US Treasurys. Slight upticks as we move closer to election …

As of 9:00 am 2 November 2020, U.S. Treasury rates are as follows:

3-month: .09%

6-month: .10%

12-month: .12%

2-year: .15%

10-year: .84%

30-year: 1.63%

Fed Funds Rate: 0.08%

Federal Reserve Target: 0.25%

Prime Rate: 3.25%

Source: Bloomberg

No, the banks are not the bad guys …

Alton Drew

The Board of Governors of the Federal Reserve System begin their two-day meeting next Wednesday, one day after the general election. No changes in inter-bank rates are expected, but what will be of interest is a likely repeat of the plea that Congress and the Executive implement a fiscal policy that keeps the economy on life support during the pandemic. Depending on who wins the Electoral College, Chairman Jerome Powell’s post-meeting comments will be either soothing or raise more hairs on the back of the public’s necks.

Mr Powell will reiterate the need for fiscal policy because monetary policy can only do so much. Monetary policy has as one of its goals the backstopping of its member banks, providing needed liquidity when the credit pipes become clogged by opening the flow of credit to businesses via the banks whose inability to lend could stem from not having enough capital to support additional lending.

Fiscal policy, the Fed chairman will likely remind us next Thursday, does a better job of getting cash into the hands of consumers resulting in increased personal expenditures. Consumer spending has historically driven around seventy percent of national income, and that the kind of spending that is needed now.

But this relief is going to be temporary. The more sustaining stimulus will come from an economy that opens back up. If the polls continue to hold and Joe Biden takes office in January 2021, he could take actions to keep needed capital in the United States that probably props up the economy. Would Mr Biden want to tax this capital as part of his promise to bring about an equitable tax environment where the affluent pay their fair share of taxes or will he back pedal on taxing captured capital in order to quell any attempts at tax avoidance while ensuring the availability of stimulative spending?

Mr Biden may also be reminded that in an economy that is credit driven, where banks are the information search agents that help capital seek out higher returns by identifying worthwhile investments, he could also leave banks, their investors, and their depositors off of his tax hit list thus helping the Federal Reserve further unclog the credit pipes.

Century Bancorp announces its earnings …

Source: Century Bancorp.

MEDFORD, Mass.–(BUSINESS WIRE)–Century Bancorp, Inc. (NASDAQ:CNBKA) ( (“the Company”) today announced net income of $30,609,000 for the nine months ended September 30, 2020, or $5.50 per Class A share diluted, an increase of 5.7% compared to net income of $28,967,000, or $5.20 per Class A share diluted, for the same period a year ago. Total assets increased 14.6% from $5.49 billion at December 31, 2019 to $6.3 billion at September 30, 2020. For the quarter ended September 30, 2020, net income totaled $10,887,000 or $1.96 per Class A share diluted, an increase of 8.0% compared to net income of $10,084,000, or $1.81 per Class A share diluted, for the same period a year ago.

“Effect of Sequestration on the Alternative Minimum Tax Credit for Corporations”Tweet this

The Company’s Board of Directors voted to increase its regular quarterly dividend from 14.00 cents ($0.14) per share to 16.00 cents ($0.16) per share on the Company’s Class A common stock, and from 7.00 cents ($0.07) per share to 8.00 cents ($0.08) per share on the Company’s Class B common stock. The dividends were declared payable November 16, 2020 to stockholders of record on November 2, 2020.

Net interest income totaled $78.4 million for the nine months ended September 30, 2020 compared to $70.5 million for the same period in 2019. The 11.2% increase in net interest income for the period is primarily due to a decrease in interest expense as a result of falling interest rates. Prepayment penalties collected amounted to approximately $946,000 for the first nine months of 2020 compared to $18,000 for the same period last year. The net interest margin decreased from 2.08% on a fully tax-equivalent basis for the first nine months of 2019 to 2.01% for the same period in 2020. This was primarily the result of increased margin pressure during the recent decrease in interest rates across the yield curve. The average balances of earning assets increased for the first nine months of 2020 compared to the same period last year, by $609.0 million or 12.3%, combined with an average yield decrease of 0.55%, resulting in a decrease in interest income of $6.2 million. The average balance of interest-bearing liabilities increased for the first nine months of 2020 compared to the same period last year, by $486.9 million or 12.1%, combined with an average interest-bearing liabilities interest cost decrease of 0.59%, resulting in a decrease in interest expense of $14.1 million.

The provision for loan losses increased by $2,975,000 from $700,000 for the nine months ended September 30, 2019 to $3,675,000 for the same period in 2020, primarily as a result of the economic uncertainties associated with the novel coronavirus disease (COVID–19) pandemic and increased loan balances.

The Company’s effective tax rate increased from 2.0% for the nine months ended September 30, 2019 to 9.5% for the same period in 2020. This was primarily as a result of an increase in taxable income relative to total income and a reduction in tax accruals, during 2019, related to sequestration of the refundable portion of our alternative minimum tax (AMT) credit carryforward. On January 14, 2019, the IRS updated its announcement “Effect of Sequestration on the Alternative Minimum Tax Credit for Corporations” to clarify that refundable AMT credits under Section 53(e) of the Internal Revenue Code are not subject to sequestration for taxable years beginning after December 31, 2017. On March 27, 2020, the Coronavirus, Aid, Relief and Economic Security (CARES) Act was signed into law. As a result of the CARES Act, the full balance of the AMT credit was refunded in 2020.

At September 30, 2020, total equity was $363.4 million compared to $332.6 million at December 31, 2019. The Company’s equity increased primarily as a result of earnings, offset somewhat by dividends paid.

The Company’s leverage ratio stood at 6.79% at September 30, 2020, compared to 7.25% at December 31, 2019. The decrease in the leverage ratio was due to an increase in quarterly average assets, offset somewhat by an increase in stockholders’ equity. Book value as of September 30, 2020 was $65.27 per share compared to $59.73 at December 31, 2019.

The Company’s allowance for loan losses was $33.4 million or 1.12% of loans outstanding at September 30, 2020 compared to $29.6 million or 1.22% of loans outstanding at December 31, 2019, and $29.1 million or 1.22% of loans outstanding at September 30, 2019. The ratio of the allowance for loan losses to loans outstanding has decreased from December 31, 2019, primarily from approximately $232 million of Payroll Protection Program (PPP) loans that are guaranteed by the U.S. Small Business Administration (SBA), which require no allowance for loan losses. Nonperforming assets totaled $1.4 million at September 30, 2020, compared to $2.0 million at December 31, 2019, and $1.1 million at September 30, 2019.

As of September 30, 2020, the Company has COVID-19 modifications of 33 loans aggregating $37,987,000, primarily consisting of short-term payment deferrals. Of these modifications, $37,987,000, or 100%, were performing in accordance with their modified terms.

The CARES Act also allows companies to delay Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) 2016-13, Measurement of Credit Losses on Financial Instruments (CECL), including the current expected credit losses methodology for estimating allowances for credit losses. The Company has elected to delay FASB ASU 2016-13. This ASU will be delayed until the earlier of the date on which the national emergency concerning the COVID–19 outbreak declared by the President on March 15, 2020 terminates or December 31, 2020, with an effective retrospective implementation date of January 1, 2020.

The Company, through its subsidiary bank, Century Bank and Trust Company, a state chartered full service commercial bank, operating twenty-seven full-service branches in the Greater Boston area, offers a full range of Business, Personal and Institutional Services.

Century Bank and Trust Company is a member of the FDIC and is an Equal Housing Lender.

This press release contains certain “forward-looking statements” with respect to the financial condition, results of operations and business of the Company. Actual results may differ from those contemplated by these statements. The Company wishes to caution readers not to place undue reliance on any forward-looking statements. The Company disclaims any intent or obligation to update publicly any such forward-looking statements, whether in response to new information, future events or otherwise.

Century Bancorp, Inc. and Subsidiaries
Consolidated Comparative Statements of Condition (unaudited)
(in thousands)
September 30,December 31,
Cash and Due From Banks$101,679$44,420
Federal Funds Sold and Interest-bearing Deposits In Other Banks 310,901 214,273
Securities Available-for-Sale (AFS) 293,277 262,190
Securities Held-to-Maturity 2,407,176 2,351,120
Federal Home Loan Bank of Boston stock, at cost 13,361 19,471
Commercial & Industrial 1,315,407 812,417
Municipal 130,047 120,455
Construction & Land Development 9,116 8,992
Commercial Real Estate 784,895 786,102
Residential Real Estate 443,703 371,897
Consumer and Other 19,866 21,893
Home Equity 287,099 304,363
Total Loans 2,990,133 2,426,119
Less: Allowance for Loan Losses 33,394 29,585
Net Loans 2,956,739 2,396,534
Bank Premises and Equipment, net 37,340 33,952
Accrued Interest Receivable 13,223 13,110
Goodwill 2,714 2,714
Other Assets 159,016 154,640
Total Assets$6,295,426$5,492,424
Demand Deposits$991,590$712,842
Interest Bearing Deposits:
Savings and NOW Deposits 1,932,339 1,678,250
Money Market Accounts 1,906,676 1,453,572
Time Deposits 581,866 555,447
Total Interest Bearing Deposits 4,420,881 3,687,269
Total Deposits 5,412,471 4,400,111
Borrowed Funds:
Securities Sold Under Agreements to Repurchase 231,030 266,045
Other Borrowed Funds 152,248 370,955
Total Borrowed Funds 383,278 637,000
Other Liabilities 100,160 86,649
Subordinated Debentures 36,083 36,083
Total Liabilities 5,931,992 5,159,843
Total Stockholders’ Equity 363,434 332,581
Total Liabilities & Stockholders’ Equity$6,295,426$5,492,424
Century Bancorp, Inc. and Subsidiaries
Consolidated Comparative Statements of Income (unaudited)
For the quarter and nine months ended September 30, 2020 and 2019
(in thousands)
Quarter ended September 30,Nine months ended September 30,
Interest Income:
Securities Held-to-Maturity 14,186 14,623 44,701 43,006
Securities Available-for-Sale 818 2,184 3,493 7,305
Federal Funds Sold and Interest-bearing Deposits In Other Banks 69 928 747 3,204
Total Interest Income 36,504 39,852 112,419 118,621
Interest Expense:
Savings and NOW Deposits 1,726 5,445 7,569 16,788
Money Market Accounts 3,056 5,050 12,090 15,805
Time Deposits 2,858 3,038 9,141 8,724
Securities Sold Under Agreements to Repurchase 241 697 1,176 1,572
Other Borrowed Funds and Subordinated Debentures 1,292 1,852 4,093 5,274
Total Interest Expense 9,173 16,082 34,069 48,163
Net Interest Income 27,331 23,770 78,350 70,458
Provision For Loan Losses 900 75 3,675 700
Net Interest Income After
Provision for Loan Losses 26,431 23,695 74,675 69,758
Other Operating Income:
Service Charges on Deposit Accounts 2,239 2,310 6,558 6,801
Lockbox Fees 996 937 2,850 3,018
Net Gain on Sales of Loans    154
Other Income 934 1,039 3,112 3,737
Total Other Operating Income 4,169 4,286 12,520 13,710
Operating Expenses:
Salaries and Employee Benefits 11,362 10,670 33,020 32,621
Occupancy 1,477 1,463 4,448 4,686
Equipment 809 862 2,608 2,440
Other 4,519 4,467 13,306 14,170
Total Operating Expenses 18,167 17,462 53,382 53,917
Income Before Income Taxes 12,433 10,519 33,813 29,551
Income Tax Expense 1,546 435 3,204 584
Net Income$10,887$10,084$30,609$28,967
Century Bancorp, Inc. and Subsidiaries
Consolidated Year-to-Date Average Comparative Statements of Condition (unaudited)
(in thousands)
September 30,September 30,
Cash and Due From Banks$80,686 $74,413 
Federal Funds Sold and Interest-Bearing Deposits in Other Banks 238,525  184,035 
Securities Available-For-Sale (AFS) 293,301  325,036 
Securities Held-to-Maturity (HTM) 2,346,502  2,128,082 
Total Loans 2,693,000  2,325,136 
Less: Allowance for Loan Losses 31,359  28,936 
Net Loans 2,661,641  2,296,200 
Unrealized (Loss)Gain on Securities AFS and HTM Transfers (2,861) (3,352)
Bank Premises and Equipment 36,253  26,273 
Accrued Interest Receivable 12,630  13,942 
Goodwill 2,714  2,714 
Other Assets 164,804  133,754 
Total Assets$5,834,195 $5,181,097 
Demand Deposits$889,237 $764,852 
Interest Bearing Deposits:
Savings and NOW Deposits 1,881,897  1,818,017 
Money Market Accounts 1,603,367  1,249,531 
Time Deposits 597,589  512,228 
Total Interest Bearing Deposits 4,082,853  3,579,776 
Total Deposits 4,972,090  4,344,628 
Borrowed Funds:
Securities Sold Under Agreements to Repurchase 220,796  205,185 
Other Borrowed Funds 169,972  201,804 
Total Borrowed Funds 390,768  406,989 
Other Liabilities 88,028  79,327 
Subordinated Debentures 36,083  36,083 
Total Liabilities 5,486,969  4,867,027 
Total Stockholders’ Equity 347,226  314,070 
Total Liabilities & Stockholders’ Equity$5,834,195 $5,181,097 
Total Average Earning Assets – QTD$5,881,860 $4,971,831 
Total Average Earning Assets – YTD$5,571,328 $4,962,289 
Century Bancorp, Inc. and Subsidiaries
Consolidated Selected Key Financial Information (unaudited)
(in thousands, except share data)September 30,September 30,
Performance Measures:
Earnings per average Class A share, diluted, quarter$1.96 $1.81 
Earnings per average Class A share, diluted, year-to-date$5.50 $5.20 
Return on average assets, year-to-date 0.70% 0.75%
Return on average stockholders’ equity, year-to-date 11.78% 12.33%
Net interest margin (taxable equivalent), quarter 1.96% 2.08%
Net interest margin (taxable equivalent), year-to-date 2.01% 2.08%
Efficiency ratio, Non-GAAP (1) 55.4% 59.1%
Book value per share$65.27 $59.08 
Tangible book value per share – Non-GAAP (1)$64.79 $58.59 
Capital / assets 5.77% 6.21%
Tangible capital / tangible assets – Non-GAAP (1) 5.73% 6.16%
Common Share Data:
Average Class A shares outstanding, diluted, quarter and year-to-date 5,567,909  5,567,909 
Shares outstanding Class A 3,655,469  3,650,449 
Shares outstanding Class B 1,912,440  1,917,460 
Total shares outstanding at period end 5,567,909  5,567,909 
Asset Quality and Other Data:
Allowance for loan losses / loans 1.12% 1.22%
Nonaccrual loans$1,419 $1,066 
Nonperforming assets$1,419 $1,066 
Loans 90 days past due and still accruing$49 $ 
Accruing troubled debt restructures$2,240 $2,404 
Net charge-offs (recoveries), year-to-date$(134)$146 
Leverage ratio 6.79% 7.25%
Common equity tier 1 risk weighted capital ratio 11.36% 11.90%
Tier 1 risk weighted capital ratio 12.40% 13.12%
Total risk weighted capital ratio 13.39% 14.13%
Total risk weighted assets$3,370,541 $2,867,422 
(1) Non-GAAP Financial Measures are reconciled in the following tables:
Calculation of Efficiency ratio:
Total operating expenses(numerator)$53,382 $53,917 
Less: other real estate owned expenses   (139)
Total adjusted operating expenses(numerator)$53,382 $53,778 
Net interest income$78,350 $70,458 
Total other operating income 12,520  13,710 
Tax equivalent adjustment 5,558  6,875 
Total income(denominator)$96,428 $91,043 
Efficiency ratio – Non-GAAP 55.4% 59.1%
Calculation of tangible book value per share:
Total stockholders’ equity$363,434 $328,960 
Less: goodwill 2,714  2,714 
Tangible stockholders’ equity(numerator)$360,720 $326,246 
Total shares outstanding at period end(denominator) 5,567,909  5,567,909 
Tangible book value per share – Non-GAAP$64.79 $58.59 
Book value per share – GAAP$65.27 $59.08 
Calculation of tangible capital / tangible assets:
Total stockholders’ equity$363,434 $328,960 
Less: goodwill 2,714  2,714 
Tangible stockholders’ equity(numerator)$360,720 $326,246 
Total assets$6,295,426 $5,299,181 
Less: goodwill 2,714  2,714 
Tangible assets(denominator)$6,292,712 $5,296,467 
Tangible capital / tangible assets – Non-GAAP 5.73% 6.16%
Capital / assets – GAAP 5.77% 6.21%


William P. Hornby, CPA
Phone: 781-393-4630
Fax: 781-393-4071

Citigroup comes out with its earnings report.

New York – Citigroup Inc. today reported net income for the third quarter 2020 of $3.2 billion, or $1.40 per diluted share, on revenues of $17.3 billion. This compared to net income of $4.9 billion, or $2.07 per diluted share, on revenues of $18.6 billion for the third quarter 2019.

Revenues decreased 7% from the prior-year period, primarily reflecting lower revenues in Global Consumer Banking (GCB) and Corporate / Other, partially offset by growth in Fixed Income Markets, Investment Banking, Equity Markets and the Private Bank in the Institutional Clients Group (ICG). Net income declined 34% from the prior-year period, largely driven by the lower revenues, an increase in expenses and higher credit costs. Results include a $400 million civil money penalty in connection with consent orders recorded in Corporate / Other. Earnings per share of $1.40 decreased 32% from the prior-year period, primarily reflecting the decline in net income.

Michael Corbat, Citi CEO, said, “We continue to navigate the effects of the COVID-19 pandemic extremely well. Credit costs have stabilized; deposits continued to increase; and revenues are up 3% year-to-date. Our Institutional Clients Group again had very strong performance, especially in Markets, Investment Banking and the Private Bank. The backbone of our global network, Treasury and Trade Solutions experienced strong client engagement in the face of low interest rates. Although Global Consumer Banking revenues remained lower as a result of the pandemic, we did see higher activity in our mortgage and wealth management products.

“Our capital position strengthened during the quarter with our Common Equity Tier 1 ratio increasing to 11.8% and our Tangible Book Value per share increasing to $71.95. We remain committed to returning capital to our shareholders, subject to the industry-wide approach determined by the Federal Reserve.

“We are committed to thoroughly addressing the issues contained in the Consent Orders we entered into last week with the Federal Reserve and the Office of the Comptroller of the Currency. These investments will not only further enhance our safety and soundness, they will result in a digital infrastructure that will improve our ability to serve our clients and customers and make us more competitive,” Mr. Corbat concluded.

Percentage comparisons throughout this press release are calculated for the third quarter 2020 versus the third quarter 2019, unless otherwise specified.

Source: Citigroup

JP Morgan Chase earnings report

On October 13, 2020, JPMorgan Chase & Co. (“JPMorgan Chase” or the “Firm”) reported 2020 third quarter net income of $9.4 billion, or $2.92 per share, compared with net income of $9.1 billion, or $2.68 per share, in the third quarter of 2019. A copy of the 2020 third quarter earnings release is attached hereto as Exhibit 99.1, and a copy of the earnings release financial supplement is attached hereto as Exhibit 99.2.

Source: JP Morgan Chase

Public policy should encourage banking to go back to its roots: financing commerce while supporting high yield…

The unbanked are unbanked because they have nothing to bank.  In a nation driven by capital formation and returns on capital, focusing on the unbanked seems like putting the horse before the carrot.  The American Treasury Department and the central bank should be focusing public policy on encouraging capital formation and generating high yield.  Nothing in the U.S. Constitution says that consumers should be encouraged to borrow or that banks should be obliged to lend to the consumer class.

Political responses such as the Community Reinvestment Act, the Dodd-Frank Act, or the creation of the Consumer Financial Protection Board cater to voters but overlook the need for encouraging the accumulation of capital goods necessary for driving the American economy.

More importantly, political responses mentioned above serve to incentivize consumers to enslave themselves to credit even while the last four decades have seen real wages go stagnant.  The political class on the left is quick to leave out consumers’ complicity in the financial downturn of 2007-2009 where consumers were encouraged to borrow against their shrinking means to repay.  Consumers do not need protection from banks.  We need our mindsets redirected in our approach to banking.

Each household needs to rebuild their capital buffer.  It is easier said than done especially in a transition period where the timeline for capital’s replacement of labor with automation and artificial intelligence is being sped up.  Not only is more work being done from home but businesses are determining whether the benefits of keeping employees at home outweigh the costs of bringing them back in-house.  A number of employers have been transparent with updating employees on their engagement with companies offering AI-driven resources that increase efficiency.  Larger companies are partnering with technology companies whose mission is to reduce the time employees spend on certain tasks.  These are threats to labor and income and in this environment not only is the consumer tasked with increasing household capital formation but with seeking additional or alternative opportunities that provide for increases in income, savings, and investment.

One way, in my opinion, to increase capital while deriving additional income is for public policy to encourage high yield on capital.  The consumer who flips her mindset from shopper to investor needs an environment where her savings can accumulate at a faster rate; where higher residuals can be reinvested into her principal holdings and create appreciation.  Public policy should support full employment of capital and maximum prices for capital. How does the US get there?

One way to get there is for banks to abandon their risk-based interest rate pricing model, where higher interest rates is the price that riskier customers must pay for borrowed funds.  Rather, banks should abandon consumer lending altogether.  Lending money to a consumer in a stagnant income, labor replaced by automation environment so that the consumer can build a deck, finish a basement, or send a kid to school is what I call low value enterprise lending where the loan is being applied to a consumer’s wage income versus residuals the asset provides.

Instead, interest rates should reflect the competition between borrowers seeking to demonstrate their enterprise ideas will provide the greatest returns to capital and equity.  High interest rates should not be charged because of a high risk of failure.  Rather, high rates should be charged because where the lender sees high returns to equity in the enterprise, the lender seeks to capture some of that value.

Banks, then, should abandon consumer lending and put energy and resources into commercial or merchant banking.  Consumer involvement in banking should be limited to establishing savings or investment accounts with banks or owning stocks in banks.

Again, the upside from this model for banks, a focus on lending to merchants that leverage real assets to make income.  The upside for the consumer is less borrowing and more investing thus greater capital formation.  Also, the consumer may learn how to plan purchases over a long term versus seeking the psychic value of getting something now and paying for it later.  For example, a consumer may put away cash over some determined period of time to purchase that new deck without having to burden themselves with debt.

Or, a consumer may seek out a group of private consumer lenders who are not connected to the banking system thus reducing the chances of shock to the system should a borrower renege on a loan.  They will be forced to rely on the courts, lawyers, and mediators for resolving any conflicts with private lenders.



Of banks and the politics of coronavirus support …

Politics of banking

Earlier today, the chairman of the U.S. House of Representatives Select Sub-committee on the Coronavirus Crisis, James Clyburn, Democrat of South Carolina, sent a letter to Steven Mnuchin, Secretary of the United States Department of the Treasury, and Jovita Carranza, Administrator of the Small Business Administration, requesting that Treasury and the SBA take steps to ensure that $130 billion remaining under the Paycheck Protection Program and Health Care Enhancement Act (PPP) are allocated to businesses truly in need and that both agencies increase the level of transparency about the recipients of funds that have already been expended.

According to the letter sent by Chairman Clyburn, Congress is concerned that with no clear guidance issued by either the Treasury Department or the SBA, larger businesses that already had lending relationships with banks that distributed the funding, would be first in line for the lion share of funds.  It was partly due to this fear that Congress followed up the Coronavirus Aid, Relief and Economic Security Act (CARES Act) with the Paycheck Protection Program and Health Care Enhancement Act, which provided an additional $310 billion in funding and set aside $60 billion to be distributed by community lenders with a track record for lending money to smaller borrowers.

The political controversy surrounding the support program is spawned by Chairman Clyburn’s that banks release the names of all recipients of paycheck protection program funding.  Republicans apparently have not signed off on this request given the lack of Republican signatures on Chairman Clyburn’s letter.  In addition, Secretary Mnuchin has referred to the requested information as proprietary, a description that Chairman Clyburn does not agree with.

The issue appears more a political one than a market one.  Neither demand or supply for these funds are the result of economic interaction between the seeker of loanable funds and provider but more the result of government imposed shutdowns, and the resulting slowdown in the economy as social distancing and quarantines have reduced foot traffic in restaurants, stores, and automobile showrooms to a halt and in a number of cases has caused businesses to seek bankruptcy protection.

The big banks, including J.P. Morgan Chase, Bank of America, Truist, Citibank, and Wells Fargo have been called out by critics for hooking up larger businesses with more established relationships versus the mom and pop with ten employees on the verge of shut down.

But as Paul Miller of Miller & Co. LLP shared in a post on, there are alternative sources of funding for small businesses out there.  They include:

  • The Employee Retention Credit;
  • Local and state coronavirus resources (see;
  • Crowd-funding;
  • Venture capital; and
  • Traditional lines of credit.