Recent News
Sen. Thad Cochran (R-Miss) will resign from the Senate on April 1, ending a four-decade congressional career and triggering a fall election that could carve new divisions in the Republican Party and endanger the GOP Senate majority. Cochran, 80, has been suffering from health problems in recent months. "I regret that my health has become an ongoing challenge," he said in a statement. "I intend to fulfill my responsibilities and commitments to the people of Mississippi and the Senate through the completion of the 2018 appropriations cycle, after which I will formally retire from the US... Read more
Opportunity Finance Network (OFN) is set to launch a new Consumer Finance Marketing Toolkit, an easy-to-use online resource that will help CDFIs strengthen how they market their consumer products and services. Based on a survey of consumers, interviews with CDFIs, and pilot testing with three CDFIs, the toolkit includes customizable marketing materials that reflect a new value proposition intended to attract new consumers to your CDFI. Presenters include Mia Mendoza, Principal of The Mendoza Group, a firm with expertise in multicultural marketing; and representatives of two CDFIs that... Read more
Rogersville-based Legacy Bank & Trust Co. completed its purchase of First National Bank of Clinton. The deal closed on February 16th, with Legacy Bank adding three branches in Clinton and Springfield, Missouri to its portfolio. "Our associates have worked especially hard over the past 12 months in creating new products and services that will not only benefit our existing customers, but also our new customers from First National Bank," said John Everett, president and CEO of Legacy Bank, in a press release. Aaron Buerge, First National's president and CEO, became a... Read more
Last week, the Congressional Research Service provided Congress with a new report on CDFI programs and policy issues. The report discusses the CDFI Fund's history, current appropriations, and each of its programs. It includes a description of the Fund's eligibility criteria for the different programs, and also engages in an analysis of previous reports and studies on the CDFI Fund Programs, including CMF and the NMTC. Finally, it reviews four policy considerations of congressional interest regarding the Fund and the effective use of federal resources to promote economic development.
During this year's Black History Month, OneUnited Bank has presented the #MakeBlackHistory Plan for 30 million Black Americans to use the internet to organize their $1.2 trillion in annual spending power to build wealth and protect the Black Community. OneUnited President and COO Teri WIlliams explained, "We are at a unique point in history when the internet allows us to organize our money at a scale and speed never seen before. Hands down, this is the best time to build generational, personal, and community wealth by using technology and expanding financial literacy."
The Tax Cuts and Jobs Act, passed last month, amounts to a vast cutback in the construction of low-income housing. Because the tax rate for corporations has been lowered, the value of the credits is also lower. "It's the greatest shock to the affordable-housing system since the Great Recession," said Michael Novogradic, managing partner of Novogradic & Company, a national accounting firm based in San Francisco. According to an analysis by his firm, the new tax law will reduce the growth of subsidized affordable housing by 235,000 units over the next decade, compounding an existing... Read more
Around 250 bank mergers and acquisitions take place every year. The merger between Portland-based Albina Community Bank and Oakland-based Beneficial State Bank took several years to finalize, and culminated in last week's signage and branding changes at Albina's five former branches in Portland. Both banks are Certified B Corporations whose bylaws commit them to voluntary annual external reporting on a wide range of social impact metrics. Beneficial State Bank's unusual ownership structure and powerful track record helped convince Albina's former board of directors that the merger was an... Read more
Capnexus, the online database by Partners for the Common Good for matching capital to community development finance opportunities, will host a webinar on March 8 on how to use the New Markets Tax Credit (NMTC) Program for innovative financing. The webinar will feature NMTC experts that will discuss case studies and best practices from various perspectives. The webinar will also discuss best methods that Consultants can use to attract CDEs and Investors to the projects they are marketing. In addition, there will a case study that speaks to developers on risk mitigation of project management... Read more
The Wall Street Journal presents “A Portrait of Poverty in America: Job Insecurity and Payday Lending.” The video examines the rampant poverty and high unemployment levels in Holmes County, Mississippi, and highlights the effort of BankPlus to help citizens make ends meet.
Mission Valley Bank, located in Sun Valley, CA, has just announced that 2017 was its most profitable year to date. "As the founding President of Mission Valley, I am pleased to share that 2017 was another strong year for our organization," said President & CEO Tamara Gurney. Net earnings totaled a 2% increase over those of 2016. As of December 31, 2017, total assets reached $330 million, up $5 million from December 31, 2016.
Historically black banks have had a strong role in black communities. Their loans often finance projects that other banks wouldn't take on, and at fairer interest rates. And yet, policymakers rarely focus on partnering with or addressing the top priorities of black banks. Evelyn Smalls, President and CEO of United Bank of Philadelphia, explained the importance of finding investors who also understand and place value in the mission of a community bank, especially a black-owned community bank. Joe Haskins, CEO of the Harbor Bank of Maryland, elaborated, saying, "If I can raise the capital, I... Read more
Native American Bank, based in Denver, CO, is preparing to open its second retail branch. President and CEO Tom Ogaard explained that the Denver operations have grown and the bank wants to become more visible by opening a retail branch. It currently only has one in Montana. "We've been wanting for some time to create a different presence than we have in Denver," he said. The bank, which has just under $100 million in assets, has a core mission of supporting economic growth in Native communities.
Earlier this month, Commercial Capital Bank announced its intention to purchase First State Bank of Crossett, which has approximately $35.7 million in assets and two locations in Crossett, Arkansas. First State Bank has a business footprint in Louisiana's northeastern parishes. The banks expect the transition to close in the second quarter of 2018. "We are excited to combine with such a strong partner as First State Bank," said Commercial Capital President and CEO Shannon Lockard.
Darrin Williams, CEO of Southern Bancorp in Arkadelphia, AR, has written an op-ed on the financial benefits of helping small lenders to serve borrowers in bank deserts. "The Mississippi Delta may seem to be the farthest place in the world from New York City's financial heart. But, in fact, there is an opportunity to connect rural America with Wall Street and benefit both places," he writes. "A major opportunity exists to serve these communities, and Wall Street firms do not need a bank branch of their own to reap the reward."
This article from the American Banker features efforts by M&F Bank in Durham to reach more millennial customers. The bank recently formed a millennial advisory board to help improve its technology and marketing efforts. The $268 million-asset black-owned bank will soon debut a checking account designed for younger customers. It is also set to host parties in two cities to celebrate its new checking account. The events will feature food trucks and a DJ. "I've never had a DJ at an account opening," said F&M's President and CEO James Sills. "We're thinking differently... Read more
In the wake of recently passed federal tax cuts and reforms, First Southwest Bank in Alamosa, CO has become the latest US employer to announce a raise in starting pay, at $14 an hour with full benefits. "We're excited to take advantage of the tax reform and give the positive impact it has on First Southwest Bank right back to our team members and the rural Colorado community," said First Southwest CEO Kent Curtis. "By being able to provide a higher living wage to our starting employees, and invest in our team, we can be a catalyst for economic growth, and reaffirm our... Read more
Through the Richmond Fed's Survey of CDFIs in the Southeast (SCDFISE), CDFIs provide timely information on their capitalization, demand, and capacity, and development programs and services. This article presents key findings from the 2017 SCDFISE, including trends in CDFI certification, analysis of asset size, and perennial challenges in meeting demand for products and services provided by southern CDFIs.
The Senate is looking to pass legislation within the next month that would roll back restrictions on swaths of the finance industry. Such legislation would constitute the most significant loosening of rules imposed in the wake of the 2008 financial crisis. Buoyed by their success in rewriting the tax code, Republican lawmakers now aim to help the financial industry relax many post-crisis rules and regulatory obligations, particularly for thousands of small- and medium-sized banks. The bill would allow hundreds of smaller banks to avoid certain elements of federal oversight.
A new provision in the Tax Cuts and Jobs Act lays the foundation for placing trillions of dollars in unrealized capital gains into investment funds to drive long-term capital to distressed communities. The new Opportunity Zone Program provides tax benefits in Opportunity Funds, or "O Funds." O Funds will activate passive holdings by connecting investors to investment opportunities in Opportunity Zones. This concept, which was originally introduced in the Investing in Opportunity Act, is the first new community development tax incentive program introduced since the Clinton Administration.... Read more
According to Harvard University JCHS' newly released report, "America's Rental Housing 2017", unprecedented growth in the rental housing market is slowing amidst persistent affordability challenged for low- and moderate-income renter households. The report finds that fewer new renter households are being formed, rental vacancy rates have risen, and rent increases have slowed. At the same time, renter demographics are changing and rental affordability challenges remain prevalent.