PORTLAND, Ore., March 11, 2010 (GLOBE NEWSWIRE) -- Albina Community Bancorp (OTCBB:ACBC) announced today that its subsidiary Albina Community Bank, Oregon's only certified community development bank, has entered into a consent agreement with the Federal Deposit Insurance Corporation (FDIC) and the Oregon Division of Finance and Corporate Securities (DFCS), effective March 2, 2010. The consent order provides the bank with a roadmap to address the impact of the challenges presented during this prolonged economic downturn, which includes many plans and actions that the bank has already adopted and begun to implement. The Bancorp expects to enter into a similar agreement with the Federal Reserve Board of Governors, which regulates the holding company.
The agreement requires the bank to improve its capital position and increase its Tier 1 Capital to maintain a minimum leverage capital ratio of 10% and total risk-based capital ratio of 12%, as well as the development of a contingency plan if those ratios are not attained in a timely manner. Other key aspects of the agreement provide for the bank to maintain an adequately funded allowance for loan and lease losses; develop written plans to reduce classified assets, reduce loan concentration risks and increase traditional liquid assets. "We have already made great strides in addressing the provisions of the agreement and are working to achieve full compliance as quickly as possible," said Robert McKean, Chief Executive Officer of the bank. "As we move forward, we will continue to act aggressively on our strategy to strengthen our balance sheet, align our operations with the current market environment and restore the bank to profitability. We will take the necessary steps to meet the terms of the agreement as quickly as possible and position ourselves for a long and healthy future."
The agreement has no impact on the security of customer deposits or customers' access to them. Albina will continue to offer a full range of financial products and services, and its deposits will remain fully insured by the FDIC. "We continue our commitment to supporting our customers in the Portland communities, and are seeing significant growth in new business and new customer relationships," stated Cheryl Cebula, President and Chief Operating Officer of the bank. "Portland is our home and we have a unique and meaningful social mission to fulfill here. Our customers are responding to our local banking approach and are bringing deposits to us. In fact, our core deposit base has grown substantially from a year ago."
The company continues to work with its financial advisors to evaluate options to improve capital. "In this regard, we are actively seeking new capital and are encouraged by recent activities," said McKean.
Albina Community Bank is one of the top producers of SBA loans in the Portland District. "Albina has proven to be an economic development catalyst for underserved small businesses and neighborhoods, and through creative endeavors to strengthen our communities, we will continue to do everything we can to be an economic backbone for our local neighborhoods," stated Cebula. "As previously stated, the impact we have on the communities we serve is profound in terms of volunteer hours, jobs created and supported, housing financed and developed and many other important benefits. We track our community involvement and invite you to review our scorecard on our website. Visit: www.albinabank.com/company/scorecard.cfm. Albina Community Bancorp has received CDFI funding from the U.S. Department of Treasury in 9 of the past 10 years, as a result of our success in building economic vibrancy in the greater Portland area."
"As Oregon's only CDFI bank that is certified by the U.S. Treasury, we are pursuing a capital investment at a dividend rate of 2% under the Administration's newly proposed program," commented McKean. Recently, President Obama announced a new program under the Troubled Asset Relief Program (TARP) to invest lower-cost capital in Community Development Financial Institutions (CDFIs) that lend to small businesses in the country's hardest-hit communities. For more information on the program, please visit: http://www.cdfifund.gov/docs/2010/cdfi/Obama-Administration-Announces-Enhancements-Tarp-Initiative-for-Community-Dev-Fin-Inst.pdf
About Albina Community Bancorp
Albina Community Bank is a locally owned, full-service, independent commercial bank committed to investing in individuals, families, businesses and local neighborhoods. The bank promotes community development by providing products and services and banking solutions that are directed towards improving the social or economic conditions of underserved peoples or residents of distressed communities. Albina offers a wide range of competitive banking solutions, while also maintaining its mission to promote jobs, growth of small businesses, and wealth in our local Portland neighborhoods.
Albina Community Bank opened in December 1995 as the sole subsidiary of Albina Community Bancorp. Albina is one of approximately 60 commercial banks across the United States certified by the U.S. Treasury Department's Community Development Financial Institutions Fund as a community development financial institution. Albina is the only CDFI-certified commercial bank headquartered in Oregon. Albina operates from five local Portland locations including offices at: 2002 Northeast Martin Luther King Jr. Boulevard; 8040 North Lombard in the St. Johns neighborhood of North Portland; 4020 Northeast Fremont Street in the Beaumont neighborhood; 5636 Northeast Sandy Boulevard in the Rose City Park neighborhood of the International District; and 430 Northwest 10th Avenue in Portland's Pearl District; and a remote ATM at New Columbia in North Portland. For more information about Albina Community Bank, please call 503-287-7537 or visit www.albinabank.com.
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements concerning the continued financial performance of the company and its plans and opportunities for future growth. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially than those expected. Specific risks include, but are not limited to, general business and economic conditions, competitive factors, pricing pressures, further interest rate changes, and other factors listed from time to time in Albina Community Bancorp's regulatory reports.