Recent News
D.C.-based Industrial Bank has named Lisa Porter as its new senior vice president and chief financial officer. Porter's extensive financial management experience includes strategic planning, financial reporting and managing audits. "I am excited to be working with such a wonderful organization, filled with people who have a mission to give back to the community," Porter said. "Through my contribution in the finance division, my desire is to afford Industrial Bank an opportunity to extend its community outreach efforts." Industrial Bank President and CEO B. Doyle Mitchell hailed the hire as... Read more
James Slocum, CIO of OneUnited Bank, discussed the role technology plays in the bank’s strategy in an interview: "After the financial crisis, we recognized that our customer base in particular was pretty hard-hit by the recession, that their credit was damaged, and that they lacked the financial tools to dig themselves out of that pit that had been created by the financial downturn. In 2013, we started building our UNITY Visa secured credit card product... That particular project was a strategic one for the institution, as we saw it as our re-entry to offering online... Read more
The CFPB has proposed a new rule that will apply to payday loans, auto title loans, deposit advance products and certain high-cost installment and open-end loans. The rule would create new ability-to-repay requirements calling for lenders to ensure the borrower will have enough income to afford the loan while meeting their other financial obligations and living expenses. Lenders would also be barred from offering a “roll-over” loan to customers within 30 days of their previous loan. Lenders would be required to use credit reporting systems to report and obtain information on certain loans... Read more
At Virginia Community Capital’s 10 year anniversary celebration, the bank highlighted success stories across Virginia. Keith Sanders’ screen printing business, Classic Creations, started as a hobby. But when friends encouraged him to turn it into a business, he began looking at how and where he could start his shop. With a grant from the Virginia Tobacco Commission, he found the building and had orders under way but no financing in place. After being turned down by traditional banks, he was introduced to VCC. “The banks kept saying no, no, no,” said Sanders. “[B]ut VCC... Read more
Sunrise Banks is breaking ground on a new 57,000-square-foot headquarters. The 200-employee company currently has holding company employees spread across three locations, a holdover from the 2013 merger of Franklin, Park Midway and University banks into Sunrise Banks. The new building will allow Sunrise to consolidate those employees at a single location. Sunrise also intends to sublease space to a nonprofit corporation and build a training room that it will rent to community organizations. The new Sunrise headquarters will be part of the transformation of a distressed... Read more
Partners for the Common Good is now accepting listings for the relaunch of its CapNexus networking platform. CapNexus enables loan originators, interested buyers and financing partners to post community development lending opportunities and build partnerships. CapNexus 2.0 will expand on that core functionality with improved search tools and groundbreaking networking features for sharing news, promoting services and more. Listings on CapNexus reach an audience of more than 2,000 community development professionals. Now is the ideal time to submit listings in order... Read more
In a new report, Southern Bancorp Community Partners investigates the impact of the 2009 Arkansas interest rate cap that effectively ended the storefront payday lending business in the state. In a survey of former payday borrowers, 59% of respondents felt their lives had improved since payday lending was banned. Without access to payday loans, respondents adapted with a variety of alternatives including working longer hours, getting loans from friends or banks and using credit cards to meet their financial needs. The survey also revealed an interesting rift between... Read more
First Southwest Bank partnered with eight schools to teach over 360 fourth graders the importance of developing savings goals, tracking money spent and money earned, and delayed gratification. The lessons are part of the American Bankers Association Foundation's Teach Children to Save Day. “Familiarizing students with money management and savings fundamentals at an early age decreases their chances of falling prey to predatory lenders later,” said First Southwest Bank CEO Kent Curtis. “Teach Children to Save Day is an opportunity for our employees to teach financial... Read more
The FDIC has issued a call for comments on the agency's evaluation of the economic inclusion potential of mobile financial services. Current regulations, the CRA in particular, generally do not consider the emerging benefits of mobile financial services to underserved consumers who lack branch access. This has created challenges for banks attempting to overcome CRA-based objections to merger and acquisition plans. Before the emergence of mobile banking, banks used branch mapping to overcome these objections. But now, many banks are downsizing their branch footprints, making it harder to... Read more
Credit Builders Alliance has opened registration for its 3rd annual Credit Building Symposium in July 13 and 14 in Washington, D.C. The symposium fosters dialogue between nonprofit organizations involved in credit building and corporate and government entities whose practices include credit reporting, credit scoring and credit granting. Key topics will include the linkage between credit building and the broader issues of income inequality, poverty reduction and asset building. Addressing these issues is of critical importance as wealth inequality has continued to widen along racial and... Read more
John Melone, Pan American Bank Vice President, Business Relationship Officer and Palatine Office Manager was honored by the Palatine Township Senior Citizens Council for his volunteer service. Melrose Park, Ill.-based Pan American Bank has been a sponsoring partner of the council since 2014. In that time, the bank has donated close to $10,000 in the form of sponsorships and donations. “It is an honor and a pleasure to work side by side with this organization in helping them help our senior community,” said Melone. “It means a lot to me to be involved with the PTSCC, since... Read more
Groupe Nduom, a business group composed of Ghanian and American investors, has acquired Illinois-Service Federal Savings Bank. The acquisition started last year, when the ISF Board of Directors approved a recapitalization transaction that allowed it to come back from its post-recession troubles. "Our investment will enable the Bank to build upon its legacy by providing a suite of innovative financial services and products to address its customers' needs,” said Dr. Papa Kwesi Nduom, Chairman of the Groupe Nduom. “This investment helps ensure that minority focused banks... Read more
Carver State Bank President Bob James was featured as the keynote speaker at the Savannah Morning News' Business in Savannah luncheon. James has had the longest tenure at a single bank of any bank president in the state of Georgia, with 44 years of service. The bank, which was founded by Louis B. Toomer in 1927, is also the oldest bank headquartered in Savannah. “I grew up in an environment that had an enormous appreciation for the value of education and training as well as community involvement, so we’ve tried to incorporate those values into the culture and routine... Read more
Michael Pugh, CEO of New York City-based Carver Bancorp and a CDBA Board member, was honored by the Union Settlement Association for his contributions to the fields of finance and community development. “We are delighted to present this award to Michael in recognition of his leadership and Carver’s commitment to serving the diverse banking needs of lower- to middle-income communities across Brooklyn, Manhattan and Queens,” said David Nocenti, Executive Director of Union Settlement. Mr. Nocenti added, “As East Harlem’s oldest and largest social service provider, our... Read more
Beneficial State Bank is hosting the Oakland Indie Awards on May 12th to honor local businesses and artists who have a positive social and environmental impact the Bay Area economy. The event features an evening packed with live music and entertainment, local food vendors, interactive art exhibitions, and an Indie Marketplace featuring local artisans. “We’re so excited to be in our tenth year of supporting local at the Oakland Indie Awards! This year’s event, our love letter to Oakland, will pay special homage to those who’ve been in Oakland for a long time, doing great... Read more
A new report by The Urban Institute distills the community development agenda set forth at the Equitable Economic Development East of the River conference organized by the City First Foundation, an affiliate of City First Bank of D.C. The purpose of the conference was to address how D.C. can bring more of its newfound prosperity to neighborhoods east of the Anacostia River. Many structural barriers, including a lack of public and private investment, have prevented communities east of the river from sharing in the prosperity that other parts of DC are enjoying. The report... Read more
Virginia Community Capital has released a new annual report marking its 10th anniversary. The bank was founded in 2006 with a mandate from the Commonwealth of Virginia to use $15 million in start-up capital to bolster economic development in underserved areas. Today, they have leveraged that initial investment into $766 million in financing dollars. Virginia Community Capital has originated $320 million in loans, financing 4,719 affordable housing units and 9 health care facilities. And they have financed local businesses like Essel Propack, a product packaging company... Read more
April is Community Banking Month and United Bank is encouraging consumers and small business owners to “bank locally” by finding a hometown bank. United Bank is celebrating community banking throughout the spring as a sponsor of various local events. United Bank will also support schools across its footprint by participating in the Teach Children to Save financial literacy effort. "When customers bank locally and shop locally, they directly impact their communities,” said Bob Jones, president and CEO of United Bank. “Customers can be confident knowing the funds they... Read more
San Diego-based Neighborhood National Bank has agreed to beef up its anti-money laundering capabilities in a deal that will stave off enforcement proceedings from the OCC. The bank has pledged to develop a more robust risk compliance program to meet its obligations under the Bank Secrecy Act. The bank has hired a new senior vice president with extensive BSA experience to help formulate the plan. President Dan Yates said Neighborhood National draws extra scrutiny because its typical clients are businesses in low- to moderate-income areas that deal primarily in cash. “We are... Read more
The CDFI Fund has combined the 2015 and the CY 2016 New Markets Tax Credit (NMTC) allocation authorities into a single allocation round. This change will be accompanied by an increase for the combined CY 2015 – 2016 round from $5 billion to $7 billion. The change to the program results from recent federal legislation that extended authorization for the NMTC Program for five calendar years with $3.5 billion in annual NMTC allocation authority. This change will allow the CDFI Fund to announce the allocation of the tax credits in the year for which they are authorized. It will also enable the... Read more