July 30, 2014 · Getting A Mortgage · (No comments)

UK homeowners remain very confident that property values will continue to rise this year, but are concerned about mortgage availability, says a new report.

Knowing the four different types of credit can help consumers who need to reestablish themselves

What Is The Difference Between Types of Credit?

Here at Auto Credit Express we know exactly what type of credit an auto loan is: its a form of installment credit secured by a vehicle. But its also important that people shopping auto loans with bad credit understand the other two, as well as why its important that they establish them as well.

So here goes:

Revolving Credit: When youre approved for a revolving credit account, the creditor sets a dollar amount limit on the amount you can borrow. This is called your credit limit and you can borrow up to that limit at any time. And while youre free to pay the entire balance you owe at any time, you must pay the minimum amount due on the outstanding balance each month. A credit card is the most common type of revolving credit, but a home equity line of credit is also considered to be a type of revolving credit.

Installment Credit: When youre approved for an installment credit loan, you sign a contract to borrow a certain amount of money for a set period of time. The contract will also state the amount as well as the number of fixed (installment) payments you need to make. The most common type of installment credit is a car loan. Other examples include student loans as well as home mortgages.

Non-installment Credit: When youre approved for a non-installment credit, the lump sum is due all at once instead of installments and is usually short term. It also comes in one of two types:

  • Unsecured Credit: When a line of credit is unsecured, there is no real property (such as a car) that is tied to the loan. Put another way, you are giving your word to the lender that you will repay what you borrow. Examples of unsecured credit include credit cards and utility bills.
  • Secured Credit: A loan is secured if the loan document places a lien on one of your assets. This lien entitles the creditor to take the asset if you dont live up to the terms of the loan agreement. Examples of secured credit include mortgages, car loans, secured credit cards and home equity loans.

Consumers that have experience credit issues in the past often need to reestablish both revolving credit and installment credit. The easiest way to reestablish revolving credit is by applying for either a secured credit card (one that can be converted to a regular credit card later on) or regular credit card.

The easiest way for most consumers to reestablish installment credit is by applying for a subprime auto loan.

The Bottom Line

Its not only important that consumers not only understand the different types of credit, but also the ways in which they can reestablish credit if theyve experienced problems with any type in the past.

One more tip: If you need to buy a car and think that your only option is a buy here pay here dealer, we want you to know that Auto Credit Express matches people with credit difficulties to select new car dealers that can offer them their best opportunities for car loan approvals.

So if youre ready, you can begin now by filling out our online car loan application.

British SMEs to benefit from extra funding from the autumn.

UK businesses could be set for a welcome financial boost following the announcement of a new PayPal project designed to help fund SME growth.

The payments company, best known for its work with online auction site eBay, has announced it will be bringing its Working Capital programme to the UK from the autumn, with a particular focus on boosting the growth of SMEs.

The scheme, which had been running in the US since last September, offers existing business users access to an interest-free merchant cash advance against their future sales. Only select customers will be able to access the funds following the initial launch, with wider access being rolled out next year.

PayPal says it will lend up to 8% of what a merchant has made on its platform over the past 12 months, but is not disclosing other details about what kind of interest it will charge on the base amount loaned.

The company says it charges a single, fixed fee that is available to businesses before they sign up, and promises no periodic interest, no hidden fees, no set payment plan, no payment due dates, and no late fees, with payments made automatically as your business makes sales through PayPal.

Customers can also pay off their loan balance in full or in part at any time without incurring a penalty.

So far, the American version of the programme has provided over $140m in cash advances to SMEs in the country.

Small businesses are the lifeblood of the British economy, Cameron McLean, managing director of PayPal UK, said. But seven years after the start of the credit crunch, many of them are still struggling to get funding.

According to the British government, around a third of SMEs rely on retained earnings or the owners own finances rather than bank or equity funding. This means that many find it very difficult to finance their present needs or future growth. And the problem is acute for smaller, online businesses. PayPal is well placed to make a difference.


July 29, 2014 · Getting A Mortgage · (No comments)

Special to the Sentinel

Monday, July 28, 2014

Experience counts
Were proud to work for Wells Fargo because for over 160 years, the Wells Fargo name has stood for reliability, integrity and pioneering innovations that help people manage their money and grow their assets. Thats been true in good and bad economic times. And it speaks loudly to our commitment to doing right by our customers.

Wells Fargo Home Mortgage has been among the top 3 in rank for both mortgage originations and servicing every year since 1995. We are the only company that can make this claim. Wells Fargo Home Mortgage has a presence in 2,305 locations including stand-alone mortgage stores and other business-partner sites. In 2013, we financed 1 of every 5 home loans in the United States.

Wells Fargo does a lot for the community. In the past two decades, 192,000 Wells Fargo team members volunteered 4.7M hours in support of affordable housing projects.

Getting a mortgage is about having whats really important your home. Count on us to provide options and information to help you plan, when you purchase or refinance, and after you own. We can deliver mortgages for almost any homebuyer need, including:

FHA and VA financing
New construction
High-end financing
Conventional financing

Our team:
Carri Ann Dixon
Branch Manager
NMLSR ID 413589
Carri lives with her family in Western Colorado and spends her time outdoors snowmobiling, hunting, fishing, hiking and four-wheeling. Carri has 24 years of experience in the mortgage industry and is experienced with new construction loans. What Carri likes most about working at Wells Fargo is working with a team of experienced professionals who share a common vision of helping our customers succeed through home financing..

Brian Beecraft
Home Mortgage Consultant
NMLSR ID 404313
Brian and his family love doing anything outside from fishing and hunting to camping. Brian has been with the company for 8 years and is experienced with first-time homebuyer loans.

Karen Fischer
Home Mortgage Consultant
NMLSR ID 418601
Karen lives in Grand Junction and has been with the company for 17 years. Karen is experienced with new construction loans.

Carey Susann Lasater
Home Mortgage Consultant
NMLSR ID 447857
Carey and her two sons keep busy hiking with their three dogs and taking care of their garden and fruit trees. Carey has been with the company for 8 years and is experienced with manufactured home loans.

Barry K. Weitzel
Home Mortgage Consultant
NMLSR ID 403940
Barry and his family love to travel, whether its to a beach or to a top of a Colorado 14er. He has been doing mortgages now for 6 years.

Steve Detty
Home Mortgage Consultant
NMLSR ID 418645
Steve and his family love traveling, fishing, camping and just doing things together. Steve has been with Wells Fargo Bank for 24 years, the last 8 years being in the mortgage department. He is experienced with government loans.

Michael B. Fisher
Home Mortgage Consultant
NMLSR ID 514868
Mike and his family enjoy Lake Powell, riding motorcycles and spending time at the family cabin. Mike has 10 years of experience in the mortgage industry and is experienced with first-time homebuyer loans.

Call us today!

Information is accurate as of date of printing and is subject to change without notice.
Wells Fargo Home Mortgage is a division of Wells Fargo Bank, NA copy; 2014 Wells Fargo Bank, NA All rights reserved. NMSLR ID 399801. AS1030519 Expires 10/2014
Looking for help with your home? Call the HBA of Northwestern Colorado at (970) 245-0253 or visit www.hbanwco.com

A credit score is a number that third parties, especially lenders, use to assess the risk of lending you money. The score is one way banks, credit card companies and other institutions assess the likelihood that you can or will be able to pay off any debts you accumulate. A higher credit score indicates that your current financial circumstances and your historical behavior demonstrate a willingness and ability to pay off any loans you may be approved for. 

In the United States the credit scoring system you will hear about most is the FICO score, a score used by the major credit agencies to rate your creditworthiness. Your FICO score will be between 300 and 850 with a higher score being better. When it comes to your credit, lenders may sometimes refer to it in terms of Credit Level or Credit Quality such as Poor, Fair/Average, Good or Excellent with each category referring to a range of FICO scores.

Poor credit is considered anyone with a FICO score under 630. An average or fair credit rating will be between 630 and 690, while good credit is between 690 and 720 and excellent credit is anything above 720. 

How Your Credit Score Impacts Some Financial Products.

Your credit score can have an effect in two ways: Whether you can get approved for a financial product in the first place, and what interest rates you may have to pay if you are approved. The higher your FICO score the more likely you are to get approved for a credit card or loan, and will usually reduce the interest rate associated with that particular loan or card. Lower scores may disqualify you for a product or service completely and can raise your interest rates significantly otherwise.

For many credit cards, especially the most lucrative rewards cards, the cards are offered only to conusmers that meet a minimum credit quality. Many of the best cards are exclusively marketed to consumers with excellent credit scores. When it comes to credit cards your credit score can determine the breadth of options you can choose from. Most cards are also marketed with a range of interest rates / APRs. The actual interest rate on your specific card will be inversely related to your credit score with higher credit worthiness receiving lower interest rates and vice versa. 

With mortgage and auto loans, lenders behave similarly. Your credit score is used as a component whether or not a bank will choose to approve a loan or may force you to make additional concessions for approval. It can and generally will move the interest rate you pay on the loan as well.

The Components Of Your Credit Score

The makeup of your FICO score is broken up into a bunch of major factors: Payment History (35%), Debt Burden (30%), Length of History (15%), Types of Credit(10%), and Recent Credit Searches(10%). Lets take a look at how these components fit in to creating your overall credit profile.

Payment History

Your payment history is by and large the largest single component of your FICO score. The best way to think of your payment history is to consider it a track record of all the things youve done wrong when it comes to credit and a measure of how you behave when it comes to your debts. You dont get a boost for paying things on time as much as you get penalized for not doing so. A history marked with negative information would indicate that the person often faces difficulty meeting their debt obligations, or rather someone that has a risky attitude when it comes to their credit. Both are signals to the lender that they may want to be more cautious when it comes to making additional credit available.

Late Payments

The most common problem consumers face in the payment history component is late payments. Whether it was because you simply forgot or were struggling to make ends meet, being late on a monthly payment for your credit card or a loan will usually cause a negative adjustment on your credit score. How much of an impact can also depend on how late you were with the FICO score making larger downward adjustments the later it is. You will see this reflected on your credit report with late payments marked under categories like 30-days or 60days etc. One thing to be aware of is missed or late payments on what may seem like trivial amounts can be just as damaging.

One major reason for keeping the number of credit cards and accounts you have at a manageable level is to avoid these issues. Its way too easy to open up a store credit card, make a charge on it and simply forget about the account. Even if youre making thousands of responsible payments on all your other accounts, forgetting to pay off the $50 you spent on that one off charge can dramatically hurt your credit score. 

Debt Burden or Accounts Owed

The other major component category of your credit score is the break up of your existing debt burden including how much you owe in total, what types of loans you have and any other quantitative indicators about your overall debt/credit profile. As an indicator of your credit worthiness how much you owe and how its broken up accross the different types of loans acts as a signal about your capacity to manage your existing debt.

When it comes to how this plays into your credit score, its probably not worthwhile to think of it was higher/lower = better. In all likelihood, the FICO calculation doesnt evaluate your debt burden in isolation but considers it in relation to things like your payment history. For instance, lets consider a credit profile of someone who has large amounts of debt but a long and spotless payment history. This might indicate that the person is financially well off and the debt burden is a signal that any additional loans might be obligations they can easily handle.

Take the same level of debt on a profile with a recent history of payment problems, and the higher quantitative factors should be a major red flag. This consumer may be having difficulties making ends meet and even a small amount of additional credit might be a risky proposition. 

Credit Utilization

Credit Utilization or Debt to Limit ratio is often brought up when discussing the Debt Burden component. It is one of the pieces that make up this piece of your FICO score and is a measure of the total amount of debt on your credit card accounts against the total limit allowed on those accounts. A lower credit utilization, meaning your average balance is lower relative to the total amount you could have on your cards is better for your score. 

This ratio can come into play when you might otherwise consider cancelling an existing credit card. Even if you dont use that card, as long as it doesnt have any fees associated with having it around, your credit utilization figures look better because of the larger total credit limit overall. This also means that requesting a higher credit limit on existing credit cards can help your credit score since it will help lower the overall ratio.

I suspect that the reason this measure is used as a factor is that its a helpful indicator of how much wiggle room you have when it comes to your finances. If youre only using a small portion of what the card companies have judged you to be capable of paying off, then small changes in your personal finances or incremental debt may not put you at much more risk.

Length of Credit History

Your score accounts for the length of time the various accounts under your name have been around, including the average amount across all the accounts as well as the length of your oldest open account. The length of your history helps to indicate how representative the other factors of score are about your credit worthiness. The older your accounts and your overall credit history, the larger time frame from which a company can accurately judge both your finances and behavior towards credit. A few years of data about a consumers is a better indicator for how they may act in the future than having only a few months of information.

Considering Age of Account When Cancelling Cards

The credit history length can come into play when considering how you should deal with something like an old credit card. In many cases the first credit card a consumer gets may no longer be the best option going forward. This is often the case for someone that may have had no credit history to speak of when getting a card and have over time built a great credit history for themselves. 

Types of Credit

The smallest component of your credit score, your FICO score takes into account the different types of debt or credit used. Your accounts are classified into things like revolving credit (credit cards), mortgages, consumer finances or installment loans and a history of having a broader exposure may be a positive signal. Why should having a history with more credit types matter? Having an existing history of exposure to different types of credit is a helpful indicator that a consumer is familiar with the different financial products and can manage them appropriately. Consumers also may not have the same attitude towards paying off a credit card vs. their mortgage so a lender might want to be more cautious with someone with a narrower exposure history.

Much like the Length of history component, the types of credit component is likely used as a measure for how representative your existing credit history sample size will be about your future behavior. A broadly representative history will in most cases be a better predictor of how a consumer will act in the large range of credit situations in the future.

Recent Credit Searches 

The last component of the FICO score is an adjustment based on any recent searches or hard inquiries made into your credit profile. This tracks the number of times lenders have requested your data, with the potential for a consistent high number of request to drag your score down.

The FICO score calculation does make a number of adjustments in how it evaluates the number of inquiries however. When it comes to mortgages, auto loans, and student loans its expected that most consumers will shop for rates at a large number of lenders so all searches of these types that occur within 14 to 45 days of one another are considered a single request. These inquiries also take 30 days before they affect your score so that you will be evaluated fairly while rate shopping. These adjustments mean that consumers seeking a loan are best served it they compress the time in which they rate shop, such that they have the least amount of impact on their score overall.

Lastly, consumers often under go credit score queries for reasons other than getting a loan. This may include checking your own credit score, or a requirement as part of employment. In these cases, the queries are not considered a hard pull/inquiry and will not appear on the reports used by the lenders for evaluation. 

Why You Have Three Different Credit Scores

Given the above components for your credit score, why do consumers have three different scores? This is because there are three different credit bureaus that independently calculate your score: Experian, Equifax and Transunion. While the three companies use very similar processes for determining your credit score, they there are small differences in how theyre done. Another complication is that the three bureaus may not all have the same information on you in their systems when making these determinations. This often occurs when an account in your credit history has been reported to one bureau but not another.

July 29, 2014 · Small Business Loans · Comments Off

Small business loans have gotten a bad reputation over the years. Business owners tend to feel that its impossible to qualify for such a loan, and even if they do, the process takes too long for the funding to be worth it. But in recent months, obtaining a business bank loan seems to have gotten easier.

An April 2014 survey by the Federal Reserve found that banks had begun to ease some of their credit standards and loan terms over the previous three months, primarily to keep up with other financial organizations: Nearly 70 percent of bankers surveyed said that theyve eased their standards due to more-aggressive competition from other banks and alternative nonbank lenders.

Jim Salmon, vice president of business services at Navy Federal Credit Union, said theres another big reason that loans seem to be easier to obtain these days: confidence. [5 Ways to Improve Your Chances of Getting a Small Business Loan]

What were seeing is that small business owners are feeling more confident in themselves and their businesses, Salmon told Business News Daily. Theyre seeing sales pick up and believing there are more opportunities out there.

During the recession several years ago, business owners werent willing to take on any more debt, and therefore werent obtaining new business loans, Salmon said. But since then, theyve taken the time to straighten out their finances, consolidate their existing debt and save money.

Now that theyve gone through that, they find themselves in a better position to make themselves available for business credit and [to] achieve their goals, Salmon said.

Bankers seem more confident as well: 38.8 percent of the Federal Reserve survey respondents cited a more favorable or less uncertain economic outlook as a somewhat or very important factor in their decision to ease loan terms.

For business owners who want to take advantage of this trend and apply for a loan now, Salmon advised taking the time to do the necessary due diligence.

First-time business loan applicants have to understand that applying for a business loan is somewhat different than applying for a consumer loan, he said. You need to have your financial house in order and have capital reserve set aside.

Salmon also recommended knowing how to explain exactly what you want to do with your loan, and how your business will fit into your community. Having a great mentor or speaking with a local expert on small business matters can help tremendously in the loan process, he said.

Originally published on Business News Daily

  • Need a Small Business Loan? 6 Tips to Make the Process Go Smoothly
  • 10 Things That Could Keep You From Getting a Small Business Loan
  • Can You Afford a Small Business Loan? How to Figure It Out
July 29, 2014 · Getting A Mortgage · Comments Off

National Debt Relief shares in a recent article published last July 20, 2014, some financial achievements that 30-year-old consumers should already be doing. The article titled, ?11 Financial Things You Should Have Done Before Turning 30,? lists down some financial things that a 30 year old should have accomplished.

The article shares that being prepared for the big expense items in life is important for 30 year olds. This can include getting a mortgage loan, auto loan, and even getting married. These are major decisions in life that can take its toll in a consumer?s finances. At this point, there should be enough funds to take on these big ticket items without falling into debt.

Reaching 30 years old, a person should also have an idea how to live within their financial means. This is one way to build up financial wealth without totally depriving oneself. This can mean that a dinner with friends is possible, but not just every night. Or that coffee fix every morning can be an alternate of brewing at home and buying from the coffee shop around the corner.

The article also talks about retirement funds, especially the 410(k). Consumers that are already 30 years old should be aggressive in building up the 401(k) fund whether by maxing it every year or taking advantage of a company matching policy. This is a great way in increasing the 401(k) that can help financially sustain expenses during the golden years.

Automation is another thing that 30-year-old consumers should already be practicing. This includes automatically dividing the salary between savings, payments, and other funds. Automating the process painlessly allows a consumer to fulfill all financial obligations even before getting their hands on the funds.

The article also explains the importance of writing a will for consumers aged 30 years old. Failure to have at death makes the person intestate. This basically means that another person will be assigned to distribute the assets between people recognized as legal heirs. This includes the wife or husband, children, and relatives. Having a will will allow the person to dictate where all his/her assets go after death.

To read the rest of the article, click on this link: http://www.nationaldebtrelief.com/11-financial-things-done-turning-30/


Published on: 2014-07-21


News Provider: 7thSpace Interactive / EUPB Press Office

July 29, 2014 · Small Business Loans · Comments Off

NEW YORK Women who own small businesses are still far behind their male counterparts when it comes to getting loans and government contracts, a congressional report said yesterday.

The report by Democratic staffers of the Senate Small Business amp; Entrepreneurship Committee found that while businesses owned by women account for 30 percent of small companies, they receive only 4.4 percent of the total dollars in conventional small-business loans. Businesses owned by women receive only 16 percent of all conventional small-business loans and 17 percent of loans backed by the Small Business Administration. Their loan applications are more likely to be rejected than those from businesses owned by men, and the loans they get are likely to have more-stringent terms.

Women also receive only 7 percent of venture-capital funding.

The numbers are jarring, for sure, and we need to own up to the fact that we want to see more women entrepreneurs and to make sure theyre getting access to capital, said committee chairwoman Sen. Maria Cantwell, D-Wash.

Women are also falling short in receiving government contracts. Although Congress in 1994 set a governmentwide goal of awarding 5 percent of federal contract dollars to small businesses owned by women, it hasnt met that goal. The closest it has come is 4 percent, in the fiscal year that ended Sept. 30, 2012, the report said. Failing to meet the goal costs women-owned businesses nearly $5.7 billion in government contracts each year, it said.

Congress needs to take steps to help women-owned businesses, including making changes to the SBAs microloan program aimed at helping companies borrow up to $50,000, the report said. It also called for the reauthorization of whats known as the Intermediary Lending Program, which allows business owners to borrow between $50,000 and $200,000.

Cantwell noted that women-owned small businesses might not need more-traditional and larger SBA loans. That increases the importance of the smaller loan programs.

The report also called for the Securities and Exchange Commission to complete regulations to allow small businesses to crowdfund, or solicit investor money from the public through online portals.

July 28, 2014 · Fundings · Comments Off

Question-and-Answer Session


(Operator Instructions) And our first question comes from the line of Aaron Deer from Sandler ONeill amp; Partners.

Doug Bowers

Good morning Aaron.

Aaron Deer – Sandler ONeill amp; Partners

Very nice quarter. It sounds like you are pretty optimistic about the space you are operated in which isnt surprising given the trends there, but I would [indiscernible] if I didn’t ask how the pipeline is shaking up here for the back half of the year in terms of loan growth and just maybe give some color on what you are seeing in terms of that competitive environment and pricing?

Doug Bowers

Well, pretty good momentum going into the second half in terms of client activity and expectations around growth. So, a lot of good momentum in the venture space, broadly speaking, and we were enjoying our fair share of that given what we have done inside our company and given what’s going on in the industry. So the short answer is pretty good outlook there. With respect to competitiveness it’s very very competitive and we see that play out both in terms of pricing and structure. And so were being very thoughtful and very selective as we pick through the opportunities that are out there for us. But saying that I’m pleased with how our loan overall loan name has hung in and we continue to see good opportunity.

Aaron Deer – Sandler ONeill amp; Partners

Great, and then Pat, can you talk a little bit about the higher sequential yields which you saw in both of the loan book as well as the securities portfolios? I’m guessing that maybe there were some mix shifting going on within those individual books in terms of what product is being booked?

Patrick Oakes

Yes, so on the loan side it was really combination of overall loan yields and the fees associated with those, fees were high, its probably the high end for us, it was 83 basis points. Its not normally that high, but we also saw a nice increase in just the overall loan yield. Part of that was yes, new fundings that we saw at higher rates and we also saw some payoffs in some lower yielding loans. Not just sustainable but it was nice bump up for the quarter. And on the security side, it was held by the mortgage backed portfolio, probably as much as anything, some slower prepays there to help that, beside that I think it was just some investments we made but it was not that much.

Aaron Deer – Sandler ONeill amp; Partners

Okay. That’s helpful. And then I know here in the third quarter the trough dividend goes away and I guess probably a few basis points. And then of course we got the higher yields that we just discussed, but given the strong deposits which you had and the greater mix of securities and some additional cash in the balance sheet, what do you kind of expecting for the margin over the next couple of quarters?

Patrick Oakes

Yes, so obviously a lot of its driven by the amount of cash that we hold in the deposit growth that we see. As you can see we’ve try to invest a lot of those deposits, if there are core deposits that are coming in. So we’re going to continue to do that. It just seems like its a short-term deposit we won in a sitting cash, but with that it depends on what cash does as much as anything else. Im hoping we can keep that cash balance down a little bit which will help take some of the pressure up to margin, but we’re not afraid to hold more cash.

Doug Bowers

And the other thing I would add to that is. There is a pretty competitive environment out there on the loan side, so it would not surprise us to see a degree of compression on the loan margin side. And certainly we’re really pleased with the way the securities portfolio is holding up, but rates have compressed here with where the tenure is and so that too will probably have a little bit of pressure. But all in all it should hang in at a pretty good rate. But there will be some pressure on both ends of that. Is that helpful?

Aaron Deer – Sandler ONeill amp; Partners

Yes, absolutely. And Doug, I know year-over-year you guys have had a lot of bankers and support staff, but the compensation cost actually is held fairly, in the second quarter and I suppose some of that is just lower payroll taxes and such. But can you talk about the success that you’re having in attracting new bankers in what markets and what verticals youre bringing on new people?

Doug Bowers

So, but we do have important hiring, recruiting efforts that have been underway, actually for the last several quarters. And we’ve hired in the Valley in Boston as probably our two biggest arenas of hiring. But, and all in all the second quarter there were six new hires on the banking side. So we think of it as being very true to our core markets which are away from the Valley in Boston that’s how this bank grew up and where we had considerable success. And then we’re feeling a momentum that we started in the Valley and in Boston and continuing to add there. So, Boston matters a lot, the Valley matters a lot in terms of most recent growth. We’ve also added to our VCS team, our SBA team as well.


(Operator Instructions) We do have a question from Julianna Balicka from KBW. Your line is now open.

Julianna Balicka – KBW

Good morning. To follow-up on some of the questions, on the loan yields question, you mentioned in your answer that loan fees are 83 basis points over yield in the quarter? Can you remind us what was that last quarter?

Patrick Oakes

It was roughly about 70, high 70, 77, 76 somewhere around there.

Julianna Balicka – KBW

Okay. And then you mentioned that some lower yielding loans had rolled off when you put on higher yielding loans and that’s relative to other things its an unusual combination, so maybe you can talk a little bit about the lower yielding loans, what kind of loans that was rolled off. And did they rolled off because they just matured, did they just get competed away? Can you give us a little bit more color on what’s going on there?

Patrick Oakes

So I think it was — I don’t think it was anything in particular, I think it was couple of loans and I think some of them just pay off more than anything else, not in competition. Will be unique for us, we had, to have that mix I wouldn’t expect that to continue.

Doug Bowers

And the other thing Id add Julianna is the compliment as you know, we’re mostly early in expansion stage in terms of the client mix for us. There is not as much later stage private equity kind of activity and while it’s competitive everywhere, the actual, the mix of growth, the first six months [indiscernible] was four in the early expansion stage side of things.

Julianna Balicka – KBW

Okay. That makes sense. And in terms during the IPO one of the topics that you would discuss with investing in the business and Aaron asked about that hiring, but could you update us as to your progress on some of the other investments you were making into your platforms for credit management et cetera, online banking?

Doug Bowers

Yes. So I think of it as three core areas. So in no particular order, a one was that we were having new office space, we have a new office now in San Francisco that we opened in April. We have expanded office space that we are opening in New York, which will be in September and then we have a new office that will be in Chicago. So that’s number one.

Number two is, if we have two platforms that we are upgrading significantly, one on the credit side which just went live this week and then the other is the online treasury platform which we are upgrading significantly and that will take place in the fourth quarter. And then finally is the increase to our — primarily to our front office if you will or complemented bankers. And that too is moved to the pace we have set.

Julianna Balicka – KBW

Very good, that makes sense. And then translating back into our numbers, how much of the expense increased? Should we be thinking about in terms of dollars or percentages, how do you — for the new few quarters then?

Patrick Oakes

So, we are seeing some of that flowing already as you can see the increases in some of the other expense categories. You will see the New York lease obviously in the fourth quarter. The Chicago office has been delayed, it will happen this year but much later in the year than we had thought. So, some of those are members are in and some will continue to go throughout the rest of the year, but most of the expense growth you will see is really obviously related to the personnel side and that’s the biggest line item.

Doug Bowers

And most of that will show through in the second half, or more of it will show through in the second half. So youll have a degree of higher expenses in the second half versus the first half.

Julianna Balicka – KBW

Okay, very good and then you also talked about your positive outlook for the rest of the year in terms of the industry that you bank in and we saw similar outlook of extraordinary deposit growth in Silicon Valley asked from your guys on the linked quarter annualized basis. So when you think about ongoing deposit growth and deposit growth in this quarter, as you say that this is just more of a trigger just as for one off really really good quarter and you expect this depend on slow down a little bit in the near future or kind of how are you managing around the idea of that 40% linked quarter annualized average deposit growth?

Doug Bowers

Yeah, well first of all Julianna, I applause your ability to get us to overwhelming forecast the future which is not something we are going to do a lot of. I think what Id say is that the industry is in ever better place. Our brand is in an ever better place and we have put more bankers to the task of growing and they have been very successful. So, I don’t have any reason to be anything but pretty optimistic given the current state of things, both in the industry and where we are at.


At this time Im showing no further questions. I would like to turn the call back over to management for further remarks.

Doug Bowers

Well, thank you. Obviously, we are pleased with our second quarter and the first half results. And we will look forward to good things for the rest of the year. Thank you all for participating, we appreciate it. Thank you, operator.


Ladies and gentlemen, thank you for your participation in today’s conference. This does conclude the program, you may now disconnect.

July 28, 2014 · Getting A Mortgage · Comments Off

Marriage rates have fallen dramatically in most major European countries over the past decade, as austerity, generational crisis and apathy towards the institution deter record numbers of young people from tying the knot.

The number of weddings has fallen to historical lows in France and Spain and has tumbled in other Catholic countries such as Italy, Ireland, Poland and Portugal, according to national and European data. But people have also fallen out of love with marriage in countries as varied as Greece, Denmark, Hungary, the Netherlands and Britain. Only in parts of Scandinavia, the Baltic republics and Germany is the institution retaining its allure.

In Italy there were fewer than 200,000 marriages last year, the lowest number since the first world war. Numbers have fallen by 24% in the past decade and halved since 1965. Preliminary data indicated that the rate of marriages in Italy last year was 3.3 per 1,000 citizens, said Istat (Italys National Institute of Statistics), compared with 4.6 in 2003. It was, it said, the lowest in modern history.

The fall has been very significant and beyond all expectation, said the institutes chairman, Antonio Golini. There are cultural and economic causes for this phenomenon, he said. The cultural causes are that marriage has become less important from a religious and civil point of view, because many young people live together without marrying.

But there are also economic causes because marriage means having a celebration and often this celebration is big and costs a lot. So in a time of crisis like this, people live together in an [unmarried] cohabitation.

Economic crisis not only means people wanting to save money on a party. A study this year found that almost half of people aged 18-30 in Europe still live with their parents, prevented from flying the nest by a lack of jobs, large debts and rising property costs. Experts say this perfect storm of factors is also hitting birth rates.

The lack of stable jobs and absence of credit have become disincentives to forming a family, said Teresa Castro-Martin, professor of research in the department of population studies at the CSIC, a government research institute in Spain. The average age of newlyweds in Spain is now 37.2 years for men â?? almost 10 years higher than it was in the 1980s. Marriage has traditionally been a rite of passage to adulthood but it has lost its centrality, said Castro-Martin.

In France the downward trend in marriages has been partly affected by the rise of civil partnership contracts. In 2013 for every three marriages there were two civil partnerships, known as PACS (pacte civil de solidaritÃ), which were introduced in 1999.

Magali Mazuy, a demographer at the French National Institute of Demographic Studies, said the dip in the number of marriages could in part be attributed to the popularity of the PACS, but also noted that only a fraction of pacsÃs [people with PACS] subsequently get married. She saw marriage as a hard core of people attached to traditional values, or who choose it for what it symbolises: the notion of couplehood, commitment and faithfulness. But she also said that marriage was seen as protecting the spouse or children in case of death, whereas the PACS provided less protection.

Declining marriage rates in Greece â?? though exacerbated by the countrys debt crisis â?? have been a fact of life for the past decade, sociologists say. Changing lifestyles and behavioural patterns as much as economic pressures have been at the root of the fall. More than 60% of Greek youth are unemployed â?? the highest in the EU.

The tendency started way before the crisis struck and is as much about changing values as the financial difficulties that young people now face, said Aliki Mouriki, at the National Centre for Social Research. As so many have difficult access to a decently paid job without long hours of unpaid overtime, theyre not keen to commit themselves to the obligations of wedlock and do so, if and when, pregnancy occurs.

The realisation that they wont be able to provide â?? combined with a reluctance to give up what Mouriki calls their bohemian, uncommitted way of life â?? has meant that many young Greeks are simply postponing exchanging vows.

The decline is not limited to old Europe. Last year the number of weddings in Poland fell to its lowest since 1945 â?? the flip side of a society in which 43% of 25-34-year-olds still live with their parents. Witold Wrzesien, a sociologist, said young Poles today wanted independence without responsibility. They want to be treated with the respect accorded to adults while staying under the safety of their parents wings and not taking any risks.

In short, they want to eat their cake and have it.

However, the reasons for the drop in Polish marriages are not just economic. The number of children now born out of wedlock in Poland is at its highest level of 21%, suggesting significant shifts in social attitudes in a country which is 95% Roman Catholic and has up until now been considered one of Europes most traditional societies.

Wedding refusers


Germana Chemi, 30, and Carmelo Cardea, 38, from the southern city of Reggio di Calabria, have been together for six years and living together for four. In the Italy of 40 years ago they would probably have been married with a brood of children.

To a certain extent its because of economic problems. Never having that economic solidity which enables you to pursue long-term projects, weve slightly been taking each day as it comes, said Chemi, who completed a doctorate in philosophy from the University of Pisa this year and is now back in Reggio di Calabria trying to qualify as a secondary school teacher.

The shop into which Cardea poured his time and energy was forced to close this month due to the harsh economic climate.

Despite the difficulties, the couple have managed to create a life together outside their family homes â?? which, especially in southern Italy, is not a given. In the past, in order to leave home, you had to get married. Now thats no longer the case, said Chemi.

And, perhaps chiefly because neither is a practising Catholic, they do not feel particularly bothered about tying the knot. We dont think about it much. It has never been a life goal, said Chemi. We have focused on our own things, at the same time as being together, without having to spend a year planning a wedding.


MÃlanie Henry, a 30-year-old tax adviser, met Pierre-Antoine Gendreau, 31, a maths teacher, 12 years ago and they have a one-year-old child, Gaspard. They live together in the eastern Paris suburb of Le Perreux-sur-Marne.

They have not married because we never really felt like it, although the couple have got nothing against marriage as an institution, said Henry.

She said they had seen married couples around them break up. Gendreau said the real commitment for us was to have children.

Four years ago they signed a PACS (pacte civil de solidaritÃ) contract, or civil partnership. I know it doesnt sound very romantic but we did it for tax reasons, said MÃlanie.Henry. Pierre was working as a chiropractor and I was earning more at the time, so it made sense to pool our resources rather than be taxed as single people, which was costing us more.


Xavi Piera, 38, amp; and Judit Paje, 40, have two-year-old twins. We are opposed on principle to the establishment and patriarchal values that marriage symbolises, said Paje. They also have seen friends marry young and almost all of them are divorced.

Im aware that by not being married, although Im registered as the childrens father, if we separated I would have no rights regarding them, said Piera. Fathers dont count for anything in this country.

He would have rights if they registered as a pareja de hecho (de facto couple), which confers more or less the same economic and parental rights as marriage, but we reject the state having any role in our relationship. A lot of our friends feel the same way, he said.


Szymon Krawczyk, 27, and Alicja Pawlicka, 26, have been a couple for three years. Krawczyk is a sales specialist, while Alicja edits books. They say they are very much in love.

Both of them still live with their parents, as do 43% of Poles aged 25-34. They cannot afford to get married as they are both on small salaries and are on temporary work contracts, which give them no chance of getting a mortgage.

Pawlicka said if they got married and moved into a rented flat and then one of them was to lose their job, they would look pretty silly going back to knock on their parents door. Better to play it safe for now, said Krawczyk.


Thodoros Karkas and Katerina Kontodimos are typical of Greeces 20-something generation. In an ideal world, where money was no obstacle they might have considered marriage, but hooking up under circumstances of near penury is simply not an option. We could have thought about it more but its not in our near future plans, said Karkas of the four-year relationship. And as for children, the money we earn is not enough even for us, he said. How on earth could we do that?

A qualified sound engineer and music technology specialist, the 26-year-old met Kontodimos in 2010 when she was a student of interior architecture. Eighteen months later â?? at the height of Greeces economic crisis â?? they moved in together, sharing a flat in central Athens. In that respect they were different to most of their friends who were forced to live with their parents to survive.

Flat-sharing makes the relationship more serious, said Kontodimos, who turned 21 recently. Some day I would love to have children. When you have children it must feel like youre being reborn in some way.

But its been an uphill struggle, eking out a living in part-time jobs, waiting on tables and working in bars.

Our rent is �250 a month [£200] and, all told, we earn about �800 a month when we need about �1,000 to get by, said Karkas, admitting that they often had to seek help from their families to make ends meet.

Its hard and its not what we wanted but we live in hope that the future will give us more opportunities to make our dreams come true.