Rome has served as counsel to the asset-based lending industry for over 50 years. Its finance practice helps client’s structure and complete complex transactions for working capital growth, recapitalizations, turnarounds and acquisition financings. Consistently ranked top-tier by Chambers USA, the practice focuses specifically on complex financial transactions, representing senior and junior lenders and investors and has a significant presence in New York, Philadelphia, Washington D.C., and Los Angeles. Clients include a number of national and regional U.S. and international banks, specialty finance companies and a broad spectrum of investors, funds and other institutional lenders. Its Chambers USA recognized restructuring and bankruptcy practice represents assetbased lenders and other secured creditors in complex restructurings and bankruptcies and in enforcement matters. Blank Rome LLP is an Am Law 100 firm with 13 offices and more than 600

attorneys and principals who provide a full range of legal and advocacy services to clients operating in the United States and around the world. Lawrence F. Flick II Partner, Chair of Financial Services Group Blank Rome LLP Lawrence F. Flick II will serve as the firm’s representative on the CFA Board of Directors. Flick is the Chair of Blank Rome’s Financial Services group. Resident in both the New York City and Philadelphia offices, Larry has a national reputation as a leading finance attorney that includes more than 30 years of serving as a trusted advisor to banks, hedge and private equity funds, commercial finance companies and other institutional lenders in structuring and documenting complex loan transactions, as well as handling loan workouts and restructurings. Larry leads a team of 60-plus lawyers nationwide who together handle asset-based financing, leveraged cash flow loans, second lien and mezzanine financings, DIP and exit financings, as well as syndicated and unitranche facilities. Chambers USA, a globally recognized law firm ranking publication, has consistently ranked Larry as a leader in the area where he is listed as a “Band 1” attorney in the area of banking and finance law, since its first publication in 2003. Chambers USA has cited strong client feedback including, that Larry, “is probably the best transactionoriented, businessperson’s attorney that I know,” and he “gets in and finishes the deal.” Another Chambers source noted that he has a “strong reputation…particularly in asset-based lending.” Larry was also named the Deal Maker of the Year by Finance Monthly. He is active in the CFA, specifically on the board of the Education Foundation, a frequent lecturer at the Education programs and was past recipient of the Harry H. Chen Memorial Instructor Award for Excellence.

Chapman and Cutler LLP 111 West Monroe Street Chicago, IL 60603 Chapman and Cutler’s Commercial Lending Group represents a variety of state and federally chartered financial institutions, commercial finance companies, and domestic branch offices of banks chartered in Canada, Japan, France, the Netherlands, and Germany. Chapman’s commercial lending practice has been at the center of the firm’s identity and culture since it was founded more than a century ago. It regularly negotiates deals ranging from single-lender unsecured loans to secured, syndicated credit facilities. It has a depth of experience when it comes to asset-based lending, agribusiness lending, and leveraged buyout financing. The experience it has gained in many years of close collaboration with its clients gives firm attorneys a deep understanding of the business of commercial lending. Together with its clients it gets deals done. It works in specialized teams on behalf of its clients, keeping them involved through the lending process, from the initial structuring of the facilities through the negotiation of commitments, the drafting and negotiation of the loan documents, to the closing and beyond. In addition, its attorneys have extensive experience in debt restructurings and workouts, both inside and outside of bankruptcy. Steven Hastings Chapman and Cutler LLP 111 West Monroe Street Chicago, IL 60603-4080 Tel: 312.845.2958 Fax: 312.516.3958 Email: hastings@chapman.com Steve Hastings will serve as the firm’s representative on CFA’s Board of Directors. Hastings is the Co-Practice Group Leader of the Commercial Lending Group and a partner in the firm’s Banking and Financial Services Department. He represents

banks and other financial institutions in transactional matters as well as regulatory compliance. Steve has been practicing law since 1987 when he joined Chapman and Cutler LLP. He concentrates primarily on structuring and documenting secured and unsecured credit transactions. His experience includes work on asset-based financings, working capital and term loan financings, leveraged buy-out financings, and ESOP financings, including representation of lenders (individually and as agent) on workouts, debtor-in-possession financings, and debt restructurings. REPRESENTATIVE TRANSACTIONS ◗ Represented administrative agent and lead lender in a $455 million secured revolving credit facility extended to a national equipment transportation finance and leasing company. ◗ Represented administrative agent and lead lender in a $145 million secured revolving credit facility extended to a national equipment finance and leasing company ◗ Represented administrative agent and lead lender in a $120 million secured revolving credit facility extended to a national consumer finance company ◗ Represented secured lender in a $45 million secured revolving credit facility extended to a regional commercial finance company ◗ Represented administrative agent and lead lender in a $35 million secured revolving credit facility extended to a national automotive parts recycler ◗ Represented secured lender in a $12.6 million secured revolving credit facility extended to a food processor ◗ Represented DIP agent and lead DIP lender in a senior secured, super priority post-petition credit facility extended to a national agricultural grower PRESENTATIONS ◗ “Basics of Bank Lending”, C&C University, June 2010

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◗ “They’re Back: First Lien/Second Lien Intercreditor Agreements and Related Issues”, Chapman and Cutler CLE Marathon, May 2010 ◗ “Secured Transactions: Basic of UCC Revised Article 9”, Chapman and Cutler CLE Marathon, May 2008 ◗ “Commercial Lending, a Primer for Today’s Markets,” Chicago Bar Association Seminar. Otterbourg P.C. 230 Park Ave., New York, NY 10169 David W. Morse, Esq., Partner (212) 661-9100 • dmorse@otterbourg.com www.otterbourg.com Otterbourg P.C. is a law firm with a practice focused on the representation of financial institutions and creditors, including commercial banks, investment banks, assetbased lenders, factors, commercial finance companies and private credit funds in a wide range of legal matters, including loan documentation and workouts, mergers and acquisitions, bankruptcy proceedings, real estate, litigation and alternative dispute resolution. The firm has substantial experience in structuring, documenting and working out financing transactions, whether senior secured, second lien or unitranche, single lender or syndicated, and whether involving working capital loans, term loans, letters of credit and other forms of trade finance, or financing for leveraged acquisitions, working capital, Chapter 11 and exit financings, or the purchase of loans or loan portfolios and whether involving companies and assets in a single jurisdiction or throughout the world. The firm’s longstanding relationships with a network of prominent foreign law firms and other professionals around the world gives it the ability to work with the best counsel for a particular matter in any jurisdiction. It is also well known for its representation of individual institutional lenders, bank groups, commercial enterprises and other secured and unsecured creditors in complex, high-profile litigation

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and its role as co-general counsel for the Commercial Finance Association. David W. Morse, Esq. Partner Otterbourg P.C. David W. Morse will serve as the firm’s representative on CFA’s Board of Directors. Morse is a member of the law firm of Otterbourg P.C. in New York City and is presently head of the firm’s finance practice. Since joining the firm, he has specialized in the representation of banks, hedge funds, commercial finance companies and other institutional lenders in structuring and documenting domestic and cross-border loan transactions, including working capital facilities, financings for leveraged acquisitions and second lien loans, as well as loan workouts and restructurings. David has been recognized in Super Lawyers,

Best Lawyers and selected by Global Law Experts for the banking and finance law expert position in New York. David is a representative from the Commercial Finance Association in one of the current projects of the United Nations Commission on International Trade Law (UNCITRAL) concerning secured transactions law. He has given presentations as part of programs sponsored by various organizations and is the winner of the 2008 Harry H. Chen Memorial Award of Excellence presented by the Commercial Finance Association. Mr. Morse joined Otterbourg P.C. after graduation from New York University School of Law and he received his undergraduate degree from Amherst College.

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CHAPTER NEWS Atlanta On March 1, the Chapter held its Member Appreciation Night with speaker James Olson. On March 2, the Chapter, along with sponsor Sallyport Commercial Finance, held an indoor tennis event at Lifetime Athletic & Tennis Peachtree Corners in Peachtree Corners, GA. Attendees of all skill levels attended and post-event networking was offered afterwards at the Lifetime Café onsite. Save the dates for the following events the Chapter has planned in 2018: May 17, Atlanta Braves vs Chicago Cubs outing at SunTrust Park in Atlanta; May 18 for a tennis outing, and October 8 for a golf outing at Pinetree Country Club. For more information visit community.cfa.com/atlantachapter California The Chapter held a Women of CFCC - Art Class at Paint Lab in Santa Monica on February 8. The Chapter has many events slated for 2018 including: Presidents Panel at City Club in downtown Los Angeles on April 11; Summer Party at The Standard Rooftop on July 11; a Hot Topic Panel Discussion at the Luxe Summit Hotel on October 3; the Annual Fall Golf Classic at Coyote Hills Golf Course in October; a Women of CFCC event on October 18; a sponsor panel or networking event at Center Club – Orange County on November 15 and the Holiday Party at the Sheraton Universal on December 12. For more information visit community.cfa.com/californiachapter Charlotte The Chapter held “Inflation and Credit:

Auto Loans Say Hello. Who Else?” on February 27 at The Palm in Charlotte, NC. The panel featured Macro Strategist for international investment bank, Seaport Global Securities, Richard Hastings, who monitors trends in domestic and international markets. Energy and weather, demographics and housing, new ideas in IT, IoT, and AI – especially Amazon – are some of his most frequent themes. Hastings is well known for his warnings in 2006 and 2007 regarding the housing market and impending financial crisis. In late 2008, he predicted the stock market rally that began in 2009. A longtime veteran commentator on major TV business news channels, Hastings’ comments appear regularly in MarketWatch. com, and in other business media outlets, both domestic and international. He is a frequent speaker at conferences and industry events. For more information, visit community.cfa.com/charlottechapter Europe The Chapter held its Topical Issues & Market Conditions for ABL in 2018 - An Environmental Scan - at KPMG in London on February 28. The event focused on three key areas: the economic landscape, ABL today and sector-specific activity. The expert panel each took the podium to share their insights and knowledge before they convened for an interactive panel discussion. The event concluded with a networking reception. Speakers included Professor Trevor Williams, economist, visiting professor at the University of Derby and Marc Finer, director, Debt Advisory, KPMG. For more information visit community.cfa.com/cfaeurope Florida The Chapter held its TMA - CFA Night with the Florida Panthers on February 22 at the BB&T Center in Sunrise, FL. Attendees enjoyed the all-inclusive Corona

Beach Club at the arena. On February 27, CFA-Orlando hosted a panel, Tax Cuts & Jobs Act - The Full & Real Story Behind The Act, at the Citrus Club in Orlando, FL, with featured speaker James S. LaHam, senior tax partner of Berman Hopkins Wright & LaHam CPAs and Associates, LLP. On February 28, CFA-Tampa held its February Luncheon at The Center Club Tampa featuring speaker Bob Brumm, discussing “The Positive Perspective: How to Achieve your Goals Through Positive Action.” Brumm is an awardwinning speaker, author and encouragement engineer. On April 17, the Chapter will host Mark Vitner, senior economist, Wells Fargo Securities LLC, who will discuss the economy at the Lauderdale Yacht Club in Ft. Lauderdale, FL. For more information visit community.cfa.com/floridachapter Houston The Chapter held a 2018 U.S. Economic Outlook Luncheon - presentation by Mark Vitner of Wells Fargo on February 20 at The Briar Club. This event was rescheduled from January. The presentation covered a diverse range of economic topics, examining both national and local trends. It examined what has driven growth in this long-lasting recovery and what is believed to be sources of growth as we move forward into 2018. Attendees learned about macroeconomic trends that are driving growth across the country, interest rates, bond yields, and federal policies and their economic impacts and regional commentary on Texas and Houston. For more information visit community.cfa.com/houstonchapter Michigan On March 15, the Chapter will hold its March Madness Networking Event at Tequila Blue in Royal Oak along with RMA

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East Michigan and ACG Detroit groups. Food and two premium drink tickets will be included with registration. Guests may also participate in a friendly March Madness bracket competition for a chance to win various prizes throughout the event. For more information visit community.cfa.com/michiganchapter MidSouth On January 25, the Chapter held an event in Birmingham, AL (venue location TBD at press time) featuring Joe Brusuelas, chief economist at RSM US LLP f/k/a McGladrey LLP, the nation’s leading provider of assurance, tax and consulting services focused on the middle market. Brusuelas is responsible for delivering macroeconomic insights to help middlemarket leaders succeed. Prior to joining RSM, Brusuelas served as a senior economist at Bloomberg LP. He is also a former director at Moody’s Analytics, and Chief Economist at Merk Investments and IDEAglobal. For more information visit community.cfa.com/midsouthchapter Midwest The Chapter held its 6th Annual Blackhawks Outing at United Center on February 15. Save the date for the 24th Annual Cubs Outing on May 23 at the Wrigley Rooftop Deck and the 29th Annual Golf Invitational on July 19 at The Harborside International Golf Center. For more information, visit community. cfa.com/midwestchapte Minnesota The Chapter will hold a Lunch and Learn on March 9 at Faegre Baker Daniels LLP in Minneapolis. The Chapter will hold a Credit Market Update Panel on April 18 at IDS Center in Minneapolis. Local experts have been invited to share their insight into the latest trends and discuss the current state of the credit

DON’T MISS CFA’S 2018 EVENTS! WWW.CFA.COM

Wells Fargo Capital Finance. . . . . . . . . . . . . . . . . . . www.wellsfargocapitalfinance.com. . . . Page 2 William Stucky & Associates, Inc.. . . . . . . . . . . . . . www.stuckynet.com. . . . . . . . . . . . . . . . . . . . . Page 1

market. The Chapter will host a Lunch and Learn on May 16 at Lake Monster Brewing in St. Paul, MN. The Chapter’s Summer Social will be held on August 8 at The Minneapolis Club in Minneapolis. For more information, visit community.cfa.com/minnesotachapter New Jersey The Chapter held a Women in Banking Joint Event with South Jersey RMA on February 26 at The Riverwinds Restaurant in West Deptford, NJ. On March 7 the Chapter held an event at TopGolf in Edison, NJ. Save the dates for the Joint NJCFA/NJTMA 2018 Golf & Tennis Outing on May 29, 2018 at the Essex County Country Club in West Orange, NJ and the 8th Annual Beach Party at the newly rebuilt Donovan’s Reef on July 19. For more information, visit community.cfa.com/newjerseychapter Philadelphia The Chapter will host the 11th Annual Philadelphia Credit & Restructuring Summit, on March 22, a joint event with the ABF Journal, the New York Institute of Credit, and the Philadelphia Chapter of the Commercial Finance Association. This half-day conference affords an exceptional opportunity to network with industry leaders including corporate restructuring and turnaround practitioners, lenders and other capital providers, attorneys, investment bankers and other intermediaries. The event will kickoff with a Judicial Jeopardy special event — you don’t want to miss the interaction between an esteemed group of U.S. bankruptcy judge contestants as they compete in a

unique version of the popular television game show. Save the date for The Chapter’s Day One at the Masters Networking Event on April 5, 2018 (venue still to be determined as of press time). The Chapter’s 24th Annual Golf Outing will be held at the Cedarbrook Country Club in Blue Bell, PA on May 14. For more information, visit community.cfa.com/philadelphiachapter For more information on CFA Chapters, please visit community.cfa.com/ch/ chaptersmain

CALENDAR March 7, 2018 CFA’s New Jersey Event Top Golf Edison, NJ March 9, 2018 CFA’s Minnesota Chapter - Lunch and Learn Faegre Baker Daniels LLP Minneapolis, MN March 13 – 15, 2018 ABL Basics Virtual Workshop Virtual March 13 – 16, 2018 CFA’s Field Examiner School Greenberg Traurig LLP Atlanta, GA March 15, 2018 CFA’s Michigan Chapter March Madness Networking Event Tequila Blue Royal Oak, MI March 22, 2018 CFA’s Philadelphia Chapter – 11th Annual Philadelphia Credit & Restructuring Summit Union League of Philadelphia Philadelphia, PA April 3-19 2018 CFA’s Factoring Fundamentals Virtual Workshop April 5, 2018 CFA’s Philadelphia Chapter – Day One at the Master’s Event Venue location TBD Philadelphia, PA April 11, 2018 CFA’s California -Presidents Panel City Club Downtown Los Angeles, CA

April 17, 2018 Vitner Talks Economy – Florida Chapter Event With Mark Vitner, Sr. Economist, Wells Fargo Securities LLC Lauderdale Yacht Club Ft. Lauderdale, FL April 18, 2018 CFA’s Minnesota Chapter - Credit Market Update Panel IDS Center Minneapolis, MN April 24 – 26, 2018 CFA’s Spring Advanced Field Examiner School Venue location TBD Los Angeles, CA April 24 – 26, 2018 CFA’s Workouts & Bankruptcy Workshop Venue location TBD Los Angeles, CA May 1 – 17, 2018 CFA’s Spring Operations Fundamentals Virtual Workshops May 14, 2018 CFA’s Philadelphia Chapter 24th Annual Golf Outing Cedarbrook Country Club Blue Bell, PA May 15 – 17, 2018 CFA’s Operations Bootcamp Venue location TBD Chicago, IL May 15 – 17, 2018 CFA’s 12th Annual International Lending Conference Mayer Brown Offices London May 15 – 18, 2018 CFA’s Field Examiner School Venue Location TBD Chicago, IL

May 16, 2018 CFA’s Minnesota Chapter - Lunch and Learn Lake Monster Brewing St Paul, MN May 17, 2018 CFA’s Atlanta Chapter - Atlanta Braves vs Chicago Cubs Outing SunTrust Park Atlanta, GA May 18, 2018 CFA’s Atlanta Chapter – Tennis Event Venue location TBD May 23 - 25, 2018 CFA’s Independent Finance and Factoring Roundtable Windsor Court Hotel New Orleans, LA May 23, 2018 CFA’s Midwest Chapter 24th Annual Cubs Outing Wrigley Rooftop Deck Chicago, IL May 29, 2018 CFA’s New Jersey Chapter – Golf & Tennis Outing Essex County Country Club West Orange, NJ June 5 – 7, 2018 CFA’s ABL & Factoring Basics Workshop Hahn & Hessen LLP New York, NY June 5 – 7, 2018 CFA’s Summer Loan Documentation Workshop Hahn & Hessen LLP New York, NY June 19 - 20, 2018 CFA’s Foundations of Account Management Holland & Knight LLP Dallas, TX

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June 19 - 21, 2018 CFA’s What’s it Worth? All You Need to Know About Inventory Holland & Knight LLP Dallas, TX July 10 – 26, 2018 CFA’s Summer Underwriting Fundamentals Virtual workshops

CFA’s Atlanta Chapter - Golf Outing Pinetree Country Club Kennesaw, GA October 18, 2018 CFA’s California Chapter Women of CFCC Event Location TBD

July 11, 2018 CFA’s California Chapter - Summer Party The Standard Rooftop Los Angeles, CA

October TBD, 2018 CFA’s California Chapter - Annual Fall Golf Classic Coyote Hills Golf Course Fullerton, CA

July 19, 2018 CFA’s Midwest Chapter 29th Annual Golf Invitational Harborside International Golf Center Chicago, IL

November 7 - 9, 2018 CFA’s 74th Annual Convention Hotel info to Follow San Diego, CA

November 15, 2018 CFA’s California - Orange County Event Sponsor Panel or Networking Event (TBD) Center Club - Orange County Costa Mesa, CA November 19, 2018 CFA’s New Jersey Chapter – Holiday Party Venue location TBD December 6, 2018 CFA’s Atlanta Chapter Joint CFA/TMA Holiday Party Venue location TBD December 12, 2018 CFA’s California - Holiday Party Sheraton Universal Los Angeles, CA

July 19, 2018 CFA’s New Jersey Chapter – Annual Beach Party Donovan’s Reef Sea Bright, NJ August 8, 2018 CFA’s Minnesota Chapter – Summer Social The Minneapolis Club Minneapolis, MN September 5 – 7, 2018 CFA’s Fall Advanced Field Examiner School Greenberg Traurig LLP Atlanta, GA September 5 – 7, 2018 CFA’s Operations Bootcamp Greenberg Traurig LLP Atlanta, GA October 3, 2018 CFA’s California Chapter - Hot Topic Panel Discussion Luxe Summit Hotel Los Angeles, CA October 8, 2018

DON’T MISS CFA’S 2018 EVENTS! WWW.CFA.COM

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TSL OPINION COLUMN

ndrea Petro Discusses Five Reasons to Support the Commercial Finance Association Education Foundation 2018 Individual Giving Campaign. The mission of the CFA Education Foundation (CFAEF) is: “to cultivate education, innovation and charitable works for the betterment of the commercial finance community.” Several major CFAEF projects are underway in 2018 to support the mission. We need your financial assistance to build and sustain these initiatives to improve the value proposition of the CFA for its members. 1. The Market Sizing and Impact Study The CFAEF is embarking on a foundational study to update, empirically document and independently quantify the industry’s breadth and depth. The information developed by the study will be invaluable for: ◗ Attracting debt and equity capital ◗ Providing inputs for valuing commercial finance companies ◗ Strategic planning for members and the CFA ◗ Developing a credible basis for advocacy ◗ Establishing a baseline for economic forecasting and bench marking. 2. The CFA Industry Confidence Index On a quarterly basis, the CFA, with support from CFAEF, will publish forward-looking economic confidence indicators derived from quantifiable data. Going forward, period-over- period comparisons will provide valuable

information to members to help gauge trends and shape responses. 3. CFA 40 Under 40 Awards The CFAEF will continue to plan and host the annual program that spotlights the industry’s future leaders. 4. Support the CFA Staff and Executive Committee The CFA and CFAEF are committed to improving the value proposition for all members. 2017 was a reset year and the baseline for improvement has been established. We need your financial assistance to implement the plans developed by our staff, volunteer leadership and members. 5. Pay it Forward Education is the key to innovation and beneficial change. Your investment in the CFAEF will provide information and educational opportunities, now and in the future, for you, your organization and the future leaders of the commercial finance industry. “We are looking forward to a transformational year for the Education Foundation and individual contributions will be an important key to our success. Challenges arising from shifting membership and industry needs that have built over a period of years have resulted in a renewed commitment to bolster and expand the mission and value of the Foundation. I believe 2018 will see a renewed energy and focus on improving the tangible services and benefit provided by the Foundation and a path forward of growth and heightened industry relevance,” said Wade Kennedy, of McGuire Woods, who is serving as chair of the Governing Board Development Committee. Charlie Johnson, chairman of the Foundation Board of Directors and CFA past chairman, said, “Delivering

quality education has always been a primary initiative of CFA. Since 1990 the Education Foundation has supported that initiative by developing curriculum and quality course content for the purpose of assisting industry practitioners to be the best they can be. Your individual contribution helps to ensure the best and brightest future for all industry participants.” “Now, more than ever, the CFA Education Foundation needs individual contributions. The Market Impact Study we are planning will provide objective proof of the material impact our industry has on the economy. The work the Foundation is embarking on this year will benefit every individual engaged in commercial finance,” said David Kurzweil, of Greenberg Traurig, a member of the Foundation’s Board of Directors. Join the following members who have made 2018 contributions to the Commercial Finance Association Education Foundation as of February 14, 2018: Gail K. Bernstein PNC Business Credit Cindy Davis Greenberg Traurig Bruce Denby CIBC John M. DePledge Citi Jeffrey K. Goldrich North Mill Capital LLC David Grende Siena Lending Group Richard Gumbrecht Commercial Finance Association

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Wade M. Kennedy McGuireWoods LLP

Stacey J. Schacter Vion Investments

Charles G. Johnson Commercial Finance Association

William A. Stapel MB Business Capital

David B. Kurzweil Greenberg Traurig, LLP

Please send your personal, tax deductible contribution (which may be matched by your employer) to:

Joseph Lehrer Citibank, N.A.

The Commercial Finance Association Education Foundation c/o Rosa Gomez 370 7th Ave., Ste. 1801 New York, New York 10001

D. Michael Monk Amerisource Funding Bobbi Acord Noland Parker, Hudson, Rainer & Dobbs LLP Andrea L. Petro CFA Past President

TX. She earned her bachelor of arts degree from Kent State University and her master in business administration degree from the University of Texas at Austin. She served as the president of the Commercial Finance Association from October 2016 through September 2017. Additionally, she serves as a member of the CFA Executive Committee and is on the Board of Directors of the CFA Education Foundation. Andrea is a member of the Advisory Board of the Master of Science in Finance program at the McCombs School, University of Texas at Austin.

Andrea Petro is the former executive vice president and division manager of the Lender Finance Division of Wells Fargo Capital Finance, based in Dallas,

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