The CDFI Fund announced $18.6 million in 2016 Bank Enterprise Award grants to mission-focused banks for their service in high poverty communities. This Fund – which yields an enormously high impact with a near-negligible proportion of the federal budget – is under threat in the immediate years to come.
The number of black-owned banks operating in the U.S. has been dropping steadily for the past 15 years and fell to 23 this year, the lowest level in recent history, according to the FDIC. The trend is worrisome to some analysts who argue fewer banks serving low-income, minority groups could expand “financial deserts”—communities with few or no banking institutions—and increase the likelihood that black and Hispanic communities could become susceptible to redlining. The article features a quote from Doyle Mitchell of Industrial Bank.
The Trump Administration's support for a reduction in the corporate tax break from 35% to 15% may be a blessing for the banking industry at large, but could do a good deal of harm to commercial banks that invest in the affordable housing market. This piece from the American Banker analyzes the potential impact of the new corporate tax rate on the viability of the LIHTC model.
On Thursday, August 3rd, Elvans Road Townhomes was launched as a part of the Single Family Investment Pilot, the first project of the District of Columbia Housing Finance Agency’s Housing Investment Project. DCHFA is partnering with H2DesignBuild and City First Bank to construct five new townhomes in DC’s Barry Farm neighborhood. “CDHFA’s Housing Investment Platform is the type of innovate approach that is needed to create more affordable housing throughout DC,” said DC mayor Muriel Bowser. “The investment in Elvans Road Townhomes will put homeownership in reach for more Washingtonians, create new job opportunities, and put more residents on pathways to the middle class.”
A new study shows that core deposit growth may be the best indicator of which banks have true staying power in the years to come. A consultant with Capital Performance Group explained that low interest rates and a tough regulatory environment kept net interest margins largely flat last year, but as rates inch up, banks of all sizes are going to be increasingly hungry for core deposits.
Mission Valley Bank was one of 3 California banks to recently present donation checks to the future Santa Clarita Valley Senior Center, a 2.5-acre newly-developed site that will feature a banquet hall, fireplace lounge and library, six multipurpose rooms, fitness center, dance studio, and outdoor cabana. It is scheduled to open during the summer of 2018, but is still short roughly $1.75 million of its goal. “As a community bank, we believe it is our mission to reach out to organizations like the SCV Senior Center,” said Tamara Gurney, President and CEO of Mission Valley Bank.
Alan Hargett, executive vice president of Planters Bank & Trust Co. in Indianola, and Gee Gee Patridge, executive officer and chief operations officer for BankPlus in Ridgeland, have been elected to the Board of Directors. Brian Hughes, vice president of PriorityOne Bank in Pearl, has been elected to the Executive Council of the MS Young Bankers. Congratulations to all officers on their new positions!
Sunrise Banks has received local coverage for its CDFI status.The article highlights the work of public-benefit corporations in the Twin Cities who have received designation as such from the Minnesota State Legislature, and features a quote from Sunrise Banks CEO David Reiling.
Virginia Community Capital has outgrown its office in downtown Richmond and is moving into a larger building in Henrico County. “After almost ten years, in our space downtown, we now require a larger space for our Richmond team. This is an exciting step for VCC, as it is indicative of our continued growth and impact across the state,” wrote Jane Henderson, CEO of VCC.
The CDFI Fund is issuing a call for well-qualified persons to serve as remote-location application reviewers for the 2017 application round of the Capital Magnet fund. Reviewers much have considerable expertise in community and economic development finance. The CDFI Fund has contracted with F2 Solutions to recruit reviewers. Applications are being accepted on a rolling basis until 5pm EDT on Friday, August 4, 2017. If you are interested, please send a brief email indicating your interest to: CMFReview@F2Solutions.com.