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Bank Notes

Adam Rust's picture

Posted January 24, 2011

  • Ohio Valley Bancorp, the FDIC-regulated institution behind Loan Central, had $37 million in advances, promissory notes, and FRB notes from the FRB of Cincinnati on Sept. 30, 2010. In addition, the FHLB has provided them with a $75 million line of credit.  Those advances are secured by about $350,000 in loans. OVBC borrows the money at a weighted-average cost of 3.92

    percent. Ohio Valley earned $655,000 in fee income from its refund anticipation loans during the nine months ending September 30th, 2010.

  • Interesting...The SEC allowed Republic Bank (RBCAA) to not disclose the terms of a court order that the bank received recently. The SEC said that the bank's order was shielded from the Freedom of Information Act. Republic will have to disclose the order in 2015.
  • Republic said that 2010 was a "record year" for its Tax Refund Solutions division. The bank recorded $44.2 million in net income on more than $10 billion in transactions. In all, the bank partnered with tax preparers that sold 2.8 million RACs or RALs. That would mean that the average advance was about $3,500.
  • Republic has a different means of sourcing funds for its RALs.  Republic buys brokered deposits. Tellingly, Republic borrowed less than in 2009. Given that they don't expect to offer RALs in excess of $1,500, they told investors that gross RAL dollar volume may drop by half, even with the lack of competition in the space.