Newsflash Mar. 21, 2013
Agreement with Highland Community Bank Paves Way for Launch of Generations Community Bank
Generations Community Bank
Generations Community Bancorp, Inc. has reached a definitive agreement with Highland Community Company for the acquisition of its subsidiary, Highland Community Bank. This transaction will enable Generations Community Bancorp to complete its goal of opening a minority-led and locally managed community bank, under the name of Generations Community Bank, in the Chicago South Side locations where Highland Community Bank operates today. Generations Community Bank expects to be certified as both a Community Development Financial Institution (CDFI) and a Minority Depository Institution (MDI). "The acquisition of Highland provides an entree for Generations Community Bank to expand access to credit and other financial services to businesses and individuals across the South Side. Many of these communities have been hit hardest by the recession and tightening of credit," said Matthew Roth, proposed president and CEO of Generations Community Bank. "Highland Community Bank has been a positive presence in the community for four decades and we intend to build upon that tradition, creating a seamless transition for Highland's loyal current customers as we seek to increase the flow of capital to both the commercial and consumer sectors in Auburn-Gresham and the broader South Side community."
CDBA Members Mentioned in NerdWallet's PayDay Alternatives Feature
The article states that "through payday loan alternatives, credit-building loans or other short-term loan options, community banks provide a variety of services to reduce your financial problems. These loans not only get you the funds you need, but they also serve the important purpose of improving your credit. If you have little to no credit, or bad credit, these loans will help you get back on track. Check out one of these short-term loan options at a community bank near you for a quick cash alternative." Included on the list are ABC Bank's "Ready Cash" unsecured line of credit, BankPlus's "Credit Plus" short-term loan, and One PacificCoast Bank's "One Pac Pal Loan."
ILCC, a Native American owned and managed Community Development Financial Institution (CDFI) based in Montana and the Kashia Band of Pomo Indians of Stewarts Point Rancheria (“Tribe”) recently negotiated an innovative financial agreement to help the Tribe purchase 510 acres of wooded land adjacent to its remote rancheria about 30 miles north of Bodega Bay. The purchase of additional fee lands, which closed on March 1st, expanded the Tribe’s land holdings from just 42 to roughly 550 acres. Until the land is in trust it will not be under complete tribal jurisdiction and control, but the sale is an important first step for the federally-recognized tribe of 860 citizens whose ancestral lands once encompassed most of northwest Sonoma County. ILCC was ILCC was created in 2005 as a collaborative effort between the ILTF of Little Canada, MN and the Native American Community Development Corporation (NACDC) of Browning, MT. NACDC is the nonprofit affiliate of Native American Bank, N.A.
Chicago Bank Looks to Craft Identity Through Community Development
Medill Reports - Chicago
Urban Partnership Bank is in the process of defining itself ----a bold attempt to stand out in an intensely competitive industry dominated by institutions that offer almost exactly the same interest ratesand strikingly similar consumer products. The extent to which Urban Partnership Bank masters the classic young-business identity conundrum will depend on how successful l the bank is in conveying its deeply local focus to Chicago consumers. But those at Urban Partnership are confident that their brand has staying power in the Windy City. “Our product pricing now competes very well with the big banks and small banks,” said Daryl Newell, a former ShoreBank employee who now serves as the director of consumer banking at Urban Partnership Bank. “As long as we can get the word out, we’ll be ok. We’ll figure out how to get to the people. That’s what we are good at doing.”
Comptroller of the Currency Discusses Community Reinvestment Act
Office of the Comptroller of the Currency
Comptroller of the Currency Thomas J. Curry yesterday discussed the Community Reinvestment Act during a speech before the National Community Reinvestment Coalition. He remarked that since its enactment in 1977, the Community Reinvestment Act has served as a bridge that links financial institutions with community stakeholders. However, it became apparent to the banking regulatory agencies that in they could make significant improvements and address concerns being raised by providing clearer guidance in the interpretive Interagency CRA Questions and Answers. Last week the agencies sent to the Federal Register a set of proposed revisions to the CRA Questions and Answers. The goal in proposing revised guidance is to provide more clarity so that banks will look into more opportunities to lend and make investments in rural and underserved areas in their broader statewide and regional areas. As the new guidance is adopted, the agencies will revise examination procedures and introduce examiner training, to ensure that the rules will be applied consistently within and among the three agencies. See the notice published in the Federal Register here.
Study Explores Why Some Families Return to Poor Neighborhoods
The Baltimore Sun
When it was introduced in 1994, the federal housing experiment Moving to Opportunity was, to some, a means to rectify poverty. To others, it was a way for cities to dump their poorest residents on the suburbs. Many deemed it a failure, and officials pulled the plug on it in 1999. The program transplanted families from impoverished neighborhoods to wealthy ones, with mixed results, and the moves weren't permanent for most. But a study published last year and ongoing research are seeking to glean more nuanced lessons on why it worked for some families but not others. While some adapted to their new surroundings, most were drawn back to poor areas to accommodate growing families or to access public transportation. "Critics were suggesting this was about racial preferences and preferences to be around family," said Stefanie DeLuca, an associate professor of sociology at Hopkins and co-author of the research. "The reality is more complicated than that."
Small Banks Can Manage C&I Risk Without Apeing Megabanks
American Banker - Feedback
The author's of this Op-Ed argue that while offering many helpful risk management tips, last week's American Banker article "How Small Banks Can Manage Commercial Lending Risk" by Jackie Stewart was a bit disconcerting from an industry perspective. Among other points, the article implied the only way for a community bank to effectively manage its Commercial & Industrial credit portfolio is to incur a disproportionately large expense and effort from copying methods and analytics used by bigger banks. Advanced analytic systems developed for big banks are needlessly expensive, data-intensive and not really the answer for most community banks. Instead, using the data commonly available on most core systems, a relatively simple, inexpensive concentration stress testing model can bring value. Through the application of sound credit concepts, using accessible borrower and loan financial data, a community bank can apply stress testing models successfully with a spreadsheet or a simple, inexpensive web-based tool. Advanced "big bank systems" will not automatically provide advanced useful results. Applying simple stress testing models to the C&I portfolio can result in meaningful and insightful credit information for bank management, the board and regulators.
Innovations for Poverty Action - Director, US Household Finance Initiative (New Haven, CT)
Innovations for Poverty Action (IPA) seeks a qualified applicant for the position of U.S. Household Finance Initiative Director. The position offers an opportunity to manage and lead a growing research initiative which supports cutting-edge development research. The position will be based out of New Haven, CT and will travel frequently within the United States. The position reports to the Deputy Executive Director for Research and Policy, and works closely with the researchers that lead the initiative. The Director will lead the development and growth of the Initiative, by working with partners, representing the initiative and IPA in public forums, growing the research network, fundraising and disseminating results and informing policy. The Director will also initiate and supervise ongoing impact evaluations, and work with Principal Investigators to generate a body of evidence on the comparative impact and cost effectiveness of a variety of programs and financial products to help people increase savings, manage debt, and improve overall financial decision making. Submit applications through J-PAL’s common application, indicating that you are interested in applying for a "Type 3" position.
Self-Help - Special Assistant to the CEO (Durham, NC)
The Special Assistant to the CEO will provide critical, high-level project support to Martin Eakes, the CEO of Self-Help and the Center for Responsible Lending (CRL). The Special Assistant will work in a social justice, activist organization on projects that involve complex business, financial, and operational issues. The position provides a unique opportunity to be intimately involved in cutting-edge work that impacts the financial services industry and community development. As Self-Help has increasingly been recognized as an expert in and key advocate for responsibly increasing access to capital in low-income communities, demand for the CEO's time to help mobilize the public, private and nonprofit sectors has grown significantly. The multifaceted role of the Special Assistant to the CEO will include a range of responsibilities that will enable more effective leveraging of the CEO's time.
Self-Help Federal Credit Union - President, Second Fedearl Divison (Chicago, IL)
The President of the Second Federal Division is Self-Help Federal Credit Union's leader and institutional representative in the Chicagoland market, with overall leadership responsibilities for the Second Federal division. This position reports to the Self-Help's EVP/CFO and works closely with Self-Help's national leadership team. The President directs Second Federal activities in accordance with the vision and strategic direction set for the institution. This leader is responsible for ensuring that the division meets its member service, lending, growth, operational and financial performance goals.