NCB has committed more than $2.5 billion to impact a vital cross-section of underserved markets: 30,000 units of affordable housing; 3,000 units of long-term care facilities; 10,000 jobs for low-income individuals through community-based employment initiatives; 43,000 students through the creation of new school facilities: and more than 2.5 million low-income individuals, 35 percent uninsured through support of community health centers.

The roots of NCB, FSB go back to 1890 when the Home Building and Loan Association opened for business in a small office in downtown Hillsboro, Ohio. Through the years many changes have taken place; however, the most notable change took place in September 1988 when then-named Anchor Savings Association merged with NCB Savings Association. This merger brought the Hillsboro savings and loan into the Washington, DC-based National Cooperative Bank family of companies. Since then the bank has evolved into the federally chartered NCB, FSB (formerly NCB Savings Bank, FSB) providing real estate - primarily co-op underlying and share finance - and retail banking services nationwide. Throughout the years, NCB, FSB has never lost sight of its original intent, that of being the premier community bank in southwestern Ohio - accepting local deposits and lending those funds to help local families and businesses with their financial needs.

NCB primarily serves cooperatives and their members in the United States and its territories. These organizations may be legally incorporated as cooperatives or they may be like-minded organizations.  Examples of traditional cooperatives include: housing cooperatives, natural foods cooperatives, purchasing cooperatives and retailer-owned wholesaler cooperatives. Examples of like-minded organizations include: Alaska Native corporations, ESOPs, community-based healthcare organizations, nonprofit retirement communities, community development corporations and charter schools. In addition to NCB's focus on cooperatives, the subsidiary, NCB, FSB, has a special commitment to its local community- Highland County, Ohio.

Based on the reliability and creditworthiness of pledges from corporate, foundation, and major individual contributors, NCB underwrites a portion of the organization's forecasted final pledge amount, thereby providing project capital today, often years ahead of when an organization would have otherwise begun its project.

SBA loans are guaranteed by the U.S. Small Business Administration and offer longer repayment terms and more flexible financing. SBA loans are ideal for small businesses that have limited working capital or that might not qualify for conventional bank loans. Advantages of SBA Loans include: Available up to 25 years, full amortized Available up to 90% of loan-to-value on first trust deeds Refinance owner occupied commercial property Finance leasehold improvements.

There are a number of benefits to creating an ESOP for the selling shareholder, the company and the employees, including: Higher employee productivity and job satisfaction Tax benefits for seller, company and employees Succession strategy Additional source of capital to fund acquisitions or other company projects.

ESOPS are appealing to businesses because they provide tax advantages. The business owner who is selling shares can defer capital gains taxes. The employees who participate are not taxed on the shares allocated to their accounts until they receive distribution. And the company making annual debt service payments on the ESOP loan is allowed to deduct both principal and interest.

Continuing care retirement communities (CCRC) provide an independent yet nurturing living environment for seniors. As seniors age, these communities provide higher levels of care and support services. CCRCs have three components: independent living apartments and cottages for those who require little, if any, assistance; assisted living, for residents who need some help with the normal activities of daily living such as eating and bathing; and, around-the-clock skilled nursing care should residents need this level of support.

Leasing is a contract which transfers the use of property (assets) in consideration of a payment over a specified period of time. Businesses utilize leasing to conserve working capital for other needs, manage their cash flow with fixed payments, upgrade systems as needed, and maximize tax benefits.

An undertaking by a financial institution that, upon the presentation to it of specified documents, it will pay a specified amount to the presenter.

A commitment to lend money to a borrower up to a maximum amount during a stated period.

A covenant is a promise to conform to specific guidelines as part of a loan agreement. Covenants help a lender monitor and control the loan.

A private debt placement is a security that is placed through private negotiations. The issue is sold directly to institutional investors without involving registration through the Securities and Exchange Commission. Many of the debt buyers are well-capitalized insurance companies who purchase and hold these securities in conjunction with their long-term investment strategies. Companies consider private debt placement when they encounter a need for a large amount of capital. Private placements offer extremely competitive interest rates and carry terms up to 30 years. The funds are generally used for refinancing debt, acquisitions, and capital expenditure programs. National Cooperative Bank offers its customers private placement services through its partnership with SPP Capital, a private international investment banking firm dedicated exclusively to the private placement market.

The 13 regional and 196 village member-owned, for-profit corporations created by Congress under the 1971 Alaska Native Claims Settlement Act (ANCSA) for the purposes of settling the aboriginal land claims of Alaska’s Native people. These corporations invest in a wide array of enterprises nationally and internationally in order to provide meaningful dividends and benefits to their Native shareholders.

Employee Stock Ownership Plans (ESOPs) are a form of employee ownership in which the owner(s) of a company sells stock to an employee trust. “An Introduction to ESOPs,” published by The National Center for Employee Ownership (link to NCEO), provides a more detailed definition: “An ESOP is a qualified, defined contribution employee benefit plan that invests primarily in the stock of the employer company. ESOPs are “qualified” in that in return for meeting certain rules designed to protect the interest of plan participants, ESOP sponsors receive various tax benefits. ESOPs are “defined contribution plans” in that the employer makes yearly contributions that accumulate to produce a benefit that is not defined in advance. (In contrast, many pensions plans are defined benefit plans; employees are guaranteed a specified benefit, which the company funds by making the necessary contributions.)

To maximize our cooperative impact, NCB establishes relationships with cooperatives throughout the United States to provide access to a variety of best-in-class banking products to their business members. Examples of current affinity partners include the National Grocers Association, Ace Hardware, and Dunkin Donuts.

Pledge financing is a financing transaction whose primary source of repayment is pledges/gifts to the organization. For a community organization, the benefit of pledge financing is the freedom to move forward on a project without waiting for pledges promised in the fund-raising drive to be converted to cash.

A revolving credit means that a borrower can draw down funds for business purposes, repay the amount drawn and draw again up to the maximum agreed upon. In a non-revolving credit, a borrower does not have the flexibility to redraw on the funds paid.

SBA stands for Small Business Administration, a federal agency dedicated to helping small businesses get started and grow. The agency provides NCB, as an approved SBA lender, with guarantees on loans of up to 85 percent. For NCB as the lender, this means that we can be more flexible in the financial solutions we offer our small business customers.

Working capital is a business’ current assets less current liabilities.

If your organization is seeking to solicit support for an upcoming project through a fund-raising campaign, these are some of the most important issues to consider in looking to leverage gifts: (1) enforceability of pledges in your legal jurisdiction; (2) duration of pledge receivables; (3) the level of pledge support versus the level of debt contemplated; and (4) whether or not your organization is looking to use tax-exempt debt financing tools.

ESOPs are created for many purposes. For NCB customers, the primary reasons are to diversify the selling shareholder's investment in the company, and to give employees a stake in the company, ensuring a succession plan is in place for the company’s owner(s).

Cooperatives pay taxes similar to other business entities. In fact, cooperatives generally pay under the same rules and regulations and at the same rates as other business organizations. Cooperatives pay property, sales, excise, school and other taxes, and comply with the same regulatory burdens as other businesses. For federal income tax purposes, cooperatives are treated similarly to the three basic types of private business organizations currently used in the United States: individually owned businesses, partnerships and corporations. In the case of individually owned businesses and partnerships, profits and losses are passed through and taxed at the individual owner level. Cooperatives generally are taxed in the same manner - the net margins from member operations are passed through to the member-owners of the cooperative business and are taxed at the owner level. Some cooperatives do business with nonmembers; when they do, they pay taxes on the taxable income from nonmember businesses.

Cooperatives exist not to generate a profit for themselves or outside investors, as do other businesses, but rather to provide goods and services at the lowest possible cost. Net margins (the excess of income over expenses in the cooperative) if any, are distributed to member patrons in proportion to their use of the cooperative in the form of patronage dividends. How is this accomplished? Once a year, a formal accounting determines a cooperative's income and expenses. Income remaining after deducting all expenses (net margin) is then distributed in proportion to patronage. In other words, the income in excess of expenses generated by a member's use of the cooperative is refunded to them. This is called a patronage refund. The patronage refund is an important source of financing for cooperatives. Members usually elect to leave a portion of the refund in the cooperative to help keep its operations on solid financial ground.

A cooperative is an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically controlled enterprise. Cooperatives are member-owned and democratically controlled enterprises, created and used by their member-owners to provide goods and services. Members may unite in a cooperative in a cooperative for many reasons: to get services otherwise not available, to get quality supplies at the right time, to have access to markets or for other mutually beneficial reasons.

.coop is a "sponsored" top level domain name available exclusively to cooperatives and cooperative service organizations. NCB signed on as a founding member of .coop in the summer of 2001. .coop is now live and actively used worldwide.

Yes. Because you are buying shares in a corporation, not the physical property itself, in most states no title search or title insurance is needed, resulting in lower closing costs.

Yes and no. Some cooperatives do set a minimum down payment amount for those choosing to live in their community. Normally, it is a higher-income cooperative that require a substantial equity investment up front to ensure a prospective member is committed to and contributes to the future reserve fund to pay for capital improvement projects. For most housing cooperatives, prospective members can borrow up to 95% of the value of the apartment. And, special programs exist for limited-equity cooperatives whereby the entire downpayment or "subscription fee" may be covered.

"Cash out" refinancing is similar to financing your co-op apartment purchase. An applicant must complete a share loan application, receive pre-approval on you and the property, and follow the traditional underwriting process. New appraisals will be ordered on the apartment. Closing costs can be built into the refinance. The process takes approximately 30 days to complete.

When you own a co-op, you do not actually own the rooms that comprise your unit. You own shares in the overall ownership of the building(s). These shares are prorated on the total square footage of your unit. In condominium ownership, you actually own the interior space of the rooms that comprise your unit, while the condo association owns the land, public areas and infrastructure of the building(s).

NCB, FSB evaluates your creditworthiness for a co-op apartment loan as it would for the purchase of a single-family home or condo unit - using guidelines set by Fannie Mae. Keep in mind your co-op housing costs - monthly share loan payment plus monthly co-op maintenance fee - should not exceed more than 28 percent of your gross monthly income. In addition, your total monthly "debt" obligation - monthly housing payment, credit cards or other loan payments - should not exceed more than 36 percent of your income. A lender will look at this plus your credit history and the appraised value of the co-op apartment unit.

A lender takes into account multifamily ownership levels when making a decision about providing a loan to an individual for the acquisition of co-op apartment or for a condominium. This a standard part of the underwriting process. Appropriate ownership levels vary by lender. NCB has loan programs available for co-ops with lower resident ownership levels.

Known as a monthly fee, maintenance fee, common charge or carrying charge, this is the pro-rata share of actual operating costs, underlying mortgage principal and interest (if applicable), property taxes, insurance and reserves, you as a co-op member pay on a monthly basis to the cooperative corporation.

Co-op unit owners enjoy all the benefits of homeownership plus more. As a homeowner, you can take advantage of deductible mortgage interest and property taxes - both on the underlying mortgage (link to underlying mortgage) and your individual share loan. You enjoy the same shelter from capital gains taxes on sale. You build equity as your co-op apartment’s value increases and your loan is paid down. And, you typically enjoy fewer closing costs than for a single-family home or a condominium. Co-op ownership offers greater financial flexibility as well. Since the co-op corporation owns the land and buildings as a whole, the cooperative can mortgage the property as a whole (the underlying mortgage). Unit owners have no personal liability for the underlying mortgage. This means when faced with large-scale improvement projects such as putting on a new roof, replacing windows or installing a new elevator, the corporation has access to competitively priced long-term debt.

Line of Credit is similar in concept to a credit card. An association has a maximum limit it can access. Interest is paid only on the money used. The money can be prepaid with no penalty. The interest rate is variable, meaning it changes monthly. Lines of credit normally carry terms up to five years.

Term Loan provides an association with all funds at once. The interest rate is locked, meaning the payments are the same amount every month for the life of the loan. A term loan can range from 3 to 15 years.

Combination Line of Credit and Term Loan allows the association to obtain necessary funds for immediate projects. During the first 12 months, the association pays interest only on the amount used. At the end of the 12 months, the balance of the loan converts to a permanent term loan. The term loan can range from 3 to 15 years.

Benefits include:

Funds during the 12-month draw down option are used "as needed." The association is not charged for unused funds.

The association pays interest only on the amount used. This can help the association bridge the collection of a special assessment or increased maintenance fees. 

There is no charge for converting the line of credit to the term loan.

A bulk unsold share loan is exactly like a single share loan. It is a loan to an individual secured by the cooperative interests (assignment of stock and proprietary leases to unsold units). Unsold shares are those co-op apartment units that a developer or investor has not yet sold to individuals. In special cases, NCB will provide bulk unsold share loans for the acquisition of units or for the refinancing of existing units in order to promote the sale of the unsold shares to individuals and enhance the financial foundation of the housing cooperative.

A commercial mortgage is a legal document that pledges commercial property to the lender as security for the payment of a loan or debt.

A community association loan is a loan to the entire association to fund capital improvement repairs. The loan eliminates the need to incur a one-time large special assessment on residents or deplete association reserves. The loan can be structured as either a line of credit, a term loan or a combination line of credit and term loan from 3 to 15 years in length. The term loan or line of credit is secured by an association’s receivables (monthly and special assessments) and reserve funds - not real estate.

A mortgage for a condo unit or single-family home is a loan secured by the collateral of some specific real estate property, in which the borrower is obligated to make a predetermined set of payments to repay the loan.

A construction loan is a short term loan for funding the cost of construction. The lender advances funds to the building as the work progresses.

A housing cooperative is a form of multifamily homeownership, whereby a group of people join together to own and control the building(s) in which they live. They form a corporation and pay a monthly amount that covers operating expenses. Unit owners purchase shares or a membership in the co-op which entitles them to the exclusive right to occupy their units in perpetuity. The cooperative corporation owns the building, land and any common areas.

A limited-equity housing cooperative has restrictions placed on the resale of cooperative interests (apartments) to keep them affordable to multiple generations of purchasers. The term “limited equity” refers to the low equity investment a new member of the cooperative makes, compared to what would be the open market purchase price of the unrestricted cooperative interest.

A commitment to lend money to a borrower up to a maximum amount during a stated period.

A covenant is a promise to conform to specific guidelines as part of a loan agreement. Covenants help a lender monitor and control the loan.

A low-sold cooperative is a cooperative in which the sponsor (usually the original developer) still retains a majority of the cooperative interests (apartments).

Depending on where you live, you may know a share loan as a co-op mortgage, co-op apartment loan, or end-unit financing. A share loan is similar to a home mortgage. The difference is the collateral. The collateral for a single-family or condominium mortgage is the fee simple real estate. In a housing cooperative, the collateral is the cooperative “share” interest (certificate of membership or corporate shares). This cooperative interest gives you an exclusive right to occupy a particular dwelling unit in perpetuity (occupancy agreement or proprietary lease).

An underlying mortgage is a term used to describe the first mortgage taken out by a housing cooperative corporation. Underlying mortgages are also known as blanket loans or blanket debt. Since the cooperative corporation owns the land and the buildings in which its members live, it can borrow money secured by the property as a whole.

Cash-out refinancing is to co-op apartment residents what a home equity loan is to single family homeowners. Once you've built up equity in your co-op apartment, you can refinance your share loan and take out the equity as cash. You can use this money to pay for many purposes: remodeling your apartment, a vacation to Europe or even college tuition for your child. While there are closing costs associated with cash-out refinancing, these fees normally are only slightly higher than the fees you might pay for a home equity loan - and you can always roll them into the refinance.

Assessments collected from members and any reserve funds of the association serve as collateral for a community association loan. This includes members’ regular and special assessments as well as future income. No real estate is taken as collateral given that community associations are structured as fee-simple real estate whereby each unit is owned outright by the purchasor.

Apply for a share loan is similar to applying for a single-family mortgage. You complete a loan application that provides the lender with information on you, including your job history, salary, checking and savings accounts. In addition, the lender evaluates the financial condition of the housing cooperative. As part of the application process, the lender is required by law to provide you with an estimate of closing costs within three business days. This is called a good-faith estimate. Lenders are also required to give you the government publication "A Home Buyer's Guide to Settlement Costs." Once your loan is approved and you've signed the commitment letter, you and your loan officer will attend the loan closing. To learn more about buying a co-op apartment, visit Fannie Mae's Homepath Website.

1. The total amount of debt your income can support; 2. Your current credit history; 3. Your assets in reserve (ration may vary); and 4. The appraised value of your unit. (Note: This appraised value must be equal to or greater than the purchase price. Your share loan is based on the lesser of the purchase price or appraised value).

Purchasing a co-op apartment - or an interest in a cooperative corporation can be compared to buying stock in a company. Before purchasing stock, you want to be sure the company is solid. Likewise, your investment in a housing cooperative must also be financially sound. As part of reviewing your share loan application, NCB, FSB evaluates the cooperative corporation as a whole. With two decades of experience lending to housing cooperatives and their members, NCB, FSB has compiled a comprehensive co-op housing project approval database. For co-op buyers, this expedites your share loan process.

The money will be debited electronically from your account within 1-3 business days starting on the business day following the payment date. If you make a payment on Monday, you can expect the money to be debited from your account by Wednesday or Thursday of the same week.

When you own a co-op, you do not actually own the rooms that comprise your unit. You own shares in the overall ownership of the building(s). These shares are prorated on the total square footage of your unit. In condominium ownership, you actually own the interior space of the rooms that comprise your unit, while the condo association owns the lend, public areas and infrastructure of the building(s).

NCB, updates all customer information nightly for Online Banking. If you access "The Cooperator Line" 24-hour telephone banking system (toll-free: (877) 840-0846), or contact our customer service department, which is online and real-time, your account information is updated immediately to reflect all account activity.

Known as a monthly fee, maintenance fee, common charge or carrying charge, this is the pro-rata share of actual operating costs, underlying mortgage principal and interest (if applicable), property taxes, insurance and reserves, you as a co-op member pay on a monthly basis to the cooperative corporation.

Co-op unit owners enjoy all the benefits of homeownership plus more. As a homeowner, you can take advantage of deductible mortgage interest and property taxes - both on the underlying mortgage (link to underlying mortgage) and your individual share loan. You enjoy the same shelter from capital gains taxes on sale. You build equity as your co-op apartment’s value increases and your loan is paid down. And, you typically enjoy fewer closing costs than for a single-family home or a condominium. Co-op ownership offers greater financial flexibility as well. Since the co-op corporation owns the land and buildings as a whole, the cooperative can mortgage the property as a whole (the underlying mortgage). Unit owners have no personal liability for the underlying mortgage. This means when faced with large-scale improvement projects such as putting on a new roof, replacing windows or installing a new elevator, the corporation has access to competitively priced long-term debt.

A mortgage for a condo unit or single-family home is a loan secured by the collateral of some specific real estate property, in which the borrower is obligated to make a predetermined set of payments to repay the loan.

A construction loan is a short term loan for funding the cost of construction. The lender advances funds to the building as the work progresses.

Depending on where you live, you may know a share loan as a co-op mortgage, co-op apartment loan, or end-unit financing. A share loan is similar to a home mortgage. The difference is the collateral. The collateral for a single-family or condominium mortgage is the fee simple real estate. In a housing cooperative, the collateral is the cooperative “share” interest (certificate of membership or corporate shares). This cooperative interest gives you an exclusive right to occupy a particular dwelling unit in perpetuity (occupancy agreement or proprietary lease).

Cash-out refinancing is to co-op apartment residents what a home equity loan is to single family homeowners. Once you've built up equity in your co-op apartment, you can refinance your share loan and take out the equity as cash. You can use this money to pay for many purposes: remodeling your apartment, a vacation to Europe or even college tuition for your child. While there are closing costs associated with cash-out refinancing, these fees normally are only slightly higher than the fees you might pay for a home equity loan - and you can always roll them into the refinance.

Apply for a share loan is similar to applying for a single-family mortgage. You complete a loan application that provides the lender with information on you, including your job history, salary, checking and savings accounts. In addition, the lender evaluates the financial condition of the housing cooperative. As part of the application process, the lender is required by law to provide you with an estimate of closing costs within three business days. This is called a good-faith estimate. Lenders are also required to give you the government publication "A Home Buyer's Guide to Settlement Costs." Once your loan is approved and you've signed the commitment letter, you and your loan officer will attend the loan closing. To learn more about buying a co-op apartment, visit Fannie Mae's Homepath Website.

1. The total amount of debt your income can support; 2. Your current credit history; 3. Your assets in reserve (ration may vary); and 4. The appraised value of your unit. (Note: This appraised value must be equal to or greater than the purchase price. Your share loan is based on the lesser of the purchase price or appraised value).

Purchasing a co-op apartment - or an interest in a cooperative corporation can be compared to buying stock in a company. Before purchasing stock, you want to be sure the company is solid. Likewise, your investment in a housing cooperative must also be financially sound. As part of reviewing your share loan application, NCB, FSB evaluates the cooperative corporation as a whole. With two decades of experience lending to housing cooperatives and their members, NCB, FSB has compiled a comprehensive co-op housing project approval database. For co-op buyers, this expedites your share loan process.

For a detailed description of the security features in our NCB, FSB Online Banking system, please see our Online Banking System Security overview, accessible via the "Security" link at the bottom of most major pages on our website.

Encryption is basically a way to rewrite something in a code which can then be decoded later with the right key. The encryption we use employs a mathematical process for the key which is made up of a certain number of bits (hence, 128-bit encryption). The higher the number of bits, the better the encryption. While using our Online Banking System, all communication from you to the system and from the system to you is encrypted using a maximum of 128 bits. In other words, when you send information to the system, your browser encrypts it using a 128-bit key, then sends it to the system. The system then decodes the information you sent it using the key (which is predetermined when your Online Banking session is started) and processes it.