Financial Summary CY2010

TRF closed 25 financing transactions totaling $47.8 million in calendar 2010 (7/1/2010 through 12/31/2010). The following are selected financial highlights from the past year.  Click here for a CY2010 Audit Report or view a complete listing of TRF’s financing transactions for calendar 2010.

CAPITAL UNDER MANAGEMENT

Capital under management decreased by $10.6 million due primarily to planned reductions in a GSE credit facility and large loan participation facility partially offset by addition of new energy capital totaling $12 million from the Pennsylvania Department of Environmental Protection and a grant award of $750 thousand from the CDFI Fund.

LOANS AND LEASES OUTSTANDING

Loans and leases outstanding increased by $2.9 million in the six months ended December 31, 2010, with growth due to new loan closings partially offset by loan repayments and net charge offs. Net charge offs totaled $1.8 million, or 1.16% of total loans and leases outstanding, in line with the average for U.S. banks.

CONSOLIDATED NET ASSETS

Consolidated net assets increased by $21.9 million to $101.9 million. Significant activity impacting net assets included an operating surplus of $501 thousand, a large energy grant from the Pennsylvania Department of Environmental Protection in support of our energy program ($12 million) and a grant from the CDFI Fund ($750 thousand) in support of TRF's financing activities. New accounting disclosures requiring the inclusion of noncontrolling interests in consolidated subsidiaries as part of unrestricted net assets added $8 million.

FINANCIAL REVIEW HIGHLIGHTS

	Six months ended December 31	As of June 30
(dollars in thousands)	2010	2010	2009	2008	2007
FINANCIAL POSITION DATA
Total assets	265,228	258,075	234,177	194,358	179,886
Loans and leases receivable	154,113	151,211	143,334	113,829	91,646
Allowance for loan and lease losses	10,027	10,492	9,039	5,692	4,580
Investments in marketable securities	56,192	69,004	22,471	33,340	37,319
Investments in limited partnerships & program investments	1,592	1,810	2,132	2,437	3,516
Private equity investments	2,836	5,609	6,940	7,708	11,140
Real estate held for development or sale	19,659	19,659	5,546	6,779	1,557
Loans payable	157,998	153,911	149,711	107,363	95,520
Net assets (excluding SDF)
Unrestricted*	18,316	9,744	8,289	11,649	9,943
Temporarily restricted	19,669	18,654	25,179	20,551	15,488
Permanently restricted	63,868	40,380	27,771	27,467	22,757
	101,853	68,778	61,239	59,667	48,188
Sustainable Development Fund (SDF) net assets
Unrestricted - contractually limited as to use	10,241	10,251	10,179	10,108	10,777
Temporarily restricted - contractually limited as to use	963	1,008	1,130	1,727	4,685
	11,204	11,259	11,309	11,835	15,462
Total consolidated net assets	101,946	80,037	72,548	71,502	63,650

	Six months ended December 31	Years ended June 30
(dollars in thousands)	2010	2010	2009	2008	2007
ACTIVITIES DATA
Net interest income (including loan and lease fees)	2,431	5,304	5,957	6,704	6,407
Provision for loan and lease losses	830	2,083	3,888	1,217	1,521
Asset management fees	585	1,044	927	873	690
Grants and contributions	16,061	18,360	11,557	19,057	8,174
Program services and fees and Other income	3,458	5,106	2,479	2,077	2,764
Change in net assets
Total, excluding The Sustainable Development Fund	16,720	7,539	1,572	11,479	3,575
Sustainable Development Fund	(55)	(50)	(526)	(3,628)	(2,114)
Change in consolidated net assets	16,665	7,490	1,046	7,851	1,461
OTHER DATA
Capital under management	668,218	678,833	544,928	481,692	402,617
Allowance for loan and lease losses as a % of total loans and leases	6.51%	6.90%	6.30%	5.00%	5.00%
Net loan loss (recovery) ratio **	1.2%	1.3%	1.0%	0.6%	0.3%
Capital adequacy ratio, excluding SDF ***	33%	28%	28%	33%	29%
Self sufficiency ratio - financing programs excluding SDF****	106%	118%	99%	94%	97%

* Unrestricted net assets include non-controlling interest in consolidated subsidiaries effective December 31, 2010.
** Includes charge-offs supported by dedicated grant funds - FY10 $1,270k; FY2009 $930k; FY2008 $547k.
*** Capital adequacy ratio is calculated as net assets as a percentage of total assets.
**** Self sufficiency ratio is calculated as the sum of net interest income, loan fees, asset management fees, and grant revenue
designated for lending as a percentage of financing programs and related management and general expenses.