Daily News: October 18, 2013

New AloStar Program Supports Banks Offering Mid-Market ABLs

AloStar Bank of Commerce announced the launch of AloStar Source, a comprehensive program designed to support community and mid-sized banks nationwide, seeking to offer middle-market businesses access to more working capital.

Executive vice presidents Randy Cameron and David Wood, and Vice President Ronald Humphreys will lead the program.

AloStar Source will facilitate larger community and regional banks — typically one bank per major market — to offer current and prospective business clients access to working capital utilizing asset-based loans (ABLs). ABLs are often avoided by commercial banks due to the need for high control, high monitoring and specialized collateral management capabilities. These loans are typically secured by accounts receivable, inventory, equipment, and real estate.

Banks in the AloStar Source program can engage in a referral arrangement with AloStar or a fully integrated strategic alliance — or “co-lending” arrangements. For its strategic partners, AloStar will work with banks to create business plans to complement existing strategies, assist with marketing, provide executive talent and train designated staff and management on the fundamentals of asset-based lending. AloStar will also help create appropriate policies to manage process and risk management, and individually manage and service each loan with a team of dedicated specialists.

“Community banks continue to seek new asset classes in order to grow while diversifying their portfolio and increasing their earnings stream,” said Mike Gillfillan, chairman and CEO of AloStar Bank of Commerce. “AloStar Source will help them do that while also providing capital to the middle-market manufacturers, wholesalers, retailers and service providers that power our economy.”

Cameron has more than 27 years of commercial lending management, underwriting and risk management experience, as well as correspondent banking management, equipment finance and leasing and experience. Prior to joining AloStar, Cameron was CEO of Stonecastle Financial Institution Services in Salt Lake City. Over the course of his career, he has helped a number of banks of all sizes broaden their local reach and manage the risks associated with growth and concentration. Cameron has also held executive positions at Bank One, Zions Bank and Sentry Financial Corporation. Cameron is a graduate of ABA’s Stoner Graduate School of Banking and a former president of the Risk Management Association.

Wood has more than 30 years of experience in both community and money center banks and an extensive track record of underwriting and transaction completion, ranging from small entrepreneurial operations to large international enterprises. Most recently he was president of Stonecastle Financial Institution Services. Prior to his position at Stonecastle, Wood held senior positions at various financial institutions including, JPMorgan Chase, The Chase Manhattan Bank, Zions Bank and Bank of America. Additionally, Wood also has experience in the areas of managed risk, asset generation and commercial lending.

Humphreys has extensive experience in commercial leasing, asset-based and commercial and industrial lending within various industries including aviation, tourism, transportation, financial institutions and middle market business. Prior to joining the AloStar team, he was vice president of commercial underwriting and quality assurance at TAB Bank where he managed portfolios and underwriting of transportation equipment loans and leases for regional and national transportation companies across the country. Humphreys has also held positions at Sentry Financial Corporation, Zions Bank and Stonecastle Partners.