Leasing News

Equipment Leasing staff as Associate Director. In addition to serving as Editor of Newsline, Irene will work with Executive Director Fran Schwartz and the Associate Director, Arthur Schwartz.

Irene formerly worked with the California Escrow Association, and has a background in publications, public relations and marketing.

WAEL Newsline, 1981

Classified---Jobs Wanted---

Sales Manager: Seattle, WA

Senior level sales professional w/ (20) plus experience in mid market financing & leasing. The last (8) plus years being self employed in middle market brokerage. Email:markhenley@qwest.net

Sales Manager: Atlanta, GA

30 years in transportation Finance with strong management/ sales background. Represented company on national & region markets. Started two successful operations- produce profits and growth. Email:pml@mindspring.com

Sales Manager: Atlanta, GA

Professional. finance mgr. w/formal credit ed./ reg. vp/ secured/unsecured commercial loans/ direct end user network/equip. leasing/structuring small,mid,big ticket transactions. 10+ years NE & SE. Have vendor servicing w/existing and active network of accounts will bring with me. Email:AlanAustin2000@msn.com

Sales Manager: New York, NY

I have over 25 years owning an independent leasing company that specialized in truck leasing. Tow trucks, Limos, ambulances, tractors, etc.. Email:rfleisher@rsrcapital.com

Senior Management: Long Island, NY

Degree Banking/Finance. 13 years leasing exp. Now prez young leasing company where promises were not met. Interested in joining established firm with future. Email:bob33483@yahoo.com

full list at: http://65.209.205.32/LeasingNews/JobPostings.htm

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GE Sells Bonds in Year's Largest Sale

By REUTERS

NEW YORK (Reuters) - General Electric Co. (GE.N) on Thursday sold $5 billion of 10-year global notes, the year's largest U.S. corporate bond sale, to help it pay for an equity infusion for its finance arm and boost reserves in its insurance businesses.

The rare bond sale by the Fairfield, Connecticut-based company drew about $9 billion of bids and more than 300 investors. Companies are this week selling more than $14 billion of bonds to investors seeking higher yields than on safer government debt, but still nervous about Iraq and corporate profitability.

GE, whose operations include commercial and consumer financing, jet engines and NBC television, carries ``triple-A'' credit ratings but its bonds carried a 5.048 percent yield, higher than yields on some lower-rated bonds. For example, Anheuser-Busch Cos. (BUD.N), the maker of Budweiser beer and rated four notches below GE, on Wednesday sold $200 million of 12-year notes yielding just 4.686 percent.

Scott Colbert, who oversees $6.5 billion as head of fixed income at Commerce Trust Co. in St. Louis, said GE's notes offered ``pretty good value'' but did not buy them because he owns GE Capital bonds and caps his exposure to individual companies at 2 percent.

``With General Electric, you have one of the largest borrowers out there, and everyone knows to expect a lot of supply,'' he said. ``Because of the blowups in WorldCom (WCOEQ.PK), Enron (ENRNQ.PK) and others, many investors have decided 'We're not going to take more than X percent' in any credit. It only takes one downtick and no buyers to send prices on these securities moving much more than they need to.''

GE's 5 percent notes were priced at 99.626 cents on the dollar to yield 5.048 percent, or 1.12 percentage points more than similar maturity U.S. Treasuries. The yield margin shrank to 1.09 percentage points once trading began.

GE last quarter took a $1.5 billion charge to boost reserves in its Employers Reinsurance Corp. unit, which faced large asbestos- and Sept. 11-related claims.

The parent, which last week posted a 21 percent drop in fourth-quarter profits, plans no more bond sales this year.

INFREQUENT ISSUER

Shares of GE, a Dow Jones Industrial Average component, closed Thursday at $23.95, up 40 cents. They have fallen 36 percent in the last year.

Lehman Brothers Inc., Morgan Stanley and Salomon Smith Barney arranged GE's sale, which took two days to market.

Drew Ertman, co-head of syndicate at Morgan Stanley, said the bond sale was GE's first in at least a decade, and the third time a U.S. company, apart from government-sponsored issuers, sold $5 billion of fixed-rate debt in a single maturity -- GE Capital and Ford Motor Co.'s (F.N) finance arm were others.

``Very few companies can raise $5 billion in a single tranche in two days,'' he said. ``It's a sign that the corporate bond market is still extremely liquid, focused on buying high quality credits.''

He said had GE Capital, which ended 2002 with $271 billion of debt, sold $5 billion of 10-year notes, it might have had to offer another 0.15 to 0.2 percentage points of yield.

``The bonds were sold by an infrequent issuer with no term debt outstanding,'' he said. ``This will join the industrial component of all major bond indexes, which creates a need among investors who use those indexes as benchmarks.''

GE Chief Financial Officer Keith Sherin last week said GE Capital plans to sell $60 billion of bonds this year, down from $88 billion in 2002.

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Favorable Conditions Prevail in Early '03

ABSNet

The values of asset-backed securities are slowly recovering.

Spreads on most new and secondary-market issues narrowed by a few basis points about a week ago, and it looks like they'll continue that trend in the weeks ahead. Unfortunately for issuers, however, it could be a long time before they'll enjoy the same bargain-basement funding that was available to them before the market soured in the second half of 2002. "Investors are concerned about rising bankruptcies and consumer troubles. War concerns are putting pressure on the market as well," said one market player. "All of this will put a limit on significant spread-tightening in the near future."

Nonetheless, traders and routine ABS issuers said they're just happy to see funding costs declining for the first time in months. They expect spreads on top-rated benchmark issues to tighten by another 2-4 bp by the end of January, now that most investors have opened their books for 2003. Spreads on two-year credit-card bonds, for example, have already tightened by 2 bp, to 5 bp over swaps, since Jan. 1.

"Pricing is more reasonable now than it was four months ago," said one issuer. "There's a lot of cash ready to go." For example, GMAC's Residential Funding Corp. was particularly pleased on Jan. 14, when its $1.5 billion home-equity loan securitization fetched spreads that were well below the original price talk.

The resurgent demand for ABS should easily absorb the $8 billion to $12 billion of new deals that are expected in each of the next few weeks. "All the usual suspects are queuing up. If they haven't come so far, they're looking at the market," said Dan Castro, who oversees structured-finance research at Merrill Lynch.

Honda and DaimlerChrysler are among those considering auto-loan transactions, although the size and timing of their deals are uncertain. Separately, MBNA America and Citibank were working on credit-card issues late this week. Citi actually expanded its deal by $500 million, to $1.25 billion in response to heavy demand. Likewise, MBNA doubled the size of its subordinate offering, to $200 million.

Secondary-market activity has also picked up considerably since early last week, especially in the credit-card, auto -loan and home-equity-loan sectors. "It seems like every day there are multiple bid lists, and that wasn't true a month ago," Castro said.

__________________________________________________________________

Gold price surges to six-year high

By Bruce Stanley, Associated Press

LONDON (AP) The price of gold surged Thursday to a six-year high, propelled by fears of a looming showdown with Iraq and the weakness of alternative investment havens such as stocks and the U.S. dollar.

Gold has risen more than 14 percent in the past 60 days and is likely to rise further amid growing nervousness that a U.N. weapons inspections report to be issued Monday might trigger a U.S.-led war on Iraq.

''It's been a pretty spectacular rise,'' said Kelvin Williams, executive director of the world's second-largest gold mining company, AngloGold Ltd. of South Africa.

Gold has increased steadily in value since mid-2001, and the growth has accelerated in recent weeks without showing any sign of flagging.

''The trend may well be more on the upside than the down,'' said Philip Newman, an analyst at the precious metals consultancy Gold Fields Mineral Services Ltd.

Gold rose $4.80 to settle at $364.50 per troy ounce on the New York Mercantile Exchange. That's the highest it's traded since March 3, 1997, when it hit $366.00 in interday trading. Earlier, in London trading, the precious metal gained 70 cents to close at $364.00 per troy ounce, also a six-year high.

Investors have piled into gold in part as an alternative to the poor performance of major stock markets.

On Wall Street, the Dow Jones industrial average gained 51 points to close at 8,369, having dropped nearly 501 points in the previous five sessions. Blue-chip shares in London fell Thursday to their lowest level in nearly seven years, with the Financial Times-Stock Exchange 100-Share Index closing down 56 points at 3,622.

Ailing U.S. equities have helped drag down the dollar, which reached a new three- year low against the euro Thursday of $1.0761. The euro was worth $1.0754 in late New York trading.

A bigger reason for the recent run-up in the price of gold has been growing anxiety about a possible war in the Persian Gulf.

Gold has traditionally been seen as a reliable store of value during times of economic and political uncertainty, and heightened tensions over a U.N. report on Iraqi weapons of mass destruction, expected on Jan. 27, have added a ''war premium'' to its price. An outbreak of war could cause the price of gold to spike by as much as $20 per troy ounce, Newman said.

Williams said he could imagine a buying frenzy that lifts gold to as much as $400 per troy ounce.

However, gold could crash if a war proves to be quick and confined to within Iraq's borders. Newman estimates that in such a scenario, the gold price could plunge by 20 percent to as little as $310 per troy ounce.

''We wouldn't see gold crashing all the way down to $300,'' Williams said. ''I would be very surprised if it didn't hold between $320 and $330.''

Speculators seeking quick profits are contributing to this potential price volatility, analysts said.

''We have seen some new players on the speculative side of the market who haven't traditionally traded precious metals in the past,'' Newman said. If a war on Iraq ends quickly, these short-term investors could dump their gold in a hurry and speed any decline in its price.

Physical demand for the metal in key markets in Asia and the Middle East could dwindle if gold becomes much more expensive, making it harder to justify prices the high-$300 range, Newman added.

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Odds and Ends---Friday

Job Market

I have been called several times from the ad, but I have decided, in all honesty, I'm hoping more for the job at a bank. It would be nice to have the security of a company that's been around for a hundred years. I always approach any opportunity with a brokerage, even a 'super broker', with a grain of salt. I know that broker days are numbered these days with the big players trying to bring in all the business directly. I'm sure there will still be brokers sending business to

the big boys, but it won't be at the volume we have seen in the past. The

cost of funds is too low right now for there to be much of a profit available for a 3rd party.

( name with held )

---

Mark Speros

I assume you are attempting to be funny with your comments about Mark Speros. Mark happens to be one if not the most honest, responsible and reliable people that ever graced the equipment leasing business with his presence. Mark worked with me for 20 years and was a loyal and extremely fine associate.

Howard Freedman

Address = PO Box 42127

City = Portland

State = Or

Zipcode = 97242

Phone = 503 234 8617

http://www.leasingnews.org/#past

(None of the remarks come from us regarding Pictures from the Past of Mr. Speros. The dictionary definition and all quotes regarding the picture were

written by Mr. Speros himself. He liked the previous picture we ran ( he was much younger), and wanted readers to see him today. The comments were his and we didn’t change a word. I have known Mark since his Denrich days. I can add to your description that he is probably one of the best credit persons in the leasing business. editor )

---

2002 Complaint Bulletin Board Report

I thought you did an excellent job in outlining what your complaint

dept. accomplished during 2002. You are doing a great service for the

high-integrity leasing companies by trying to resolve disputes and by

exposing those companies that lack good business ethics.

Bruce Kropschot

BKropschot@aol.com

Kropschot Financial Services

116 Estuary Drive

Vero Beach, FL 32963

(772) 234-4544

http://www.leasingnews.org/#leasing

Tech idea:

Is there a way to put in "clicks" so your reader can click on a subject and

it will go to that point on the page?

I suppose if you posted it to a website you could do it ...

Hope all is well with you ...

Take care...

Brian

brian@leasesource.net

Ten years in business this month. Catching up to you !

(yes, we have been doing that since August 9,2002 on line at www.leasingnews.org. We also have changed the time

we post Leasing News on line, primarily for the East Coast

readers.

You will not in the top masthead we print when each leasing news

is posted on our website: www.leasingnews.org. It generally is

around 7:00am, PDT. Sometimes earlier, sometimes later, depending

on the size and some other factors.

You click on the headline and it goes to the story.

We have been “toying” with the idea of sending out an HTML version

with “Day in American History. “ It really is additional cost for us, not

just “labor cost.” We would have to use a service, maintain a double

list, and one main problem is all AOL users would receive in text

format, not HTML. It is my experience when the copy is longer

than a certain size, it is put into “text format” by AOL to save

server service.

I know Jeff Taylor is now charging for his newsletter. We could start

an HTML newsletter, but I doubt we would have many who would pay

$49.95 a year. I am waiting to see how many subscribe to Jeff’s newsletter

as an indicator. editor )

Keep up the good work Kit. We all think your site is the best!

Rosanne Wilson, CLP

rosanne@1stindependentleasing.com

Super Bowl---What Are You Doing?

I will be at home on Super Bowl Sunday with a small gathering of friends watching Tampa Bay defeat Oakland 35-31.

A shootout!

Jim Fleming

nationalbusinesscredit@yahoo.com

---

We will be attending a "Soup-er Bowl" party at the Church.

The cost is a can of soup with a dollar bill taped to it. The soup goes to

the food pantry and the money to the benevolence fund.

There will be snacks, games for the kids and a huge screen to watch the

game.

Fred St Laurent

Managing Director - Recruiting

Bradbury and Williamson, Inc

Financial Services Division

4550 River Green Parkway - Suite 120

Duluth, Georgia 30096

(770) 813-3320 ext 124 Office

(770) 813-8776 Fax

freds@bwresults.com

www.bwresults.com

---

My super bowl will be spent on an airplane returning from Portland and the UAEL Board Meeting this weekend.

GO OAKLAND! (Is Ken Stabler still QB?)

Bob Fisher, CLP

b.fisher@firerockcapital.com

(Yes, but he changed his name to Rich Gannon. editor)

---

Super Bowl time-- Ten friends, big screen TV, a fire in the fireplace,

frozen margaritas, hot chili and cold beer while watching the Bucs whip

up on the Raiders. What more could anyone want? Y'all welcome to come on

over as they say here in the south.

Charlie Lester

clester@lpifinancial.com

---

You may remember 6 weeks ago when I emailed that it would be a Raiders/Bucs Super Bowl and I'm sticking by my prediction. Final Score Raiders - 27, Buccaneers - 10.

Gary Millhollon

gmillhollon@hotmail.com

A Look Back On 25 Years At ACC Capital Corporation

Loni Lowder, President-CEO

Twenty-five years ago when I started this business in a 15` x 15` room with my first partner, Duffy Casey, I had no idea that the business would evolve to its current point. I had been working for IBM and wanted an alternative to the offer “Big Blue” had put on the table, that of a marketing manager’s job in Anchorage, Alaska. I knew a little bit about leasing because, at that time, everything we sold at IBM, at least initially, was through a lease. In addition, my partner, Duffy, had spent a couple of years in the steam-ship container leasing business for Gilbert Flex-Ivan. Back in those days when leasing was a growth industry, you really didn’t need to know much more than how to explain the rate factor to the customer and tell them that the lease payments were tax deductible.

My knowledge of the technical aspects of leasing grew under the tutelage of my mentor and business partner, Sudhir Amembal. As my knowledge grew, so grew the business. We entered into formal agreements with a number of small financial institutions to originate and manage their lease portfolios. Lease management for financial institutions continues today, as ACC services for a number of

community banks.

In 1985 I began teaching what Sudhir called the “soft side” of lease education-the sales and marketing seminar for Amembal Halladay. 1985 was significant in another way in that I accepted a contract with Zion’s Bancorp to help them create a new leasing company, Zion’s Credit Corporation, and run the marketing for that leasing company (The entire staff of ACC, some 28 strong, moved over to Zion’s). Zion’s Credit Corporation managed ACC’s existing portfolio and I continued to have independent annual audits on the company. In 1989 I left Zion’s and realized a long-term goal of becoming an equity partner at Amembal Halladay.

Teaching and consulting on a full-time basis was exhilarating but the travel was a drag (50% including weekends). I sold back my interest in Amembal Halladay to Sudhir in 1992 and opened up ACC for business once again. My time at Amembal Halladay compounded the importance of using the technical aspects of accounting, finance and taxation in the leasing business to acquire new customers.

Over the years, I have been able to boil down complex concepts, such as lease vs. purchase, into very powerful sales tools that a lease originator, with their customers, are able to use and appreciate. ACC has always been a friend of lease

originators, with several formal alliance agreements in place that make a lease originator an ACC partner.

In 1995, Sudhir Amembal reciprocated by buying a minority interest in ACC. He was very eager to get “his hands dirty in leasing.” The practical experience that Sudhir gained in being a part of ACC has had enormous benefit to him in the classroom. In 2000, Sudhir left the business, moved to Mexico and is now teaching and consulting exclusively on an international basis.

ACC continues its traditions in utilizing the technical aspects of leasing to increase its business share. Marci Kimball-Slagle heads our intermediary group as Senior Vice-President. Congratulations to Marci are in order, as she was recently elected to the board of the United Association of Equipment Lessors and is on the Organizing Committee for the National Association of Equipment Lease Brokers annual meeting coming up this March. I continue to consult and teach sales training classes at various national association meetings. I am assisted by Kirstin Patterson, our Chief Operating Officer, and Todd Jensen, who serves as Chief Financial Officer and General Counsel.

ACC is here to serve the lease originator community. Our goal at ACC is to make money by helping lease originators and our lease-originating partners make money.

Wishing you all the very best and a prosperous 2003.

Loni L. Lowder

800.409.5008 ext.203

loni@acccap.com

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.Please send to a colleague as we are trying to build our readership. You

may print any or all without our permission.

What Lessors Are Saying About. . .Value Adds

ELT News ( Equipment Leasing Association)

So, you think you’re special? What constitutes a real "value-add" to an end-user customer today isn’t the same as it was even three years ago. When customers make the lease versus buy analysis, the “old” benefits of leasing — convenience, 100% financing, a hedge against obsolescence — may not be considered value added propositions anymore. In 2003, what is going to "sell" leasing?

“Structuring,” summed up Steve Trollope, Arrow Capital Corporation. “Rather than a plain vanilla offering, we structure a transaction to meet their needs, which could be budgetary, capital versus operating, and/or variable payment plans to help with cash flow. It can mean many things.”

Gary Shivers, Marlin Leasing Corporation, says “We think that we provide our end-user customers [benefits] beyond merely an efficient method of acquiring equipment in a variety of ways.” He notes several, including

-customized repayment schedules to meet individual means;

-financing and administration of taxes imposed on the use or possession of the equipment;

-insurance options to protect against the loss of the equipment;

-billing services to consolidate service fees charged by the vendor of the equipment;

-credit files to make the acquisition of additional equipment fast and convenient; and

-a syndication operation that has sources for many types of credit products outside of equipment leasing to which end-user customers can be referred.

In the future lessors will find themselves helping with a variety of costs as well.

Trollope noted one Arrow client recently required upfront implementation costs. “While there may be hard costs,” he said, “there were soft costs such as contractural labor, software, etc. We offer financing for those upfront costs as a value add.”

Still, some tried-and-true benefits continue to sell, say some industry executives.

Allan Levine, Madison Capital LLC dba Harbor Equipment Leasing, said, “Leasing benefits that might be considered [value-adds] versus traditional loans include a quick turnaround, lower down payments, improved cash forecasting, flexibility, tax treatment, customized solutions, personal service and longevity of key personnel relationships, and a product mix.”

“If you look at traditional benefits, the one that stands out is “conserve cash.” added Trollope. “That seems to be a common theme with companies with right now. They don’t want to put cash into assets that have potential to depreciate quickly, like high tech.”

“At some level you can present the traditional ‘why you should lease’ benefits,” he continued. “But they’ve been used so frequently lessees don’t hear it anymore.”

Allan Levine said, “[Benefits] need to be tailored for the sale. Perhaps that's the key.”

The personal touch goes a long way when selling value-add.

“People wise, we’re a small organization so we can have a more personalized approach to marketing,” said Kenneth Seip, Marcap Corporation. “The transactions are larger and take a long lead time, so that allows us to get involved in a project very early on.”

“Our approach has always been to be an advisor to our clients,” said Seip about Marcap’s value-adds. “We share our network with them – like very experienced healthcare attorneys, credible real estate developers, or a healthcare receivables vendor. Our mission, obviously, is to do the financing, but whatever it takes to get that going!”

Seip added, “We consider what we offer is value-added financing – the value is helping them get their project off the ground and not just providing the dollars but helping them anyway we can.”

How do you add value? Let us know: valueadd@FourLeafPR.com.

CONTACT:

Suzanne Jackson

Four Leaf Public Relations

E-mail: valueadd@FourLeafPR.com

__________________________________________________________________

Caterpillar earnings beat outlook; Fourth-quarter profit up

Sites of Reference:
http://www.cat.com/about_cat/investor_information/02_financials/01_quarterly_results/pdf/4q02_cat_inc.pdf

( courtesy of ELAonline.com )

####### ###############################################

Pacific Capital Bancorp Reports 45% Increase in Fourth Quarter Earnings Per Share

SANTA BARBARA, Calif--Pacific Capital Bancorp (Nasdaq:SABB):

Highlights

-- Full year 2002 earnings per share increase by 35%

-- Full year 2003 earnings per share expected to range from $2.21

to $2.32

Pacific Capital Bancorp (Nasdaq:SABB), a community bank holding company with $4.2 billion in assets, today announced financial results for the fourth quarter ended December 31, 2002.

Net income was $14.5 million, or $0.42 per diluted share, an increase of 45% from $10.3 million, or $0.29 per diluted share, in the fourth quarter of 2001.

For the full year 2002, Pacific Capital Bancorp's net income was $74.9 million, or $2.14 per diluted share, an increase of 35% from $56.1 million, or $1.58 per diluted share, for the full year 2001.

Pacific Capital Bancorp's return on average equity (ROE) and return on average assets (ROA) for the fourth quarter of 2002 were 15.39% and 1.38%, respectively, compared to 12.48% and 1.07%, respectively, for the fourth quarter of 2001. For the full year 2002, ROE and ROA were 21.46% and 1.80%, respectively, compared to 17.46% and 1.45%, respectively, for 2001.

"Each of our business lines continued to perform well in the fourth quarter, which enabled the Company to achieve substantial growth in 2002 despite challenging economic conditions," said William S. Thomas, Jr., President and Chief Executive Officer of Pacific Capital Bancorp. "The diversity of our loan portfolio has enabled us to continue adding quality assets, with consumer and residential real estate loans compensating for modest demand in the commercial segment. In addition, we had a lower level of net charge-offs in the fourth quarter and a smaller dollar amount of loans going into classified categories than we anticipated, which enabled our provision for credit losses to be relatively low.

"We are particularly pleased with the excellent job our managers have done in controlling expenses while continuing to grow their respective businesses this year. For the full year, our operating efficiency ratio was 50.51%. This enabled the Company to be one year ahead of schedule in meeting our goal of reducing our efficiency ratio to the low-50 percent range," said Thomas.

Financial Highlights

During the fourth quarter, total interest income was $61.7 million, flat with the previous year.

Total interest expense for the fourth quarter of 2002 was $14.5 million, compared with $18.7 million for the fourth quarter of 2001. Although deposit volume increased year-over-year, total interest expense decreased due to the lower interest rate environment.

Net interest margin for the fourth quarter of 2002 was 4.97% (exclusive of RALs), which compares with 5.23% (exclusive of RALs) in the third quarter of 2002. This also compares with a net interest margin of 5.03% (exclusive of RALs) in the fourth quarter of 2001. The sequential quarter decrease in net interest margin was attributable to the impact of the Federal Reserve Bank's 50 basis point reduction in prevailing interest rates in November 2002.

Total loans were $3.02 billion at December 31, 2002, compared to $2.91 billion at September 30, 2002. Total loans increased 7.9% from $2.80 billion at December 31, 2001.

Total deposits were $3.52 billion at December 31, 2002, compared to $3.38 billion at September 30, 2002. This represents an increase of 9.7% over $3.21 billion at December 31, 2001 (excluding approximately $158 million in brokered CDs added to fund the 2002 RAL/RT programs).

Noninterest revenue was $13.1 million, compared with $14.2 million in the fourth quarter of 2001. Most of the individual components of this subtotal increased during the year.

Service charges on deposit accounts increased during the fourth quarter of 2002 to $3.6 million, up 7.2% over the fourth quarter of last year.

Fees generated by the Trust & Investment Services division were $3.0 million, compared with $3.2 million in the fourth quarter of 2001.

Income from other service charges, commissions and fees for the quarter ended December 31, 2002, was $4.2 million. This is a decrease from the $4.5 million for the same quarter of 2001 due to the sales of the Company's merchant bankcard processing activities in the second half of 2001.

The sale of the merchant bankcard portfolios had the effect of lowering both processing income and expense in 2002 compared to 2001, but the Company will continue to share in the purchaser's profits from the business over the next nine years. Exclusive of the impact of the sold portfolios, income from other service charges, commissions and fees was $3.8 million in the fourth quarter of 2002, compared with $2.5 million in the same period of 2001. Increases in collection fees, brokerage fees earned from selling residential loans, and ATM fees account for most of the increase.

Excluding the impact of the RAL and RT programs, Pacific Capital Bancorp's operating efficiency ratio for the fourth quarter of 2002 was 57.82% compared with 55.25% in the prior quarter and 54.92% in the same period last year.

For the full year 2002, including the impact of the RAL and RT programs, the Company's operating efficiency ratio was 50.51%, compared with 53.98% in 2001.

In the fourth quarter of 2002, the Company recognized a one-time tax benefit in the amount of approximately $972,000 related to certain overpayments of income tax from 1999 to 2001, which resulted in approximately $0.03 in net income per diluted share. Due to this one-time tax benefit, as well as the one-time state tax benefit recorded in the third quarter, the Company's effective tax rate for 2002 was 34.7%. Going forward, the Company expects to return to a more normalized effective tax rate ranging from 36.5% to 37.0%.

Asset Quality and Capital Ratios

During the fourth quarter, the Company recorded a provision for non-RAL credit losses of $3.1 million.

For the quarter ended December 31, 2002, the allowance for credit losses was $53.8 million, or 1.78% of total loans, compared to $55.3 million, or 1.90% of total loans, at September 30, 2002. This compares with the industry average of 1.79% of total loans for the Company's peer group, based on data provided as of September 30, 2002.

Total noncurrent loans (the sum of nonaccrual and 90 days or more delinquent but still accruing interest) increased $11.7 million to $61.5 million at December 31, 2002, representing 2.04% of total loans, from $49.8 million at September 30, 2002. This compares with the industry average of 1.10% of total loans for the Company's peer group, based on data provided as of September 30, 2002.

The increase in total noncurrent loans is primarily attributable to one commercial credit totalling $15.7 million in the hospitality industry. The loan is currently performing, however there is sufficient uncertainty about the customer's ability to repay the entire principal and interest according to the terms of the loan to warrant moving the credit into a nonaccrual category. Pacific Capital Bancorp first identified the inherent loss related to this credit in the fourth quarter of 2001, and provided an appropriate allowance for credit loss in that quarter. Based on an analysis of the liquidation value of the collateral conducted in the fourth quarter 2002, the Company has provided for the loss down to its net realizable value.

Total nonperforming assets at the end of the fourth quarter of 2002 represented 1.47% of total assets, an increase from 1.22% of total assets at the end of the prior quarter. This compares with the Company's peer group average of 0.74% of total assets, based on data provided as of September 30, 2002.

"Late in 2001 and early in 2002, we began to see increased risk in certain loans and recorded an appropriate provision for credit losses at that time," said Thomas. "As expected, some of these loans have now moved into the non-performing category. The larger provisions taken in the first two quarters of the year have proven to be sufficient, and we believe we are adequately reserved."

Net charge-offs (exclusive of RALs) for the three months ended December 31, 2002, were $4.6 million, compared with $2.9 million for the three months ended September 30, 2002.

Annualized net charge-offs to total average loans (both exclusive of RALs) were 0.62% for the three months ended December 31, 2002, compared with 0.40% for the three months ended September 30, 2002. Net charge-offs (exclusive of RALs) for the full year 2002 were $12.7 million or 0.44% of total loans. This compares with the Company's peer group average of 0.92%, based on year-to-date data provided as of September 30, 2002.

The commercial real estate market has shown no significant deterioration in the Company's core market areas, with vacancy rates remaining in the range of 5-6% in the Santa Barbara area and 5-8% in the Monterey/Salinas area. The Company's commercial real estate portfolio continued to remain relatively stable, with the exception of certain credits related to the wine and agriculture industries. Approximately $2.8 million, or 70%, of the inflow of credits into the noncurrent commercial real estate loan category in the fourth quarter of 2002 were related to the wine and agriculture industries. These industries represent approximately 3% of the Company's total commercial real estate portfolio. Noncurrent commercial real estate loans represented 0.75% of the Company's total commercial real estate loans, which compares with 0.29% in the prior quarter.

The Company's capital ratios continue to be above the well-capitalized guidelines established by bank regulatory agencies.

Share Purchase Program Update and Stock Symbol Change

On June 6, 2002, Pacific Capital Bancorp announced that its board of directors had authorized the repurchase of up to $20 million of its common stock. Through December 31, 2002, the Company had purchased 519,000 shares of its common stock at an average per share price of $25.38, for a total price of $13.2 million.

The Company announced last week that it is changing its stock symbol to "PCBC" effective at the start of trading on Friday, January 31, 2003, in order to more closely tie its stock symbol to its name.

2003 Outlook

Pacific Capital Bancorp expects 2003 fully diluted earnings per share to range between $2.21 and $2.32. In the first quarter of 2003, the Company expects fully diluted earnings per share to range between $1.00 and $1.05.

The 2003 guidance is based on the assumption of a slight increase in interest rates in the second half of the year. For the full year, excluding RALs, net interest margin is expected to range from 5.00% to 5.15%. Provision for credit losses, excluding RALs, is expected to be flat for the year.

The Company expects its efficiency ratio for 2003 to continue to improve to 49.6% for the year.

"The current trends in our Central Coast markets are encouraging," said Thomas. "Economic conditions are stabilizing, which is leading to improved credit quality and steady loan demand. For the full year, we are expecting loan growth of approximately 8% and deposit growth of 3%. The current volume of transactions in the RAL/RT programs is tracking according to our expectations so far this year, and they should again be an important contributor to our earnings growth. With a continued emphasis on expense control, we expect to deliver another positive year for our shareholders."

Pacific Capital Bancorp is the parent company of Pacific Capital Bank, N.A., a nationally chartered bank that operates under the local brand names of Santa Barbara Bank & Trust, First National Bank of Central California, South Valley National Bank and San Benito Bank. Pacific Capital Bank, N.A. is a 41-branch community bank network serving customers in six Central Coast counties, from Morgan Hill in the north to Westlake Village/Thousand Oaks in the south.

CONTACT:

Pacific Capital Bancorp

Deborah Lewis, 805/884-6680 (Investor Relations)

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MB Financial, Inc. Reports Record Fourth Quarter and Annual Earnings for 2002

CHICAGO----MB Financial, Inc. (NASDAQ:MBFI) (the "Company"), the holding company for MB Financial Bank, N.A., Union Bank, N.A. and Abrams Centre National Bank (collectively, the "Banks"), announced today fourth quarter and annual results for 2002. The Company had net income of $12.3 million in the fourth quarter of 2002 compared to a $10.2 million loss in the 2001 period. The loss in the fourth quarter of 2001 resulted from merger expenses, net of the related tax benefit, totaling $19.2 million as a result of the merger of MidCity Financial Corporation and MB Financial, Inc. Fully diluted earnings per share was $0.68 for the 2002 fourth quarter compared to a loss of $0.59 per share in the fourth quarter of 2001. Of these increases in net income and earnings per share, approximately $654 thousand, or $0.04 basic and fully diluted earnings per share, resulted from the adoption of Statement of Financial Accounting Standard No. 142 on January 1, 2002, which eliminated the requirement to amortize goodwill. Net income for the year ended December 31, 2002 was $46.4 million, compared to $12.4 million for 2001. Fully diluted earnings per share was $2.58 in 2002 compared to $0.69 for 2001. Of these increases in net income and earnings per share, approximately $2.5 million or $0.15 basic and fully diluted earnings per share, resulted from the adoption of Statement of Financial Accounting Standard No. 142.

Mitchell Feiger, President and Chief Executive Officer of MBFI said, "This quarter continues a steady stream of strong earnings for our Company. We are very pleased with our results for 2002, which have met all our expectations. During the year we completed the acquisitions of the First National Bank of Lincolnwood and LaSalle Systems Leasing and have fully integrated them into our MB Financial family."

In the fourth quarter, the Company announced that it agreed to acquire South Holland Bancorp, Inc. for $93.1 million in cash, which will generate approximately $21.9 million of goodwill. South Holland Bancorp is the parent company of South Holland Trust & Savings Bank, which is expected to be merged into MB Financial Bank after the systems conversion is completed. As of the announcement date, South Holland Bancorp had $535 million in assets. The merger has been approved by South Holland shareholders, and pending receipt of regulatory approval, is expected to be completed in the first quarter of 2003.

RESULTS OF OPERATIONS

Fourth Quarter Results

The Company had net income of $12.3 million for the fourth quarter of 2002 compared to a $10.2 million loss for the fourth quarter of 2001. Excluding merger expenses, net income would have been $9.0 million for the fourth quarter of 2001. Net interest income, the largest component of net income, was $33.0 million for the three months ended December 31, 2002, an increase of $1.5 million, or 5.0% from $31.5 million for the fourth quarter of 2001. Net interest income grew primarily due to a $226.1 million, or 7.1% increase in average interest earning assets, which offset a 10 basis point decline in the net interest margin, expressed on a fully tax equivalent basis, to 3.87%. The increase in average earning assets was primarily due to the acquisition of the First National Bank of Lincolnwood ("Lincolnwood") in the second quarter of 2002 and growth of the Company's loan portfolio. The provision for loan losses totaled $2.7 million and $3.0 million for the three months ended December 31, 2002 and 2001, respectively.

Other income increased $5.2 million, or 79.9% to $11.8 million for the quarter ended December 31, 2002 from $6.6 million for the fourth quarter of 2001. Net lease financing increased by $2.3 million due to $1.7 million in additional revenues resulting from the acquisition of LaSalle Systems Leasing, Inc. ("LaSalle") in the third quarter of 2002, as well as a $663 thousand increase in net lease gains in the 2002 fourth quarter compared to 2001. Other operating income, increase in cash surrender value of life insurance, net gains on the sale of available for sale securities, deposit service fees and trust and brokerage fees grew $1.3 million, $472 thousand, $472 thousand, $414 thousand and $322 thousand, respectively.

Other expense decreased by $20.0 million to $24.0 million for the three months ended December 31, 2002 from $44.0 million for the three months ended December 31, 2001 due to $22.7 million in merger expenses in the 2001 quarter. Excluding these merger expenses, other expense increased by $2.7 million, or 12.5% for the fourth quarter of 2002 compared to the same quarter in 2001 due to increases in salaries and employee benefits, other operating expenses, and advertising and marketing expense of $1.5 million, $1.1 million, and $547 thousand, respectively. The above expenses were partially offset by a $654 thousand, or $0.04 basic and fully diluted earnings per share, decline in goodwill amortization expense due to the adoption of Statement of Financial Accounting Standard No. 142 on January 1, 2002.

Annual Results

The Company had net income of $46.4 million for the year ended December 31, 2002 compared to $12.4 million for the year ended December 31, 2001, an increase of $34.0 million. Part of the increase is due to $19.2 million in merger expenses, net of related tax benefit, incurred in the 2001 period. Net income excluding merger expenses increased by $14.9 million, or 47.0% to $46.4 million in 2002 from $31.5 million in 2001. Fully diluted earnings per share for the year ended December 31, 2002 was $2.58 per share compared to $0.69 per share for 2001. Net interest income, the largest component of net income, was $132.7 million for the year ended December 31, 2002, an increase of $17.3 million from $115.4 million in 2001. Net interest income grew due to a 30 basis point increase in the net interest margin, expressed on a fully tax equivalent basis, to 4.03% and a $181.4 million, or 5.7% increase in average earning assets. The increased net interest margin was primarily due to better pricing obtained by the Company on loans and deposits in a declining rate environment during 2002. The increase in average earning assets was primarily due to the Lincolnwood acquisition and growth of the Company's loan portfolio. The provision for loan losses increased by $6.3 million to $13.2 million for the year ended December 31, 2002 compared to $6.9 million for 2001. The increase was prompted by continued weakness in the overall economic environment.

Other income increased $12.7 million, or 48.6% to $38.9 million for the year ended December 31, 2002 from $26.2 million for 2001. Net lease financing increased by $4.5 million due to $2.8 million in additional revenues generated as a result of the LaSalle acquisition, and a $576 thousand increase in net lease gains in the year ended December 31, 2002 compared to 2001. Deposit service fees, other operating income, increase in cash surrender value of life insurance, trust and brokerage fees and loan service fees increased by $2.1 million, $2.0 million, $1.9 million, $1.2 million and $906 thousand, respectively.

OTHER INCOME

Other income increased $5.2 million, or 79.9% to $11.8 million for the quarter ended December 31, 2002 from $6.6 million for the fourth quarter of 2001. Net lease financing increased by $2.3 million, primarily due to $1.7 million in additional revenues generated as a result of the LaSalle acquisition, as well as a $663 thousand increase in net lease gains in the 2002 fourth quarter compared to the fourth quarter of 2001. Other operating income increased by $1.3 million, largely due to $333 thousand in gains on the origination and sale of residential mortgage loans in the 2002 period and increases in gains on sale of other real estate and miscellaneous service fees of $238 thousand and $190 thousand, respectively. Increase in cash surrender value of life insurance grew by $472 thousand due to an additional $35.0 million invested in January 2002. Net gains on the sale of available for sale securities, deposit service fees and trust and brokerage fees increased $472 thousand, $414 thousand and $322 thousand, respectively.

Other income increased $12.7 million, or 48.6% to $38.9 million for the year ended December 31, 2002 from $26.2 million in 2001. Net lease financing increased by $4.5 million, primarily due to $2.8 million in additional revenues generated as a result of the LaSalle acquisition and a $576 thousand increase in net lease gains for the year ended December 31, 2002 compared to 2001. Deposit service fees increased by $2.1 million, primarily due to increases in monthly service charges and NSF and overdraft fees of $1.4 million and $859 thousand, respectively. Other operating income grew by $2.0 million, largely due to $834 thousand in gains on the origination and sale of residential mortgage loans in the 2002 period and increases in gain on sale of other real estate and ATM fees of $564 thousand and $325 thousand, respectively. Increase in cash surrender value of life insurance grew by $1.9 million due to the additional $35.0 million invested in January 2002. Trust and brokerage fees increased by $1.2 million due to increases in income from trust services and investment services income of $1.0 million and $134 thousand, respectively.

OTHER EXPENSE

Other expense decreased by $20.0 million to $24.0 million for the three months ended December 31, 2002 from $44.0 million for the three months ended December 31, 2001 due to $22.7 million in merger expenses in the 2001 quarter. Excluding merger expenses, other expense increased by $2.7 million, or 12.5% in 2002. Salaries and employee benefits increased by $1.5 million due to the Lincolnwood and LaSalle acquisitions and the Company's continued growth and investment in personnel. Other operating expenses increased by $1.1 million due to a $334 thousand increase in computer services expense related to the outsourcing of processing activities and the addition of Lincolnwood, as well as increases in professional and legal expense and operating losses of $325 thousand and $281 thousand, respectively. Advertising and marketing increased by $547 thousand, while goodwill amortization expense declined by $654 thousand, or $0.04 basic and fully diluted earnings per share due to the adoption of Statement of Financial Accounting Standard No. 142.

Other expense decreased by $18.4 million, to $90.7 million for the year ended December 31, 2002 compared to $109.1 million for the year ended December 31, 2001 due to $22.7 million in merger expenses incurred in the 2001 period. Excluding merger expenses, other expense increased by $4.2 million, or 4.9%. Within the category, salaries and employee benefits increased by $3.9 million due to the Lincolnwood and LaSalle acquisitions and the Company's continued growth and investment in personnel. Other operating expenses increased by $3.3 million, largely due to a $1.2 million accrual for an unfavorable appellate court ruling related to rent payments claimed to be owed by the Company pursuant to a land lease agreement under which the Company is lessee. During the first quarter of 2002, the appellate court reversed the decision of a lower court, which found that the Company was not liable for these payments under the lease agreement and directed summary judgement in favor of the Company. In October 2002, the Illinois Supreme Court denied the Company's petition for leave to appeal the appellate court ruling, effectively eliminating the possibility that this ruling will be reversed. Despite the denial of its petition for leave to appeal the appellate court ruling, the Company is pursuing various counter-claims against the plaintiff lessor in the lower court. The accrual reflects the amount pertaining to rent expense incurred through December 31, 2002. A $1.5 million increase in computer services related to the outsourcing of processing activities and the addition of Lincolnwood also contributed to the rise in other operating expenses. Goodwill amortization expense declined by $2.5 million, or $0.15 basic and fully diluted earnings per share, due to the adoption of Statement of Financial Accounting Standard No. 142. Occupancy and equipment expenses declined by $1.0 million due to a reduction in depreciation expense partially resulting from the outsourcing of the data processing activities during December 2001.

INCOME TAXES

Income tax expense for the three months ended December 31, 2002 was $5.9 million compared to $1.3 million for the same period in 2001. This $4.6 million increase was due to a $27.1 million increase in pretax income, partially offset by $5.6 million in non-deductible merger expenses related to professional and investment banking fees and a valuation reserve established for state net operating loss carryforwards during the 2001 fourth quarter. The effective tax rate was 32.4% for the three months ended December 31, 2002.

Income tax expense for the year ended December 31, 2002 was $21.4 million compared to $13.2 million for 2001. The effective tax rate decreased to 31.5% for the year ended December 31, 2002 from 51.7% in 2001 due to the non-deductibility of certain merger costs and the valuation reserve established in the fourth quarter of 2001.

BALANCE SHEET

Total assets increased $293.7 million, or 8.5% to $3.8 billion at December 31, 2002 from $3.5 billion at December 31, 2001. Net loans increased by $186.4 million, or 8.2% largely due to the acquisition of Lincolnwood, which had net loans of $101.4 million at the April 8, 2002 acquisition date, as well as continued growth in the Company's loan portfolio. Investment securities available for sale increased by $50.3 million, or 6.0% primarily due to the acquisition of Lincolnwood, which had investment securities available for sale of $111.7 million at the acquisition date. Cash surrender value of life insurance increased by $39.1 million, or 115.5% due to an additional investment of $35.0 million made in January 2002. Net lease investments increased by $20.2 million, or 41.9% due to the LaSalle acquisition, while goodwill increased by $13.8 million due to goodwill generated in the Lincolnwood and LaSalle acquisitions.

Total liabilities increased by $244.1 million, or 7.7% to $3.4 billion at December 31, 2002 from $3.2 billion at December 31, 2001. Total deposits grew by $197.8 million, or 7.0% largely due to $182.8 million in deposits acquired through the acquisition of Lincolnwood. Company-obligated mandatorily redeemable preferred securities increased by $59.8 million due to trust preferred securities issued in August 2002. Long-term borrowings increased by $12.0 million, or 35.4% due to $10.3 million of notes payable added through the LaSalle acquisition. Short-term borrowings declined by $20.6 million, or 8.5% due to $81.0 million in repayments of Federal Home Loan Bank advances, which were partially offset by additional federal funds purchased of $58.2 million.

Total stockholders' equity increased $49.6 million, or 16.9% to $343.2 million at December 31, 2002 compared to $293.6 million at December 31, 2001. The growth was primarily due to net income in 2002, a $7.9 million increase in accumulated other comprehensive income, and the issuance of $5.0 million in additional common stock in conjunction with the acquisition of LaSalle. These items were partially offset by $10.6 million, or $0.60 per share cash dividends paid during 2002.

Net charge-offs declined by $608 thousand and $1.2 million, respectively, in the quarter and year ended December 31, 2002 compared to the comparable 2001 periods. The provision for loan losses declined by $311 thousand to $2.7 million in the quarter ended December 31, 2002 from $3.0 million in the quarter ended December 31, 2001, and increased by $6.3 million to $13.2 million in the year ended December 31, 2002 from $6.9 million in the year ended December 31, 2001. The increase in annual provision was primarily due to continued weakness in the overall economic environment.

As of December 31, 2002, the Company had approximately $8.2 million in performing lease loans (collectively "Kmart loans") under which Kmart Corporation was the lessee. Approximately $5.1 million of these loans were direct financing leases included in the Company's lease loan portfolio. Kmart Corporation filed for bankruptcy protection on January 22, 2002. The Kmart loans are secured by revenue producing equipment with an original cost of $10.2 million that was purchased and installed during the second half of 2001. Subsequent to filing for bankruptcy protection, Kmart Corporation closed a number of its retail store locations, including some in which this equipment was located. At that time, Kmart had informed us that all of our equipment located in closed stores had been moved to stores that would remain open, but to the Company's knowledge, Kmart has not affirmed or rejected our leases in bankruptcy court.

On January 14, 2003, Kmart announced, as part of its reorganization plan, that its board approved the closure of 326 of its remaining 1,800 stores. It is unclear how the additional store closures will affect the use of our equipment or the performance of the related lease loans.

While the Kmart loans are currently performing in accordance with their terms, no assurance can be given that this will continue to be the case and such performance may depend on the terms of a reorganization plan for Kmart. No assurances can be made that a loss related to these loans will not be incurred.

B Financial, Inc.

At December 31, 2002, the Company's total risk-based capital ratio was 14.99%, Tier 1 capital to risk-weighted assets ratio was 13.05% and Tier 1 capital to average asset ratio was 9.74%. The Banks were each categorized as "Well-Capitalized" under Federal Deposit Insurance Corporation regulations at December 31, 2002.

Jill York - Vice President and Chief Financial Officer

773/645-7866

E-Mail: jyork@mbfinancial.com

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Swapalease Adds Pioneering Internet CEO Wil Schroter

COLUMBUS, Ohio----After tripling its business in a national expansion over the past year, Swapalease.com, America's largest lease assumption marketplace, has opened a second office in Columbus, Ohio and brought on an Internet industry key executive.

Wil Schroter, former Founder and CEO of Blue Diesel Interactive, joins Swapalease as CEO. Schroter is responsible for the rapid expansion of the business nationally.

An early pioneer of Internet-based businesses, Schroter founded Blue Diesel in 1995 which became one of the leading interactive advertising agencies in the country, servicing top tier clients such as Best Buy, BMW, Bank One and Eli Lilly. His leadership earned him Young Entrepreneur of the Year by the Small Business Administration and also recognition by Ernst and Young's Entrepreneur of the Year program.

"We are incredibly excited to have Wil on board," explained Ron Joseph, Jr., Founder of Swapalease.com. "His deep understanding of both marketing and business building, allows us to scale our business quickly and look out far ahead of our competition."

Schroter has opened the Columbus office of Swapalease.com, located within the Business Technology Center at 1275 Kinnear Road. The Columbus team includes sales, marketing, and development personnel.

"The model for Swapalease.com is very powerful," said Mr. Schroter. "We're taking the whole concept of vehicle leasing to the next level. Our marketplace is allowing almost anyone to drive what they want, when they want, without the hassle of being tied to a financial commitment for the life of their lease. There are many people who would rather drive something else if they knew they could. This market is enormous."

Swapalease.com has enjoyed overwhelming success with its Lease Assumption Marketplace. Thousands of buyers and sellers have used the service to find great deals on vehicle leases and to exit existing leases.

Company History

The company was launched in 2000 by Ron and Richard Joseph, owners of the Joseph Auto Group, a $570MM automotive dealership network based in Cincinnati. The Joseph Auto Group, well known and highly respected in the automotive industry, has provided a solid foundation for the company in its market understanding and initial capitalization.

Since inception, Swapalease.com has served thousands of customers looking to exit their lease. The service allows consumers to list late-model vehicle leases on their Web site, which are available to a national audience of buyers. Buyers can browse through thousands of vehicle listings and choose which vehicle lease they would like to assume. Assumed leases are often available with no money down and with a reduced term at a lower payment, and sometimes with a cash incentive. Swapalease provides both the on-line marketplace for managing these transactions as well as the personnel to guide both parties through the lease assumption process.

Contact Information

For inquiries please contact Wil Schroter at (614) 340-1859 or info@swapalease.com.

CONTACT:

Swapalease.com

Wil Schroter, 614/340-1859

info@swapalease.com

www.swapalease.com

SOURCE: Swapalease.com

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Fitch Assigns Negative Outlook to Provident Financial

Fitch Ratings has assigned a Negative Rating Outlook to the long-term ratings of Provident Financial Group, Inc. (PFGI, 'BBB/F2') of Cincinnati OH, and its principal subsidiaries. At the same time, Fitch affirms PFGI's ratings. A complete list of ratings is provided at the end of this release.

Fitch had previously placed PFGI's ratings on Rating Watch Negative on December 20, 2002. Fitch noted concerns regarding continued high levels of problem assets and exposures to higher risk lending areas combined with a smaller reserve for loan losses. Following a detailed assessment of PFGI's fourth quarter 2002 performance and asset quality trends and prospects throughout the loan portfolio, Fitch affirms the ratings of PFGI and assigns a Negative Rating Outlook to the long-term ratings.

PFGI has been materially reducing exposures to higher-risk lending sectors such as aircraft financing, subprime mortgage, syndicated corporate loans, and structured finance. However, remaining exposures on the balance sheet in higher risk lending areas including leveraged aircraft leases may result in increased credit losses and lower earnings through increased loan loss provisions. Fitch notes improved asset quality performance indicators in the fourth quarter of 2002. Nonperforming assets declined to $182.2 million (1.73% of loans) from $193.5 million in the prior quarter. Net charge-offs declined to 0.93% of average loans from 1.39%. Net income for the quarter of $31.9 million translated to a 0.78% ROA and a 13.09% ROE. Significant declines in current financial performance metrics would place downward pressure on the current ratings.

Management has been taking steps to reduce the risk level in PFGI's business mix. In addition to reducing exposures in certain lending areas more levered to the economic cycle, PFGI has enhanced its credit risk management practices. Management has an increased focus on strengthening the company's retail franchise, including growing the core deposit base. Fitch views these actions positively and looks for them to take further hold over the longer term. These steps, along with a bolstered capital base and good earnings diversification provided by several fee income sources, support Fitch's affirmation of PFGI's ratings.

The following ratings are affirmed and assigned a Negative Rating Outlook:

Provident Financial Group, Inc.

--Long-term senior, 'BBB';

--Subordinated debt, 'BBB-';

--Preferred stock, 'BBB-';

--Individual, 'B/C';

--Rating Outlook Negative.

Provident Bank

--Long-term deposits, 'BBB+';

--Long-term senior, 'BBB';

--Subordinated debt, 'BBB-';

--Individual, 'B/C';

--Rating Outlook Negative.

Provident Capital Trust I-IV

PFGI Capital Corporation

--Preferred stock, 'BBB-';

--Rating Outlook Negative.

The following ratings are affirmed and not covered by the Rating Outlook:

Provident Financial Group, Inc.

--Short-term nondeposit obligations, 'F2';

--Support, '5'.

Provident Bank

--Short-term nondeposit obligations, 'F2';

--Short-term deposits, 'F2';

--Support, '5'.

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Sunrise International Leasing Corp. Names New Vice President of Sales, Marketing and Business Development

GOLDEN VALLEY, Minn.,-- Sunrise International Leasing Corporation, a wholly owned subsidiary of privately held King Capital Corp., today announced that John Barry has joined the firm as Vice President of Sales, Marketing and Business Development. He will be responsible for implementing the company's strategy to expand its sales and marketing activities, and to purchase portfolios of leased equipment and leasing companies that fit Sunrise's business model.

Mr. Barry was most recently with Heller Financial, Inc., a division of GE Capital Corporation, where he was Managing Director of Strategic Development for Global Vendor Finance. Prior to that he held a number of sales and marketing positions with Dana Commercial Credit Corporation.

"We're pleased to welcome John to the Sunrise management team," said Peter King, Sunrise CEO. "John's addition will accelerate the company's efforts to expand its business through acquisitions, as well as by acquiring new vendors."

About Sunrise International Leasing Corp.

SILC's business consists primarily of the development of market-oriented vendor programs emphasizing the formulation of customized lease and rental programs for vendors of high technology and other equipment as well as software. Sunrise is also a major reseller of high quality off lease used equipment through Redirect Tech, its remarketing subsidiary.

About King Capital Corp.

King Capital Corporation, established in 1975 and based in Golden Valley, Minn., offers a wide range of leasing options to manufacturers, distributors and resellers through its primary subsidiary, Sunrise International Leasing Corporation and high availability software through H.A. Technical Solutions, LLC.

SOURCE King Capital Corporation

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Donald P. Campbell and Steve A. Grosso Start Partners Equity Capital Company, LLC

Donald P. Campbell and Steve A. Grosso, both former leaders at De Lage Landen Financial Services, Inc., Tokai Financial Services, Inc., Fidelity Bank N.A., and ITT Industrial Credit, are pleased to announce the formation of Partners Equity Capital Company, LLC (“PECC”). PECC is a captive leasing company initially in association with Vantage Laboratories, one of the foremost providers of educational software in the world. PECC will provide financing and leasing to Vantage’s educational customer for software and information technology. Mr. Campbell, will serve as Chairman and CEO, and Mr. Grosso, will serve as Vice Chairman, President and COO.

The pair has worked together in excess of twenty (20) years and has built several successful businesses of size and value. They are credited with the growth and market leadership of Tokai Financial Services during the 1990’s. The company was known as a high value, quality provider of private label finance programs for some of the world’s largest manufacturers and US commercial banks. As the Japanese banking industry contracted in the late nineties, Tokai was sold to Dutch-based Rabobank at a best-in-market multiple.

In related news, the company also announced the appointments of Martin F. Babicki, Executive Vice President of Operations and Matthew A. Swift, Vice President/Controller. Mr. Babicki is a twenty-four year veteran of the industry with experience in all facets of the business. Most recently Mr. Babicki was employed with De Lage Landen. He has also held positions with Tokai Financial Services, First Fidelity and ITT Industrial Credit.

Mr. Swift was formerly Senior Vice President/Controller of First Union/Wachovia Bank leasing in Charlotte, N.C. He is a thirty-year veteran of the banking and bank leasing industry.

The company location will be in Newtown, Pennsylvania at the Vantage Laboratories world headquarters until July when the company moves to Horsham-Fort Washington, PA.

( courtesy of ELAonline.com )

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CFNB Reports Second Quarter 2003 EPS of $0.26

" "While our backlog of approved leases is down, the pace of new lease activity seems to be improving and the volume of pending transactions is solid."

SANTA ANA, Calif.----California First National Bancorp (Nasdaq:CFNB)("CalFirst Bancorp") today announced net earnings of $2.9 million for the second quarter ended Dec. 31, 2002, a 19% decrease from net earnings of $3.6 million for the second quarter of fiscal 2002.

Diluted earnings per share for the second quarter also decreased 19% to $0.26 per share, compared with $0.32 per share for the second quarter of the prior year. For the six months ended Dec. 31, 2002, net earnings decreased 10% to $5.9 million, compared with $6.6 million for the first six months of fiscal 2002. Earnings per share were $0.52 for the first six months of fiscal 2003, down 10% from $0.58 per share reported for the same period of fiscal 2002.

For the second quarter ended Dec. 31, 2002, net direct finance and interest income increased 34% to $5.1 million, compared with $3.8 million for the second quarter of fiscal 2002. This improvement is primarily due to a significant decrease in the provision for lease losses, as the performance of the lease portfolio improved slightly over the period.

Total direct finance and interest income increased 10% when compared with the prior year, reflecting higher direct finance income earned from a larger investment in capital leases. Other income decreased 31% to $3.9 million, compared with $5.6 million during the second quarter of fiscal 2002. The decrease reflects a significant decrease in the gain on sales of leased property and leases, which was offset by an increase in income from sales-type leases.

As a result of the foregoing, gross profit of $9 million for the second quarter of fiscal 2003 decreased 5% from $9.5 million reported for the second quarter of the prior year.

For the six months ending Dec. 31, 2002, net direct finance and interest income increased 37% to $9.8 million, compared with $7.2 million for the first six months of fiscal 2002. The increase reflects a significant decrease in the provision for lease losses, again reflecting the improved portfolio performance compared with the prior year.

Total direct finance and interest income increased 5% as a result of higher direct finance income earned from a larger investment in capital leases. Other income decreased 27% to $8 million, compared with $10.9 million during the first half of fiscal 2002. This included a significant decrease in the gain on sale of leased property, offset by an increase in income from sales-type and operating leases.

Gross profit of $17.8 million for the first six months of fiscal 2003 decreased 2% from $18.1 million reported for the same period of the prior year.

During the second quarter, CalFirst Bancorp's selling, general and administrative expenses ("S,G&A") expenses increased by 18% to $4.3 million, compared with $3.6 million during the second quarter of fiscal 2002. For the first six months, S,G&A expenses increased by 10% to $8.2 million compared with $7.4 million reported for the first six months of the prior year.

The increase in S,G&A expenses for both periods is due to higher costs related to an expansion of the sales organization, which has almost doubled over the past nine months.

Commenting on the results, Patrick E. Paddon, president and chief executive officer, indicated that: "CalFirst Bancorp's results for the second quarter and first six months reflect the impact of our investment in expanding our sales organization, the costs of which must be carried for six months to a year before we will begin to recognize the revenue and earnings from this expanded sales force.

"In line with our forecasted decrease in volume of leases reaching their end of term during fiscal 2003, the company's income from sales of leased property was down significantly for the three and six month periods ended December 31, 2002, as compared to the same periods of fiscal 2002.

"The volume of leases reaching their end of term during fiscal 2003 will be substantially lower than last year, and accordingly, we continue to expect that the company's income from lease renewals and sales of leased property during the third and fourth quarters of fiscal 2003 will be lower than the same periods of fiscal 2002.

"Aside from these factors, we have seen improvement in results from our new business efforts, as finance income from the lease portfolio has increased along with the growth in our portfolio. The volume of new leases booked during the first six months increased by 25% when compared to the first six months of last year.

"While our backlog of approved leases is down, the pace of new lease activity seems to be improving and the volume of pending transactions is solid. During the second quarter ended December 31, 2002, CalFirst Bank recorded its first quarterly profit, although it did incur a loss for the first six months of fiscal 2003."

California First National Bancorp is a bank holding company with leasing and bank operations based in Orange County, Calif. California First Leasing Corp. leases and finances computer networks and other high technology assets through a centralized marketing program designed to offer cost-effective leasing alternatives.

California First National Bank ("CalFirst Bank") is a FDIC-insured national bank that gathers deposits using telephone, the Internet, and direct mail from a centralized location, and will lease capital assets to businesses and organizations and provide business loans to fund the purchase of assets leased by third parties.

California First National Bancorp, Santa Ana

S. Leslie Jewett, 714/436-6540

ljewett@calfirstbancorp.com

############### #########################################

CIT Announces Quarterly Results

* Net income of $141.3 million - diluted EPS of $0.67

* Lower delinquency and non-performing assets levels

* Higher origination volumes

* Continued progress with respect to funding initiatives

* Even stronger leverage ratios

Sanford I. Weill, Chairman and Chief Executive Officer of Citigroup, and Todd S. Thomson, Executive Vice President, Finance, and Chief Financial Officer of Citigroup, will present at the Salomon Smith Barney Financial Services Conference on Tuesday, January 28, 2003, at 12:45 PM (EST).

A live webcast of the presentation will be available at http://www.citigroup.com/citigroup/fin. Presentation materials will be available for download 30 minutes prior to the event. A replay of the webcast will be available at http://www.citigroup.com/citigroup/fin/pres.htm.

NEW YORK, -- CIT Group Inc. (NYSE: CIT)

today reported net income of $141.3 million, $0.67 diluted earnings per share,

for the quarter ended December 31, 2002, compared to $134.7 million, or $0.64

diluted earnings per share for the prior quarter.

On November 5, 2002, our board of directors approved returning to a

calendar year end from a September 30 fiscal year end, effective December 31,

2002. The current quarterly results constitute a transitional fiscal period

and will be included in our December 31, 2002 Annual Report on Form 10-K to be

filed with the SEC.

"During the quarter, we experienced improved new business volume across

all business lines," said Albert R. Gamper, Jr., Chairman, President and CEO.

"More importantly, our delinquency and non-performing levels improved.

Further, the continued improvements in our leverage ratios underscore our

commitment to maintaining a strong, well capitalized balance sheet."

Financial Highlights:

Funding and Liquidity.

The re-establishment of our commercial paper program continued

successfully as we issued commercial paper at attractive pricing levels, and

the program closed the quarter at $5.0 billion, up from $4.7 billion at

September 30, 2002. At December 31, 2002, backstop liquidity of 105% was

maintained to cover outstanding commercial paper.

Outstanding bank line borrowings were $2.1 billion at December 31, 2002,

down almost $2.0 billion from September 30, 2002. In January 2003, we repaid

an additional $0.5 billion of the outstanding bank loans.

Term-debt issued during the quarter totaled $2.5 billion, with the

majority fixed rate, and was virtually evenly divided among global,

medium-term note and retail issues. Securitization volume was $1.2 billion,

versus $1.0 billion in the prior quarter.

Portfolio and Managed Assets.

Total financing and leasing portfolio assets were $35.9 billion at

December 31, 2002, versus $36.4 billion at September 30, 2002 and

$38.6 billion at December 31, 2001. A $0.9 billion drop in the Commercial

Finance segment, reflecting seasonal runoff in both the factoring (Commercial

Services) and asset-based lending (Business Credit) businesses, drove the

decline during the quarter. Growth in most core portfolios during the quarter

was offset by the continued runoff in the liquidating portfolios. The

liquidating portfolios (owner-operator trucking, franchise, manufactured

housing, recreational vehicle and inventory finance loans) declined to

$1.34 billion from $1.46 billion at September 30, 2002. Managed assets closed

the quarter at $46.4 billion, versus $47.6 billion last quarter, as

securitized receivables declined $0.8 billion.

Origination volume was up from last quarter in all of our strategic

business units with the exception of factoring, as total new business volume

was up 5.6% from last quarter. Factoring volume was down sequentially due to

seasonal trends, but was up from the prior year quarter.

Net Finance and Risk Adjusted Margins.

Net finance margin, at 4.34% of average earning assets for the current

quarter, declined modestly from 4.37% during the prior quarter, as higher

funding costs reflected our term funding initiatives and improved liquidity

position. Higher yield-related fees substantially offset the higher funding

costs. Risk adjusted margin (net finance margin after provision for credit

losses) declined to $221.0 million or 2.70%, from $248.1 million or 2.92%.

This decline included a $10.7 million increase in the provision for credit

losses due to higher charge-offs.

Credit Quality.

Total 60+ day delinquencies declined to $1.001 billion (3.63% of finance

receivables), from $1.070 billion (3.76%) at September 30, 2002 and

$1.183 billion (3.90%) at December 31, 2001, reflecting improvements in most

businesses, particularly the Commercial Finance segment, and the Specialty

Finance -- commercial unit. Managed 60+ day delinquencies decreased to

$1.396 billion (3.55% of managed financial assets) at December 31, 2002 from

$1.539 billion (3.78%) at September 30, 2002, and $1.701 billion (4.02%) at

December 31, 2001.

Non-performing assets declined to $1.086 billion, 3.93% of finance

receivables, from $1.140 billion, 4.01%, at September 30, 2002 on reductions

in the Commercial Finance and Structured Finance Segments. Equipment

Financing unit non-performing assets declined sharply but were more than

offset by additional aerospace assets placed on non-accrual in the Capital

Finance unit relating to the bankruptcy filing of UAL Corp., the parent

company of United Airlines.

The competitive local exchange carrier ("CLEC") portion of the

telecommunications portfolio totaled approximately $262.3 million at December

31, 2002 (before reserves), of which $92.9 million was on non-accrual status,

down from comparative September 30, 2002 balances of $275.2 million and

$109.9 million, respectively.

Excluding liquidating portfolio charge-offs and telecommunication

charge-offs covered by specific reserving actions in prior quarters,

charge-offs were $118.6 million (1.94% of average finance receivables), up

from $105.4 million (1.63%) last quarter. The increase from last quarter was

primarily the result of higher charge-offs in the Business Credit unit,

reflecting write-offs in connection with concluding several loan workouts.

Total charge-offs during the December quarter were $154.5 million (2.32%),

including $15.5 million of telecommunication loan charge-offs, compared to

$141.0 million (1.99%) during the prior quarter. The tables that follow

detail charge-offs for the current and prior quarters by segment, both in

amount and as a percentage of average finance receivables ($ in millions).

Charge-offs: Quarter Ended December 31, 2002

Excluding

Liquidating/ Liquidating &

Telecom Telecom Total

Equipment

Financing and

Leasing $57.8 2.81% $13.3 9.25% $71.1 3.23%

Specialty Finance -

commercial 21.2 1.42% 2.0 36.36% 23.2 1.55%

Commercial Finance 33.5 1.92% -- -- 33.5 1.92%

Structured Finance -- -- 15.5 8.75% 15.5 2.24%

Total Commercial

Segments 112.5 1.93% 30.8 9.44% 143.3 2.33%

Specialty Finance -

consumer 6.1 2.11% 5.1 2.42% 11.2 2.24%

Total $118.6 1.94% $35.9 6.68% $154.5 2.32%

Charge-offs: Quarter Ended September 30, 2002

Excluding

Liquidating/ Liquidating &

Telecom Telecom Total

Equipment

Financing and

Leasing $59.2 2.88% $11.6 5.13% $70.8 3.10%

Specialty Finance -

commercial 17.6 1.15% 1.2 10.74% 18.8 1.22%

Commercial Finance 22.4 1.06% -- -- 22.4 1.06%

Structured Finance -- -- 18.4 10.67% 18.4 2.78%

Total Commercial

Segments 99.2 1.60% 31.2 7.62% 130.4 1.98%

Specialty Finance -

consumer 6.2 2.27% 4.4 2.05% 10.6 2.17%

Total $105.4 1.63% $35.6 5.70% $141.0 1.99%

Total reserves for credit losses were $760.8 million (2.75% of finance

receivables), compared to $777.8 million (2.73%) at September 30, 2002 and

$496.4 million (1.64%) at December 31, 2001. The reserve reduction during the

quarter was primarily the result of $15.5 million in telecommunication loan

charge-offs applied to the specific reserve. At December 31, 2002, the

reserve for credit losses excluding the telecommunication ($153.6 million) and

Argentine reserves ($135.0 million) was $472.2 million (1.77% of finance

receivables), versus $473.7 million (1.72%) at September 30, 2002.

Additionally, the dollar amount of loan impairment (as defined by SFAS 114)

improved by approximately $50 million, due to both the previously mentioned

conclusions of Business Credit workout activities and improvement in the

Equipment Financing portfolio.

Other Revenue.

For the quarter, other revenue totaled $257.1 million, up from

$209.0 million for the quarter ended September 30, 2002, reflecting lower

venture capital losses, increased factoring revenue, higher fee income and a

modest increase in equipment gains. These improvements were offset in part by

lower other income. Venture capital impairment valuations and write-downs of

$6.4 million were recognized as a reduction to other revenue in the quarter

compared to $36.2 million of such charges in the previous quarter.

Securitization gains during the current quarter totaled $30.5 million,

12.9% of pretax income, on volume of $1,189 million, compared to

$29.2 million, 13.2% of pretax income, on volume of $980 million during the

prior quarter.

Salaries and General Operating Expenses.

Salaries and general operating expenses were $242.1 million for the

quarter, compared to $235.6 million reported for the September 2002 quarter.

The increase from last quarter included incremental expenses associated with

our return to public ownership and higher legal and collection expenses.

Salaries and general operating expenses were 2.18% of average managed assets

during the quarter, versus 2.08% for the prior quarter. The efficiency ratio

for the quarter (salaries and general operating expenses divided by operating

margin, excluding provision for credit losses) was 39.6% as compared to

40.6% in the prior quarter.

Headcount was 5,835 at December 31, 2002 compared to 5,850 at September

30, 2002 and 6,375 at December 31, 2001.

Capitalization and Leverage.

The ratio of tangible equity to managed assets improved to 10.44% as of

December 31, 2002, compared to 9.93% as of September 30, 2002 and 8.72% in the

prior year quarter. The current quarter reflects our initial dividend of

approximately $25 million or $0.12 per share. Return on tangible equity was

12.7% compared to 12.3% for the prior quarter.

Conference Call and Webcast:

We will discuss this quarter's results, as well as on-going strategy, on a

conference call today at 11:00 am (EST). The interested parties may access

the conference call live today by dialing 800-810-0924 for U.S. and Canadian

callers or 913-981-4900 for international callers, with the pass-code 595885,

or at the following website: http://ir.cit.com. An audio replay of the call

will be available beginning no later than three hours after the conclusion of

the call through 12:00 am (EST) January 30, 2003, by dialing 888-203-1112 for

U.S. and Canadian callers or 719-457-0820 for international callers with the

pass-code 595885, or at the following website: http://ir.cit.com.

Forward-Looking Statements:

This release contains "forward-looking statements" within the meaning of

the Private Securities Litigation Reform Act of 1995. All forward-looking

statements (including statements regarding future financial and operating

results) involve risks, uncertainties and contingencies, many of which are

beyond CIT's control, which may cause actual results, performance, or

achievements to differ materially from anticipated results, performance, or

achievements. All statements contained in this release that are not clearly

historical in nature are forward-looking, and the words "anticipate,"

"believe," "expect," "estimate," "plan," and similar expressions are generally

intended to identify forward-looking statements. Economic, business, funding

market, competitive and/or regulatory factors, among others, affecting CIT's

businesses are examples of factors that could cause actual results to differ

materially from those described in the forward-looking statements. More

detailed information about these factors are described in CIT's filings with

the Securities and Exchange Commission, including its Annual Report on Form

10-K for the period ended September 30, 2002. CIT is under no obligation to

(and expressly disclaims any such obligation to) update or alter its

forward-looking statements, whether as a result of new information, future

events or otherwise.

About CIT:

CIT Group Inc. (NYSE: CIT), a leading commercial and consumer finance

company, provides clients with financing and leasing products and advisory

services. Founded in 1908, CIT has nearly $50 billion in assets under

management and applies its financial resources, industry expertise and product

knowledge to serve the needs of clients across approximately 30 industries.

CIT holds leading positions in vendor financing, U.S. factoring, equipment and

transportation financing, Small Business Administration loans, and asset-based

and credit-secured lending. CIT, with its principal offices in New York City

and Livingston, New Jersey, has approximately 6,000 employees in locations

throughout North America, Europe, Latin and South America, and the Pacific

Rim. For more information, visit http://www.cit.com.

CIT GROUP INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED INCOME STATEMENTS

For the Quarters Ended December 31, 2002 and 2001

(dollars in millions, except per share data)

2002(1) 2001(1)

CIT TCH Consolidated

Finance income $971.7 $1,199.0 $-- $1,199.0

Interest expense 340.0 373.0 -- 373.0

Net finance income 631.7 826.0 -- 826.0

Depreciation on operating

lease equipment 277.3 338.5 -- 338.5

Net finance margin 354.4 487.5 -- 487.5

Provision for credit losses 133.4 112.9 -- 112.9

Net finance margin after

provision for credit

losses 221.0 374.6 -- 374.6

Other revenue(2) 257.1 245.1 -- 245.1

Operating margin 478.1 619.7 -- 619.7

Salaries and general

operating expenses 242.1 230.5 8.2 238.7

Intercompany interest

expense - TCH -- -- 76.3 76.3

Operating expenses 242.1 230.5 84.5 315.0

Income before provision

for income taxes 236.0 389.2 (84.5) 304.7

(Provision) benefit for

income taxes (92.0) (147.8) 29.6 (118.2)

Minority interest in

subsidiary trust holding

solely debentures of

the Company, after tax (2.7) (2.4) -- (2.4)

Net income $141.3 $239.0 $(54.9) $184.1

Earnings per share

Basic earnings per share $0.67

Diluted earnings per share $0.67

(1) TCH was a wholly-owned subsidiary of a Tyco affiliate domiciled in

Bermuda and was the holding company for the acquisition of CIT by

Tyco. Prior to the IPO of CIT on July 8, 2002, the activity of TCH

(net deficit) was offset via a capital contribution from Tyco. The

consolidated financial statements of CIT were not impacted by TCH

subsequent to June 30, 2002.

December 31, December 31,

(2) Other Revenue 2002 2001

Fees and other income $169.2 $173.5

Factoring commissions 55.1 38.3

Gains on securitization 30.5 28.0

Gains on sales of leasing equipment 8.7 2.7

(Losses) gains on venture capital investments (6.4) 2.6

Total other revenue $257.1 $245.1

Fees and other income include: servicing fees, structuring and advisory

fees, syndication fees and gains from other asset and receivable sales.

CIT GROUP INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED BALANCE SHEETS

(dollars in millions)

December 31, September 30,

2002 2002

ASSETS

Financing and leasing assets:

Finance receivables $27,621.3 $28,459.0

Reserve for credit losses (760.8) (777.8)

Net finance receivables 26,860.5 27,681.2

Operating lease equipment, net 6,704.6 6,567.4

Finance receivables held for sale 1,213.4 1,019.5

Cash and cash equivalents 2,036.6 2,274.4

Goodwill 384.4 384.4

Other assets(1) 4,732.9 4,783.6

Total Assets $41,932.4 $42,710.5

LIABILITIES AND STOCKHOLDERS' EQUITY

Debt:

Commercial paper $4,974.6 $4,654.2

Variable-rate bank credit facilities 2,118.0 4,037.4

Variable-rate senior notes 4,906.9 5,379.0

Fixed-rate senior notes 19,681.8 18,385.4

Total debt 31,681.3 32,456.0

Credit balances of factoring clients 2,270.0 2,513.8

Accrued liabilities and payables 2,853.2 2,725.2

Total Liabilities 36,804.5 37,695.0

Company-obligated mandatorily redeemable

preferred securities of subsidiary trust

holding solely debentures of the Company 257.2 257.7

Stockholders' Equity:

Common stock 2.1 2.1

Paid-in capital 10,676.2 10,674.8

Accumulated deficit (5,606.9) (5,722.8)

Accumulated other comprehensive loss (200.7) (196.3)

Total Stockholders' Equity 4,870.7 4,757.8

Total Liabilities and Stockholders' Equity $41,932.4 $42,710.5

(1) Other Assets primarily include the following at December 31, 2002:

$1.5 billion of securitization assets, $0.7 billion of accrued

interest and receivables from derivative counterparties, $0.7 billion

of investments and receivables from joint ventures and

non-consolidated subsidiaries, $0.4 billion of deposits on flight

equipment, $0.3 billion of equity investments, $0.2 billion of

repossessed and off-lease equipment, $0.1 billion of prepaid

expenses, and $0.1 billion of investments in aerospace securities.

The remaining balance includes furniture and fixtures, miscellaneous

receivables and other assets.

CIT GROUP INC. AND SUBSIDIARIES

OWNED AND MANAGED ASSET COMPOSITION

(dollars in millions)

Dec. 31, Sept. 30, Dec. 31,

2002 2002 2001

Equipment Financing & Leasing Segment

Equipment Financing

Finance receivables $7,357.8 $7,522.2 $9,191.9

Operating lease equipment, net 668.3 765.8 931.6

Finance receivables held for sale 119.1 110.8 186.9

Owned assets 8,145.2 8,398.8 10,310.4

Finance receivables securitized

and managed by CIT 3,936.2 4,384.1 4,564.4

Managed assets 12,081.4 12,782.9 14,874.8

Capital Finance

Finance receivables 1,335.8 1,479.5 1,694.7

Operating lease equipment, net 4,719.9 4,388.9 3,574.5

Owned assets 6,055.7 5,868.4 5,269.2

Specialty Finance Segment

Commercial

Finance receivables 5,958.1 6,091.5 6,413.6

Operating lease equipment, net 1,257.3 1,353.2 1,892.8

Finance receivables held for sale 764.3 528.7 319.3

Owned assets 7,979.7 7,973.4 8,625.7

Finance receivables securitized

and managed by CIT 3,377.4 3,703.1 4,337.4

Managed assets 11,357.1 11,676.5 12,963.1

Consumer

Finance receivables -

home equity 962.7 934.2 2,640.1

Finance receivables - other 1,044.4 831.8 475.3

Finance receivables held for sale 330.0 380.0 660.5

Owned assets 2,337.1 2,146.0 3,775.9

Home equity finance receivables

securitized and managed

by CIT 2,213.6 2,115.9 230.8

Other finance receivables

securitized and managed

by CIT 955.2 1,031.6 1,309.6

Managed assets 5,505.9 5,293.5 5,316.3

Commercial Finance Segment

Commercial Services

Finance receivables 4,392.5 5,040.4 4,316.2

Business Credit

Finance receivables 3,649.1 3,869.8 3,541.0

Structured Finance Segment

Finance receivables 2,920.9 2,689.6 2,060.2

Operating lease equipment, net 59.1 59.5 66.7

Finance receivables held for sale -- -- 343.6

Equity investments 335.4 341.7 338.2

Owned assets 3,315.4 3,090.8 2,808.7

Total

Finance receivables $27,621.3 $28,459.0 $30,333.0

Operating lease equipment, net 6,704.6 6,567.4 6,465.6

Finance receivables held for sale 1,213.4 1,019.5 1,510.3

Equity investments 335.4 341.7 338.2

Owned assets 35,874.7 36,387.6 38,647.1

Finance receivables securitized

and managed by CIT 10,482.4 11,234.7 10,442.2

Managed assets $46,357.1 $47,622.3 $49,089.3

CIT GROUP INC. AND SUBSIDIARIES

CREDIT METRICS

(dollars in millions)

For the Quarters Ended

Dec. 31, Sept. 30, Dec. 31,

2002 2002 2001

$ % $ % $ %

Net Credit Losses - Owned

as a Percentage of

Average Finance

Receivables

Equipment Financing and

Leasing $71.1 3.23% $70.8 3.10% $62.1 2.22%

Specialty Finance -

Commercial 23.2 1.55% 18.8 1.22% 20.7 1.25%

Commercial Finance 33.5 1.92% 22.4 1.06% 16.6 0.80%

Structured Finance 15.5 2.24% 18.4 2.78% -- 0.00%

Total Commercial 143.3 2.33% 130.4 1.98% 99.4 1.41%

Specialty Finance -

Consumer 11.2 2.24% 10.6 2.17% 13.4 1.70%

Total $154.5 2.32% $141.0 1.99% $112.8 1.44%

Dec. 31, Sept. 30, Dec. 31,

2002 2002 2001

$ % $ % $ %

Finance Receivables Past

Due 60 days or more -

Owned as a Percentage

of Finance Receivables

Equipment Financing and

Leasing $444.8 5.12% $452.2 5.02% $471.8 4.33%

Specialty Finance -

Commercial 182.9 3.07% 215.4 3.54% 293.1 4.57%

Commercial Finance 172.3 2.14% 209.4 2.35% 197.7 2.52%

Structured Finance 67.6 2.31% 65.8 2.45% 37.7 1.83%

Total Commercial 867.6 3.39% 942.8 3.53% 1,000.3 3.68%

Specialty Finance -

Consumer 133.7 6.66% 127.2 7.20% 183.1 5.88%

Total $1,001.3 3.63% $1,070.0 3.76% $1,183.4 3.90%

Non-performing Assets -

Owned as a Percentage

of Finance

Receivables(1)

Equipment Financing

and Leasing $558.4 6.42% $548.5 6.09% $422.3 3.88%

Specialty Finance -

Commercial 98.2 1.65% 103.1 1.69% 150.6 2.35%

Commercial Finance 136.2 1.69% 176.1 1.98% 145.1 1.85%

Structured Finance 151.6 5.19% 172.2 6.40% 92.5 4.49%

Total Commercial 944.4 3.69% 999.9 3.75% 810.5 2.98%

Specialty Finance -

Consumer 141.4 7.04% 139.9 7.92% 171.0 5.49%

Total $1,085.8 3.93% $1,139.8 4.01% $981.5 3.24%

Finance Receivables Past

Due 60 days or more -

Managed as a

Percentage of Managed

Financial Assets(2)

Equipment Financing

and Leasing $631.2 4.95% $710.6 5.27% $790.6 5.06%

Specialty Finance -

Commercial 265.1 2.62% 303.3 2.94% 419.0 3.78%

Commercial Finance 172.3 2.14% 209.4 2.35% 197.7 2.52%

Structured Finance 67.6 2.31% 65.8 2.45% 37.7 1.57%

Total Commercial 1,136.2 3.36% 1,289.1 3.64% 1,445.0 3.91%

Specialty Finance -

Consumer 259.4 4.71% 249.5 4.71% 256.1 4.82%

Total $1,395.6 3.55% $1,538.6 3.78% $1,701.1 4.02%

Reserve for Credit

Losses

Reserve for credit

losses as a

percentage of

finance receivables $760.8 2.75% $777.8 2.73% $496.4 1.64%

(1) Total non-performing assets reflect both commercial and consumer

finance receivables on non-accrual status and assets received in

satisfaction of loans.

(2) Managed financial assets exclude operating leases and certain equity

investments.

CIT GROUP INC. AND SUBSIDIARIES

SELECTED DATA AND OWNED PORTFOLIO INFORMATION

(dollars in millions unless specified)

Selected Data For the Quarters Ended

Dec. 31, Sept. 30, Dec. 31,

Profitability 2002 2002 2001

Net finance margin as percentage of

AEA 4.34% 4.37% 5.20%

Net finance margin after provision

as percentage of AEA 2.70% 2.92% 4.00%

Salaries & general operating expenses

as percentage of AMA(1) 2.18% 2.08% 1.93%

Efficiency ratio 39.6% 40.6% 31.5%

Securitization Volume(2)

Equipment Financing $310.6 $305.5 $488.0

Specialty Finance - Commercial 590.6 410.5 735.8

Specialty Finance - Consumer 288.1 264.0 --

Total $1,189.3 $980.0 $1,223.8

Average Assets

Average Finance Receivables (AFR) $26,586.6 $28,325.8 $31,345.9

Average Earning Assets (AEA) 32,693.2 33,959.4 37,471.2

Average Managed Assets (AMA)(1) 44,361.8 45,356.5 47,420.7

Average Operating Leases (AOL) 6,605.0 6,615.0 6,426.1

Note: Based on ending four month average.

Dec. 31, Sept. 30, Dec. 31,

2002 2002 2001

Capital & Leverage(3),(4)

Tangible stockholders' equity to

managed assets 10.44% 9.93% 8.72%

Debt (net of overnight deposits)

to tangible stockholders' equity(5) 6.22x 6.54x 7.79x

Note: The above data for all relevant periods shown reflects the

activity for CIT only and excludes the consolidating TCH expenses.

(1) "AMA" or "Average Managed Assets" represents the sum of average

earning assets, which are net of credit balances of factoring

clients, and the average of finance receivables previously

securitized and still managed by the Company.

(2) Quarter ended December 31, 2002 excludes trade receivables

securitization activity.

(3) Tangible stockholders' equity excludes goodwill.

(4) Tangible stockholders' equity (excludes the impact of accounting

changes for derivative financial instruments and unrealized gains)

includes Company-obligated mandatorily redeemable preferred

securities of subsidiary trust holding solely debentures of the

Company ("Preferred Capital Securities").

(5) Total debt excludes, and stockholders' equity includes, Preferred

Capital Securities.

Owned Portfolio Information

Dec. 31, Sept. 30, Dec. 31,

2002 2002 2001

Liquidating Portfolios:

Balance $1,339.0 $1,459.9 $2,047.5

Non-performing accounts $160.9 $155.8 $208.7

Past due 60+ days $131.0 $146.2 $203.3

Telecommunications(6):

Financing and leasing assets $710.1 $707.2 $742.0

Number of accounts 52 52 59

Largest customer account balance $32.9 $34.1 $26.5

Non-performing accounts $120.2 $137.0 $41.5

Number of accounts 13 11 6

Past due 60+ days $37.3 $24.2 $22.6

CLEC exposure $262.3 $275.2 $326.2

Equity and Venture Capital Investments:

Total investment balance $335.4 $341.7 $338.2

Direct investments $188.8 $196.6 $190.0

Number of companies 57 60 61

Private equity funds $146.6 $145.1 $140.8

Number of funds 52 52 52

Remaining fund commitments $164.9 $176.6 $214.5

Aerospace:

Financing and leasing assets

Commercial $4,072.8 $3,986.7 $3,472.0

Regional $344.0 $245.0 $177.8

Investment in aerospace assets $95.5 $96.7 --

Number of planes:

Commercial 194 193 201

Regional 117 94 88

Remaining purchase commitment

deliveries (through 2007) 79 82 90

Remaining purchase commitments

(through 2007) ($ in billions) $3.8 $3.9 $4.3

(6) Telecommunication portfolio data consists of lending and leasing

directly to the telecommunication sector, and does not include

lending and leasing for telecom related equipment to non-telecom

companies.

CIT GROUP INC. AND SUBSIDIARIES

Commercial Aerospace Portfolio Data as of December 31, 2002

(dollars in millions unless specified)

Commercial Aerospace Portfolio:

By Region: Net Investment Number

Europe $1,506.5 51

North America 1,042.2 75

Asia Pacific 853.6 35

Latin America 595.9 29

Africa / Middle East 74.6 4

Total $4,072.8 194

By Manufacturer: Net Investment Number

Boeing $2,388.1 135

Airbus 1,647.9 42

Other 36.8 17

Total $4,072.8 194

By Body Type(1): Net Investment Number

Narrow body $2,799.4 142

Intermediate 859.2 17

Wide body 377.4 18

Other 36.8 17

Total $4,072.8 194

Largest customer net investment $193.0

Number of accounts 78

Weighted average age of fleet (years) 6.9

New Aircraft Delivery Order Book

(dollars in billions) Amount Number

Calendar Year:

2003 $0.8 19

2004 1.0 22

2005 1.3 27

2006 0.6 10

2007 0.1 1

Total $3.8 79

Total calendar 2002 delivery book was $0.7 billion and 16 planes.

The order amounts are based on current appraised values in 2002 base

dollars and exclude CIT's option to purchase additional planes.

Contractual maturities, sales and other dispositions, as well as

depreciation expense are expected to largely offset the new deliveries.

(1) Narrow body are single aisle design and consist primarily of Boeing

737 and 757 series and Airbus A320 series aircraft. Intermediate

body are smaller twin aisle design and consist primarily of Boeing

767 series and Airbus A330 series aircraft. Wide body are large twin

aisle design and consist primarily of Boeing 747 and 777 series and

McDonnell Douglas DC10 series aircraft.

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Kit Menkin’s Top Ten Super Bowl Rumors

10. Where is Chuck Brazier? He is the real Defensive Coordinator for

the Tampa Bay Bucs.

9. Warren Sapp lost weight before the game, so he has

been replaced by Bob Rodi,CLP.

8. Jim Lahti is singing the National Anthem.

But please someone tell him the game is not at the Texas Stadium.

The Cowboys are not in the Super Bowl this year, Jim.

7. CIT has approved an SBA loan to Al Davis

so he can move his team back to Los Angeles.

6. Look for Bette “Boom Boom” Kerhoulas among

the Oakland Raiderettes.

5. President Bush has given the Oakland Raiders four

hours to turn over Bill Romanski or he will declare

war against the City of Oakland.

4. CMC has purchased a Super Bowl commercial

looking for brokers.

3. “The Black Hole” refers to rabid Raider fans,

and American Express Business Finance.

3. Ford Motor Credit repossessed Johnny Madden’s bus.

2. Theresa “Tree” Kabot is doing the sideline interviews

in a mini dress.

and

1. Next year it will be a CLP exam to decide the winner.