Newsflash Mar. 14, 2013

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March 14, 2013

Member News

One Minnesota Bank Merges 3 Brands
Twin Cities Business 

Three locally-owned Twin Cities banks will be rebranded as one, allowing their parent company to expand offerings both here and nationally. St. Paul-based bank-holding company 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.

The national law firm of Quarles & Brady LLP hosted a luncheon symposium, entitled “The Theology of Community Development: Building a 21st-Century Ministry,” at its Chicago offices on Monday, February 25. In attendance were ministers from some of the largest and most influential African- American churches in the city and surrounding area. The ministers and their staffs were part of the first in an ongoing series of meetings focusing on service to God through community development. Urban Partnership Bank and Urban Ministries partnered with Quarles & Brady for the informative luncheon meeting, the first of its kind offered by the firm, to add investment and planning intelligence to the law firm’s transactional knowhow.

Best Banks for Women? Examining the Banking Industry on International Women’s Day

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.”

Santa Clarita Valley International Charter Schools to Hold Dinner Honoring Key Contributor
Santa Clarita News

Santa Clarita Valley International Charter Schools (SCVi) is inviting the community to honor a key figure in their success at a benefit dinner March 16.  Marti Heinbaugh, regional manager for Mission Valley Bank, has greatly helped SCVi offer students an interactive learning experience by convincing the bank to donate funding and offer her insight on the SCVi Board of Directors, said Carol Stevenson, a parents volunteer at SCVi. “She’s contributed through advocacy with her employer and vouching for the school,” Stevenson said. “Also on the board, she, like other members, has brought other perspectives and offers her experience.”

Of Interest

An Uptick in Small Business Loans from Big Banks
Bloomberg Business Week - Small Business

A common complaint in the years since the financial crisis began has been that Wall Street banks that were bailed out by the federal government haven’t been lending enough to Main Street businesses. Critics may now have a little less reason to beef, however, because last month big banks approved small business loans at the highest rate in more than two years, according to an index compiled by a business-lending middleman. Biz2Credit calculates its monthly Small Business Lending Index using 1,000 loan applications made over its online lending platform. The index defines large banks as those with $10 billion or more in assets; it also includes data for small banks, credit unions, and alternative lenders. The findings: Big banks approved 15.9 percent of the small business loan applications in the index, up from 15.3 percent in January 2013 and 11.7 percent in February 2012. February’s big bank approval rates were the highest since Biz2Credit began compiling the index in January 2011. Small bank approval rates have also ticked up, to 50.3 percent of loans in February, up from 49.9 percent in the previous month and from 47.6 percent in February 2012. Biz2Credit Chief Executive Officer Rohit Arora pointed to a handful of reasons for higher approval rates: A stable economy over the past 18 months has given banks an historical basis for making loans, and attractive premiums on securities backed by Small Business Administration-guaranteed loans are giving banks greater incentive to work with small businesses.

CFPB - Small Banks Have Bigger Worries Than US
American Banker

The Consumer Financial Protection Bureau is targeting large banks and a wide variety of nonbanks rather than community banks, a regional director of the bureau said last week. In fact, the next industry in the CFPB's crosshairs is nonbank collection agencies, Jim Carley, the bureau's Southeast regional director, said during a panel discussion in Greensboro, N.C., hosted by the North Carolina Bankers Association. The CFPB is already looking into payday lenders, mortgage servicers, mortgage origination firms and credit bureaus. "We're focusing our attention on the larger banks and the nonbanks," Carley told a crowd dominated by community bankers and directors. "So we are continuing to push out into these other sectors that have not had [regulators] supervising them for the last 75 or 80 years." The CFPB is only allowed to conduct examinations of banks with $10 billion or more in assets, he noted. Banks twice that size are considered community banks, but the lion's share of them are well below the threshold.

Senate Appropriators Release Expanded Stopgap Spending Package
CQ Roll Call

Senate appropriators unveiled their version of a continuing resolution that would fund the government through the rest of the fiscal year while giving many federal agencies more leeway to manage spending cuts under sequester. The fiscal 2013 spending package expands on the stopgap funding plan (HR 933) passed by the House last week but maintains the same overall spending level as part of an aim to avoid an impasse that could lead to a government shutdown. Introduced jointly Monday evening by Appropriations Chairwoman Barbara A. Mikulski, D-Md., and the committee’s top-ranking Republican, Richard C. Shelby of Alabama, the Senate version includes three more of the fiscal 2013 spending bills — Agriculture, Commerce-Justice-Science and Homeland Security — and adds exceptions sought by lawmakers. The House-passed version includes new Military Construction-Veterans Affairs and Defense bills. The exceptions, or anomalies, reflect items agreed to last year during House-Senate negotiations on fiscal 2013 spending bills, GOP aides said. They said the Senate bill does not provide additional funds for implementing the 2010 health care law or the Dodd-Frank financial regulatory law. It also won’t contain wider reprogramming authority that earlier had been considered, the aides said. Like the House bill, the Senate measure sticks with current spending caps, which effectively will drop the flow of new spending authority to about $984 billion under sequester from $1.043 trillion.

CDFI Bond Guarantee Program - Outreach Session PowerPoint Now Available

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.

After Sandy, Government Lends to Rebuild in Flood Zones

A WNYC and ProPublica analysis of federal data shows at least 10,500 home and business owners have been approved for $766 million in SBA disaster loans to rebuild in areas that the government now says could flood again in the next big storm. The data, which shows loans approved through mid-February, was obtained via a Freedom of Information Act request. More loans could be going to flood-prone areas. The loans require borrowers to get flood insurance, which in turn could encourage some to rebuild properties to be more flood-resistant. However, for many owners there’s no requirement they raise their properties to the heights FEMA recommends. The result: the federal government is helping people rebuild despite the risk that flooding will again destroy the properties. The SBA says it’s not their job to assess whether it’s smart to build in flood-prone areas. Such a hands-off approach worries a diverse coalition of advocates -- including conservative groups, environmental organizations, insurance associations and housing coalitions. These groups are urging government at all levels to change the way it builds in disaster-prone areas and insures such properties.


Nonprofit Finance Fund - Analyst, Financial Services (New York, NY)
This position works nationally and reports to the Senior Underwriter, Financial Services to provide critical support to the Financial Services team, particularly in the delivery and management of a diverse set of financial products and services. The position entails client communication, financial analysis, market research, and data management. In addition the analyst assists in the preparation of reports and presentations and supports senior staff in a variety of functions related to delivery of financial products. The position may be based in either New York City at National Headquarters or Philadelphia, PA.

New York City Department of Consumer Affairs - Financial Empowerment Database Manager and Analyst (New York, NY)

Office of Financial Empowerment Division at Department of Consumer Affairs (DCA) seeks an experienced employee to serve in the Database Manager/Analyst position. The Financial Empowerment Database Manager and Analyst, reporting to the Director for Field Research and Evaluation, will be the database manager for OFE’s Financial Empowerment Center program and support data analysis that will inform program and policy development.


Opportunity Finance Network - Vice President, Policy (Philadelphia, PA)
The VP, Policy serves as OFN’s primary liaison to federal policy makers, representing the organization’s positions on issues affecting Community Development Finance Institutions (CDFIs) as well as responsible for developing and implementing OFN’s policy advocacy strategies. The VP, Policy represents OFN with national policy coalitions and other ally organizations and cooperates as part of the OFN Policy team to implement policy communications with OFN Members. The VP, Policy participates in national policy outreach through involvement in the OFN Annual Conference, OFN Regional Member meetings, and other CDFI policy leadership events. The VP will coordinate with other departments within OFN including Strategic Communications, Consulting, and Knowledge Sharing.

Greater Minnesota Housing Fund & Minnesota Equity Fund - Program Officer for Affordable Housing Finance (Twin Cities, MN)
This position is responsible for developing and maintaining relationships with affordable housing developers and determining the viability of multifamily and single-family real estate development projects located in Minnesota. The Loan Officer will be responsible for underwriting, financial structuring, and due diligence, as well as managing, servicing, and helping to close new loan requests and work directly with other professionals, including legal counsel, developers, lenders, and representative of other agencies and organizations in order to assess project viability and bring funded projects to closing. This position is heavily weighted towards financial analysis, deal structuring, and resolving legal and technical issues that requires knowledge and direct experience with affordable housing programs and tools. The Loan Officer reports to the Director of Lending and works closely with both Greater Minnesota Housing Fund financing programs and the Minnesota Equity Fund.

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, March 14, 2013