Several of the area's largest foundations have stepped up to help Hill District-based Dwelling House Savings & Loan raise enough capital to meet a deadline set by federal banking regulators.
John Haines, president and CEO of the historic institution, announced in a prepared statement this afternoon that he is submitting a plan to banking officials that lays out the new financing needed to replace money stolen by cyber thieves.
In addition to money that Dwelling House has been able to recover on its own, the plan calls for contributions from Dollar Bank, which has been mentoring the smaller institution, and from several foundations including Richard King Mellon by way of a grant to the Poise Foundation, The Pittsburgh Foundation, Elsie H. Hillman Foundation and The Heinz Endowments.
Dwelling House has been scrambling in recent months to replenish a $1 million capital deficit left by thieves who stole more than $3 million through electronic bank transfers extending into last year.
The savings and loan had been making steady progress, Mr. Haines said, in recovering some of the money from other financial institutions that unwittingly processed the fraudulent transfers.
Automated clearing house transactions allow customers to deposit and withdraw funds from one financial institution to another using electronic checks.
Mr. Haines declined to disclose details of the plan until F.D.I.C. officials have had an opportunity to read and respond to it.
"What we can say at this point is that we are confident we have a way forward that will meet the expectations of federal regulators in terms of recapitalization and recovery from a terrible criminal act," Mr. Haines said.
"Just as important, this plan, with the generous assistance of Pittsburgh's foundation community, will reinvigorate a historic Pittsburgh institution so that it continues its special mission of serving the African American community for decades to come."
