Financial Summary FY2010

TRF closed 90 financing transactions totaling $85.7 million in fiscal 2010. The following are selected financial highlights from the past year.  Click here for a 2010 Audit Report or view a complete listing of TRF’s financing transactions for fiscal 2010.

CAPITAL UNDER MANAGEMENT

Capital under management increased by 21% to $679 million. Components of the growth include a $90 million New Markets Tax Credit allocation from the U.S. Department of Treasury’s CDFI Fund, $31 million in new or expanded core loan fund investments, $20 million in public sector grant funding in support of our energy efforts and $7.5 million in grant funding in support of our charter school program.

LOANS AND LEASES OUTSTANDING

Loans and leases outstanding increased by $8 million (5.5%) to total $151 million in 2010 driven by loan closings of $83.7 million. We had increases in most program areas including supermarkets ($9.6 million), commercial real estate ($2.9 million), and charter schools and other community facilities ($4.2 million). Housing receivables declined by $6.2 million due to reduced origination volume resulting from the challenged residential real estate market. Net loan charge-offs totaled $1.9 million or 1.26% of total loans and leases outstanding, in line with the average for U.S banks. Two-thirds of TRF charge-offs are offset by dedicated grant funds raised for such purposes.

CONSOLIDATED NET ASSETS

Consolidated net assets increased by 10% to $80 million. Growth was fueled by new and expanding public sector grants (Philadelphia Authority for Industrial Development of $6.5 million and CDFI Fund of $2.0 million) as well as a large grant from Chase ($7.5 million) in support of charter school lending. For the year we had an operating surplus of $1.9 million that was offset by a provision for loan losses of $2.1 million. As is typical in multi-year grants where revenue is recognized in the year of the grant award and related expenses are recognized in a subsequent year when disbursed, our net asset growth was partially offset by program-required regranting of $6.8 million for the FFFI and PAID programs.

FINANCIAL REVIEW HIGHLIGHTS

As of June 30 (dollars in thousands)	2010	2009	2008	2007	2006
FINANCIAL POSITION DATA
Total assets	258,075	234,177	194,358	179,886	156,133
Loans and leases receivable	151,211	143,334	113,829	91,646	65,842
Allowance for loan and lease losses	10,492	9,039	5,692	4,580	3,292
Investments in marketable securities	58,855	22,471	33,340	37,319	35,467
Investments in CDARS*	10,149
Program investments	394	326	389	948	1,365
Investments in limited partnerships	1,416	1,806	2,048	2,568	3,176
Private equity investments	5,609	6,940	7,708	11,140	11,179
Loans payable	153,911	149,711	107,363	95,520	67,585
Net assets (excluding SDF)
Unrestricted	9,744	8,289	11,649	9,943	9,860
Temporarily restricted	18,654	25,179	20,551	15,488	18,005
Permanently restricted	40,380	27,771	27,467	22,757	16,748
	68,778	61,239	59,667	48,188	44,613
Sustainable Development Fund (SDF) net assets
Unrestricted - contractually limited as to use	10,251	10,179	10,108	10,777	11,322
Temporarily restricted - contractually limited as to use	1,008	1,130	1,727	4,685	6,254
	11,259	11,309	11,835	15,462	17,576
Total consolidated net assets	80,037	72,548	71,502	63,650	62,189

Years ended June 30 (dollars in thousands)	2010	2009	2008	2007	2006
ACTIVITIES DATA
Net interest income (including loan and lease fees)	5,304	5,957	6,704	6,407	5,169
Provision for loan and lease losses	2,083	3,888	1,217	1,521	948
Asset management fees	1,044	927	873	690	689
Grants and contributions	18,360	11,557	19,057	8,174	27,073
Program services and fees and Other income	5,106	2,479	2,077	2,764	1,443
Change in net assets
Total, excluding The Sustainable Development Fund	7,539	1,572	11,479	3,575	21,238
Sustainable Development Fund	(50)	(526)	(3,628)	(2,114)	(2,518)
Change in consolidated net assets	7,490	1,046	7,851	1,461	18,720
OTHER DATA
Capital under management	678,833	544,928	481,692	402,617	388,737
Allowance for loan and lease losses as a % of total loans and leases	6.9%	6.3%	5.0%	5.0%	5.0%
Net loan loss (recovery) ratio **	1.3%	1.0%	0.6%	0.3%	1.1%
Capital adequacy ratio, excluding SDF ***	28%	28%	33%	29%	32%
Self sufficiency ratio - financing programs excluding SDF****	118%	99%	94%	97%	95%