Recent News
Students at two elementary schools in Hanover Park, Ill. have received free financial literacy education through the First Eagle Bank Financial Scholars Program. First Eagle Bank provides the online financial literacy program at no cost to the schools. In the 2015 fall semester alone, the program reached more than 40 students. First Eagle Bank has partnered with leading education technology company EverFi, Inc., to bring the interactive, web-based financial management program to over 750 students since the program’s inception in 2013. “First Eagle Bank is very proud of the... Read more
At a time when many Native Americans struggle to secure mortgages from mainstream institutions, Oklahoma City-based Bank2 is fighting for greater financial inclusion. According to 2014 Home Mortgage Disclosure Act data, Bank2 made $38 million in home loans to Native Americans in 2014. That ranks it among the top 20 in mortgages to Native Americans in the country. Bank2 has the highest volume of mortgages to Native Americans of any Native-owned financial institution by a significant margin. More than half of its total mortgages (220 out of 426) were to Native Americans.... Read more
The CDFI Fund has opened the FY 2016 application period for the CDFI Bond Guarantee Program. Up to $750 million in bond guarantee authority will be made available to eligible CDFIs in FY 2016. Through the CDFI Bond Guarantee Program, selected CDFIs or their designees issue bonds that are guaranteed by the Federal government and use the bond proceeds to extend capital for community development financing and investments. Authorized uses of the loans financed through bond proceeds include a variety of financial activities targeted at revitalizing low income communities. The deadline for... Read more
Millennials have become heavy users of alternative financial services, primarily payday lenders and pawn shops. A joint study from PwC and George Washington University found that 28 percent of college-educated millennials (ages 23-35) have tapped short-term financing from pawn shops and payday lenders in the last five years. Many of these borrowers resort to alternative lenders even though they have other options to access cash; 35 percent are credit card users and 39 percent have bank accounts. The study paints a bleak... Read more
The 2016 National Interagency Community Reinvestment Conference hosted by the federal banking regulatory agencies, the Federal Reserve Bank of San Francisco and the CDFI Fund will be held in Los Angeles from February 8 to 10. This biennial conference will feature discussions regarding innovations in community development policies and practice, CRA examination training and community development tours of Los Angeles. The conference agenda includes keynote presentations by Comptroller of the Currency Thomas J. Curry, FDIC Chairman Martin J. Gruenberg, Acting Assistant Secretary for Financial... Read more
CDFI banks--including Southern Bancorp, Spring Bank and Sunrise Banks--are innovating with new payroll lending programs. These small-dollar loan programs provide credit as a workplace benefit akin to health insurance. The programs serve as low-cost alternatives to payday loans, but they could also give small banks a chance to compete in the market for online consumer loans. Spring Bank began offering the loans last summer at two nonprofits in the Bronx. "It's good for the employer, it's good for the employee, and it's good for us because... Read more
The Chronicle of Philanthropy included Dominik Mjartan, CEO of Southern Bancorp Community Partners and a member of CDBA’s Board of Directors in its inaugural 40 Under 40 List. The list includes young philanthropic leaders, economic developers, social advocates and visionaries who are crafting innovative new approaches to entrenched problems. Mjartan stressed the importance of an evidence-based approach to supporting development in the Mississippi Delta. "We’ve seen a lot of community-level progress," says Mr. Mjartan. "But then the question came, ‘Are we making sure that... Read more
Bank of Montgomery has been rebranded BOM, reflecting the bank’s recent expansion beyond its original community of Montgomery, Louisiana. The bank now has grown to include nine branches in five parishes. A major component of the expansion was the acquisition of Bank of Ringgold by BOM’s parent company, Grant Bancshares Inc. That transaction expanded the bank's footprint with three additional locations in Bienville and Bossier, La. “The BOM name shows how the bank has entered a new chapter in terms of service area and financial strength,” said BOM President and CEO Ken Hale... Read more
City First Bank of D.C.'s New Markets Credit Fund is helping finance several new projects in D.C. and beyond. Among the newly announced projects was the $10 million expansion of Achievement Preparatory Academy's Washington, D.C. campus. The school will build a new 45,000 square foot addition to its existing campus in a community where there are no other quality public education options. Achievement Prep schools have been recognized for their immediate impact in closing the achievement gap between low-income and affluent students in Washington, DC. The expansion will create... Read more
Virginia's William Byrd affordable senior housing complex is ready for a makeover thanks to financing from Virginia Community Capital, the Virginia Housing Development Authority and the city of Richmond Housing Trust Fund. All residents of the complex must be at least 55 years old and meet low-income requirements. The property will have each of its units renovated and add new accommodations for residents with disabilities. The building, which was constructed as a hotel in 1925, is on the National Register of Historic Places and was renovated into low-income senior housing... Read more
The Delta Regional Authority, the White House Rural Council and the U.S. Department of Agriculture are hosting a Regional Opportunity Investment conference in Memphis, Tennessee on January 11-12, 2016. The DRA, a longtime a supporter of Delta region CDFIs, encourages any interested CDFI bank representatives to attend. The event gathers top leaders from the delta business community, representatives of financial institutions, senior government officials, rural economic development experts and others from across the Mississippi Delta region and nation. Key topics of discussion will include... Read more
First SouthWest Bank is building a new headquarters in Durango, Colo. The 9,500 square foot headquarters will include a First SouthWest branch on the first floor, bank offices on the second floor and apartment space on the third floor. The new building will be built adjacent to a newly built local sporting goods store, Second Avenue Sports -- all in an effort to catalyze the city's plan for revitalizing the College Drive corridor. "This project is near and dear to our hearts in terms of a good example of urban infill and how we redevelop our downtown community," said... Read more
Carver Federal Savings Bank has announced a $50,000 donation to the Schomburg Center for Research in Black Culture, a leading national research library devoted to collecting, preserving and providing access to resources documenting the experiences of people of African descent. Carver’s gift will support enrichment activities for young students, empowering 125 Junior Scholars in their academic and professional careers. “Carver is a long-standing supporter of arts and culture in the community and has a long history of working with local cultural institutions. We are pleased... Read more
Chicago-based Urban Partnership Bank is seeking to sell 1,561 mainly residential loans in Chicago's South and West sides originated by its predecessor, ShoreBank. The loan package totals $154 million, with most of it dedicated to single-family homes. The average loan size is less than $99,000. According to market insiders, the size of the portfolio should spark investor interest despite the economic woes afflicting the neighborhoods Urban Partnership serves. “We are confident FFN will help source buyers with strong servicing capabilities," the bank said in a statement. "... Read more
The FDIC is planning to make cybersecurity a higher priority during bank exams as early as the second quarter of next year. Under the new program, cybersecurity will become its own separate issue in examination comments. "The new program includes enhancements to specifically address cybersecurity elements," said Mark Moylan, deputy director at the FDIC's office of risk management supervision. Regulators want to ensure that there is an understanding of "cyber risk as it overlays into business decisions that you make at the board level," Moylan said. Moylan also warned that if an institution... Read more
Guaranty Bank and Trust Company and First Security Bank are teaming up with FHLB Dallas to support Panola Habitat for Humanity with a $24,000 Partnership Grant Program award. The funds will be used to hire additional fundraising staff and to help community members move into homes of their own. Without the funds, the Panola Habitat would have had to merge with an affiliate in another location. "Our operation is small at the moment, but we have big plans for the upcoming year," said Connie Hawkins, president of the Panola Habitat for Humanity and CFO,... Read more
Columbus-Lowndes Habitat for Humanity has received a $12,000 Partnership Grant Program award from BankFirst Financial Services and FHLB Dallas. The award will fund upgrades a new building for Habitat which will house offices and a Habitat ReStore. The ReStore is a donation center where the community may donate used furniture, appliances and building materials, which are resold at discounted prices. Proceeds fund future Habitat projects. "Without the grant, they would have had to use their capital to make necessary updates to their new building," said BankFirst Financial... Read more
Stephen Green, vice president and market manager at Albina Community Bank, has been named the 2015 Portland Business Journal Small Business Advocate of the Year. Green participates in an array of local organizations including the Black United Fund of Oregon, the Housing Development Center and the Portland Development Commission, where he concentrated on assisting small, early-stage companies and nonprofits. Green has a reputation as a tough business coach who pushes entrepreneurs to reach their potential. “Oftentimes, for the people I’m working with, it’s the first time... Read more
RiverHills Bank and FHLB Dallas has extended a HAVEN grant to Steve Williams, an Iraq War veteran who served with the U.S. Navy. HAVEN is a unique grant program that targets income-qualified veterans and active duty service members who have been disabled in the line of duty since September 11, 2001. It provides grants up to $7,500 to support necessary home modifications. Mr. Williams injured his back during his Iraq deployment while placing concrete T-walls — large concrete slabs used as protection around the perimeter of buildings. "We're so excited to have been involved... Read more
Financial institutions face increased risk of cyber attacks that involve extortion, the FFIEC has warned. During an extortion attack, cyber criminals use a variety of tactics including ransomware, denial of service (DoS) and theft of sensitive information to extort payment or other concessions from victims. Often, an extortion attack encrypts the data on the target machine, making data inaccessible. The victim is then prompted to make a payment in order to release or unlock the files. In some cases, these attacks have caused significant impacts on businesses’ access to data and ability to... Read more