Accord Announces Third Quarter and Nine Months' Earnings, Reports Strong Asset Growth and Declares Regular Quarterly Dividend



    TORONTO, Oct. 24 /CNW/ - Accord Financial Corp. (TSX - ACD) (the
"Company"), a leading North American provider of factoring and other
asset-based financial services to businesses is pleased to announce its
unaudited consolidated financial results for the three and nine months ended
September 30, 2007. The financial figures presented in this release are
reported in Canadian dollars in accordance with Canadian generally accepted
accounting principles.

    -------------------------------------------------------------------------

    

                       SUMMARY OF FINANCIAL RESULTS
                       ----------------------------

                             Three Months                Nine Months
                                 Ended                      Ended
                              September 30                September 30
                           2007          2006          2007          2006
                           ----          ----          ----          ----

    Factoring volume
     (millions)       $        413  $        369  $      1,121  $      1,060


    Revenue           $  7,173,562  $  7,005,528  $ 20,575,438  $ 21,216,697

    Net earnings      $  1,163,201  $  1,459,557  $  4,227,737  $  4,656,578

    Earnings per
     share
      Basic           $       0.12  $       0.15  $       0.45  $       0.47
      Diluted         $       0.12  $       0.15  $       0.44  $       0.47
    Weighted average
     number of shares
      Basic              9,490,117     9,755,956     9,460,399     9,858,297
      Diluted            9,593,812     9,876,577     9,575,692     9,996,878

    

    Net earnings for the third quarter of 2007 declined by 20% to $1,163,201
compared to $1,459,557 last year mainly due to a higher provision for credit
and loan losses and lower "net revenue" (revenue net of interest expense).
Diluted earnings per share were 12 cents for the quarter compared to 15 cents
last year.
    Factoring volume in the third quarter was a strong $413 million, 12%
higher than last year and only $6 million below the previous record third
quarter volume. Revenue increased by 2% to $7,173,562 compared to $7,005,528
last year. Revenue did not rise in the same proportion as volume primarily due
to lower yields.
    Net earnings for the nine months ended Sept. 30, 2007 declined by 9% to
$4,227,737 compared to $4,656,578 in the same period last year. Diluted
earnings per share for the nine months were 44 cents compared to 47 cents last
year.
    Factoring volume for the current nine month period rose by 6% to
$1,121 million compared to $1,060 million last year. Revenue declined by 3% to
$20,575,438 compared with $21,216,697 last year due to reduced yields.
    Commenting on the results, Ken Hitzig, President, stated, "Accord
generated a large increase in new business in the third quarter pushing
outstanding gross factored receivables and loans up by 32% to a record
$105 million at Sept. 30, 2007. As is the Company's practice, this
necessitated a corresponding increase in the allowance for losses, which, in
turn, resulted in an increase in the provision for credit and loan losses in
the current quarter and nine months, more than $500,000 higher than the same
periods last year. This new level of outstandings should produce higher
revenue in the final quarter of the year and into 2008."
    The Company's Board of Directors today declared a regular quarterly
dividend of $0.055 per common share, payable December 3, 2007 to shareholders
of record at the close of business November 15, 2007.

    %SEDAR: 00001979E




For further information:

For further information: Stuart Adair, Chief Financial Officer, Accord
Financial Corp., 77 Bloor Street West, 18th floor, Toronto, ON, M5S 1M2, (416)
961-0304 Ext. 207, sadair@accordfinancial.com


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