Source: Morningstar
As of 16 October 2020, the U.S. Dollar can purchase the following:
Ghana: 5.81 GHS
Nigeria: 380.00 NGN
Sierra Leone: 9905.00 SLL
The Gambia: 51.76 GMD
Angola: 646.60 AOA
Eastern Caribbean: 2.70 XCD
Telehealth demand is increasing …
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by IIA
OCTOBER 15, 2020
According to FAIR Health’s Monthly Regional Tacker, telehealth claim lines — an individual service or procedure listed on an insurance claim — rose over 3,800% in the U.S. from July 2019 to July 2020.
The data also showed that over this same timeframe, telehealth claims rose in both urban centers and rural areas, though urban centers saw much higher rates of usage. 6.4% of total medical claim lines in urban centers utilized telehealth versus 3.0% in rural areas.Source: FAIR Health
Foreign exchange rates: 15 October 2020
As of today, 15 October 2020, the U.S. Dollar can purchase the following:
Ghana: 5.80 GHS
Nigeria: 383.58 NGN
Sierra Leone: 9,900.00 SLL
The Gambia: 51.75 GMD
Angola: 644.13 AOA
Eastern Caribbean: 2.70 XCD
Source: Morningstar
High points from Federal Reserve vice-chair Richard Clarida show how Biden will play economy in 2023 …
News and Analysis
Yesterday, vice-chairman of the Board of Governors of the Federal Reserve, Richard Clarida, reiterated the Federal Reserve’s call for continued stimulus spending to reboot an American economy severely slowed down by a government-ordered commercial lockdown resulting from efforts to stem the virality of Covid-19. In describing combined fiscal and monetary efforts to reboot the economy, Mr Clarida shared the following:
“Although spending on many services continues to lag, the rebound in the GDP data has been broad based across indicators of goods consumption, housing, and investment. These components of aggregate demand have benefited from robust fiscal support—including the Paycheck Protection Program and expanded unemployment benefits—as well as low interest rates and efforts by the Federal Reserve to sustain the flow of credit to households and firms. In the labor market, about half of the 22 million jobs that were lost in the spring have been restored, and the unemployment rate has fallen since April by nearly 7 percentage points to 7.9 percent as of September.”
Mr Clarida challenged naysayers who had argued that interest rate cuts, asset purchases, and loan programs would not facilitate growth in gross domestic product by reminding them that the unemployment rate has fallen almost seven percentage points since April and that the labor market has replaced almost half of the 22 million jobs lost last spring. But even at this rate of progress, Mr Clarida made it clear that it may take another year before the American economy gets back to its previous 2019 peak.
The Federal Reserve’s decision to modify its inflation target policy, where inflation may be allowed to run moderately over two percent and federal funds rates remaining relatively unchanged (0 to .25%) over the next three years, is expected to result in an unemployment rate of four percent and inflation returning to two percent.
Assuming the polls hold and Joe Biden is able to take over the Oval Office on 20 January 2021, a first glance expectation is that Mr Biden will pursue spending bills that, in addition to increases in transfer payments, will increase pools of public capital available for access by private firms or private-public partnerships. Mr Biden’s “Build Back Better” initiative appears, in theory, to call for creating these opportunities.
One potential area for increasing pools of public capital is the financing of energy infrastructure projects. According to language from his campaign platform:
“Biden will immediately invest in engines of sustainable job creation – new industries and re-invigorated regional economies spurred by innovation from our national labs and universities; commercialized into new and better products that can be manufactured and built by American workers; and put together using feedstocks, materials, and parts supplied by small businesses, family farms, and job creators all across our country.”
Mr Biden may not have much re-creating the wheel to do. The United States Department of Energy has a number of financing programs in place that can be used to finance these endeavors. For example, the federal government offers what it calls a “Small Business Toolbox” that helps small businesses, no matter their experience level with government contracting, navigate the requirements for financing.
Mr Biden will have to finance these procurement programs so that these programs can turn around and finance the private companies ready to carry out the federal government’s energy infrastructure agenda. If the Federal Reserve remains on its modified inflation glide path, Mr Biden will have three fiscal years of low interest rates to borrow the funds necessary for his energy infrastructure plans and create the collateral employment of labor that may come along with it.
Mr Biden is likely praying that the “blue wave” narrative, where the Democratic Party sweeps the White House and the Congress, comes to fruition in November. With both chambers of Congress under Democratic control, there may be greater ease at delivering the necessary government financing for his initiatives. If he learned anything from the Obama administration’s first term in office, it is the need to move fast during his first two years to secure the necessary spending bills.
If Mr Biden does not get the “blue wave” then he will have to apply his ‘across the aisle” skills to get Republican senators to buy into his infrastructure plan.
Meanwhile, America is going through a structural employment shift, one that many wage earners will not recover from. Shrinking tax bases due to lower labor force participation and increased tax bills for those who are still working but making less money doth not make a certain second term.
Foreign exchange of interest
As of today, 14 October 2020, the U.S. Dollar can purchase the following:
Ghana: 5.79954 GHS (New Cedi)
Nigeria: 380.013 NGN (Naira)
Sierra Leone: 9,800 SLL (Leone)
The Gambia: 51.5162 GMD (Dalasi)
Angola: 639.128 AOA (Kwanza)
Eastern Caribbean: 2.70 XCD (Eastern Caribbean Dollar)
Century Bancorp announces its earnings …
Source: Century Bancorp.
MEDFORD, Mass.–(BUSINESS WIRE)–Century Bancorp, Inc. (NASDAQ:CNBKA) (www.centurybank.com) (“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, | |||||
| Assets | 2020 | 2019 | ||||
| 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 | ||||
| Loans: | ||||||
| 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 | ||
| Liabilities | ||||||
| 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, | |||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||
| Interest Income: | ||||||||||||
| Loans | $ | 21,431 | $ | 22,117 | $ | 63,478 | $ | 65,106 | ||||
| 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, | |||||||
| Assets | 2020 | 2019 | ||||||
| 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 | ||||
| Liabilities | ||||||||
| 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, | ||||||
| 2020 | 2019 | |||||||
| 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 | % |
Contacts
William P. Hornby, CPA
whornby@centurybank.com
Phone: 781-393-4630
Fax: 781-393-4071
Covid-19 and the need for talent driving executive decisions on work location …
NEW YORK, Oct. 13, 2020 /PRNewswire/ — A new survey of U.S. business executives concludes corporate decision makers find large urban areas less attractive business locations due to the COVID-19 pandemic. Released today at the International Economic Development Council (IEDC) Annual Conference, which is being held virtually from Dallas, the study shows that nearly 50% of the executives surveyed reported that large urban areas – cities with a population of more than 1 million – are less attractive as business locations due to COVID-19. Respondents also reported that their perception of some state’s business climates has deteriorated due to the way some states have handled the pandemic.
Conducted by Development Counsellors International (DCI) every three years, the “Winning Strategies in Economic Development Marketing” survey has tracked trends in economic development since its inception in 1996. In light of COVID-19, this year’s survey also includes findings about how the pandemic affects corporate location decisions and perceptions of U.S. cities and states.
“Now in its ninth iteration, the Winning Strategies survey reveals the changing perceptions of location decision makers, as well as the tools and tactics that help shape those perceptions,” said Julie Curtin, president of DCI’s economic development practice. “The confluence of a global pandemic, a presidential election and intense scrutiny of equity policies is putting a renewed interest on how location decisions are made, so the results from this year’s survey are especially interesting for communities and site selectors alike.”
Key findings from the 2020 survey, which is based on the aggregate responses of 316 corporate executives with site selection responsibilities, include:
- States with the Best Business Climates: Texas ranks No. 1 with 48% of respondents citing the state as having a favorable business climate, followed by Georgia at No. 2 with 25%, North Carolina at No. 3 with 22%, Florida at No. 4 with 18% and Tennessee at No. 5 with 13%.
- States with the Worst Business Climates: California has held the distinction of being the least-favorable state for the past seven editions of the survey, with the percentage rising from 57% in 2017 to 63% this year. New York, Illinois and New Jersey have also been ranked in the top five for the last three editions of the report.
- Corporate executives are closely watching the presidential election and expecting to pivot if needed. A majority of respondents (55%) reported that should President Trump be re-elected, they—or their clients—will be more likely to explore locations in the United States.
- Talent continues to rule the decision-making process. Even as the country has seen unemployment rates skyrocket since the start of the pandemic, skills gaps continue to exist and access to skilled talent remains the top location factor in site selection searches.
- Even amidst the pandemic, companies are moving forward with location decisions. 55% of respondents reported that their company will make a location decision (such as move, expand or consolidate) during the next 24 months—5 percentage points up from 2017.
Best States for Business:
- Texas 48%
- Georgia 25%
- North Carolina 22%
- Florida 18%
- Tennessee 13%
Worst States for Business:
- California 63%
- New York 33%
- Illinois 32%
- New Jersey 14%
- Florida 12%
For a free copy of the full “Winning Strategies” survey report or an executive summary, visit aboutdci.com/thought-leadership/winning-strategies.
About DCI
Development Counsellors International (DCI) is the leader in travel and economic development marketing — increasing visitors and business inquiries for places across the globe. Since 1960, DCI has worked with more than 500 cities, regions, states and countries, helping them attract both investors and visitors. DCI has offices in New York, Denver, Toronto and Los Angeles. For more information, visit aboutdci.com or follow @aboutDCI on Twitter.
SOURCE Development Counsellors International
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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
The COVID/AI Era of Law …
For five months now, the United States has been in lock-up. One of the ugliest hashtags I have seen and heard used is #AloneTogether. At first it reads like an oxymoron. If we are alone, how can we be together. It sounds like the status of the last few years of my first marriage. Sharing space with an energy pulling against you is draining.
The COVID-19 pandemic may be casting a new meaning on that phrase. If you have the misfortune of having to share more time in energy draining space with a spouse that you are considering divorcing, #AloneTogether may be the last rallying cry before calling a divorce attorney.
Technology may also impact how we view the phrase. Zoom calls and TEAMS meetings are a growing part of the workplace lexicon. The spaces that we enjoyed being alone in at home have become offices and digital conference rooms where everything from sales pitches to digital happy hours are taking place.
For the extra sensitive, walking down a sidewalk and observing people take the extra precaution of taking a wider berth around you while hindering their own breathing by wearing a mask can be disconcerting. The slightest attempts at saying “hello” or “good morning” are increasingly avoided because of fear that the slightest exhale from a fellow human may lead to a 14-day quarantine or time in a hospital on a ventilator.
In theory, the state quasi-mandated environment of staying away from each other should result in a reduction in analog contacts as our world goes increasingly digital. Hard for kids to get into school fights when kids are at home distance learning. Tough to get in a shouting match with a restaurant cashier over an order when Uber Eats, Grub Hub, or Door Dash is picking up your food.
There will be controversies; they will continue. We are humans, taking conflict to levels that exceed what other lifeforms endure. Legal philosophy should have us asking “Why are we engaging?” or “What is engagement?”. Society will have to come up with tweaks to the rules for human engagement in a digital age where a corona virus is forcing on a global scale the reconstruction of society. Should judges have to consider new threshold principles before trying to apply statutes, laws, rules, code, from a pre-COVID, non-artificial intelligence world to an issue before them arising out of a digital environment? Will we need a new definition for personal spaces? For zones of danger?
In the area of political law how we structure political engagement and eventually the rules for engagement are already taking on a new twist. For example, the recent squabble in the United States over funding for the U.S. Postal Service appears to be a result of the controversy over the use of mail-in ballots and the possibility of mail fraud. As I ponder these questions, I suspect that new legal principles will appear as COVID-19 continues to change how we address the question of whose rule should prevail during political conflict.
Alton Drew 