One Cal Q3 2008 Report


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One Cal Q3 2008 Report

  1. 1. OneCalifornia Community Development Banking Report }2008 Q3 Does your bank empower your community? Ours does. TM B A N K Member FDIC EQUAL HOUSING LENDER
  2. 2. W WHAT DOES ONECAL DO? “IT SAVES LIVES. LITERALLY.” Davida Coady e asked the women featured in this report how OneCal empowers community. “It saves lives. Literally,” Dr. Davida Coady career goals twenty times—doctors, lawyers, police, teachers—before they go to college, but the impor- tant thing is to believe they are going.” She thinks says. As Executive Director of Options Recovery parents would do better if they knew better. She Services, Davida approached four brokers for fi- coaches them toward their children’s success, say- nancing to keep a building, but was refused. A friend ing: “Don’t ever use the word if. Say when you go suggested a new bank that she’d heard would lend to college. Forget about if. I’m not going to spend 12 to nonprofits, so Davida and she drove around until years working for you if you say if.” TM they found it at 1438 Webster Street in downtown Oral Lee invests securely, putting all Oral Lee Oakland. “There were nice work stations, but no Brown Foundation funds into CDs and treasury people,” Davida says. “Finally someone appeared, notes. “It’s these kids’ future. I can’t play with it.” B A N K She has opened a large Certificate of Deposit at OneCal. and the rest is history.” OneCalifornia had just opened its doors as a This is her first relationship with community devel- BANKING ON community development Bank and Foundation. The opment banking, and she appreciates the personal ONE SUCCESS Oakland location is critical to the Bank’s mission attention she receives. of improving economic opportunity by offering fair Her next dream is to start a boarding school. AT A TIME TM and open access to all individuals, business owners “If we truly want to save our students, we have to and nonprofits in need of financial services. OneCal get them out of the environment they’re in to where builds trust by listening, giving personal service and they’re not fearful of a bullet coming through the using the best technologies and products to help the window.” Her school would be located outside the expanding OneCal family of Bank depositors and bor- city and would guarantee each child a college edu- rowers and Foundation program participants. cation. “This world would be so great if everyone OneCal’s Lisa Zuffi worked with Davida to refi- helped. It’s not that hard. I’ve done it, and I’ve never nance three of five apartment buildings, enabling the missed a meal.” Oral Lee laughs. “Maybe I should!” nonprofit to keep 16 men housed at 1020 59th Street in Berkeley and continue their recovery. The year- uEarly in her career, Njambi Mungai often long residential program empowers participants to went to her mother’s to eat or skipped a meal rather disengage from addiction and crime. Neighborhoods than miss a bill payment, and her diligence earned benefit, too. With a sense of pride, men in the pro- her good credit. She parlayed her experience in sales Dr. Davida Coady gram are doing yard work and building fences. Land- and consulting into her own business, JR Lester & Executive Director lords of neighboring residences are coming around, Associates, Ltd. Through the Ready for Takeoff Options Recovery Services asking for graduates to be tenants. The 1020 build- program for women-owned minority businesses, ing had been a crack house for 30 years. she earned an opportunity to run concessions at the “We’re bursting at the seams,” Davida says. “Our Oakland Airport. housing is running a profit for the program.” Options Now twelve years later with 37 employees, Njambi Recovery operates day treatment re-entry programs has an established See’s Candies business at the airport and a clinic in downtown Berkeley, as well as the res- along with a new Auntie Annie’s Pretzels franchise, idential program, where men and women—addicts, financed with a small business loan through OneCal alcoholics, felons, mentally ill, homeless—learn to Bank. She also has See’s retail concessions at the live clean, sober and productive lives. Embarcadero in San Francisco and ventures begun with other airports. uEleven miles away in Oakland, the Oral Lee “If you see it, it becomes,” Njambi says. She’s Brown Foundation empowers children toward a savvy businesswoman with “wildest dreams” of Oral Lee Brown their own meaningful lives. Born into poverty in Mis- growing sales to $50 million, but with a realistic out- Founder & CEO look to anchor her business in airport markets. Oral Lee Brown Foundation sissippi, Oral Lee Brown put herself through the University of San Francisco while raising a fam- Njambi has become an advocate for the bank. ily and working. In 1987, a chance encounter with a “Jeff [Cheung] and Francine [Boards] really do little girl in East Oakland led Oral to the local school listen to your dream, to what you want to achieve. where she saw a need and filled it: she committed to They are right there helping you with your vision. A sending an entire first grade class to college. Earning number of institutions weren’t interested in hearing $45,000 a year at the time, Oral deposited $10,000 about it,” she says. “The small business owner has to into a trust account and created the Foundation. jump through many hoops. All my assets were tied Every four years, she starts a new group of twen- up in my business. OneCal helped me get past the ty or more children on the road to college gradua- point where I was stuck. They were tremendous in tion. Along the way, they study math, science and assisting me to work things out so that I could get computers in Saturday classes taught by volunteer financing. I needed that little piece of help. I’m so teachers at the Foundation offices. Parents, coun- grateful.” Through OneCal, she has a Norcal Small selors, teachers and ministers recommend the chil- Business State Guarantee loan. Njambi Mungai dren, who generally come from low-income families Njambi is not worried about the economic down- Owner, President & CEO in which no one has gone to college. turn. “I’m an optimist. The glass is half full, and I’m JR Lester & Associates “The earlier I can reach them, the greater impact keeping my head above water.” we have,” Oral Lee says. “The kids may change their 2
  3. 3. T “WE HAVE TO BELIEVE IT CAN BE DONE IN ORDER FOR IT TO BE DONE.” Kat Taylor he word optimist only begins to describe the attributes of Kat Taylor, but she deflects compli- ments. As a co-founder of OneCalifornia and mem- ber of the Board of Directors, she seldom takes center stage other than to sing acapella songs of praise about banking, friends or family to any group who’ll listen, belting out original lyrics as occasions demand. “I want to be part of a just society,” Kat says, when asked about her role in founding OneCal. She’s in her car between meetings. “No matter how people Kat Taylor Kathy Chao Gilda Gonzales start out, they deserve to have access to economic Co-founder Exective Director CEO opportunity and mobility.” Kat and her husband, OneCalifornia Lao Family Community The Unity Council Tom Steyer, invested $22.5 million to start OneCal Development, Inc. Bank and established OneCal Foundation to own the to advancing financial fitness,” The Unity zens, achieve social and economic self- Bank. They will take no repayment or profit. Council’s CEO, Gilda Gonzales, sufficiency. The new building will be a More than a year ago she began addressing the says. Early on, her organization pro- one-stop resource center. Lao Family is subprime crisis. “As we are now seeing, any bank in vided space and participants for a focus reaching out to supporters, clients and the end is dependent upon the health of the whole group to help OneCal identify banking community with a capital campaign. banking system. Some banks lost sight of that, needs of women in The Unity Council Begun as a resource for Southeast choosing to run the risk of sinking their customers programs. The relationship continues Asian refugees, Lao Family now serves through exotic mortgage products or high and un- with a partnership in OneCal Foundation’s more than 10,600 people a year from fair transactional fees on the theory that there would foreclosure prevention project—the 30 nations across the world. The staff always be more customers to exploit. OneCal Bank Community Homeownership Fund speaks 15 languages; 45% of their cli- gets it that our customers’ health is our health.” (CHF)—and in savings accounts at the entele is Asian. She’s an advocate for financial literacy. “We have Bank for first-time home buyers in The The economic downturn hasn’t de- choices: to consume, invest or save money. As indi- Unity Council’s programs. terred her vision. She wants her clients viduals and as a country, if we don’t save more, we “People must prepare themselves to develop solid relationships with a can’t invest more and we won’t have enough pro- and their families for home ownership bank that has their secure financial fu- ductivity, jobs or wealth in the future.” Her insights and retirement, but in changing times, ture at heart. “Many immigrants didn’t come from her Harvard undergrad and Stanford JD/ financial fitness is a notion that’s lost in trust banks in their home countries. MBA education and from roles with philanthropic the communities we serve,” Gilda says. In America, some began to rely on the ventures and nonprofits in the Bay Area, including “Some people who went against our larger brand names, only to be scared an environmental education ranch in Pescadero, the recommendations, who ventured into away by recent failures and mergers. Insight Prison Project in San Quentin and the Tom- fancy complicated adjustable mort- Because of that they may be afraid Kat Foundation in San Francisco. gages, are going through foreclosures. to put money in smaller community Kat notes that in an economic downturn banks It’s not good news, but it’s validating to banks. They don’t know the branding, tend to stop funneling money to businesses. “It our program. 90% of the people in the and may think small is less secure.” makes sense in the short run and for the individual Financial Fitness program haven’t had She anticipates a long-term rela- player, but it sabotages the system upon which we any financial literacy. We get them to tionship with OneCal. “We’re starting all depend.” She is about to go out of cellular range. the place where they understand clear- with this loan, getting to know each oth- “We entered banking at an extraordinary time. We ly what they need to do to move for- er. The process with OneCal was easy are the good ship Minnow on stormy seas. But our ward, whether to buy a home or keep and quick—not a lengthy loan review mission insists that we lend with proper underwrit- their home.” as some banks have. I was able to speak ing and in ways that support community growth. In one Financial Fitness class, par- with the decision maker and come up Credit is a powerful tool in the economy and we ticipants make papier mâché piggy with mutually agreeable terms.” must extend it responsibly. In these times, we need banks. “At first, people ask ‘Why are Kathy envisions a financial services to support trickle up economics and be part of the we doing this?’” Gilda says. “But they hub in the new building. “For 30 blocks optimism. Banking is highly psychological—we have get into it. There’s a sense of pride in there are plenty of payday lenders but to believe it can be done in order for it to be done.” the making and in taking control. The no financial institutions. We’d like to see a bank here with a mission similar key is to raise awareness: ‘What do uKathy Chao believes it can be done. As to ours. I’m interested in exploring the I have in savings? What choices am I Executive Director of Lao Family Community possibility of OneCal’s participation.” making?’ It becomes apparent what Development, Inc., she came to OneCal seek- they can spend.” The piggy banks are ing a real estate loan to acquire an office building uIn neighboring Fruitvale, The symbolic. Participants open actual for her organization in Oakland’s San Antonio area. Unity Council implements and man- bank accounts, such as IDA* or regular The Bank became a lender, along with The Northern ages programs addressing economic, savings at OneCal. “The whole family California Community Loan Fund (OneCal’s first social and physical development for must commit to financial fitness. We’re partnership with NCCLF). Lao Family will occupy families. It empowers its clients to reaching down as far as we can go, en- 10,000 square feet and lease the remaining 20,000 make sound financial decisions through couraging young people to come with to nonprofits and small businesses aligned with Lao courses in English and Spanish, semi- their parents.” Family’s mission, which is to help low-income peo- nars and one-on-one sessions. Gilda sees many people who were ple, whether refugee, immigrants or American citi- “Like OneCal, we are committed prepared to buy a home now unable 3
  4. 4. “WE’RE COMMITTED. IT’’S NOT JUST A JOB—IT’S A MISSON AND A SERVICE.” Gilda Gonzales to due to lending pullbacks. She and her co-work- ers have taken voluntary pay reductions to help the nonprofit weather the downturn. “These efforts are galvanizing. It’s not just a job—it’s a mission and a COURTESY BRENDA SPRIGGS service. OneCal gets that. They are an instrument by which that gets played out.” “We’re looking for more banks to meet us at ground level, to face issues that are unseen and un- heard. We want to address the cash economy preva- lent with immigrant day workers, who become tar- Dr. Brenda Spriggs gets of crime. We want people to be banked with the Board of Directors Carol Galante Viola Gonzales OneCal Bank right people so that their money is secure.” She val- President Advisory Board ues her OneCal relationships. “Jeff [Cheung], Russ BRIDGE Housing OneCal Bank [Haycock] and Sal [Salvador Menjívar] are my bank- ing friends. We see each other often at roundabouts u“My hope and expectation is that We are ONE. We are related: interde- throughout the community. With them, you’re a OneCal will provide a framework for finan- pendent and interrelated.” member of a community, the OneCal family.” cial health,” says Viola Gonzales, Brenda was Chief of Rheumatology a nonprofit executive on a self-imposed at Children’s Hospital in San Francisco uCarol Galante, President of BRIDGE sabbatical, who is still engaged as a con- and is now a Clinical Professor Emeri- Housing Corporation, is partnering with OneCal sultant and civic volunteer. She serves tus at the University of California in Foundation’s foreclosure prevention project, CHF. on the Board of the Oakland Fund for San Francisco. Brenda has served on “It’s great that OneCal early on said ‘We’re small, but Children and Youth and on the Advi- many boards in the Bay Area and as a we should be able to do something here.’” BRIDGE sory Board of OneCal Bank. “The delegate on international missions. She creates high-quality, affordable homes for working mission of the Bank is in tune with my had a venture restoring Victorian prop- families and seniors. It’s the leading affordable hous- work with children and families in low- erties and is now developing a health ing developer in California. Carol works with Hous- income communities.” care consultancy. “I would encourage ing Partnership Network to find banks and compare Formerly Executive Director of the anyone starting a new business to form notes on what similar nonprofits are doing. Latino Community Foundation, she’s a relationship with OneCal. You never “We’re putting our homeowners into fixed held positions in nonprofits, business- come away empty-handed. You get rate, good mortgages, but we see the problems all es and government entities. Recently, tools to manage your financial goals. around.” BRIDGE is exploring the purchase of homes she was on the community leadership Everyone is treated the same—with that have been vacated. Carol’s asking, “Can you save award committee for the San Fran- attention, interest. If you have an idea home owners that have subprimes? Can you rehab cisco Foundation. “It was so much fun that works, it will be very good for both the home and save the neighborhoods, then find to decide on giving a handsome award parties—you & the Bank.” buyers to purchase with a better mortgage product?” to individuals who have done fantastic There are no easy answers. “These loans have been things for people in the community.” Viola is committed to social change. uFarhana Huq, Founder and sliced, diced and packaged into collateral obligations. CEO of C.E.O. Women, is on a mis- It’s difficult to find out who is serving these, to find “Consumer education is key to help- sion to create economic opportunities homeowners who are qualified to benefit from fore- ing low-income communities. A lot of for low-income immigrant and refu- closure prevention programs. With consolidation of working poor don’t have tools to be fi- gee women. In 2000, she funneled her banks, people have fewer and fewer options. It takes nancially literate. Teenagers need adults compassion for the impoverished and a personal touch. It’s a great role for OneCal.” to talk to. They want to understand her admiration for the entrepreneur- For her many roles, Carol wins national and money—how to make it and what to ial spirit into a nonprofit that teaches local awards. In October, she was inducted into do with it. People are concerned about women communication skills, then the Bay Area Business Hall of Fame. She is also a credit. They don’t know who to trust. It’s provides intensive mentoring, coach- board member of OneCal Foundation, and helped a strange time now, and also a tremen- ing and access to capital needed to select locally-owned small businesses for the Indie dous opportunity. It’s time for people start a small business. Awards, a program of Oakland Unwrapped! “The to turn to small banks. There’s a sense A neighbor of OneCal in downtown jurying process was fun. Later, we discovered that of authenticity. Putting your accounts at Oakland, C.E.O. Women holds its micro- one of the business owners has a daughter who had OneCal is a show of confidence.” equity initiative award ceremonies at interned in our office—that’s less than six degrees the Bank. Recipients receive a $1500 of separation!” She sees future connections. “Busi- uDr. Brenda Spriggs is startup grant from C.E.O. Women’s ness owners may live in BRIDGE housing; BRIDGE confident in OneCal. “It empowers me Women Connected Venture Fund and home owners may frequent these businesses or bank to know there is a mission here for re- help from OneCal Bank with opening at OneCal.” lationship banking, a mainstay of com- their business accounts. She sees an easier argument now for going with munity growth. When asked to join Farhana hasn’t seen greater diffi- a smaller bank. “Other banks are not doing it from the board, I was excited that the bank culty recently in getting new businesses the same heart and soul as OneCal. Kat and Tom would encourage a more sustainable up and running, but the economic [co-founders Taylor & Steyer] aren’t going to gain fi- community, would help develop infra- downturn has affected some of her clients’ nancially. OneCal has an overarching mission. It can structure and decrease crime. established ventures, such as a house- tailor products and services. It’s a good model.” “To me, OneCal Bank is more than cleaning business that employs six. an institution; it’s a concept. It means: (“Farhana Huq continued” on p 5, col 2.) 4
  5. 5. “I “OTHER BANKS ARE NOT DOING IT FROM THE SAME HEART AND SOUL AS ONECAL.” Carol Galante ts impact will grow over time,” says Ex- ecutive Director of EBALDC (East Bay Asian Local Development Corporation), Lynette Lee. She is Ortensia believes that a bank can empower people. “OneCal can do this. It can say: ‘After everything that’s happened, we’re still here.’ It’s focused on creating on OneCal Bank’s Advisory Board. “OneCal can’t be assets for low-income individuals. It’s there to help all things to all people, but it’s launched many things it people in small businesses and help nonprofits manage wants to achieve. I see OneCal moving into some of the their money. It can cut through red tape. A nonprofit is neighborhoods. Where we are—West Oakland—there like a small business. If we find a way to generate rev- are no banks at all and large parts of East Oakland have enue, we invest it back in services. It’s like a dividend no banks. A bank presence would encourage healthy to community.” financial practices and alternatives to check cashing places and payday lending.” uJudge Gail Bereola has a can-do attitude Lynette Lee EBALDC develops affordable housing and commu- Executive Director that’s served her well in life and as a Judge of the Su- EBALDC nity facilities with integrated services focused on ten- perior Court of California, County of Alameda and the ants and neighborhood residents. With 15 buildings in Presiding Judge of the Juvenile Court in San Leandro. East Oakland, West Oakland, Emeryville, and San Pablo, She develops innovative programs for the juvenile court EBALDC houses over 3000 occupants. If a tenant has and creates community partnerships to help youth lead trouble making rent, they sit down and make a sched- productive lives. Her vision is being implemented in ule to catch up over time. “Our vacancy rate is generally innovative pilot programs and models adapted for lo- 2%, but right now buildings are full.” cal use. She is devoted to seeing them take hold and The rise in tenants is partly due to subprime de- become routine. Her vision includes restorative justice faults and the lending crunch. “There are lots of homes COURTESY ORTENSIA LOPEZ practices, an independent living skills program, truancy for low-income buyers, but they can’t get loans. They diversion and job training. may have saved 10% down, but now need 20%, unless Gail sees economic empowerment as key to reha- they can get a subsidy. They may have a 650 FICO* bilitation. Case in point: The Fresh Start Café, set up score, but now need 720. We’re chasing underwriters, with the help of probation at juvenile court, employs who keep shifting—L.A., Midwest. The process could male minors from Camp Sweeney, a post-adjudication Ortensia Lopez be faster if the underwriting was done in-house, locally, facility. The boys learn job skills and how to interact Executive Director where there is an understanding of the market.” El Concilio of with the public. Minimum wages earned go into trust San Mateo County EBALDC helps people prepare for home ownership accounts for the boys; portions are used to pay any vic- through financial literacy programs and IDA* accounts tim restitution. The juvenile court also has an Emer- at OneCal Bank. “It’s a good time for financial literacy gency Medical Training program, which leads to EMT programs. When unemployment goes up, adult learn- jobs with good pay. “A lot of minors in the community ing classes grow tremendously. We have waiting lists are unengaged,” Gail says. “Put them into some struc- for classes at Garfield elementary where we start with ture, and they excel.” 5th and 6th graders. We develop depth through a three- Truancy underlies juvenile delinquency, as does tier program, which involved parents.” She notes the family neglect. The court addresses child welfare, fos- challenge of building banking trust among immigrants ter care and group homes. Among all the programs and and refugees. “In these times, cash becomes king.” agencies that work to help youth, Gail sees great effort COURTESY GAIL BEREOLA but little consistency or standardizing action. She in- uOrtensia Lopez, Executive Director of El terfaces with organizations and commissions and does Concilio of San Mateo County, is also Co-chair of educational and community outreach. Her vision of a Greenlining Institute, a multi-ethnic public policy ad- convening force in the community includes OneCal. vocacy group and a member of the OneCal Bank Ad- “We need financial institutions that are committed Judge Gail Bereola visory Board. “Being on the Board is an opportunity to Superior Court to personal and community success. It’s important to Alameda County understand how a bank works. I bring my Greenlining put your money where your mouth is. OneCal offers all experience to it, and learn things I can apply in other that and more. It is saying ‘I have your back. I share work.” El Concilio serves 10,000 people in San Mateo your desires and dreams to become financially success- County by increasing leadership, education, employ- ful. When you become successful, I become successful.’ ment opportunities and access to health care. The chal- OneCal will calm fears and let people know there’s a re- lenges are much the same as in Alameda County. newed commitment to develop economic opportunity.” “There’s only one bank in East Palo Alto, and Red- wood City needs financial services. Banks have to be uFarhana Huq continued from page 4 PHOTO BY KATHI O’LEARY worth their promise and fulfill what they offer. We’ve “Historically, we’re all from immigrants. The immi- had a rude awakening with foreclosure difficulties. Be- grant’s contribution to entrepreneurship is significant,” fore people just trusted. Now they don’t know who to Farhana says. “In the Bay Area, 127,000 women fit our trust. Especially if they’ve come from countries with profile. Their desire to start a business is a solution to government-run banks. For the Latino community, it’s the economic, social and environmental crises. These Farhana Huq about relationship building: ‘If I know you, I trust you.’ small businesses strengthen the local economy.” Founder & CEO It’s empowering to reach deep into a cultural group, C.E.O. Women to meet people where they live, play and socialize, to spend time in parks and churches where people who *For Banking Tips & Terms go to Learn About Banking at work two or three jobs can be with extended family.” 5
  6. 6. Banking on One Success at a Time FIRST CLASS MAIL OneCalifornia Bank, FSB U.S. POSTAGE PAID 1438 Webster Street, Suite 100 OAKLAND, CA Oakland CA 94612 PERMIT NO. 332 Bank with people who empower community. It’s the right time for community development. TM Please join us in For-Benefit Banking. COMMUNITY CONNECTS “W e’ve heard much talk in recent months about Wall Street and Main Street. There is a third street— For more information about the women, organizations Printed on 100% Recycled Paper Photography by Linda Russell,, except as noted otherwise. Community Street. At OneCal we believe it’s critical to OneCalifornia Bank, FSB and businesses featured in this make credit available to qualified small businesses and report, please visit: nonprofit organizations. Players in these arenas help de- Phone 510.550.8400 1438 Webster Street, Suite 100 velop the community, which in turn sustains Main Street, Oakland CA 94612 where we all live and raise our families. In this quarterly report, we feature women with a desire for making a differ- OneCalifornia Foundation ence and a dedication to community. For the contributions they have made and will continue to make, we are proud Phone 510.663.2253 they are part of the OneCal family. We could fill pages with 1438 Webster Street, Suite 101 many more empowering women, and in future issues we Oakland CA 94612 Salvador Menjívar will. Please join this stellar group by aligning your social Executive Director values with how you bank. As a depositor or borrower with OneCal Bank, you automatically contribute to strengthening Bank Hours: community. Please give me a call regarding community M- Th 9 am - 4 pm development projects. Thank you!” F 9am - 5 pm Jeff Cheung President & CEO, OneCalifornia Bank 510.550.8408 u OneCalifornia Bank, FSB, is a member FDIC and an Equal Housing Lender. The FDIC guarantees all traditional types of deposit accounts (checking, savings, trust, money market, CDs) up to $250,000 and guarantees IRAs up to $250,000. The basic deposit accounts insurance limit amount is $250,000 per depositor per insured bank. Certain retirement accounts (such as Individual Retirement Accounts [IRAs]) are insured up to $250,000 per depositor per insured bank. For customers with accounts in multiple categories at a single financial institution, FDIC coverage is based on the titling of the accounts and the category of accounts, not the number of accounts. Please note that the FDIC limit on traditional types of deposit accounts is temporary, through December 31, 2009. Ask us about FDIC-insured deposits up to $50 million through CDARS®, the Certificate of Deposit Account Registry Service. CDARS® is a new, smart option for individuals, businesses and nonprofits who have large cash deposits and are seeking the convenience of working with one bank. ©2008 OneCalifornia Bank