News

| Wednesday, January 16, 2013

A report released by the UNC Center for Community Capital details flaws in the methodology and conclusions of a new paper seeking to discredit the Community Reinvestment Act, enacted in 1977 to encourage regulated financial institutions to meet the credit needs of their communities in a safe and sound manner.

Researchers urged policymakers and practitioners to resist being distracted by a widely rejected thesis promoted in a December paper issued by the National Bureau of Economic Research. The "'blame the CRA' story has been refuted by industry leaders and researchers time and time again," authors said in their report, Debunking the CRA Myth Again. "Rather than trying to place blame where none exists, we argue that the focus of the debate should be on how CRA can be modernized and improved to better reflect the current financial services landscape and meet the continuing credit needs of America's communities."

Read the full report for more information about the study and its conclusions. 

| Wednesday, January 16, 2013

When banks carefully track small, significant changes in their customers’ financial situations, these institutions can improve their fortunes and compete more effectively. First-Mover Matters: Building credit Monitoring for Competitive Advantage, a report from McKinsey’s risk practice, shows that one way to better monitor credit is to tap analytics and specialists to spot quantitative and even qualitative early-warning signs of borrower trouble. Another approach is to set up formal triggers for timely intervention that can guide customers back to financial health or limit further losses when the situation isn’t likely to improve. McKinsey argues that better credit monitoring could be one of the main ways that capital-strapped banks can improve their business model.

Read the full report from McKinsey to find out how banks can significantly reduce their exposure.

| Friday, January 11, 2013

Although launched only two years ago, Start Community Bank has already been recognized for its work with low- and moderate-income communities in New Haven, Connecticut. A certified community development bank and CDBA member, Start received a Bank Enterprise Award of over $285,000 from the U.S. Department of the Treasury's Community Development Financial Institution's Fund. 

Read more about Start Community Bank and its local lending work via this story from the New Haven Independent. 

| Thursday, January 10, 2013

CDBANewsflash - Low Rez For Email 2

January 10, 2013
 


Member News

Rep. Darrin Williams Named New Southern Bancorp CEO
TalkBusiness
(1-9-13)

Effective Feb. 1, 2013, Darrin Williams, a lawyer and current Democratic Arkansas State Representative, will be the new CEO of Southern Bancorp, Inc. “Darrin’s financial skills, legal experience in securities and financial regulation and history of advocating for the rights of the disadvantaged in both his law practice and his political career make him the perfect choice to lead Southern Bancorp in its mission to build communities and change lives,” said Walter Smiley, current CEO and board chairman of Southern Bancorp, Inc. Williams is a principal at the law firm of Carney Williams Bates Pulliam & Bowman PLLC, where his work focuses on protecting consumers. “My career focus of protecting consumers from the abuses of Wall Street banks has prepared me well to show how banking should and can be done to help communities and people,” said Williams. “I don’t know of a better bank to make that point than Southern.”

Bankruptcy Judge Gives Charles Street AME More Time to Submit Amended Reorganization Plan
Boston Globe
(1-4-13)

The judge in the Charles Street African Methodist Episcopal Church bankruptcy case Friday gave the congregation until Jan. 18 to file an amended reorganization plan, over the protests of bank lawyers who called the church’s proposals unrealistic and based on erroneous figures. It was the latest skirmish in what has turned into a long court battle between the church and OneUnited Bank. Charles Street AME filed for federal bankruptcy protection last March, after it fell behind on payments for nearly $5 million in OneUnited loans and the bank threatened to auction off the the historic Roxbury church. “There is no plan here that’s possibly feasible,’’ said Gayle Ehrlich, a lawyer for OneUnited, in a withering indictment of the church’s financial records in US Bankruptcy Court in Boston. “This case is way off track and can never get on track.” Ehrlich criticized the church’s proposal to repay its debts to OneUnited over 30 years as unheard of with a business loan — only home mortgages and farm equipment purchases are afforded such long pay-back periods, she said. Ehrlich also restated the bank’s position that the First Episcopal District of Philadelphia, which includes Charles Street AME, should live up to its commitment as a guarantor on the debt.

Southern Bancorp Hits Milestone of $10 Million in Community Grants
The Sacramento Bee
(1-3-13)

Southern Bancorp, the nation's 5th largest community development bank with more than $1 billion in assets, has reached the $10 million mark in grants to local communities. In addition to providing targeted grants of $10 million from bank profits for support of local community development goals, Southern has originated more than $3 billion in loans in the high-poverty rural markets it has served since 1988. Southern focuses philanthropic efforts in Clark County, Phillips County and Mississippi County in Arkansas and Coahoma County in Mississippi. "Southern Bancorp is a dynamic financial institution," said John Olaimey, leader of Southern's banking operations. "Because of our rural development focus and the partnership with our nonprofit affiliate, we can plow bank profits back with a multiplier effect into our communities, significantly improving opportunities by providing a combination of traditional and non-traditional capital to drive fundamental change."
 


Of Interest

Consumer Financial Protection Bureau Releases New Mortgage Rules
Washington Post 
(1-10-13)

The Consumer Financial Protection Bureau on Thursday released the first of several far-reaching changes to the nation’s mortgage market, limiting upfront fees and curtailing practices such as interest-only payments that can leave homeowners stuck with unsustainable loans. The agency also set standards for how much income a consumer must have to obtain a mortgage. This marks the first time the government has spelled out what constitutes a “qualified mortgage,” an effort to prevent the widespread toxic loans that hurt millions of Americans during the housing crisis. Banks that offer qualified mortgages will be protected from lawsuits if they adhere to the criteria. The consumer agency hopes that these changes will drive the entire industry to live by the tighter standards that have taken hold since the crisis, ensuring safer loans but potentially limiting the number of people who can qualify to buy a home.

See additional coverage by CNNMoney and American Banker

Small Bailed-Out Banks Still Lagging in Main Street Loans
BusinessWeek
(1-9-13)

Community banks that got government money through a Department of Treasury program to boost lending to small businesses increased loans by $740 million in the three months ended in September, according to the most recent data (PDF) released by the agency on Tuesday. But those lenders that used the money to pay off earlier government bailouts were slower to get money out the door than others. A look at the latest numbers shows the TARP banks have been lending less enthusiastically than those institutions that didn’t use the SBLF to repay bailouts. In aggregate, the TARP banks in the program have increased lending by $1.13 to small businesses for every $1 of loan fund money they got, according to a Bloomberg Businessweekanalysis. (Under the program, that’s enough to reduce the dividend a lender owes the government to just 1 percent—cheap money for banks.) The lenders who didn’t have the earlier TARP money, by contrast, boosted loans by more than $3 for every dollar of SBLF capital they got.

JP Morgan Perspectives on Progress - The Impact Investor Survey
JP Morgan
(1-7-13)

JP Morgan's third annual survey on the impact investment market sheds light on this nascent and growing market by collecting data on investors’ expectations and experiences in 2012, as well as their plans for 2013. Respondents report that they committed $8 billion (USD) to impact investments in 2012, and that they plan to commit $9 billion (USD) in 2013. Most respondents report that their portfolios’ financial and impact performance are in line with their expectations, with nearly two-thirds of the sample targeting market rate financial returns on their impact investments. Ninety-six percent of respondents measure their social and/or environmental impact, and four out of five fund managers highlight the importance of impact measurement for raising capital. While respondents believe the market continues to be challenged by a lack of appropriate capital across the risk/return spectrum and a shortage of high quality investment opportunities, they indicate progress is being made evenly across these and other indicators of market growth.

CohnReznick Releases Study on Low-Income Housing Tax Credit Program
CohnReznick LLP
(1-4-13)

The Low-Income Housing Tax Credit Program at Year 25: An Expanded Look at Its Performance offers a robust analysis of LIHTC property and portfolio performance, building upon the initial study released by Reznick Group, P.C. in August 2011. This follow-up report, now issued by CohnReznick LLP due to Reznick Group's recent merger with J.H. Cohn, delivers a comprehensive review of  portfolio operating results based on key property segments and U.S. geographies. It also provides an analysis of fund investment performance and portfolio composition.


Jobs

Opportunity Fund - Reporting and Compliance Officer (San Jose, CA)
Opportunity Fund is seeking a qualified Reporting & Compliance Officer that will take ownership and responsibility for timely and accurate reporting and compliance for government contracts and awards, corporate licenses and governance, debt and investor covenants, and other external and internal stakeholders. The Reporting & Compliance Officer will also be responsible for performance management tools, such as balance scorecards and internal compliance. This is a newly created position that reports to the CFO (with dotted reporting line to the President and COO); this position will require in-depth knowledge of program metrics, outcomes, operations/process and databases/spreadsheets, and will partner closely with Program, Development and Finance staff to ensure accurate and timely compilation of program and organizational information that enables Opportunity Fund to maintain critical funding, loan capital, licenses and/or ratings. Full details available here

Calvert Social Investment Foundation, Inc. - Director of Underwriting (Bethesda, MD)
In direct report to the Senior Director, Underwriting, the Director, Underwriting is responsible for monitoring risk and performance issues for a portfolio of borrowers, including full due diligence packages for new or updated credit requests. This portfolio is comprised primarily of Community Development Financial Institutions and affordable housing developers and lenders, as well as direct business investments in social enterprises, affordable housing projects, and community facilities.  Working closely with Business Development Loan Officers, the Director of Underwriting will also be fully involved in underwriting and structuring new transactions. Full details available here

Enterprise Community Partners - Innovation Analyst (New York, NY)
The Innovation Analyst provides project management expertise to support and advise the Senior VP, Innovation in all matters necessary for the effective operation of the Enterprise innovation platform, including supporting the broader innovation team and advancing innovation efforts throughout Enterprise. The Innovation team, which holds an evolving and expanding role within Enterprise, currently focuses on the following four priority areas: drive innovation by leading 2-3 priority efforts and support innovation efforts lead by others; spot market changing and scaling opportunities both within and outside of Enterprise; highlight, track, and disseminate innovation work happening throughout Enterprise, and ensure that Enterprise culture supports and inspires innovation internally and externally. Full details available here

City First Bank of D.C. - multiple positions (Washington, DC)
1) Chief Lending Officer - Will lead the business development/calling program of the bank which will be geared toward growth in new loan and deposit customer relationships, strengthening and expanding existing customer relationships, increasing the bank’s outstandings and profitability, and elevating the Bank’s reputation in the marketplace. The CLO will lead the lending team in developing new loans and deposits in conformity with approved policies and procedures, including underwriting and structuring of new loans and in managing existing loan and deposit relationships. This is a senior management role and will be active in strategic efforts and will lead and participate in several committees involved in the management of the bank, such as Management Loan Committee, Directors’ Loan Committee, Senior Staff Meetings, and Internal ALCO. 

2) Chief Credit Officer - Responsible for managing the credit administration and loan documentation functions of the Bank’s loan portfolio. This role will also ensure that the lending culture of the bank is effectively communicated, implemented, and reinforced within all lending areas as well as establish written loan and credit policies, practices. and procedures which meet regulatory safety and soundness standards for Board approval. The CCO will oversee the bank’s non-performing and underperforming loans and assets to ensure acceptable level of problem loans, past due loans, and loan documentation issues are managed. The CCO will provide management reports on all loan and Allowance for Loan and Lease Loss (ALLL) calculations and making recommendations to executive management and the Board of Directors for quarterly allocations to the Allowance for Loan Losses. This is a senior management role and will be active in strategic efforts and will lead and participate in several committees involved in the management of the bank, such as Directors’ Loan Committee, Management Loan Committee, Senior Staff, and Internal ALCO. 

3) Relationship Manager - Responsible for soliciting new business and managing customer relationships to real estate customers, small businesses, and not-for-profit organizations (including churches and charter schools, among others). Real estate activities generally include loans for the acquisition or renovation of nonresidential owner-occupied real estate. In addition, the prospects include office, retail, shopping strips, warehouse, industrial, facilities, and land development, primarily for investment purposes. The position reports to the Chief Lending Officer. The Relationship Manager is also responsible for all phases of loan and deposit production, including lead generation, underwriting, closing, relationship management, and portfolio monitoring and is an officer of the Bank, participating in the Directors’ Loan Committee (DLC) of the Bank, and other staff meetings as required.


                             
The CDBA Newsflash is a service of the Community Development Bankers Association (CDBA). For more information on other members and the work of CDBA please visit www.cdbanks.org. Or write to us at: 1444 I. Street NW, Suite 201, Washington D.C., 20005 or info@cdbanks.org.

Contact Name: Dana Weinstein; weinsteind@pcgloanfund.org; 202-689-8935 x32

| Wednesday, January 2, 2013

CDBANewsflash - Low Rez For Email 2

January 2, 2013
 


Member News

United Bank Celebrates the Retirement of Two Long-Serving Bank Employees
Atmore News
(1-2-13)

A reception was held at United Bank for retirees Nancy Everette Helton and P. D. Pollard Thursday, December, 13, at the Atmore Main Branch, where friends and coworkers wished them well after more than 28 years of service to the bank and the community. “Today we’re celebrating a day that we all hope to work toward,” said Bob Jones, President and CEO of United Bank, at Thursday’s reception. Jones presented gifts to both as he congratulated them in front of a crowd of more than 100, including fellow bank retirees. “While it’s bittersweet, we wish Nancy and P.D. the best as they begin new chapters and new adventures,” Jones said.

BankPlus Takes on Mississippi Payday Lenders
American Banker
(January 1, 2013)

As the operators of a community bank in the state with the most payday lenders per capita (32 for every 100,000 people), executives at BankPlus in Belzoni, Miss., are characteristically appalled at the exorbitant rates that payday lenders charge. But uncharacteristically for a bank, BankPlus decided four years ago to compete with these payday lenders. Now it successfully offers a small-dollar loan product to thousands of people, with significantly better terms and outcomes. "The idea was to create a program to assist anyone caught in the payday lending cycle, but also to serve the underbanked who seek to enter the commercial banking system," says Bill Ray, the president and CEO of $2.3 billion-asset BankPlus.
 


Of Interest

New Rules on Debit-Card Processing Start to Pinch Small Banks and Credit Unions
Washington Post
(12-29-12) 

Community banks and credit unions are reporting lower debit-card processing revenue as a result of financial reform laws, sparking concerns that they may be forced to impose new fees on customers to offset their losses. Their experience stood in contrast to new reports published by the Federal Trade Commission and the Government Accountability Office, which suggest that a provision meant to protect small banks from debit-card reform has indeed shielded them from any significant losses in revenue. But community bank and credit union executives say the government reports are premature and don’t necessarily reflect the impact on their businesses. “The fees that the credit card processors pass on as revenue to banks like ours have definitely gotten smaller,” Denise Stokes, senior vice president of Sandy Spring Bank in Olney, said in an interview. “Those companies took a hit when revenue dropped for the large banks, so they passed some of that loss on to us in the form of lower rates on processing fees. Our loss hasn’t been huge, not as high as what the large banks have been hit with, but still, it’s been significant.”

Federal Trade Commission Study Finds That Debit Card Fee Reform Did Not Affect Small Banks
Federal Trade Commission
(12-24-12)

In 2010, Congress passed the Dodd-Frank (Act) which, among other things, amended the Electronic Fund Transfer Act (EFTA) to restrict interchange fees and to prohibit exclusive networks for debit card transactions. The Senate Appropriations Committee asked whether the Federal Trade Commission has identified any evidence that payment card network companies have taken steps to diminish the ability of small banks and credit unions to successfully compete with large financial institutions in the debit card issuance market, and if any such steps have been taken by the card network companies in coordination or collusion with large financial institutions. The report finds that, to date, the FTC has not uncovered evidence that this type of conduct is occurring and thus concludes that small banks are not being harmed by "swipe fee" reform.

Pilot Financial Index for Social Investment Unveiled
The Guardian
(12-21-12)

A pilot is underway to test the world's first financial index for social investment. Described as a potential "Bloomberg for social investment" by Sir Ronald Cohen, the index is backed by the City Bridge Trust, Big Society Capital, the Cabinet Office and RBS. Karl H Richter, co-founder of Engaged Investments, the organisation behind the pilot, explained that the ultimate goal is to create "a distinctive asset class" for social investment. The market for social impact investment is forecast to reach £1bn in the UK by 2016 (Boston Consulting Group), and $1tn globally by 2020 (JP Morgan), but its current lack of classification is a barrier for mainstream investors. "The traditional push back is 'we love the idea, but we are heavily regulated with fiduciary duties and compliance requirements and we cannot invest money without robust benchmark data,'" said Richter. "So we're providing that data ... a long-term aspirational goal might be to see index-tracking funds and exchange traded funds, based on the index."

 

Jobs

Center for Financial Services Innovation - Business Support Associate (Chicago, IL)
CFSI is seeking an experienced Business Support Associate to join our team. This position is responsible for supporting Advisory Services programs and interfacing with financial services organizations and other entities in the underserved consumer marketplace. This position will serve as principal internal and external operational contact for Advisory Services businesses, working closely with peers to ensure the operational success of core CFSI businesses and ultimately leading to improved financial outcomes for financially underserved consumers. Full details available here

Enterprise Community Partners - Program Director, Advisory Services (Columbia, MD & Washington, DC)
The Program Director will perform and coordinate project management and technical assistance (TA) tasks under the direction of an Advisory Services Director. The goal of the program is to improve the capacity, outcomes, and impacts of community development programs nationwide. For specific TA assignments, the Program Director will serve as a project manager supporting TA team leaders and members and may provide technical assistance as appropriate. The successful candidate will be self-motivated and have strong interpersonal skills. He or she will have demonstrated skills and experience with project management, working with teams and independently, and attention to detail. Experience with affordable housing and community development is required and knowledge of CPD programs and federal regulations is highly desirable. The position will be based temporarily in Columbia, MD; however, will be located permanently in Washington, DC as of Spring 2013. Full details available here

D2D Fund - Innovation Strategist (Allston, MA)
D2D is looking for an Innovation Strategist to help design, test, and scale D2D's financial product innovations. As an integral part  of the D2D team, the Innovation Strategist will support multiple D2D initiatives. The ideal candidate is self-motivated, hard-working, detail-oriented, and able to work in an entrepreneurial environment, taking ownership of various projects, tasks, and/or ideas simultaneously. The candidate must be dedicated to the larger cause of D2D’s mission of improving the lives of financially vulnerable Americans. The candidate must be willing to take on problems as they arise, recognizing the needs of a small organization. This position is open immediately. Some domestic travel is required. Please send cover letter and resume as well as any inquires to  resumes@d2dfund.org. Full details available here

Fifth Avenue Committee & Neighbors Helping Neighbors - Homeownership Counselor (Brookly, NY)
Fifth Avenue Committee (FAC) is an award winning, 34-year-old South Brooklyn based non-profit community development corporation whose mission is to advance economic and social justice. FAC develops and manages affordable housing and community facilities, creates economic opportunities and ensures access to economic stability, organizes residents and workers, offers student-centered adult education, and combats displacement caused by gentrification.  Neighbors Helping Neighbors (NHN) recently became an affiliate of the Fifth Avenue Committee, and has received funding to increase homeownership counseling services and activities on behalf of NHN. We are seeking a full-time Homeownership Counselor to provide homeownership services on behalf of NHN to residents throughout Brooklyn. The counselor will primarily focus on NHN's foreclosure prevention efforts and will report to the Director of Homeownership Programs. Full details available here

City First Bank of DC - multiple positions (Washington, DC)
1) Chief Lending Officer - Will lead the business development/calling program of the bank which will be geared toward growth in new loan and deposit customer relationships, strengthening and expanding existing customer relationships, increasing the bank’s outstandings and profitability, and elevating the Bank’s reputation in the marketplace. The CLO will lead the lending team in developing new loans and deposits in conformity with approved policies and procedures, including underwriting and structuring of new loans and in managing existing loan and deposit relationships. This is a senior management role and will be active in strategic efforts and will lead and participate in several committees involved in the management of the bank, such as Management Loan Committee, Directors’ Loan Committee, Senior Staff Meetings, and Internal ALCO. 

2) Chief Credit OfficerResponsible for managing the credit administration and loan documentation functions of the Bank’s loan portfolio. This role will also ensure that the lending culture of the bank is effectively communicated, implemented, and reinforced within all lending areas as well as establish written loan and credit policies, practices and procedures which meet regulatory safety and soundness standards for Board approval. The CCO will oversee the bank’s non-performing and underperforming loans and assets to ensure acceptable level of problem loans, past due loans, and loan documentation issues are managed. The CCO will provide management reports on all loan and Allowance for Loan and Lease Loss (ALLL) calculations and making recommendations to executive management and the Board of Directors for quarterly allocations to the Allowance for Loan Losses. This is a senior management role and will be active in strategic efforts and will lead and participate in several committees involved in the management of the bank, such as Directors’ Loan Committee, Management Loan Committee, Senior Staff, and Internal ALCO. 

3) Relationship ManagerResponsible for soliciting new business and managing customer relationships to real estate customers, small businesses, and not-for-profit organizations (including churches and charter schools, among others). Real estate activities generally include loans for the acquisition or renovation of nonresidential owner-occupied real estate. In addition, the prospects include office, retail, shopping strips, warehouse, industrial, facilities, and land development, primarily for investment purposes. The position reports to the Chief Lending Officer. The Relationship Manager is also responsible for all phases of loan and deposit production, including lead generation, underwriting, closing, relationship management, and portfolio monitoring and is an officer of the Bank, participating in the Directors’ Loan Committee (DLC) of the Bank, and other staff meetings as required.

Full details about these positions are available here


                             
The CDBA Newsflash is a service of the Community Development Bankers Association (CDBA). For more information on other members and the work of CDBA please visit www.cdbanks.org. Or write to us at: 1444 I. Street NW, Suite 201, Washington D.C., 20005 or info@cdbanks.org.

Contact Name: Dana Weinstein; weinsteind@pcgloanfund.org; 202-689-8935 x32

| Thursday, December 27, 2012

BankPlus, a certified community development bank and CDBA member, is located in Mississippi, the state with the most payday lenders per capita. But executives at the Bank were not willing to stand by as these payday lenders charged extremely high rates to often low-income borrowers. Instead, BankPlus decided to offer a small-dollar loan product with better terms and outcomes. According to BankPlus President and CEO Bill Ray, "The idea was to create a program to assist anyone caught in the payday lending cycle, but also to serve the underbanked who seek to enter the commercial banking system." 

Learn more about BankPlus's innovative financial product at American Banker.

| Wednesday, December 19, 2012

cdbanewsflash_-_low_rez_for_email

December 19, 2012
 


Member News

Virginia Community Capital Finishes 2012 Strong with 3 Grants
Virginia Community Capital
(12-10-12)

Virginia Community Capital has received three national grants this past month to support its work in low-income communities and bolster ongoing job creation efforts. A $415,000 grant from the 2012 Bank Enterprise Award Program (BEA), offered through the U.S. Department of Treasury's Community Development Financial Institution Fund, will provide leverage for a wide range of projects across Virginia. This is VCC's fourth consecutive BEA award. $32,750 from the Create Jobs for USA Fund, a collaboration between Starbucks and the Opportunity Finance Network to spark job creation nationally, will combine with first round funding secured in 2011. $20,000 from the Wells Fargo NEXT Awards Program, supporting innovative CDFIs, will provide planning grant funds for the Healthy Foods initiative at VCC. "These grants increase our capacity to provide funding and technical advisory services for low-income communities across Virginia," offered Jane Henderson, VCC President and CEO. "We are especially pleased to see national organizations recognize our efforts and the importance of fellow CDFIs."

 

Of Interest

2011 FDIC Survey of Banks’ Efforts to Serve the Unbanked and Underbanked Released
FDIC
(12-19-12) 

This report presents the results of the 2011 FDIC Survey of Banks’ Efforts to Serve the Unbanked and Underbanked. As mandated by Federal

law, the FDIC surveys insured depository institutions every two years to assess their efforts to bring individuals and families who have rarely, if ever, held a checking or a savings account at an insured depository institution, into the financial mainstream. Key recommendations for banks include: expand offerings of basic, low-cost checking and savings deposit accounts; offer additional transactions services to underserved households, including non-customers; enhance small-dollar loan product marketing; utilize partnerships with community organizations to promote checking and savings account ownership, and consider expanding retail strategies to build relationships with underbanked and unbanked consumers. 

FDIC Releases Community Banking Study, Supervisory Initiatives
FDIC
(12-18-12) 

The FDIC released the results of a study of community banking in the United States, as well as a series of supervisory and rulemaking measures relating to community banks, as the outcome of its yearlong Community Banking Initiative. The study suggests that the community banking sector can generate most of the capital it needs through retained earnings. However, there are two important caveats to this conclusion. First, the ability to generate capital internally depends on a healthy level of earnings. In periods where earnings have faltered, retained earnings have declined sharply or become negative, requiring more community banks to raise capital from external sources. Second, retained earnings can only be a sufficient source of capital if the asset base of the institution is not growing more rapidly than its earnings. Chapter 5 demonstrates how hundreds of community banks in relatively stable, high-performing lending specialties in 2000 pursued growth-oriented strategies centered on C&D and CRE lending that ultimately underperformed for many of them. Community banks with TruPS at the holding company level were almost twice as likely to undertake such a shift in strategy as those that did not use TruPS. The experience of community banks during the study period appears to indicate that maintaining a stable balance between growth and earnings has been the surest path to long-term viability.

Consumers Rate Small Banks Higher Than Big Ones
News Tribune
(12-16-12) 

With the exception of JPMorgan Chase, big banks continue to fall out of favor with consumers. A report by the American Customer Satisfaction Index (ACSI) finds customers satisfaction with banks rose 2.7 percent this year, due almost entirely to satisfaction with small community banks. Small banks -- stable at an ACSI score of 79 -- continue to outclass large banks and capture market share because of it. “As more customers move from large banks to smaller banks and credit unions, the overall customer satisfaction level for banks goes up as a matter of mathematics,” said Claes Fornell, ACSI founder. “As the smaller banks do a better job with customers and therefore attract more of them, customer satisfaction for banks on the whole gets a boost.”

Senate Vote Deals Blow to TAG Extension
Reuters
(12-13-12)

Efforts by small banks to protect a financial crisis-era deposit insurance program suffered a significant setback on Thursday when a bill to extend the program failed to survive a procedural vote in the U.S. Senate. The Transaction Account Guarantee (TAG) program insures bank deposits above the $250,000 normally covered by the Federal Deposit Insurance Corp in checking accounts that do not collect interest. It is set to expire at the end of the year.
Lobbyists for small banks have argued that letting the program end would lead U.S. companies to pull funds from bank accounts and invest elsewhere, roiling community banks that are still grappling with the sluggish economic recovery. The bill, sponsored by Majority Leader Harry Reid, would have extended the program for two more years. But it failed to garner the 60 votes needed to overcome a procedural challenge raised by Republican senators. The blow means it is increasingly likely TAG will expire at the end of the year. Republican leaders in the U.S. House of Representatives have said the program should end. Bank lobbyists had hoped a strong Senate vote to extend the program would be enough to sway House leaders.
 


Jobs

FINANTA - Chief Financial Officer (Philadelphia, PA)
FINANTA, a micro- and small-business lender, is seeking a CFO. Responsibilities include accounting, lending and management of the loan portfolio, reporting and contract compliance, board and committee work, staff management, research, buisness and technical assistance, and information controls. The CFO will have at least five years of professional experience, including managing the finances and administration of non-profits or similar entities; experience creating and driving the analytic framework for planning and managing organizational change in a highly entrepreneurial organization, and a Bachelor’s degree in Business, Management, Finance or similar field. FINANTA is accepting resumes for this position until January 15, 2013. Full details available here

Central Bank of Kansas City - Business Development Officer (Kansas City, MO)
The Business Development Officer (BDO) will develop and strengthen the commercial loan referral network, using leads to achieve loan goals. The BDO will be responsible for exploring and pursuing new markets for loan products, preliminarily analyzing loan requests, and preparing written overviews and recommendations for the proposal. A BDO also is responsible for following regulatory guidelines and compliance procedures when initiating potential loan discussions, including government community reinvestment guidelines. The BDO will report directly to the chief lending officer. Also a BDO preliminarily reviews a commercial borrower's financial data and determines the company's creditworthiness. He or she also verifies credit references and ensures that a borrower has sufficient cash levels to repay loans pertaining to new products and services. We are looking for a friendly, energetic person who has the qualifications and skills that match today’s opportunity. This position is responsible for developing commercial loan leads which meet established lending requirements and provide maximum profitability to the Bank with a minimal risk. All referrals for prospective customers will come from sources outside of bank personnel, directors, and customers. This candidate will need to be self motivated, organized, and a good time manager. Weekly reports of potential customer calling activity will be required. Full details available here


                             
The CDBA Newsflash is a service of the Community Development Bankers Association (CDBA). For more information on other members and the work of CDBA please visit www.cdbanks.org. Or write to us at: 1444 I. Street NW, Suite 201, Washington D.C., 20005 or info@cdbanks.org.

Contact Name: Dana Weinstein; weinsteind@pcgloanfund.org; 202-689-8935 x32

| Thursday, December 13, 2012

cdbanewsflash_-_low_rez_for_email

December 13, 2012


Member News

Governor Andrew Cuomo Names Tax-Code Panel
Gannett New York Network

(12-11-12) A year after it was first unveiled, a panel tasked with brainstorming long-term fixes for New York’s tax code is beginning to take shape.
Former state Comptroller Carl McCall and Peter Solomon, the founder of New York City-based investment advisory firm Peter J. Solomon Company, have been tapped by Gov. Andrew Cuomo to co-chair the New York State Tax Reform and Fairness Commission, according to a list obtained by Gannett’s Albany Bureau. The commission was formed as part of a December 2011 deal to tweak the state’s tax brackets, an agreement that came while Cuomo and the Legislature were under pressure to prevent an added tax on the state’s top earners from expiring at the end of the year. That deal included a new bracket for those making more than $2 million annually, which expires at the end of 2014. Cuomo named ten people to the panel, including Deborah Wright, President and CEO of Carver Bancorp Inc. and Carver Federal Savings Bank.

“Three Michaels: A Berkeley Conversation”
Berkeleyside

(12-10-12) Authors Michael Chabon, Michael Lewis, and Michael Pollan appeared at the Berkeley Rep in “The Three Michaels: A Berkeley Conversation,”  to help enable the creation in Oakland of a tutoring and creative writing center for East Bay youth, dedicated to supporting students with their writing skills and to helping teachers inspire their students to write. Berkeleyside’s “Three Michaels: A Berkeley Conversation” is being supported by One PacificCoast Bank, founded in 2007 by Tom Steyer and Kat Taylor “to be a force for good,” according to Taylor who is the bank’s CEO.  “We want to be a model for how banks should operate, as it’s clear many banks have been responsible for unholy damage,” Taylor says, citing the mortgage crisis and the destruction of rain forests as examples.

Southern Bancorp Mission News
Southern Bancorp

(12-7-12) While parts of the country continue to see slow but steady economic recovery, many of the markets Southern Bancorp serves are still struggling. But Southern is striving to provide its customers and communities with the support and financing needed to accelerate economic recovery. For example, in its Mississippi markets, Southern recently launched several innovative small dollar loan products. They've also partnered with the Clarksdale Municipal School District to provide teachers with loans to help them achieve National Board Certification and have pioneeered a payday loan alternative product to provide a non-predatory alternative to the payday lenders. Additionally, Southern's bank and nonprofit partnership with Coahoma County continues to strengthen and yield tangible progress. The Coahoma County Delta Bridge Project, a comprehensive development initiative led by residents of Coahoma County and supported by Southern, launched about two years ago. Since then, over $2 million in new investments have been attracted in support of the goals outlined in the strategic plan.

 
 

Of Interest

CFPB Releases Study on Credit Reports
Consumer Financial Protection Bureau

(12-13-12) This paper describes the credit reporting infrastructure at the three largest nationwide consumer reporting agencies (NCRAs) – Equifax Information Services LLC (Equifax), TransUnion LLC (TransUnion), and Experian Information Solutions Inc. (Experian) – with a special focus on the infrastructure and processes currently used by the NCRAs to collect, compile, and report information about consumers in the form of credit reports.

TAG Bill Clears Key Senate Hurdle as White House Voices Support
American Banker

(12-11-12) The Obama administration released a statement of policy Tuesday in support of extending a crisis-era guarantee program for certain business bank accounts, ahead of a successful procedural Senate vote on the bill to limit debate on the issue. The bill, S. 3637, introduced by Majority Leader Harry Reid, would extend the Transaction Account Guarantee program for two years. The issue has divided a number of industry groups, pitting big banks and credit unions against smaller banks which argue they still need the guarantee. "The Transaction Account Guarantee (TAG) Program played an important role in maintaining financial stability and banking system liquidity for consumers and businesses during the financial crisis," said the statement of policy. "While the Administration supports a temporary extension of the program, it remains committed to actively evaluating the use of this emergency measure created during extraordinary times and a responsible approach to winding down the program." The Senate voted 76 to 20 in favor of a motion to limit debate on the issue on Tuesday afternoon, which likely clears the path for an additional procedural vote and a final Senate vote in favor of the bill as early as Thursday.

Small Bank's Surprise Decision May Threaten Treasury's Tarp Return
American Banker

(12-11-12) A bank's decision to balk at paying dividends to a private investor that bought its Troubled Asset Relief Program (TARP) shares may reduce investor interest in future auctions and weaken returns for the government. Basswood Capital Management won a Treasury bid in October to buy a portion of preferred TARP shares of $114 million-asset CenterBank in Milford, Ohio. Although the bank had never missed a dividend payment to Treasury and appeared in healthy condition, the financial institution sent a letter Nov. 13 to Basswood Capital saying it would not pay its quarterly dividend. The move caught the investment firm by surprise, especially when the bank's CEO gave his reasoning to a local paper, telling a reporter that the bank simply wanted to "keep our capital local as opposed to sending it to New York." The bank's decision is likely to have far-reaching consequences, however, including potentially spooking other investors away from future Treasury auctions and reducing the government's return. "It will open the eyes to some investors that the dividend deferral feature is not merely a theoretical possibility," said Kip Weissman, a partner at law firm Luse Gorman Pomerenk & Schick. "It will probably depress prices."

Treasury Accepting Losses as Small Banks Exit Bailout Program
Washington Post

(12-7-12) At 9 a.m. on Nov. 30, the Treasury Department began auctioning off its shares in seven community banks scattered across the country. Each of these institutions had taken money from the government in 2009 during the financial crisis. By the time the bidding closed at 6 p.m. Monday, the Treasury had collected about $62 million. However, the government’s original investment in these banks totaled $75 million. It was not the first time the government walked away with a loss. In 10 similar auctions conducted to date, Treasury has sold off its investments in 84 financial firms, accepting losses of about $241 million. “Treasury has shifted its emphasis and is no longer focused on promoting financial stability,” said Christy Romero, special inspector general for the TARP. “Instead, Treasury wants to declare success and move on.” Treasury officials said the bids the department has received reflect what the market is willing to bear at this point. Besides, they said, the ultimate goal is to wind down TARP in an efficient way. Moreover, the government may have sold shares in these community banks at a loss, but these firms also paid $307 million in dividends to Treasury coffers, aside from the money recouped from the auctions. Overall, Treasury has turned a profit from its small-bank investment. “We want a competitive, transparent process, and that’s exactly what we’ve had with the auctions,” Treasury Assistant Secretary Timothy G. Massad said.


Jobs


National Community Investment Fund - Senior Analyst, Social Impact Evaluation and Investments (Chicago, IL)
NCIF is currently seeking a Senior Analyst – Social Impact Evaluation and Investments. The successful candidate will support the Chief Executive on the following key activities of NCIF: social performance metrics and research, financial analysis, marketing and communications, and other related activities. Full details available here



                             
The CDBA Newsflash is a service of the Community Development Bankers Association (CDBA). For more information on other members and the work of CDBA please visit www.cdbanks.org. Or write to us at: 1444 I. Street NW, Suite 201, Washington D.C., 20005 or info@cdbanks.org.

Contact Name: Dana Weinstein; weinsteind@pcgloanfund.org; 202-689-8935 x32

| Wednesday, December 5, 2012

cdbanewsflash_-_low_rez_for_email

December 5, 2012


Member News

Mission Valley Bank’s New Generation of Online & eBanking Services
Mission Valley Bank

(12-4-12) Through client surveys, interviews and day to day conversations, Mission Valley Bank has heard what its customers want to see with regard to Online and eBanking. In response, Mission Valley Bank is launching a whole new look and feel for a much more robust Online Banking Platform. This new lineup of state-of-the-art eBanking services which significant enhancements to: oneline banking for personal and small business accounts, business bill pay, personal bill pay, on-site teller, and business online banking. Learn more about the new eBanking Services by viewing the informative videos on Mission Valley Bank's website.

Chicago Fed Announces New Board Members
Fox Business

(12-3-12) The Federal Reserve Bank of Chicago announced three new members and the appointment of a new chair of its Board of Directors in a press release Monday night. Greg Brown, Chairman and Chief Executive of Motorola Solutions Inc.; Jorge Ramirez, President of the Chicago Federation of Labor in Chicago, and William M. Farrow III, President and CEO of Urban Partnership Bank in Chicago, were announced as new members to the nine-person board. The appointments are effective January 1.


Of Interest

Warren, Manchin Win Seats on Senate Banking Panel
American Banker

(12-4-12) Senator-elect Elizabeth Warren has secured a spot on the Senate Banking Committee, and she'll be joined by Sen. Joe Manchin, according to a Democratic Senate aide. Warren, a Harvard professor and founder of the Consumer Financial Protection Bureau, beat out GOP incumbent Sen. Scott Brown in a heated and expensive battle this fall. Critics have warned that the Massachusetts Democrat could have outsized influence on the committee given her strong and often critical views of the industry, but many observers have said that it would be difficult for Senate leaders to deny her a spot given her background. Several liberal groups had started a petition to encourage Senate leaders to place her on the panelThe Senate aide cautioned that the decisions about Warren and Manchin will not be final until Majority Leader Harry Reid makes a public announcement.

Lame Duck Session is Crunch Time for Key Bank Bills
American Banker

 

(12-3-12) A number of critical industry bills that languished over the summer and fall are once again gaining prominence in the waning days of the lame duck session. At least two bills appear headed for passage — one that would protect information banks share with the Consumer Financial Protection Bureau and another that would end a requirement for banks to place a physical placard disclosing ATM fees in addition to an electronic notice. Another relatively uncontroversial bill that could come up for a vote is an extension to the Mortgage Forgiveness Debt Relief Act, which exempts homeowners from paying taxes on short sales, principal reductions, and other forms of mortgage forgiveness. Banking groups and credit unions have also been waging an ongoing
battleover a bill to double a cap on credit union business lending to 27.5% of assets, which bankers adamantly oppose. Separately, banks are also battling each other as lawmakers weigh whether to extend the Transaction Account Guarantee before it sunsets at year end.

A Surprise Ending for Second Federal
Crain's Chicago Business

(11-28-12) In a surprise end to the saga of the failed Second Federal Savings and Loan Association of Chicago, Wintrust Financial Corp. has agreed to sell the Little Village thrift's three branches and deposits to a group led by Pilsen community development organization the Resurrection Project. The nonprofit, along with North Carolina-based Self-Help Federal Credit Union, had bid unsuccessfully for Second Federal's deposits when regulators closed the thrift in July. The Federal Deposit Insurance Corp.'s move to sell the $161 million of deposits to Rosemont-based Wintrust provoked sharp criticism from Resurrection Project CEO Raul Raymundo and a letter from U.S. Rep. Luis Gutierrez, D-Chicago. The FDIC later sold the thrift's loans, almost all of them mortgages to Hispanic borrowers on the Southwest Side and in near west suburban Cicero, to the Resurrection Project and its credit union ally. But the group always wanted the deposits as well, Mr. Raymundo said. Wintrust CEO Edward Wehmer said that in the end, what was best for the community was for the deposits, loans and branches to be with a single institution. “Sometimes we may not be the perfect answer,” he said in an interview. But, he emphasized, “We are not by any means abandoning the community.”

US SIF Publishes Biennial Sustainable Investment Trends Report
Social Funds

(11-24-12) The recently published 2012 Report on Sustainable and Responsible Investing Trends in the US from US SIF: The Forum for Sustainable and Responsible Investment indicates that assets allocated to sustainable investment strategies continue to rise, as they have throughout the past decade. By the end of 2011, $3.74 trillion were invested by means of such strategies as incorporation of environmental, social, and corporate governance (ESG) criteria and shareowner engagement. The total represents a 22% increase over sustainable investment at year end 2009, which stood at $3.07 trillion. By the end of 2011, 443 institutional investors, 272 money managers, and 1,043 community investment institutions with assets in excess of $3.3 trillion were incorporating ESG criteria, and an additional 200 institutional investors or money managers, with assets of $1.54 trillion, had filed or co-filed shareowner resolutions on ESG issues. The report also specifically discusses Community Development Financial Institutions, noting that community investment through CDFIs experienced a 47% increase in assets over 2010, and now stands at $61.4 billion. 


Jobs


Sunrise Community Banks - Manager, Commercial Loan Administration (Greater Minneapolis-St. Paul area, MN)

Sunrise Community Banks, Minnesota’s Socially Responsible Bank, is searching for a highly motivated individual to join our Loan Administration team! If you are interested in joining one of Minnesota’s Top 100 Workplaces in 2011 and 2012, and be part of a fun and dynamic team, we have the following opportunity available for a Manager of the Commercial Loan division. This position is responsible for leading the Commercial Loan Administration team by directing work functions, assignments, and special projects. Position will complete selective loan documentation review and HMDA worksheet review. The incumbent will ensure the Loan Administration team is compliant with regulation and policy. Full details available here

 
 
The Reinvestment Fund - Loan Closer (Philadelphia, PA)
 
TRF seeks a Loan Closer to support TRF Loan Officers in closing loan transactions and post-closing follow-up. The Loan Closer will coordinate the loan closing, including preparation of the loan closing checklist, engagement of counsel, tracking of legal costs, review of title commitment, collection and review of due diligence items, entering loan information in TRF databases, and reviewing and preparing closing disbursement. The Loan Closer will be responsible for ensuring that loan documents comply with credit approval and credit policy, and will conduct a post-closing review to ensure that all loan-supported collateral documentation is received, filed, and uploaded to TRF’s document management system. Knowledge of construction financing, commercial real estate loan documentation, and title insurance is required. The successful candidate will be extremely detailed oriented, possess strong organizational skills, and have a demonstrated ability to work on multiple transactions simultaneously. This person will have strong interpersonal skills and have the ability to foster productive working relationships and manage high pressure situations. Full details available here
 
Federal Deposit Insurance Corporation - Deputy Director, Consumer and Community Affairs Branch (Washington, D.C.)
 
The Deputy Director provides strategic leadership and direction for all programs and functions within the Community and Consumer Affairs Branch of the Division of Depositor and Consumer Protection to ensure such programs are administered effectively and efficiently in accordance with Corporate and Division objectives. Salary reflects a pay cap for this position of $250,000.00. FDIC Executive Managers (EM) are in the Federal competitive service and not the Senior Executive Service. As an EM at the FDIC, you will provide executive leadership and managerial direction over substantive activities related to planning, developing, executing, and coordinating the Corporation's programs and policies. Key requirement: Incumbent may be relocated to any duty location to meet management needs. This position is open from 11/26/12-12/21/12. Full details available here
 
The Federal Reserve Bank of San Francisco - Community Development Regional Manager (San Francisco, CA)
 
The Federal Reserve Bank of San Francisco is seeking a Community Development Regional Manager to cover Arizona, Nevada, and Utah. We are looking for an entrepreneurial, self-starter whose portfolio will help shape the development of leading practices that benefit low- and moderate-income communities in this region and beyond. To apply, please go to http://www.frbsf.org/careers.

 


                             
The CDBA Newsflash is a service of the Community Development Bankers Association (CDBA). For more information on other members and the work of CDBA please visit www.cdbanks.org. Or write to us at: 1444 I. Street NW, Suite 201, Washington D.C., 20005 or info@cdbanks.org.

Contact Name: Dana Weinstein; weinsteind@pcgloanfund.org; 202-689-8935 x32

The CDFI Fund seeks a financial analyst to serve as a subject matter expert in processing applications for CDFI Fund awards programs. This position will conduct site visits in order to provide assistance and advisory services to actual or potential awardees. This includes securing information, analyzing operating data and determining the information needed to ensure financial soundness and operational success.

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