One Cal Report Year End 2008 V7


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One Cal Report Year End 2008 V7

  1. 1. OneCalifornia Community Development Banking Report }2008 Year End Does your bank connect your community? We connect. TM B A N K
  2. 2. O Becoming OneCalifornia: Uniquely Structured For-Benefit neCalifornia Bank is a dynamic combination of social philanthropy and social entrepreneurship distinguished by a corporate structure unique among Tom and Kat donated 100% of their Class B holdings to OneCalifornia Foundation. By definition, the Foundation is also a federal thrift holding company be- federally chartered financial institutions. In this report, cause it owns more than 25% of a class of stock of TM we take a look at this innovative structure, how it works a bank holding company. The Foundation maintains to realize the mission as envisioned by OneCalifornia’s the rights to the economic benefits of the Bank. founders, and achievements of the first 16 months. B A N K Founders’ Further Gifts to the Foundation OneCalifornia fits naturally with a new class of enterprises Tom and Kat also donated 100% of their reim- BANKING ON that join efforts among the private, nonprofit and bursement of the Bank’s pre-opening expenses, ONE SUCCESS government sectors. These enterprises measure their $2.4 million, for Foundation operating expenses and worth in triple bottom lines. Known as hybrids, social further Bank capital needs. In autumn of 2008, AT A TIME TM enterprises, for-benefit or fourth sector,* they address they donated approximately $26 million of their what President Obama defined in his inaugural speech ownership interest in Farallon Capital Management. as a “new era of responsibility.” The proceeds from this gift will be used over time On the cover: Highlights of to fund the mission of both the Bank and the OneCalifornia’s first 16 months A FDIC-insured Community Development Bank Foundation. at 1438 Webster Street in OneCalifornia Bank, FSB, integrates its social mission Oakland — September 2007 with environmental and business sustainability to produce A Brief History & Overview of Operations through December 2008. both social benefits and sustainable profits. The Bank’s The OneCal organizing team studied the socially- mission is to improve economic opportunity for low- to responsible ShoreBank and Nobel Peace Prize moderate-income communities throughout California. winner Dr. Muhammad Yunus’ Grameen Bank Below: At OneCalifornia Bank’s and examined community development banks, opening reception in September Founded with an Empowering Vision thrifts and credit unions. The team innovated 2007, the crowd enjoys listening The Bank began operating as a federally-chartered the distinct corporate structure and developed a to a lively rendition of “I Hope thrift in June 2007 with $22.5 million in patient capital focused business model for the Bank. The team You Bank,” sung by OneCalifornia provided by Tom Steyer and Kathryn Taylor, social decided the support of local businesses and non- co-founder Kat Taylor. philanthropists who believe strongly in the use of capital profits would provide a more solid basis for neigh- and financial literacy as the “freeing and borhood stabilization and economic growth. empowering agents” for change in low- wealth communities. Kat and Tom retain Having begun operations in Oakland in June 2007 mission focus and control, but will take no in temporary offices, the Bank opened headquarters economic benefit or repayment ever from on Webster Street in September 2007 and the their investment. Here’s how it works: Foundation opened offices next door. OneCal is capitalizing on its unique structure with innovative OneCalifornia Bank has two projects and products. holding companies: The Bank provides commercial loan and deposit OneCalifornia BanCorp products and services delivered by experienced re- & OneCalifornia Foundation lationship-focused bankers to businesses, profes- sional firms and nonprofit OneCal BanCorp, a mid-tier holding com- organizations. The Bank pany, owns 100% of the common stock of the Bank. OneCal BanCorp issued two classes of The Founders also offers robust cash management services Cover, clockwise from top: 5th stock to Tom and Kat: $1 million of Class A vot- maintain normally found at much graders at OneCal’s March 2008 ing shares and $21.5 million of Class B non-vot- Chabot Experience; October 2007 ing economic shares with Kat Taylor owning 51% mission focus larger regional banks. The Bank serves unbanked Rebuilding Oakland Together of total shares issued. The Class B stock carries homeowners and OneCal dividend rights when and should OneCal Bank and control, and under-banked indi- viduals through strategic volunteers; OneCal staff this decide to declare a dividend. This structure still but will take alliances with organiza- past September; Robert Wilkins allows a vehicle for later-stage capital rounds. (left), Executive Director of East no economic tions and businesses that bank at OneCal. Bay YMCA, and Michael Bush, OneCalifornia Foundation, a senior holding President, The MattMar Group, company, was created by Tom and Kat as a nonprofit benefit or The Bank stresses financial at OneCal’s “Let’s Stay Together” 501(c)(3) entity to support the Bank in meeting repayment literacy across its client celebration at Fox Theater with its triple bottom line. This is accomplished in a performances by Al Green and variety of ways, including performing research ever base and works with the OneCalifornia Foundation Michael Bush, January 2009; and development on products, social outcome September 2008 opening of measures, marketing, community support, strategic from their and other community- based organizations in the Iu Mien Buddhist Temple; alliances with community based organizations investment. delivering programs to merchant Temra Costa (right) of and providing credit enhancements. targeted audiences. Community Alliance with Family Farmers at May 2008 Oakland * “Fourth sector” refers to a new paradigm in organizational design which blends Indie Awards. social and environmental aims with business approaches using best practices and innovative models from three traditional sectors: business, nonprofit and government. 2
  3. 3. Realizing the Mission: Successful Joint Efforts of the Bank, Foundation & Partners Oakland Unwrapped Developing and hosting of Internet commerce Chabot Space & Science Center Experience site for local small business merchants & artists. Partnering with Chabot Space & Science Center and local 100+ partipants. businesses to sponsor a field day for inner-city students. 79 in 2008—5% of all Oakland public school 5th graders. Goal for February 2009 Experience: 150 Transportation, learning programs & lunch provided. Left: Perla Cantu (center), a Mills College student and East Bay College Fund Scholar, Oakland Unwrapped mentors 5th graders from Oakland Public merchant Numi Tea Schools on a OneCal-sponsored field trip at Oakland Indie to Chabot Space & Science Center, March Awards, May 2008. 2008. Here the students testing their marshmallow and toothpick structure on Oakland Indie Awards an earthquake table. Sponsoring & managing annual event to celebrate the social and environmental impact of Below: Experience on the Green, an event Oakland’s independent businesses and at the Oakland Museum of California, co- artists to focus attention on local sustainability. sponsored by OneCal in September 2008. Wall Street Wizards Checking/Savings Provided free checking and savings accounts These for inner-city high school students enrolled in Wall Street Wizards, which offers students a programs strong fundamental understanding of the for financial markets and stock investing. community Subprime Crisis Strategies & Developed early-on strategies to address projects homeowners on a pre-foreclosure basis. with Financial Literacy Training Mission-Related Deposits partners Designed & delivered training for inner-city Developed innovative uses of deposits high school graduates attending college under for funding of savings and lending programs were the East Bay College Fund program. initiated Cestas Populares Lending Program OneCal SAFE by Partnered with Mission Asset Fund for Working with 24 community-based development and roll out of first-of-kind OneCal Bank organizations to provide fair and transparent program to help members of an ethnic & day-to-day banking products to the unbanked community in creating credit and under-banked who complete financial histories with reporting agencies. Foundation. literacy classes with OneCalFoundation. “Bank on Oakland” Acorn to Oaks Program Working with City of Oakland on their program Working with San Antonio CDC, the Annie E. to open up access to bank depository accounts. Casey Foundation and Making Connections Oakland to provide savings accounts to children in the San Antonio Head Start Program. Staff & Board Outreach Providing time for lectures, programs and panel discussions Rebuilding Together Oakland at community events focused on local econommic issues, community development, how to obtain credit, etc. Sponsored a residential rehabilitation in East Oakland for RTO, including materials provision and two weekends OneCal Community Connects of volunteer time by OneCal staff & friends. Bringing speakers and events to the Oakland Community. Presentations by Geoffrey Canada of Harlem Children’s Zone were attended by 400 Bay Area community leaders. 3
  4. 4. Establishing Banking Relationships: Financing What Works for Community The lending and deposit gathering activites of OneCal Bank have Building the Balance Sheet established important banking relationships with many key organi- zations and businesses which have an impact on or provide needed OneCal Bank has steadily gained traction in services to the community. building its balance sheet. A Brief Recap of OneCal Bank Relationships: Mission-related Lending Financing, depository and cash management services for: 71% of our loans are to women & minority-owned businesses, nonprofit organizations and businesses }Numerous faith-based organizations. located in low-wealth communities. }Transitional housing and workforce development for formerly incarcerated men. Capital }A major religious-affiliated foundation which provides benefit The Bank operates well above the levels that programs for mentally-challenged individuals. banking regulators have deemed well capitalized. }A major institution for science education which provides programs for schools and families and inspires a shaping of the future through science. The portfolio at a glance December 31, 2008: Financing for: Loans Outstanding: $24.4 million }A minority-owned contractor and one of the largest commercial 53% to Nonprofit Organizations solar installations in the City of Oakland. 30% to Small Business }Housing and programs for a nonprofit which provides housing 17% to Green Business and programs for individuals undergoing drug rehabilitation. }Local, privately-owned business which is one of the largest }Nonprofits 30% employers of women and minorities. $12,912,000 53% }The first Iu Mien Buddhist Temple in the U.S. and the adjacent }Small business 17% cultural center. $7,308,000 }One of the largest Northern California minority-owned fast food }Green business franchises. $4,141,000 }Affordable-housing development. Deposits: $32.4 million }Acquisition of a new multi-ethnic facility for a community foundation located in the San Antonio neighborhood, working 51% from Businesses with the Northern California Community Loan Fund (non-bank 28% from Nonprofits CDFI Lender). }A four-year technical college. 21% from Individuals }A women minority doctor to establish her new practice. 28% }Businesses 51% }A woman and minority business owner to expand her $16,523,000 business at the Oakland Airport. }Nonprofits 21% $9,072,000 Depository services for: }Individuals }Numerous large prominent affordable-housing developers. $6,804,000 }A large community foundation. OneCal Bank and the community foundation are exploring other programs for joint sponsorship/development/financing. }A private foundation that provides scholarships for East Bay public high school student from low-income families to attend college. }Numerous community-based organizations. }Labor-based organizations. Alan and Ray Dones of SUDA on the rooftop solar installation of Alameda County Social Services Headquarters at Thomas Berkeley Square. OneCal Bank financed the solar panels and installation —the largest in downton Oakland. 4
  5. 5. Financial Literacy: Innovation, Collaboration & Community C Helping People Build & Improve Credit Histories Helping B estas Populares, an innovative project of the Mission Asset Fund (MAF) in San Francisco and OneCal Bank, is bringing traditional informal lend- Families Save Above: Prospective first-time homebuyers ing circles into formalized modern banking. People ecause the practice of saving money attend a workshop at The Unity Council’s who have long been accountable to one another are doesn’t come easily for all families and needs to Home Ownership Center (HOC), which establishing credit histories and opening up their op- be learned, Acorns to Oaks starts the habit provides bilingual training for participants portunities for lower-cost financial services. “Cestas young. This inventive and unique program of to improve their budget and credit profiles, Populares bridges two worlds—the banking world OneCal Foundation, OneCal Bank, San Antonio shop for a mortgage loan and maintain and an informal social practice based in trust,” says CDC, Annie E. Casey Foundation, San Antonio their home and finances after purchase. José Quiñonez, Executive Director of MAF. Neighborhood Network and Making Connec- OneCal partners with HOC by presenting Throughout Latin America and in immigrant tions Oakland inspires parents participating information about banking services and communities in the U.S., lending circles may be called with San Antonio Head Start to save for their IDAs (Individual Development Accounts), Cestas, Tandas or Sans. Bonded by trust, circle mem- children’s future. which help people save through matching bers participate in a cycle of lending and borrowing. OneCal Foundation will match up to $450 grants provided by a variety of sources, At a monthly meeting around a kitchen table six people of the savings and provide financial literacy edu- including government and private sector. may each contribute $100. One person borrows the $600 cation. Families attend workshops about basic that month and everyone eventually gets a turn at re- banking services, creating budgets, understanding Financial Literacy, through presentations at ceiving. Loans are repaid by the monthly contributions credit reports and using credit. As of December meetings, tutorials or personal and online of each participant in the group. Groups set the contri- 2008, 32 families have committed to saving for training, is integrated into other OneCal bution amount according to their comfort level and their children’s future through this program. project and programs, such as Cestas determine the loan order, perhaps by drawing num- OneCalifornia is proud and happy to help these Populares, Acorns to Oaks and Oakland bered slips of paper from a basket. families make change count for a better future. Unwrapped!, all profiled on this page. A study by Social Compact found that 44% of all families in San Francisco’s Mission District have no Visit the Acorns to Oaks partners: Below: Gabrielle Lessard , owner of credit histories. In informal lending, borrowers who repay Mangosteen, takes a break on her travels faithfully aren’t establishing credit scores, because where she looks for Fair Trade imports. this lending is not formally reported into the credit She sells the unique products through bureaus. By having their good credit history reported, OneCaliifornia’s Oakland Unwrapped people can avoid high-cost, predatory lending. Online Marketplace. Now, rather than lay dollars on a kitchen table, Cestas Populares participants contribute through check- ing accounts at banks of their choice. OneCal Bank Growing local, sustainable business debits the accounts through ACH (Automated Clear- ing House), an electronic network for U.S. financial Oakland Unwrapped! is OneCalifornia’s Online transactions. Loan payments are reported and cash Marketplace for local businesses and artists. It flows to MAF. MAF makes electronic deposits to the now offers more than 100 stores. Site visitors tripled accounts of the next borrowers. from October to December 2008. Groups meet at homes or at MAF, which facilitates This means more easy ways for our community group dynamics and provides education about credit members to support the local economy and more scores and other financial literacy. The MAF/OneCal part- traffic to the local sellers. Items on Unwrapped! nership enables lending circles to thrive in the best of Marketplace include kids toys and clothes, locally- both worlds: retaining the trust of the informal practice designed clothing, books from independent sellers, while gaining new access to a broader array of financial housewares and decor, Fair Trade items, jewelry, services and capital. Members choose how to use the fine art, chocolate, wine, coffee, tickets to a variety loans— for bills, repairs, paying down high-rate credit. of cultural venues, art and dance classes and much more! “Many people feel locked out of the financial system,” One of our new sellers is Mangosteen, a purveyor of Fair Trade imports Quiñonez says. “This program provides incentive for and handmade jewelry. Mangosteen was launched by Oakland resident participants to open bank accounts. And it provides a Gabrielle Lessard, an attorney, community development leader, jewelry way to build and improve credit history. Credit scores designer and photographer. Gabrielle started Mangosteen to share the have morphed into something more than just to deter- wonderful things she discovers when traveling, and to support communities mine credit worthiness. People, nowadays, need a good and causes in the regions where she finds these goods. Mangosteen offers credit score even to get an apartment.” It may take clothing, housewares, jewelry, bags and accessories, most of which pro- year-long participation in Cestas Populares to real- vides income to survivors of human trafficking, to young women in their ize anticipated results, but participants can continue to home villages and to Tibetan Buddist Nuns living as refugees in India. enjoy their monthly gatherings and build social capital, Meet Gabrielle at while gaining better understanding of the credit market. Learn more: Support local businesses: 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 Looking Ahead to For-Benefit Banking in the New Year.... TM COMMUNITY CONNECTS I OneCalifornia Bank, FSB Phone 510.550.8400 1438 Webster Street, Suite 100 n this Community Development Banking report for Year End 2008, we look back at the last Oakland, CA 94612 16 months of the OneCalifornia effort and share with you some of our key highlights. OneCalifornia Foundation We thank all of our clients for the support they have shown by banking with us, and we thank our friends in the community for their continuing efforts to spread the word about our Bank and the Phone 510.663.2253 efforts of the whole OneCal Family. 1438 Webster Street, Suite 101 As we have grown our loans and deposits, we’ve provided a consistent high level of service focused Oakland, CA 94612 on “Community Street,” making sure that it’s not lost in the current turmoil of Wall Street versus Salvador Menjívar Main Street. Executive Director We greatly appreciate and count on your further support of the OneCal mission in 2009. Bank Hours Here are three ways to participate: M– Th 9 am – 4 pm F 9am – 5 pm 1. If you have a full banking relationship with us, please refer your friends, other business owners and professionals to us. 2. If you have a partial banking relationship with us, please consider Printed on 100% recycled paper ©2009 OneCalifornia Bank expanding it and also tell others. 3. If you do not yet have a banking relationship with OneCal, now Your deposits fuel is the time to consider For-Benefit Banking. Please call or visit the Bank. OneCal’s mission. Ask us about CDARS®, the Together we can make OneCalifornia a successful agent for improved economic opportunities in Certificate of Deposit Account stronger, sustainable communities. Registry Service. Now you can invest up to $50 million, be Wishing you health, fortitude eligible for FDIC insurance on and good fortune in the coming year. every dollar, and enjoy working Jeffrey Cheung Photo above: OneCalifornia leaders meeting at the Full Circle with just one bank—OneCal! President & CEO, OneCalifornia Bank Annual Forum in November 2008 with Nobel Peace Prize winner Call Norma Saavedra and Grameen Bank Director Dr. Muhammad Yunus (center), Senior Vice President u510.550.8408 (from left) OneCal Foundation Executive Director Salvador Depository Relationship Officer Menjívar, Founders Kat Taylor and Tom Steyer, and OneCal Bank u510.550.8405 CDFI Certified Bank President & CEO Jeff Cheung. Member FDIC EQUAL HOUSING LENDER