2018 Monitor 100 Issue, Vol

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2018 MONITOR 100

Equipment Investment Trends . . . . . 34

Business Fixed Investment Data . . . . 35

Mergers & Acquisitions ...... 36

Executive Changes ...... 38

Arrivals & Departures ...... 39 .

Monitor 100 Ranking ...... 40

Top 10 Market Share & Monitor 100 Historic Net Assets . . . . 44

Segment Analysis (Assets) ...... 45

Captive Assets ...... 46

Foreign Assets ...... 47

Volume 100 Ranking ...... 48

Segment Analysis (Volume) ...... 52

Origination Source Mix & 10-Year Volume Trend ...... 53 Captive Originations 2018 MONITOR 100 & Foreign Activity Trends ...... 54 Foreign Originations ...... 55 NBV Rebounds — Up 8.9% Y/Y Sell Side ...... 56 The Monitor 100 companies bounced back from last year’s new business volume setback, achieving $196.7 billion in originations, an aggregate increase of 8.9% on Buy Side ...... 57 a year-over-year basis — a vast improvement from last year’s 0.5% decline. The Greatest Concerns & group reported annual portfolio growth of 5.2%, with $497.5 billion in net assets, Year/Year Highlights & Forecasts . . . 58 in-line with last year’s anticipated increase of 4.8%.

Staffing Highlights ...... 59 Banc of America Leasing retained its No. 1 title and increased its lead to boot. Last year, No. 2-ranked Wells Fargo Equipment Finance trailed by only $820.7 2018 MONITOR 100 million, but the gap has widened to $2.7 billion. Meanwhile, the race between the Alphabetical Index ...... 60 top two banks in equipment finance heated up in the volume ranking. Although Definitions, Explanations Banc of America’s $15.8 billion in originations were enough to keep its No. 1 & Footnotes ...... 62 crown, Wells Fargo is on its heels with $15 billion in new business volume.

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OVERVIEW — THE 2018 MONITOR 100

he 27th annual Monitor 100 companies reported ered by Key Equipment Finance ($1.8 billion or $497.5 billion in net assets, $196.7 billion in 6.1%), Dell Financial ($1.7 billion or 5.7%), Volvo T new business volume and 31,098 staff members. Financial Services ($1.5 billion or 5.1%) and John The group achieved a $24.4 billion, or 5.2%, year- Deere Financial ($1.5 billion or 5%). over-year increase in net assets, with 83 companies When it came to volume, 67 companies posted posting net increases totaling $29.8 billion and 17 a net increase of $20.5 billion while 33 reported net companies tallying a collective decline of $5.4 billion. declines of $4.4 billion, resulting in a $16.1 billion, or SMBC Leasing and Finance contributed 12.3% of 8.9% aggregate year-over-year increase. Once again, the total increase, or $3.6 billion, thanks to portfolio SMBC contributed a large chunk ($4.7 billion or 23%) purchases, including its acquisition of American of the net increase. Other noteworthy contributors Railcar Leasing for $2.78 billion. PNC Equipment to the increase in originations included Key ($1.8 Finance contributed $2.1 billion, or 7% of the total billion or 8.9%), Dell ($1.8 billion or 8.7%), IBM increase, after acquiring the vendor finance assets Global Financing ($1.6 billion or 7.7%) and PNC of ECN Capital. Other notable increases were deliv- ($1.5 billion or 7.1%) Equipment Investment 2017 NET ASSETS Six-Year Trend by Quarter, Seasonally Adjusted at Annual Rates ($ = billions) were $497.5B, an INCREASE of $400 +5.2% $385.9 360

320

$293.7 Software $203.3 2017 ORIGINATIONS 280 Computers & Peripherals $179.8 were $196.7B, an Medical $167.8 INCREASE of Trucks, Trailers & Buses 160 Construction Machinery

Agricultural Machinery +8.9% Aircraft 120

$101.3 $96.1 $78.8 $87.0 80 $74.9 $71.4 $51.0 40 $36.1 $32.2 $35.1 $24.3

0 Q1/13 Q1/14 Q1/15 Q1/16 Q1/17 Q1/18

Data Source: Department of Commerce, Bureau of Economic Analysis, Table 5.5.5U (Last Revised 5/30/18)

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BUSINESS FIXED INVESTMENT instruments (10.9%). Software investment of $385.9 Data from the Department of Commerce Bureau of billion in Q1/18 was up 6.3% on an annualized basis Economic Analysis showed Q1/18 business fixed from $363.2 billion in Q1/17. Investment in industrial investment was up 8.7% on a year-over-year basis with equipment experienced 9% annualized growth, with all but one of the selected equipment types reporting $208.5 billion reported in Q1/18, an increase of $17.2 annualized growth. Information processing equipment billion from $191.3 billion in Q1/17. In the industrial grew 10.5% on an annualized basis, with $343.4 billion category, metalworking machinery experienced the reported in Q1/18, up from $310.8 billion in Q1/17. Of largest increase (16.7%) followed by general industrial the group, computers and peripheral equipment had including materials handling (9.4%) and fabricated metal the largest increase (19.5%) followed by nonmedical products (8.1%). Transportation equipment investment instruments (12.8%) and medical equipment and experienced annualized growth of 11.4%, with $259 Business Fixed Investment By Quarter, Seasonally Adjusted at Annual Rates ($ = billions)

YR/YR SELECTED EQUIPMENT TYPES Q1/18 Q4/17 Q1/17 % +/– VAR +/– LARGEST INFORMATION PROCESSING EQUIPMENT INCREASES IN Communication equipment 104.9 106.5 101.3 3.5 3.5% Computers and peripheral equipment 87.0 79.2 72.8 14.2 19.5% EQUIPMENT TYPES ($ = billions) Medical equipment and instruments 96.1 95.1 86.7 9.4 10.9% Nonmedical instruments 42.7 41.7 37.8 4.9 12.8% Trucks, buses & truck trailers Photocopy and related equipment 8.4 8.2 8.0 0.4 5.3% +$23.5 Office and accounting equipment 4.4 4.0 4.3 0.1 2.7% Software (not embedded) 343.4 334.7 310.8 32.6 10.5% +$22.7 SOFTWARE Computers & peripheral equip Software (not embedded) 385.9 373.2 363.2 22.7 6.3% +$14.2 INDUSTRIAL EQUIPMENT Medical equip & instruments General industrial, including mats handling, equip 95.6 92.7 87.3 8.2 9.4% +9.4 Special industry machinery, n.e.c. 42.0 43.9 41.2 0.8 1.8% Agricultural machinery Metalworking machinery 42.6 40.3 36.5 6.1 16.7% +$8.5 Fabricated metal products 28.3 27.4 26.2 2.1 8.1%

208.5 204.2 191.3 17.2 9.0% Railroad equipment TRANSPORTATION EQUIPMENT +26.2%

Trucks, buses and truck trailers 203.3 198.9 179.8 23.5 13.1% Construction machinery Aircraft 35.1 35.4 34.2 0.9 2.6% +21.5%

Railroad equipment 13.9 12.4 11.0 2.9 26.2% Agricultural machinery Ships and boats 6.8 7.3 7.5 -0.7 -9.0% +20.1%

259.0 254.1 232.4 26.6 11.4% Computers & peripheral equip OTHER EQUIPMENT +19.5% Construction machinery 36.1 34.4 29.7 6.4 21.5% Metalworking machinery Agricultural machinery 51.0 51.1 42.5 8.5 20.1% +16.7% Mining and oilfield machinery 13.3 14.8 12.3 1.1 8.8% 100.5 100.4 84.5 16.0 18.9% SELECTED EQUIPMENT TYPES (Shown) 1,297.2 1,266.5 1,182.2 115.0 9.7% Not Shown 247.5 249.2 238.6 8.9 3.7%

ALL NONRESIDENTIAL EQUIP & SOFTWARE 1,544.7 1,515.7 1,420.8 123.9 8.7%

Data Source: Department of Commerce, Bureau of Economic Analysis, Table 5.5.5U (Last Revised 5/30/18) Numbers may not add due to rounding

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2017 Mergers & Acquisitions CLOSED IN 2017 (alphabetical by buyer) BUYER ACQUIRED NOTES Accord Financial 1 CapX Partners Deal Value: $9MM Avolon Holdings 2 CIT Commercial Aircraft Leasing Value @ $10.4B Canon 3 Toshiba Medical Finance DND Commercial Credit Group 4 Manufacturers Capital Machine Tool Fin DND Commercial Credit Group 5 Transfac Capital DND Crestmark 6 Allstate Capital DND Dubai Capital 7 AWAS DND ECN Capital 8 Service Finance Holdings Deal Value: $304MM Electro Rent 9 Microlease (London) DND Global Capital 10 SLM Enterprises DND $1.1B Great Western Leasing 11 Quality Trailer Sales DND The total amount of net investment J.P. Morgan Asset Management 12 Beacon Rail Leasing Value @ $1.05B in construction, transportation, 13 industrial, franchise and technology- KeyBanc Capital Markets Cain Brothers DND related loans and leases from the Konecranes 14 Terex Material Handling Value @ $1.3B acquisition of ECN Capital’s U.S. Laurentian Bank of Canada 15 Northpoint Commercial Finance DND C&V business by PNC Equipment Marlin Business Services 16 Horizon Keystone Financial DND Finance in 2017, which enabled 17 PNC’s rise to No. 9 in the rankings. Maxim Crane Works Coast Crane DND Napier Park Global Capital US 18 ECN Capital's Element Rail Leasing II DND People's United Bank 19 LEAF Commercial Capital DND PNC Financial (PNC/EF) 20 ECN Capital Equipment Finance Value @ $1.25B Providence Capital Funding 21 All Media Capital DND Ritchie Bros 22 IronPlanet Deal Value: $758.5MM SMBC 23 American Railcar Leasing DND Solar Capital 24 Nations Equipment Finance Deal Value: $210MM SQN Latina 25 KMEX Leasing DND State Bank Financial 26 AloStar Bank of Commerce Deal Value Est: $196MM Stellwagen Group 27 ECN Capital's Commercial Aviation DND Stonebriar 28 NonBankLender DND TIAA 29 EverBank Financial DND Tokyo Century 30 CIT TC-CIT Aviation (JV) DND $10.2B Toromont Industries 31 Hewitt Equipment Deal Value: $815.6MM The combined equipment finance United Leasing & Finance 32 Access Commercial Capital DND and leasing assets which will United Rentals 33 Neff Corporation Deal Value: $1.3B result from the acquisition of MB Financial by Fifth Third Bank in United Rentals 34 Cummins Rental Assets DND a transaction expected to close Westlake Financial 35 CU Leasing of America DND in 2018. DND = Details not disclosed FOOTNOTES: 1 CapX will serve clients through newly incorporated Accord CapX 18 Closes Element Rail Leasing II 2 CIT exits commercial aircraft leasing business 19 Brings People’s Total EF assets to approx $4B 3 Toshiba becomes Canon subsidiary 20 $1.1B portfolio (C/E, trans, industrial, franchise & IT) 4 Expands machine tool & manufacturing presence 21 Expands media, cinema & film production presence 5 Transfac A/R finance provider 22 Creates marketplace E Brand offering 6 Adds to leasing division; Pompano Beach, FL office 23 Creates lessor with 50,000 railcar fleet 7 Fleet size 400 aircraft ($14B); 117 airlines/57 countries 24 Adds equipment financing to cash flow, ABL & life sciences 8 Vendor driven home improvement financing 25 SQN can now finance U.S. subsidiaries in Mexico 9 Electro Rent is Platinum Equity portfolio company 26 Adds lender finance & scalable ABL platform 10 Facilitates veteran owned business equip financing 27 Manages $1.26B of aviation assets 11 Trailer dealership; Distributes for Heil & Doonan 28 RE related SBA 504 debenture guarantee program 12 Beacon Rail acquired Ascendos Rail Leasing in June 2016 29 TIAA adds $27.8B in total assets 13 Expands KeyBanc value proposition to healthcare services 30 Sells 30% stake in JV with Tokyo Century 14 Terex to retain 25% Konecranes share 31 Acquires Canada-based Caterpillar equipment and lift truck dealer 15 Includes $880MM inventory finance portfolio 32 Expects annual NBV of $100MM 16 First Marlin acquisition; Extends business to new markets 33 Beats H&E offer, pays premium + $13.2MM termination fee 17 Indirect sub of Essex Rental based in Seattle 34 Acquires Portable Power Assets; expands fleet 35 Adds $1.5B in managed assets 36 • monitor • 2018 MONITOR 100

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2018 Mergers & Acquisitions

ANNOUNCED/EXPECTED TO CLOSE IN 2018 (alphabetical by buyer) BUYER ACQUIRED NOTES ABLE Equipment Rental 1 Key Equipment DND AeroCentury 2 JetFleet Holding (JHC) DND Banco Popular 3 Wells Fargo Auto Finance in PR Deal Value: $1.7B CNH Finance 4 Triumph Healthcare Finance DND CWB Financial Group 5 ECN Capital DND Fifth Third 6 MB Financial Deal Value: $4.7B H&E Equipment Services 7 Contractors Equip Center DND H&E Equipment Services 8 Rental, Inc. Deal Value: $68.6MM Hercules Capital 9 Gibraltar Business Capital DND Meta Financial Group 10 Crestmark DND Penske Truck Leasing 11 Old Dominion Truck Leasing DND Seaspan 12 Greater China Intermodal (GCI) Deal Value: $1.6B Sterling Bancorp 13 Advantage Funding DND United Community Banks 14 NLFC/Navitas Credit Deal Value: $130MM United Rentals 15 Industrial Rental Services Fleet DND Veritas Capital 16 GE Healthcare's Care Division Deal Value: $1.05B VTG Aktiengesellschaft 17 CIT Rail Leasing Business Deal Value: In Excess of $1B White Oak Global Advisors 18 Federal National Commercial DND

DND = Details not disclosed FOOTNOTES: 1 Will operate as ABLE’s newest branch in PA 10 Provides Meta with national C&I lending platform 2 JHC is the parent of JetFleet Management 11 Adds 360 customers; 11 locations, 5 states 3 Includes $1.5B retail auto; $340MM commercial 12 GCI fleet consists of 18 modern container ships 4 Expands healthcare lending across the U.S. 13 Macquarie unit brings $458MM loans & leases to 5 Adds $850MM in acquired loans/leases Sterling’s Equipment Finance platform 6 Combined EF assets of $10.2B; Mon 100 ranking No.17 14 Brings $350MM loan/lease assets 7 Construction equipment rental company 15 Acquired assets from JMH Capital 8 Consruction-focused equipment rental in AL & FL 16 Deal expected to close in Q3/18 9 Seller brings ABL to SMEs 17 Encompasses NACCO, CIT’s European Rail Leasing business 18 Government A/R financing, factoring & ABL to SMEs

billion invested in Q1/18, up $26.6 billion from $232.4 construction machinery (21.5%), agricultural machinery billion in Q1/17. In the transportation category, railroad (20.1%), computers and peripheral equipment (19.5%) equipment posted the largest gain (26.2%) followed by and metalworking machinery (16.7%). trucks and buses (13.1%) and aircraft (2.6%). Other equipment, including construction, agricultural and ECONOMIC OUTLOOK mining and oilfield equipment types, experienced Wells Fargo Securities’ Economics Group painted a 18.9% annualized growth, with $100.5 billion in net rosy portrait of the U.S. economy in its monthly outlook investment recorded in Q1/18, an increase of $16 billion report for June, as expectations for growth increased from $84.5 billion in Q1/17. Construction equipment considerably in light of accounts indicating positive was up 21.5%, agricultural equipment increased by developments in international trade and consumer 20.1% and mining and oilfield machinery experienced spending. According to the report, U.S. employers added a gain of 8.8%. 223,000 jobs in May, bringing the unemployment rate The 18 sectors depicted in the chart show total down to 3.8%. The report anticipated a rise in real investment of $1,297.2 billion, up 9.7% from $1,182.2 GDP to an annual rate of 4.2% in Q2/18 and 3% for billion in Q1/17. All but one of the sectors reported full-year 2018. An increase in domestic output caused a net increase, resulting in a collective annualized employment gains in the manufacturing, construction growth trend of $115 billion, more than triple last and mining industries. According to the report, concerns year’s $29.9 billion growth trend. Ships and boats was that the Federal Reserve may tighten monetary policy the only sector to experience a net decline, with total were characterized as “premature” as wage growth investment dropping 9% to $6.8 billion, down from has been moderate and productivity has increased. $7.5 billion in Q1/17. Railroad equipment posted the The Federal Reserve’s Beige Book for May 30, 2018 highest percentage gain overall (26.2%) followed by reflected moderate expansion of economic activity in

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Executive Changes (alphabetical by company)

MONITOR 100 COMPANY 2017 RANK NEW LEADERSHIP FORMERLY Bank of the West 30 Tristan Watkins John Evans BB&T Commercial Equip Capital 54 Joseph Thompson Robert Boyer CBI Equipment Finance 53 Dwight Erdbruegger Roger May Crestmark Equipment Finance 80 Thomas Rutherford Scott Grady EverBank Commercial Finance 36 John Pataky Gregory Vieceli Fifth Third Equipment Finance 20 Ernie Tsorvas Tom Partridge $2,731MM First Hawaiian Leasing 92 Darlene Blakeney Brent Helgeson The magnitude of the net asset Forsythe/McArthur Associates 93 Joe Mertens William Brennan difference between No. 1-ranked Stearns Bank 50 Kelly Skalicky Diane Notch Banc of America Leasing and Webster Capital Finance 68 Mike Giusto Samuel Hanna No. 2-ranked Wells Fargo Equipment Finance in the 2018 Monitor 100.

April and May. More than half the districts reported a nice boost in the rankings, landing it at No. 80 an increase in industrial manufacturing activity. Areas with $306 million in net assets, up 47.1% from $208 of strength included fabricated metals, heavy industry million reported last year when it ranked No. 92. machinery and electronics equipment. Increasing United Leasing & Finance closed its acquisition of production of goods also led to an upsurge in demand for Access Commercial Capital in 2017, which helped transportation. Despite concern regarding international it ascend to No. 73 in the rankings with a portfolio trade policy, overall near-term growth outlooks were of $362 million, up 25.3% from $289 million in 2016. positive. Staffing shortages were reported in several Marlin Business Services closed its acquisition of specialized fields including truck drivers, sales people, Horizon Keystone Financial, expanding its existing carpenters, electricians, painters and IT professionals. equipment finance business into new markets and New orders for manufactured durable goods in April increasing its rank to No. 58 with $914.4 million in decreased $4.2 billion (1.7%) to $248.5 billion, according assets, up 14.8% from $796.7 million in 2016. to the U.S. Census Bureau. This decrease followed two Other notable transactions closed in 2017 consecutive monthly increases, including a 2.7% rise in include Peoples United Bank’s acquisition of March. Excluding transportation, new orders increased LEAF Commercial Capital. Although LEAF is still 0.9%. Omitting defense, new orders decreased 1.9%. reporting separately, the former Independent is now Transportation equipment, also down following two classified as a U.S. Bank Affiliate. Private equity group $24.4B consecutive monthly increases, drove the decrease, Solar Capital’s acquisition of Nations Equipment The magnitude of the net increase $5.6 billion, or 6.1%, to $87.1 billion. Shipments of Finance took another Independent out of the mix in total assets reported by Monitor manufactured durable goods in April, down following entirely. TIAA’s acquisition of EverBank Financial 100 participants. eight consecutive monthly increases, decreased $0.1 closed in 2017 as well, adding $27.8 billion in total billion, or 0.1%, to $246.7 billion. This followed a 0.7% assets to TIAA’s portfolio. Stonebriar Commercial March increase. Transportation equipment, down Finance also continued its growth trajectory with its following three consecutive monthly increases, drove acquisition of NonBankLender, which sources and the decrease, $1.8 billion, or 2.1%, to $82.8 billion. aggregates owner-occupied real estate loans, most of which are supported by the U.S. Small Business MERGERS & ACQUISITIONS Administration 504 Debenture Guarantee Program. The M&A market continued at a brisk pace in 2017. This year, several acquisitions will prove to shake PNC’s acquisition of ECN Capital’s vendor finance things up for next year’s Monitor 100. Fifth Third, business made the largest impact on the rankings, currently ranked No. 20 has agreed to acquire MB helping PNC overtake DLL USA as No. 9, with Financial, whose MB Equipment Finance compo- net assets of $15.4 billion. SMBC’s acquisition of nent is currently ranked No. 35 with $2.9 billion in American Railcar Leasing elevated the company net assets. After this transaction closes, Fifth Third to No. 17, up from No. 22 last year, with a reported will have an estimated equipment-related portfolio $9.6 billion portfolio. SMBC now owns a railcar fleet of $10.2 billion and an estimated Monitor 100 rank of more than 50,000 units. Crestmark’s acquisi- of No. 17. Sterling National Bank, ranked No. 63, tion of Allstate Capital broadened the independent completed its acquisition of Independent Advantage leasing company’s market share and provided it with Funding, adding $458 million in loans and leases to

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Arrivals & Departures Listed by Asset Size ($ = millions)

RANK ARRIVALS ASSETS RANK DEPARTURES ASSETS ‘17 COMPANY 2017 ‘16 COMPANY 2016 72 FNB Equipment Finance 439.0 59 First-Citizens Bank & Trust Leasing 814.3 95 Onset Financial 159.7 68 Scottrade Bank Equip Finance 516.0 96 Beneficial Equipment Finance 141.2 75 Nations Equipment Finance 334.5 97 VAR Technology Finance 137.7 95 Washington Fed Equip Finance 186.4 98 GSG Financial 131.7 100 Celtic Bank Leasing and Equip Fin 25.8 TOTAL (5 New Companies) 1,009.3 TOTAL (5 Departing Companies) 1,877.0 $8,440B The aggregate year-over-year portfolio growth reported by the 57 U.S. Bank affiliates that made the final cut for 2017 — its equipment finance platform, which would catapult ARRIVALS & DEPARTURES gainers outnumbered decliners Sterling above the $1 billion mark in next year’s Five new companies join the ranking this year. by a ratio of 4.4 to one. ranking. Crestmark Equipment Finance, currently Pittston, PA-based F.N.B Equipment Finance enters ranked No. 80, will merge with Meta Financial the fray at No. 72 on the power of $439 million in net Group, with the combined company having a total assets (see related profile of Gary Cook on page 66). of $6.4 billion in assets and $2.2 billion in loans and Onset Financial, based in South Jordan, UT and led leases, although the percentage of equipment-related by Justin Nielsen, joins the ranking at No. 95 with assets is uncertain. One more Independent will $159.7 million in assets. Chester Springs, PA-based become a U.S. Bank Affiliate in 2018, No. 71-ranked Beneficial Equipment Finance, led by Joseph Navitas Credit was acquired by United Community Pucci, makes its debut appearance on the coveted Banks in Q1/18. AeroCentury’s acquisition of list, coming in at No. 96 with assets of $141.2 million. JetFleet Holding will undoubtedly add some bulk to Mesquite, TX-based VAR Technology Finance and the Independent aircraft lessor. New York City-based GSG Financial, which have appeared in Monitor’s Top Private Independents LEADERSHIP CHANGES ranking for the last two years, join the big players Top leadership received an overhaul at 10 compa- for the first time at No. 97 and No. 98, respectively. nies in 2017. Ernie Tsorvas was promoted to head VAR, led by Gary Sutton, reported $137.7 million in of Fifth Third Equipment Finance, reporting to net assets while GSG, led by Andrew Bender, had former leader, Tom Partridge, who switched to lead assets of $131.7 million. Commercial Specialty Products. Tristan Watkins There’s only so much room at the top, which now leads Bank of the West, replacing John Evans means we also have to say goodbye to five compa- 33% who led the Equipment Finance division since 2013. nies this year. Raleigh, NC-based First-Citizens The largest year-over-year EverBank Commercial Finance replaced Gregory Bank & Trust Leasing, which ranked No. 59 last percentage growth reported by a Captive was Dell Financials’. Vieceli with John Pataky. Stearns Bank promoted year with $814.3 million in net assets, decided to Dell noted its year-end portfolio Kelly Skalicky, who previously served as general opt out of this year’s survey. After being acquired by of $6,864.6 million was up counsel, to president, replacing Diane Notch (see TD Ameritrade, St. Louis-based Scottrade Bank $1,703 million or 33% from related profile on page 68). Dwight Erdbruegger Equipment Finance, which came in at No. 68 last $5,161.6 million a year earlier. now leads CBI Equipment Finance, succeeding year with $516 million in assets, seems to have Roger May. BB&T Commercial Equipment vanished off the face of earth, with its primary team — Capital, formerly known as Susquehanna led by Fredrick VanEtten — joining Midland States Commercial Finance, named Joseph Thompson Bancorp. Norwalk, CT-based Nations Equipment CEO replacing President Robert Boyer who previ- Finance, which was acquired by private equity group ously led Susquehanna. Mike Giusto now leads Solar Capital in Q3/17, also opted out of the survey Webster Capital Finance after Samuel Hanna was after ranking No. 75 with $334.5 million in assets last promoted to lead Middle Market Banking at Webster. year. Scottsdale, AZ-based Washington Federal, Thomas Rutherford was appointed division presi- which ranked No. 95 with $186.4 million in assets last dent of Crestmark Equipment Finance, succeeding year, also opted out of the survey after reorganization Scott Grady. Darlene Blakeney was promoted to lumped the company’s stats in with those of its bank president and SVP of Corporate Banking for First parent. Finally, despite an impressive year-over-year Hawaiian, replacing Brent Helgeson. Joe Mertens net asset increase of 68.5%, Salt Lake City-based is president and CEO of Sirius Computer Solutions, Celtic Bank, ranked No. 100 last year, did not make which acquired Forsythe/McArthur Associates. the cut this year with $43.5 million in assets.

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Monitor 100 The 100 Largest Equipment Finance/Leasing Companies in the U.S. ($ = millions)

RANK NET ASSETS ‘17 ‘16 COMPANY SEG 2017 2016 VARIANCE +/- % +/- TOP 5: 1 1 Banc of America Leasing USB 51,651.8 50,475.7 1,176.1 2.3% 2 2 Wells Fargo Equipment Finance USB 48,921.0 49,655.0 -734.0 -1.5% ASSETS 3 3 John Deere Financial 1 CAP 37,248.7 35,766.0 1,482.7 4.1% Based on Net Assets ($ = billions) 4 4 Caterpillar Financial CAP 30,966.2 30,205.3 760.9 2.5% Banc of America Leasing 5 5 IBM Global Financing 2 CAP 20,180.0 18,920.0 1,260.0 6.7% 6 6 Volvo Financial Services CAP 18,371.4 16,848.2 1,523.2 9.0% Wells Fargo Equipment Finance 7 7 CNH Industrial Capital CAP 16,440.0 15,960.0 480.0 3.0% 8 8 CIT Group USB 15,590.0 14,564.2 1,025.8 7.0% John Deere Financial 9 10 PNC Equipment Finance USB 15,378.0 13,320.6 2,057.4 15.4%

Caterpillar Financial 10 9 DLL USA FOR 14,492.0 13,890.0 602.0 4.3% 11 13 Air Lease IND 13,280.3 12,041.9 1,238.4 10.3% IBM Global Financing 12 12 PACCAR Financial CAP 13,202.3 12,194.8 1,007.5 8.3% 13 11 HPE Financial Services 3 CAP 12,893.0 12,818.1 74.9 0.6% 14 16 Key Equipment Finance 4 USB 12,350.9 10,543.8 1,807.1 17.1% 15 15 U.S. Bank Equipment Finance USB 11,296.2 10,990.0 306.2 2.8% 16 14 BMO Financial Group USB 10,976.7 11,001.9 -25.2 -0.2% 17 22 SMBC Leasing and Finance FOR 9,644.3 5,969.0 3,675.3 61.6% 18 18 Regions Equipment Finance USB 9,593.5 8,963.4 630.1 7.0% 19 17 J.P. Morgan Equipment Finance 5 USB 8,501.0 8,939.0 -438.0 -4.9% 20 19 Fifth Third Equipment Finance USB 7,322.0 7,290.0 32.0 0.4% 21 27 Dell Financial 6 CAP 6,864.6 5,161.6 1,703.0 33.0% 22 23 GATX IND 6,321.8 5,946.3 375.5 6.3% 23 25 MassMutual Asset Finance NEC 6,318.0 5,587.9 730.1 13.1% 24 21 MUFG (Leasing & Asset Finance) USB 5,325.0 6,308.0 -983.0 -15.6% 25 28 TCF Equipment Finance/Winthrop Resources USB 5,227.9 4,635.2 592.8 12.8%

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1–50

RANK NET ASSETS ‘17 ‘16 COMPANY SEG 2017 2016 VARIANCE +/- % +/- 26 26 SunTrust Equipment Finance & Leasing USB 4,866.3 5,273.5 -407.2 -7.7% 27 24 Citizens Asset Finance USB 4,785.0 5,907.0 -1,122.0 -19.0% 28 30 Farm Credit Leasing USB 4,759.3 4,149.2 610.1 14.7% 29 29 Huntington Asset Finance USB 4,503.0 4,232.1 270.9 6.4% 30 20 Bank of the West 7 USB 4,098.3 4,132.5 -34.2 -0.8% 31 32 BB&T Equipment Finance 8 USB 3,946.9 3,577.4 369.5 10.3% 32 33 Signature Financial USB 3,495.8 3,370.1 125.7 3.7% 33 31 Boeing Capital CAP 3,003.0 4,109.0 -1,106.0 -26.9% 34 34 TD Equipment Finance 9 USB 2,963.6 2,759.8 203.8 7.4% 35 35 MB Equipment Finance 10 USB 2,868.0 2,621.0 247.0 9.4% 5.6% 36 36 EverBank Commercial Finance USB 2,630.0 2,605.1 24.9 1.0% The year-over-year net asset 37 37 Hitachi Capital America 11 FOR 2,379.5 2,272.5 107.0 4.7% growth forecasted by a collective of 80 participants 38 38 1st Source Bank Specialty Finance USB 2,363.7 2,113.0 250.7 11.9% that shared anticipated 2018 39 39 People's Capital & Leasing USB 2,102.9 2,098.3 4.6 0.2% year-end net investment data — translates into a projected 40 40 Canon Financial Services CAP 1,985.6 1,873.1 112.5 6.0% $525 billion in YE/18 ENI. 41 41 GreatAmerica Financial Services IND 1,912.2 1,783.9 128.3 7.2% 42 43 BankUnited USB 1,637.4 1,505.6 131.8 8.8% 43 54 Stonebriar Commercial Finance IND 1,614.8 926.5 688.3 74.3% 44 45 Willis Lease Finance IND 1,603.0 1,338.0 265.0 19.8% 45 42 CSI Leasing FOR 1,601.2 1,536.0 65.2 4.2% 46 44 M&T Bank USB 1,451.0 1,413.0 38.0 2.7% 47 49 First American Equipment Finance 12 USB 1,417.4 1,063.5 353.9 33.3% 48 46 Ascentium Capital IND 1,359.7 1,127.5 232.2 20.6% 49 50 Santander Bank USB 1,200.0 1,050.0 150.0 14.3% 50 47 Stearns Bank USB 1,191.8 1,092.0 99.8 9.1%

Definitions, explanations & footnotes on page 62

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Monitor 100 The 100 Largest Equipment Finance/Leasing Companies in the U.S. ($ = millions)

RANK NET ASSETS ‘17 ‘16 COMPANY SEG 2017 2016 VARIANCE +/- % +/- LARGEST 51 53 Financial Pacific Leasing USB 1,166.8 941.7 225.1 23.9% INCREASES 52 48 Societe Generale Equipment Finance USA FOR 1,094.8 1,071.4 23.4 2.2% Based on Net Assets ($ = billions) 53 51 CBI Equipment Finance USB 1,028.0 996.0 32.0 3.2% 54 52 BB&T Commercial Equipment Capital 13 USB 1,025.7 995.6 30.1 3.0% SMBC Leasing and Finance Citizens Asset Finance 55 61Wintrust Asset Finance USB 1,005.6 717.9 287.7 40.1%

PNC Equipment Finance 56 55BoeingLEAF Capital Commercial Capital USB 982.7 920.3 62.4 6.8% 57 56CapitalSource Corporate Asset Finance USB 919.5 888.4 31.1 3.5% Key Equipment Finance 58 60MUFGMarlin (Leasing Business & Asset Services Finance) USB 914.4 796.7 117.7 14.8% 59 58SQN Capital Management IND 883.6 832.5 51.1 6.1% Dell Financial 60 57WellsZions Fargo Credit Equipment Finance USB 869.8 859.3 10.5 1.2% 61 62Eastern Funding USB 786.3 715.8 70.5 9.8% Volvo Financial Services J.P. Morgan Equipment Finance 62 76 City National Capital Finance USB 783.5 300.0 483.5 161.2% 63 64 Sterling National Bank EFD USB 687.0 580.0 107.0 18.4% 64 70 Hancock Whitney Equipment Finance 14 USB 672.0 466.0 206.0 44.2% City National Capital Finance BBVA Compass Equip Finance 65 65ENGS Commerical Finance IND 596.0 562.0 34.0 6.0% Stonebriar Commercial Finance 66 69BancorpSouthFrost Equipment Equip Finance Leasing & Finance USB 585.0 509.0 76.0 14.9% 67 66Somerset Capital Group IND 569.9 552.9 17.0 3.1% SMBC Leasing and Finance 68 63AT&TWebster Capital Capital Finance USB 550.2 635.7 -85.5 -13.4% 69 71Kingsbridge Holdings IND 447.0 439.0 8.0 1.8% FNB Equipment Finance 70 73BoeingTrans Capital Lease IND 443.2 401.4 41.8 10.4% 71 74Navitas Credit IND 441.5 341.9 99.6 29.1% Pawnee Leasing 72 --CitizensFNB AssetEquipment Finance Finance USB 439.0 287.0 152.0 53.0% 73 78 United Leasing & Finance IND 362.0 289.0 73.0 25.3% Includes only companies with full year/year comparative data 74 67 BBVA Compass Equipment Finance USB 336.4 542.0 -205.6 -37.9% 75 80 Crossroads Equipment Lease & Finance 15 IND 321.2 317.8 3.4 1.1%

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51–100

RANK NET ASSETS ‘17 ‘16 COMPANY SEG 2017 2016 VARIANCE +/- % +/- 76 79 Amur Equipment Finance IND 319.1 285.3 33.8 11.8% LARGEST 77 83 Hanmi Bank Commercial Equipment Leasing USB 314.7 249.8 64.9 26.0% DECREASES 78 88 Pawnee Leasing IND 314.7 213.4 101.3 47.5% Based on Net Assets ($ = billions) 79 81 Western Equipment Finance USB 312.4 259.2 53.2 20.5% SMBC Leasing and Finance Citizens Asset Finance 80 92 Crestmark Equipment Finance USB 306.0 208.0 98.0 47.1%

81 72 BancorpSouth Equipment Finance USB 294.5 415.1PNC -120.6 Equipment -29.1% Finance Boeing Capital 82 77 Wallwork Financial IND 275.4 291.9 -16.5 -5.7% 83 82 Jules and Associates IND 272.5 257.6Key 14.9Equipment 5.8%Finance MUFG (Leasing & Asset Finance) 84 85 Arvest Equipment Finance USB 248.6 234.7 13.9 5.9% 85 91 First Midwest Equipment Finance USB 223.0 209.0Dell 14.0Financial 6.7% Wells Fargo Equipment Finance 86 89 CCA Financial IND 221.6 212.8 8.8 4.1% Volvo Financial Services 87 86 Merchants Bank Equipment Finance USB 219.5 218.5 1.0 0.5% J.P. Morgan Equipment Finance 88 90 AeroCentury IND 218.7 210.3 8.4 4.0% 88 87 Lease Corporation of America 16 IND 218.7 217.0 1.7 0.8% City National Capital Finance BBVA Compass Equip Finance 90 93 Northland Capital Financial Services 17 IND 212.7 196.9 15.8 8.0% 18 91 84 California First National Bancorp USB 192.7 237.7Stonebriar -45.0 Comme -18.9%rcial Finance BancorpSouth Equip Finance 92 94 First Hawaiian Leasing USB 172.0 189.0 -17.0 -9.0% 93 96 Forsythe/McArthur Associates, A Sirius Co. 19 IND 171.0 161.0SMBC 10.0 Leasing and 6.2% Finance AT&T Capital 94 97 UniFi Equipment Finance USB 163.3 148.1 15.2 10.3% 95 -- Onset Financial IND 159.7 166.6FNB -6.9Equipment -4.1% Finance Boeing Capital 96 -- Beneficial Equipment Finance USB 141.2 139.1 2.1 1.5% 97 -- VAR Technology Finance IND 137.7 122.3Pawnee 15.4 Leasin 12.6%g Citizens Asset Finance 98 -- GSG Financial IND 131.7 105.7 26.0 24.6% 99 98 Continental Bank USB 127.4 132.0 -4.6 -3.5% Includes only companies with full year/year comparative data 100 99 AT&T Capital CAP 94.0 130.0 -36.0 -27.7% Total 497,469.9 473,095.6 24,374.3 5.2% Definitions, explanations & footnotes on page 62

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Top 10 Market Share Based on Net Assets ($ = billions)

$600

500 Monitor 100 Total Top 10 Companies, of Monitor 100 Remaing 90 Companies 54.1% 400 The top 10 Monitor 100 companies accounted for 2 1 8 2 2 1 300 $269.2 billion in YE/17 ENI or 54.1% of the total for all 100 participants. 200

100

0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Reflects adjustments for departures/arrivals and restatements

MONITOR 100 OVERVIEW up 4.1% ($1.5 billion) from $35.8 billion last year. The top 100 equipment finance companies reported Industrial giant Caterpillar Financial also holds its portfolio growth of $24.4 billion, or 5.2%, in-line with own at No. 4 with a portfolio of nearly $31 billion, by the 5.1% increase achieved last year. Reporting $51.7 $760.9 million, or 2.5% from last year’s reported $30.2 billion in net assets, a $1.2 billion (2.3%) increase billion. IBM keeps its spot in the top 5 with $20.2 from $50.5 billion amassed in 2016, No. 1-ranked billion in net assets, up $1.3 billion (6.7%) from $18.9 $3.7B Banc of America widened its lead opposite No. billion in 2016. The largest year-over-year 2-ranked Wells Fargo Equipment Finance, which increase in ENI, reported reported a portfolio of $48.9 billion, down $734 SEGMENT OVERVIEW by SMBC Leasing and million (-1.5%) on a year-over-year basis. Last year, The U.S. Bank Affiliates continue to be the largest Finance with a 61.6% the top two contenders were separated by a mere segment, both in number and in asset size. The 57 portfolio gain, which moved $820.7 million, while this year the gap has increased companies reported an aggregate $267.9 billion in SMBC up in the rankings to $2.7 billion. Banc of America now claims a 10.4% assets, or 53.8% of the Monitor 100 total, up $8.4 from No. 22 to No. 17. share of the Monitor 100 total. John Deere retains billion (3.3%) from $259.4 billion in 2016. Forty-four the No. 3 position with $37.2 billion in net assets, banks achieved year-over-year growth totaling $12.7 10-Year Net Assets Trend Based on Reported Net Assets From the 2008 Monitor 100 to Present ($ = billions)

$625

585 545 ASSETS 505 465 425 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (Forecast)

Reflects adjustments for departures/arrivals and restatements

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Top 5 Segment Leaders Based on Net Assets ($ = millions) U.S. BANK AFFLILIATES TO RANK COMPANY 2017 2016 VARI +/- % +/- O T 1 Banc of America Leasing 51,651.8 50,475.7 1,176.1 2.3% 2 Wells Fargo Equipment Finance 48,921.0 49,655.0 -734.0 -1.5% 3 CIT Group 15,590.0 14,564.2 1,025.8 7.0% 4 PNC Equipment Finance 15,378.0 13,320.6 2,057.4 15.4% U.S. Banks Total Segment 5 Key Equipment Finance 4 12,350.9 10,543.8 1,807.1 17.1% SEGMENT TOP 5 143,891.7 138,559.3 5,332.4 3.8% MIX CAPTIVES Based on Net Assets ($ = billions) RANK COMPANY 2017 2016 VARI +/- % +/- O OTO U.S. Bank Afliates 1 1 John Deere Financial 37,248.7 35,766.0 1,482.7 4.1% (57 companies) 2 Caterpillar Financial 30,966.2 30,205.3 760.9 2.5% Captives (11 companies) 3 IBM Global Financing 2 20,180.0 18,920.0 1,260.0 6.7%

4 Volvo Financial Services 18,371.4 16,848.2 1,523.2 9.0% Captives Total Segment 5 CNH Industrial Capital 16,440.0 15,960.0 480.0 3.0% TOP 5 123,206.3 117,699.5 5,506.8 4.7%

FOREIGN RANK COMPANY 2017 2016 VARI +/- % +/- 1 DLL USA 14,492.0 13,890.0 602.0 4.3% NEC 2 SMBC Leasing and Finance 9,644.3 5,969.0 3,675.3 61.6% (1 company) 11 3 Hitachi Capital America 2,379.5 2,272.5 107.0 4.7% Foreign Afliates Foreign Af liates 4 CSI Leasing 1,601.2 1,536.0 65.2 4.2% Total Segment (5 companies) Independents 5 Societe Generale Equip Finance USA 1,094.8 1,071.4 23.4 2.2% (26 companies)

TOP 5 29,211.8 24,738.9 4,472.9 18.1% Numbers may not add due to rounding

INDEPENDENTS RANK COMPANY 2017 2016 VARI +/- % +/- 1 Air Lease 13,280.3 12,041.9 1,238.4 10.3% 2 GATX 6,321.8 5,946.3 375.5 6.3% 3 GreatAmerica Financial Services 1,912.2 1,783.9 128.3 7.2% Independents Total Segment 4 Stonebriar Commercial Finance 1,614.8 926.5 688.3 74.3% 5 Willis Lease Finance 1,603.0 1,338.0 265.0 19.8% TOP 5 24,732.1 22,036.6 2,695.5 12.2%

NEC RANK COMPANY 2017 2016 VARI +/- % +/- 1 MassMutual Asset Finance 6,318.0 5,587.9 730.1 13.1%

Definitions, explanations & footnotes on page 72 TOP 1 6,318.0 5,587.9 730.1 13.1% NEC Total Segment

Definitions, explanations & footnotes on page 62

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Captive Assets Monitor 100 Companies Reporting Captive-Related Assets ($ = millions)

RANK NET ASSETS ‘17 ‘16 COMPANY 2017 2016 VARIANCE +/- % +/- 1 1 John Deere Financial 1 37,207.7 35,748.4 1,459.3 4.1% 2 2 Caterpillar Financial 30,253.7 29,366.4 887.4 3.0% 3 3 IBM Global Financing 2 20,180.0 18,920.0 1,260.0 6.7% 4 4 Volvo Financial Services 18,371.4 16,848.2 1,523.2 9.0% 5 5 CNH Industrial Capital 16,440.0 15,960.0 480.0 3.0% 12.2% 6 6 PACCAR Financial 13,202.3 12,194.8 1,007.5 8.3% 6 The year-over-year 7 7 Dell Financial 6,864.6 5,161.6 1,703.0 33.0% percentage increase posted 8 8 Boeing Capital 3,003.0 4,109.0 -1,106.0 -26.9% by the 28 Monitor 100 9 9 Canon Financial Services 1,985.6 1,873.1 112.5 6.0% companies actively engaged in providing equipment 10 10 AT&T Capital 94.0 130.0 -36.0 -27.7% financing and leasing to 11 12 Trans Lease 70.9 64.3 6.6 10.3% end-users outside the U.S. 147,673.2 140,375.7 7,297.5 5.2% Definitions, explanations & footnotes on page 62

billion, while 13 banks saw combined declines of $4.2 million. As a group, the Independents achieved 11.8% billion. Banc of America leads the bank affiliates year-over-year growth, with a $3.5 billion net increase with a portfolio of $51.7 billion. Coming in second over last year’s collective portfolio of $29.3 billion. Air is Wells Fargo with $48.9 billion in net assets. CIT Lease is the largest Independent, with a reported $13.3 Group is the third-largest bank with a stated portfolio billion in net assets, up $1.2 billion (10.3%) year-over- of $15.6 billion. With a 15.4% year-over-year increase, year from $12 billion reported in 2016. GATX comes thanks in part to its acquisition of ECN Capital’s in second with $6.3 billion in net assets, up $375.5 U.S. vendor finance business, PNC comes in fourth million (6.3%) from $5.9 billion reported last year. with net assets of $15.4 billion, up from $13.3 billion Great America Financial Services retains the title in 2016. On the power of 17.1% year-over-year port- for third-largest Independent with a $1.9 billion portfolio growth, Key joins the top five banks with $12.4 folio, up 7.2%, or $128.3 million on a year-over-year billion in 2017 assets, up $1.8 billion year over year. basis. Stonebriar joins the top five Independents as Once again, the Captives are the second-largest the fourth-largest of the group, reporting net assets of 65.9% segment, laying claim to 32.4% of the Monitor 100’s $1.61 billion, a whopping increase of 74.3%, or $688.3 Although domiciled in overall asset size with a reported $161.2 billion million year over year. Willis Lease Finance keeps the U.S., Volvo Financial in net assets. Of the group, nine experienced port- its claim to the top five with $1.6 billion in assets, up Services reported YE/17 folio growth totaling $8.4 billion, while two posted an impressive 19.8% year over year from $1.3 billion foreign-related ENI in loans net declines of $1.1 billion. Collectively, the group in 2016. and leases were $12.1 billion, or 65.9%, of its achieved year-over-year growth of $7.3 billion, or The fourth-largest segment, the five Foreign $18.4 billion in global ENI. 4.1%. John Deere leads the group with $37.2 billion Affiliates, accounted for 5.9% of the aggregate Monitor in net assets followed by Caterpillar Financial 100 portfolio, with $29.2 billion in total assets. All with a 2017 portfolio of $31.0 billion. IBM Global five of the Foreign Affiliates reported portfolio growth, Financing has the third-largest portfolio of $20.2 resulting in a $4.5 billion, or 18.1% year-over-year billion. The fourth-largest captive is Volvo with $18.4 increase. The largest of the group is DLL with a billion in assets, up $1.5 billion, or 9%, from $16.8 reported $14.5 billion in net assets, up $602 million billion reported in 2016. Rounding out the top five (4.3%) year over year. SMBC is the second largest is CNH Industrial Capital with a portfolio of $16.4 with a portfolio of $9.6 billion, up 61.6% from $5.6 billion, up 3% ($480 million) year over year. billion in 2016. Coming in third is Hitachi Capital The 26 Independents are the third-largest segment America, with $2.4 billion in net assets recorded in according to asset size, reporting a collective $32.8 2017, up $107 million (4.7%) year over year from $2.3 billion, or 6.6%, of the aggregate portfolio of the billion last year. CSI Leasing is the fourth largest Monitor 100 companies. Most of the Independents Foreign Affiliate with a portfolio of $1.6 billion, an (24) reported portfolio growth in 2017 totaling $3.5 increase of 4.2%, or $65.2 million, on a year-over-year billion, while two charted a net decline equal to $23.4 basis. Societe Generale Equipment Finance USA

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Foreign Assets Monitor 100 Companies Reporting Foreign-Related Assets ($ = millions)

NET ASSETS % OF TOTAL COMPANY FOREIGN ASSETS 2017 2016 VARIANCE +/- % +/- Caterpillar Financial 48.0% 14,854.1 14,041.9 812.2 5.8% Volvo Financial Services 65.9% 12,105.4 10,585.3 1,520.1 14.4% John Deere Financial 1 30.9% 11,523.7 9,821.6 1,702.1 17.3% CNH Industrial Capital 57.4% 9,429.0 8,215.0 1,214.0 14.8% HPE Financial Services 3 61.7% 7,954.6 7,541.1 413.5 5.5% Banc of America Leasing 12.9% 6,662.9 6,149.2 513.7 8.4% PACCAR Financial 34.5% 4,550.7 3,864.3 686.4 17.8% SMBC Leasing and Finance 30.2% 2,910.2 1,830.8 1,079.4 59.0% TOP FOREIGN Wells Fargo Equipment Finance 4.3% 2,112.0 2,267.0 -155.0 -6.8% ASSET HOLDERS Dell Financial 6 25.4% 1,743.9 1,330.3 413.6 31.1% >5% Share of Total ($ = billions) BMO Financial Group 9.0% 988.2 850.9 137.3 16.1% Caterpillar CSI Leasing 59.3% 950.3 779.6 170.7 21.9% Financial PNC Equipment Finance 4.1% 630.3 620.5 9.8 1.6% Volvo Financial MUFG (Leasing & Asset Finance) 11.5% 610.0 639.4 -29.4 -4.6% DLL USA 3.9% 561.0 524.0 37.0 7.1% John Deere 1st Source Bank Specialty Finance 10.9% 258.1 258.2 -0.1 0.0% Financial Key Equipment Finance 4 0.9% 114.6 152.2 -37.6 -24.7% >$100MM in Foreign Activity 25.3% 77,959.0 69,471.2 8,487.8 12.2% (17 Companies Shown Above) CNH Industrial Capital <$100MM in Foreign Activity 1.1% 404.0 353.3 50.7 14.3% (11 Companies Not Shown)

GRAND TOTAL (All 28 Companies) 22.7% 78,362.9 69,824.5 8,538.5 12.2% HPE Financial

Definitions, explanations & footnotes on page 62 Banc of America Leasing rounds out the top five with $1.1 billion in net assets, Services, with reported portfolio growth of $1.5 PACCAR Financial up $23.4 million (2.2%) from 2016. billion year over year. The smallest segment, Not Elsewhere Classified, TOP FIVE PERCENTAGE GAINERS contributed 1.3% of the Monitor 100’s aggregate Other (21) assets. MassMutual Asset Finance, the sole The largest percentage gainer was No. 62-ranked member of the group, reported a portfolio of $6.3 City National Capital Finance with a reported mers ma not add to 100 de to ronding billion, which grew 13.1% from $5.6 billion in 2016. 161.2% increase to its portfolio, resulting in a total of $783.5 million in net assets in 2017. Stonebriar TOP FIVE ENI GAINERS Commercial Finance, ranked No. 43, posted the No. 17-ranked SMBC charted the largest year- second largest percentage increase, 74.3%, which over-year asset gain, amassing $3.7 billion thanks, helped the Independent end 2017 with a portfolio in part, to its acquisition of American Railcar valued at $1.6 billion. No. 17-ranked SMBC is the Leasing. The second big gainer was No. 9-ranked third largest percentage gainer, with a 61.6% year- PNC, which reported a $2.1 billion increase to its over-year increase in net assets. Coming in fourth portfolio after acquiring the vendor finance business is new entrant F.N.B Equipment Finance, ranked of ECN Capital. Key Equipment Finance, ranked No. 72, with 53% growth year over year, resulting No. 14, posted the third largest increase of $1.8 in a portfolio of $439 million at year-end 2017. No. billion in organic growth. No. 21-ranked Dell holds 78-ranked Pawnee Leasing posted the fifth-largest claim to the fourth-largest increase in portfolio size percentage gain of 47.5%, ending the year with $314.7 of $1.7 billion derived from organic growth. Closing million in net assets. out the top five is No. 6-ranked Volvo Financial

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Volume 100 The Monitor 100 Companies Ranked by New Business Volume ($ = millions)

RANK NEW BUSINESS VOLUME ‘17 ‘16 COMPANY SEG 2017 2016 VARIANCE +/- % +/- TOP 5: 1 1 Banc of America Leasing USB 15,825.3 16,262.0 -436.7 -2.7% ORIGINATORS 2 2 Wells Fargo Equipment Finance USB 15,009.0 14,638.0 371.0 2.5% Based on New Business Volume ($ = billions) 3 3 John Deere Financial 1 CAP 14,116.3 13,105.3 1,011.0 7.7% 4 4 IBM Global Financing 2 CAP 13,191.0 11,611.0 1,580.0 13.6% Banc of America Leasing 5 6 DLL USA FOR 11,595.0 10,810.0 785.0 7.3% Wells Fargo Equipment Finance 6 5 Caterpillar Financial CAP 11,224.0 10,908.4 315.7 2.9% 7 7 CNH Industrial Capital CAP 9,145.0 9,021.0 124.0 1.4% John Deere Financial 8 17 SMBC Leasing and Finance FOR 7,326.0 2,617.1 4,708.9 179.9% IBM Global Financing 9 9 Volvo Financial Services CAP 6,773.7 6,379.3 394.4 6.2% 10 10 PNC Equipment Finance USB 6,222.1 4,770.7 1,451.4 30.4% DLL USA 11 8 HPE Financial Services 3 CAP 6,085.4 6,477.1 -391.7 -6.0% 12 13 Key Equipment Finance 4 USB 5,638.4 3,821.8 1,816.6 47.5% 13 16 Dell Financial 6 CAP 5,228.7 3,447.8 1,780.8 51.7% 14 11 U.S. Bank Equipment Finance USB 4,664.6 4,536.9 127.7 2.8% 15 12 PACCAR Financial CAP 4,328.1 4,223.4 104.7 2.5% 16 14 BMO Financial Group USB 3,792.5 3,585.3 207.2 5.8% 17 19 Regions Equipment Finance USB 2,900.2 2,291.9 608.3 26.5% 18 15 J.P. Morgan Equipment Finance 5 USB 2,830.8 2,919.1 -88.3 -3.0% 19 18 CIT Group USB 2,751.7 2,434.8 316.9 13.0% 20 21 TCF Equipment Finance/Winthrop Resources USB 2,478.0 2,137.0 341.0 16.0% 21 24 Air Lease IND 1,972.0 1,914.1 57.9 3.0% 22 20 Fifth Third Equipment Finance USB 1,931.9 2,285.6 -353.7 -15.5% 23 28 Signature Financial USB 1,843.4 1,398.7 444.7 31.8% 24 22 Huntington Asset Finance USB 1,788.7 2,015.9 -227.2 -11.3% 25 30 Farm Credit Leasing USB 1,766.3 1,359.7 406.6 29.9%

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1–50

RANK NEW BUSINESS VOLUME ‘17 ‘16 COMPANY SEG 2017 2016 VARIANCE +/- % +/- 26 25 MassMutual Asset Finance NEC 1,750.4 1,802.6 -52.2 -2.9% VOLUME TREND: 27 26 MB Equipment Finance 10 USB 1,678.8 1,578.1 100.7 6.4% LAST FIVE YEARS 28 23 Bank of the West 7 USB 1,629.0 1,864.6 -235.6 -12.6% Year/Year % Change, 2013–2017 29 34 BB&T Equipment Finance 8 USB 1,501.6 1,255.9 245.7 19.6% 10 30 31 SunTrust Equipment Finance & Leasing USB 1,401.2 1,346.1 55.1 4.1% 31 33 MUFG (Leasing & Asset Finance) USB 1,334.0 1,267.1 66.9 5.3% 8 32 35 1st Source Bank Specialty Finance USB 1,241.8 1,135.0 106.8 9.4% 6 33 36 CSI Leasing FOR 1,071.6 1,025.4 46.2 4.5%

12 34 46 First American Equipment Finance USB 1,065.9 605.7 460.2 76.0% 4 35 37 TD Equipment Finance 9 USB 1,040.4 974.8 65.6 6.7% 2 36 32 EverBank Commercial Finance USB 1,028.0 1,279.4 -251.4 -19.6% 37 38 Ascentium Capital IND 1,004.7 898.5 106.2 11.8% 0 38 43 Stonebriar Commercial Finance IND 970.8 732.1 238.7 32.6% -2 39 27 Citizens Asset Finance USB 954.2 1,466.2 -512.0 -34.9% 40 39 Canon Financial Services CAP 939.7 893.3 46.4 5.2% 41 40 GreatAmerica Financial Services IND 922.0 847.0 75.0 8.9% 42 41 Societe Generale Equipment Finance USA FOR 821.9 804.8 17.1 2.1% 43 42 People's Capital & Leasing USB 726.0 740.0 -14.0 -1.9% 44 49 Financial Pacific Leasing USB 649.1 533.5 115.6 21.7% 45 47 Stearns Bank USB 641.0 576.3 64.7 11.2% 46 51 Marlin Business Services USB 629.4 504.3 125.1 24.8% 47 45 GATX IND 603.4 620.7 -17.3 -2.8% 48 48 M&T Bank USB 579.0 542.0 37.0 6.8% 49 44 Hitachi Capital America 11 FOR 574.9 706.6 -131.7 -18.6% 50 63 City National Capital Finance USB 574.6 307.0 267.6 87.2%

Definitions, explanations & footnotes on page 62

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Volume 100 The Monitor 100 Companies Ranked by New Business Volume ($ = millions)

RANK NEW BUSINESS VOLUME ‘17 ‘16 COMPANY SEG 2017 2016 VARIANCE +/- % +/- LARGEST 51 56 Wintrust Asset Finance USB 539.9 409.5 130.4 31.8% INCREASES 52 55 BankUnited USB 525.1 409.7 115.4 28.2% Based on New Business Volume ($ = billions) 53 29 Boeing Capital CAP 480.0 1,376.0 -896.0 -65.1% 54 50 BB&T Commercial Equipment Capital 13 USB 477.3 508.4 -31.1 -6.1% SMBC Leasing and Finance Boeing Capital 55 53LEAF Commercial Capital USB 466.2 477.4 -11.2 -2.3%

Key Equipment Finance 56Citizens 52 Santander Asset Finance Bank USB 400.0 480.0 -80.0 -16.7% 57 66Sterling National Bank EFD USB 395.0 250.0 145.0 58.0% Dell Financial 58Banc 61 ofENGS America Commerical Leasing Finance IND 375.0 317.0 58.0 18.3% 59 62Hancock Whitney Equipment Finance 14 USB 368.0 312.4 55.6 17.8% IBM Global Financing 60HPE 57 FinancialZions Credit Services USB 361.0 393.0 -32.0 -8.1% 61 75 Willis Lease Finance IND 345.0 180.0 165.0 91.7% PNC Equipment Finance Fifth Third Equipment Finance 62 59 CapitalSource Corporate Asset Finance USB 338.1 336.3 1.8 0.5% 63 60 Eastern Funding USB 325.7 330.6 -4.9 -1.5%

SMBC Leasing and Finance 64BB 65VA NavitasCompass Credit Equip Finance IND 323.4 275.7 47.7 17.3% 65 54CBI Equipment Finance USB 288.0 419.8 -131.8 -31.4%

FNB Equipment Finance 66Boeing -- FNB Capital Equipment Finance USB 273.0 137.0 136.0 99.3% 67 64Somerset Capital Group IND 256.4 275.7 -19.3 -7.0% Willis Lease Finance 68We 67bsterFrost Capital Equipment Finance Leasing & Finance USB 251.0 248.6 2.4 1.0% 69 70 Western Equipment Finance USB 249.2 203.9 45.3 22.2% City National Capital Finance BancorpSouth Equip Finance 70 76 Trans Lease IND 214.2 175.1 39.1 22.3% 71 86 Crestmark Equipment Finance USB 211.3 127.0 84.3 66.4% First American Equip Finance AeroCentury 72 80Amur Equipment Finance IND 210.7 153.5 57.2 37.3% 73 83 Pawnee Leasing IND 201.2 137.9 63.3 45.9% Includes only companies with full year/year comparative data 74 71 Kingsbridge Holdings IND 200.9 200.0 0.9 0.5% 75 72 Crossroads Equipment Lease & Finance 15 IND 176.7 195.8 -19.1 -9.8%

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51–100

RANK NEW BUSINESS VOLUME ‘17 ‘16 COMPANY SEG 2017 2016 VARIANCE +/- % +/- 76 85 United Leasing & Finance IND 176.0 128.0 48.0 37.5% LARGEST 77 77 Hanmi Bank Commercial Equipment Leasing USB 175.9 168.2 7.7 4.6% DECREASES 78 -- VAR Technology Finance IND 171.7 150.0 21.7 14.5% Based on New Business Volume ($ = billions) 79 74 SQN Capital Management IND 164.2 184.0 -19.8 -10.8% SMBC Leasing and Finance Boeing Capital 80 73 First Midwest Equipment Finance USB 161.0 185.8 -24.8 -13.3% 17 81 82 Northland Capital Financial Services IND 144.0 140.7Key Equipment 3.3 Finance 2.3% Citizens Asset Finance 82 84 Jules and Associates IND 140.4 130.6 9.8 7.5% 83 68 Webster Capital Finance USB 130.4 242.6Dell -112.2 Financial -46.2% Banc of America Leasing 84 81 Lease Corporation of America 16 IND 125.7 143.1 -17.4 -12.1% 85 91 Forsythe/McArthur Associates, A Sirius Co. 19 IND 120.8 104.1IBM 16.7Global Financing16.0% HPE Financial Services 86 90 AT&T Capital CAP 120.0 109.1 10.9 10.0% PNC Equipment Finance Fifth Third Equipment Finance 87 88 Wallwork Financial IND 116.3 111.6 4.7 4.2% 88 89 California First National Bancorp 18 USB 107.6 110.4 -2.8 -2.5%

89 93 Arvest Equipment Finance USB 106.6 95.6SMBC 11.0 Leasing 11.5%and Finance BBVA Compass Equip Finance 90 95 CCA Financial IND 101.5 93.8 7.7 8.2% 91 94 UniFi Equipment Finance USB 97.0 95.0FNB Equipment 2.0 Finance 2.1% Boeing Capital 92 92 Merchants Bank Equipment Finance USB 86.5 99.6 -13.1 -13.2% 93 -- Onset Financial IND 82.9 127.0Willis -44.1 Lease Financ -34.7%e Webster Capital Finance 94 -- GSG Financial IND 77.8 63.8 14.0 21.9% City National Capital Finance BancorpSouth Equip Finance 95 87 BancorpSouth Equipment Finance USB 68.5 119.6 -51.1 -42.7% 96 -- Beneficial Equipment Finance USB 60.9 71.7 -10.8 -15.1% First American Equip Finance AeroCentury 97 98 Continental Bank USB 48.7 54.8 -6.1 -11.1% 98 97 AeroCentury IND 39.7 69.0 -29.3 -42.5% 99 99 First Hawaiian Leasing USB 39.5 26.3 13.2 50.2% 100 78 BBVA Compass Equipment Finance USB 9.5 160.3 -150.8 -94.1% Total 196,686.9 180,593.9 16,093.0 8.9% Definitions, explanations & footnotes on page 62

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Top 5 Segment Leaders Based on New Business Volume ($ = millions) U.S. BANK AFFLILIATES RANK COMPANY 2017 2016 VARI +/- % +/- TOP 5% OF SEGMENT 1 Banc of America Leasing 15,825.3 16,262.0 -436.7 -2.7% 2 Wells Fargo Equipment Finance 15,009.0 14,638.0 371.0 2.5% 51.1% 3 PNC Equipment Finance 6,222.1 4,770.7 1,451.4 30.4%

4 Key Equipment Finance 4 5,638.4 3,821.8 1,816.6 47.5% SEGMENT 5 U.S. Bank Equipment Finance 4,664.6 4,536.9 127.7 2.8% U.S. Banks Total Segment $92.7B MIX TOP 5 47,359.4 44,029.4 3,330.0 7.6% Based on New Business Volume ($ = billions) CAPTIVES % OF MONITOR 100 U.S. Bank Afliates RANK COMPANY 2017 2016 VARI +/- % +/- $92.7 ( omanies) 1 John Deere Financial 1 14,116.3 13,105.3 1,011.0 7.7% Captives $71.6 ( omanies) 2 IBM Global Financing 2 13,191.0 11,611.0 1,580.0 13.6% 76.0% 3 Caterpillar Financial 11,224.0 10,908.4 315.7 2.9% 4 CNH Industrial Capital 9,145.0 9,021.0 124.0 1.4% 47.1% Captives Total Segment 36.4% 5 Volvo Financial Services 6,773.7 6,379.3 394.4 6.2% $71.6B TOP 5 54,450.0 51,024.9 3,425.1 6.7%

FOREIGN RANK COMPANY 2017 2016 VARI +/- % +/- 1 DLL USA 11,595.0 10,810.0 785.0 7.3% 100% 0.9% NEC 2 SMBC Leasing and Finance 7,326.0 2,617.1 4,708.9 179.9% $1.8 ( oman) 3 CSI Leasing 1,071.6 1,025.4 46.2 4.5% 10.9% Foreign Afliates Foreign Af liates $21.4 ( omanies) 4 Societe Generale Equip Fin USA 821.9 804.8 17.1 2.1% Total Segment 4.7% Independents 5 Hitachi Capital America 11 574.9 706.6 -131.7 -18.6% $21.4B $9.2 ( omanies) Numes ma no add due o oundin TOP 5 21,389.4 15,963.9 5,425.5 34.0%

INDEPENDENTS RANK COMPANY 2017 2016 VARI +/- % +/- 1 Air Lease 1,972.0 1,914.1 57.9 3.0% 2 Ascentium Capital 1,004.7 898.5 106.2 11.8% 59.2% 3 Stonebriar Commercial Finance 970.8 732.1 238.7 32.6% Independents 4 GreatAmerica Financial Services 922.0 847.0 75.0 8.9% Total Segment $9.2B 5 GATX 603.4 620.7 -17.3 -2.8% TOP 5 5,472.9 5,012.4 460.5 9.2%

NEC RANK COMPANY 2017 2016 VARI +/- % +/- 1 MassMutual Asset Finance 1,750.4 1,802.6 -52.2 -2.9% 100% TOP 1 1,750.4 1,802.6 -52.2 -2.9%

NEC Total Segment Definitions, explanations & footnotes on page 62 $1.8B

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Origination Source Mix Based on Reported New Business Volume, 2013 – 2017 ($ = billions)

$100 $99.1 90

70 $66.0 60 $62.0 $54.6 50 25.8% The percentage of foreign-related 40 $39.9 new business volume reported by $33.9 30 the 24 Monitor 100 participants that provided data on 2016 foreign 20 new business originations. $13.9 10 $10.2

Does not include CIT Group, Captive Direct Vendor Indirect HPE Financial Services and Huntington Asset Finance

$1 BILLION CLUB million in 2017. Finally, Wintrust Asset Finance Congratulations to our newly christened members broke into the billion dollar zone with $1,005.6 million of the Monitor $1 Billion Club. For the first time, we in assets, up from $717.9 million in 2016. recognize the Monitor 100 participants that achieved an industry milestone of exceeding $1 billion in YE 2018 ENI FORECAST year-end 2017 equipment loan and lease asset size. To gauge expectations for the year ahead, 80 compa- Stonebriar broke through the billion barrier with nies provided a portfolio forecast. Of this group, $1,614.8 million in net assets, up from $926.5 million 70 companies (87.5%) anticipate an increase in net in 2016. Financial Pacific Leasing also joined the assets in 2018 while six (7.5%) forecast a decrease to 60% club with its portfolio valued at $1,166.8 million, up their portfolios and four (5%) predict no change to The percentage of foreign from $941.7 million in 2016. CBI Equipment Finance their net assets. related new business volume also achieved this distinction with $1,028 million The 2018 asset forecast, created from the group’s reported by HPE Financial in net assets, up from $996 million in 2016. BB&T responses using an average weighted basis to make Services — represented $3.65 billion in 2017 originations. Commercial Equipment Capital amassed a portfolio the calculation, is for 5.6% year-over-year growth, valued at $1,025.7 million in 2017, up from $995.6 which would increase the total Monitor 100 portfolio 10-Year Volume Trend Based on Reported Monitor 100 New Business Volume From 2008 to Present ($ = billions)

$250

$231.1 200 $224.6 $205.4 $209.6 $212.6 $196.7 $197.0 $182.6 $180.6 150 $163.8 $150.1 100

0 VOLUME2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (Forecast)

Reects adjustments for departures/arrivals and restatements

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IBM GLOBAL Captive Originations FINANCING Monitor 100 Companies Reporting Captive-Related New Business Volume ($ = millions) NEW LEASE/LOAN VOLUME Five-Year Trend 2013–2017 ($ = billions) RANK NEW BUSINESS VOLUME ‘17 ‘16 COMPANY 2017 2016 VARIANCE +/- % +/- $20.0 1 1 John Deere Financial 1 14,076.5 13,091.1 985.4 7.5%

17.5 2 2 IBM Global Financing 2 13,191.0 11,611.0 1,580.0 13.6% $15.8 3 3 Caterpillar Financial 10,915.3 10,578.8 336.5 3.2% 15.0 $13.2 4 4 CNH Industrial Capital 9,145.0 9,021.0 124.0 1.4%

12.5 5 5 Volvo Financial Services 6,773.7 6,379.3 394.4 6.2% 6 7 Dell Financial 6 5,228.7 3,447.8 1,780.8 51.7% 10.0 2013 2014 2015 2016 2017 7 6 PACCAR Financial 4,328.1 4,223.4 104.7 2.5% $20.0 8 8 Canon Financial Services 939.7 893.3 46.4 5.2% $15.0 9 9 AT&T Capital 120.0 109.1 10.9 10.0% 17.5 $13.9 $15.8 64,718.0 59,354.8 5,363.2 9.0% 13.5 Definitions, explanations & footnotes on page 62 15.0 $13.2 12.0 $11.2 to $525.1 billion by year-end 2018. Last year, the billion in originations. Banc of America derived 12.5 projected forecast was 4.8%, which the group slightly most of its volume (77%) from its direct channel, CAT10.5 FINANCIAL exceeded with its 5.2% year-over-year gain. while 22% came from the vendor side and 1% from NEW10.0 LEASE/LOAN VOLUME 2013 2014 2015 2016 2017 indirect originations. Wells Fargo, No. 2 in the Five-Year$20.09.0 Trend 2013–2017 ($ = billions) NEW BUSINESS VOLUME volume ranking, closed the gap with $15 billion in 2013 2014 2015 2016 2017 The Monitor 100 companies achieved $196.7 billion new business volume, up 2.5% ($371 million) from $15.0 17.5 in new business volume in 2017, a $16.1 billion $14.6 billion reported in 2016. Wells Fargo’s vendor $15.8$13.9 $10.0 (8.9%) increase from the $180.6 billion reported the business provided the bulk of its 2017 originations 13.15.50 previous year. Of the group, 67 achieved year-over- (57%), with the direct and indirect channels contrib- 9.0 $13.2 year increases totaling $20.5 billion, while 33 saw net uting 37% and 6%, respectively. No. 3-ranked volume 12.05 $11.2 8.0 declines equal to $4.4 billion. producer, John Deere, reported a 7.7%, or $1 billion, $7.2 Despite a year-over-year decline of $436.7 million year-over-year increase from 2016’s originations of 10.5 10.7.00 (-2.7%), Banc of America hangs on to its title as 2013 2014 2015 2016 2017 $13.1 billion, resulting in $14.1 billion in total new $6.8 the No. 1 volume producer of the group with $15.8 business volume derived from its parent. IBM, ranked 9.06.0 2013 2014 2015 2016 2017 No. 4 for volume, recorded a gain of 13.6% in 2017 $15.0 5.0 $13.92013 2014 2015 2016 2017

$10.013.5

9.0 12.0 $11.2 Foreign Activity Trends 8.0 10.5 $7.2 Five-Year Trend Based on Foreign-Related New Business Volume for Selected Captives VOLVO7.0 FINANCIAL 9.0 $6.8 NEW6.0 2013LEASE/LOAN 2014 VOLUME2015 2016 2017 90% Five-Year Trend 2013–2017 ($ = billions) 5.0 80% 2013 2014 2015 2016 2017 $10.0 76.1% 70% 69.8% 9.0 60% 59.6% 61.9% 8.0 $7.2 50% 52.4% 51.1% 7.0 40% $6.8 6.0 30% 31.7% 5.0 23.1% 2013 2014 2015 2016 2017 20% 2013 2014 2015 2016 2017

Volvo Financial Caterpillar Financial CNH Capital John Deere Financial

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Foreign Originations Monitor 100 Companies Reporting Foreign-Related New Business Volume ($ = millions)

2017%* NEW BUSINESS VOLUME COMPANY FOREIGN-RELATED 2017 2016 VARIANCE +/- % +/- Caterpillar Financial 51.1% 5,734.0 5,342.3 391.7 7.3% CNH Industrial Capital 61.9% 5,662.0 5,275.0 387.0 7.3% Volvo Financial Services 69.8% 4,727.1 4,180.4 546.7 13.1% John Deere Financial 1 31.7% 4,479.4 3,538.9 940.5 26.6% HPE Financial Services 3 60.0% 3,652.5 3,878.5 -226.0 -5.8% PACCAR Financial 50.2% 2,173.0 1,980.3 192.7 9.7% Banc of America Leasing 13.6% 2,155.3 1,849.4 305.9 16.5% Dell Financial 6 33.2% 1,738.5 957.4 781.1 81.6% TOP FOREIGN SMBC Leasing and Finance 20.7% 1,517.5 1,453.3 64.2 4.4% Wells Fargo Equipment Finance 6.7% 999.0 706.0 293.0 41.5% ORIGINATORS Based on Foreign-Related CSI Leasing 68.0% 728.7 605.2 123.5 20.4% New Volume ($ = billions) DLL USA 4.1% 473.0 396.0 77.0 19.4%

BMO Financial Group 11.3% 427.6 421.0 6.6 1.6% Caterpillar Financial $5.7 PNC Equipment Finance 2.3% 143.2 194.7 -51.6 -26.5% CNH Industrial Stonebriar Commercial Finance 12.7% 123.1 12.8 110.3 861.7% Capital 16.2% $5.7 >$100MM in Foreign Activity 29.3% 34,733.8 30,791.2 3,942.7 12.8% (15 Companies Shown Above) 16.4% Volvo <$100MM in Foreign Activity Financial 1.5% 258.3 208.5 49.8 23.9% 13.5% (9 Companies Not Shown) $4.7 18.3% GRAND TOTAL (All 24 Companies) 25.8% 34,992.1 30,999.7 3,992.5 12.9% John Deere 12.8% Financial

Definitions, explanations & footnotes on page 62 $4.5 10.4% new business volume sourced from its parent, up in 2016. John Deere is No. 1 in the group with $14.1 HPE Financial $1.5 billion from $11.6 billion recorded last year. DLL billion in volume, followed by IBM with $13.2 billion, $3.7 moves up to the No. 5 rank for volume, overtaking Caterpillar with $11.2 billion, CNH Industrial with Caterpillar, with a reported $11.6 billion in vendor $9.1 billion and Volvo with $6.8 billion. 6.2% PACCAR Financial channel originations, up $785 million, or 7.3%, from The Foreign Affiliates are the third largest contrib- $2.2 $10.8 billion in 2016. utors to new business volume, accounting for 10.9% 6.2% Banc of America Leasing of the aggregate originations reported by the Monitor $2.2 SEGMENT PERFORMANCE 100 companies, or $21.4 billion, up an impressive 34% Other Three segments — U.S. Bank Affiliates, Captives and ($5.4 billion) year-over-year from nearly $16 billion in $6.4 Foreign Affiliates — reported year-over-year increases 2016. DLL amassed the most volume of the group, Numers ma not add due to rounding in new business volume while the Independents $11.6 billion, followed by SMBC with $7.3 billion, and Not Elsewhere Classified segments reported CSI Leasing with $1.1 billion, Societe Generale declines. The largest group, the U.S. Bank Affiliates, with $821.9 million and Hitachi with $574.9 million. contributed 47.1% of the aggregate Monitor 100 new The new business volume generated by the business volume, or $92.7 billion in originations, up Independents made up 4.7% of the Monitor 100 $5.8 billion (6.6%) from $86.9 billion in 2016. Banc total, or $9.2 billion, down $2.2 billion (-19.4%) of America’s $15.8 billion in originations was the from $11.5 billion last year. Air Lease was the top highest of the group, followed closely by Wells Fargo volume producer of this group with $1.97 billion with $15 billion. Coming in third for the banks is PNC recorded followed by Ascentium Capital, which with $6.2 billion, followed by Key with $5.6 billion broke through the $1 billion originations ceiling for and U.S Bank Equipment Finance with $4.7 billion. the first time. Stonebriar, coming in third, is not The second largest segment by volume is the far behind Ascentium with $970.8 million followed Captives, providing 36.4% of the collective total, or closely by GreatAmerica Financial Services with $71.6 billion, up $4.1 billion (6%) from $67.6 billion $922 million and GATX with $603.4 million.

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Sell Side Based on Data Supplied by 41 Respondents Indicating Syndicated Volume ($ = millions) 2017 2016 SYNDICATED FEE % OF SYN SYNDICATED FEE % OF SYN COMPANY VOLUME INCOME VOLUME VOLUME INCOME VOLUME Wells Fargo Equipment Finance 1,015.0 11.0 1.1% 821.0 8.0 1.0% MUFG (Leasing & Asset Finance) 561.0 2.0 0.4% 747.7 2.0 0.3% DLL USA 359.0 8.6 2.4% 135.0 20.0 14.8% BMO Financial Group 345.1 11.3 3.3% 329.6 8.4 2.5% First American Equipment Finance 12 230.6 0.7 0.3% 0.0 0.0 N/A Crossroads Equipment Lease & Finance 15 55.3 1.4 2.5% 60.7 1.5 2.5% $21.96B Societe Generale Equipment Finance USA 44.4 0.7 1.6% 63.5 1.2 1.9% 18 Banc of America Leasing’s California First National Bancorp 43.1 2.3 5.2% 26.8 1.0 3.6% total 2017 new business First Midwest Equipment Finance 39.0 1.1 2.8% 35.0 1.9 5.4% volume when you add the >$35MM in Syndicated Volume $6.1 billion of sell side 2,692.5 39.1 1.5% 2,219.3 44.0 2.0% (9 Companies Shown Above) syndication activity not <$35MM in Syndicated Volume included in the volume 222.2 4.4 2.0% 249.1 6.1 2.4% ranking data. (15 Companies Not Shown)

Fee Income Disclosed (24 Companies) 2,914.7 43.5 1.5% 2,468.4 50.1 2.0%

Banc of America Leasing 6,130.9 6,708.3 J.P. Morgan Equipment Finance 5 1,329.2 770.8 Citizens Asset Finance 555.3 484.7 Key Equipment Finance 4 554.5 393.3 U.S. Bank Equipment Finance 500.2 419.1 PNC Equipment Finance 336.0 439.1 MB Equipment Finance 10 250.0 120.5 SunTrust Equipment Finance & Leasing 249.8 172.3 Fifth Third Equipment Finance 187.8 182.4 >$100MM Fee Income Neg or Not Disclosed 10,093.7 9,690.5 4.4% (9 Companies Shown Above) The new business volume <$100MM Fee Income Neg or Not Disclosed forecast for 2018 predicted 330.7 253.0 by the 85 Monitor 100 (8 Companies Not Shown) participants that provided GRAND TOTAL (41 Companies) 13,339.2 12,411.9 an outlook for 2018, translating into $205.4 billion of lease and loan Definitions, explanations & footnotes on page 62 originations if realized.

The Not Elsewhere Classified segment provided Volvo (69.8%), CSI (68%), CNH (61.9%), HPE (60%), just below 1% of the aggregate new business volume, Caterpillar (51.1%) and PACCAR Financial (50.2%). or $1.8 billion, down $52.2 million (-2.9%) on a year- over-year basis. NOTABLE PERFORMANCES SMBC recorded a $4.7 billion year-over-year increase FOREIGN ORIGINATIONS in new business volume, posting $7.3 billion by year- Volume originating outside the U.S accounted for end 2017, up 179.9% from $2.6 billion in 2016. Key 25.8% of the total, or nearly $35 billion. Notable Equipment Finance had a gain of $1.8 billion in increases in foreign activity included Stonebriar with originations, resulting in a total of $5.6 billion. 861.7%, Dell with 81.6%, Wells Fargo with $41.5%, Dell‘s posted originations of $5.2 billion were $1.8 John Deere with 26.6% and CSI Leasing with 20.4%. billion (51.7%) higher than its 2016 volume of $3.4 PNC reported a decrease of 26.5% in foreign volume. billion. IBM’s year-over-year increase of $1.6 billion Six U.S. domiciled companies originated more than resulted in total 2017 new business volume of $13.2 50% of their volume from foreign sources, including billion, up 13.6% from $11.6 billion in 2016. PNC’s

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Buy Side Based on Data Supplied by 61 Respondents Indicating Buy-Desk Activity ($ = millions) 2017 2016 ‘17 VS ‘16 BUY-DESK % TOTAL BUY-DESK % TOTAL VARI % COMPANY VOLUME VOLUME VOLUME VOLUME +/- CHANGE MassMutual Asset Finance 1,681.4 96.1% 1,742.6 96.7% -61.2 -3.5% Signature Financial 1,123.8 61.0% 847.1 60.6% 276.7 32.7% MB Equipment Finance 10 1,102.8 65.7% 1,153.3 73.1% -50.5 -4.4% Fifth Third Equipment Finance 936.5 48.5% 1,222.2 53.5% -285.7 -23.4% Wells Fargo Equipment Finance 900.0 6.0% 997.0 6.8% -97.0 -9.7% BB&T Equipment Finance 8 585.7 39.0% 457.4 36.4% 128.3 28.0% TCF Equipment Finance/Winthrop Resources 545.2 22.0% 648.5 30.3% -103.3 -15.9% $1.68B Regions Equipment Finance 509.0 17.6% 372.9 16.3% 136.1 36.5% The amount of buy-side volume reported by MassMutual Asset U.S. Bank Equipment Finance 428.0 9.2% 326.0 7.2% 102.0 31.3% Finance — ranked No. 1 as Financial Pacific Leasing 403.8 62.2% 369.0 69.2% 34.8 9.4% the most active 2017 buy-side Wintrust Asset Finance 398.4 73.8% 296.5 72.4% 101.9 34.4% player in the Monitor 100. City National Capital Finance 361.3 62.9% 118.0 38.4% 243.3 206.2% Stonebriar Commercial Finance 327.3 33.7% 390.3 53.3% -63.0 -16.1% Sterling National Bank EFD 320.0 81.0% 200.0 80.0% 120.0 60.0% BankUnited 310.2 59.1% 157.2 38.4% 153.0 97.3% People's Capital & Leasing 287.8 39.6% 261.0 35.3% 26.8 10.3% PNC Equipment Finance 279.3 4.5% 270.9 5.7% 8.4 3.1% Key Equipment Finance 4 278.7 4.9% 166.3 4.4% 112.4 67.6% Stearns Bank 242.3 37.8% 215.2 37.3% 27.1 12.6% SunTrust Equipment Finance & Leasing 239.9 17.1% 180.6 13.4% 59.3 32.8% BB&T Commercial Equipment Capital 13 212.5 44.5% 210.4 41.4% 2.1 1.0% Pawnee Leasing 201.2 100.0% 137.9 100.0% 63.3 45.9% TD Equipment Finance 9 177.7 17.1% 129.9 13.3% 47.8 36.8% $4.7B CapitalSource Corporate Asset Finance 164.9 48.8% 85.0 25.3% 79.9 94.0% The magnitude of the largest Hancock Whitney Equipment Finance 14 151.0 41.0% 109.0 34.9% 42.0 38.5% year-over-year volume increase reported by SMBC Leasing Banc of America Leasing 150.7 1.0% 159.3 1.0% -8.6 -5.4% and Finance, which included Santander Bank 150.0 37.5% 200.0 41.7% -50.0 -25.0% a $2.78 billion acquisition of Hitachi Capital America 11 141.4 24.6% 254.8 36.1% -113.4 -44.5% American Railcar Leasing from Icahn Enterprises. Navitas Credit 130.2 40.3% 93.0 33.7% 37.2 40.0% SMBC Leasing and Finance 119.5 1.6% 119.0 4.5% 0.5 0.4% Somerset Capital Group 102.6 40.0% 109.8 39.8% -7.2 -6.6% >$100MM from Indirect Sources 12,963.1 16.4% 12,000.1 17.5% 963.0 8.0% (31 Companies) <$100MM from Indirect Sources 935.3 3.6% 1,018.9 4.1% -83.6 -8.2% (30 Companies Not Shown)

COMBINED TOTAL (61 Companies) 13,898.4 13.2% 13,019.0 13.9% 879.3 6.8%

Definitions, explanations & footnotes on page 62

gain of $1.5 billion pushed the bank beyond the $6 $14.1 billion as of year-end 2017. billion mark, a 30.4% increase from $4.8 billion last F.N.B. achieved year-over-year volume growth of year. John Deere also recorded an increase just over 99.3%, reporting $273 million in originations. Willis the $1 billion mark, bringing its total originations to Lease Finance had the third-highest percentage gain

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(91.7%) with $345 million in volume, up $165 million of volume, including portfolio purchases accounted GREATEST year-over-year from $180 million. City National for 3% of aggregate originations, or $4.3 billion, up Capital Finance posted an 87.2% increase with its $2.6 billion (158.7%) from $1.7 billion last year. CONCERNS $574.6 million in volume while First American’s Based on Responses From 76% increase propelled the company beyond the $1 VOLUME FORECAST 83% of Monitor 100 Participants billion mark for 2017 originations. Other noteworthy To create an outlook for 2018, 85 companies provided percentage gains included Crestmark (66.4%), forecasts regarding their anticipated new business Competition Sterling (58%), First Hawaiian Leasing (50.2%), Key volume. Of the group, 76 (89%) expect to increase (8 ompanies) (47.5%), Pawnee Leasing (45.9%), United Leasing & their volume, six (7%) anticipate a year-over-year Finance (37.5%), Amur Equipment Finance (37.3%), decrease and three (4%) predict their originations to Stonebriar (32.6%), Wintrust Asset Finance (31.8%) remain the same. Using an average weighted basis 57.8% and Signature Financial (31.8%). to make the calculation, the group forecast 4.4% in Several companies joined the $1 billion club in 2018 new business volume growth, which would terms of volume: First American reported volume result in $205.4 billion in originations, an increase of of $1.1 billion, up from $605.7 million in 2016; $8.7 billion. Last year’s group predicted an increase TD Equipment Finance recorded originations of 7.8% — a bit lower than the 8.9% achieved by the of $1 billion, up from $974.8 million last year and Monitor 100 companies this year. 27.9% Economy/ Ascentium Capital’s volume rose to $1 billion up Capital SUMMARY Spending from $898.5 million in 2016. Although Banc of America held its own this year, (1 ompanies) Wells Fargo still has an opportunity to pull ahead in Credit Quality ORIGINATION SOURCE MIX 4.8% of Customers Captive originations increased by 9.8% ($5.9 billion) the future. We’ll be keeping a close eye on this match ( ompanies) up next year. In this period of extended economic 2.4% in 2017, providing 40% of total volume or nearly $66 Regulatory Constraints expansion and growth in capital expenditures, we (2 ompanies) billion in parent-related volume. Originations from the direct, vendor and indirect channels also have can’t wait to see what the Monitor 100 companies will 2.4% Margin Compression (2 ompanies) increased, accounting for 37%, 24% and 8% of the achieve in 2018. 2.4% Geopolitical Environment grand total, respectively. In 2017, aggregate direct The industry is evolving. Managed services are (2 ompanies) originations totaled $62 billion, up $8.8 billion (16.5%) replacing traditionally structured deals, consumables 7.2% Other from $53.2 billion in 2016. Vendor channel activity are being bundled in with equipment and “as-a- ( ompanies) accounted for nearly $40 billion in 2017, growing by service” offerings are often seen as a better option 6.1% ($2.3 billion) year over year from $37.6 billion than ownership. As these changes develop, so must Other Included: Tax reform, Cost of funds, Interest rates, Hiring in 2016. Indirect volume was $13.9 billion, up $659 the Monitor 100. In the coming year, Monitor’s staff million (5%) on a year-over-year basis. Other sources intends to collaborate with the companies who so

Year/Year Highlights & Forecasts 2018 Forecasts Based on Responses From Monitor 100 Participants PORTFOLIO ORIGINATIONS FTE STAFF earear ane (1 s 1) earear ane (1 s 1) earear ane (1 s 1) UP DOWN UP DOWN UP DOWN NO CHANGE 83 17 67 33 62 20 15

Responded

80 8 88 Responded Responded Responded

Foreast (2018) Foreast (2018) Foreast (2018) INCREASE DECREASE NO CHANGE INCREASE DECREASE NO CHANGE INCREASE DECREASE NO CHANGE 70 6 4 76 6 3 67 5 16

*Does not include Boeing Capital, Dell Financial, IBM Global Financing

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YE/17 FTE YE/18 STAFFING STAFFING MIX FORECAST By Segment (Sample size = 97) By Segment (Sample size = 88)

% BY SEGMENT % OF FTE INCREASE U.S. Banks U.S. Banks 14,247 +376

Independents Independents 4,653 +157 14.6% 89% 45.8% 15.0% The percentage of the 85 35.0% Monitor 100 companies 29.8% forecasting a year-over-year increase in 2018 new business origination activity. 30.4% 20.4%

Captives Captives 9,467 +320

8.7% Foreign Af liates Foreign Af liates 2,718 +219

0.04% NEC 0.2% NEC 13 +2

graciously provide the data that makes this report to oil and gas related segments. We also experienced possible, to discuss the rapidly changing environ- continued pricing pressure and relied upon our strong ment and how we can adapt this report accordingly. relationships with our bank clients and vendor part- We also will welcome feedback and ideas from our ners to maintain spreads. readers. Please send your thoughts to Managing Independent: Transitioning from an IT market that Editor Rita Garwood at [email protected]. was ownership-based to an “as-a-Service” model. As always, we give a hearty thanks to the equip- 76% Foreign Affiliate: Transportation market and rising Of the 88 Monitor 100 ment finance companies that complete our annual rates. companies providing staffing survey and make this report possible. Monitor’s staff U.S. Bank Affiliate: The most significant market forecast data, the percentage appreciates the time and consideration given to us by challenges for 2017 surrounded the political climate planning to add FTE staff each participant. m and anticipated tax law and accounting rule changes. members in 2018. RETROSPECTIVE The uncertainty surrounding these issues created Each year, we ask Monitor 100 participants to enough doubt in the mind of our clients that many provide an overview of the challenges they faced in major capital expenditures were deferred. This was the preceding year. The following are a sample of exacerbated in the large-ticket sector by the volatility the responses: of the energy markets. U.S. Bank Affiliate: Price compression continued to Independent: There is plenty of access to funding erode new business margins. Regulatory constraints but the staffing of credit and operations departments limited our ability to offset the compression with needs to increase. higher yielding opportunities. U.S. Bank Affiliate: M&A activity is strong in the Independent: Making the right investments in leasing sector. Flattening yield curve along with human capital, technology; constantly reviewing our continued ample capital in the market continues to process to build capacity to keep up with the growth pressure margins. we had in 2017. Independent: Competition at low rates was the Captive: Focusing on credit and customer service biggest challenge. Equity capital was abundant, but excellence and reduction of non-performing assets. decent deal flow at the right rates was limited. U.S. Bank Affiliate: Managing our limited exposure

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RANK ASSETS VOLUME STAFF LOCATION company monitor 2017 2017 origination source mix % 20 headquarters (city state) ye/ 17 , ceo/president/unit head 100 segment $=millions $=millions top asset classes website 1st Source Bank Specialty Finance 0/100/0/0/0 South Bend, IN Christopher Craft 38 USB 2,363.7 1,241.8 106 Auto and Truck Fleet, Air (Corp), Construction 1stsource.com AeroCentury 0/0/0/0/100 Burlingame, CA Michael G. Magnusson 88 IND 218.7 39.7 15 Air (Comml) aerocentury.com Air Lease 0/100/0/0/0 Los Angeles, CA John L. Plueger 11 IND 13,280.3 1,972.0 87 Air (Comml) airleasecorp.com Amur Equipment Finance 74/0/25/0/1 Grand Island, NE Mostafiz ShahMohammed 76 IND 319.1 210.7 126 Truck/Trailer, Manufacturing, Construction amuref.com Arvest Equipment Finance 18/82/0/0/0 Fort Smith, AR Eric W. Bunnell 84 USB 248.6 106.6 17 Construction, Truck/Trailer, Manufacturing arvestleasing.com Ascentium Capital 84/10/6/0/0 Kingwood, TX Tom Depping 48 IND 1,359.7 1,004.7 290 Medical, Truck/Trailer, Furniture/Fixtures ascentiumcapital.com AT&T Capital 0/0/0/100/0 Park Ridge, IL Jeffrey Mason 100 CAP 94.0 120.0 31 Telecomm, IT, Office Related att.com Banc of America Leasing 22/77/1/0/0 Providence, RI Richard R. Fleischer 1 USB 51,651.8 15,825.3 612 IT, Truck/Trailer, Air (Corp) leasing.bankofamerica.com BancorpSouth Equipment Finance 0/100/0/0/0 Hattiesburg, MS Kyle Gilliam 81 USB 294.5 68.5 17 Construction, Medical, Truck/Trailer bxsef.com Bank of the West 7 63/32/0/0/5 San Francisco, CA Tristan Watkins 30 USB 4,098.3 1,629.0 227 Construction, Agriculture, Manufacturing bankofthewest.com BankUnited 0/41/59/0/0 Hunt Valley, MD Dan McKew 42 USB 1,637.4 525.1 63 Furniture/Fixtures, Truck/Trailer, Air (Comml) bridgefundinggroupinc.com BB&T Comm’l Equipment Capital 13 31/23/44/0/2 Malvern, PA Joseph Thompson 54 USB 1,025.7 477.3 72 Truck/Trailer, Furniture/Fixtures, Office Related susquehanna.net/scf BB&T Equipment Finance 8 0/61/39/0/0 Towson, MD Tom Jaschik 31 USB 3,946.9 1,501.6 52 Truck/Trailer, IT, Air (Corp) bbt.com (parent) BBVA Compass Equipment Finance 0/100/0/0/0 Westlake, OH Mark S. Marinik 74 USB 336.4 9.5 6 Truck/Trailer, Medical, Mats Handling bbva.com Beneficial Equipment Finance 84/1/15/0/0 Chester Springs, PA Joseph Pucci 96 USB 141.2 60.9 23 Medical, Comm’l Laundry Equipment, Printing thebeneficial.com/leasing BMO Financial Group 0/77/2/21/0 Milwaukee, WI THE 2018 MONITOR 100 Dave Casper 16 USB 10,976.7 3,792.5 744 Truck/Trailer, Manufacturing, Air (Corp) bmoharrisbank.com (parent) Boeing Capital 0/0/0/100/0 Renton, WA Timothy Myers 33 CAP 3,003.0 480.0 WND Air (Comml) boeing.com (parent) California First National Bancorp 18 0/100/0/0/0 Irvine, CA Patrick Paddon 91 USB 192.7 107.6 97 Manufacturing, IT, Truck/Trailer calfirstbancorp.com Canon Financial Services 26/0/0/74/0 Mount Laurel, NJ Yoshinori Shimono 40 CAP 1,985.6 939.7 288 Office Related, Printing, Medical cfs.canon.com CapitalSource Corp Asset Finance 0/51/49/0/0 Chicago, IL Maureen Carr 57 USB 919.5 338.1 12 Rail, Air (Comml), Energy Related capitalsource.com Caterpillar Financial 0/2/1/97/0 Nashville, TN Dave Walton 4 CAP 30,966.2 11,224.0 1,855 Construction, Mining, Marine cat.com CBI Equipment Finance 0/78/22/0/0 St. Louis, MO Dwight Erdbruegger 53 USB 1,028.0 288.0 32 Truck/Trailer, Air (Corp) commercebank.com CCA Financial 5/51/24/0/20 Richmond, VA Kim Albers 86 IND 221.6 101.5 40 IT, Manufacturing, Medical ccafinancial.com CIT Group WND New York, NY Ellen Alemany 8 USB 15,590.0 2,751.7 3,909 WND cit.com Citizens Asset Finance 0/99/1/0/0 Providence, RI Marc Paulhus 27 USB 4,785.0 954.2 100 Truck/Trailer, Air (Corp), Construction citizensbank.com (parent) City National Capital Finance 0/37/63/0/0 Orlando, FL Thomas L. Cira 62 USB 783.5 574.6 33 Franchise Finance Lending, Air (Corp), Rail citynational.com CNH Industrial Capital 0/0/0/100/0 Racine, WI Oddone Incisa 7 CAP 16,440.0 9,145.0 1,285 Agriculture, Truck/Trailer, Construction cnhindustrialcapital.com/en_us Continental Bank 5/29/60/0/6 Salt Lake City, UT Nathan Morgan 99 USB 127.4 48.7 41 Truck/Trailer, Construction, Manufacturing cbankus.com Crestmark Equipment Finance 11/67/7/11/4 Bloomfield Hills, MI Thomas Rutherford 80 USB 306.0 211.3 79 IT, Capital Equipment, Truck/Trailer crestmark.com Crossroads Equip Lease & Finance 15 29/0/31/40/0 Rancho Cucamonga, CA Howard Shiebler 75 IND 321.2 176.7 59 Truck/Trailer, Construction crlease.com CSI Leasing 0/100/0/0/0 St. Louis, MO Steve Hamilton 45 FOR 1,601.2 1,071.6 1,016 IT, Telecomm csileasing.com Dell Financial 6 0/0/0/100/0 Round Rock, TX Bill Wavro 21 CAP 6,864.6 5,228.7 WND IT dfs.us.dell.com DLL USA 100/0/0/0/0 Wayne, PA William Stephenson 10 FOR 14,492.0 11,595.0 1,370 Agriculture, Printing, Construction dllgroup.com Eastern Funding 3/97/0/0/0 New York, NY Michael Fanger 61 USB 786.3 325.7 70 Truck/Trailer, Coin Laundry, Grocery easternfunding.com ENGS Commerical Finance 95/5/0/0/0 Itasca, IL Craig Weinewuth 65 IND 596.0 375.0 167 Truck/Trailer, Machine Tools/Plastics, Construction engsfinance.com EverBank Commercial Finance 95/5/0/0/0 Parsippany, NJ John Pataky 36 USB 2,630.0 1,028.0 202 Office Related, Medical, IT commercial.everbank Farm Credit Leasing 0/98/2/0/0 Minneapolis, MN Mike Romanowski 28 USB 4,759.3 1,766.3 144 Agriculture, Energy Related, Truck/Trailer fcleasing.com Fifth Third Equipment Finance 0/52/48/0/0 Cincinnati, OH Ernie Tsorvas 20 USB 7,322.0 1,931.9 77 IT, Truck/Trailer, Telecomm 53.com Financial Pacific Leasing 12/19/62/0/7 Federal Way, WA Paul J. Menzel 51 USB 1,166.8 649.1 213 Truck/Trailer, Medical, Construction finpac.com First American Equipment Finance 12 3/96/1/0/0 Fairport, NY Alan Sikora 47 USB 1,417.4 1,065.9 213 IT, Office Related, Air (Corp) faef.com

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RANK ASSETS VOLUME STAFF LOCATION company monitor 2017 2017 origination source mix %20 headquarters (city state) ye/ 17 , ceo/president/unit head 100 segment $=millions $=millions top asset classes website First Hawaiian Leasing 0/100/0/0/0 Honolulu, HI Darlene Blakeney 92 USB 172.0 39.5 13 Transportation, Office Related, Truck/Trailer fhb.com (parent) First Midwest Equipment Finance 63/28/3/6/0 Elk Grove Village, IL Chris Chiappetta 85 USB 223.0 161.0 30 Truck/Trailer, Construction, Machine Tools/Plastics netlease.com FNB Equipment Finance 58/42/0/0/0 Pittston, PA Gary Cook 72 USB 439.0 273.0 31 Truck/Trailer, Manufacturing, Construction fnbequipmentfinance.com Forsythe/McArthur Assoc., A Sirius Co.19 0/100/0/0/0 Skokie, IL Joe Mertens 93 IND 171.0 120.8 12 IT forsythe.com Frost Equipment Leasing & Finance 0/100/0/0/0 San Antonio, TX Harry Kaplun 66 USB 585.0 251.0 11 Air (Corp), Truck/Trailer, Construction frostbank.com GATX 0/100/0/0/0 Chicago, IL Brian A. Kenney 22 IND 6,321.8 603.4 2,267 Rail, Marine gatx.com GreatAmerica Financial Services 96/0/4/0/0 Cedar Rapids, IA Tony Golobic 41 IND 1,912.2 922.0 451 Office Related, Telecomm, Automotive Repair greatamerica.com GSG Financial 34/29/0/35/2 New York, NY Andrew Bender 98 IND 131.7 77.8 15 Mats Handling, Printing, IT gsgfinancial.com Hancock Whitney Equip Finance 14 0/59/41/0/0 New Orleans, LA Chris Bucher 64 USB 672.0 368.0 12 Truck/Trailer, Telecomm, Mats Handling hancockwhitney.com/equipment-finance Hanmi Bank Comm’l Equip Leasing 36/0/14/0/50 Irvine, CA David Normandin 77 USB 314.7 175.9 15 Medical, Mats Handling, Manufacturing equipment.hanmi.com Hitachi Capital America 11 69/0/25/0/6 Norwalk, CT Ryan Collison 37 FOR 2,379.5 574.9 189 Medical, Truck/Trailer, Energy Related hitachicapitalamerica.com HPE Financial Services 3 WND Berkeley Heights, NJ Irv Rothman 13 CAP 12,893.0 6,085.4 1,320 WND hpe.com/hpefinancialservices Huntington Asset Finance WND Columbus, OH Mike Dicecco 29 USB 4,503.0 1,788.7 242 Truck/Trailer, IT, Rail huntington.com IBM Global Financing 2 0/0/0/100/0 Armonk, NY William J. Smith III 5 CAP 20,180.0 13,191.0 WND IT ibm.com/financing J.P. Morgan Equipment Finance 5 0/100/0/0/0 Columbus, OH John Goldthorpe 19 USB 8,501.0 2,830.8 89 IT, Air (Corp), Truck/Trailer jpmorganchase.com/commercialbanking John Deere Financial 1 0/0/0/100/0 Johnston, IA Cory J. Reed 3 CAP 37,248.7 14,116.3 2,232 Agriculture, Construction johndeerefinancial.com Jules and Associates 0/100/0/0/0 Los Angeles, CA Jules Buenabenta 83 IND 272.5 140.4 50 Manufacturing, Construction, Truck/Trailer julesandassociates.com Key Equipment Finance 4 29/66/5/0/0 Superior, CO Adam Warner 14 USB 12,350.9 5,638.4 363 IT, Energy Related, Truck/Trailer keyequipmentfinance.com Kingsbridge Holdings 0/86/14/0/0 Lake Forest, IL Dan Flagstad 69 IND 447.0 200.9 90 IT, Mats Handling, Medical kingsbridgeholdings.com LEAF Commercial Capital 100/0/0/0/0 Philadelphia, PA Crit DeMent 56 USB 982.7 466.2 242 Office Related, IT, Telecomm leafnow.com Lease Corporation of America 16 84/0/12/0/4 Troy, MI John B. Kemp 88 IND 218.7 125.7 89 Telecomm, Automotive Repair, IT leasecorp.com M&T Bank 0/95/5/0/0 Baltimore, MD Frank Campagna 46 USB 1,451.0 579.0 52 Truck/Trailer, Air (Corp), Manufacturing mtb.com Marlin Business Services 87/0/13/0/0 Mount Laurel, NJ Jeff Hilzinger 58 USB 914.4 629.4 330 Office Related, Commercial/Industrial, Restaurant marlinfinance.com MassMutual Asset Finance 0/4/96/0/0 Foxborough, MA David Coutu 23 NEC 6,318.0 1,750.4 13 IT, Energy Related, Truck/Trailer massmutual.com (parent) MB Equipment Finance 10 0/34/66/0/0 Rosemont, IL Jill York 35 USB 2,868.0 1,678.8 301 IT, Medical, Mats Handling mbfinancial.com Merchants Bank Equip Finance 50/22/27/0/1 Minneapolis, MN Richard Barry 87 USB 219.5 86.5 12 Construction, Agriculture, Truck/Trailer merchantsbankef.com MUFG (Leasing & Asset Finance) 0/100/0/0/0 Los Angeles, CA Lance Markowitz 24 USB 5,325.0 1,334.0 52 WND mufg.jp Navitas Credit 55/5/40/0/0 Ponte Vedra, FL Gary R. Shivers 71 IND 441.5 323.4 125 WND navitascredit.com Northland Capital Financial Services 17 38/42/20/0/0 Saint Cloud, MN Willis Kleinjan 90 IND 212.7 144.0 41 Agriculture, Truck/Trailer, Construction northlandcapital.com Onset Financial 0/97/3/0/0 South Jordan, UT Justin Nielsen 95 IND 159.7 82.9 75 Air (Corp), Manufacturing, Furniture/Fixtures onsetfinancial.com PACCAR Financial 0/0/0/100/0 Bellevue, WA Bob Bengston 12 CAP 13,202.3 4,328.1 1,049 Truck/Trailer paccar.com Pawnee Leasing 0/0/100/0/0 Fort Collins, CO Gary H. Souverein 78 IND 314.7 201.2 87 Furniture/Fixtures, Construction, Medical pawneeleasing.com People’s Capital & Leasing 18/42/40/0/0 Bridgeport, CT Michael Urquhart 39 USB 2,102.9 726.0 71 Truck/Trailer, Printing, Construction peoples.com PNC Equipment Finance 36/60/4/0/0 Cincinnati, OH Richard J. Doherty 9 USB 15,378.0 6,222.1 458 Truck/Trailer, Air (Corp), IT pnc.com/ef Regions Equipment Finance 0/82/18/0/0 Birmingham, AL William C. Perry 18 USB 9,593.5 2,900.2 50 Municipal, 501(c)(3), Truck/Trailer regions.com (parent) Santander Bank 0/62/38/0/0 Florham Park, NJ Vincent Belcastro 49 USB 1,200.0 400.0 22 Truck/Trailer, Construction, Telecomm santanderbank.com/equipment-finance Signature Financial 0/39/61/0/0 Melville, NY Walter Rabin 32 USB 3,495.8 1,843.4 119 Truck/Trailer, Construction, Manufacturing signatureny.com SMBC Leasing and Finance 0/54/1/0/45 New York, NY David A. Ward 17 FOR 9,644.3 7,326.0 98 Rail, Air (Comml), IT smbcgroup.com Societe Generale Equip Finance USA 99/0/1/0/0 Jersey City, NJ Danny Lam 52 FOR 1,094.8 821.9 45 IT, Construction, Truck/Trailer sgef.us Somerset Capital Group 1/59/40/0/0 Milford, CT Evan Bokor 67 IND 569.9 256.4 104 Mats Handling, IT, Aircraft Ground Support somersetcapital.com

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RANK ASSETS VOLUME STAFF LOCATION company monitor 2017 2017 origination source mix %20 headquarters (city state) ye/ 17 , ceo/president/unit head 100 segment $=millions $=millions top asset classes website SQN Capital Management 0/80/20/0/0 New York, NY Jeremiah Silkowski 59 IND 883.6 164.2 48 Energy Related, Manufacturing, Construction sqncapital.com Stearns Bank 45/17/38/0/0 Albany, MN Kelly Skalicky 50 USB 1,191.8 641.0 151 Construction, Medical, Agriculture stearnsleasing.com Sterling National Bank EFD 0/19/81/0/0 New York, NY Keith W. Smith 63 USB 687.0 395.0 8 Manufacturing, Truck/Trailer, IT snb.com Stonebriar Commercial Finance 0/66/34/0/0 Plano, TX Dave B. Fate 43 IND 1,614.8 970.8 44 Air (Corp), Manufacturing, Marine stonebriarcf.com SunTrust Equip Finance & Leasing 18/65/17/0/0 Atlanta, GA Paul Severn 26 USB 4,866.3 1,401.2 119 Truck/Trailer, Manufacturing, IT suntrust.com (parent) TCF Equip Fin/Winthrop Resources 38/14/22/0/26 Minnetonka, MN Gary Peterson / Paul Gendler 25 USB 5,227.9 2,478.0 400 Truck/Trailer, Construction, Specialty Vehicles tcfbank.com (parent) TD Equipment Finance 9 11/72/17/0/0 Cherry Hill, NJ Anthony R. Sasso 34 USB 2,963.6 1,040.4 77 Truck/Trailer, Energy Related, IT tdbank.com Trans Lease 33/67/0/0/0 Denver, CO Brian Eschmann 70 IND 443.2 214.2 49 Truck/Trailer, Construction, Energy Related transleaseinc.com U.S. Bank Equipment Finance 50/41/9/0/0 Portland, OR Anthony Cracchiolo 15 USB 11,296.2 4,664.6 974 Office Related, IT, Machine Tools/Plastics usbank.com (parent) UniFi Equipment Finance 24/30/44/0/2 Ann Arbor, MI R. J. Grimshaw 94 USB 163.3 97.0 25 Truck/Trailer, Machine Tools/Plastics, Mfg teamunifi.com United Leasing & Finance 24/30/44/0/2 Evansville, IN Ronald D. Romain 73 IND 362.0 176.0 69 Transportation, Fitness, Manufacturing unitedevv.com VAR Technology Finance 84/16/0/0/0 Mesquite, TX Gary Sutton 97 IND 137.7 171.7 75 IT vartechnologyfinance.com Volvo Financial Services 0/0/0/100/0 Greensboro, NC Scott Rafkin 6 CAP 18,371.4 6,773.7 1,407 Truck/Trailer, Construction, Bus vfsco.com Wallwork Financial 25/47/16/12/0 Fargo, ND William Wallwork III 82 IND 275.4 116.3 23 Truck/Trailer, Energy Related, Construction wallworkfinancial.com Webster Capital Finance 2/86/10/2/0 New Britain, CT Mike Giusto 68 USB 550.2 130.4 27 Truck/Trailer, Construction, Buses/Motor Coaches webstercapitalfinance.com Wells Fargo Equipment Finance 57/37/6/0/0 Minneapolis, MN THE 2018 MONITOR 100 Bill Mayer 2 USB 48,921.0 15,009.0 2,654 Truck/Trailer, Office Related, Construction wellsfargo.com (parent) Western Equipment Finance 88/4/8/0/0 Devils Lake, ND Laurie A. Bakke 79 USB 312.4 249.2 49 Waste Mgmt, Lawn & Tree Care, Fitness westernequipmentfinance.com Willis Lease Finance 0/100/0/0/0 Novato, CA Charles F. Willis IV 44 IND 1,603.0 345.0 155 Air (Commercial) willislease.com Wintrust Asset Finance 0/26/74/0/0 Frisco, TX Mike Knowles 55 USB 1,005.6 539.9 42 Truck/Trailer, Construction, Manufacturing wintrust.com (parent) Zions Credit 0/100/0/0/0 Salt Lake City, UT Alan Ralphs 60 USB 869.8 361.0 45 Truck/Trailer, Construction, Air (Corp) zionsbank.com (parent)

497,469.9 196,686.0 31,098

DEFINITIONS, EXPLANATIONS & FOOTNOTES

THE BASIS FOR MONITOR 100 RANKING COLLECTING THE MONITOR 100 DATA MONITOR 100 ORIGINATION SOURCE DEFINITIONS A company’s rank is determined by its net investment in equipment-related This year’s survey was sent electronically to potential equipment leasing/finance Vendor/Dealer: Loans/leases originated through a vendor/dealer company that loans & leases (net assets). As depicted on the balance sheet of most leasing companies, which were asked to provide year-end data for net investment and has a relationship with the lessor. companies, net investment in equipment-related loans & leases would include new business volume. Participants were asked to focus ONLY on equipment- Direct/End User: Loans/leases made without an intermediary, negotiated finance leases (net of unearned income, unguaranteed residuals and allowance related loans and leases versus commercial real estate, inventory/receivable directly between a company and a lender or small group of lenders. for losses); operating leases (net of accumulated depreciation) and leverage finance, corporate finance or other activities that are not equipment related. Indirect/Buy Desk: Loans/leases transferred from the originator of the loan leases (net of non-recourse debt). Also included are assets that do not appear on (such as a broker) to a third-party lessor. Of the companies shown, a small number are compiled using public data the balance sheet, but in every other respect are originated and “managed” in (annual report/10-K) to extract the information necessary to represent what Captive: Loans/leases originated through the parent company of a lessor. the normal course of business (e.g., securitizations). we believe is a representative sample of the companies that make up the Other: Loans/leases that do not fall under the other categories, such as loans/ The survey is based on the activity reported by U.S.-domiciled leasing companies. equipment leasing and finance industry in the U.S. leases acquired via an acquisition. U.S.-based affiliates of a parent headquartered in a foreign country only report results from the scope of their U.S. business. MONITOR 100 PARTICIPATION MONITOR 100 FOOTNOTES To qualify for inclusion in the Monitor’s annual ranking of the top 100 equipment 1 John Deere Financial 11 Hitachi Capital America COMPANY CLASSIFICATIONS (SEGMENT) leasing/finance companies, or any of our other annual surveys, please contact Rita YE 10/31/2017 YE 3/31/2018 To provide further insight, companies are assigned a segment or classification Garwood at 800.708.9373 x116 or [email protected]. 2 IBM Global Financing 12 First American Equipment Finance 2016 Volume restated to reflect YE 10/31/2017 so they can be viewed in the context of their peers. The “Not Elsewhere accounting adjustments and/or curreny 13 BB&T Commercial Equipment Capital Classified” (NEC) category was created to include companies that do not fit exchange rate changes MONITOR 100 PDF/EXCEL FORMAT fna Susquehanna Commercial Finance into any other defined segment. The Captive segment includes only leasing 3 HPE Financial Services 14 Hancock Whitney Equip Finance YE 10/31/2017 companies with the primary mission of supporting the sale of a parent’s PDF Archives fna Whitney Equipment Finance products. The company is only included if more than 50% of its annual Monitor 100 reports for all published years are also available in PDF format. 4 Key Equipment Finance 15 Crossroads Equip Lease & Finance volume and/or net investment is captive related. To order, call 800.456.2570 or go to monitordaily.com. 2016 assets restated to reflect deferred tax debits 2016 assets restated to reflect inclusion of managed portfolio The segments/classifications used in this report are: Excel Edition 5 J.P. Morgan Equipment Finance You can purchase selected data from this year’s Monitor 100 report in an 2016 assets & volume restated to 16 Lease Corporation of America U.S. Bank Affiliate (USB) Captive (CAP) YE 11/30/2017 easy-to-manipulate Excel spreadsheet. To order, contact Terry Mulreany at exclude business banking Majority owned by a U.S.-based bank Significant portion of current activity 800.456.2570 or [email protected]. 6 Dell Financial 17 Northland Capital Financial Services or financial services parent (e.g., and/or portfolio is related to financing/ YE 1/31/2018 YE 8/31/2017 commercial or investment bank) leasing a parent’s products 7 Bank of the West 18 California First National Bancorp YE 6/30/2017 U.S. Industrial Affiliate (USI) Foreign Affiliate (FOR) MONITOR 100 CUSTOM REPRINTS/LICENSING 2016 assets and volume restated to reflect re-segmentation 19 Forsythe/McArthur Assoc., A Sirius Co. Majority owned by an industrial or Majority owned by a foreign bank To order Monitor 100 reprints, custom PDFs or web licensing, please contact The 8 BB&T Equipment Finance fna Forsythe Technology non-financial services parent or foreign investor YGS Group. YGS is the only authorized provider of customized reprints, e-prints 2016 assets restated to correct prior 20 Origination Source Mix (%) Independent (IND) Not Elsewhere Classified (NEC) and PDFs for the Monitor. For a quote, call 800.501.9571, or e-mail monitor@ year error Vendor/Direct/Indirect/Captive/Other Public or privately owned/operated Does not fall into any of the theYGSgroup.com. 9 TD Equipment Finance YE 10/31/2017 independent of a parent or other other categories WND = Would not disclose 10 MB Equipment Finance entity with controlling interest fna MB Leasing; 2016 assets restated to correct prior year error

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