| Tuesday, March 12, 2013

CDBA member 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.

Twin Cities Business has the full story. 

| Monday, March 11, 2013

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.

| Friday, March 8, 2013

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.”

| Thursday, March 7, 2013

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March 7, 2013

Member News

Phi Beta Sigma to Honor Women Leaders in Education, Business, Social Action 
Boston Globe 

The Suffolk County Alumni Chapter of Phi Beta Sigma Fraternity is hosting its Annual Tribute to Black Women & Sapphire Awards Ceremony honoring three women dedicated to uplifting others in their communities. The fraternity will present Sapphire Awards to Dr. Nteri Nelson, an adjunct professor at UMass Boston; Teri Williams, president of OneUnited Bank; and Cindy Diggs, founder of Peace Boston. Phi Beta Sigma was founded at Howard University in 1914 by three African-American male students and now consists of over 200,000 members with 700 chapters in the US, Africa, Europe, Asia, and the Caribbean. Its Sapphire Award is the chapter’s highest honor given to non-members in the areas of education, business, and social action.

Charles Street AME Cash Transfers Subject of Bank Hearing   
Bay State Banner

Two years ago, the Lilly Foundation awarded Charles Street AME a four-year grant of $875,000 to train young pastors. Its pastor in residency program was expected to be the sole beneficiary of the Lilly grant. It wasn’t, according to both Rev. Groover, Pastor of Charles Street AME, and Rev. Opal Adams, the woman who kept the financial books and authored Groover’s annual reports. The recent depositions of Groover and Adams came to light this week in a hearing before U.S. bankruptcy Judge Frank Bailey to determine if the church’s latest amended financial statements should be used as a basis to repay its debts, including $5.2 million in outstanding debt to OneUnited Bank, the church’s main creditor and the nation’s largest black-owned bank. Characterizing the recent church financial statements as “inadequate and incomprehensible,” bank attorneys said they demonstrate “a false portrayal of its financial circumstances and purposefully overlooks its obligations.” “In light of the debtor’s duplicity, and given the true state of the debtor’s financial affairs — that is so far as discovery has uncovered it — there is plainly no credible prospect that it can present a plan or reorganization which is fair and equitable, offered in good faith and feasible,” bank attorneys wrote in a recent brief.   

A Partner in the Community: New Banks Mission is Financial Growth of Neighborhoods and People


When you talk to William Farrow III, president and CEO of Urban Partnership Bank (UPB), the conversation eventually finds its way to the importance of establishing meaningful banking relationships. “How do you change the trajectory of an individual’s or family’s life unless you have some sort of responsible banking relationship?” Farrow asks. “A banking relationship could mean the difference between going to college or not going.” “We have hired and retained experienced financial service professionals with roots in our communities who have a passion for our mission,” Farrow says. “They are putting renewed focus on partnering with key stakeholders to help restore the economic vitality of our urban neighborhoods and transforming them into places where more people will want to go to work, live, and to do business.” He’s hoping that UPB will be that resource that “turns the community from gray to gold” through the relationships established and the generation of community wealth.


Of Interest

Financial Globalization: Retreat or Reset?
McKinsey Quarterly 

For three decades, the globalization of finance appeared to be an unstoppable trend: as the world economy became more tightly integrated, new technology and access to new markets propelled cross-border capital flows to unprecedented heights. But the financial crisis brought that era of rapid growth to a halt. Drawing on its proprietary database of financial assets in 183 countries, Financial Globalization: Retreat or Reset? continues the McKinsey Global Institute’s ongoing series of reports on global capital markets. More than four and a half years after the financial crisis began, they find that recovery has barely started, despite a rebound in some major equity indexes. Growth in financial assets has stalled, while cross-border capital flows remain more than 60 percent below their 2007 peak. Some of the shifts under way represent a healthy correction of the excesses of the bubble years—but continued retrenchment could damage long-term economic growth.

8th Biennial Community Development Research Conference
Board of Governors of the Federal Reserve System and the Federal Reserve Bank of Atlanta

The Community Affairs Officers of the Federal Reserve System are proud to sponsor the eighth biennial Community Development Research Conference. The goal of this event is to highlight new action-oriented and academically rigorous research on resiliency and rebuilding initiatives that can directly inform community development policy and practice. This convening will feature sessions that share interdisciplinary, rigorous, and timely research findings and facilitate a dialogue linking a diverse set of topics relevant to low-income households and neighborhoods. Community developers and practitioners, policymakers, lenders, the philanthropic community, researchers, the financial services sector, state and local economic development agency representatives, and students are all encouraged to attend.

Small Banks Want More Risk Protection for Loan Participations  
American Banker

Executives at smaller banks are understandably wary of jumping back into loan participations following some very bad outcomes during the financial crisis. A number of new business ventures are determined to convince community bankers that their services are a safe way to spur loan growth. Groups such as StoneCastle Partners, Promontory Interfinancial Network, and BancAlliance have started offering loan participation services in the past year, all targeting smaller banks. Each group approaches the market differently while offering their own spin on risk management. Those organizations must convince potential clients that their products offering some level of protection from risk, says Jeff Smith, chairman of Ohio Valley Banc in Gallipolis, Ohio. "In the pre-crisis period, things were humming along and moving so fast," Smith says. "Community banks thought they were doing the best due diligence possible, but I don't think we did. Now we're going to be far more careful and diligent about any participation."



D2D - Innovation Strategist (Washington, D.C.)
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 will preferably be located in Washington, DC.

Federal Reserve Bank of New York - Economic Education Specialist (NY, NY)
Work as senior member of the Economics Education team in its mission to educate and inform the public about macroeconomics, monetary policy, and the role of the New York Fed and Federal Reserve System through an innovative and integrated set of programs and materials meant for school-based and other settings, including the New York Fed’s museum and tours, online, mobile, and other emerging spaces for engaging tudents, teachers, and the public.

Credit Builders Alliance - Executive Director (Washington, D.C.)
The Credit Builders Alliance (CBA) is seeking an Executive Director to guide the next phase of CBA’s growth. The position offers a unique opportunity to take this successful, innovative nonprofit to another level, tapping new markets, shaping new products and services, and carving a place for discussion and change in the credit building field. Working with a board of directors and seven staff, the new CBA Executive Director will have the chance to bring his or her vision and entrepreneurial approach to the social enterprise spirit of the organization.


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

| Thursday, February 28, 2013

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February 28, 2013

Member News

A lawyer for OneUnited Bank on Monday contested a revised bankruptcy reorganization plan filed by the Charles Street AME Church, arguing that new revelations about the congregation’s finances make it less likely the church can afford to pay its debts. “You think this case should be dismissed,’’ Judge Frank Bailey said after a pointed back-and-forth with the bank’s lawyer, who finally agreed. Edelman, the lawyer, said the creditors need to vote again on the church’s plan, with updated financial information that takes into account the new revelations as well. The judge said he would consider the arguments and make a ruling.
The city of Oakland, California is taking a major step toward helping to bring many of its residents, especially illegal immigrants, out of the shadows. It will issue a municipal identification card to anyone who can prove residency. Oakland isn't the only city to issue such ID cards to illegal immigrants. New Haven and San Francisco already do that. The Oakland card, however, has a unique feature — it doubles as a debit card. The ID card is marketed by a Venice, California-based company, SF Global, in association with MasterCard and the Minnesota-based University National Bank.
San Francisco Chronicle 
Tom Steyer uses a blue ballpoint pen to draw the sign of the cross on his left hand every day. His wife, Kathryn "Kat" Taylor, loves spending long days running a small bank in a gritty part of Oakland. Steyer stepped away Jan. 1 from Farallon Capital, the investment firm he founded in 1986, to devote all of his time, energy, and resources to working on reversing global warming. Taylor is on a mission to use One PacificCoast Bank, which she and Steyer opened in 2007, to help those typically shunned by mainstream financial institutions. Steyer, 55, earnest and emphatic, said, "I believe global warming is the big moral issue of our time. I want to change the dialogue and practices around energy." And Taylor, 54, said, "I am holding the torch for this mission every minute of every day. I think we have an opportunity to create a society, an economy, a world, where things happen right and you don't have to come in and correct the injustices."
Broadway Financial in Los Angeles Sells $16 of Loans  
American Banker

Broadway Financial in Los Angeles has unloaded a package of loans in an effort to boost its asset quality. Broadway said that its Broadway Federal Bank sold $16 million in loans to a pair of unnamed buyers at an undisclosed price. The sales included $13.1 million of nonperforming loans. The first sale consisted of $14.1 million of single-family residential mortgages, including $11.8 million in nonperforming loans, removing all nonperforming single-family residential loans from the company's balance sheet.  The other sale involved five church loans for $1.8 million. The $384 million-asset company reduced its nonperforming assets by roughly a third, to $23 million, with the sales. "The sales will allow us to refocus our efforts on improving operations, pursuing growth as permitted under our cease-and-desist orders, and completing our previously announced recapitalization," Wayne-Kent Bradshaw, the company's Chief Executive, said in a press release.


Of Interest

Debating the Future of Fannie Mae and Freddie Mac
The Wall Street Journal 
The Bipartisan Policy Center released a report on Monday entitled "Housing America's Future: New Directions for National Policy." The editors of the Wall Street Journal argue that "the BPC paper calls for replacing Fannie Mae and Freddie Mac with a 'public guarantor' that would oversee a new mortgage market through which banks and other private companies would originate mortgages and issue mortgage-backed securities. Private insurance companies would guarantee the mortgages and cover losses when loans default. The public guarantor would only step in if private-insurance providers were wiped out. To protect taxpayers, a fee paid on each issue of mortgage-backed securities would fund a separate federal insurance pool. At the heart of the commission's report is the conclusion that the U.S. mortgage market should continue to offer access to low-cost, 30-year fixed-rate mortgages and that the government will need to play some market backstop."
Major Banks Aid in Payday Loans Banned by States 
The New York Times 
Major banks have quickly become behind-the-scenes allies of Internet-based payday lenders that offer short-term loans with interest rates sometimes exceeding 500 percent. With 15 states banning payday loans, a growing number of the lenders have set up online operations in more hospitable states or far-flung locales like Belize, Malta, and the West Indies to more easily evade statewide caps on interest rates. While the banks, which include giants like JPMorgan Chase, Bank of America, and Wells Fargo, do not make the loans, they are a critical link for the lenders, enabling the lenders to withdraw payments automatically from borrowers’ bank accounts, even in states where the loans are banned entirely. In some cases, the banks allow lenders to tap checking accounts even after the customers have begged them to stop the withdrawals. “Without the assistance of the banks in processing and sending electronic funds, these lenders simply couldn’t operate,” said Josh Zinner, Co-Director of the Neighborhood Economic Development Advocacy Project, which works with community groups in New York.
The trend could accelerate as interest rates remain low and as investors get comfortable with buying noncumulative perpetual preferred stock, industry experts say. Funds could help banks boost Tier 1 capital and pay for acquisitions. Changing capital rules are forcing "a lot of adjustments" at banks, says Brady Gailey, an analyst at Keefe, Bruyette, & Woods. As banks purge trust preferred stock "capital ratios need to be a little higher." Retail investors searching for higher yields largely make up the buyer pool, says Tommy Adams, Treasurer at First Horizon National (FHN) in Memphis, Tennessee. Many banks opt to sell depositary shares, which represent a share of a preferred security, providing a lower-cost option for retail investors. This makes for a more-attractive investment, says Chip MacDonald, a partner at Jones Day. "It's hard to find yield …so it's a good time to issue instruments that have a yield on them," he says.

Margin Calls - Life on the Edges of America's Financial Mainstream 
The Economist 

Not all the unbanked are poor, nor do all poor people lack bank accounts. But the rate of the unbanked among low-income households (defined in a recent FDIC survey as those with an annual income below $15,000) is more than three times the overall rate. However, for those concerned that their low net worth bars them from the banking system, there are two reasons for hope. The first is that lenders and credit bureaus are starting to use a broader range of data to determine the creditworthiness of prospective borrowers. (Many of the unbanked have no credit histories). But data from rent, mobile-phone, and utility bills give lenders a way to find lower-risk borrowers. The second reason for optimism is an increasingly competitive market in pre-paid cards. Once simply reloadable proxies for cash, many of these cards now offer much the same features as bank accounts. The banks may yet follow suit. Michael Barr of the University of Michigan suggests that big banks should start offering basic accounts—offering electronic payments rather than cheque-writing, for instance—that operate with either pre-paid cards or debit cards. Overdraft-proofing the debit cards and eliminating paper cheques would reduce cost and risk. Such accounts may offer banks only modest revenue, but that is still better than none.


New Jersey Community Capital - New Markets Tax Credit Portfolio Analyst (New Brunswick, NJ)
The primary responsibility of the Portfolio Analyst is to oversee and coordinate the ongoing reporting and compliance activities of NJCC’s NMTC investments and its Participant Loan Portfolio. We are seeking an enthusiastic, detail-oriented professional willing to take responsibility of making sure these areas of NJCC’s operations run smoothly and effectively. The Portfolio Analyst will participate in preclosing negotiations of NMTC transactions to ensure the transactions are structured in accordance with current rules and regulations as well as NJCC policies and procedures. The Portfolio Analyst will monitor NJCC’s post-closing servicing, accounting, and compliance for its NMTC investments and Participant Loan Portfolio.

Philadelphia LISC - Deputy Director (Philadelphia, PA)
The Deputy Director will manage the day-to-day operations of the Philadelphia office, including implementation of a recently completed strategic plan, the Sustainable Communities Initiatives and other programs, and community development lending. The position will serve as team leader for program staff, providing strategic planning, direction, and coaching, and will work closely with community development partners and consultants in planning, implementing, and publicizing projects and programs. The Deputy Director will oversee the identification and analysis of new opportunities; lead the development of workplans for new ventures and programs, and help manage evaluation of current and recent endeavors. The Deputy Director will also work closely with the Executive Director to help manage multiple LISC and external relationships, including committees of Philadelphia LISC’s Local Advisory Board, and to achieve programmatic and development goals.

NCALL - Loan Officer (Dover, Delware)
The NCALL Loan Fund seeks a mission-motivated and experienced person to underwrite and assist nonprofit Loan Fund borrowers. The Loan Officer will engage in marketing and pipeline creation for new loans to these borrowers and will then manage the underwriting process from due diligence through credit memo preparation and Loan Committee approval. This position will plan and implement technical assistance with applicants to ensure they remain well informed and capable of entering into a loan agreement. The Loan Officer will work with the Loan Fund Director and the Loan Fund Manager.

Enterprise Community Investment - Senior Construction Manager (New York, New York)
Enterprise seeks a highly-qualified and experienced architect, engineer, or construction professional to lead the construction activities in the New York office for Enterprise’s Low-income Tax Credit-financed affordable housing projects and to provide support to other Enterprise entities in their strategic initiatives.


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 Or write to us at: 1444 I. Street NW, Suite 201, Washington D.C., 20005 or

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

| Wednesday, February 20, 2013

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February 20, 2013

Member News

Daniel Koehler Joins Board of Southern Bancorp Inc.
Southern Bancorp, Inc. 

Daniel Koehler, president of Koehler Software, Inc., and former Chief Financial Officer of Union National Bank of Little Rock, has joined the board of Southern Bancorp Inc., a family of a community development banks and a nonprofit affiliate that work in concert to revitalize underserved communities in the mid-South. Along with serving on the board, Koehler will chair Southern’s audit committee. “The dual mission of Southern is unique in banking, and I greatly appreciate the opportunity to work with my fellow directors and officers in making a worthwhile contribution to communities in Arkansas and Mississippi,” said Koehler. Prior to his banking career, Koehler was a certified public accountant with Arthur Young & Company in New York, where he divided his time between the firm’s audit and tax practices.


Of Interest

Pastor-Run Covenant Bank Fails 
Crain's Chicago Business 

Covenant Bank, the small West Side lender run by mega-church pastor Bill Winston, was closed late Friday by bank regulators, wiping out the investments of more than 3,000 members of Rev. Winston's Forest Park church. Liberty Bank & Trust Co., an African-American-owned bank in New Orleans, assumed $58 million in Covenant Bank assets and $54 million in deposits, the Federal Deposit Insurance Corp. announced. The failure brings to a bad end the $3 million acquisition more than four years ago of the former Community Bank of Lawndale by the group led by Rev. Winston, with much of the cash supplied by members of his 20,000-member congregation, Living Word Christian Center.

Financial Services Panel OKs Oversight Plan After Testy Markup
CQ Roll Call 

The House Financial Services panel on Friday agreed to its oversight agenda for the next two years, finishing a marathon session that turned a typically routine procedural matter into a testy political posturing exercise. The committee voted along party lines, 33-27, to approve its oversight plan, which is meant to lay out specific priorities for the Congress but also offers the majority an early opportunity to outline its overall message. The vote ended a two-day markup that featured dozens of Democratic amendments to alter the document, most of which were accepted. Highlighting a number of controversial issues on the committee’s plate this year, the 21-page Financial Services plan renews familiar GOP attacks on the effectiveness of the Dodd-Frank financial regulatory overhaul (PL 111-203), the design and work of the Consumer Financial Protection Bureau and government support of the housing finance system. Chairman Jeb Hensarling, R-Texas, said committee leaders worked out a dozen changes to the document before the markup. But Democrats offered more than 40 amendments during the five-hour meeting Thursday, with the panel adopting all but the most controversial proposals.

Warren Takes Center Stage in Grilling Prosecutors on Bank Prosecutions
American Banker 

Sen. Elizabeth Warren (D-MA) turned up the heat Thursday at a Senate Banking Committee hearing on the implementation of Dodd-Frank, demanding to know why regulators are not tougher in pursuing banks in court. The hearing was a chance for several members to question seven top regulators on a range of financial services issues, including the Volcker Rule, qualified residential mortgages, and Basel III. But Warren's exchange with agency officials was one of the tensest, with the freshman senator raising the prospect that many banks can settle charges of wrongdoing but pay a fine that is well below the profits they reaped from their improper actions. She suggested regulators were afraid to take banks to court, giving them leverage in settlement negotiations. "I know there have been some landmark settlements, but we face some very special issues with big financial institutions," Warren said. "If they can break the law and drag in billions in profits, and then turn around and settle, paying out of those profits, they don't have much incentive to follow the law."



Neighborworks America - Director of Public Policy and Legislative Affairs (Washington, D.C.)
Reporting to the Chief Executive Officer, the Director of Public Policy and Legislative Affairs provides leadership, vision, and strategic direction for the organization’s public policy and legislative affairs division. This position is responsible for overseeing and managing a wide range of issues, deliverables, and relationships related to public policy, Congressional appropriations, and legislative intergovernmental affairs. The Director will partner with NeighborWorks’ key stakeholders and customers to ensure relationship-based collaboration and development of annual and long-term objectives, as well as actively plan for, address, and forecast future PPLA needs, executing accordingly.

National Credit Union Administration - Director of Consumer Affairs (Alexandria,VA)
This position is located in the Office of Consumer Protection is is responsible for directing, maintaining and innovating the agency’s consumer financial protection complaint management system. This system includes the NCUA consumer assistance center which processes complaints and inquires via the web, telephone, U.S. mail, and fax. It also involves overseeing a staff responsible for responding to federal credit union member complaints and Congressional inquiries and maintaining the agency’s consumer website.

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 Or write to us at: 1444 I. Street NW, Suite 201, Washington D.C., 20005 or

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

| Thursday, February 14, 2013

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February 14, 2013

Member News

First American International Bank 

First American International Bank (FAIB) announced today the planned retirement of its President and CEO, Alfonso Lau. Mr. Lau will remain with the bank until March 2013 to manage an orderly transition to his successor. Mr. Lau will continue as a Director of FAIB and the holding company, First American International Corporation (FAIC). FAIB also announced that Mark Ricca will become its new President and CEO in March 2013. Mr. Ricca joins the bank from Carver Bancorp, Inc., the bank holding company for Carver Federal Savings Bank in New York City, where he was Executive Vice President. Raymond Yu, Chairman of the Board of both FAIB and FAIC, said, "We would like to thank Al for leading us for the past 13 years as we have grown our bank from one branch in Brooklyn to nine branches in three boroughs. We look forward to continuing to successfully serve our depositors and clients as we complete our transition and Mark assumes the helm."

Carver Bancorp Returns to Profitability
American Banker 

Carver Bancorp (CARV) in New York ended a drought by posting a profitable fiscal third quarter. The $640.6 million-asset company earned $474,000 in the quarter after losing $680,000 a year earlier. "We are pleased to report our first quarterly profit since our real estate loan portfolio was severely impacted by the economic downturn," Deborah Wright, Carver's chief executive, said in a press release. "Our positive net income results for the quarter bring Carver's year-to-date results close to break-even. Our loan performance also continued to improve, with nonperforming assets declining 5% from the prior quarter and 30% year-to-date."

Community Bank of the Bay Announces Unaudited 2012 Fourth Quarter and Full Year Earnings
Community Bank of the Bay 

Highlights include: Net income for 2012 totaled $1,389 thousand, or $0.19 earnings per share, versus a loss of $6 thousand for 2011. Total assets at December 31, 2012 were $155.1 million compared to $128.5 million at December 31, 2011. Net Interest Margin increased five basis points to 4.50 percent, compared with 4.45 percent for the 2012 Third Quarter and decreased eighteen basis points from 4.68 percent for the 2011 Fourth Quarter. "We are pleased with the Bank's progress in 2012. We have taken important steps in assuring that the Bank has a solid foundation from which to continue its growth. As we look to 2013 we expect to benefit from the increased earning asset base and anticipated cost savings from our new Oakland headquarters while we continue to make investments in personnel, especially in the important San Jose and Mid-Peninsula market areas," stated William S. Keller, President and Chief Executive Officer of Community Bank of the Bay.

Of Interest

FDIC's Hoenig Proposes "Full Scope" Big Bank Exams
American Banker 

Thomas Hoenig, already well known for demanding that Wall Street banks should get back to basics, is proposing the same mantra for their examiners. The Federal Deposit Insurance Corp.'s Vice Chairman has stepped up calls for examiners to do a better job verifying a big bank's safety and soundness through a more "systematic review" of its nuts and bolts. While it would not be possible to cover as much material relative to the size of the bank as examiners see at smaller institutions, Hoenig says, the idea is to move large-bank reviews "in the direction of a community bank exam." "You can't necessarily anticipate where the risks are emerging and therefore it becomes more difficult for a targeted exam process to really work, because then it almost becomes random," he said. "What I'm advocating is you go and reassert what I call a 'systematic review' and that will give you a fundamental understanding of the risk."


As newly-elected U.S. Sen. Elizabeth Warren, a Massachusetts Democrat, takes her seat as a member of the Senate Banking Committee, she says defining and enforcing existing rules is as important as new legislation. Asked about her priorities on the banking committee, Warren cited the need to bring “real transparency and accountability” to Wall Street and Washington. “It’s about transparency throughout the financial system. That’s all the way from how the largest financial institutions operate through the…visibility of the terms of a credit card,” she said. Warren said Basel III should be applied to large financial institutions, not small banks. “There’s no reason to believe that current regulations are not completely adequate for managing the risks posed by small banks,” Warren said. “Basel III is about risks posed to the American economy, and that means how to reduce the risks posed by the large financial institutions. Small financial institutions do not pose the same risk.”

OCC Newsletter Highlights State Small Business Credit Initiative
OCC Public Affairs 

The Office of the Comptroller of the Currency (OCC) published the latest edition of its Community Development Investments electronic newsletter, titled “The State Small Business Credit Initiative.” The newsletter describes how national banks and federal savings associations can implement the U.S. Department of Treasury’s State Small Business Credit Initiative (SSBCI) to increase the amount of credit available for small businesses. In addition to an overview of the SSBCI program, the newsletter discusses innovative ways states are leveraging SSBCI to meet the needs of small businesses. One case study explains how the state of Idaho engaged local leaders and benchmarked successful programs in other states to design an SSBCI program that could be used by all banks, regardless of size. Other case studies highlight two credit enhancement products – a collateral support program and loan participation program.

<nyt_headline type=" " version="1.0">New Standards for ‘Safe’ Loans
The New York Times 

An “ability-to-repay” rule, adopted last month by the Consumer Financial Protection Bureau and effective January 2014, is intended to protect borrowers from again falling victim to risky lending. But, the rule does include some accommodations for lenders that serve low- to moderate-income households, in order to encourage such households’ continued access to credit. For example, loans that don’t meet the 43 percent debt-to-income cutoff but do meet affordability standards set by Fannie Mae and Freddie Mac will still be considered qualified mortgages. In addition, balloon-payment mortgages — in which a large balance is due at the end of the loan’s term — will be treated as qualified mortgages when they are originated and held in portfolio by community-based lenders in underserved areas.


Federal Reserve Bank of Boston - Senior Financial Instition Relationship Manager in the Regional & Community Development Department (Boston, MA)
This senior position is responsible for developing and implementing a comprehensive plan for building partnerships with New England financial institutions (FIs), including community banks, credit unions, and community development financial institutions (CDFIs), for the purpose of increasing economic and community development lending, investments, and services across the region. The incumbent builds relationships with senior FI representatives to identify industry trends and launch initiatives that lead to increased economic and community development activities. The position requires strong relationship management experience in the financial services or banking industries as well as experience underwriting community development or small business lending or providing financial services to underserved customers.

City of Columbus, Indiana - Director of Community Development (Columbus, Indiana)
The Director of Community Development plans, organizes, and directs the operations and activities of the Department of Community Development for the City of Columbus, Indiana. The Director of Community Development receives direction from the Mayor of the City of Columbus and reports directly to the Mayor. This position hires and manages staff for the Department of Community Development, consistent with relevant city civilian personnel policies and ordinances; directs the preparation of the annual budget for the department, and establishes and maintains effective working relationships with various government and private entities.

Post-Graduate Center for Mental Health - Deputy Director (New York, New York)
In this newly created role the Director will work closely with the CEO and senior management team to oversee and advance PCMH’s permanent low income housing tax credit and supportive housing portfolio, ensuring effective performance of all related operations. He/She will oversee transactions and property management, as well as participate in project development decisions and coordinate relationships between Real Estate, Finance, Legal, Social Service, and external agencies and partners. The agency seeks a seasoned professional who is highly motivated, energetic, and dedicated to helping NYC’s vulnerable populace and who has the experience and knowledge to facilitate the agency’s continued success. The incoming Director should be a sharp, hard working self-starter who is entrepreneurial in nature. This role requires an individual who has both business and politically savvy, as interaction with community and city/government officials will be another core component of the Director’s responsibilities. 


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 Or write to us at: 1444 I. Street NW, Suite 201, Washington D.C., 20005 or

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

| Thursday, February 7, 2013

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February 7, 2013

Member News


How Shorebank's Successor is Digging Out
Crain's Chicago Business 

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 

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

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

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

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 

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 

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 

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 

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.


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 Or write to us at: 1444 I. Street NW, Suite 201, Washington D.C., 20005 or

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

| Wednesday, February 6, 2013

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 Banks, 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.'" “'The fact is there are a lot of different uses and flexibilities that can happen. In and of itself, a prepaid platform can be a very convenient access point for underserved consumers.'”

Read more about CSFI's case study on how Sunrise Bank has served consumers with new prepaid offerings at their website

| 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 

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 

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 

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

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) 

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

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.


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 Or write to us at: 1444 I. Street NW, Suite 201, Washington D.C., 20005 or

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