Newsflash Jan. 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

Date: 
Thursday, January 10, 2013