Newsflash Jan. 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

Wednesday, January 30, 2013