Recent News
OneUnited Bank is among a new wave of banks using innovative technology to redefine the bank branch experience. OneUnited President Teri Williams says the changes made at OneUnited have made the branch both a place of business and a meeting place for the community. “A lot of people are going in when there’s a problem or an opportunity,” Williams said. “Because of the decrease in the middle – the day-to-day transactions – banks are repurposing their branches.” Now, OneUnited’s branch in Liberty City, Florida is used as a community resource center. The branch hosts community... Read more
A former steel factory in St. Louis is being converted into a new business park thanks in part to New Markets Tax Credits provided by Central Bank of Kansas City. The site, now vacant, has a long history going back to 1870, when it began operations as a steel factory. It later served as a coal gasification and coke production facility until 1987, when it was abandoned. Now, developer Green Street St. Louis is revitalizing the site with an approximately $70 million makeover. Steve Kramer, U.S. Bancorp CDC’s senior vice president, said redeveloping the site has been a goal... Read more
U.S. bank earnings rose 7% in the second quarter over last year, although other measures of bank profitability remained depressed. The 6,348 U.S. banks earned $43 billion in the second quarter, a 7.3% increase from the same period a year ago. Banks boosted their loan balances by $185 billion, or 2.2%, compared with the first quarter of this year, the highest quarterly increase since 2010. They showed 2.8% growth in commercial and industrial loans compared with the previous quarter, a 3.1% increase in credit card balances and 1.3% growth in residential mortgage loans. Net interest margin, a... Read more
Southern Bancorp Community Partners (SBCP), lending partner of Southern Bancorp, has announced passing the $2.5 million mark in new capital to expand its lending. SBCP plans to raise a total of $5 million to expand its revolving loan fund to provide small business loans, microloans, mortgages and consumer loans in underserved communities in Arkansas and Mississippi. Because it faces fewer regulations than a depository institution, SBCP has greater flexibility in making loans that traditional lenders are unable to pursue, yet are desperately needed in rural communities. “On... Read more
OneUnited Bank has announced the winners of its 5th annual I Got Bank! Youth Essay Contest. Jahneece Cheatham, 8, of Long Beach, California, Jacqueline Hernandez, 12, of South Gate, California and Quentin Thomas, 11, of Philadelphia, Pennsylvania impressed the judges with their mastery of financial literacy skills and each won a $1,000 savings account. “We believe every child who participated in this essay contest is a 'winner' because their eyes have now been opened to the importance of saving and managing money,” said Teri Williams, President & Chief Operating... Read more
Many Americans have a skewed perception of their finances according to a recent study that compared how much debt households thought they had with how much lenders said they actually had. Researchers compared family-reported figures from the Survey of Consumer Finances (SCF) with creditor-reported data from the Consumer Credit Panel (CCP). When it comes to secured debt such as mortgages, households's estimates were roughly on target. But households estimated that they owed about 40 percent less than their lenders said they owed on credit cards—about $440 billion compared to $731 billion.... Read more
The CDFI Fund is soliciting comments on its revisions to the Interim Rule for the CDFI Program. Through the CDFI Program, the CDFI Fund uses federal resources to invest in CDFIs and build their capacity to serve low-income people and communities that lack access to affordable financial products and services. The revised Interim Rule includes revisions necessary to implement the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, as well as technical corrections and other updates to the current rule. All comments must be submitted via the... Read more
A new proposal to repurpose a former Urban Partnership Bank branch in Chicago's South Side is drawing praise from its community. The new plan, created by developer Alisa Starks, would bring a four-screen movie theater on the main floor, a six-lane bowling alley in the basement and a kid-friendly restaurant and play area on the second floor. The project will be committed to local hiring and to contracting with minority- and women-owned businesses. The revised plan was roundly supported by residents at a recent community meeting, with many saying it was the type of plan they... Read more
Mission Valley Bank is sponsoring a fundraiser for Carousel Ranch, a facility that provides equestrian therapy for children with special needs. Carousel Ranch is just the latest charity to receive support from Mission Valley, which also supports the Boys & Girls Club, Samuel Dickson Family Health Center and the College of the Canyons Foundation. Carousel Ranch provides Equestrian therapy that allows special needs children to stretch their muscles, improve balance, practice hand-eye coordination and develop speech skills. “With the economy that took the turn that it... Read more
Financial tech startups increasingly make social missions part of their raison d'être in addition to their digital goals to improve outdated financial services products. Some of these upstarts' battle cries are aimed at democratizing financial services at a time when banks are taking heat for charging their biggest fees to consumers who are living paycheck to paycheck. More affordabale pricing structures, easier-to-understand language and donations with each transaction are among the strategies the firms use to demonstrate mission. These disruptors with social missions baked into their... Read more
American Banker has named BankPlus and Community Bancshares of Mississippi among the best banks to work for. Community Bancshares offers full-time employees a 60% reimbursement on up to $600 worth of new clothes each spring and fall. It also offers leadership training to its rising banking stars. At BankPlus, employees get a day off each year as an anniversary gift and every five years receive a gift such as jewelry, furniture or a vacation. Top performers each quarter enjoy a lunch with executives, a $500 bonus and a commemorative coin. BankPlus has also... Read more
The Federal Reserve had expected to begin withdrawing its support for the nation’s economic recovery this year, but mounting evidence of a global slowdown could extend the era of easy money. Fed officials have signaled for months that they are getting closer to raising the central bank’s target interest rate and many investors had anticipated the milestone would come at the next Fed meeting in mid-September. But that timeline now appears less likely according to a growing list of prominent economists including... Read more
A new report from The Food Trust of Virginia documents access to healthy and affordable food in Virginia. Virginia Community Capital has played a key role in the effort to bring healthy foods to communities across the state with its Virginia Fresh Food Loan Fund (VFFLF), a $10 million fund to address the unmet capital needs of healthy food enterprises throughout rural and urban regions in Virginia. The VFFLF seeks to improve access to healthy foods while also bolstering local businesses and creating jobs. The initiative comes at a time when more than 1.7 million Virginia... Read more
Wall Street banks are scaling back their role in supporting debt sales that have helped online lending companies double their originations every year since 2010. Historically, investment banks have earned fees by helping lenders pool and store their loans until enough are aggregated for sale to investors. But now, a number of Wall Street firms are considering limits to their financing for companies that lend to higher-risk borrowers. The caution comes in response to a May ruling by the U.S. Appeals Court in Manhattan, which threatens to remove a protection that non-bank lenders have relied... Read more
OneUnited Bank and BankPlus were recognized last week in ICBA's Top Community Bank Leaders in Social Media list. More than 6,000 community banks throughout the nation were eligible to be part of the list and nearly 300 banks were nominated. Community banks were chosen based on their engagement with fans and followers, the content distributed on their social media platforms, the number of followers they have and the frequency of posting new content. “It is an honor for us to be recognized by ICBA for our efforts on social media because we see it as a unique... Read more
Banks that remain in the Troubled Asset Relief Program face limited options for exiting the nearly seven-year-old initiative. The Treasury Department still holds securities in 21 banks, compared to 707 when the program was at its height. The ranks have shrunk as banks exit the program or have their shares auctioned off to private investors. Now, many of the banks remaining in the portfolio are the more challenging prospects. "Treasury is continuing to implement the three-pronged exit strategy" for Tarp, a Treasury spokesman said. "That strategy includes waiting for those banks that are... Read more
Alden McDonald, President and CEO of CDFI Bank Liberty Bank says the Hurricane Katrina recovery in New Orleans is far from complete. Despite a rising narrative of a recovery that has transcended racial boundaries, a black homeowner was more than three times more likely than a white one to live in a flooded part of town — and the legacy of that disparity lingers on. Today, there are still 100,000 fewer black residents living in New Orleans than at the time of Katrina. In the aftermath of the storm, Liberty committed itself to getting its customers back on their feet, with generous grace... Read more
City National Bank of New Jersey in Newark has completed a $20 million recapitalization. The $257 million-asset bank raised capital from several investors including Skopos Impact Fund, Prudential Insurance Co. of America and Industrial Bank of Washington, D.C. The recapitalization will allow City National to continue as a certified CDFI. “For more than four decades, City National Bank has worked to revitalize urban areas. We are excited that a number of top-tier impact investors have deemed our efforts worthy of support,” said City National Bank President... Read more
Urban Partnership Bank of Chicago is in discussions with the FDIC on a buyout of two agreements under which the agency shares losses on hundreds of millions of old ShoreBank loans still on UPB's books, according to sources familiar with the matter. Urban Partnership hopes the buyout will allow it to secure enough cash to shore up its capital base. When the FDIC seized ShoreBank and transferred its assets and deposits to newly created Urban Partnership in 2010, the agency agreed to share losses on ShoreBank's commercial and residential loans, an arrangement scheduled to... Read more
A new profile of The Bank of Kilmichael tells how a family owned community bank is bringing tailored financial services to small towns in Mississippi. The Bank of Kilmichael was formed in 1904 and has been in the hands of the Mortimer family for four generations. It is the kind of Southern hospitality bank where employees know their customers by name. “The bank’s employees have remained loyal to that friendly customer service,” said Buddy Mortimer, president and CEO of the bank. “As a certified CDFI, we have demonstrated a track record of effectively serving these un-... Read more