The TABloid - Summer 2012l


Fully Customized and Flexible Financing from TAB Bank Allows Company to Continue Growth and Expansion

When TAB Bank was started in 1998 we were known as Transportation Alliance Bank. The name described exactly what we did for the first decade of our existence — we served the needs of the trucking industry. Through the years we built one of the largest portfolios of trucking relationships in the industry. This was accomplished primarily through our Accounts Receivable Financing, Equipment Funding, and Deposit Accounts for our trucking company customers and their drivers. We always intended to be a leader in financing transportation. However, as we grew and matured as a bank, we were also able to take our expertise to other commercial industries, and we have since built a significant portfolio of relationships outside of trucking. We currently provide working capital funding through our Accounts Receivable Financing and Asset-Based Lending programs for many commercial entities from a variety of industries. One such company that recently became a beneficiary of our working capital funding programs is PureTek Corporation of San Fernando, CA.

Since its founding in 1991, PureTek Corporation has grown to be the premier producer of pharmaceutical, nutritional, and personal care products in Southern California. The company manufactures quality branded and private label items for some of the largest retail chains and drug companies in the United States. At their state-of-the-art facilities, PureTek utilizes industry-leading manufacturing and packaging technology, allowing them to produce and distribute a wide array of liquid, tablet, and capsule products.

In order to meet the demand for their products and take advantage of new business opportunities, PureTek relies on their banking, lending, and financial partners to provide financing solutions and services to ensure they can meet and exceed these goals and objectives. Due to the nature of the pharmaceutical, nutritional, and personal care product industries, as well as the relationships PureTek has with its customers, it is vital for them to have flexibility and customization in any lending relationship they enter into. Unfortunately, the finance company that PureTek had been using for its source of working capital financing was failing to provide the needed flexibility. Jole Deal, Chief Financial Officer for PureTek, shared with us the issues they were having at this time, "The finance company we had been with was increasingly becoming less flexible than we needed. At times, our concentration level with certain high-quality customers exceeded their limit. It was difficult, and sometimes costly, to get them to temporarily increase their concentration limit."

So PureTek set out to establish a lending relationship with a financial institution that could customize a solution for their specific financing needs. Their search eventually led them to TAB Bank. Our business development and underwriting teams at TAB took the time to become intimately acquainted with PureTek and the unique aspects of their business. Our team of commercial lending professionals recognized opportunities to create a new financing program for PureTek that would allow them to focus on further establishing and expanding their business. TAB set up a working capital line of credit, based on accounts receivable and inventory, with customization and flexibility being key elements. For PureTek, it was the flexibility that clinched the decision to go with TAB Bank as their new lending partner. Commented Jole, "We liked TAB's flexibility. The people are great as well. The process has been the easiest I had ever experienced. The team at TAB was incredibly professional and helpful."

Let our team of professionals customize a financing line that will help your business succeed and grow. Let us display our lasting commitment in tailoring a solution for you. To get started contact us today at 800-440-4541 or visit us at



When is a Good Time and What Should be Considered?

As companies consider and prepare budgets for a specific time frame there are many considerations that come into play. Typically budgets are prepared to set expectations for operating results and, correspondingly, earnings. However, many companies fail to consider their cash-flow and capital expenditures. These can cause significant heartache to an organization that would otherwise be on a smooth course.

With the economy still crawling along, many companies have foregone investments in capital improvements for several years and projects are starting to move from "nice to have" to "critical." The good news is that banks are flush with cash and interest rates are at all-time lows. The bad news is that many banks are not lending. This leaves finance departments struggling to find ways to take advantage of cheap funds to move ahead with needed capital projects. In addition to stress caused by lenders, other concerns such as regulatory requirements, tax rules, and accounting changes are making the horizon more difficult to discern.

The following factors should be considered when evaluating options for capital expenditures. This list is not intended to be comprehensive, but food for thought.

Interest rates
Interest rates have been consistently low for over three years and are forecast to stay at historically low levels for at least the next year. As the economy improves, however, these rates, particularly the long-term rates, will creep up. This will lead to increased overall cost of capital investments in the future and drives value to companies to invest today.

Tax Rules
In an effort to stimulate the economy the government will, at times, allow for capital investments to be fully depreciated for tax purposes, which can result in significant savings. For example, there is a 50% bonus depreciation in place through 2012. Discuss the pros and cons of such rules with your tax accountant to see whether they will benefit your organization.

One of the biggest hurdles to capital improvements is the cash outlay. Leasing is an option that can significantly reduce up-front cash requirements and allow for smaller monthly payments. Depending on whether the lease can qualify, this option can also reduce the balance sheet impact of asset additions by classifying them as operating leases. This option may help companies meet leverage ratios or other balance sheet covenants imposed by lenders. However, it also impacts an organization's ability to realize any tax benefits and should be evaluated accordingly. Also, proposed accounting changes may impact the value of leases in the future as a means of managing the balance sheet. Check with your accountants to determine whether these changes will impact your company's financial statements.

Other Regulatory Impact
Environmental or other regulatory requirements impact certain industries and can have a significant role in the timing of capital investments. For instance, in the transportation industry changes to emissions requirements for heavy trucks may accelerate new equipment acquisitions because of the cost they add to both the purchase price, as well as ongoing operations. Since these can be very industry-specific it is important to stay abreast of proposed changes and evaluate how these might impact your company.


$5 million
re-discount line of credit for 1st Merchant Funding of Bay Harbor Islands, FL
$4 million
accounts receivable line of credit for VSS Carriers of Carrollton, TX
$1 million
accounts receivable line of credit for Precision Quincy Corp. of Woodstock, IL
$1 million
accounts receivable line of credit for ISYNC Solutions of Tampa, FL
$1 million
accounts receivable line of credit for Virgo Inc. of Tampa, FL
accounts receivable line of credit for Whitestone Transportation of Moselle, MS
Wherever you are, we've been there.


TAB Bank Partnership with Applied Technology Colleges Provides Scholarships to Low to Moderate Income Students

TAB Bank has long partnered with non-profit organizations locally in Utah for the purpose of providing financial assistance and other resources. Two such organizations that TAB has partnered with for this purpose are the Davis Applied Technology College in Kaysville, UT and the Ogden-Weber Applied Technology College in Ogden, UT.

Each of these institutions offers technical education in many high-demand fields. They rely on generous donors such as TAB Bank to fund scholarship and other programs so that students can complete their education and training programs. TAB has been a partner of both schools since 2002 in providing funding for scholarship programs for low to moderate income students.

"TAB Bank has been extremely generous in donating scholarship monies to be used by students who want to attend Davis Applied Technology College. This is critically important, as 71% of the students at the DATC have resources in the very low to moderate income range. Receiving a scholarship can make all the difference in a student's ability to stay in school and learn up-to-date technical skills required by industry. The partnership between TAB Bank and the DATC strengthens services to deserving students. Currently, five students are completing programs in Pharmacy Technician, Medical Office, Firefighting, American Sign Language, and Welding Technology — all funded by TAB Bank," stated JoAnn Matern, Director of Special Projects and Contracts at the Davis Applied Technology College.

Karen Thurber, Development Director at the Ogden-Weber Applied Technology College, stated the following: "Scholarship assistance fills an essential need for low to moderate income students who otherwise would continue to work, often while raising families. The OWATC Foundation strongly believes that job training is the most efficient long-term solution to poverty. Providing even one low-income student the opportunity to earn a training credential can raise a family out of poverty for generations."


She continues, "To date, the generosity of TAB Bank has assisted 48 tech college students. According to the Census, a Weber County resident who earns a training credential will increase his or her income by an average of $1,000 a month. Therefore, the economic impact of TAB's contributions for scholarships has resulted in a return-on-investment of just under $2 million for the state of Utah. But even more important is the lives TAB has touched through its generosity. As one student stated, 'This scholarship will give me new opportunities to grow, including advancement and new challenges where I now work. I will be using my education to better myself and those around me.'"

To learn more about the DATC visit To learn more about the OWATC visit


Milestone Advisors, LLC
Washington, DC

Milestone Advisors, LLC (Milestone) is the financial advisory division of Milestone Merchant Partners, LLC. Milestone is a registered broker/dealer, member of FINRA, and is headquartered in Washington, DC with additional offices in Newport Beach, CA, New York, NY, and Miami, FL.

Founded in 2001, Milestone's core focus is providing investment banking services to institutions and companies within the financial services sector. Milestone's partners and professionals have particular expertise in working with:

• Banks and Thrifts
• Commercial, Consumer, and Mortgage Finance Companies
• Accounts Receivable Management and Business Process Outsourcing Firms
• Insurance and Re-Insurance Companies
• Asset Managers

They advise their clients on:

• Mergers and Acquisitions
• Corporate Finance Solutions
• Restructuring Services
• Other Strategic Initiatives

Since its inception, Milestone has advised on over 150 M&A and capital raise transactions across the financial service sector and has advised on more M&A transactions involving finance companies than any other advisor since 2005 (Source: SNL Financial, LC). In addition, Milestone has raised over $3 billion of capital for financial services companies since 2008.

To learn more about Milestone Advisors, visit, or contact Tim Stute at 202-367-3014 or Milestone is affiliated with Milestone Merchant Partners, LLC. Securities offered through Milestone Advisors, LLC, member FINRA/SIPC. //

Tanner LLC


We are pleased to present our second TAB Bank Trucking Report. Once again, we have compiled some of the most relevant indicators and performance measurements from the trucking industry as well as the economy at large and combined them with some of our own metrics and insight from our large portfolio of trucking clients and transportation receivables.

This information is presented in a slightly different format than the first version we released three months ago. You will find the data easy and fun to read and digest.

We are also pleased to include the Monthly Truck Tonnage Index from the American Trucking Associations in this report. This is a new addition from our first version. This index dropped 1.1% in April after increasing 0.6% in March. We saw similar fluctuation in the sales volume of our core group of 25 clients. Sales increased 7% from February to March but decreased by 4% from March to April. However, sales for this group increased again from April to May by 7%. //

Please click here for the complete TAB Bank Trucking Report.


Fourteen TAB employees panted and puffed their way to the finish line of the Ogden Marathon 5K on Saturday, May 19. We at TAB want to be good neighbors and citizens and participate in worthwhile community events and programs in our own backyard. The Ogden Marathon 5K and all the associated activities that went along with it was a great way for us to accomplish these goals. Proceeds from the Ogden Marathon go toward the GOAL Foundation. The GOAL Foundation is a non-profit organization that was founded shortly after the 2002 Olympic Winter Games. With the assistance of a myriad of local businesses and thousands of volunteer hours, the GOAL Foundation's aim is to attract, organize, support, and encourage premier athletic events that promote an active lifestyle in Northern Utah. To learn more about the Goal Foundation, visit

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