News

| Wednesday, January 30, 2013

CDBANewsflash - Low Rez For Email 2

January 30, 2013
 


Member News

Albina Community Bank Enters Into Investment Agreement with One PacificCoast Bancorp, Inc.
Albina Community Bank 
(1-30-13)

Albina Community Bank announced today that it has entered into an investment agreement with One PacificCoast Bancorp, Inc. (OPCB). The agreement, which involves a stock purchase by OPCB, will make OPCB the majority owner of the bank. The transaction is structured to raise sufficient capital to bring Albina’s regulatory capital ratios to the level required by its regulators.

Urban Partnership Bank Names Kimberly Jones to Lead Government Relations
Urban Partnership Bank 
(1-24-13)

William Farrow, President and CEO of Urban Partnership Bank, announced that Kimberly Jones, formerly Manager, Socially Responsible Banking in the Nonprofit and Foundation Banking Group, has been named as Urban Partnership Bank’s Director of Government Relations. In this role, Jones will manage relationships with national and municipal officials, government agencies, and other Community Development Financial Institutions (CDFIs) in support of the bank's mission. “Kim Jones brings a great deal of experience and commitment to her new position,” said Farrow. “She understands the role government agencies play in the success of our mission and will work hard to strengthen those relationships as we focus on building better lives and more vibrant communities,” added Farrow.
 


Of Interest

US SIF 2012 Report on Sustainable and Responsible Investing Trends in the US 
US SIF - The Forum for Sustainable and Reponsible Investment 
(1-30-13)

The report finds that $3.31 trillion in US-domiciled assets at year-end 2011 are held by 443 institutional investors, 272 money managers, and 1,043 community investment institutions that apply various environmental, social, and governance (ESG) criteria in their investment analysis and portfolio selection. $1.54 trillion in US-domiciled assets at year-end 2011 are held by more than 200 institutional investors or money managers that filed or co-filed shareholder resolutions on ESG issues at publicly traded companies from 2010 through 2012. After eliminating double-counting for assets involved in both strategies, the overall total of SRI assets is $3.74 trillion, a 22-percent increase since year-end 2009. The assets engaged in sustainable and responsible investing practice currently represent 11.3 percent of the $33.3 trillion in total assets under management tracked by Thomson Reuters Nelson. From 1995, when US SIF Foundation first measured the size of the US sustainable and responsible investing market, to 2012, the SRI universe has increased 486 percent, while the broader universe of assets under professional management in the United States, according to estimates from Thomson Reuters Nelson, has grown 376 percent.

Why Chicago's Neighborhood Banks Are Struggling 
Crian's Chicago Business
(1-28-13)

Regulators have closed 41 area banks since 2009, and virtually no new ones are taking their place. But the hits will keep coming. Industry experts predict that about 10 more community banks — small lenders identified with distinct city neighborhoods or suburbs — will fail as this economic cycle plays out. Harder to forecast is the number of small banks that will sell to bigger institutions over the next five years. But bankers and industry observers say there will be many. That's because the bankers who stuck it out are struggling to generate new loans and contending with narrower profit margins due to ultra-low interest rates and regulatory demands for more capital. "Who the hell wants to get into a high-risk, heavily regulated industry with relatively poor liquidity at single-digit returns?" says Harrison Steans, who made a fortune worth hundreds of millions of dollars over 45 years in Chicago-area community banking and now is chairman of the executive committee at the parent of Rosemont-based Cole Taylor Bank. Given that harsh reality, Chicago's community bankers must forge a new reason for being.

Stop Making Excuses for the CRA
American Banker (Opinion) 
(1-28-13) 

CRA remains a point of contention. Its proponents, most recently Ellen Seidman and Mark Willis in American Banker, attack research purporting to find a link between the CRA loans and ultimate credit loss. CRA supporters implicitly share the official explanation that greed got the better of lenders and regulators were powerless to stop them. CRA purportedly reflected a concern that local bankers were not lending "enough” to good borrowers in their communities or neighborhoods, which were typically characterized by ethnic and/or racial concentrations. This systemic market discrimination supposedly persisted throughout the last century. During the last decade, while greedy mortgage lenders were originating about 20 million subprime loans to borrowers of dubious credit, CRA proponents implicitly argue that lenders would still have discriminated systemically against profitable CRA-qualifying borrowers but for the requirement. Is any of this credible? In this opinion piece, Kevin Villani argues no.

How Banks Should Finance the Social Sector
Harvard Business Review
(1-22-13)

In this Harvard Business Review blog post, author John Canady argues that banks have a role to play in the social sector, but not the one commonly thought of. Instead of trying to develop a convincing business case to provide unsecured lending to higher-risk charities, banks should use their own philanthropic capital to implement the new models that others have developed to address this market failure. Banks' philanthropic capital can be "recycled" in the form of loans to different charities over and over again, thereby achieving exponential impact over a one-off donation. Bank CEOs are under increasing scrutiny to demonstrate the "good side" of banking. Innovation in social finance should be an integral part of that story. Banks already have the necessary evaluation processes, highly skilled talent, and global reach. And they also have sophisticated corporate philanthropy and CSR programs. By combining the two in a new unsecured-lending-to-charities model, banks could achieve much more social impact than they are today.
 


Jobs

Greater Minnesota Housing Fund - Chief Operating Officer (St. Paul, MN)
The Chief Operating Officer (COO) is a management team member, reports to, and plays a complementary leadership role with the CEO. The COO provides a critical link to management team members and staff. The COO manages day to day operations, program, and project priorities, facilitates staff coordination, maintains accountability, and helps align various human and financial resources to achieve organizational goals. The COO ensures that efficient and effective operating systems are implemented, data and documents are maintained, organized, and accessible, that critical informational technology is in place and utilized, and essential analysis and reports are regularly produced to guide management decision making. The COO maintains general oversight of organization work plans, ensures that programs and projects are implemented according to plan and on deadline, and provides structure to personnel and work flow to ensure effective operations. The COO also assists the CEO with board relations, community relations, and interagency relations as needed given the internal dynamics that affect key outcomes and working partnerships. The COO helps to envision the future of Greater Minnesota Housing Fund by setting near term and long term goals, and/or identifying strategic opportunities, taking and inspiring action to achieve goals, and providing a strong day-to-day leadership presence that bridges all projects and all teams. In partnership with the CEO and management team, the COO will keep Greater Minnesota Housing Fund strategic plan relevant and implement new processes and approaches to achieve it. Full details available here

Pro Mujer - Chief Financial Officer (New York, New York)
Pro Mujer, an innovative global organization undergoing rapid growth, is seeking a passionate, seasoned Chief Financial Officer with strong competencies in finance, microcredit, capital markets, operations, and organizational effectiveness. Reporting to the President & CEO, the CFO is a central member of the senior leadership team and provides leadership, input, and influence across the entire organization. The CFO will directly manage a finance team of five in New York and functionally manage Finance Directors in five countries. 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, January 23, 2013

CDBANewsflash - Low Rez For Email 2

January 23, 2013
 


Member News

Southern Bancorp Community Partners Names New Community Development Officer
The Helena Arkansas Daily World
(1-23-13)

Kimberly Hall Clement recently joined the staff of Southern Bancorp Community Partners in Helena as community development officer. Clement will be responsible for supporting and promoting community development initiatives in the areas of health, education, housing, leadership, economic development, and other priorities the Strategic Community Plan defines. Southern Bancorp Community Partners works directly with its affiliate Southern Bancorp, a U.S. Treasury-certified community development bank, to revitalize underserved communities in the Mid-South. Together, they seek to reduce poverty by improving education and economic opportunities for individuals and families. 
 


Of Interest

Affordability for Renters Worsens "Across Board" in Philadelphia Area
Federal Reserve Bank of Philadelphia
(1-23-13)
 
While housing affordability challenges were greatest for extremely low-income renters, affordability indicators worsened across the board for renters in the Third Federal Reserve District between 2005 and 2010, according to a study by the Federal Reserve Bank of Philadelphia’s Community Development Studies Education Department. Of the 1.4 million renter households in the Third District in 2010, half spent more than 30 percent of their income on gross rent (including utilities), a level typically referred to as a housing cost burden. This share drifted up gradually from 44 percent in 2005. The level was highest for extremely low-income renters earning no more than 30 percent of the local median family income. However, the rates for very low-income and low-income renters grew by 5 and 10 percentage points, respectively, during the period. In total, 29 percent of renter households in the Third District had a severe housing cost burden in 2010, an increase of 5 percentage points in five years.
American Banker
(1-17-13)
 
"Force-placed insurance" appears 478 times in the Consumer Financial Protection Bureau's mortgage servicing rules released last Thursday. But the agency's proscriptions do not touch on many of the most controversial aspects about how banks buy the product. That's the broad opinion of consumer advocates, insurance market observers, and Assurant, the largest insurer in the market for the specialty product. The force-placed insurance rule generally sticks to a proposal that the CFPB floated last year and the terms of the national mortgage servicing settlement, neither of which has had a significant effect on industry practices. This may reflect at least in part the bureau's jurisdictional limits; under Dodd-Frank it is authorized to regulate mortgage servicing but not insurance — an industry that largely comes under the purview of state regulators.
 

CFPB Servicing Rules Could Force Institutions Out of the Business
American Banker 
(1-17-13)

The Consumer Financial Protection Bureau's new mortgage servicing rules may force some servicers to exit the business altogether or simply outsource servicing of defaulted loans to third-parties, experts said last Thursday. In many ways, the sweeping rules were as industry players expected, cracking down on everything from how servicers communicate with delinquent borrowers to when they can initiate a foreclosure proceeding. But some servicers said the rules, which were released Thursday and go into effect in a year, might still upend the current business model, with many lenders deciding the cost to comply with the regulations is too prohibitive.
 


Jobs

Albina Community Bank - Senior Credit Administrator (Portland, OR)
This position is responsible for administering and overseeing the Bank’s loan portfolio, including consumer, commercial, and commercial real estate loans.  Responsible for loan approvals, portfolio status, collections, and overall monitoring of loan files.  Develops and recommends loan portfolio objectives, loan policies, and lending procedures. Provides guidance and direction to officers engaged in lending activities. Plans for, coordinates, and manages directly the Bank’s loan decisioning software and oversees all incoming participations. 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, January 17, 2013

CDBANewsflash - Low Rez For Email 2

January 17, 2013
 


Member News

Start Bank Sees Return On Investment
New Haven Indpendent
(1-11-13)

Start Community Bank’s efforts to foster financial literacy and work with first-time account holders have paid off - in the form of an award of nearly $300,000 from the federal government. The two-year-old local community lender announced that news recently at an event at its Whalley Avenue branch. Start was one of 59 banks awarded with a Bank Enterprise Award from the Community Development and Financial Institutions (CDFI) Fund, part of the U.S. Department of the Treasury. Start Community Bank will receive an award of $287,834, which will go toward a number of the young lender’s programs. Those include “Loot Camp,” which teaches teens how to save money, and work with Columbus House to help people who are homeless to establish bank accounts.

Nickelodeon Star and BankPlus Present Check to Friends of Children's Hospital
BankPlus
(1-11-13)

With the help of Nickelodeon star SpongeBob SquarePants, BankPlus presented a check for $148,785.40 to Friends of Children’s Hospital, representing the first year’s proceeds from the bank’s Friends of Children’s Hospital CheckCard program. “On behalf of all the physicians, nurses, staff - and most of all - on behalf of the children who are patients at Batson Children's Hospital and their families, we say thank you to BankPlus,” said Dr. Rick Barr, Suzan B. Thames Professor and Chair of Pediatrics at Batson Children’s Hospital. “Not only for the show of support demonstrated by the Friends of Children's Hospital Checkcard program, but for the many programs that BankPlus supports every day that benefit children. The funds raised will help our mission of providing the best possible health care to all the children of Mississippi.” BankPlus introduced the charitable option for consumers in November of 2011, returning  proceeds from the Friends CheckCard directly to Friends of Children’s Hospital. The Friends CheckCard program is the first of its kind for both BankPlus and Friends.  
 


Of Interest

UNC Report: Still No Evidence to Discredit CRA
UNC Center for Community Capital
(1-16-13)

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."

A Better Way for Banks to Monitor Credit 
McKinsey Quarterly
(1-15-13) 

When banks carefully track small, significant changes in their customers’ financial situations, a study from McKinsey finds that these institutions can improve their fortunes and compete more effectively. Much more effectively, in fact.First-Mover Matters: Building credit Monitoring for Competitive Advantage, a report from McKinsey’s risk practice, shows that one way 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.

Small Banks Turn Themselves Around and Go on the Block
American Banker
(1-14-13)

Another large community bank is eyeing an exit after a breakthrough year. The announcement by Virginia Commerce Bancorp (VCBI) that it had hired Sandler O'Neill to help it explore "strategic alternatives to enhance shareholder value" — including, of course, a sale — puzzles some, considering it was just hitting its stride. Similar questions could be asked of Hanmi Financial in Los Angeles, which hired an investment banker last week. The decisions show the temptation to sell for selective banks in the right markets — ones that are healthy enough to attract buyers, yet not so powerful that they are guaranteed to thrive. The calls are close ones to make.

 


Jobs

Local Iinitatives Support Corporation - Vice President & Chief Credit Officer (New York, New York)
LISC is seeking a qualified candidate to fill the position of Vice President and Chief Credit Officer. The Vice President and Chief Credit Officer will be a member of LISC's Lending Department, and will report to LISC's Senior Vice President for Lending. Full details available here

Sunrise Community Banks - Prepaid Database Architect (Sioux Falls, South Dakota)
In coordination with the SVP – Prepaid and Director of Prepaid Operations, the Prepaid Database Architect will maintain the prepaid database by determining structural requirements, developing and installing solutions, and consulting and developing reporting for prepaid debit card programs. Full details available here

Inter-American Development Bank - Treasury & Risk Lead/Senior Specialist-Quantitative Analysis (Washington, D.C.)
The IDB's Office of Risk Management (RMG) is in charge of managing credit, market, and operational risk within the Bank. RMG seeks to hire a talented and seasoned quantitative risk management professional to lead and implement initiatives and work programs in the Treasury risk area. The candidate will lead the development of innovative and effective risk management methodologies, models, and analytical solutions to support the Bank's treasury risk management activities in a highly complex and dynamic financial market environment. He/she will, individually or as project team leader, implement work programs and projects to strengthen the framework for analyzing, measuring, and managing risks. Full details available here

NCB Capital Impact - Project Manager, The Green House Project (Crystal City, VA)
The Project Manager works with long-term care organizations by providing the day-to-day planning and technical assistance related to implementing The Green House model of care. The Project Manager educates and advises on person-directed practices, as they relate to financial feasibility analysis, physical environment, and operational policies and procedures. Project Managers work with Green House adopters and The Green House Project team to ensure that activities promote and support best practices for sustaining the values and essential practices of the model. Full details here

CARS - Director of Ratings (Flexible location)
The Director of Ratings is responsible for the management and development of CARS Inc’s ratings activity as a line of business and oversees the quality of ratings and the integrity of the rating process. The position requires strong demonstrated skills in the following areas: strategic leadership, line of business management, development and maintenance of multi-faceted client relationships with investors and ratees with a high degree of sensitivity, as well as experience in financial underwriting and/or analysis. Because CARS™ rating work is done through a network of highly skilled, geographically dispersed professional staff and consultants, the Director of Ratings must also be highly organized and communicative to manage decentralized specialists involved in demanding and complex processes. 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, 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

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