News
March 14, 2013
Member News
Twin Cities Business
(3-12-13)
Three locally-owned Twin Cities banks will be rebranded as one, allowing their parent company to expand offerings both here and nationally. St. Paul-based bank-holding company Sunrise Banks announced Monday that it will consolidate its three Twin Cities bank brands—Franklin Bank, Park Midway Bank, and University Bank—under the Sunrise brand, effective April 1. Sunrise has received regulatory clearance for the merger, and the combined bank will have more than $750 million in assets, eight Twin Cities branch locations, and an office in Sioux Falls, South Dakota. The consolidation comes shortly after Sunrise Chairman Bill Reiling transferred ownership of the business to David Reiling, his son and the company’s CEO. David Reiling, who has served as CEO of Sunrise since 2004, told Twin Cities Business that the ownership succession and bank consolidation plans had been a long time in the making, and the fact that they occurred around the same time was mostly coincidental. Apart from the new name, Sunrise’s local branches will see little change. But the consolidation is meant to allow Sunrise to increase its focus on national products, which will in turn generate capital and allow it to invest further in the Twin Cities, where it may eventually acquire additional banks, Reiling said. The consolidation will also help Sunrise focus on its mission of social responsibility, according to Reiling. Sunrise focuses on what he describes as “under-banked” customers and primarily serves urban communities. Increasing revenue through national products will allow it to reinvest in its Twin Cities operation and the community, he said.
Milwaukee Courier
(3-9-13)
The national law firm of Quarles...
CDBA member Sunrise Banks announced Monday that it will consolidate its three Twin Cities bank brands—Franklin Bank, Park Midway Bank, and University Bank—under the Sunrise brand, effective April 1. Sunrise has received regulatory clearance for the merger, and the combined bank will have more than $750 million in assets, eight Twin Cities branch locations, and an office in Sioux Falls, South Dakota. The consolidation comes shortly after Sunrise Chairman Bill Reiling transferred ownership of the business to David Reiling, his son and the company’s CEO.
David Reiling, who has served as CEO of Sunrise since 2004, told Twin Cities Business that the ownership succession and bank consolidation plans had been a long time in the making, and the fact that they occurred around the same time was mostly coincidental. Apart from the new name, Sunrise’s local branches will see little change. But the consolidation is meant to allow Sunrise to increase its focus on national products, which will in turn generate capital and allow it to invest further in the Twin Cities, where it may eventually acquire additional banks, Reiling said. The consolidation will also help Sunrise focus on its mission of social responsibility, according to Reiling. Sunrise focuses on what he describes as “under-banked” customers and primarily serves urban communities. Increasing revenue through national products will allow it to reinvest in its Twin Cities operation and the community, he said.
Twin Cities Business has the full story.
The CDFI Fund is pleased to have met a critical milestone in the implementation of the CDFI Bond Guarantee Program: the release of the interim rule in the Federal Register on February 5, 2013. Comments are welcomed and are due on April 8, 2013. To ensure that the industry has complete and accurate information about the CDFI Bond Guarantee Program, it posted the PowerPoint presentation used during those information sessions. The presentation can be found on the CDFI Fund’s website. The CDFI Fund hopes the information provided in the presentation will be useful to Qualified Issuer and Guarantee Applicants once the program is fully implemented.
The Office of the Comptroller of the Currency manages a directory of minority-owned financial institutions, including women-owned banks, as well as resources for learning more about these institutions that are often more sensitive to the specialized needs of the communities they serve. In fact, one of the OCC’s recommended resources is MinorityBank.com, which published a listing by Creative Investment Research, Inc. of the top five women- and minority-owned financial institutions, naming the Central Bank of Kansas City as the best bank for women. According to MinorityBank.com, the top five listing was compiled “using 2009 financial, demographic, HMDA and CRA information from a database maintained by Creative Investment Research.” The list was ultimately based on “social needs in the area the financial institution serves; responsiveness of the financial institution in meeting those social needs; and financial performance of the institution.”
March 7, 2013
Member News
Boston Globe
(2-28-13)
The Suffolk County Alumni Chapter of Phi Beta Sigma Fraternity is hosting its Annual Tribute to Black Women & Sapphire Awards Ceremony honoring three women dedicated to uplifting others in their communities. The fraternity will present Sapphire Awards to Dr. Nteri Nelson, an adjunct professor at UMass Boston; Teri Williams, president of OneUnited Bank; and Cindy Diggs, founder of Peace Boston. Phi Beta Sigma was founded at Howard University in 1914 by three African-American male students and now consists of over 200,000 members with 700 chapters in the US, Africa, Europe, Asia, and the Caribbean. Its Sapphire Award is the chapter’s highest honor given to non-members in the areas of education, business, and social action.
Charles Street AME Cash Transfers Subject of Bank Hearing
Bay State Banner
(2-28-13)
Two years ago, the Lilly Foundation awarded Charles Street AME a four-year grant of $875,000 to train young pastors. Its pastor in residency program was expected to be the sole beneficiary of the Lilly grant. It wasn’t, according to both Rev. Groover, Pastor of Charles Street AME, and Rev. Opal Adams, the woman who kept the financial books and authored Groover’s annual reports. The recent depositions of Groover and Adams came to light this week in a hearing before U.S. bankruptcy Judge Frank Bailey to determine if the church’s latest amended financial statements should be used as a basis to repay its debts, including $5.2 million in outstanding debt to OneUnited Bank, the church’s main creditor and the nation’s largest black-owned bank. Characterizing the recent church financial statements as “inadequate and incomprehensible,” bank attorneys said they demonstrate “a false portrayal of its financial circumstances and purposefully overlooks its obligations.” “In light of the debtor’s duplicity, and given the true state of the debtor’s financial affairs — that is so far as discovery has uncovered it — there is plainly no credible prospect that it can present...
February 28, 2013
Member News
Boston Globe
(2-25-13)
(2-25-13)
February 20, 2013
Member News
Southern Bancorp, Inc.
(2-12-13)
Daniel Koehler, president of Koehler Software, Inc., and former Chief Financial Officer of Union National Bank of Little Rock, has joined the board of Southern Bancorp Inc., a family of a community development banks and a nonprofit affiliate that work in concert to revitalize underserved communities in the mid-South. Along with serving on the board, Koehler will chair Southern’s audit committee. “The dual mission of Southern is unique in banking, and I greatly appreciate the opportunity to work with my fellow directors and officers in making a worthwhile contribution to communities in Arkansas and Mississippi,” said Koehler. Prior to his banking career, Koehler was a certified public accountant with Arthur Young & Company in New York, where he divided his time between the firm’s audit and tax practices.
February 14, 2013
Member News
First American International Bank
(2-8-13)
First American International Bank (FAIB) announced today the planned retirement of its President and CEO, Alfonso Lau. Mr. Lau will remain with the bank until March 2013 to manage an orderly transition to his successor. Mr. Lau will continue as a Director of FAIB and the holding company, First American International Corporation (FAIC). FAIB also announced that Mark Ricca will become its new President and CEO in March 2013. Mr. Ricca joins the bank from Carver Bancorp, Inc., the bank holding company for Carver Federal Savings Bank in New York City, where he was Executive Vice President. Raymond Yu, Chairman of the Board of both FAIB and FAIC, said, "We would like to thank Al for leading us for the past 13 years as we have grown our bank from one branch in Brooklyn to nine branches in three boroughs. We look forward to continuing to successfully serve our depositors and clients as we complete our transition and Mark assumes the helm."
Carver Bancorp Returns to Profitability
American Banker
(2-8-13)
Carver Bancorp (CARV) in New York ended a drought by posting a profitable fiscal third quarter. The $640.6 million-asset company earned $474,000 in the quarter after losing $680,000 a year earlier. "We are pleased to report our first quarterly profit since our real estate loan portfolio was severely impacted by the economic downturn," Deborah Wright, Carver's chief executive, said in a press release. "Our positive net income results for the quarter bring Carver's year-to-date results close to break-even. Our loan performance also continued to improve, with nonperforming assets declining 5% from the prior quarter and 30% year-to-date."
Community Bank of the Bay Announces Unaudited 2012 Fourth Quarter and Full Year Earnings
Community Bank of the Bay
(2-6-13)
Highlights include: Net income for 2012 totaled $1,389 thousand, or $0.19 earnings per share, versus a loss of $6 thousand for 2011. Total...
February 7, 2013
Member News
How Shorebank's Successor is Digging Out
Crain's Chicago Business
(2-6-13)
Center for Financial Services Features Case Study on CDBA Member Sunrise Community Bank
Center for Financial Services
(2-6-13)
Debit ID Card Raises Concern of Fraud
SFGate ...
The Center for Financial Services Innovation has launched an "Impact of Innovation" series, profiling "enterprises and executives who are driving positive change across the financial services landscape." CFSI aims to highlight "why innovation is beneficial to both consumers and the marketplace" by providing examples of organizations leading the way on innovation and impact.
As part of this series CSFI profiled CDBA member Sunrise Community Banks, located in the Twin Cities, recognizing them for their innovation in providing general purpose reloadable prepaid debit cards. As Chief Executive David Reiling stated, "The prepaid card 'is the only model that I’ve been able to find that can facilitate a sustainable method to provide [financial] access to low-balance, high transaction consumers and do it in a convenient and transparent way with fair pricing.'" “'The fact is there are a lot of different uses and flexibilities that can happen. In and of itself, a prepaid platform can be a very convenient access point for underserved consumers.'”
Read more about CSFI's case study on how Sunrise Bank has served consumers with new prepaid offerings at their website.