Recent News
Earlier this month, Next City and CDBA member Community Bank of the Bay joined forces to host the annual Spaces and Places conference. This event, designed as an "unconference," intends to shine a light on community development issues affecting communities of color. These are issues often ignored by urban planners and design communities, but are nonetheless in dire need of attention. This year's workshop explored collective and cooperative power, affordability in housing, homelessness, climate change displacement and environmental justice, and the needs of black cultural... Read more
The Community Development Financial Institutions (CDFI) Fund was created under the Clinton Administration, but its roots are much deeper than that. No one knows those roots better than Clifford Rosenthal, who recently completed "Democratizing Finance: Origins of the Community Development Financial Institutions Movement," a 556-page history of mission-driven lending and investing in the United States. "What is totally unique about the CDFI Fund in policy history is that it provides capital — not loans, but discretionary capital — to build your balance sheet," says Rosenthal.
The recent #BankBlack social media campaign has brought black banking back into the national consciousness. The movement has inspired thousands of people across the country to transfer or deposit millions of dollars into black-owned banks for the first time. With this support, black-owned banks invest in urban communities, employ African Americans, and inspire black home ownership. For those considering making the change, here is a list of 13 banks to consider, including CDBA members United Bank, Industrial Bank, Harbor Bank of Maryland,... Read more
Washington, DC's historic U Street has served a long tenure as the vibrant heart of African American culture and entrepreneurship in the city. And after countless historical turning points and ensuing riots, three black-owned businesses have weathered decades-long hurdles to offer a glimpse into the tight-knit community and bustling neighborhood as it once stood. Ben's Chili Bowl, Lee's Flower Shop and CDBA member Industrial Bank all opened their doors in the mid-1900s and are still run by the second, third, and fourth generations of the same families. They maintain tight... Read more
This month, South Carolina Community Bank officially changed its name to Optus Bank. The bank will also complete its conversion to a new core banking system and upgraded products and services on May 13th. The new brand is designed to highlight progress made by the bank, which was removed last March from the FDIC's troubled bank list. In 2018, the bank realized its first year of profitability and growth in 10 years, according to a news release from Optus. "We purposefully delayed the name change until the bank was healthy, profitable and able to deliver on our brand promise... Read more
At first glance, a "video teller" installed in New Hebron may seem more impersonal than a traditional bank branch. However, for Peoples Bank this new bit of technology has allowed bankers to personally interact with a whole new set of customers. The machine, stationed in a location far from a physical branch, allows customers to live video chat with a real teller at another nearby Peoples Bank location. "We typically have two to three different employees who are serving that role as a live teller," said Ashley M. Jones, vice president of marketing. "The tellers on our end... Read more
Many bank executives are excited about the benefits created by Opportunity Zones. However, other banks are still wondering if participation in them is even feasible. CDBA's Jeannine Jacokes offers her insights in this special report from American Banker. The article also features CDBA members Dominik Mjartan of Optus Bank, Tom Nida of City First Bank, Adam Northup of Virginia Community Capital, and Bill Dana of the Central Bank of Kansas City, all of whom support stronger regulations for Opportunity Zone projects.
Banks have made more than $1 trillion in community development lending from 1996 to 2017, benefiting low- and moderate-income communities, as a result of Community Reinvestment Act (CRA) requirements. While this level of financing is impressive, we do not know enough about where it is going in order to determine whether it is targeted effectively to the most underserved and distressed communities. In other words, we need better data. In a recent speech at the 2019 Just Economy Conference, Federal Reserve Governor Lael Brainard suggested that data on community development financing is... Read more
As a senior vice president at Silicon Valley Community Foundation (SVCF), one of Bert Feuss' primary jobs is to decide where to invest the money that comes from donors. But when he went looking for a bank to deposit with, he specifically wanted one that would sign on to the Anti-Displacement Code of Conduct. This pledge would ensure that the financial institution would avoid making loans to developers who rely on the eviction of existing residents. While other banks hesitated, The Community Bank of the Bay was more than happy to agree. CDBA members Amalgamated Bank... Read more
This week's CDBA Storybank video highlights The Bank of Cherokee County in Tahlequah, Oklahoma, one of the first Native Community Development Financial Institutions in the country. Its featured clients are small business owners who have developed the Bright Start child care center and the Go Ye Village retirement home, both of which serve the community of Tahlequah. The Bank of Cherokee County "is not just a bank," says Go Ye Village's Steve Thomas. "They're more of a partner in the process."
Historically Black-owned banks have been a foundational pillar for the community by providing African Americans access to financial services and capital for businesses. Now, with movements such as #BankBlack, social media has brought awareness to the importance of banking Black and using our money to back these institutions. For those interested in making the shift over, Rolling Out recommends five high-performing black banks, including CDBA's Industrial Bank, OneUnited Bank, and The Harbor Bank of Maryland.
This week, The Clearinghouse CDFI announced a $195,000 investment in Native American Bank, the only Native American-owned, nationwide financial institution. With this investment, Clearinghouse CDFI becomes Native American Bank's first CDFI investor out of thirty-four different shareholders. "We are pleased to make this investment," said Clearinghouse CDFI President and CEO Douglas Bystry. "We are excited to partner with them in providing affordable and flexible financial services to Native American and Alaskan Native individuals, enterprises, and governments."
The number of community banks in our nation is at the lowest point in recent history. From a high of 18,033 in 1985, we've come to just 5,477 as of the third quarter of 2018. Additionally, many community banks have sold to larger institutions as heavy consolidation takes over the banking sector. Local banks are especially important because they support the nation's small businesses, which employ the majority of Americans. In fact, according to the Small Business Administration, small businesses make up 49.2 percent of private-sector employment.
The Omidyar Network, a venture capital fund started by Pierre Omidyar, the founder of eBay, recently spun off the portion of its portfolio devoted to financial-inclusion businesses. This new venture firm, called Flourish, will focus solely on backing fintech entrepreneurs whose innovations are helping people take advantage of economic opportunity and achieve financial health. Tilman Ehrbeck, managing partner of the new venture capital firm, shared the logic behind the spinoff and how he finds fintech startups that have a social mission, yet are also moneymakers. Read the full interview... Read more
Rural America has a robust cultural history that has enriched the nation and its people. However, rural areas are also beset with social and economic challenges. Population migration and persistent poverty are contributing to a widening urban-rural divide in many states. But by utilizing the creative sector, specifically arts and culture, governors have a viable approach for changing the status quo. This new Rural Action Guide shares in depth research, processes, and lessons for just how to lead strategies for success.
Governor Lael Brainard of the Federal Reserve Board recently detailed possible steps forward on reforming the Community Reinvestment Act. These possible provisions include an updated approach to CRA assessment boundaries, revising how banks are tested for community development activities, and tailoring certain CRA requirements based on bank size. The aim is to recognize activities beyond a bank's branch network, the traditional CRA assessment boundary, while still prioritizing activities within that network. "By creating separate assessment areas for retail and community development... Read more
The StoryBank Project is a CDBA initiative to capture success stories of various impactful loans from our member banks through the eyes of their customers. These important stories show how underserved communities benefit directly from mission-based banking and financial services. This month's video highlights M&F Bank in Durham, North Carolina -- the second-oldest minority-owned bank in the United States. Its featured client, UDI Community Development Corporation, is a nonprofit that reinvests in low-wealth communities.
The CDBA office would like to introduce you to the newest member of our team. As CDBA's Membership Director, Anna will lead the development and execution of education and peer networking opportunities for member banks. Anna joins CDBA from Partners for the Common Good, a national CDFI loan fund based in Washington, D.C. With a background in CDFI Fund programs, social impact analysis, and investor relations, Anna is excited to work with CDFI banks to build capacity and continue to serve low- and moderate-income communities. Anna is originally from Flowery Branch, Georgia and holds a... Read more
B Corps are businesses that have been certified by the nonprofit B Lab as being committed to the ideal of using "business as a force for good." As community development banks already have that ideal built into their foundations, these banks make a great fit for the B Corp movement. "It's in our DNA to serve our community, particularly low- and moderate-income communities," says City First Bank CEO Brian Argrett. "Our approach to being a community bank was already fully aligned with what B Lab was doing." CDBA's Spring Bank and Sunrise Banks... Read more
Today, the U.S. House of Representatives Subcommittee on Financial Services and General Government conducted a hearing on the impact of Community Development Financial Institutions. The video of the entire hearing is now available for online viewing and review.
Bob Jones, President and CEO of United Bank and Chairman of CDBA's Board of Directors, testified before the Subcommittee on the value of CDFI-certified banks and the community impact and effectiveness of... Read more