Recent News
Darrin Williams, CEO of Southern Bancorp, was recently interviewed on the Your Mark on the World Podcast, and the footage is featured on Forbes. Williams discussed his bank's mission and strategy, saying, "Often our competition is not another bank; [it is] a payday lender or pawn shop, or someone who provides alternative forms of capital or credit that really strip wealth. So we really do a lot of outreach. We don't wait for people to come to the bank. We take the bank to them."
American Banker takes a look at the challenges facing the nation's black-run banks, including Carver Federal Savings Bank in New York. Many of the top challenges facing Carver are facing other community banks, including rising compliance costs, pressure to scale bank on commercial real estate, and an uphill battle to keep pace with technology. "There have been many, many things that the team and I are proud of, and there's no place I would have wanted to have been for the past five years," Pugh said. "Certainly some things I wish would have had a different outcome, but the journey... Read more
The First, A National Banking Association, has agreed to buy Sunshine Financial in Tallahassee, FL. The First will pay $32.1 million in cash and stock for the $194 million-asset parent of Sunshine Community Bank. The deal is expected to close in the second quarter of 2018. The acquisition will provide the First with five branches in Tallahassee. "Sunshine is well-known in Tallahassee as a customer-focused organization that delivers exemplary service," said The First CEO Hoppy Cole. "Tallahassee is ... a natural extension of our strategic vision to build market share in the Florida... Read more
Senatobia, a town 8,000 in the Mississippi Delta, is on the rise. This article highlights the beneficial presence of Sycamore Bank, whose main branch is located in Senatobia. "Even though we are a community bank, we offer a full suite of financial services that compete with anyone, even the megabanks," said CEO Jay Tindall. "And unlike the megabanks, all our decisions are made locally and by the people that greet you when you walk in the door."
The House of Representatives has passed a tax bill that would do away with the New Markets Tax Credit next year. Banks and other proponents have urged Congress to make the NMTC permanent, as it spurs economic development in low-income communities nationwide by awarding roughly $3.5 billion in annual tax credits to investors in commercial developments.
This article features Sunrise Banks' innovative approach to banking underserved customers. CEO David Reilling is interviewed about how Sunrise Banks was founded, where it is headed, and how he built the brand from the inside out. "The key is to meet customers where they are at, whether it's on Facebook or at the local coffee shop," he said. "In the end, it's all about developing a trusted relationship."
On November 6, 2017 the US House of Representatives Ways and Means Committee began the markup of the Tax Cuts and Jobs Act of 2017. If passed, this legislation as currently drafted would effectively eliminate the New Markets Tax Credit (NMTC) Program, which has been widely recognized as one of the most effective Federal programs to create jobs and promote small business in distressed rural and urban communities. The NMTC Program works to break the cycle of disinvestment in low-income communities by attracting the private investment necessary to reinvigorate struggling local economies. For... Read more
Philadelphia's only black-owned bank, United Bank of Philadelphia, is celebrating 25 years of serving its community. Evelyn Smalls, President and CEO, said, "Our fundamental goal is to see businesses grow and succeed. A lot of businesses do start in this region, but I think there is still a fair number of them that don't survive over three to five years. So we are really focused on the sustainability of these businesses: that they can continue to grow and be strong supporters in the economy."
Nine organizations in Minden, LA have teamed up on a project known as The Collaboration, which will seek to help entrepreneurs start and grow their small businesses. It will also foster development of existing companies. The Louisiana Economic Development office has changed its small business lending criteria to enable more widespread eligibility for state loans. Through The Collaboration, banks will be more inclined to lend to startup businesses.
The Huffington Post examines the Beneficial State Bank and Beneficial State Foundation as an alternative banking model with a large societal benefit. CEO Kat Taylor said in an interview, "You have to have a model that cares as much about environmental and social capital as it does about financial capital. Only within a community of practice like this can we create the muscle memory to do that, and to make the combined effort to monitor outcomes that will tell us whether we are doing that or not."
The new First Southwest Bank Center for Economic Opportunity at Adams State University will open its doors in January 2018, and it focused on community-based strategic planning and trainings to promote local business startups and improve job creation and retention. "We're excited about the future opportunities for business growth in the San Luis Valley, a place with unique heritage and incredible people," said Kent Curtis, CEO of First Southwest Bank. "And First Southwest Bank is truly committed to building more small businesses, networks, and opportunities for our rural Colorado community... Read more
This report from the Federal Reserve Bank of Philadelphia summarizes innovative activities from banks' Community Reinvestment Act (CRA) performance evaluations in the areas of job creation, education and workforce development, and transportation and affordable housing. It also examines potential mechanisms through which the CRA could help promote economic prosperity and alleviate poverty in the process of channeling capital into low- and moderate-income communities.
The gridlock in Congress has challenged legislators to pass any meaningful bills on banking regulations, though bankers recently scored a victory when the Senate voted to repeal the Consumer Financial Protection Bureau's arbitration rule. Still, banks are concerned about other proposals, such as the CFPB's plan to collect data on small-business lending and changes to the Home Mortgage Disclosure Act. These worries only seem to compound an increase in nonbank competition and cybersecurity threats.
There are $92 trillion in bond markets around the world. Corporations have ready access to those dollars. For example, when Amazon needed $16 billion to acquire Whole Foods, it borrowed it through the bond market. Now, nonprofit lenders in the U.S. with a mission to make capital meet the needs of poor communities have a foothold into that world.
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.