By Lee Perlman
For the Hollywood Star News, June, 2010
The Federal Deposit Insurance Corporation has raised concerns about the state of Albina Community Bank’s finances. According to Vice President Cheryl Cibula, the bank has entered into a “consent order” with FDIC to “raise our level of capital and reduce our level of non-performing loans,” by July 2. She did not say what the consequence of failing to do this to FDIC’s satisfaction by the due date would be. She did note that all deposits are guaranteed by FDIC, and by their Unlimited Account Guarantee Program, whose cost Albina does not pass on to its customers as some other banks do.
As part of its mission as a community bank, Albina has helped finance development projects based on their value to the community and, Cibula says, in some of these cases the “value of the assets or collateral dropped in value” due to the economy. “We will try to regroup and get other partners,” she says. There are no current plans to close any of the bank’s five branches (including three in Starland at 2002 N.E. Martin Luther King Jr. Blvd., 5636 N.E. Sandy Blvd., and 4020 N.E. Fremont St.), but they did make some “staff reductions” recently. They will continue to make loans. “Are we taking on major new development projects?” Cibula said. “No, but I don’t know of many banks who are.”