| Thursday, April 11, 2013

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April 11, 2013


Member News

United Bank Restructures; Promotes Three Senior-Level Executives

Three senior-level officers with United Bank in Atmore have been promoted to newly created executive vice president positions.Gwen Braden will now serve as executive vice president and chief operations officer; Mike Vincent will serve as executive vice president and chief credit officer; and Casey Gay Zito will serve as executive vice president and chief retail officer. “As we continue our momentum and focus our vision beyond 2013, each will play a critical role in the direction of the bank and in shaping our future,” Robert R. Jones III, president and chief executive officer of United Bank, said of the promotions already approved by the bank’s board of directors. 

Of Interest

Bailed Out Banks Haven't Met Goals of Small Business Lending Program, Report Says

Washington Post

Banks used billions from a small-business lending program to repay government bailout funds, rather than for its intended purpose — making more loans to mom-and-pop operations, according to a watchdog report released Tuesday. The Small Business Lending Fund dished out more than $4 billion to 332 community banks, credit unions, and community development financial institutions to lend to Main Street businesses. By signing up for the lending program, banks could convert their TARP obligations into a lower-interest loan and escape restrictions on executive compensation. But in return, the banks were supposed to increase their lending to small businesses. Instead, 132 TARP recipients participating in the small-business program used about $2.1 billion they were awarded to exit TARP, rather than increasing lending, according to the report from the TARP special inspector general. “For some TARP banks, SBLF turned out to be little more than a TARP exit strategy,” said Christy Romero, special inspector general for TARP.

Six Ways Banks Can Defeat Hackers and Reduce Data Breaches


When it comes to dealing with hackers and data breaches, small banks have more to lose than big banks: They face an uphill battle to win back customer trust once it’s gone, and customer trust is a core value proposition for small and mid-sized banks. They also have fewer resources at their disposal than larger financial institutions. So how can small and regional banks reduce the risk of breach? Consider these six steps to jumpstart your bank’s security plan: 1) Manage information assets like all other assets; 2) Perform a security assessment; 3) Appoint a Security Officer; 4) Educated employees about security best practices; 5) Monitor social media exposure, and 6) Limit data access to only those who need to know.

Bluebird Gains FDIC Insurance

CU Times

Skeptics who saw the seeds of an eventual bank charter in the advent of American Express and Walmart had a change of heart and last week announced that the jointly sponsored Bluebird prepaid card will carry FDIC deposit insurance. Dan Schulman, group president, enterprise growth at American Express, said, “Bluebird is designed to help make their everyday financial lives easier, more convenient, and less expensive. [This] announcement, which reflects feedback from consumers, advocacy groups, and government officials, represents the next set of enhancements that further distinguish Bluebird from other financial services options.” In another change, the company announced that Bluebird cardholders would be able to obtain checks for their accounts that the company will pre-authorize in order to prevent overdrafts.

PayDay Lending Drains Nearly $1 Billion from Communities

Washington Informer

One of the worst ironies of the nagging economic recession is that consumers with the fewest financial resources have lost the most. Now, a new report finds that payday loans not only strip much-needed income from low-income families, but harms the economic viability of the communities where they operate, draining nearly $1 billion a year. Written by the Insight Center for Community Economic Development (Insight Center), it also reveals other net negative impacts of these small-dollar, high cost loans on economic growth and personal bankruptcy filings. The Insight Center examined the net economic impact of the $3.3 billion in interest that borrowers paid to non-bank payday lenders in 2011. The study found that if consumers collectively had an additional $3.3 billion in discretionary spending, it would have resulted in $6.34 billion in economic activity and created 79,000 jobs. In comparison, payday lending activity added $5.56 billion to the national economy and created 65,000 jobs. Combining these figures shows a net loss from payday lending of $774 million in economic growth and more than 14,000 jobs. That's in addition to $169 million lost through Chapter 13 bankruptcies.


Innovations for Poverty Action - Director U.S. Household Finance Initiative (New Haven, CT or Washington, DC)
Innovations for Poverty Action (IPA) seeks a qualified applicant for the position of U.S. Household Finance Initiative Director. The position offers an opportunity to manage and lead a growing research initiative which supports cutting-edge development research. The position will be based out of New Haven, CT and will travel frequently within the United States. The position reports to the Deputy Executive Director for Research and Policy and works closely with the researchers that lead the initiative.

NCB Capital Impact - Community Engagement Associate (Arlington, VA)
The Cornerstone Partnership, an initiative of CSG/NCB Capital Impact, supports local and state homeownership programs that preserve long-term affordability and community stability. Since 2010, it has grown to over 700 members located across the U.S. The partnership  engages with its members through a variety of communication and programming activities, including monthly e-newsletters, bi-monthly webinars, and program assessments. The Community Engagement Associate will help coordinate member programming activities by supporting communications, marketing, and member engagement activities for Cornerstone Partnership. Cornerstone is seeking a strong self-starter with the ability to manage many responsibilities in a fast-paced, creative environment.

Mission Housing Development Corporation - Director of Housing Development (San Francisco, CA)
Mission Housing Development Corporation develops high-quality, well-managed, affordable, sustainable homes and communities that promote the self-sufficiency of low and moderate income families, seniors, and persons with diverse needs. The Director of Housing Development is responsible for the completion of permanent affordable housing projects, the preparation and completion of affordable housing project applications, and the research and securing of future sites for permanent affordable housing.

ACCION Texas - Loan Officer (Dallas/Fort Worth, TX)
ACCION Texas seeks two Loan Officers in the Dallas/Fort Worth area. LO will be responsible for development and growth of ACCION Texas small business lending in the DFW Market by interfacing with banks, borrowers, and business community to identify small businesses that do not have access to loans from commercial sources.

| Tuesday, April 9, 2013

From the Washington Post: "Banks used billions from a small-business lending program to repay government bailout funds, rather than for its intended purpose — making more loans to mom-and-pop operations, according to a watchdog report released Tuesday. The Small Business Lending Fund dished out more than $4 billion to 332 community banks, credit unions, and community development financial institutions to lend to Main Street businesses. By signing up for the lending program, banks could convert their TARP obligations into a lower-interest loan and escape restrictions on executive compensation. But in return, the banks were supposed to increase their lending to small businesses. Instead, 132 TARP recipients participating in the small-business program used about $2.1 billion they were awarded to exit TARP, rather than increasing lending, according to the report from the TARP special inspector general. 'For some TARP banks, SBLF turned out to be little more than a TARP exit strategy,' said Christy Romero, special inspector general for TARP."

| Monday, April 8, 2013

On April 8, 2013 the membership of the Community Development Bankers Association submitted a comment letter to the CDFI Fund in response to the Community Development Financial Institution Fund’s (CDFI Fund) request for public comment on the Interim Final Rule implementing the CDFI Bond Guarantee Program (CBGP). The Interim Final Rule was published in the Federal Register on February 5, 2013. We thank the CDFI Fund for the opportunity to comment and urged the U.S. Department of Treasury to implement the program in a manner that enables the entire, diverse CDFI sector to use the program for the benefit of distressed communities across the country.

Our comments focused primarily on explaining how the CBGP presents an opportunity to enable CDFI banks to significantly expand provision of credit in Low-and Moderate-Income (LMI) communities given the program's design and a rapidly changing and restrictive bank regulatory environment. Among the recommendations, our highest priority is ensuring that the Use of Bond Proceeds and Secondary Loan Requirements are consistent with allowing CDFI banks to use proceeds as Tier 1 capital if approved by the Federal banking regulatory agencies. As such, we asked for the US Treasury’s and CDFI Fund’s support as we seek an exception to the Basel III rule for the CBGP. A second tier set of recommendations was focused on ensuring the CDFI Bond Program proactively mitigates potential conflicts with other regulatory rules that might otherwise prevent CDFI bank participation. A third tier set of recommendations focused on issues of general concern regarding the program's structure and requirements. Like our colleagues in other sectors of the CDFI industry, overall program fees and other costs are the greatest concern. The subsequent recommendations were listed in descending priority order in the letter.

| Thursday, April 4, 2013

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April 4, 2013


Member News

United Bank Director Inducted into Atmore Area Hall of Fame
Atmore News

One can hardly talk about the recent history of the Poarch Band of Creek Indians without mentioning Eddie Tullis. He was deeply involved in the Tribe’s efforts to gain federal recognition. In addition to his work with the Tribe, Tullis served in the U.S. Navy and worked for Monsanto for more than 35 and a half years, retiring in 1991. He has been involved in almost every aspect of tribal government, as well as many areas of the community. His involvement in Indian affairs reaches to the national level. Additionally, he served on the United Bank Board of Directors. He will be inducted into the Hall of Fame in May. 

BankPlus: On the Move

BankPlus welcomes several staff members: Jason Bounds has been promoted to assistant vice president and loan officer in the bank’s Picayune main office. A native of Picayune, Bounds is a graduate of Pearl River Community College and the University of Southern Mississippi. Uvonda McMurtrey has been hired as legal department manager and bank officer. McMurtrey has more than 30 years of experience in the legal field and was most recently employed with Jones, Walker, Waechter, Poitevent, Carrére & Denégre LLP. A native of Terry, McMurtrey attended Hinds Community College. Marcia Reed has been promoted to bank officer in the bank’s Dalton Street office. Reed has been with BankPlus four years as CreditPlus sales manager. She attended Bethel College and the University of Minnesota. She has experience in first-time home buyer training and credit counseling and formerly served on the board of the Mississippi Home Buyer Education Center. Nathan Lucas has been hired as trust officer in the bank’s Wealth Management Group. Lucas has more than five years of experience in wealth management and was most recently employed with Regions Corporate Trust. A native of Jackson, Lucas has a bachelor’s degree from Auburn University and a master of business administration from the University of Alabama-Birmingham and is a graduate of the University of Alabama School of Law.

Small Banks Developing Ways to Compete Against Payday Lenders
American Banker

More community banks are preparing to fight payday lenders and technology upstarts for a bigger share of short-term, small-dollar loans. For smaller institutions such One PacificCoast Bank in Oakland, Calif., and National Bank & Trust of Sycamore in Illinois, the battle isn't about booking loans. Rather, the goal is to win back fee income that community banks have ceded to others in recent years. National Bank is looking into offering individual clients credit lines for up to $1,000. It is also planning a tiered overdraft system, where only a small number of customers pay higher fees. One PacificCoast also has an alternative to paycheck advances. The $282 million-asset bank offers a service to employers that lets workers take out small-dollar loans.

Of Interest

Profits Up at CT Community Banks
The Hartford Business Journal

For Connecticut's community banks, making a buck these days isn't as easy as it used to be. With the prolonged low-interest-rate environment eroding their primary revenue source, the state's smaller lenders are trying to find new ways to make money to pad their bottom lines. Whether it's diversifying into new businesses, slashing interest rates on savings and checking accounts, selling long-term securities to make a quick yield, or even charging new fees like their big bank brethren, the state's community lenders are trying it all to remain in the black. And their strategies appear to be working, at least for now. The state's 49 community banks with less than $2 billion in assets saw their collective profits rise nearly 26 percent in 2012. The banks earned an additional $30 million in profits last year, despite seeing a 3.3 percent decline in interest income, an area that can make up as much as 85 percent of small bank earnings. Still, the profitability of Connecticut banks lags behind the national average, experts say, creating long-term challenges for the industry and putting pressure on executives to find new strategies to remain viable.

How to Utilize Your Lender as a Value-Added Consultant

Commercial banking today isn't just about loans; it involves a partnership with a bank that helps build a business. "Probably the most overused word in banking right now is relationship; everyone talks about it," says Paul Duren, Senior Vice President at Bridge Bank. "Several data collection agencies even changed their terminology from 'standard commercial loans' to 'relationship loans.' But what exactly does that mean?" Smart Business spoke with Duren about what relationship banking means and how it can translate into improved customer service as well as increased profits for your company.

Banks Ask Fed for Fewer Emergency Loans
Wall Street Journal

Borrowing from the Federal Reserve's emergency loan facility during the first three months of 2011 looked a lot like it did before the 2008 financial crisis, with little-known banks taking out relatively small short-term loans, according to data recently released by the central bank The data underscore just how far the U.S. banking system has come since the depths of the financial crisis, when emergency borrowing soared and big, brand-name banks, such as Goldman Sachs Group Inc. and Bank of America Corp., turned to it for help alongside major foreign banks. Borrowing at the discount window peaked at the end of October 2008 when borrowing in a single week exceeded $110 billion.


Leviticus 25:23 Alternative Fund - Executive Director (Elmsford, NY)
Executive Director is the chief staff member and the Fund's primary liaison to borrowers, investors, private and public funding sources, financial institutions, community organizations, and the media. S/he insures that the mission is clearly stated and understood by the staff and the Board; that all programs and policies are in concert with the organization's mission; and the mission is updated, as conditions change. The Executive Director is ultimately responsible for management and program operations, hiring and supervision of staff, interfacing with staff in specific program areas, managing the Board and its committees, and supervision of consultants, when necessary.

| Wednesday, April 3, 2013

The Technical Assistance Video Program is a series of educational videos designed to provide useful information to bank directors, officers and employees on areas of supervisory focus and regulatory changes.

New Director Education Series
The first release of videos provides information to new bank directors about their fiduciary role and responsibilities as well an overview of the FDIC’s Risk Management and Compliance Examination processes. These videos are available on the FDIC's YouTube channel.

Virtual Director's College Program
A second series of videos is a virtual version of the FDIC’s Director's College Program that regional offices deliver throughout the year.  The initial training program will consist of six modules to be released by June 30, 2013.

Virtual Technical Assistance Program
A third group of videos to be released by year-end will provide technical training to bankers on a range of regulatory issues.  The initial training program will consist of six modules.

Proposed Rulemaking Videos
Lastly, the FDIC will continue the model introduced as part of the capital rulemaking process to provide overviews and instruction in a variety of formats, including videos, for more complex rulemakings.

| Wednesday, March 27, 2013

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March 27, 2013


Member News

Final Date Set for Charles Street Bankruptcy Hearing
Bay State Banner

After a year of startling disclosures by Charles Street AME church officials, including an estimated $400,000 in misappropriated funds designated for a church pastoral program, U.S. bankruptcy Judge Frank Bailey set a final hearing date in the increasingly bitter trial pitting the historic church against OneUnited Bank. The April 12 confirmation hearing will determine whether the court will accept the church’s plan to repay nearly $5.2 million in loans to the nation’s largest black-owned bank as well as additional funds to outstanding creditors. Charles Street attorneys have argued that once the bankruptcy hearings are completed, the church can then finish building its Roxbury Renaissance Center and start generating money by holding wedding receptions and community meetings to repay its debts over a 30-year period. OneUnited attorneys have opposed such repayment plans in large part because of what they have discovered are significant problems with the church’s financial statements that are being used to determine the repayment plan.

Bank2 CEO and President Ross Hill to Give OBU's Minter Lecture

Ross A. Hill, Founder and CEO of Bank2, will present Oklahoma Baptist University’s 2013 Minter Lectureship in Business, Leadership, and Christian Ministry on Monday, April 8, at 10 a.m. in Bailey Business Center’s Tulsa Royalties Auditorium. The community is invited to attend. The title of Hill’s lecture will be “Leadership Essentials for the 21st Century.” In the 10 years since he founded Bank2, Hill and his team have helped thousands of people and firmly established the institution as a national star in the banking industry. In 2009 and 2010 the American Banking Journal ranked Bank2 as the first and third community bank in the nation, respectively, as measured by the banking industry’s gold standard of return on equity. The Minter Lectureship in American Business Practice is intended to add a sound understanding of the business world to the educational experience of church ministry majors to broaden their ability to minister effectively. The Minter Lectureship was underwritten by 1940 OBU graduate Lloyd G. Minter of Bartlesville. The annual series began in 1991.

Of Interest

Johnson's Departure Could Set Stage for a Schumer Chairmanship at Senate Banking Committee

CQ Roll Call

South Dakota Democrat Tim Johnson’s decision to retire from the Senate rather than seek re-election in 2014 will likely trigger a scramble for the chairmanship of the Banking, Housing and Urban Affairs Committee at the beginning of the next Congress. Charles E. Schumer, D-N.Y., appears most likely to succeed Johnson if Democrats retain their Senate majority — a task that Johnson’s departure will make more difficult. A Schumer-led Banking Committee might not differ much from what the industry has grown to expect. Although Schumer has cultivated the support of the financial industry, he’s also been a strong backer of the 2010 financial regulatory overhaul. Schumer tends to be a more partisan Democrat than Johnson, who was always politically vulnerable since he hails from a Republican-leaning state. The clearest loser as a result of Johnson’s departure might be the credit card industry, which has found favorable treatment in South Dakota and counts Johnson as one of its most important allies on Capitol Hill.

Remarks of Fed Governor Sarah Bloom Raskin at NCRC Conference

Board of Governors of the Federal Reserve System

Governor Bloom Raskin began by discussing the types of jobs being generated in the current recovery. She stated that the pace of recovery in employment has improved, but that it is important to look at the types of jobs that are being created because those jobs will directly affect the fortunes and challenges of households and neighborhoods as well as the course of the recovery. She then suggested that we think about how the absence of a substantial number of new high-paying jobs, when combined with changes in the landscape for financial services, affects access generally to affordable, sustainable credit. Finally, she explored some of the monetary, supervisory, and regulatory touchpoints in which the situation and prospects of low- and moderate-income working Americans can be addressed.

CityFirst Homes
City First Homes (CFHomes) has appointed Angie Rodgers as Interim President. Ms. Rodgers, a Washington-based affordable housing and community development expert, will serve as President while the board begins a process to fill the position permanently. Ms. Rodgers succeeds Kevin Anderson, who left CFHomes in 2012 to join the education consulting firm EverFi. Mr. Anderson remains on the CFHomes board of directors. "As the housing market in our nation and in our region continues to recover and improve, it is a critical time to reinforce the value of affordable homeownership and quality stewardship that leads to long-term preservation of that housing for low- and moderate-income buyers. This is the heart of City First Homes' mission, and we look forward to Angie providing us the right leadership and strategic direction in the months ahead," said John Hamilton, Board Chair for City First Homes.

Wall Street Journal Hosts Senator Durbin for Discussion

The Wall Street Journal

The Wall Street Journal hosted Sen. Dick Durbin (D., Ill.) at the second Seib & Wessel breakfast last Wednesday. The senator answered questions from Gerald F. Seib, Washington bureau chief, David Wessel, global economics editor, and other members of the media. Senator Durbin responded to questions concerning the federal budget, Social Security, drones, and the current political climate in Washington.

Regulators Are Too Tough on Small Banks: House Banking Panel

American Banker

Members of the House Financial Services Committee raised concerns last Wednesday about the current business environment for small banks, pressing regulators about the lack of bank charters in recent years and the effect of new rules on the industry. Lawmakers from both sides of the political aisle cited the lack of de novo banks, asking Federal Deposit Insurance Corp. officials when the industry might start to see a turnaround. "No new banks were charted in 2012, according to the FDIC. We've seen all the closures, we've talked about how important the fabric of lending is to small businesses and farmers … and all these institutions do for our constituents," said Rep. Shelley Moore Capito, the chairman of the financial institutions subcommittee, which conducted the hearing. "When you see everything closing and nothing opening, that to me is a red flag that we need to monitor." Others raised similar worries, arguing that new rules could be dampening start-up activity. But officials from the FDIC and the agency's inspector general instead pointed to the cyclicality of the market, which continues to recover from the financial crisis. The FDIC also said they hoped to see renewed charter activity in the near future.


Economic and Community Development Institute - Relationship Manager (Columbus, Ohio)
A non-profit 501(c)(3) economic development organization based in Columbus, Ohio seeks an experienced Relationship Manager who will work with startup and existing companies to provide funding opportunities and technical assistance to ensure the success of our clients. The candidate will be responsible for gathering, reviewing, and analyzing all pertinent information, such as financials and business plans, relating to approving a commercial loan application. The perfect candidate should have an existing network of referral sources, five years of experience working in the financial sector, and a passion for seeing entrepreneurs succeed!

Insight Center for Community Economic Development - President and Chief Executive Officer (Oakland, CA)
The Insight Center for Community Economic Development is seeking an outstanding, respected leader to serve as its next President. Insight is a national research, consulting, and legal organization with a mission of helping people and communities become, and remain, economically secure. The position offers the opportunity to provide significant leadership to address the economic insecurity and inequities faced by many in our increasingly diverse country.

Natural Capital Investment Fund - Credit Analyst/Loan Closing Assistant (Winston-Salem, NC)
The Credit Analyst/Loan Closing Assistant reports to and assists the NCIF Director of Lending in building and supporting NCIF's portfolio of triple bottom line businesses. S/he gathers and analyzes financial and business information to determine worthiness of loan or equity applicants, including the identification of risks (market, economic, financial, etc) and strengths. The Credit Analyst/Loan Closing Assistant helps maintain data and files relating to loan applications and portfolio companies and assists in the monitoring and servicing of NCIF's loan and investment portfolio. The Credit Analyst/Loan Closing Assistant will also assist in loan closings and generating closing documents. The Credit Analyst/Loan Closing Assistant would also be responsible for assisting in the risk rating of the loan portfolio and in making annual site visits to portfolio companies. Opportunities exist to take on additional responsibility and authority based on performance.

NCB Capital Impact - Loan Officer (Oakland, CA)
NCB Capital Impact, a not-for-profit lender and technical assistance provider in low-income communities nationwide, seeks a Loan Officer to strengthen its community lending. The Loan Officer is responsible for representing NCB Capital Impact in its lending in underserved communities, focusing in five key sectors --education, health care, healthy foods, housing, and aging-- building on our long history of lending within these sectors. The ideal candidate will have a passion for work in low-income communities, 2-5 years of experience in lending or consulting to not-for-profit organizations, ideally with organizations serving low-income populations, and a track record of relationship development and management. Knowledge of New Markets Tax Credits (NMTC) and Community Development Financial Institutions (CDFIs) is helpful.

| Wednesday, March 27, 2013

In an article entitled "Small Banks Developing Ways to Compete Against Payday Lenders," the American Banker featured CDBA member One PacificCoast Bank. The article states, "More community banks are preparing to fight payday lenders and technology upstarts for a bigger share of short-term, small-dollar loans. For smaller institutions such One PacificCoast Bank in Oakland, Calif., and National Bank & Trust of Sycamore in Illinois, the battle isn't about booking loans. Rather, the goal is to win back fee income that community banks have ceded to others in recent years."

The article continues to describe One PacificCoast's innovation, stating "One PacificCoast also has an alternative to paycheck advances. The $282 million-asset bank offers a service to employers that lets workers take out small-dollar loans."

Read the full coverage of these alternatives to payday loan products below. 

| Thursday, March 21, 2013

CDBANewsflash - Low Rez For Email 2

March 21, 2013


Member News


Agreement with Highland Community Bank Paves Way for Launch of Generations Community Bank
Generations Community Bank

Generations Community Bancorp, Inc. has reached a definitive agreement with Highland Community Company for the acquisition of its subsidiary, Highland Community Bank. This transaction will enable Generations Community Bancorp to complete its goal of opening a minority-led and locally managed community bank, under the name of Generations Community Bank, in the Chicago South Side locations where Highland Community Bank operates today. Generations Community Bank expects to be certified as both a Community Development Financial Institution (CDFI) and a Minority Depository Institution (MDI). "The acquisition of Highland provides an entree for Generations Community Bank to expand access to credit and other financial services to businesses and individuals across the South Side.  Many of these communities have been hit hardest by the recession and tightening of credit," said Matthew Roth, proposed president and CEO of Generations Community Bank. "Highland Community Bank has been a positive presence in the community for four decades and we intend to build upon that tradition, creating a seamless transition for Highland's loyal current customers as we seek to increase the flow of capital to both the commercial and consumer sectors in Auburn-Gresham and the broader South Side community."

CDBA Members Mentioned in NerdWallet's PayDay Alternatives Feature

The article states that "through payday loan alternatives, credit-building loans or other short-term loan options, community banks provide a variety of services to reduce your financial problems. These loans not only get you the funds you need, but they also serve the important purpose of improving your credit. If you have little to no credit, or bad credit, these loans will help you get back on track. Check out one of these short-term loan options at a community bank near you for a quick cash alternative." Included on the list are ABC Bank's "Ready Cash" unsecured line of credit, BankPlus's "Credit Plus" short-term loan, and One PacificCoast Bank's "One Pac Pal Loan." 

Innovative Native American Loan Fund Helps California Tribe Rebuild Historical Lands

ILCC, a Native American owned and managed Community Development Financial Institution (CDFI) based in Montana and the Kashia Band of Pomo Indians of Stewarts Point Rancheria (“Tribe”) recently negotiated an innovative financial agreement to help the Tribe purchase 510 acres of wooded land adjacent to its remote rancheria about 30 miles north of Bodega Bay. The purchase of additional fee lands, which closed on March 1st, expanded the Tribe’s land holdings from just 42 to roughly 550 acres. Until the land is in trust it will not be under complete tribal jurisdiction and control, but the sale is an important first step for the federally-recognized tribe of 860 citizens whose ancestral lands once encompassed most of northwest Sonoma County. ILCC was ILCC was created in 2005 as a collaborative effort between the ILTF of Little Canada, MN and the Native American Community Development Corporation (NACDC) of Browning, MT. NACDC is the nonprofit affiliate of Native American Bank, N.A.

Chicago Bank Looks to Craft Identity Through Community Development
Medill Reports - Chicago

Urban Partnership Bank is in the process of defining itself ----a bold attempt to stand out in an intensely competitive industry dominated by institutions that offer almost exactly the same interest ratesand strikingly similar consumer products. The extent to which Urban Partnership Bank masters the classic young-business identity conundrum will depend on how successful l the bank is in conveying its deeply local focus to Chicago consumers. But those at Urban Partnership are confident that their brand has staying power in the Windy City. “Our product pricing now competes very well with the big banks and small banks,” said Daryl Newell, a former ShoreBank employee who now serves as the director of consumer banking at Urban Partnership Bank. “As long as we can get the word out, we’ll be ok. We’ll figure out how to get to the people. That’s what we are good at doing.”


Of Interest


Comptroller of the Currency Discusses Community Reinvestment Act
Office of the Comptroller of the Currency

Comptroller of the Currency Thomas J. Curry yesterday discussed the Community Reinvestment Act during a speech before the National Community Reinvestment Coalition. He remarked that since its enactment in 1977, the Community Reinvestment Act has served as a bridge that links financial institutions with community stakeholders. However, it became apparent to the banking regulatory agencies that in they could make significant improvements and address concerns being raised by providing clearer guidance in the interpretive Interagency CRA Questions and Answers. Last week the agencies sent to the Federal Register a set of proposed revisions to the CRA Questions and Answers. The goal in proposing revised guidance is to provide more clarity so that banks will look into more opportunities to lend and make investments in rural and underserved areas in their broader statewide and regional areas. As the new guidance is adopted, the agencies will revise examination procedures and introduce examiner training, to ensure that the rules will be applied consistently within and among the three agencies. See the notice published in the Federal Register here

Study Explores Why Some Families Return to Poor Neighborhoods
The Baltimore Sun

When it was introduced in 1994, the federal housing experiment Moving to Opportunity was, to some, a means to rectify poverty. To others, it was a way for cities to dump their poorest residents on the suburbs. Many deemed it a failure, and officials pulled the plug on it in 1999. The program transplanted families from impoverished neighborhoods to wealthy ones, with mixed results, and the moves weren't permanent for most. But a study published last year and ongoing research are seeking to glean more nuanced lessons on why it worked for some families but not others. While some adapted to their new surroundings, most were drawn back to poor areas to accommodate growing families or to access public transportation. "Critics were suggesting this was about racial preferences and preferences to be around family," said Stefanie DeLuca, an associate professor of sociology at Hopkins and co-author of the research. "The reality is more complicated than that."

Small Banks Can Manage C&I Risk Without Apeing Megabanks
American Banker - Feedback

The author's of this Op-Ed argue that while offering many helpful risk management tips, last week's American Banker article "How Small Banks Can Manage Commercial Lending Risk" by Jackie Stewart was a bit disconcerting from an industry perspective. Among other points, the article implied the only way for a community bank to effectively manage its Commercial & Industrial credit portfolio is to incur a disproportionately large expense and effort from copying methods and analytics used by bigger banks. Advanced analytic systems developed for big banks are needlessly expensive, data-intensive and not really the answer for most community banks. Instead, using the data commonly available on most core systems, a relatively simple, inexpensive concentration stress testing model can bring value. Through the application of sound credit concepts, using accessible borrower and loan financial data, a community bank can apply stress testing models successfully with a spreadsheet or a simple, inexpensive web-based tool. Advanced "big bank systems" will not automatically provide advanced useful results. Applying simple stress testing models to the C&I portfolio can result in meaningful and insightful credit information for bank management, the board and regulators. 




Innovations for Poverty Action - Director, US Household Finance Initiative (New Haven, CT)
Innovations for Poverty Action (IPA) seeks a qualified applicant for the position of U.S. Household Finance Initiative Director. The position offers an opportunity to manage and lead a growing research initiative which supports cutting-edge development research. The position will be based out of New Haven, CT and will travel frequently within the United States. The position reports to the Deputy Executive Director for Research and Policy, and works closely with the researchers that lead the initiative. The Director will lead the development and growth of the Initiative, by working with partners, representing the initiative and IPA in public forums, growing the research network, fundraising and disseminating results and informing policy. The Director will also initiate and supervise ongoing impact evaluations, and work with Principal Investigators to generate a body of evidence on the comparative impact and cost effectiveness of a variety of programs and financial products to help people increase savings, manage debt, and improve overall financial decision making. Submit applications through J-PAL’s common application, indicating that you are interested in applying for a "Type 3" position.

Self-Help - Special Assistant to the CEO (Durham, NC)
The Special Assistant to the CEO will provide critical, high-level project support to Martin Eakes, the CEO of Self-Help and the Center for Responsible Lending (CRL). The Special Assistant will work in a social justice, activist organization on projects that involve complex business, financial, and operational issues. The position provides a unique opportunity to be intimately involved in cutting-edge work that impacts the financial services industry and community development. As Self-Help has increasingly been recognized as an expert in and key advocate for responsibly increasing access to capital in low-income communities, demand for the CEO's time to help mobilize the public, private and nonprofit sectors has grown significantly. The multifaceted role of the Special Assistant to the CEO will include a range of responsibilities that will enable more effective leveraging of the CEO's time.

Self-Help Federal Credit Union - President, Second Fedearl Divison (Chicago, IL)
The President of the Second Federal Division is Self-Help Federal Credit Union's leader and institutional representative in the Chicagoland market, with overall leadership responsibilities for the Second Federal division.  This position reports to the Self-Help's EVP/CFO and works closely with Self-Help's national leadership team. The President directs Second Federal activities in accordance with the vision and strategic direction set for the institution. This leader is responsible for ensuring that the division meets its member service, lending, growth, operational and financial performance goals.


| Tuesday, March 19, 2013

On March 19, 2013 the Community Development Bankers Association (CDBA) submitted formal comments to the Consumer Financial Protection Bureau (CFPB) in response to the Bureau’s proposed amendments to the Ability to Repay Standards under the Truth in Lending Act (Regulation Z), as published in the Federal Register on January 10, 2013.

In summary, CDBA supports the CFPB's recognition of the important contribution made by Community Development Financial Institutions (CDFIs) in serving underserved urban and rural markets. We fully appreciate the CFPB for recognizing the regulatory burden that could be imposed upon mission‐focused lenders. We urge the CFPB to proceed with the proposed exemption for CDFIs and other proposed exempted organizations from the Ability to Repay Standards under the Truth in Lending Act. CDBA believes the CFPB's proposed exemptions are a reasonable approach, which balance the protection of consumers with the need for an appropriate level of regulation of the mortgage market. While most CDFI banks are already exempt from the Ability to Repay Standards under other small or rural bank exemptions, not all meet the qualifications for these exemptions. All CDFIs are focused on serving the toughest most credit starved communities and should be exempt from the Ability to Repay Standards under the Truth in Lending Act. We urge the CFPB to be inclusive of all CDFIs under this exemption.

We do, however, urge the agency to address some drafting discrepancies that create confusion about how the CDFI exemption is to be applied. Specifically, the rule contains inconsistencies as to which CDFIs are covered by the proposed § 1026.43(a)(3)(v) exemption. On balance, it appears that the intent of the exemption is to apply to all organizations that are certified CDFIs. Yet, the language in some parts of the proposed rule are inclusive of all CDFIs, while others only reference a narrower group of “nonprofit” CDFIs or “nonprofit creditors.” To date, there are nearly 1,000 organizations that have been certified by the U.S. Department’s Community Development Financial Institutions (CDFI) Fund. While the large majority of those entities are nonprofit organizations, a significant number are for‐profit banks and for‐profit loan funds.

Read the full comment letter for the specific recommendations proposed by the Community Development Bankers Association. 

| Thursday, March 14, 2013

CDBANewsflash - Low Rez For Email 2

March 14, 2013

Member News

One Minnesota Bank Merges 3 Brands
Twin Cities Business 

Three locally-owned Twin Cities banks will be rebranded as one, allowing their parent company to expand offerings both here and nationally. St. Paul-based bank-holding company Sunrise Banks announced Monday that it will consolidate its three Twin Cities bank brands—Franklin Bank, Park Midway Bank, and University Bank—under the Sunrise brand, effective April 1. Sunrise has received regulatory clearance for the merger, and the combined bank will have more than $750 million in assets, eight Twin Cities branch locations, and an office in Sioux Falls, South Dakota. The consolidation comes shortly after Sunrise Chairman Bill Reiling transferred ownership of the business to David Reiling, his son and the company’s CEO. David Reiling, who has served as CEO of Sunrise since 2004, told Twin Cities Business that the ownership succession and bank consolidation plans had been a long time in the making, and the fact that they occurred around the same time was mostly coincidental. Apart from the new name, Sunrise’s local branches will see little change. But the consolidation is meant to allow Sunrise to increase its focus on national products, which will in turn generate capital and allow it to invest further in the Twin Cities, where it may eventually acquire additional banks, Reiling said. The consolidation will also help Sunrise focus on its mission of social responsibility, according to Reiling. Sunrise focuses on what he describes as “under-banked” customers and primarily serves urban communities. Increasing revenue through national products will allow it to reinvest in its Twin Cities operation and the community, he said.

The national law firm of Quarles & Brady LLP hosted a luncheon symposium, entitled “The Theology of Community Development: Building a 21st-Century Ministry,” at its Chicago offices on Monday, February 25. In attendance were ministers from some of the largest and most influential African- American churches in the city and surrounding area. The ministers and their staffs were part of the first in an ongoing series of meetings focusing on service to God through community development. Urban Partnership Bank and Urban Ministries partnered with Quarles & Brady for the informative luncheon meeting, the first of its kind offered by the firm, to add investment and planning intelligence to the law firm’s transactional knowhow.

Best Banks for Women? Examining the Banking Industry on International Women’s Day

The Office of the Comptroller of the Currency manages a directory of minority-owned financial institutions, including women-owned banks, as well as resources for learning more about these institutions that are often more sensitive to the specialized needs of the communities they serve.In fact, one of the OCC’s recommended resources is, which published a listing by Creative Investment Research, Inc. of the top five women- and minority-owned financial institutions, naming the Central Bank of Kansas City as the best bank for women. According to, the top five listing was compiled “using 2009 financial, demographic, HMDA and CRA information from a database maintained by Creative Investment Research.” The list was ultimately based on “social needs in the area the financial institution serves; responsiveness of the financial institution in meeting those social needs; and financial performance of the institution.”

Santa Clarita Valley International Charter Schools to Hold Dinner Honoring Key Contributor
Santa Clarita News

Santa Clarita Valley International Charter Schools (SCVi) is inviting the community to honor a key figure in their success at a benefit dinner March 16.  Marti Heinbaugh, regional manager for Mission Valley Bank, has greatly helped SCVi offer students an interactive learning experience by convincing the bank to donate funding and offer her insight on the SCVi Board of Directors, said Carol Stevenson, a parents volunteer at SCVi. “She’s contributed through advocacy with her employer and vouching for the school,” Stevenson said. “Also on the board, she, like other members, has brought other perspectives and offers her experience.”

Of Interest

An Uptick in Small Business Loans from Big Banks
Bloomberg Business Week - Small Business

A common complaint in the years since the financial crisis began has been that Wall Street banks that were bailed out by the federal government haven’t been lending enough to Main Street businesses. Critics may now have a little less reason to beef, however, because last month big banks approved small business loans at the highest rate in more than two years, according to an index compiled by a business-lending middleman. Biz2Credit calculates its monthly Small Business Lending Index using 1,000 loan applications made over its online lending platform. The index defines large banks as those with $10 billion or more in assets; it also includes data for small banks, credit unions, and alternative lenders. The findings: Big banks approved 15.9 percent of the small business loan applications in the index, up from 15.3 percent in January 2013 and 11.7 percent in February 2012. February’s big bank approval rates were the highest since Biz2Credit began compiling the index in January 2011. Small bank approval rates have also ticked up, to 50.3 percent of loans in February, up from 49.9 percent in the previous month and from 47.6 percent in February 2012. Biz2Credit Chief Executive Officer Rohit Arora pointed to a handful of reasons for higher approval rates: A stable economy over the past 18 months has given banks an historical basis for making loans, and attractive premiums on securities backed by Small Business Administration-guaranteed loans are giving banks greater incentive to work with small businesses.

CFPB - Small Banks Have Bigger Worries Than US
American Banker

The Consumer Financial Protection Bureau is targeting large banks and a wide variety of nonbanks rather than community banks, a regional director of the bureau said last week. In fact, the next industry in the CFPB's crosshairs is nonbank collection agencies, Jim Carley, the bureau's Southeast regional director, said during a panel discussion in Greensboro, N.C., hosted by the North Carolina Bankers Association. The CFPB is already looking into payday lenders, mortgage servicers, mortgage origination firms and credit bureaus. "We're focusing our attention on the larger banks and the nonbanks," Carley told a crowd dominated by community bankers and directors. "So we are continuing to push out into these other sectors that have not had [regulators] supervising them for the last 75 or 80 years." The CFPB is only allowed to conduct examinations of banks with $10 billion or more in assets, he noted. Banks twice that size are considered community banks, but the lion's share of them are well below the threshold.

Senate Appropriators Release Expanded Stopgap Spending Package
CQ Roll Call

Senate appropriators unveiled their version of a continuing resolution that would fund the government through the rest of the fiscal year while giving many federal agencies more leeway to manage spending cuts under sequester. The fiscal 2013 spending package expands on the stopgap funding plan (HR 933) passed by the House last week but maintains the same overall spending level as part of an aim to avoid an impasse that could lead to a government shutdown. Introduced jointly Monday evening by Appropriations Chairwoman Barbara A. Mikulski, D-Md., and the committee’s top-ranking Republican, Richard C. Shelby of Alabama, the Senate version includes three more of the fiscal 2013 spending bills — Agriculture, Commerce-Justice-Science and Homeland Security — and adds exceptions sought by lawmakers. The House-passed version includes new Military Construction-Veterans Affairs and Defense bills. The exceptions, or anomalies, reflect items agreed to last year during House-Senate negotiations on fiscal 2013 spending bills, GOP aides said. They said the Senate bill does not provide additional funds for implementing the 2010 health care law or the Dodd-Frank financial regulatory law. It also won’t contain wider reprogramming authority that earlier had been considered, the aides said. Like the House bill, the Senate measure sticks with current spending caps, which effectively will drop the flow of new spending authority to about $984 billion under sequester from $1.043 trillion.

CDFI Bond Guarantee Program - Outreach Session PowerPoint Now Available

The CDFI Fund is pleased to have met a critical milestone in the implementation of the CDFI Bond Guarantee Program: the release of the interim rule in the Federal Register on February 5, 2013. Comments are welcomed and are due on April 8, 2013. To ensure that the industry has complete and accurate information about the CDFI Bond Guarantee Program, it posted the PowerPoint presentation used during those information sessions. The presentation can be found on the CDFI Fund’s website. The CDFI Fund hopes the information provided in the presentation will be useful to Qualified Issuer and Guarantee Applicants once the program is fully implemented.

After Sandy, Government Lends to Rebuild in Flood Zones

A WNYC and ProPublica analysis of federal data shows at least 10,500 home and business owners have been approved for $766 million in SBA disaster loans to rebuild in areas that the government now says could flood again in the next big storm. The data, which shows loans approved through mid-February, was obtained via a Freedom of Information Act request. More loans could be going to flood-prone areas. The loans require borrowers to get flood insurance, which in turn could encourage some to rebuild properties to be more flood-resistant. However, for many owners there’s no requirement they raise their properties to the heights FEMA recommends. The result: the federal government is helping people rebuild despite the risk that flooding will again destroy the properties. The SBA says it’s not their job to assess whether it’s smart to build in flood-prone areas. Such a hands-off approach worries a diverse coalition of advocates -- including conservative groups, environmental organizations, insurance associations and housing coalitions. These groups are urging government at all levels to change the way it builds in disaster-prone areas and insures such properties.


Nonprofit Finance Fund - Analyst, Financial Services (New York, NY)
This position works nationally and reports to the Senior Underwriter, Financial Services to provide critical support to the Financial Services team, particularly in the delivery and management of a diverse set of financial products and services. The position entails client communication, financial analysis, market research, and data management. In addition the analyst assists in the preparation of reports and presentations and supports senior staff in a variety of functions related to delivery of financial products. The position may be based in either New York City at National Headquarters or Philadelphia, PA.

New York City Department of Consumer Affairs - Financial Empowerment Database Manager and Analyst (New York, NY)

Office of Financial Empowerment Division at Department of Consumer Affairs (DCA) seeks an experienced employee to serve in the Database Manager/Analyst position. The Financial Empowerment Database Manager and Analyst, reporting to the Director for Field Research and Evaluation, will be the database manager for OFE’s Financial Empowerment Center program and support data analysis that will inform program and policy development.


Opportunity Finance Network - Vice President, Policy (Philadelphia, PA)
The VP, Policy serves as OFN’s primary liaison to federal policy makers, representing the organization’s positions on issues affecting Community Development Finance Institutions (CDFIs) as well as responsible for developing and implementing OFN’s policy advocacy strategies. The VP, Policy represents OFN with national policy coalitions and other ally organizations and cooperates as part of the OFN Policy team to implement policy communications with OFN Members. The VP, Policy participates in national policy outreach through involvement in the OFN Annual Conference, OFN Regional Member meetings, and other CDFI policy leadership events. The VP will coordinate with other departments within OFN including Strategic Communications, Consulting, and Knowledge Sharing.

Greater Minnesota Housing Fund & Minnesota Equity Fund - Program Officer for Affordable Housing Finance (Twin Cities, MN)
This position is responsible for developing and maintaining relationships with affordable housing developers and determining the viability of multifamily and single-family real estate development projects located in Minnesota. The Loan Officer will be responsible for underwriting, financial structuring, and due diligence, as well as managing, servicing, and helping to close new loan requests and work directly with other professionals, including legal counsel, developers, lenders, and representative of other agencies and organizations in order to assess project viability and bring funded projects to closing. This position is heavily weighted towards financial analysis, deal structuring, and resolving legal and technical issues that requires knowledge and direct experience with affordable housing programs and tools. The Loan Officer reports to the Director of Lending and works closely with both Greater Minnesota Housing Fund financing programs and the Minnesota Equity Fund.

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

Contact Name: Dana Weinstein;; 202-689-8935 x32