News
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 continue to play a vital role in community economic development."
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 operation strategy of Carver State Bank,” James said.
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 organization shares Carver’s steadfast dedication to community service, and Michael embodies these values."
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 work, and who deserve recognition for their lasting impact,” says Emma Guttman-Slater, community engagement officer at Beneficial State Foundation.
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 focuses on a range of topics including inclusive employment, support for entrepreneurs, affordable housing, community engagement and the importance of coalescing around a unifying vision.
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 that was able to expand in Virginia thanks to financing from Virginia Community Capital. The newly renovated facility retained 260 jobs and created 50 new jobs.
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 deposit are reinvested in ways that help create jobs, impact families and drive community development. It really is neighbor helping neighbor.”
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 expected to do quite a bit more than a bank that might have one or two (money service business) clients,” Yates said.
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 CDFI Fund to award more entities, and potentially award more first time recipients.
OneUnited Bank has announced plans to move its national headquarters from its current office in Boston's Financial District to a new larger location in Roxbury or Dorchester. Although just 7 percent of OneUnited Bank's $356 million in deposits are held in Massachusetts, the expansion signals the bank's growing emphasis on its Boston-based online and mobile banking team. OneUnited Bank President Teri Williams said an expanded headquarters in Boston fits OneUnited’s stated mission to help underserved banking customers. “It represents the right kind of challenge for an institution like us,” she said. “It is the No. 1 city for income inequality as a country. Given our mission, our view is that Boston needs us. And we need Boston to figure out how [we] can solve this problem.”