One Cal Report Q1 2009


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One Cal Report Q1 2009

  1. 1. OneCalifornia Community Development Banking Report }2009 Q1 Does your bank partner with community? Ours does. TM B A N K
  2. 2. O Partners Aligned to Improve Economic Opportuntity neCalifornia Bank, FSB, believes that partnering with community will create strong, sustainable community. Partners, by definition, are those associated with one another in “There’s no reason we can’t make a significant change locally, as has been done nationally, using similar a sphere of common interest. For some banks, that sphere may revolve tightly around financial enterprises. For OneCal, it techniques of involvement.” TM enlarges to include organizations serving missions aligned Nicole Taylor with its own—to improve economic opportunity for low- to B A N K moderate-income communities. This banking report explores Deborah said. “We’re clear about that value and about mission alignment and highlights innovative partnerships. having authentic engagement. At the end of the day, it’s BANKING ON Key among OneCalifornia’s newest partners is East one customer at a time. We’ve been paying attention to ONE SUCCESS Bay Community Foundation, featured on our report cover. this for a long time. OneCal believes this, too. In this The Foundation manages about 500 charitable funds valued partnership, no one is afraid to look at what hasn’t AT A TIME TM at $350 million for individuals, families and corporations. worked and ask, ‘So what’s next?’” Questionned The Foundation invests the funds and assists fund holders about the banking climate in general, she continued, with their charitable giving. It also makes grants from “There’s enormous mistrust of banking in communities its own endowments and leads initiatives aimed at two of poverty, especially now. Folks need to know that related issues: advancing economic opportunity for indi- their concerns are heard and understood, and we need viduals and families in need and ensuring young children are to deliver products and services that these individuals successful in the education system so they have economic want. I’m very excited about creating alternatives to opportunity when they become adults. payday lending, for instance. If we do, the social invest- President & CEO Nicole Taylor, Board Chair Michael ment will be a sound one.” Deborah stressed that you Dalby and Board Chair-elect Deborah Alvarez-Rodriguez don’t create products and services just because it’s the took time in early March from their busy schedules to talk right thing to do, it also has to make business sense. about the OneCal partnership—how it came to be, where “The subprime mortgage fiasco was not universally it’s going and why it matters. beneficial, but a foreclosure prevention product line Think back to your earliest banking experiences. Did could be. In the social value marketplace, there needs you feel a deep sense of trust? Did the bank inspire awe? to be mutual accountability among partnerships and Did you believe it was on your side? the community.” Nicole Taylor also is passionate about part- Deborah Alvarez-Rodriguez nerships that share values and similar missions. “In recalled, “As a kid, there was nothing our relationship with OneCal, there are multiple more honorable than taking my pennies touch points. Their desire to improve economic op- down the street to Dime Savings. And portunity is also one of our key goals.” The East Bay I remember helping my sister open Community Foundation is a leading resource for an account. It was a good feeling.” To- mobilizing financial resources and community lead- day, Deborah is President and Chief ership to transform the lives of people in the East Bay Executive Officer of Goodwill Indus- with pressing needs, and it has a department dedicated tries of San Francisco, San Mateo and to public and private partnerships. Marin. She will become Board Chair The Foundation has complex financial systems of East Bay Community Foundation and relationships and thus has several banking re- in July. Her early positive memories lationships. Theirs with OneCalifornia began with of banking reflect in her career of depository and cash management services. “OneCal helping people overcome the barriers came to the table with a financial mindset and flexibility and deficits of poverty. to offer services,” Nicole said. “The beauty of what On the cover: Michael Dalby, OneCal brings is their expertise with the traditional The populations she works with—many of them un- Nicole Taylor and Deborah banking model and knowing where banks fall short. banked, underbanked, new immigrant—are often viewed Alvarez-Rodriguez at the East They know that other financial institutions need to be by the profit sector from an “emerging market” perspective, Bay Community Foundation at the table in terms of re-energizing and re-invigo- seen as new customers that can be sold products and services. offices, which overlook Frank rating the economy. They don’t see it as competitive. Deborah sees something else. “If you look at individuals H. Ogawa Plaza in downtown The conversations are evolving every week—how to as value creators, if you want to make appreciable and Oakland. Above: On the Plaza. work in the foreclosure crisis, how to create an investment sustainable difference with those who have been living in poverty, if you seek concrete and meaningful ways to fund to build sustainable support for businesses and help people exit out of poverty permanently, then the log- generate jobs, what banks should be able to do. OneCal is ical conclusion is this partnership with OneCal. Banking one of few financial institutions being aggressive toward in alignment with community can drive enormous social small business development. With OneCal’s flexibility, value.” She believes that banks fundamentally should be they can provide early action.” a safety net, creating savings and loan opportunities for Nicole is optimistic about social change. “There’s people to build financial re- a level of hope that exists in people’s minds that didn’t sources and become the a few months ago. There’s no reason we can’t make “Banking in alignment with community can business owners of tomorrow. a significant change locally, as has been done nation- drive enormous social value.” “Social value creation ally, using similar techniques of involvement. The Deborah Alvarez-Rodriguez is at the core of East Bay trust issue regarding banks is huge. We’re working Community Foundation,” with OneCal and other banks to harness energy lo- 2 COVER PHOTO: LINDA RUSSELL
  3. 3. cally and build trust by connecting with individuals within our communities. Joining Forces for Business Development “People should hear Jeff [Cheung] talk, get to know what OneCal is doing. But it’s not just talk. We’re looking at purchasing foreclosed properties, rehabbing them and F ollow the etymology of “partner” and you’ll find it’s rooted making them available for families to move from leasing to the core actions of businesses—“produce, procure”— of non- to ownership. We’re working with community development profit organizations—“grant, allot”—and to relationships—“parent, corporations, financial institutions and investors. We are peer.” These verbs and nouns speak to the heart of Inner City Ad- currently defining partner roles and how we can engage visors (ICA), a nonprofit organization that helps build sustainable around this important economic development issue. and responsible inner city businesses. Jose Corona, Executive OneCal could provide financing for the initial property Director of ICA, is on the advisory board of OneCal Bank. or for families to buy the homes, as well as offer savings ICA transforms individual lives through a portfolio program in matches through IDAs (Individual Development Accounts.)” which strategic advisors and mentors give clients intimate atten- Michael Dalby is similarly passionate about eco- tion over a course of two years or more. ICA reaches out into the nomic development. A management consultant in the in- community deep and wide through its workshops, innovative part- ternational arena, he brings experience in academia, business nerships with other organizations and events. Portfolio clients and and community service to fruition with his clientele and as other local entrepreneurs receive advice, education and resources Board Chair of East Bay Community Foundation. “When that they need to grow their businesses, and in turn those entrepre- the Foundation and OneCal Bank started talking, it took neurs create quality jobs, reinvest in the community and contribute me very little time to get on board,” Michael said. “OneCal to the local economy. is exhibiting an open-minded willingness to be at the table In business schools, case studies abound on how to succeed or and consider merits of the case for lending at a time when how to avoid failure. ICA entrepreneurs learn “how-to” from prov- failure of imagination is almost as pervasive as failure of en entrepreneurs, consultants with CEO and investor experience institutions. Local institutions are critical for lending. OneCal is and from the innovative business laboratory of their community. participating in the discussion of job development, housing ICA participants in turn become case studies for their peers and and investing in local businesses in a very creative way.” civic leaders to learn best practices. This discussion extends to investing in businesses A practice in point: Oakland’s Waterfront Food Trail. Organized that, due to scale, face difficulty in accessing credit, and by ICA, Bay Area Industrial Roundtable and OneCalifornia Foun- it includes talking with community organizations aligned dation, the half-day, guided bus tour celebrated Oakland’s growing with the mission to improve economic opportunity. “I’m food production and distribution sector. ICA portfolio clients such hoping we can continue to deepen the relationship with as Karen Jackson of Crunchy Foods and James Freeman of Blue Bot- OneCal to the extent we are successful, and I’d be delighted tle Coffee showed off their facilities and talked to tour participants to co-brand whenever it’s appropriate. This partnering is about community benefits that their businesses produce, includ- one of the highest points of my tenure as Chairman of the ing jobs, revenue and prestige. Board. We haven’t done anything quite this inventive before.” By participating with Bay Area organizations in supporting small business growth, OneCalifornia roots itself more deeply in the community and learns what local business owners need. The “Financial health can only recover if there are Bank is better able to serve them through depository, cash man- strong roles for local and regional institutions. agement and lending programs, and OneCal Foundation serves Without engaged community banking, them through programs and partnerships providing business de- it won’t work.” velopment support and financial literacy. Michael Dalby To learn more about ICA, go to Michael notes that in the current economy, it’s be- Oakland’s Waterfront Food Trail coming less viable for family foundations and endowments tour participants hear from to operate independently. “There is a compelling value James Freeman of Blue Bottle proposition for our strategic thrust, getting other people Coffee Company about the new to invest along beside us, creating a pool of capital, which roasting facility to be built on becomes more attractive for OneCal Bank and others to Webster Street near Jack London invest more.” Square. He sees the philanthropic ecosystem of the East Bay as vastly unexplored. “I have an image of it being unde- tected, not yet visible and deployed. I’d like to draw a map of that landscape, the network of networks.” He’d like to understand more deeply how to serve micro-communities and how to improve the Foundation’s efforts in branding and visibility, not to supplant community-based orga- nizations but to support them. He notes the failure of a splintered approach. “It’s like tearing money into bits. Fi- nancial health can only recover if there are strong roles for local and regional institutions. Without engaged commu- The tour learns the business and nity banking, it won’t work. No leverage, no impact. This is art of baking biscotti at Karen really, really fundamental. What’s good for us is good for Jackson’s Crunchy Foods. the community, and good for the bank, too.” To learn more about East Bay Community Foundation, go to 3
  4. 4. Green Light for Lending at OneCal O SBA Loans Speed Business Growth PHOTO: LINDA RUSSELL neCalifornia Bank welcomes new SBA Manager and Senior Vice President Robert Gebauer and new SBA Closing Officer and As- sistant Vice President Pauline Nguyen to the OneCal Family. Along with SBA Financial Analyst and Assistant Vice President Olivia Leong, Robert and Pauline are geared up for SBA lending as key to the Obama administration’s economic recovery plan. Robert says it’s a good time for borrowers. Most fees on SBA loans have been waived, paid for by Federal funds. With expertise in microlending, commercial lending and evolving SBA programs, Robert is devoted to small business. His career began with grass-roots finance helping Asian immigrants in Hawaii jumpstart busi- Pauline Nguyen and Robert Gebauer join the OneCal Bank SBA Loan team. nesses after the shutdown of sugar plantations. He’s been in the Bay Area for more than a decade where he’s worked with Oakland Business Devel- easier. I knew what I wanted to do—complete the web- opment Corporation and domestic and international banks, including es- site, consolidate debt and finance a sales and marketing tablishing the SBA program at Mission National Bank in San Francisco. push. I outlined how I was going to use the money.” “My job is about understanding the client’s passion and finding a ve- Her story sounds like things just fell into place, but hicle to make it come to life,” Robert says. He saw a good fit with photogra- she’s been working hard. Years ago, following divorce, pher Linda Russell. “She has a great model and her timing was perfect she moved with her two children into a women’s shel- to take advantage of the waived fees.” ter. Refusing to despair, she recognized that her talent Linda shoots the cover photos for the OneCal quarterly reports. She for taking pictures of her own kids could develop into met Robert at the Bank in early March and asked him about a loan for her a career and business. Since then, she’s been pedal to Mugshots School Photography business. When he accompanied her out- the metal. She arrived for her first meeting with Robert side to her van at the curb, he glimpsed the creative mileage she’s put into fueled with what he looks for in an existing business: her business. The slogans on the van proclaim: “Cheese is a dairy product, three years of returns (business and personal) and a not an expression!” “Finally, a school portrait worth framing!” spending plan. She has gained pinpoint focus and affir- Meetings and emails followed, and now Linda is full speed ahead with mations through entrepreneur programs such as Make a $300,000 SBA loan from OneCal Bank. Her destination: to gain market Mine a Million. share of a $1.5 billion industry dominated by one company. Her strategy: Some applicants have the business history and two employ herself and other Bay Area photographers; grow a successful busi- years of profitability, but aren’t as organized as Linda. ness model; train local talent in other regions; and offer proprietary web “If people know why they need funds and how much, I technology to deliver quality print fulfillment. Her positioning: school pic- do an analysis to see if cash flow will sustain it,” Rob- tures parents will pay for and display, not put in a drawer. ert says. “If they don’t have a business plan, I can re- Linda had begun thinking about an SBA loan last September, but be- fer them to the Small Business Development Center came too busy running her business. By March, she feared the weak econ- (SBDC) or to consultants.” OneCal works with non- omy had stalled credit opportunities, and was thrilled to find the green profit organizations such as Women’s Initiative and light on at OneCalifornia. Urban Solutions, and OneCal Foundation also partners Asked about the SBA loan process, Linda said, “I want to make sure with government groups in mission-related projects to to say how absolutely wonderful it was to work with Robert.” She’s been improve economic opportunity for low- to moderate- blogging about the process, using the power of social media to share her income communities. success story with other entrepreneurs. “It’s important to be crystal clear Small business growth drives economic growth, here. Having a working business plan with a Top Projects list made this but what about nonprofit organizations (excluded from SBA lending) or businesses that don’t fit the require- ments? Russ Haycock, OneCal Bank’s Chief Credit Officer, says there’s still a green light for lending. “The bank has sufficient liquidity and capital to grow its loan portfolio. We’re looking for good quality borrowers with whom we can establish long-term relationships. If you’re not a good fit for SBA but are a business owner with successful track record, we’ll see what else we can do. We work hard to get a deal done.” Matching borrower with loan opportunity de- pends first upon borrower meeting banker. As in much of life, preparedness and opportunity equals good luck. Linda encourages women entrepreneurs who are part PHOTO:JARREAU CROSS of her network to call OneCal Bank, and she’s thinking of ways to educate others about the SBA process. To follow her story, google “Linda Russell SBA loan” or go to For more information about SBA loans, go to Linda Russell and friends on the road to business growth with a $300,000 SBA loan from OneCal Bank. 4
  5. 5. OneCal Bank Gains CDFI Certification From Jeff Cheung While headline news is all about the bailouts, a few banks are O being rewarded with Federal funding for the things they are do- ing right. This specialized group has community development as a primary mission and is certified by the United States Department of the Treasury through the Community Development Financial Institution (CDFI) Fund. There are only 70 CDFI Certified banks ur new year is off to a good start. In February, in the nation, only six in California and only one other in the San the Bank became a CDFI Certified Bank. I’d like to Francisco Bay Area. Now OneCal Bank has gained certification. thank everyone who contributed to attaining this goal. Gaining certification is the first big hurdle—the qualification Through the combined efforts of the OneCal family, process is lengthy and rigorous and requires letters of community partnering organizations and community advocates, support. Next, applications must be submitted for funding. The OneCalifornia has gained greater traction. CDFI Fund gives awards in several categories, including Finan- For their letters of support, we thank in particular cial Assistance, New Market Tax Credits and Technical Assistance. these organizations: Alameda County Community Asset In April, OneCalifornia received a Technical Assistance award of Network (AC CAN), BRIDGE Housing, Catholic Charities $100,000 to help establish employer-based programs offering of the East Bay, CEO Women, CESCO, Chabot Space employees alternatives to payday lending. & Science Center, Children’s Hospital Oakland, Covenant The San Francisco Bay Area is home to a total of seven CDFI House California, East Bay Asian Local Development Certified entities, including OneCalifornia Bank and Community Corporation (EBALDC), East Bay College Fund, East Bay Bank of the Bay, as well as the Low Income Investment Fund YMCA, Hamilton Family Center, Lao Family Community (LIIF), Mission Area Federal Credit Union, Northeast Community Development, Inc., Unity Council, Urban Strategies and Federal Credit Union, Northern California Community Loan Fund Volunteers of America Bay Area (VOABA). We also thank (NCCLF), Pacific Community Ventures Investment and Women’s Congresswoman Barbara Lee, the OneCalifornia Bank Initiative for Self-Employment. OneCal Bank has partnered with Board of Directors and Advisory Board and the NCCLF in lending to a community nonprofit, Lao Family Commu- OneCalifornia Foundation Board of Directors. nity Development, for a new facility. Going forward in 2009, we continue to work Nationally, there are 819 entities with CDFI certification, in- collaboratively with our community partners in mission cluding Banks or Thrifts, Credit Unions, Depository Institution congruence. We’ve increased our resources to provide Holding Funds and Loan Funds. To qualify for CDFI certification, financing to the business and nonprofit markets. an institution must primarily promote community development, We continue our focus on “Community Street.” As be a legal financial entity, serve eligible target markets, provide other banks have pulled back from lending, the green development services and not be or be controlled by a government light is on at OneCal. We’re actively seeking qualified entity. Certification lasts three years and may be extended upon borrowers. We believe in small business growth as application. essential to our nation’s economic recovery and to our CDFI Fund awards may range from under fifty thousand dol- community’s health and economic sustainabilty. Together lars to fifty million or more. When leveraged with private and oth- with our partners and supporters, we look forward to er non-CDFI Fund dollars for investment in low-income commu- the challenges and rewards of the coming months. nities, benefits ripple out. These awards are not making headline news, but they carry good news about the role that banks and other Jeffrey Cheung financial institutions can and should play in healthy societies. President & CEO, OneCalifornia Bank To learn more, go to Pictured above: Donna Gambrell, Director of the CDFI Fund, with Jeff at the Coalition of Com- munity Development Financial Institutions Policy Conference in March in Washington, D.C. Carol Galante Joins HUD Carol Galante has been appointed by President Obama as Deputy Assistant Secretary for Multifamily Housing Programs at the U.S. Department of Housing and Urban Development (HUD) where she will be responsible for HUD’s financing support for the development and preservation of privately-owned rental housing. Her role is integral to several new initiatives that promote sustainable development. As she leaves the San Francisco Bay area and her position as President and CEO of BRIDGE Housing, she also steps down By learning banking skills, as pictured here in a OneCal Foundation financial literacy training from OneCal Foundation’s Board of Directors. OneCalifornia class, people are better able to avoid predatory lending practices. OneCalifornia’s Technical thanks Carol for her tremendous contribution, and we wish Assistance award from the CDFI Fund will help to establish employer-based programs offer- her well in Washington! ing employees alternatives to payday lending. 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 Chabot & OneCal Partner for Science Education TM COMMUNITY CONNECTS OneCalifornia Bank, FSB Phone 510.550.8400 1438 Webster Street, Suite 100 Oakland, CA 94612 OneCalifornia Foundation Phone 510.663.2253 1438 Webster Street, Suite 101 Oakland, CA 94612 Salvador Menjívar Executive Director Chabot Space & Science Center Bank Hours & OneCalifornia Bank answer the M– Th 9 am – 4 pm nation’s call to science education by spon- F 9am – 5 pm soring a 2nd annual field trip experi- ence for 180 students from five inner-city Printed on 100% recycled paper ©2009 OneCalifornia Bank schools—10% of Oakland public school Your deposits fuel fifth graders. The students from Lafayette OneCal’s mission. Elementary School, Lighthouse Community Ask us about CDARS®, the Charter School, Santa Fe, Think College Certificate of Deposit Account Now and Whittier Elementary School ig- Registry Service. Now you can OneCal Foundation hosts the annual Oakland Indie Awards May 15, 2009. The awards recognize nited a day of science and learning with a invest up to $50 million, be eligible for FDIC insurance on the community, economic, environmental and full-dome planetarium show. Then they every dollar, and enjoy working political impact of supporting Oakland’s locally- launched into hands-on activities, includ- with just one bank—OneCal! owned businesses and artists. ing learning how comets form. Pictured To learn more, go to or clockwise from above left, students mea- Call Norma Saavedra sure solutions, smash dry ice, stir ice into Senior Vice President Depository Relationship Officer solutions, shape substance and watch their comet emerge. To learn more about Chabot, u510.550.8405 CDFI Certified Bank go to Member FDIC EQUAL HOUSING LENDER