Recent News
This article from the American Banker examines the consolidation of the US banking industry and the decline of the number of individual FDIC-insured institutions amidst high regulatory costs. It argues for the rethinking of the regulatory approach to the community development financial sector.
This report from Freddie Mac reveals how and why an acute shortfall of affordable rental units is making life more challenging for millions of people nationwide. Although multifamily housing construction is back to historically average levels, the new units flowing into the overall rental supply are generally serving higher-income renters. Increasing rents, stagnant household incomes, and potential changes to the public subsidies have reduced the number of affordable, available units for low-income renters.
Sunrise Banks and Hiawatha Academies have partnered to mobilize some of Sunrise's recent $70M New Markets Tax Credit allocation to construct a new campus for Hiawatha Collegiate High School. The school enrolled 475 students this fall, and through this new facility, it will grow to a full capacity of 788 students and 84 staff. "The Hiawatha Academies project is a great example of the positive impact of the NMTC Program one block at a time," said Sunrise Banks CEO David Reiling.
Earlier this month, minority bankers from across the country convened in Washington, DC to discuss wealth-building strategies. Carver State Bank President Robert James spoke at the conference, addressing the need for black-owned banks to tailor their marketing materials to attract millennial customers.
City First Bank has partnered with SOLE Financial to offer a payroll card program to its business clients who employ unbanked workers. This program will reduce the burden that paper payroll checks place on the unbanked. Their clients will save significant revenue at the company level as well as save on check cashing fees at the individual employee level by transitioning from paper checks to the SOLE Paycard. Charlene Davis, VP Branch Relationship Manager at City First, said, "This partnership supports our mission to continuously provide services to low- and moderate-income communities."... Read more
The First, A National Banking Association has acquired First Community Bank, a CDFI based in Chatom, AL. First Community serves Washington, Mobile, and Baldwin counties in southwest Alabama. The transaction will significantly increase the combined banks' market share in the Mobile area.
This report, from the National Federation of Community Development Credit Unions, provides new insight into how and why immigrants that have entered the financial mainstream engage with their financial institution. The study analyzes product utilization, survey and interview data from a sample of immigrant members at seven credit unions around the United States.
City First Foundation and City First Bank of DC is hosting their fourth annual Community Development Finance Conference on October 17 in Washington, DC. The day-long Conference will convene key community development stakeholders to build integrated solutions toward community prosperity for low to moderate-income communities. Topics of discussion will range from effective public, private, nonprofit, and philanthropic partnership development to attracting investors to the impact economy.
The National Council on Agricultural Life & Labor Research Fund (NCALL Loan Fund) is seeking an experienced Accounting Associate and an experienced Loan Officer. The Accounting Associate will lead the preparation of financial statements and other financial reports, create quarterly compliance reports and to assist with the preparation of various funding applications. The Loan Officer will oversee business development and the origination of community development loans in Delaware and throughout the Delmarva Peninsula. The NCALL Loan Fund is an IRS-designated 501(c)(3) nonprofit... Read more
After acquiring a 90% share of Albina Community Bank in 2013, the holding company of Beneficial State Bank will purchase the remaining 10% of Albina’s stock in Q1 of 2018. The full merger will create a powerful organization that combines and amplifies the impact of Albina’s proven community banking model with Beneficial State’s mission to transform the banking industry for good by creating equitable access to financial services.
Richland State Bank in Rayville, LA has earned its 73rd consecutive 5-star rating from BauerFinancial, with a special designation as a Sustained Superiority Bank in recognition of its long-term excellence. This designation is reserved for the banks that have maintained Bauer’s highest rating longer than 90% of the industry. “By earning Bauer’s highest 5-star rating, Richland State Bank proves to its customers and the community that it is committed to their needs and to financial discipline,” said Karen Dorway, president of BauerFinancial.
FNBC Bank has won the American Bankers Association’s Bank Marketing Video Awards for Best in Asset Category: Under $500 Million with its 30-second video “FNBC + Boyd Jackson = Better Together.” FNBC was one of four winners from the various asset categories, chosen out of over 300 entries from banks of all sizes across the nation. The awards were announced after more than 6,000 votes and the careful consideration of 77 judges.
The wealth gap between whites and blacks in America is massive and persistent, but the nation’s black-owned banking sector has been shrinking faster than the rest of the banking industry. The connection between these two trends is the subject of a new book by University of Georgia law professor Mehrsa Baradaran: “The Color of Money: Black Banks and the Racial Wealth Gap.” Baradaran argues that the sector can never eradicate black poverty without more structural support. “To be a black-owned bank, 51% of your capital has to be from black investors. And that really restrain them, because... Read more
The CDFI Fund has released a Summary Report and data collected on New Markets Tax Credit (NMTC) investments across the nation through FY 2015. For the first time, the Summary Report categorizes all investments with the North American Industry Classification System, which reveals that over 68% of NMTC investments made through 2015 have been concentrated in single / mixed-use real estate, healthcare and social services, manufacturing, and education.
The MS Economic Council published an article highlighting the seven CDBA member banks who received CDFI Program awards last week, as well as the role of CDBA as a trade association for community development banks.
This article from Next City features CDBA’s position on Section 1071 of the Dodd-Frank Act, which gives federal regulators the authority to collect and disseminate specific information with regard to small business lending from banks. “CDBA recommends that the CFPB keep Section 1071 simple and streamlined,” CDBA said in a letter to CFPB. “CFPB should only ask for data that is mandated by Congress or critical to fulfillment of its statute. Every data point collected for every customer is a real cost.” A quote from CDBA CEO Jeannine Jacokes is included.
Virginia Community Capital has surpassed the $1 billion mark in total project impact. The threshold is based on a calculation that for every dollar it lends to a project, an additional $1.44, on average, is leveraged from public and private sector resources and social investors. The project that enabled VCC to hit this milestone is a 240-unit affordable senior apartment community under development in Reston, VA. VCC provided a $1 million pre-development loan for the project.
The CDFI Fund awarded $24.3 million to 27 community development banks through its CDFI Program Awards. These banks will invest the awards in distressed communities to support small business lending and promote affordable housing, neighborhood revitalization, and expansion into new geographic markets. “The CDFI banks recognized today by the Treasury Department are economic engines, working to fight poverty and create opportunity in the places that are struggling with growing income inequality,” said Jeannine Jacokes, Chief Executive Officer of the Community Development Bankers Association... Read more
On September 19, the Treasury Department’s CDFI Fund announced $24.3 million in CDFI Program Awards to a record-breaking 27 banks, including 22 CDBA member banks! Among recipient states, Mississippi received the highest proportion of funds nationwide, with Arkansas ranking second and Louisiana third.
According to a massive new dataset compiled by researchers at the Urban Institute, there are many financially-neglected areas that CDFIs have yet to reach. The study found that CDFIs lent over $34.3 billion between 2011 and 2015, and 64% of this lending went to census tracts with one or more indicators of being underserved or distressed. However, CDFI activity was not distributed equally across the country, even among economically comparable places. In order to expand, the sector needs additional support mechanisms.