Recent News
If it seems like you're hearing a lot more about environmental, social and governance (ESG) issues in banking these days, it's not your imagination—the topic has rapidly gained prominence across the industry in 2021 and will likely become even more important in years to come. The growing focus on climate risk has spurred banks (and their regulators) to more closely examine their environmental exposures—how rising sea levels and changing weather patterns might affect their existing loan portfolios. They're also reconsidering their support of companies and projects that generate substantial... Read more
The number of Black banks in the United States has been steadily slipping for 20 years. But the organizers of a proposed new bank in Columbus, Ohio, which features a predominantly African American board of directors, just might change the narrative. If the charter application is approved by state and federal regulators — and the organizers are able to raise at least $20 million in capital — Adelphi Bank would be the only Black bank in Ohio and one of just 21 Black-owned or Black-led banks across the country. Adelphi is also in line to be the first bank owned or led by African Americans to... Read more
The consumer lender Oportun has agreed to buy the challenger bank Digit in a deal that the buyer says will accelerateits plan to offer a fuller suite of banking services. Oportun, a Silicon Valley lender that offers personal loans and credit cards to consumers, announced the nearly $213million cash-and-stock deal on Tuesday. Less than six weeks earlier, Oportun said that it was withdrawing itsapplication for a bank charter from the Offi ce of the Comptroller of the Currency. The proposed acquisition would allow Oportun to offer Digit's services, including mobile banking, automated... Read more
In the wake of George Floyd's murder, JPMorgan Chase & Co., Citigroup Inc., Wells Fargo & Co. and other large U.S. lenders began investing hundreds of millions of dollars in Black-owned banks -- an attempt to help meet the needs of underserved borrowers as systemic racism became part of the national conversation. More than a year later, executives at the Black-owned banks say the cash infusions have allowed them to increase lending and expand their staffs, giving support to the African-American community amid pandemic-era uncertainty. Still, while the funding has been useful, the... Read more
The Biden administration has already picked financial regulatory nominees who are polar opposites from their Trump-appointed predecessors. But the White House's choice to run the Office of the Comptroller of the Currency could be its most left-leaning selection so far. Cornell University law professor Saule Omarova, who was named as the OCC nominee Thursday, is a noted cryptocurrency skeptic, proposed moving customer deposits to the balance sheet of the Federal Reserve, and even questioned a recent acquisition spree by JPMorgan Chase. "Omarova is likely to be Biden's most polarizing pick... Read more
As part of its ongoing efforts to help customers better navigate their financial lives, Citizens announced several initiatives designed to make banking more worry-free, transparent and accessible, including a new way to avoid overdraft fees and a commitment to helping ensure that underserved communities have access to banking services. The bank introduced Citizens Peace Of Mind™, a new deposit feature providing customers with the ability to avoid the expense of unexpected overdraft fees. This feature -- which was added to all Citizens Checking accounts on Oct. 1 – allows customers who... Read more
Renegade Capital is the activist's podcast for finance and investments. The hosts, Leah Fremouw of Virginia Community Capital, Andrea Longton of OFN, and Ebony Perkins of Self-Help Credit Union, interview thought leaders who go into the ring every day to fight against the racist, sexist, and exclusive norms established by traditional financial and capital systems. Listeners walk away inspired by the guests and armed with actionable tips and tools to use money to create the world in which they want to live. The first episode was released on Tuesday, featuring special guest Cat Berman of... Read more
It's a far cry from the postal banking system that progressives favor and bankers dislike, but the U.S. Postal Service's entry into the check-cashing space is still making a big splash. Loud responses Monday from both boosters and critics reflected a widespread perception that the pilot program could be a first step toward a wider implementation of postal banking. The modest scope of the program contrasted with the size of the reaction it generated. The recently launched program is only operating in four offices — in Washington, D.C., Baltimore, Falls Church, Virginia and the Bronx, New... Read more
Financial giant JPMorgan Chase has increased its direct equity investments in Minority Depository Institutions and Community Development Financial Institutions to $100 million and has added 10 new institutions as recipients. JPMorgan Chase has announced investments in the following Black- and Latino- led MDIs and CDFIs: Arkadelphia, Arkansas-based Southern Bancorp; Savannah, Georgia-based Carver State Bank; Atlanta-based Citizens Trust Bank; Baltimore-based The Harbor Bank of Maryland; Detroit-based First Independence Bank; Columbia, South Carolina-based Optus Bank; McAllen, Texas-based... Read more
Five witnesses testified to the U.S. House Committee on Financial Services' Subcommittee on on Consumer Protection and Financial Institutions in a hearing entitled "The Future of Banking: How Consolidation, Nonbank Competition, and Technology are Reshaping the Banking System." Among the witnesses was Desiree Jackson, Assistant Vice President for Treasury Management at Beneficial State Bank. Click "read more" to read the committee memorandum and watch a recording of the hearing.
BancPlus Corporation, parent of Ridgeland, Mississippi-based BankPlus, said Wednesday that it is buying New Orleans-based First Trust Corporation, which owns First Bank and Trust. The terms of the deal were not disclosed but the banks said in a news release that First Trust Corporation shareholders will receive a combination of shares of BancPlus' common stock and cash. The takeover will have a total of 93 branches, combining BancPlus' 79 branches with First Bank and Trust's 14, across Louisiana, Mississippi, Alabama, and the Florida Panhandle. Assets will total $6.4 billion: $5.1 billion... Read more
The release of 2020 Census population data provided much-anticipated insight into the demographic trends reshaping our nation, but it also unleashed a wave of predictable headlines touting the demise of "shrinking rural America." The familiar narrative of "two Americas"—one diverse, metropolitan, and successful and one white, rural, and declining—cropped up once more, often explicitly equating "rural" with "white" or, even more simplistically, with white Trump voters. While this narrative provides an easy way to think about America in binary terms, it obscures the far more complicated... Read more
The Economic Mobility Corps (EMC) is a joint initiative of the Community Development Financial Institutions Fund (CDFI Fund) and AmeriCorps that places full-time national service members in Certified Community Development Financial Institutions (CDFIs) to enhance their capacity to provide financial literacy, financial planning, budgeting, saving, and other financial counseling activities. Economic Mobility Corps members placed in Certified CDFIs will receive training on the principles of financial counseling and financial literacy and assist CDFIs in promoting access to capital and credit... Read more
Amalgamated Financial in New York is acquiring Amalgamated Investments Co., the parent of Amalgamated Bank of Chicago, for $98.1 million in cash. While their names and missions are similar, the two companies are not affiliated. Both companies emphasize environmental, social and governance missions, serving nonprofit organizations and unions. Together, the companies said they would also serve political organizations and philanthropies that support environmental sustainability and social enterprises. "This acquisition aligns with our disciplined strategy of pursuing accretive opportunities... Read more
Virginia Community Capital (VCC) has announced the hiring of Amir Kirkwood, formerly of Opportunity Finance Network (OFN), as its new president and CEO. In January, founding executive director Jane Henderson announced her plans to retire after four decades in the banking industry. VCC, a community development financial institution (CDFI), was born out of a $15 million investment and a vision for an institution that served Virginia's economically excluded communities. The organization has driven $1.8 billion in total impact in the Commonwealth since its launch in 2006. This includes nearly... Read more
Today, the FDIC released new information about the Mission-Driven Bank Fund.The goal of the Fund is to provide private investors (corporations, financial institutions and philanthropic organizations) with an opportunity to support CDFI and MDI banks. These mission-driven banks will be invited to make pitches to the Fund for potential investments in a wide variety of asset classes including equity, loan participations, loss share agreements, CDs, term debt, and advisory services. The Fund currently has commitments of $120 million and growing. The anchor investors, Microsoft and... Read more
Banks and credit unions oppose federal proposals to let the Small Business Administration make some 7(a) loans directly in addition to its traditional role of guaranteeing credits extended by private lenders. The Biden administration's $3.5 trillion spending package would give the SBA nearly $4.5 billion to make 7(a) loans of $150,000 or less directly to borrowers. The cap for direct loans to manufacturers would be $1 million. Legislation approved by the House Small Business Committee last week included an option for the SBA to originate small 7(a) loans "through partnerships with third... Read more
CDBA CEO Jeannine Jacokes was featured on the latest episode of "NextGen Banker," a pocast hosted by Sunrise Banks CEO David Reiling. The podcast approaches the unprecedented opportunities in the banking industry over the last decade and how bankers can be technologically savyy. On the most recent episode, Ms. Jacokes discusses community banking as well as what she’s learned during her time in government and how bankers can create partnerships with legislators.
"My mom always told me to be careful what you pray for," says Damon Jenkins, as he steps into banking history as leader for Minnesota's first Black-owned and Black-controlled full service bank. Jenkins has joined Detroit's First Independence Bank to head the financial institution's Minnesota expansion this fall. The banking venture is in part a response to the tragic murder of George Floyd in Minneapolis last year. And because the incident took place in the neighborhood he grew up in, Jenkins says the tragedy hit him hard. Jenkins’ prayers and preparation landed him his new role as First... Read more
The Masonic Theatre in Clifton Forge, Va., — a small town in the Alleghany Highlands — opened in 1906. Over the years, the three-story architectural masterpiece has hosted vaudeville shows, movies, and live performances by stars such as Gene Autry, the Drifters and the Count Basie Orchestra. In 2009, six years after the Masonic had been donated to the town of Clifton Forge, a group of residents set out to renovate the deteriorating landmark. Their dedication bore fruit in 2016, when the Masonic reopened as a stunning performing arts venue, movie theater and educational facility. I'm proud... Read more