By Jenny Callison
Enquirer contributor

Frank Pennimpede (center) with Security National CEO Ted Catino (right) and president Becky Catino. The artwork was a gift from the 82nd Airborne Division. The Cincinnati Enquirer/CRAIG RUTTLE

MASON - Ted and Becky Catino give credit to military personnel in more ways than one.

Their company, Security National Automotive Acceptance Corp., purchases loans that finance auto purchases for U.S. service personnel.

And their business philosophy is to expect the best from their clients.

"A significant number of our customers come from humble backgrounds, but they are often rich in character and have a strong sense of commitment and obligation," said Becky Catino, president of the firm.

The philosophy has paid off. Security National has grown tremendously during its 17 years in business. And last year the company's sterling record of credit management enabled it to raise $100 million in capital to purchase even more loans.

"There is capital out there for the right companies," said Ted Catino, who bought Security National with Becky, his wife, in 1989, and serves as CEO.

"Security National is one of the best-run middle market companies I've ever come across. It's a real tribute to Ted and Becky Catino," said Edward Fanning, senior managing director of Provident Capital Corp., which served as Security National's financial adviser and exclusive placement agent for the loan syndication.

The $100 million in new capital came from several lending institutions. U.S. Bank was the lead bank, with Fifth Third as co-agent. Provident Bank, Bank One and Comerica were participating banks, along with American Money Management.

Critical to the company's success, the Catinos say, is its ability to minimize its losses, even though many of its customers are considered high risk.

"We know what customers, what military ranks are the best prospects," explained Frank Pennimpede, who works to develop new relationships with car dealers throughout the country. "And we try to alleviate payment problems from the start by setting up an allotment that allows their car payment to be paid automatically."

Pennimpede himself is a sergeant in the Army Reserve who saw active duty in Kuwait and Iraq from March through July 2003. He knows the pressures of war can make it easy to forget everything else.

Sometimes the car payments stop.

But Ted Catino believes that his associates' approach has enabled many customers to keep both their credit rating and their car.

"Our associates take a great deal of pride in providing professional service to these young people," added Ted Catino. "They treat them with the respect and understanding they deserve."

Sometimes Security National collections staff speak directly with service men and women on active duty in Iraq, Afghanistan or other hot spots. At other times, associates contact family members to make arrangements.

"More often than not, both the soldiers and their families look forward to talking to anybody about their situation," said Jason Nesbit, vice president of collections and customer service. "We have to take care of business. Keeping these customers current on their obligations will only help them when they return. But we also talk of baseball games, weather and what they will do when they get home. You will often hear our customer service reps and our collectors thanking the families and the soldiers for their sacrifices."

It's maintaining this attitude of compassion in the business of collections that has kept Security National on good footing with both its customers and its lenders.

"They've got great people, great systems, and they have put in place great policies and procedures," Fanning said. "Everything at SNAAC runs like a finely tuned machine.

"They work with their customers to help them make their payments and treat them like human beings. They take steps to help them that many finance companies won't. But that doesn't change the way they follow up on past-due payments."

E-mail jcallison@zoomtown.com.