Social lender Triodos Bank has teamed up with a Scottish social investment firm to offer £5 million of loan finance to third sector organisations seeking to purchase property.

The fund will allow Scottish voluntary and community groups to borrow up to 95 per cent of the value of a property.

Triodos will lend up to 70 per cent of the value of the property and SIS will fund the remaining 20-30 per cent.

The loan package will enable organisations either to purchase the freehold or take over ownership of a building on a long lease. Applicants to the scheme will also be offered legal services.

A spokeswoman for Triodos said that "many third sector organisations in Scotland do not have the equity needed to purchase their own property despite that fact that, in the current market, there is a real opportunity for them to do so".

She said: "By initially making available up to £5 million, the Triodos/SIS loan product will provide the Scottish third sector with crucial access to finance it might not otherwise be able to obtain."

Craig Campbell, chief executive of SIS Scotland, said: "We regularly hear how difficult it is for Scottish third sector organisations to find the finance to enable expansion plans, and hope that this will help them realise their ambitions for growth."

SIS manages a range of social funds, including the Scottish Government’s £30 million Scottish Investment Fund.

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SYDNEY, Nov 10 (Reuters) - Australia's Queensland state government has agreed to sell a 99-year lease for the Port of Brisbane to a consortium including U.S.-based investment fund Global Infrastructure Partners in a $2.3 billion deal.

The winning consortium, Q Port Holdings, also included Australia's Industry Funds Management, funds managed by Queensland's QIC Ltd as well as a subsidiary of the Abu Dhabi Investment Authority, the government said on Wednesday.
The port's lease deal included A$2.1 billion ($2.1 billion) in cash as well as the new owner agreeing to fund a future upgrade of a section of the port's motorway for A$200 million.

"The signing of the deal represents A$2.3 billion worth of value to the Queensland taxpayer with the future development of the port now the responsibility of a quality consortium," Queensland Treasurer Andrew Fraser said in a statement.

Global Infrastructure Partners, Industry Funds Management and QIC would each hold stakes of about 27 percent, leaving the Abu Dhabi Investment Authority with the remaining minority stake.

Global Infrastructure was jointly founded by Credit Suisse and General Electric (GE.N).

The asset was being sold as part of a A$15 billion sale of infrastructure by the Queensland government, including rail freight group QR National which plans to list on the stock market this month.

The other consortium bidding for the port lease included Morgan Stanley Infrastructure Partners (MS.N) and Australian pension fund UniSuper, sources familiar with the matter said.

India's Adani Group (ADEL.BO) had also expressed interest in the process but was not among final bidders, the sources said.

The Australian newspaper earlier reported the A$2.3 billion price tag was around the middle of an indicative range of A$2-A$2.5 billion the government had hoped to fetch.

RBS (RBS.L) and Merrill Lynch (BAC.N) are advising the Queensland government on the sale.

The winning bid is backed by around A$1.25 billion of debt from lenders including ANZ (ANZ.AX), BBVA (BBVA.MC), BNP Paribas (BNPP.PA), Credit Agricole CIB (CAGR.PA), National Australia Bank (NAB.AX), Natixis (CNAT.PA), Sumitomo Mitsui Banking Corp (8316.T) and WestLB WDLG.UL.

The loan margin on the acquisition debt is 200bp-plus according to the financiers.

(Reporting by Michael Smith and Sharon Klyne)

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By Nick Schneider, Assistant Editor

Bloomfield State Bank has entered into a consent order with the Federal Deposit Insurance Corporation and the State of Indiana Department of Financial Institutions after the regulators alleged that the bank was engaged in unsafe and unsound banking practices.

According to the 16-page order issued Sept. 17, Bloomfield State Bank waived a hearing on the allegations and elected to enter into the consent order "without admitting or denying the charges of unsafe or unsound banking practices relating to weakness in capital, asset quality, management and earnings."

Among the directives to management, BSB was mandated to "restore all aspects of the bank to a sound and sound condition, including capital adequacy, asset quality, management effectiveness, earnings, liquidity and sensitivity to interest rate risk."

The bank was further ordered to retain the services of a consultant who has the approval of the FDIC and the State Department of Financial Institutions who will develop a written analysis and assessment of the bank's management.

The order also states that the consultant will conduct an "evaluation of all bank officers and staff members to determine whether these individuals possess the ability, experience and other qualifications required to perform present and anticipated duties, including adherence to the bank's established policies and practices, and restoration and maintenance of the bank in a safe and sound condition."

The board of directors was also ordered to increase its participation in the affairs of the bank and was directed to have in place within 30 days of the order a program that will provide closer monitoring of the bank's operation to ensure compliance with the order.

With regards to capital, the bank was ordered no later than Dec. 31 to have and maintain its level of Tier 1 capital as a percentage of total assets (capital ratio) at a minimum of 9 percent and its level of qualifying total capital as a percentage of risk-weighted assets at a minimum of 12 percent.

Also under the order, the bank is prohibited to extend directly or indirectly any additional credit to any borrower who is already obligated in any manner to the bank on any extensions of credit that has been charged off the books of bank or classified 'loss' in the May 10, 2010 visitation report, so long as the credit remains classified as uncollected, substandard or doubtful.

The order also includes restrictions on the payment of dividends. Prior written consent must be obtained from the FDIC and DFI director before any dividends can be declared and paid.

Within 60 days of the order, the bank was directed to provide a written profit plan and present a realistic, comprehensive budget for the calendar years 2010 and 2011.

FDIC spokesperson LaJuan Williams-Young told the Greene County Daily World that her agency does not comment on specific cases that are under investigation, but she did note that the consent order issued is "an injunctive-type order that may be issued when a banking organization or institution-affiliated party is engaging, has engaged or is about to engage in an unsafe or unsound banking practice, or a violation of law. A banking organization or an institution-affiliated party subject to such an order is required to follow the proscriptions set out in the order and can be directed to take specified actions. 12 U.S.C. § 1818(b)."

Bloomfield State Bank issued a press release that states the bank entered into the agreement to strengthen the financial stability of the bank and position itself to better serve the communities it serves.

The release reads: "Like many other banks over the past three years, Bloomfield State Bank has seen an increase in problem assets during the economic downturn, and the bank is working to address those issues.

"The bank has aggressively and pro-actively moved to meet all requisites set forth in the agreement and has otherwise taken affirmative steps to strengthen all areas of the bank.

"Our employees' primary mission is to continue to support our area, and the local businesses within our communities, by providing excellent customer service with products that have good value.

"Bloomfield State Bank was established in 1873 as a local community bank and we pride ourselves in our unique ability, as a community bank, to assist our friends and neighbors in pursing their dreams, to know them and work with them closely and to be there even when times are difficult."

Mark Barkley, Bloomfield State Bank's Chairman, stated "Our single focus is to make Bloomfield State Bank the strongest bank it can be and to adhere to the core values and principles which are steadfast and time tested in its 135 year history. Our customers should be assured that our services and abilities will remain the same and we are dedicated to our mission to meet today's challenges as well as those of tomorrow."

Bank President/CEO Benny McNeely said much of the bank's problems can be directly linked to a poor local economy with some people struggling to stay out of foreclosure.

He said the bank is required by federal and state regulators when they have either commercial or residential borrower who has some weakness in their credit to get new appraisals on their properties.

"I haven't seen an appraisal in the last two years that came in as high as it was appraised before 2008. When that happens, and whether or not those people are paying us and for the most part they are, we have to set aside reserves for the decline in value of the real estate. We started doing that pretty aggressively in 2009 and continue to do that aggressively to this year. To the extend, that we have nearly $14 million set aside for contingencies on those residential and commercial properties. With a bank our size you can't set aside $14 million over a two year period without it negatively affecting your profitability. That's what has happened to us," McNeely explained. "Those reserves are direct charges against income. Not that we've lost the money, we just had to set it aside to be prepared on those case."

McNeely said this reserve money is set aside in an account called "allowance to loan and lease losses".

"It is there specifically to take care of any issues that we would have in dealing with those real estate properties should those people be unable to pay us and we have to take them back and work with them to sell their property," he said. "Given the economy and the rate of unemployment, we have a fair number of residential customers who are struggling and we have some commercial people who are struggling as well. For the most part they are paying us. But we have had to foreclose on some properties, both residential and commercial. We don't really like to do that, but I to protect the bank and if that is the way to get the bank's money back, that's what I have to do."

McNeely said this the first time in the bank's more than 100 year history that it has faced problems like this.

"We have always maintain roughly 30 percent of our deposits in liquid assets....things that we can always draw on to meet people's needs so we don't have any issues there. You never want to loan out your last dollar," he said. "The Barkley family (who own controlling interest in the bank) have always been ones to reserve capital and never paid out a lot of dividends to themselves. They've always kept the best interest of the bank above the best interest of the family."

A study of Bloomfield State Bank conducted by American University School of Communication shows on June 30, 2010 the bank had assets of $444,033,000 up from $437,640,000 on June 30, 2009.

As of June 30, 2010, deposits amounted to $335,453,00, loans were at $307,951,000 with reserves at $12,753,000.

The study showed that the bank's profit was at minus $2,013,000 for the current term ending June 30. The profit ending June 30,2009 was listed at minus $2,721,000.

Universal Bankcorp, which owns Bloomfield State Bank, received federal TARP funds amounting to $9,900,000 on May 22, 2009

TARP funds are monies utilized by the United States Treasury during the 2008 financial crisis in an attempt to stabilize the American economy. These $700 billion in funds were used to rescue financial institutions which were deemed "too big to fail," out of concern that failure of major financial institutions could plunge the American economy into a depression.

Bloomfield State Bank maintains two offices in Bloomfield and branch locations in Linton, Lyons, Jasonville, Newberry, Eastern Heights, Bloomington, Mitchell, Indianapolis, Greenwood, Oaktown, Columbus and Seymour.

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M&t Bank Corp. has a market cap of $9.81 billion; its shares were traded at around $82.49 with a P/E ratio of 15.4 and P/S ratio of 2.7. The dividend yield of M&t Bank Corp. stocks is 3.4%. M&t Bank Corp. had an annual average earning growth of 1.3% over the past 10 years.
MTB is in the portfolios of Warren Buffett of Berkshire Hathaway, Bill Gates of Bill & Melinda Gates Foundation Trust, Murray Stahl of Horizon Asset Management, Louis Moore Bacon of Moore Capital Management, LP, Mario Gabelli of GAMCO Investors, Jim Simons of Renaissance Technologies LLC, Jean-Marie Eveillard of First Eagle Investment Management, LLC, Steven Cohen of SAC Capital Advisors, Jeremy Grantham of GMO LLC.

Highlight of Business Operations:

M&T Bank Corporation (“M&T”) recorded net income in the third quarter of 2010 of $192 million or $1.48 of diluted earnings per common share, compared with $128 million or $.97 of diluted earnings per common share in the third quarter of 2009. During the second quarter of 2010, net income totaled $189 million or $1.46 of diluted earnings per common share. Basic earnings per common share were $1.49 in the recent quarter, compared with $.97 in the year-earlier quarter and $1.47 in the second quarter of 2010. The after-tax impact of net acquisition and integration-related gains and expenses (included herein as merger-related expenses)resulted in income of $9 million ($15 million pre-tax) or $.08 of basic and diluted earnings per common share in the third quarter of 2009. Such gains and expenses related to M&T’s May 23, 2009 acquisition of Provident Bankshares Corporation (“Provident”) and to the August 28, 2009 agreement between the Federal Deposit Insurance Corporation (“FDIC”) and M&T Bank, the principal banking subsidiary of M&T, for M&T Bank to assume all of the deposits and acquire certain assets of Bradford Bank (“Bradford”). There were no merger-related expenses during 2010. For the nine months ended September 30, 2010, net income was $532 million or $4.10 per diluted common share, compared with $243 million or $1.84 per diluted common share during the similar period of 2009. Basic earnings per common share were $4.12 for the first nine months of 2010, compared with $1.84 in the corresponding nine-month period of 2009. The after-tax impact of merger-related gains and expenses was $33 million ($54 million pre-tax) or $.28 of basic and diluted earnings per common share in the nine-month period ended September 30, 2009.

Several noteworthy items are reflected in M&T’s third quarter 2009 results. On August 28, 2009 M&T Bank entered into a purchase and assumption agreement with the FDIC to assume all of the deposits and acquire certain assets of Bradford, a bank based in Baltimore, Maryland. As part of the transaction, M&T Bank entered into a loss-share arrangement with the FDIC whereby M&T Bank will be reimbursed by the FDIC for most losses it incurs on the acquired loan portfolio. Assets acquired in the transaction totaled approximately $469 million, including $302 million of loans, and liabilities assumed aggregated $440 million, including $361 million of deposits. The transaction was accounted for using the acquisition method of accounting. In accordance with GAAP, M&T Bank recorded an after-tax gain on the transaction of $18 million ($29 million before taxes) during the third quarter of 2009. The gain reflected the amount of financial support and indemnification against loan losses that M&T obtained from the FDIC. Merger-related expenses associated with this transaction and with M&T’s second quarter acquisition of Provident totaled $9 million, after applicable tax effect, in 2009’s third quarter. Also reflected in M&T’s third quarter 2009 results were $29 million of after-tax other-than-temporary impairment charges ($47 million before taxes) on certain available-for-sale investment securities. Specifically, such charges related to certain privately issued CMOs backed by residential real estate loans and CDOs backed by pooled trust preferred securities of financial institutions. Finally, M&T’s results in the third quarter of 2009 benefited from a $10 million reversal of accrued income taxes for previously uncertain tax positions in various jurisdictions. The overall impact of the items described herein was to reduce M&T’s third quarter 2009 net income by approximately $9 million, or $.08 of diluted earnings per common share.

The Provident transaction has been accounted for using the acquisition method of accounting. Accordingly, the assets acquired and liabilities assumed were recorded by M&T at their estimated fair values as of the acquisition date. Assets acquired totaled $6.3 billion, including $4.0 billion of loans and leases (including approximately $1.7 billion of commercial real estate loans, $1.4 billion of consumer loans, $700 million of commercial loans and leases and $300 million of residential real estate loans) and $1.0 billion of investment securities. Liabilities assumed were $5.9 billion, including $5.1 billion of deposits. The transaction added $436 million to M&T’s stockholders’ equity, including $280 million of common equity and $156 million of preferred equity. In connection with the acquisition, the Company recorded $332 million of goodwill and $63 million of core deposit intangible. The core deposit intangible is being amortized over seven years using an accelerated method. The acquisition of Provident expanded the Company’s presence in the Mid-Atlantic area, gave the Company the second largest deposit share in Maryland, and tripled the Company’s presence in Virginia.

As a result of business combinations and other acquisitions, the Company had intangible assets consisting of goodwill and core deposit and other intangible assets totaling $3.7 billion at each of September 30, 2010, September 30, 2009 and December 31, 2009. Included in such intangible assets was goodwill of $3.5 billion at each of those respective dates. Amortization of core deposit and other intangible assets, after tax effect, totaled $8 million ($.07 per diluted common share) during the third quarter of 2010, compared with $10 million ($.09 per diluted common share) during the year-earlier quarter and $9 million ($.07 per diluted common share) during the second quarter of 2010. For the nine-month periods ended September 30, 2010 and 2009, amortization of core deposit and other intangible assets, after tax effect, totaled $27 million ($.23 per diluted common share) and $29 million ($.25 per diluted common share), respectively.

Average loans and leases declined $1.5 billion, or 3%, to $50.8 billion in the recent quarter from $52.3 billion in the third quarter of 2009. Average commercial loan and lease balances declined $945 million, or 7%, to $12.9 billion in the third quarter of 2010 from $13.8 billion in the year-earlier quarter. That decline was the result of generally lower demand for commercial loans. Commercial real estate loans averaged $20.6 billion in the recent quarter, compared with $20.8 billion in the third quarter of 2009. Average outstanding residential real estate loans increased $251 million or 5% to $5.7 billion in the recently completed quarter from $5.4 billion in the third quarter of 2009. Included in that portfolio were loans held for sale, which averaged $441 million in the third quarter of 2010, compared with $613 million in the year-earlier quarter. Consumer loans averaged $11.7 billion in the recent quarter, $560 million or 5% lower than $12.2 billion in 2009’s third quarter. That decline was largely due to lower average outstanding automobile and home equity loan balances.

$100,000, excluding brokered certificates of deposit, averaged $1.6 billion in the third quarter of 2010, compared with $2.5 billion in the year-earlier quarter and $1.7 billion in the second quarter of 2010. Offshore branch deposits, primarily comprised of balances of $100,000 or more, averaged $802 million, $1.4 billion and $972 million for the three-month periods ended September 30, 2010, September 30, 2009 and June 30, 2010, respectively. Brokered time deposits averaged $571 million in the recent quarter, compared with $1.1 billion in the third quarter of 2009 and $709 million in the second quarter of 2010. The Company also had brokered NOW and brokered money-market deposit accounts, which in the aggregate averaged $1.5 billion during the recently completed quarter, compared with $709 million and $1.2 billion during the similar quarter of 2009 and the second quarter of 2010, respectively. The higher level of such deposits in the two most recent quarters as compared with the third quarter of 2009 reflects continued uncertain economic markets and the desire of brokerage firms to earn reasonable yields while ensuring that customer deposits were fully insured. Offshore branch deposits and brokered deposits have been used by the Company as alternatives to short-term borrowings. Additional amounts of offshore branch deposits or brokered deposits may be added in the future depending on market conditions, including demand by customers and other investors for those deposits, and the cost of funds available from alternative sources at the time.

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