February 7, 2013
Member News
How Shorebank's Successor is Digging Out
Crain's Chicago Business
(2-6-13)
The successor to ShoreBank, the high-profile urban community lender that failed in August 2010, finally got its loan machine working last year. Urban Partnership Bank, based on Chicago's South Side, blew through its $26 million loan-origination goal for 2012, lending $35 million to small businesses and real estate investors on the city's South and West sides. The $1.1 billion-asset bank, which employs 311, has set a $42 million lending goal for 2013. Bank executives said they continue to be cautious yet are finding opportunities in neighborhoods that have been devastated economically and are suffering through a rash of gun violence that has made national headlines. The good news: “We think fundamentals are stabilizing in our neighborhoods,” CEO William Farrow said in an interview. But Mr. Farrow's isn't sugarcoating the situation: “As a friend recently said, he could buy his parents' house for the same price they paid in 1963.”
Center for Financial Services Features Case Study on CDBA Member Sunrise Community Bank
Center for Financial Services
(2-6-13)
The Center for Financial Services Innovation has launched an "Impact of Innovation" series, profiling enterprises and executives who are driving positive change across the financial services landscape. CFSI aims to highlight why innovation is beneficial to both consumers and the marketplace by providing examples of organizations leading the way on innovation and impact. As part of this series CSFI profiled CDBA member Sunrise Community Bank, located in the Twin Cities, recognizing them for their innovation in providing general purpose reloadable prepaid debit cards. As Chief Executive David Reiling stated, "The prepaid card is the only model that I’ve been able to find that can facilitate a sustainable method to provide [financial] access to low-balance, high transaction consumers and do it in a convenient and transparent way with fair pricing."
Debit ID Card Raises Concern of Fraud
SFGate
(2-6-13)
Oakland officials on Friday are expected to introduce the nation's first dual purpose identification and debit card, functions intended to help the undocumented and the urban poor alike. But the cards are raising serious questions about whether they could expose users to fraud because, unlike regular debit cards, these are inscribed with identifying personal information about the card holder: a date of birth and address. "The city of Oakland is creating a debit card that violates the privacy of the users, and that's outrageous," said Paul Stephens, director of Policy and Advocacy for the Privacy Rights Clearinghouse in San Diego. A lost, stolen, or misplaced card would give strangers or thieves the very security information they would need to drain the bank account, Stephens said. MasterCard as well as the issuing bank, University National Bank, confirmed they would be involved in the card. But their respective representatives declined to provide anyone for interviews about debit card security.
Thomas Ogaard Named President and CEO of Native American Bank
Reuters
(2-1-13)
Veteran banker Thomas Ogaard has been appointed as President and Chief Executive Officer of Native American Bank, N.A. "Tom Ogaard brings a wealth of banking knowledge and experience. We believe his background is critical at this time in our history and look forward to working under his leadership and direction," stated Lew Anderson, Chairman of the bank's Board of Directors. "We are very pleased to have Mr. Ogaard join us as President and CEO." Ogaard comes to Native American Bank from Citizens First National Bank in Princeton, Illinois, where he served as President and Chief Executive Officer for the bank and the bank's holding company. Ogaard also held executive positions at State Bank of Park Rapids, Eagle Valley Bank, Associated Bank/Signal Bank, and TCF Bank in Minnesota.
Of Interest
Federal Reserve's Duke Says Small Banks Poised for Rise in Profits
Bloomberg
(2-5-13)
Federal Reserve Governor Elizabeth Duke said U.S. community banks are poised to benefit from stronger loan demand and an eventual rise in interest rates as the U.S. expansion gains strength. Reduced interest income and weak loan demand are “consequences of a sluggish economy,” Duke said in the text of remarks for a speech in Duluth, Georgia. “As the economic recovery gains momentum, however, both of these conditions should reverse and give bankers the opportunity to deploy the liquidity and capital they have amassed to the benefit of their shareholders and their local economies.” “Credit metrics are now improving in most banks as problem loans have been addressed and resolved and new credit underwriting has been quite restrictive for a number of years,” Duke, a former community banker, said to the Southeastern Bank Management and Directors Conference.
CDFI Fund Releases Mandatory Recertification Guidelines for CDFIs
CDFI Fund
(2-4-13)
The Community Development Financial Institutions Fund (CDFI Fund) announced details regarding the requirement that all Community Development Financial Institutions (CDFIs) originally or most recently certified prior to February 1, 2010 must apply to the CDFI Fund for recertification no later than 11:59 PM EST April 1, 2013. The recertification requirement includes but is not limited to CDFIs currently in the process of submitting an application under the FY 2013 rounds of the Community Development Financial Institutions Program or Native American CDFI Assistance Program, as required in the Notice of Funding Availability released on December 28, 2012. CDFIs that were originally certified after February 1, 2010 are not required to apply for recertification by the April 1, 2013, deadline; however any such CDFI must apply for recertification no later than 60 days after its three-year certification expires.
Munis Find Favor with Small Banks
American Banker
(2-1-13)
The banking industry's appetite for municipal debt has been on the rise, but it's mostly small institutions that are doing the splurging, leaving the typical small bank with a far bigger allocation to munis then the typical large bank. Since 2008, when the Federal Reserve lowered its policy rate to close to zero, munis have grown by a percentage point to make up about 8.4 percent of total securities owned by banks. That's still just a small slice of the aggregate bond portfolio for an industry that has traditionally favored securities with federal backing-particularly mortgage bonds-but the median ratio of munis to total securities has nearly doubled, to 20.6 percent, reflecting the fact that many banks are piling in. Reflecting the structure of an industry populated mostly by little institutions but where assets are heavily concentrated among the largest, the median ratio for banks with less than $10 billion of assets tracks closely with the median ratio for the industry as a whole.
Deposit Pricing Linked to States' Economic Health
American Banker
(1-31-13)
Banks in some states are paying deposit rates that are much higher than the national average, but bankers in those states shouldn't agonize too much about paying up for the funds. Louisiana, Texas, and Virginia are among the states with the highest deposits rates, but they also have relatively healthy economies, says Dan Geller, Executive Vice President at Market Rates Insight, a firm that provides pricing data and analysis to financial firms. Banks that are operating in those states should focus on lending "because it's a sign there is an increase in economic activity," Geller says. Those banks must also monitor and stay competitive with deposit pricing "to make sure they are attracting the right amount of liquidity."
Interim Rule Released for CDFI Bond Guarantee Program
CDFI Fund
(1-31-13)
The U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) released the interim rule for the CDFI Bond Guarantee Program. Through the CDFI Bond Guarantee Program, eligible Community Development Financial Institutions (CDFIs) or their designees will issue bonds that are guaranteed by the Federal government and use the bond proceeds to extend credit to the broader CDFI industry for community development purposes and for long-term community investments. Treasury may guarantee up to 10 bonds per year, each at a minimum of $100 million, with a total of up to $1 billion in bonds guaranteed per year. Prospective CDFI Bond Guarantee Program applicants, community and housing development trade groups, and members of the general public are invited to provide written comments on the CDFI Bond Guarantee Program’s interim rule. The interim rule describes the requirements and parameters for the program’s implementation and administration including among others: application eligibility, application review, guarantee approval, eligible uses of bond loan proceeds, reporting, and compliance monitoring.
Jobs
Opportunity Finance Network (Philadelphia, PA)
1) SVP, Public Relations
The SVP, Public Relations will maintain, protect, and grow OFN's reputation by developing positive story ideas demonstrating the leadership of Opportunity Finance Network and the critical contribution of CDFIs to the economy. The SVP, Public Relations will explore and guide how we can position and expand awareness and support for our work aligning capital with social, economic, and political justice. Stories will highlight opportunity finance issues, facts, OFN Member success story examples, partners, and executive spokespeople. A consistent brand voice will be reflected in all work. The SVP, Public Relations will successfully secure extensive and favorable news coverage by effectively presenting these ideas to news media writers and editors-across mainstream, business, and philanthropic outlets. The SVP, Public Relations will develop and manage processes to collect information about OFN's diverse activities throughout our lines of business and will work with lines of business to develop strategic plans that align with and support overall business objectives.
2) VP, Strategic Communications (Campaigns)
The VP, Strategic Communications will be responsible for implementing multiple integrated marketing campaigns that deliver on brand and drive business communication objectives. This position will work with appropriate departments within the organization to develop, schedule, and implement integrated marketing outreach plans and ensure that those plans are effectively targeted, on budget, and on deadline. The VP, Strategic Communications is also responsible for keeping informed about new strategies and what tactics are most effective to reach our current and potential audiences, including email best practices and internet technologies.
3) Business Analayst
OFN is one of the primary sources of financial and impact performance data on the CDFI industry. OFN collects financial and outcomes data from hundreds of CDFIs annually. CDFIs include nonprofit and for-profit, unregulated and regulated financial institutions (e.g., community development loan funds, credit unions, banks, and venture funds). We verify, manage, and analyze these data, and use them to produce multiple publications on CDFI industry performance. The Business Analyst responsibilities also include quantitative and qualitative research and studies on issues of importance to CDFIs and other stakeholders in the CDFI industry. The primary responsibilities of this position are to develop and manage OFN's CDFI performance data collection and analysis process ensuring maintenance of OFN's leadership role in CDFI performance analysis. The essential functions of the position are to design methods to collect primary data, manage the collection of data, conduct data analyses, develop and undertake issue-focused research, and disseminate findings to broad audiences.
Full details about the positions available here.
The Housing Fund - Lending Officer (Nashville, TN)
The purpose of the Lending Officer is to help develop and originate The Housing Fund's lending activities in such a way that makes effective use of the agency's resources and creates a positive impact on the housing and community development needs of low and moderate income persons and neighborhoods. Full details available here.
City First Homes - President & CEO (Washington, D.C.)
City First Homes (CFHomes) seeks a dynamic and experienced community development and housing leader as President & CEO of a growing organization that is part of one of the nation’s leading community development financial institutions, located in Washington, DC. CFHomes is committed to maximizing the number of well-stewarded, permanently affordable homes in the DC region. During 2013, CFHomes plans to develop and refine lines of business that allow it to best achieve its mission. At present CFHomes stewards and protects the permanent affordability of approximately 75 DC homes, affordable on average to families at 56% of the Area Median Income. CFHomes seeks to gain scale by growing our portfolio in Washington, D.C., and expanding to the greater DC metro area. In particular we seek a President who can create new partnerships, attract new resources, and nurture opportunities. Full details available
here.
Florida Community Loan Fund - Communty Development Officer (Jacksonville, FL)
The Florida Community Loan Fund (FCLF) seeks a candidate with community development experience for a newly created loan officer position. Founded in 1994, FCLF is a statewide nonprofit financial intermediary with a mission of directing financing capital to benefit low-income communities. To date, it has provided financing for affordable/supportive housing, community facilities, and economic development projects totaling approximately $100 million. This Loan Officer is responsible for carrying out lending activities in North Florida with a special focus on Duval County, sourcing community development projects for each of FCLF’s programs. Responsibilities include preparing and processing loan applications, conducting regional marketing and outreach, coordinating technical assistance to prospective borrowers, and performing due diligence and credit analysis.
This position reports to the Director of Lending and is based in Jacksonville. It requires frequent travel within North East and North West Florida and occasional travel to the Loan Fund’s main office in Orlando. Additional travel to statewide and national conferences is also expected. 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
