Greenland Deal

Greenland Corp. announced the signing this week of a ‘Master Distribution Agreement’ with SmartCash ATM, an affiliate of ATM International, Inc., and the receipt of a 1999 purchase order for $9.24 million. The agreement makes SmartCash ATM, LTD., the exclusive distributor for the ‘Check Central Automated Check Cashing ATM’ in the USA and Canada. Under terms of the contract SmartCash ATM is required to order 1,200 Check Cashing ATMs in the year 2000 and 2,000 Check Cashing ATMs in the year 2001 to maintain their exclusivity. SmartCash ATM is a Dallas-based national distributor of ATM machines and a nationally registered ISO for many ATM networks including Plus, Cirrus, American Express, Star and Honor. The firm has installed 2,100 machines in 41 states.


E.ID Multicard

San Jose-based Secure Computing Corporation unveiled the ‘e.iD’ multicard Wednesday. The ‘e.iD multicard’ is the first and only mobile identity device to bring together the technologies for user identification, authentication and authorization, namely. ‘Public Key Infrastructure’ based digital certificates, encrypted secret key based dynamic passwords, and physical identity badging. The ‘e.ID’ multi card, which will begin shipping in the 2nd quarter can also be customized to target business applications such as authorization of financial transactions and system management access.



Capital One Financial Corp. reported this morning its chargeoff rate has declined for sixth consecutive quarters and is now at the lowest in three years.Managed net charge-offs for first quarter 1999 declined to 3.93% compared to 4.51% for the fourth quarter and 6.04% for the first quarter 1998. The managed delinquency rate (30+ days) also decreased, slipping to 4.56% as of Mar. 31 compared with 4.70% as of Dec. 31. During the first quarter of 1999, Cap One added 1.3 million net new accounts, bringing total accounts to 18.0 million. The managed net interest margin increased to a record 10.59% in the first quarter of 1999 versus 9.48% in the fourth quarter of 1998 and 10.40% in the same period of 1998. For the quarter, Capital One’s managed consumer loan balances increased by $49 million to $17.4 billion. For more details on Cap One’s 1Q/99 please visit CardData ( Cap One also announced this morning plans to hire an additional 800 associates in the Dallas/Fort Worth area.


NPC Sells Unit

National Processing Company signed a definitive agreement Wednesday with International Payment Services, Inc. for the sale of NPC Check Services, Inc., a wholly owned subsidiary of NPC and part of NPC’s Merchant Services Division. The transaction is valued at approximately $38 million and is expected to close this quarter. NPC says the sale will allow NPC to focus its efforts on selected business lines, including merchant credit card processing, imaging and travel-related business lines. IPS is a newly formed company by Stephen Kane and GTCR Fund VI, L.P.


Zinn Joins LifeMinders

James M. Zinn has been appointed vice president, finance & administration and chief financial officer of, Inc., the leading provider of free personalized, e-mail reminders, according to Stephen R. Chapin, Jr., the company’s president and CEO.

Mr. Zinn will be responsible for effectively positioning with its members, associates and investors. He will also lead the company’s financial and infrastructure growth.

Until recently, Mr. Zinn served as CFO of Capital One Financial Corporation since 1994. In this position, he was a key member of the executive team that transformed the company from a bank division to a financial services company that was one of the largest providers of MasterCard and Visa credit cards in the world, with a market capitalization of over $8 billion at the time of his departure. Prior to that Mr. Zinn was a partner with Ernst & Young, LLP. He brings 24 years of financial management and accounting experience to

Mr. Zinn is a 1975 graduate of The Ohio State University, where he received a B.S. degree in Business Administration. He is a member of several professional organizations including the American Institute of Certified Public Accountants.

About, Inc.

Founded in 1996,, Inc. delivers 4,000,000 personalized e-mail messages to approximately 1.3 million member profiles every month as of March 31, 1999. These e-mail “minders” provide users with pre-requested information for different aspects of their lives such as home improvement, entertainment, car care, parenting, personal finance management, important dates and pet care. The LifeMinders free, opt-in service enables advertisers to achieve effective and measurable results. Key advertisers include Blockbuster, a unit of Viacom Inc., The Home Depot, Kimberly-Clark, First USA, a subsidiary of Bank One Corp., and Jiffy Lube, a subsidiary of the Pennzoil Company. and the logo are trademarks of, Inc.


Winners Update

Winners Internet Network, Inc. announced the placement of additional key people to facilitate a major direction change.

Mr. Skinner, CEO, stated that the company has successfully completed the first operational 90 days with the full implementation of its processing technology. This was the beginning for its venture into the Internet for long range goals and objectives.

The company undertook a massive effort to be one of the first direct processors of Internet Transactions in world commerce in Europe by providing the catalyst for transactions in all major world currencies.

Mr. Skinner stated that the system has successfully uncovered and tracked users of stolen, lost and false credit cards in different areas of the world in cooperation with Visa and other Card Companies. Processing of the financial transaction is the key according to WINR accomplishing its objectives. The WINR System will protect its vendors from being victimized with false or stolen cards. WINR feels that its initial phases have adequately demonstrated the safeguards it initially represented.

WINR is now announcing the following additions to its capable staff in the USA and Europe. WINR has hired a System Administrator formerly with the USAF with a top-secret clearance who had direct responsibility for satellite communication and mainframe computer systems. He is an expert in systems and control for networking environments, is knowledgeable in four languages and is relocating to Europe this month to become the Systems Director and to implement new changes to facilitate the company’s new goals and objectives.

In addition, WINR has hired a Computer Design and Graphics Manager for Europe who has an extensive background in marketing and design to coordinate the company’s new direction. This staff member will also relocate to the facilities in Europe.

Dr. Reinhard Proksch, a Fulbright Scholar with doctorates in both Information Systems and Law, has also agreed to become an advisor for the Corporate Board of Directors. In addition to being the Managing Director of the CyberLink Trust, Dr. Proksch is a founder of P&A Corporate Services and Mutual Fund Administrators in Europe and has offices in Vienna, London, Zurich and Liechtenstein. Dr. Proksch is an Austrian native who is admitted to practice law in New York, Switzerland and Austria. He is also a registered and licensed Asset Trust Manager. He is supplemented by coordinating the appointment of the CyberLink Marketing Director for International Sales, Ms. Kimberly Stein, to the Board of Directors of Winners and Secretary of the Corporation.

Ms. Stein stated that it is her goal to bring the Shopping Downtown site of CMS into reality with emphasis on the processing coordination and the on-line shopping. She is very aggressive in establishing sites for women. Ms. Stein brings her expertise and has obtained extensive command of the WINR European operations including systems, customer service and processing to enhance the WINR shopping network.

Mr. Skinner said this reorganization of the Board is to provide the expanded vision of the company in the global market. Former Board Members Kristine S. Coalson and Sandra K. Varney, who also served as Vice President/Secretary, have agreed to resign in order to accommodate the new Board. Mr. Skinner thanked them for their dedicated and faithful service. They are vital and well seasoned corporate employees who will be managing the home office administration and customer relations.

Mr. Skinner stated that WINR is targeting on-line trading including all forms of e-commerce. WINR feels that the industry has categorized the company as a Casino. WINR is not a Casino and its emphasis is going to change with the staff the company has put into place. WINR is now moving to become an on-line site provider. Dr. Proksch is going to guide WINR into on-line trading with the financial and trust expertise he possesses and WINR will be shifting to different categories for Entertainment, Shopping and On-Line Trading as well as other areas. Mr. Skinner said, “We feel that in-house processing, which allows customers to feel safe with their credit cards on the Internet will help develop our corporate image. The ability to accept and transfer deposits in most world currencies and the collection and payment procedures offered by the CMS Western Union Quick Cash is a major step towards fulfilling the aforementioned corporate goals.


MBNA Chip Deal

GO-RACHELS.COM, manufacturer of Rachel’s Gourmet Potato Chips and distributor of Y2K and Millennium Chocolate Coins, Wednesday announced an arrangement with MBNA America to offer Rachel’s Gourmet Potato Chips to all the MBNA INDY RACING LEAGUE credit card holders.

MBNA America, with $59.6 billion in managed loans and more than $15 billion in deposits, is the largest independent credit card lender in the world. MBNA also provides consumer financing options and insurance products and offers a variety of superior deposit accounts. MBNA has more than 19,000 people working to provide top-quality Customer service in the United States, the United Kingdom, Ireland, and Canada.

James M. Garlie, Chairman, Pres, & CEO of GO-RACHELS.COM, stated, “As you need a credit card to purchase products through the net, I can’t think of a better way to build our e-commerce business. While other internet companies are spending million’s of dollars on advertising, MBNA is affording GO-RACHELS.COM this opportunity for the mere cost of an insert in a monthly statement. All MBNA is asking for is that their customers purchase Rachel’s Gourmet Potato Chips with their MBNA credit card. This could also lead to other companies wanting to advertise on our web site and is one of several opportunities that has come from sponsoring the PEP BOYS INDY RACING LEAGUE’S 1998 Indy 500 Winner, and two time Disney 200 Winner, Eddie Cheever. Jr. The snack food industry is a 60 billion dollar industry and GO-RACHELS.COM is well positioned for accelerated growth! This truly is a Win, Win situation for everyone involved!”

GO-RACHELS.COM (OTC BB: RACH), is a full service e-commerce company that manufactures, distributes, and markets eight flavors of Rachel’s Gourmet Potato Chips and name brand confectionery products that include Sour Simons, Gummy Guys, and Loonies, Toonies, Y2K and Millennium Chocolate Coins throughout North America and the WorldWideWeb:

GO-RACHELS.COM’S products are marketed by some of the largest retailers and distributors in North America, including: Wal-Mart, Target, Dominick’s, Costco, Loblaw, SYSCO, and U.S. Food Service. GO-RACHELS.COM’S products are also marketed over the World Wide Web using Yahoo (NASDAQ: YHOO) as it’s e-commerce Web Site Host.


Bank One Online Bills

Bank One this morning became the nation’s first company to introduce fully-integrated online bill delivery through Integrion Financial Network. The new bill delivery service from Bank One connects the scalability of the Integrion Interactive Financial Services platform with the network of billers in the CheckFree electronic bill delivery and payment system. The new service will enable Bank One’s 300,000 online customers to both receive and pay bills online through the Bank One website. Initially, 15 companies have agreed to deliver their bills online through CheckFree to Bank One customers. To date, seven are actually listed on the Bank One website: American Electric Power, BellSouth, Boston Edison, Columbia Gas of Ohio, Consumers Energy, HomeSide Lending and MCI WorldCom. E-billing is a free feature of the ‘Bank One Online Bill Payment’ service, which allows consumers to make electronic payments anywhere in the U.S. for $4.95 per month.


FU Data Warehouse

First Union revealed plans Wednesday to triple the capacity of its customer data warehouse to 27 terabytes, a banking industry record, in its quest to deliver customized marketing to its 16 million customers. The amount of disk storage in the data warehouse will be equal to 27 million floppy disks. The data warehouse, an IBM ‘RS/6000 SP’ running on Informix Corp.’s relational database, stores up to 24 months of customer transactions with First Union. The system will Analyze customer behavior, such as how often they contact the company in person, by phone or ATM. Thousands of reports can be customized by users at the corporate level or by state, city, or branch, by customer segment, or product. First Union exited the national credit card business last year to focus on developing deeper customer relationships in its core marketing footprint.



TRM Corporation announced this week that Shami Patel will join the company in the position of Vice President of Finance and Chief Financial Officer.

“The Board of Directors and I are very excited to have Shami join the TRM Team,” said Fred Stockton, TRM’s President and CEO. “His experience in investment banking and his academic background were both great attractions for us. Shami will be involved with assisting the Photocopy and ATM Divisions of TRM Corporation in business development and acquisition work, investor relations, financial structuring and strategic business planning.”

Prior to joining TRM, Patel held a variety of investment banking and consulting positions. Most recently, he was Vice President and Investment Manager for Sirrom Capital Corporation in San Francisco, California, where he was responsible for mezzanine finance investments in the Southern California area. Prior to that, Patel was an Investment Banker with Robertson Stephens & Company, where he executed public and private equity and debt offerings, as well as merger and acquisition transactions. Patel also spent two years as a Senior Consultant with Andersen Consulting. He holds a Master of Business Administration from Fuqua School of Business at Duke University, a Juris Doctor from Duke University School of Law, and a Bachelor of Arts in Economics and Philosophy from Trinity University.

TRM Corporation provides convenience photocopy and convenience ATM services located in retail establishments. A total of 31,000 Copy Centers are installed in the United States, Canada, England, Wales, Scotland and France. TRM’s Copy Centers are located in independent as well as large chain retailers, a sample of which include Eckerd, Marsh, American Drug, Martin Retail, BP Express, Silcorp, and Avondale. Last month, TRM Corporation launched its new ATM Division by installing convenience ATM’s into the fastest growing convenience store chain the Southeastern United States.


US Bancorp Chargeoffs Up

U.S. Bancorp reported Wednesday operating earnings of $368.6 million, or $.51 per diluted share, for the first quarter of 1999, compared with $350.0 million, or $.47 per diluted share, in the first quarter of 1998. Operating earnings on a cash basis increased from $.51 per diluted share in the first quarter of 1998 to $.56 per diluted share, or 9.8 percent, in the first quarter of 1999. Return on average common equity and return on average assets, excluding nonrecurring items, were 24.6 percent and 1.99 percent, respectively, in the first quarter of 1999, compared with returns, excluding nonrecurring items, of 23.5 percent and 2.03 percent in the first quarter of 1998.

Including nonrecurring, merger-related charges of $1.8 million, after-tax, the Company recorded net income for the first quarter of 1999 of $366.8 million, or $.50 per diluted share, compared to $328.5 million, or $.44 per diluted share, in the first quarter of 1998.

U.S. Bancorp’s Chairman, President and Chief Executive Officer, John F. Grundhofer, said, “Our first quarter results reflect both the challenges and opportunities facing our Company in 1999. We experienced the full financial impact of the loss of a portion of the U.S. Government purchasing card business. However, excluding credit cards and acquisitions, we recorded strong fee income growth of over 10 percent from the fourth quarter of 1998 on an annualized basis. We also had acceleration in commercial loan growth and improved retail sales in our Western region, and continued loan growth in our Central region. I am confident that we will see the results of our continued focus on revenue growth throughout the remainder of 1999.”

Earnings in the first quarter of 1999 included after-tax nonrecurring, merger-related charges of $1.8 million associated with the May 1, 1998, acquisition of Piper Jaffray Companies Inc. (“Piper Jaffray”) and several other small acquisitions. Approximately $11 million, after-tax, in additional merger-related charges are expected to be incurred with respect to Piper Jaffray in 1999.

Comparisons to the first quarter of 1998 are affected by the acquisition of Piper Jaffray. Net interest income on a taxable-equivalent basis in the first quarter of 1999 was higher by $25.4 million, or 3.3 percent, than the first quarter of 1998. Noninterest income, before nonrecurring items, increased by $180.4 million, or 40.5 percent, from the first quarter of 1998, primarily reflecting the acquisition of Piper Jaffray, growth in trust and investment management fees and deposit service charges, offset by the loss of a portion of the U.S. Government purchasing card business. Noninterest expense, before nonrecurring items, was higher than the first quarter of 1998 by $156.8 million, or 28.0 percent, principally due to the acquisition of Piper Jaffray. The banking efficiency ratio (the ratio of expenses to revenues without the impact of investment banking and brokerage activity), before nonrecurring items, for the first quarter of 1999 was 43.3 percent, compared to 45.2 percent in the first quarter of 1998.

Net charge-offs in the first quarter of 1999 were $139.6 million, higher than the fourth quarter of 1998 net charge-offs of $118.2 million and the first quarter of 1998 net charge-offs of $103.2 million. The increase in net charge-offs from the first quarter of 1998 was primarily the result of one large commercial credit, an expected increase in losses on several consumer loan portfolios purchased in 1998 and higher consumer fraud losses. Net charge-offs were .96 percent of average loans in the first quarter of 1999, compared to .81 percent in the fourth quarter of 1998 and .77 percent in the first quarter of last year. Nonperforming assets increased from $304.3 million at December 31, 1998, to $325.8 million at March 31, 1999, as a result of the commercial credit referred to above. The ratio of allowance for credit losses to nonperforming loans continued to indicate strong reserve coverage of 324 percent at March 31, 1999.

On February 18, 1999, the Company announced an agreement to acquire San Diego-based Bank of Commerce (Nasdaq: BCOM), one of the nation’s largest Small Business Association (SBA) lenders. With $638 million in assets at year-end 1998, Bank of Commerce operates 10 full service branches in San Diego and Orange counties, as well as 23 SBA loan production offices in California and 11 other states. Pending regulatory approvals, the acquisition is expected to close at the end of the second quarter of 1999.




Seitz Joins Cross Country

Cross Country Bank has announced the appointment of Paul C. Seitz, CPA, CVA as Senior Vice President and Special Assistant to the Chairman.

Seitz will be responsible for overseeing various operational aspects of the bank including managing the relationships with investment banking firms. He’s also responsible for a variety of administrative functions such as political and community relations.

“The growth of the bank prompted Cross Country Bank to expand its management team. We’re extremely excited to have Paul join Cross Country Bank,” said Rocco A. Abessinio, founder and President of Cross Country Bank. “Paul’s proven management expertise will be a real asset to the continued growth and profitability of Cross Country Bank,” adds Abessinio.

Prior to joining Cross Country Bank, Seitz held management positions with two international accounting firms, Price Waterhouse, where he was the managing partner of the Wilmington office, and Deloitte & Touche LLP. While at those firms, Seitz provided extensive expertise to a wide range of issues for clients in the financial services industry.

Seitz, a Certified Public Accountant in Delaware and Pennsylvania, holds a Bachelor of Science degree in Accounting from the University of Delaware, which awarded him the College of Business and Economics Alumni Award of Excellence. Seitz produced and hosted “Tax Tips” on WNS-TV (Channel 2, Wilmington) for several years.

Seitz serves as a board member of the United Way of Delaware and is a member of its Finance Committee. He is also a past treasurer of the United Way of Delaware. Seitz serves as a board member of the Associated United Ways of the Delaware Valley and serves on its executive committee. Seitz is a past president and vice president of the University of Delaware Alumni Association which also honored him with its Outstanding Alumnus Award. The immediate past chairman of the Delaware State Board of Accountancy, Seitz remains an active board member. In addition, Seitz serves on a committee for the National Association of State Boards of Accountancy.

Seitz resides in Wilmington with his wife and two children.

Cross Country Bank, founded by Delaware native Rocco A. Abessinio in July 1996, provides non-traditional VISA and MasterCard products. Rated as one of the fastest growing credit card banks in the country, Cross Country Bank now serves over two million cardholders. Cross Country Bank is headquartered in Wilmington, Delaware.