Newsflash Feb. 14, 2013

CDBANewsflash - Low Rez For Email 2

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 14, 2013