30754_NCB 4colour cover 4/30/07 2:39 PM Page 1

2 0 0 6 A N N UA L R EPO R T

r e a ch

To accomplish great things,

we must not only act,
but also dream;
not only plan,
but also believe.
– Anatole France
30754_NCB 4colour cover 4/30/07 2:39 PM Page 2

2006 SOCIAL IMPACT HIGHLIGHTS (see page 5 for detailed breakout and more metrics)

Affordable Housing / Education/Charter Schools Health Care

Affordable Assisted Living

Impact from 1,552 units affordable at • 461,847 square feet •169,886 square feet
Financing & less than 80% Area • 14,823 school seats • 286,683 patients served
Technical Assistance Median Income

NCB Capital Impact FINANCING ACTIVITIES (IN MILLIONS)

Year Portfolio & Loan Program Disbursements Total Arranged Transactions1 TOTAL FINANCING

2006 $105.0 $90.1 $ 195.1

1998-2006 $610.5 $534 $1,144.5

(1)Arranged transactions include those in which NCB Capital Impact was integral in assembling capital and was paid for these efforts, although little or
no capital was extended by NCB Capital Impact.

what we do a new look

NCB Capital Impact works every day for lasting In October 2006, NCB Development Corporation
economic progress in underserved communities. unveiled a new name, NCB Capital Impact, and a
To empower low- to moderate-income communities, new look to accentuate our commitment to lasting
NCB Capital Impact creates access to capital and economic progress. The new identity is the
technical assistance to increase affordable…
direct result of valuable feedback we received from
• Cooperative homeownership
the communities we serve. While we enjoy a highly
• Community-based long-term care
loyal customer and partner base, by retooling our
• Health care facilities
brand, we seek to emphasize that it takes more
• Education facilities
than money to create lasting economic impact.
30754_MAPSPREAD 4/30/07 2:44 PM Page 1
welcome
the best way to predict the future is to invent it.
– Alan Kay, revolutionary computer scientist
That’s exactly what we’re doing at NCB Capital Impact
and in the Community Development Financial
Institution (CDFI) industry: inventing a future in
which community development becomes scalable and
sustainable. A future in which businesses, non-profit
organizations, and communities work together to find
innovative solutions to housing, health care, and
education needs. A future in which lasting economic
progress is the reality.
We’re already on our way.
Over the last three years, we’ve experienced
unprecedented growth. Our strong track record of both
financial performance and innovation has enabled
NCB Capital Impact to deliver unprecedented levels of
resources and new models to CDFIs nationwide.
The numbers speak for themselves: In 2006,
NCB Capital Impact disbursed $105 million in portfolio
lending and $90.1 million in arranged transactions to
low- and moderate-income communities for a total of
$195.1 million in financing.
These dollars translate into profound and positive
impact, including more than 1,500 affordable housing
and affordable assisted living units; nearly 15,000
charter school seats; and close to 170,000 square feet
of health care facilities.
This success is a direct result of the critical
support we receive from our partners, especially key
partners such as NCB (formerly known as National
Cooperative Bank) as well as outside investors and
long-term supporters like The Robert Wood Johnson
Foundation for their commitment to doing whatever it
takes to direct capital where it is needed most. It is the
result of state and federal agencies that work vigorously
with us to shape policy better-suited for America’s
communities today. And, of course, it is the result of
the highly dedicated community-based organizations
we serve, who are on the ground making the impact
real for people most in need.
Together we’ve created programs that are literally
changing the way community development in this
country is done. Our leading-edge models and
practices are being replicated nationwide. But we’re
not resting on our laurels. Our success has led us to
ask ourselves: How can we reach forward to create
even more opportunity? How can we continue to
develop programs that are sustainable and result in
comprehensive, inclusive progress?
The future is ours to invent. Let’s reach higher.
Terry D. Simonette
President and CEO
NCB Capital Impact
30754_MAPSPREAD 4/30/07 2:44 PM Page 2

2 0 0 6 y e a r i
reaching lasting economic progress…
$195.1 million Amount disbursed and arranged to communities in
need in 2006. NCB Capital Impact disbursed $105 million in portfolio lending and
arranged $90.1 million in transactions to low- and moderate-income communities for
affordable cooperative homeownership, equitable school and health care facilities,
and community-based long-term care housing.

reaching sustainability… in education

in reputation $50 million Initial pool of capital

1 Rating awarded to NCB Capital Impact by the
Opportunity Finance Network’s CDFI Assessment and
Rating System (CARS). CARS is an underwriting
approach to uniformly rate Community Development
Financial Institutions (CDFI) similar to that used for
large financial institutions, but pushes beyond merely
assessing financial capacity to measuring impact and
policy performance. NCB Capital Impact earned
CARS’ highest rating of “1” for Financial Strength and
Performance, and the second highest rating “AA” for
Impact Performance. In addition, NCB Capital Impact
was awarded a Policy Plus for leadership in policy
changes impacting disadvantaged people and
communities.
developed by NCB Capital Impact, together with the
California Charter Schools Association, to launch
The California Charter Building Fund to help
non-profit charter schools in California finance tenant
improvements, purchase, construction, and renovation
of their facilities.
in tax credits
$54 million New Markets Tax
Credits awarded to NCB Capital Impact by the United
States Treasury Department in June. The first $75
million, awarded in 2004, has been fully deployed to
health care facilities and charter schools in distressed
communities. The additional $54 million means
more help is soon to follow.

in housing
$2 million Total construction loans
closed in September for two affordable housing
cooperatives in northern New York City, thanks in
part to the non-profit developer Northern Manhattan
Improvement Corporation and New York City’s
Department of Housing, Preservation, and
Development (HPD). Converting the buildings
into cooperatives preserves affordability and helps
ensure that current renters are not displaced as
 30754_MAPSPREAD 4/30/07 2:44 PM Page 3
r i n r e v i e w
housing prices in the neighborhood soar. In addition
to NCB Capital Impact’s $2 million in loans, HPD
provided a loan of $10.5 million – bringing total
funding to $12.5 million.
reaching scalability…
in education
$42 million Loan fund launched
by NCB Capital Impact in partnership with the
General Board of Pension and Health Benefits of
The United Methodist Church to finance charter
schools located in low- and moderate-income
communities in Florida, Georgia, Minnesota, and
Wisconsin. The Enhancement Fund (TEF) will
provide access to loans up to $8 million with loan
terms of up to 25 years to finance acquisition,
renovation, construction, and leasehold improvements.
in health care
$45 million Amount
disbursed by NCB Capital Impact to ensure
community health centers were able to procure
or improve facilities in order to provide access to
health care for almost 300,000 Americans in need.
community based long-term care
5 Number of years NCB Capital Impact is funded
by The Robert Wood Johnson Foundation to help local
organizations replicate the GREEN HOUSE® model –
a radically new and innovative approach to delivery of
skilled nursing home care. In 2006, progress toward
GREEN HOUSE® homes in every state included:
• 722 organizations interested in developing a
GREEN HOUSE® project registered with
NCB Capital Impact
• 648 people participated in intensive project
development workshops
• 30 organizations signed contracts to develop and
operate GREEN HOUSE® homes
• Three organizations opened GREEN HOUSE®
projects, with nine or more slated to open in 2007.
in community assistance
54 Number of cities nationwide on the 2006
“Real Economic Impact Tour” that expands the pilot
TAXfacts+ Campaign to foster financial independence
for underserved Americans with disabilities. The
successful pilot was launched last year by NCB Capital
Impact together with the Internal Revenue Service, the
National Disability Institute, Ford Foundation, NCB,
and five national disability groups.
30754_MAPSPREAD 4/30/07 2:44 PM Page 4

life’s most
urgent
question is:
what are
you doing
for others?
– Martin Luther King Jr.
30754_MAPSPREAD 4/30/07 2:44 PM Page 5

social impact measurement

EDUCATION/CHARTER SCHOOLS
LENDING DOLLARS $40,685,538
Number of loans 22
Lending dollars in low- or moderate-income census tracts $37,760,538
Lending percentage in low- or moderate-income census tracts 92.8%
Lending to schools with student majority eligible for free/reduced-price lunches 88.0%
Square feet financed or renovated 461,847
School seats assisted or financed 14,823
LEVERAGED FUNDS $35,296,814

HEALTH CARE
LENDING DOLLARS $45,193,700
Number of loans 22
Lending dollars in low- or moderate-income census tracts $42,943,700
Lending percentage in low- or moderate-income census tracts 95.0%
Patients/clients served 286,683
Patients served living below 100% of federal poverty level 148,895
Patients served living below 200% of federal poverty level 146,446
Uninsured patients served 95,051
Medicaid recipients served 90,652
Square feet financed or renovated 169,866
LEVERAGED FUNDS $10,959,220

AFFORDABLE HOUSING / AFFORDABLE ASSISTED LIVING

LENDING DOLLARS $2,776,364
Number of loans 5
TECHNICAL ASSISTANCE HOURS 18,393
Lending dollars in low- or moderate-income census tracts $2,776,364
Lending percentage in low- or moderate-income census tracts 100.0%
Projected housing units assisted 1,185
Units affordable at less than 80% Area Median Income 1,552
LEVERAGED FUNDS $12,435,697
30754_MAPSPREAD 4/30/07 2:44 PM Page 6

6
●●●
Washington
Washington

points of impact
North
Washington
Montana
Dakota
NCB Capital Impact across the North
Oregon
●
Idaho
Montana
Dakota Oregon
United StatesWyoming
Oregon
Idaho
South
Dakot
South
Dakota
Wyoming
Utah
Nevada Nebra
Creating lasting economic progress
Utah means reaching beyond one ●●●● Nevada
Nevada Nebraska
New Mexico California ●
city, one state, or one region. NCB Capital Impact collaborates
New Mexico
nationally with investors, funders, state and federal agencies, California Colorado
California Colorado
K
and community-based organizations to bring capital investment Kansas

to communities across the country.

Oklahom
Arizona
Arizona
We never stop looking for opportunities to improve and ●●●
Arizona
transfer our successful practices and models of community
development. We invite like-minded organizations to contact Texas

Te
us for more information about what we are doing – or can do – RUSSIA

in your state. Alaska

RUSSIA CANADA ●●●
Alaska
●
CANADA
Hawaii
Alaska M e x i c o
Hawaii

Hawaii
M e x i c o

reaching out in thanks

FROM THE PUBLIC TO THE PRIVATE SECTOR – from foundations to California Health Facilities Financing
government agencies – from non-profit organizations to institutional investors: Authority
All have made NCB Capital Impact’s efforts to make community development California Primary Care Association
sustainable and scalable a success. Thanks to these high-caliber organizations California School Finance Authority
who partnered with us in 2006 to extend our reach and create lasting economic Center on Budget and Policy Priorities
progress for communities in need nationwide. Centers for Medicare and Medicaid Services
The Charter Coalition
Community Clinics Initiative
FUNDERS U.S. Department of Health and Human Community Homeownership Credit Coalition
Annie E. Casey Foundation Services Community Reinvestment Fund
Bank of America Foundation U.S. Department of Housing and Urban Concepts in Community Living
Bill and Melinda Gates Foundation Development Corporation for Enterprise Development
Blooming Prairie Foundation U.S. Department of Treasury CUNY Graduate Center
Citigroup Foundation Walter and Elise Haas Fund D.C. Deputy Mayor for Planning and
Cooperative Development Foundation Wells Fargo Housing Foundation Economic Development
Fannie Mae Foundation District of Columbia Department of Housing
Federal Deposit Insurance Corporation LOCAL, STATE, AND FEDERAL and Community Development
Fleet Bank COMMUNITY-BASED ORGANIZATIONS, Enterprise Community Investment, Inc.
Ford Foundation AGENCIES, AND ASSOCIATIONS Enterprise Community Partners
Jessie Richardson Foundation AARP Enterprise Social Investment Corporation
JP Morgan Chase Foundation The American Association of Homes and Fannie Mae
Kennedy Foundation Services for the Aging Fifth Avenue Committee
NCB Arkansas Department of Human Services, Florida Consortium of Charter Schools
Nationwide Foundation Division of Aging and Adult Services Gardens of Mount Carmel, Inc.
The Reinvestment Fund Arkansas Development Finance Authority Georgia Charter Schools Association
The Robert Wood Johnson Foundation Arkansas Division of Aging & Adult Services Harrison Institute for Public Law
Surdna Foundation Bridge Street Development Corp. Hollister Group, LLC
The Tides Foundation California Charter Schools Association HOPE Community, Inc.
U.S. Department of Agriculture California Department of Health Services Housing Counseling Services, Inc.
U.S. Department of Education The California Endowment Internal Revenue Service
30754_MAPSPREAD 4/30/07 2:44 PM Page 7

7
●●
Minnesota
New Hampshire
●
Wisconsin Vermont Maine

●●●
●●●
Montana ●
● Michigan New York
Iowa Massachusetts
●●● ●●●● ●●●●
●● Pennsylvania ●●
Illinois
●●
Indiana Ohio ●●● Rhode Island
●●● ● ●●● ●● Connecticut

●●● New Jersey

West ●
Colorado Kansas ●● Virginia ● Delaware
●
Missouri Kentucky ● Virginia
●●●● ●● Maryland
●●
●●
Washington D.C.
● North Carolina
● ●●●
Tennesee
Oklahoma Arkansas

●●● Alabama
Georgia

Texas ● ● ● Affordable Multi-family Housing

●●●● ● Education/Charter Schools
●● ● Mississippi
Louisiana ● Green House Projects
● Health Care
●●●●● ● Affordable Housing and Services

Florida

Iowa Finance Authority NeighborWorks America University Legal Services

Jair Lynch Companies
Joint Center for Housing Studies, Harvard
University
Leon N. Weiner & Associates, Inc.
Local Initiatives Support Corporation
Long Term Care Authority of Oklahoma
Louisiana Department of Health and
Hospitals
Low Income Investment Fund
Manhattan Valley Development Corp.
MANNA CDC
MANNA, Inc.
Marathon Senior Living
Metropolitan Cooperative, Inc.
Mi Casa
MIA Management
Minnesota Association of Charter Schools
MSC Fund/Cooperative Development
Foundation
National Association of Housing and
Redevelopment Officials
National Association of Housing
Cooperatives
National Conference of State Legislatures
National Congress for Community Economic
Development
National Council of State Housing Agencies
National Governors’ Association
National Housing Conference
National Housing Institute
National Housing Trust
National Neighborhood Coalition
NCB
NCB, FSB
New Hampshire Community Loan Fund The Urban Homesteading Assistance Board
New York City Department of Housing, Urban Institute
Preservation, and Development Vista Senior Living
Northcountry Cooperative Development Fund Wisconsin Charter Schools Association
Northeast Brooklyn Housing Development
Corp. INSTITUTIONAL INVESTORS
Northern Manhattan Improvement Corp. Bank of America
Opportunity Finance Network Citibank
OSHPD/CAL - Mortgage Citizens Bank
Pennsylvania Housing Finance Authority Commerce Bank
PolicyLab Consulting, Inc. General Board of Pension and Health
Pratt Area Community Council Benefits of The United Methodist Church
Public Economics, Inc. Impact Community Capital
Raza Development Fund (Composed of: Allstate, Farmer’s Insurance
The Reinvestment Fund Exchange, Pacific Life Insurance, State
Research Triangle Institute Farm, Mutual Automobile Insurance, 21st
Reznick Group Century Insurance, SAFECO Insurance,
Thompson Consulting Nationwide Insurance, and MetLife)
Twin Pines Foundation JPMorgan Chase
United States Department of Agriculture, Merrill Lynch Community Development Bank
Rural Development Metropolitan Life
U. S. Senate Committee on Banking, National City Community Development
Housing, and Urban Affairs Corporation
U.S. Department of Agriculture Graduate Nationwide Insurance
School NCB
U.S. Department of Education NCB, FSB
U.S. Department of Health and Human PNC
Services Prudential Insurance
• Bureau of Primary Health Care, Health TransCapital
Resources, and Services Administration U.S. Bank Community Development
• Office of Community Services Corporation
• Office on Disability Wachovia Bank
U.S. Department of Housing and Urban Washington Mutual
Development
30754_MAPSPREAD 4/30/07 2:44 PM Page 8
NCB Capital Impact:
mission to help and capacity to deliver
NCB Capital Impact provides financial services and
technical assistance designed to spark systemic
change and empower communities to create more
affordable cooperative homeownership, assisted living,
housing and services for the frail and elderly, and
facilities for health care centers and charter schools.
As a national non-profit organization with a
proven track record of bringing development and
financing expertise to underserved communities for
more than 25 years, we have developed strategic
partnerships and resources enabling us to build
innovative solutions and replicate best practices
nationwide. We combine community impact with
financial return – mission to help, capacity to deliver.
Our disciplined, results-oriented approach to
community development finance has led to more than
a quarter century of sound investments yielding solid
returns and community impact. We have the financial
capacity to deliver results propelled by a driving
mission to help.
30754_MAPSPREAD 4/30/07 2:44 PM Page 9

SHOWN IN PHOTO (ALPHABETICAL):

Quinn Antshel, Candace Baldwin, Carolyn Bauer, Jeff Brenner, Kelley Brown,
Shirley Bynum, Margaret Callahan, Tamara Davis, Elizabeth Day, Annie Donovan,
Ellen Edwards, Marilyn Ellis, Chris Ferreira, Glenda Garcia, Anne Geggie, Lisa
Grammer, Jim Gray, Teresa Halsey, Chantal Hart, Veronica Jackson, Robert Jenkens,
Kathy Jolly, Ruta Kadonoff, Jon Kelly, Judith Ledbetter, Catherine Lee, Jay Marcus,
Kim Marschner, Chris Miller, Paulette Miller, Cynthia Muller, Betsy Newcomer,
David Nolan, Glenn Ottley, Paulette Padgett, Jim Radja, Charity Sack,
Shannon Scott, Terry Simonette, Scott Sporte, Cindy Stewart,
Beverly Stringfellow, Jonelle Thom, Andrew Weaver, Elfinesh Woldemariam,
Matt Wright, Barbara Yiadom, Aisha Youins-Palin, Alyson Young, Ed Zareh

INSET:
John Holdsclaw, Laura Johnson, Rhonda Jones (missing from group shot above)
30754_MAPSPREAD 4/30/07 2:44 PM Page 10

10

real impact on the front lines

The real impact of NCB Capital Impact’s work isn’t

just about our increasing numbers. It’s about the relief of a single mom who can
finally afford to own her apartment through a cooperative housing development.
It’s found in the smile on a child’s face who sits down in a well-lit, well-supplied
classroom at a brand new charter school. It’s found in the hands of a nurse holding
a patient’s hand at a community health center. It’s found at the dinner table of a
GREEN HOUSE® where residents gather each night to talk and share their meals.

Here’s an up-close look at the real impact brought to underserved communities

across the nation.

the front line: health care the front line: education

THE COMMUNITY: San Bernardino, California
THE NEED FOR REACH: Inland Behavioral & Health
Services is a community-based agency established by
concerned local citizens in 1978 to provide health
services, substance abuse treatment, mental health
services, homeless services, and prevention education
to San Bernardino residents. Over the past four years,
Inland patient visits have increased an average of 140
percent, outstripping the health center’s current ability
to adequately provide for its patients.
THE 2006 REAL IMPACT: In November, NCB
Capital Impact disbursed a $7 million New Markets
Tax Credits (NMTC) loan to Inland to finance
construction of a new, specially designed, 28,000-
square-foot clinic, including acute care offices, a
children’s area, and family practice rooms that will be
supported by full-service laboratory and radiology
facilities. Patients will also have access to a full-service
pharmacy and dental provider. The additional space
will include a total of 29 exam rooms, six of which will
be dedicated to dental care. In all, the health center
will double its capacity and substantially increase its
dental services, a huge need for the area’s low-income
residents.
THE COMMUNITY: Downtown Los Angeles, California
THE NEED FOR REACH: Para Los Niños (PLN)
serves low- and very low-income, at-risk children in
one of the most impoverished neighborhoods in
Los Angeles. Each year, PLN provides services to more
than 1,200 children through the Family Learning
Complex, a comprehensive facility that provides
after-school programs, a charter school, a daycare, and
a family resource center. In December 2005, PLN
purchased the building that houses the Family Learning
Complex, but more space is needed to expand its
much-needed daycare and education services. The region
in which the Complex is located has only 10 licensed
childcare spaces for every 100 children from birth
to 2 years old who need care – the lowest ratio in the
county. The options for school children are not much

Inland Behavioral & Health Services breaks ground.

30754_MAPSPREAD 4/30/07 2:44 PM Page 11
Para Los Niños in Los Angeles, California.
better: nearby elementary schools are historically under
performing, falling in the bottom percentiles in the
state’s Academic Performance Index rankings. There is
an enormous need for a continuum of quality care to
close the achievement gap, strengthen families, and help
children succeed. The Family Learning Complex is
committed to doing just that.
THE 2006 REAL IMPACT: NCB Capital Impact
partnered with NCB and US Bancorp Community
Investment Corporation to provide more than
$5.2 million in low cost financing. This financing
allowed PLN to acquire the building that houses the
Family Learning Complex and will fund its renovation
to double the Complex’s usable space – from 24,000 to
48,000 square feet. Once complete, the Complex will
include a library, art classroom, cafeteria/auditorium,
and a centralized staff and teacher lounge, and provide
development and education for up to 480 additional
disadvantaged children.
11
the front line: community-based
long-term care
THE COMMUNITY: Outside of Detroit, Michigan
(Redford, MI)
THE NEED FOR REACH: When Mariellen Davis,
regional vice president of Presbyterian Village of
Michigan (PVM), traveled south to Tupelo,
Mississippi, in 2003 to visit a GREEN HOUSE®
home, she realized that the way PVM provided
nursing home care to its residents had to change. The
GREEN HOUSE® concept is a total rethinking of the
architecture, organization, staffing, and philosophy
of nursing homes designed to create homes that
provide skilled care rather than long-term medical
institutions where people must live. Residents direct
daily decision-making in partnership with direct care
staff – such as wake-up time and what and when they
eat. Each GREEN HOUSE® home offers 10 private
rooms, each with its own bathroom, as well as a large
living room with a fireplace and an open kitchen to
encourage residents to participate in making snacks
and meals. “GREEN HOUSE® homes are intended to
30754_MAPSPREAD 4/30/07 2:44 PM Page 12
12
eliminate large nursing facilities,” said Dr. William H.
Thomas, M.D., who developed the concept. “It creates
a social environment to reduce loneliness and
boredom.”
The first GREEN HOUSE® homes were opened
in 2003 in Tupelo, Mississippi. Research showed
greatly improved quality of life and care, making it
clear that this model should be replicated nationally to
ensure that older adults across the country had access
to this revolutionary model of skilled nursing home
care in a real home.
THE 2006 REAL IMPACT: The Robert Wood Johnson
Foundation awarded a $10.2 million grant to
NCB Capital Impact to help spur the widespread
adoption of the model. The five-year grant allows
NCB Capital Impact staff to provide technical
assistance and pre-development loans to support
organizations that want to establish GREEN
HOUSE® homes such as PVM. Within the next five
years, NCB Capital Impact hopes to establish at least
one GREEN HOUSE® project in every state, making
it possible for providers across the country to visit
one and consider adopting the model for their own
operations.
A new GREEN HOUSE® opened in Michigan with Presbyterian Villages.
the front line: affordable housing
THE COMMUNITY: New York City, New York
THE NEED FOR REACH: On the north side of
New York City, three apartment buildings comprising
nearly 100 units had been neglected to such an extent
both financially and physically that the city had
initiated foreclosures on the buildings, a move that
would typically threaten to displace its tenants. But
the city also entered the buildings into a program that
allows for New York City to transfer the titles to
qualified third-party developers to rehabilitate and
manage the properties, maintaining them as affordable
housing – a critical need in a neighborhood where
housing prices are soaring. Northern Manhattan
Improvement Corporation (NMIC), a non-profit
developer, is now sponsoring the tenants and will
direct the rehabilitation of the dilapidated buildings.
THE 2006 REAL IMPACT: In September,
NCB Capital Impact closed construction loans for the
three buildings. This private loan will be combined
with a loan from New York City’s Department of
Housing, Preservation, and Development (HPD) to
provide low-cost financing for the renovation, which
will correct serious structural problems and give the
units new kitchens, baths, electrical wiring, plumbing,
and an upgraded security system, as well as supplying
substantial lead paint abatement. NCB Capital Impact
provided nearly $2 million to these projects, which,
combined with HPD’s loan of $10.5 million, totals
$12.5 million in financing.
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13

NCB Capital Impact overview

what we do NCB Capital Impact Board
of Directors
NCB Capital Impact, an affiliate of NCB, is a national
501(c)(3) non-profit organization that empowers NCB Capital Impact’s Board of Directors is comprised
America’s underserved communities to achieve lasting of industry leaders in the cooperative world who
economic progress by creating access to capital and represent a variety of sectors, including housing,
education, health care, and economic development.
expert technical assistance otherwise unavailable to
The board also includes individuals who are appointed
low- and moderate-income communities.
from NCB’s (our affiliate) Board of Directors:
NCB Capital Impact combines both financial and
IRMA COTA (CHAIR)
technical assistance services to spark systemic change Chief Executive Officer
for delivering affordable facilities to communities North County Health Services
including housing, health care, assisted living, San Marcos, California
education, and economic development ventures.
JEFFREY LEONARD (VICE CHAIR)
In order to maximize impact, we integrate our efforts President
with community development corporations and Global Environment Fund Management
community based organizations, government Corporation
agencies, investors, and funders. We’re nationally Washington, D.C.
recognized for our unique ability to pull together and ALLAN J. BAUM
fully leverage private and public resources to increase: New York, New York
• Affordable Cooperative Homeownership
RAFAEL E. CUELLAR
• Health Care Facilities
President and Chief Executive Officer
• Education / Charter School Facilities
ShopRite Passaic/Clifton
• Community-Based Long-Term Care
Passaic, New Jersey

GRADY B. HEDGESPETH
25 years of impact Consultant
New Market, Maryland
For 25 years, NCB Capital Impact – in collaboration STEPHANIE MCHENRY
with its affiliated financial institution, NCB, and other President and Chief Operating Officer
partners – has delivered more than $2 billion toward ShoreBank
progress for low- and moderate-income communities. Cleveland, Ohio
Cumulatively, including technical assistance, the efforts KIRSTEN MOY
of the organization have resulted in more than: Director
• 32,000 affordable housing units Economic Opportunities Program,
• 94,000 school seats The Aspen Institute, Washington, D.C.
• 8,700 affordable assisted living units
ANDY REICHER
• 2.4 million square feet of community health
Executive Director
care facilities
Urban Homesteading Assistance Board
• 350,000 patients served annually New York, New York
• 15,000 jobs created
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14

consolidated statement of activities

Year Ended December 31, 2006

2006
CHANGES IN UNRESTRICTED NET ASSETS
Financial Activity
Financial Income
Interest income on investment securities $ 638,954
Interest income on loans 5,882,751
Unrealized and realized gain (loss) on investment securities, net 225,078
Total financial income 6,746,783

Financial Expense
Interest Expense 873,807
Net realized loss on assets 22,250
Provision for loan losses 391,005
Total financial expense 1,287,062
Net financial income 5,459,721

Revenue and Support

Fees 2,611,099
Contract Revenue 1,288,829
Other Income 17,304
Net assets released from restrictions 2,443,428
Total revenue and support 6,360,660

Expenses
Lending Program 4,368,315
Technical Assistance 3,655,714
Total program expenses 8,024,029

Support expenses
Management and general 3,415,576
Fundraising 275,695
Total expenses 11,715,300

Increase in unrestricted net assets 105,081

CHANGES IN TEMPORARILY RESTRICTED NET ASSETS

Revenue and Support
Interest income on investments 399,083
Gain on joint venture 113,878
Contribution - NCB -
Grant Revenue - Robert Wood Johnson Foundation 154,000
Other grants 210,000
Net assets released from restrictions (2,443,428)
Increase (decrease) in temporarily restricted net assets (1,566,467)

Increase (decrease) in net assets (1,461,386)

Net assets - beginning 101,745,318

Net assets - ending 100,283,932

30754_MAPSPREAD 4/30/07 2:44 PM Page 15

15

consolidated statement of financial position

December 31, 2006

2006
ASSETS

Cash and cash equivalents $8,527,005

Cash and cash equivalents - restricted 13,863,944
Accounts and interest receivable 2,182,268
Contributions receivable 6,680,168
Investment securities 4,926,629
Investment in joint venture 6,496,717

Loans receivable 77,273,853

Less: Allowance for loan losses (5,529,634)
Loans receivable, net 71,744,219

Other assets 381,881

Total assets $114,802,830

LIABILITIES AND NET ASSETS

LIABILITIES

Notes payable $9,884,630

Revolving line of credit 2,192,149
Accounts payable and accrued expenses 2,442,119
Total liabilities 14,518,898

NET ASSETS

Unrestricted 72,057,628
Temporarily restricted 26,174,066
Permanently restricted 2,052,238

Total net assets 100,283,932

Total liabilities and net assets $114,802,830

report of management
Management prepared and is responsible for the condensed financial statements that are presented
on these pages. The condensed statement of financial condition and condensed statement of activities
included herein were derived from the full financial statements for the year ended December 31,2006.
The statements were presented in accordance with generally accepted accounting principles.

Shannon Scott
Controller, NCB Capital Impact
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16

rising reach
the path to scalability & sustainability

At NCB Capital Impact, financial strength is the springboard to sustainable, scalable social impact. That’s why
we measure ourselves using the same high standards we use to measure the projects that we finance. In doing so,
we ensure our ability to expand our reach toward progress—now and in the future.

SUMMARY OF ACCOMPLISHMENTS FROM 2004-2006

DISBURSEMENTS +48%

Disbursements reached a high of $120 million, an increase of $39 million from the baseline of
$81 million during this time period.

BALANCE SHEET +0.9%

Despite this 48 percent growth in disbursements, the balance sheet remained virtually static, increasing
only $1 million from $105 to $106 million.

EXTERNAL CAPITAL +1,983%

What can explain this performance? Simply, we employed a capital management strategy that increased
external capital 1,983 percent from $6 million to $125 million. The number of investors increased
400 percent from 3 to 15. And the assets under management increased 89 percent from $118 million to
$223 million.

CAPITAL TO ASSETS 95%

Not only did Net Assets increase 16 percent from $87 million to $101 million, but at the same time the
leverage ratio improved, with capital to assets increasing from 82 to 95 percent.

TECHNICAL ASSISTANCE GRANTORS +17

Grant and contract funding increased 125 percent from $1.2 million to $2.7 million. Grantors increased
567 percent from 3 to 20. And the number of contracts increased 500 percent from 2 to 12.
30754_NCB 4colour cover 4/30/07 2:39 PM Page 3

our aspirations are our possibilities.

– Samuel Johnson

CORPORATE LEGAL COUNSEL NCB ANNUAL REPORT

Goodwin Procter LLP
Washington, D.C.
GENERAL INQUIRIES
For more information about NCB Capital Impact, its mission,
products and/or services, visit www.ncbcapitalimpact.org or
call (800) 955-9622.
NCB CAPITAL IMPACT ANNUAL REPORT
To receive additional copies of NCB Capital Impact’s 2006
annual report or a copy of the annual audit, please send a
written request to our headquarters in Virginia. The annual
report and additional information are also available online at
www.ncbcapitalimpact.org.
To receive a copy of NCB’s 2006 annual report or a copy of
the SEC 10K, please send an email to marcom@ncb.coop.
Alternatively, you may access the report and additional
information about NCB online at www.ncb.coop.
DESIGN AND PRODUCTION: KIMBERLY KERIN
WRITER: LAURA MULLANE
PRINTING: B&B DUPLICATORS, INC.
COVER AND INSIDE BACK COVER PHOTOGRAPHS: SHANNON SCOTT
CENTER SPREAD/BACKGROUND PHOTOGRAPH: PETER KROGH
30754_NCB 4colour cover 4/30/07 2:39 PM Page 4

Innovative Community Lending

www.ncbcapitalimpact.org Expert Technical Assistance

Effective Policy Development

HEADQUARTERS
Note new address and phone number as of
April 2007:

2011 Crystal Drive

Suite 800
Arlington, Virginia 22202
Phone: (703) 302-8000
Fax: (703) 647-3490

WEST COAST OFFICE:

1333 Broadway
Suite 602
Oakland, California 94612
Phone: (510) 496-2222
Fax: (510) 496-0404

NEW YORK OFFICE:

250 Park Avenue
Suite 900
New York, New York 10177
Phone: (212) 808-0880
Fax: (212) 808-4396