Recent News
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
The Office of the Comptroller of the Currency (OCC) is soliciting comments on proposed rules to rescind the Community Reinvestment Act (CRA) rule issued in 2020 and replace it with rules adopted jointly by the Federal banking agencies in 1995, as amended. This action facilitates the ongoing interagency work to modernize the CRA regulatory framework and promote consistency for all insured depository institutions. The proposed rules would apply to all national banks and all federal and state savings associations. Comments must be received on or before October 29, 2021.
Rising two stories, the gray steel framework of BNA Bank's downtown Tupelo location is in its early stages. When complete, the 18,000-square-foot building will be home to the New Albany-based bank as well as a couple of other tenants. Bank officials, joined by city of Tupelo and Lee County officials and others, had a ceremonial groundbreaking Tuesday at the site on West Main Street next to the railroad tracks. "We've done well in those years," CEO Bo Collins said. "Northeast Mississippi is our golden spot on earth. We feel like it's a diamond in the rough." With some $678 million in assets... Read more
The U.S. Department of the Treasury's Community Development Financial Institutions Fund (CDFI Fund) announced $5 billion in New Markets Tax Credits today that will spur investment and economic growth in low-income urban and rural communities nationwide. A total of 100 Community Development Entities (CDEs) were awarded tax credit allocations, made through the calendar year (CY) 2020 round of the New Markets Tax Credit Program. The 7 CDBA member banks receiving awards were Central Bank of Kansas City, The Harbor Bank of Maryland, Peoples Bank, Legacy Bank & Trust, Sunrise Banks, Southern... Read more
The Consumer Financial Protection Bureau (CFPB) proposed a new rule designed to help small businesses gain access to the credit they need and deserve by increasing transparency in the lending marketplace. This rule, mandated by Congress in the Dodd-Frank Act, would, if finalized, require lenders to disclose information about their lending to small businesses, allowing community organizations, researchers, lenders, and others to better support small business and community development needs. Under the proposal, lenders would be required to report the amount and type of small business credit... Read more
Detroit-based First Independence Bank, one of only 18 Black-owned full-service banks in the country, has filed an application to open a branch in the Twin Cities. The first branch is set to open in November. Five banks in the Twin Cities—Bank of America, Bremer Bank, Huntington Bank, U.S. Bank, and Wells Fargo—are each supporting First Independence Bank's arrival with capital, research, marketing, and other services to assure its start-up and long-term success. Gov. Tim Walz welcomed the news. "In Minnesota, we know that a strong economy is an equitable economy, and the opening of First... Read more
FUND Community Institute is conducting a research project on community development strategies. We welcome all CDFIs to participate in our survey at the link provided. Please feel free to reach out with any questions and thanks in advance for your participation.
First Eagle Bank delivered a new dream bedroom to Harry, a 13-year-old Bartlett teen battling cancer. Harry was diagnosed with leukemia in February 2021 and has spent much time in and out of the hospital. The Hanover Park based bank partnered with Illinois based charity Special Spaces Chicagoland to create Harry's dream bedroom in a single day. "Children battling cancer spend endless hours in their room, it was an honor to be involved in sponsoring and creating a safe space for Harry during such a challenging time," said Gene Khalimsky, Vice President at First Eagle Bank. Khalimsky is well... Read more
Six Black banks — including four of the nation's largest — have joined a new digital platform by Citi. The action could help the banks increase lending to African American entrepreneurs. According to a news release, the banks are part of a consortium linking with Bridge built by Citi, a bank-led, digital meeting place that connects businesses seeking loans up to $10 million. The "first-of-its-kind platform is aimed to expand access to capital and financial services to Black small business owners. The platform launched by Citi matches local and regional banks with local small businesses... Read more
Black folks are turning to cryptocurrencies as a new path to wealth at a higher percentage than the general population, according to USA Today. An estimated 23 percent of Black Americans own cryptocurrencies, like bitcoin, compared to 13 percent of the general population, the newspaper reported, based on surveys by Harris Poll. Black people are not alone. The survey found that marginalized groups disproportionately own crypto. About 25 percent of the LGBTQ community and 17 percent of Hispanics are in the crypto market, compared to 11 percent of white Americans. What many in those groups... Read more
Residents and businesses in Choctaw County will soon have a new choice for their money matters. On Monday, August 16, the Bank of Kilmichael held a groundbreaking ceremony at the site of its future home in Ackerman. The bank will be a 2,400 square-foot building which will include two oversized drive-up lanes and an ATM. The bank of Kilmichael is a full-service facility specializing in loans, along with business and personal accounts. Ackerman Mayor Dale Reid said the new bank will offer a lot for local residents. "To have the Bank of Kilmichael come to Ackerman and build a building to... Read more
There was a time not long ago that community development financial institutions and minority-owned banks struggled to find the capital needed to increase financial inclusion, catalyze growth and reduce inequality in low- to moderate-income communities across the United States. Today, though, the sector has the opportunity to scale up by increasing total assets by a factor of 10 — and commensurately increase the impact in LMI markets. Everything changed last year when the Black Lives Matter movement helped local and national leaders recognize the sector as an important agent of change in... Read more