News
Thanks to the Special Needs Assistance Program (SNAP program) offered at Ridgeland, Mississippi-based BankPlus, retired chef Allen Crawford will finally have working hot water and a remodeled kitchen in his home. Crawford had been living without hot water for years after his water heater and stove broke. His kitchen floor was caved-in and there were holes in his walls. After applying for the SNAP Program, which provides grants to assist income-qualified, special-needs homeowners with home repairs, Crawford received $5,806 for repairs from BankPlus and FHLB Dallas. "Over the years, we have worked together to help literally hundreds of families with needed home repairs and modifications," said Mark Ouellette, first vice president and director of Affordable Housing at BankPlus.
Amid a spate of high profile cyberattacks, the FFEIC has released a new cybersecurity assessment tool to help financial institutions identify risks and evaluate their cybersecurity preparedness. The assessment provides a repeatable and measurable process for institutions to track cybersecurity preparedness over time, including determining the institution’s overall cyber risk, assessing the institution’s cybersecurity preparedness, evaluating whether the institution’s cybersecurity preparedness is aligned with its risks and determining needed risk management practices. The assessment is designed to apply to financial institutions of all sizes.
Risk in the U.S. banking sector is increasing as lenders ease underwriting standards for some categories of loans, the OCC said Tuesday. The share of leveraged loans to companies with debt-to-earnings ratios above the regulatory guidelines rose during 2014. In commercial real estate, banks are facing competition not only from other banks but also from life insurers, private-equity firms and others. As a result, banks are easing underwriting standards and making loans with options including interest-only payments for borrowers. Lenders are also easing the terms of auto loans, extending repayment periods and offering greater amounts of credit compared with the underlying value of the vehicle.
Oakland, California-based Community Bank of the Bay has announced that John Barr will join the bank as Chief Credit Officer. Barr previously served as Chief Credit Officer of Valley Community Bank in Pleasanton, California where he worked to significantly improve asset quality. Barr also has extensive experience in loan portfolio acquisition and valuation. “We are extremely pleased that John has chosen to join our management team as Chief Credit Officer. He brings a wealth of experience in the key areas of asset quality and portfolio management, and his commercial real estate lending background will be extremely valuable as we continue to grow our bank," said William Keller, Community Bank of the Bay president and CEO.
The Supreme Court decision making same-sex marriage legal nationwide could boost mortgage demand as it provides gay and lesbian couples with more financing opportunities and stronger joint property rights. In a survey of lesbian, gay, bisexual and transgender consumers, 81% of respondents said a Supreme Court ruling for marriage equality would make them feel "more fiscally protected and confident," which the trade group identifies as a key real estate market driver. The Supreme Court decision could spur not only more purchase lending, but also more refinancing as loans are refinanced to build credit for both spouses. The ruling will also clarify the patchwork of state laws that created housing inheritance issues and ensure titles will be passed from one spouse to another.
Southern Bancorp’s 2014 annual report shows continued financial success for the bank and growing social impact. Since acquiring several institutions in 2009, Southern has significantly increased investment in their communities. The bank has tripled capital investment levels in Blytheville, Ark. since acquiring First National Bank and increased lending significantly in Trumann and El Dorado. The bank also made new acquisitions in 2014 that expanded its coverage into Eudora, Arkansas and Mound Bayou, Mississippi, high-poverty areas with few banking options. “We have yet again reached record profitability, and more importantly, we have created audacious goals for ourselves over the next decade, centered on affordable housing, job creation, and savings,” said CEO Darrin Williams.
Two new studies by researchers at Stanford and Harvard Universities highlight the effect of neighborhood amenities in creating disparities between white and black families. The Stanford study found that among white and black families with similar incomes, white families are much more likely to live in good neighborhoods — with high-quality schools, day-care options, parks, playgrounds and transportation options. In fact, the typical middle-income black family lives in a neighborhood with lower incomes than the typical low-income white family. The findings are particularly striking in light of findings of a recent study from Harvard researchers which found children whose families received public housing in better neighborhoods earned 31% more as adults than otherwise similar children placed into worse neighborhoods.
A new report by the Federal Reserve Bank of Boston finds that users of reloadable prepaid cards increasingly use their cards as a substitute for services provided by traditional banking accounts. Owners of reloadable prepaid cards who do not have checking accounts comprise 4.8 percent of U.S. adults. People without checking accounts were almost twice as likely to own a prepaid card as those who do have checking accounts. People with low household income were much more likely to own a prepaid card; 49 percent of people with household income below $25,000 own a prepaid card. About 33 percent of prepaid card holders without a checking account receive income to a card.
United Bank is opening a new business incubator to support the formation of new ventures in Atmore, Alabama. The bank plans to use the incubator to support the development of multiple businesses, supplying basic infrastructure and providing reduced rents to allow entrepreneurs time to grow and develop their businesses. “We are a [CDFI],” said United Bank Vice President and Business Banker Larry Strain. “And an advantage of being one is that it allows us to go outside the normal bank role and help develop the community’s business environment... The ideal is people who need office space, manufacturing on a small scale or people who might sell on the Internet and need fulfillment space. We are looking to provide a place that businesses can grow out of.”
The CDFI Fund has announced a 5 session nationwide listening tour to solicit public opinion as it crafts its new strategic framework. The tour aims to collect feedback on underserved community needs, areas for improvement and innovation and data use. The CDFI Fund encourages the participation of certified CDFIs, community development trade groups, foundations, local and state government entities, and others interested in community economic development. “The CDFI Fund views this listening tour as a unique opportunity for constructive dialogue to support the growth and success of CDFIs and the communities that they serve,” said CDFI Fund Director Annie Donovan. Register for the sessions here.