One PacificCoast Bancorp Completes Recapitalization of Albina Community Bank
The Oregonian
(10-10-13)

One PacificCoast Bancorp Inc. has completed its $8.75 million purchase of fellow CDBA member Albina Community Bank's stock. Albina had been under federal and state regulatory order since 2010 to raise more money and address its bad loans. Under the deal, Albina gets the infusion of capital that regulators ordered it to obtain. Though One PacificCoast now owns most of its stock, Albina will continue to operate under its name with separate management, existing staff and its own board of directors.

Bankruptcy Judge Rejects Charles Street A.M.E. Church’s Repayment Proposal to OneUnited Bank, Creditors
The Bay State Banner
(10-9-13)

Bankruptcy Judge Frank Bailey has rejected Charles Street A.M.E. Church's plan to repay about $5 million in debt to OneUnited Bank and its other creditors. The church had taken out a $3.6 million construction loan from OneUnited which became due on June 1, 2008. Despite a total of five extensions, the church was unable to satisfy its debt by Sept. 1, 2009. A year later, on Aug. 17, 2010, OneUnited sued the church for breach of contract. With about $5,000 in cash and running monthly operating deficits of as high as $20,000, Charles Street’s repayment plan relied heavily on completing its proposed Roxbury Renaissance Center, which would raise funds with rental income from hosting events. But none of the church's figures included repayment of the debt. Bailey’s ruling requires Charles Street to develop another repayment plan. It also requires a court-appointed examiner to monitor the church’s financial activities.

Ross Sees Chapter 11 as New Venue for Bank Acquisitions
Wall Street Journal
(10-15-13)

Wilbur Ross, whose Talmer Bancorp has agreed to invest $97 million to take over Capitol Bancorp's stakes in its four remaining banks, said Tuesday that such deals without government assistance are fast becoming the model for rescuing troubled banks. Capitol Bancorp, which filed for Chapter 11 protection in August 2012, once operated 64 small banks in areas that were particularly hard hit when the nation's housing bubble burst. In recent months, the FDIC seized five banks owned by Capitol. The deal with Talmer Bancorp will keep Capitol's four remaining banks--Bank of Las Vegas, Indiana Community Bank, Michigan Commerce Bank and Sunrise Bank of Albuquerque--out of Chapter 11. Mr. Ross's private equity firm has purchased a number of struggling banks, including BankUnited, Sun Bancorp and Amalgamated Bank in recent years.

Fed Supervisory Head: Regulators Realize the Need for Community Banks
American Banker
(10-10-13)

In an interview with American Banker, Julie Stackhouse, head of supervision at the St. Louis Fed, discusses community banking institutions: "I learned that there's a need for community banks. Maybe that was one of the things that so many of us questioned, especially in light of a lot of the regulation that's been introduced in the last few years. It is clear that community banks... meet lending needs that are often tailored to their communities... There are many challenges ahead for community banks. The number of lending opportunities is diminishing as others get to compete for their traditional loans. We introduced regulation — and community banks don't know how to respond. And I can say with certainty that we will see additional consolidation in community banking in the years ahead... We're doing a massive overhaul of our basic examiner commissioning program, to modernize it... We want to build a program we can maintain and update all the time as changes occur."

Supervisory Expectations for Appraisal and Evaluation Programs
Community Banking Connections
(10-1-13)

A Community Banking Connections report gives an overview of the Federal Reserve examiners' typical community bank appraisal and evaluation review process. Examiners tailor their reviews to the individual banks and their transactions. They consider the size, complexity and nature of a bank’s real estate-related activities. Examiners also review an appraisal to determine whether their methods, assumptions and value conclusions are reasonable and whether the appraisal supports the bank’s credit decision. The most common appraisal regulation violations cited during examinations include failure to obtain an appraisal, failure to obtain an evaluation for exempt transactions, failure to use a state-licensed or state-certified appraiser, failure to meet the appraisal regulations’ minimum appraisal standards and failure to maintain appraiser independence. The report recommends banks review their appraisal procedures, consider organizational changes that promote accountability, improve loan file documentation and maintain a comprehensive appraisal review process.

Comparative Advantages: Creating Synergy in Community Developments
Federal Reserve Bank of San Francisco
(9-1-13)

A working paper from the Federal Reserve Bank of San Francisco explores how Community Development organizations can collaborate effectively. The Obama administration has introduced a series of crosscutting initiatives that require a diverse range of community-based institutions and expertise. These crosscutting initiatives require the participation of multiple organizations, as individual organizations generally do not have the specialized expertise or breadth necessary to implement the policies. The authors find that analyzing the comparative advantages of different types of organizations is a helpful approach for successful collaboration. The paper also includes examples of effective partnerships and a discussion of the implications of comparative advantages for community development. The authors identify several activities that lend themselves well to collaboration and resource-sharing including neighborhood engagement, project development, project management, fundraising and development of performance criteria.

Responsible Endowments Coalition Seeks Executive Director (New York, N.Y.)
The Responsible Endowments Coalition works for social change and corporate accountability through responsible investment of university endowments. The Executive Director will provide leadership toward the achievement of the coalition's mission. She or he will achieve the strategic aims of the Responsible Endowments Coalition through the planning and implementation of annual and long-term objectives and the management staff. The Executive Director reports to the Board of Directors.

 

National Community Reinvestment Coalition Seeks Executive Director (Washington, D.C.)
The Executive Director of the National Community Reinvestment Coalition will be the fund's entrepreneurial leader, primary fundraiser and manager. She or he will develop broad strategic plans and annual work plans, setting priorities for initial lending activities and supervising the fund's staff. The Executive Director will be the public face of the National Community Reinvestment Coalition at trainings, forums, press events and conferences. This position will report to the coalition's Board of Directors and to the Chief Community Development Officer.