In Portland, Oregon, a movement is building to establish a public bank. After debating divestment from companies whose practices might be harmful to people or the environment, the City Council voted in April to stop investing city money in all corporations. Portland is also one of the numerous US cities that decided to stop banking with Wells Fargo. "My hope is that a public bank wout be a profit-making institution, expect the profit would be for public purposes," said David Delk, of the Portland Public Banking Alliance. "The possibilities are limited really only by our imagination because the needs are so great."
A growing number of cities across the United States are considering launching city-owned public banks. Among these are Portland, Seattle, Los Angeles, San Francisco, Oakland, Philadelphia, Santa Fe, and Washington DC. The Public Banking Institute, a national advocacy nonprofit, has been supporting these and many other campaigns. At the state level, New Jersey's governor-elect Phil Murphy, who spent 23 years at Goldman Sachs, has expressed interest in establishing a state public bank.
Commerce Bancorp, of Greenwood, MS, is acquiring all of the issued and outstanding capital stock of Tallahatchie Holding Co. of Charleston. The share exchange deal was signed on November 29, 2017, and will see Tallahatchie County Bank's single branch and $58 million in assets merge to Bank of Commerce, with five pre-existing branches and $395 million in assets.
The share exchange deal was signed Nov. 29, 2017, and will see Tallahatchie Holding merging into Commerce Bancorp, according to a regulatory filing recently obtained by S&P Global Market Intelligence.
Deal terms were not disclosed, but SNL valuations for bank and thrift targets in the Southeast between Nov. 29, 2016, and Nov. 29, 2017, averaged 159.50% of book, 169.25% of tangible book and had a median of 23.77x last-12-months earnings, on an aggregate basis.
As of Nov. 30, 2017, Bank of Commerce has $395 million in assets and five branches, while Tallahatchie County Bank has $58 million in assets and one branch. Commerce Bancorp will enter Tallahatchie County, Miss., with one branch, where it will be ranked second with a 42.02% share of approximately $122.31 million in total market deposits. The combined entity will have over $450 million in assets and a presence in five counties in North Mississippi.
Two Tallahatchie County Bank executives will take on new roles at the combined entity. President and CEO William McKellar will serve as executive vice president and Vice President Rob Rowland will serve as senior vice president and market president.
The merger is slated for completion on or before March 1, subject to the receipt of regulatory and shareholder approvals and other customary closing conditions.
Butler Snow LLP, with Jefferson Stancill as lead attorney, served as Commerce Bancorp's legal counsel in the transaction.
Amalgamated Bank in New York, which recently agreed to buy a West Coast institution, has big plans to operate in a number of major U.S. cities. Amalgamated, for its part, envisions becoming an institution with operations in other left-leaning cities such as Austin, Texas; Boston; and Chicago, said Keith Mestrich, the bank's president and CEO. Expansion could involve branches or acquisitions. Amalagamated Bank, alongside CDBA members Southern Bancorp, Sunrise Banks, and Beneficial State Bank, is a part of the Global Alliance for Banking on Values -- a group focused on reaching underserved populations.
In this article, Carl Hairston, Executive Vice President and Chief Lending Officer at City First Bank, is interviewed by the Huffington Post on corporate social responsibility and the ideal framework for deepening company impact. "98% of bank deposits in DC are placed within 24 banks, and those 24 all make more investments outside of the DC market than they do within it," Hairston explained. "Our mission is to go to whatever prudent and reasonable lengths we can in order to help those individuals access the working capital they need for viable credit opportunities."
This week, the Board of Trustees for Adams State University in Alamosa, Colorado approved the naming of the new First Southwest Bank Center for Economic Opportunity on campus. The center will open in January 2018 and will focus on community-based strategic planning and trainings to promote local business startups, thereby improving job creation, job retention, and local income levels. The University's expertise in business education and community partnerships will inform the project design and approach.
In this article, the American Banker discusses how OneUnited Bank in Boston has a plan to remain relevant while continuing to press for social justice. The nation's biggest black-owned bank has adopted a business model aimed at becoming a digitally-focused retail bank. It has scaled back its physical operations, closing a pair of branches in Los Angeles last year. It has also added thousands of ATMs that customers can access without a fee, and it plans to add Apple Pay to its menu of online services. The strategic shift comes at a critical time.
All Albina Community Bank branches are set to convert to Beneficial State Bank branches on February 1, 2018, after the two banks announced regulatory approval of their merger this week. Beneficial State, headquartered in Oakland, California, has owned a majority share of Albina in 2013, which it acquired in an effort to help stabilize the Portland-based bank after a period of industry turbulence. Three Albina members will join the Beneficial State board.
If Congress succeeds in passing regulatory relief, consumers in rural areas could soon find it easier to open accounts at banks and credit unions. Under a provision tucked into the Senate version of a regulatory relief bill that passed out of committee last week, financial institutions would be able to use a scan of a customer's driver's license or other photo identification to verify that person's identity when opening an account online. The Making Online Banking Initiation Legal and Easy, or MOBILE, Act, is intended to address a patchwork of state-level restrictions concerning how state-issued photo IDs may be copied or used.
This week, CDBA CEO Jeannine Jacokes contributed an op-ed to the American Banker urging that Congress preserve New Markets Tax Credit (NMTC) funding in 2018-2019. The article provides examples of improved healthcare access and expanded manufacturing manufacturing capacity through NMTC. “Decades of community development experience have proven that tax breaks alone are simply inadequate to spur economic activity in the most distressed places,” Jacokes wrote. “If they don’t preserve the NMTC, Congress could leave communities in need of a real boost at greater risk.”