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 panhandle."
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.
The Distressed Communities Index (DCI) combines seven complementary metrics into a broad-based assessment of community economic well-being in the United States. The 2017 DCI finds that 52.3 million Americans live in economically distressed communities, with over half residing in the South. Distressed communities exist in red states and blue states: 36.4 million constituents inside distressed zip codes are represented by the Republican party at multiple governments, and 16 million constituents inside distressed zip codes are represented by the Democratic party.
The Community Investment Explorer is a new tool to analyze community development transactions over the past 30 years. The data, sortable by year, investment purpose, and metropolitan area, comes from 3 sources: the work of CDFIs, New Markets Tax Credit (NMTC), and Low-Income Housing Tax Credit (LIHTC). "We know there [are] a lot of groups, be it affordable housing, developers, CDFIs, tax credit investors, in addition to policymakers, interested in this information and to see the stories this data tells," said a community development specialist at the Federal Reserve Bank of St. Louis.
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 every $1 of federal funding, the Program generates $8 of private investment.
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."
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.