SOCIAL TOPICS (Archive): COMMUNITY DEVELOPMENT INVESTING

Published, Summer 2003

The Albina neighborhood was at one time a hub of social  and economic activity in Portland, Oregon. It has represented new beginnings for immigrants of many diverse cultures, including African, British, Greek, German, Hungarian, Irish, Italian, Polish, Russian and Scandinavian. The area thrived as a manufacturing and shipping center and a working class haven. However, over time, it also suffered decline and upheaval from land use changes, fundamental transportation issues, social friction and a withdrawal of capital from the community. Under these trying circumstances, Albina in the 1960s became a blighted neighborhood in need of help.

In December 1995, Albina Community Bancorp opened its sole subsidiary—Albina Community Bank (ACB) with the initial financial support of our many concerned investors and the NE Portland Community Development Trust. As the only commercial banking company in Oregon, Washington and Idaho which is certified by the US Treasury as a Community Development Financial Institution—and just 1 of 55 Community Development Banks—ACB had unique tools available to help rebuild the Albina community.

Following its Mission Statement to accelerate the redevelopment of North and Northeast Portland while ensuring that low and middle income families and small business owners share in the community’s economic upturn, ACB provides commercial and consumer banking services to businesses, individuals, developers and over 400 non-profits. From low minimum-balance accounts to ACB’s Scholastic Plastic ä credit card that contributes back to Portland’s financially troubled school system, to down payment assistance and first time home buyers programs and its Fresh Start Revolving Loan Fund for struggling small businesses, Albina Community Bank is fulfilling its mission. Its staff of 35 are as diverse as the community served, speaking 18 languages, while demonstrating their commitment to our community by volunteering nearly 2,200 hours in 2002 for various good causes.

As committed as it is to its community, Albina Community Bank realizes it cannot succeed in its mission without first being a successful bank. ACB currently services about 3,000 individual accounts along with 1,300 business and public funds accounts. On December 31, 2002, total deposits reached $70,353,000, an increase of 38 percent, while total loans grew to $63,104,000, up 33 percent. For the year, net income of $986,000 enabled equity to grow to $6,124,000 and provided diluted earnings of $2.62 per share of common stock.

But the true success of a community bank is told through its customers, such as the loyalty of Henry Scott and his family. Henry, the owner of a long-established NE Portland business, banks with ACB. So do his daughter and son-in-law, Bernadette and Baruti Artharee. Their son, Hasan, is also a customer and his 3-year old son, Isaac, will soon add a fourth generation of bank customers. Now that’s loyalty.

Then there’s Seana Lane and Alan Shaffer, who saw a business opportunity in their neighborhood, but had trouble convincing their bank that their idea for a restaurant delivery service was a good loan risk. Utilizing the SBA’s Service Corps of Retired Executives (SCORE), they developed a business plan for Delivered Dish; however, despite their prior experience in the restaurant industry, none of the banks they spoke with expressed any interest until SCORE referred them to Albina Community Bank. According to Alan, ACB was "the answer in every way." Today, Delivered Dish is successfully outsourcing delivery services for 20 area restaurants.

By serving the needs of customers like these and many more, Albina Community Bank has been a leader in redeveloping the Albina neighborhood. The Bank is committed to its mission and looking to expand it into new communities, like Albina, in need of similar support. Albina does good things with your money.–M.Lauinger