Recent News
Proposed changes to the Community Reinvestment Act could serve as a catalyst for banks to become more active in financing projects inside Opportunity Zones, according to some development experts. Opportunity Zones provide tax incentives to investors in development projects located low and moderate-income neighborhoods. Under proposed changes to the 42-year-old Community Reinvestment Act, any type of lending conducted in a low- or moderate-income census tract located within an in Opportunity Zones would qualify for CRA credit. Jeannine Jacokes, the CEO of the Community Development Bankers... Read more
A group of 6 CDFIs known as the Partners for Rural Transformation has released a paper detailing the work of CDFIs in persistent poverty areas. The report finds that those in persistent poverty areas are overwhelmingly in rural areas and people of color. Despite evidence of success by CDFIs in improving employment, housing, banking and infrastructure, philanthropic, bank and federal investment in development in persistent poverty regions continue to lag. The report details why this is as well as receommendations for advancing social and economic opportunity in distressed communities.
After nearly two years of anticipation, financial regulators unveiled a sweeping proposal Thursday to reform how they implement the Community Reinvestment Act. The plan, released at a Federal Deposit Insurance Corp. board meeting, will overhaul CRA assessment boundaries, criteria for activities earning credit in CRA exams and how banks are scored overall for their performance. If finalized, the proposal would be the first significant update to the 1977 law in over two decades. The proposal has been championed by the Office of the Comptroller of the Currency. Despite support from the FDIC,... Read more
It’s no secret that racism has been baked into the American banking system. There are few black executives in the upper echelons of most financial institutions. Leading banks have recently paid restitution to black employees for isolating them from white peers, placing them in the poorest branches and cutting them off from career opportunities. Black customers are sometimes profiled, viewed with suspicion just for entering a bank and questioned over the most basic transactions. This year, researchers for the National Bureau of Economic Research found that black mortgage borrowers were... Read more
Liberty Bank and Trust Company and its parent bank holding company (Liberty Financial Services Inc.) and Louisville Development Bancorp Inc. (the holding company for Metro Bank Inc.) announced their agreement that Louisville Development Bancorp will be acquired by Liberty Bank and Trust Company in a share exchange transaction. The cash transaction is subject to Louisville Development Bancorp shareholder and regulatory approval and is expected to close during the first quarter of 2020. Liberty Bank and Trust Company operates 16 offices in eight states: Louisiana, Mississippi, Kansas,... Read more
The Federal Reserve Bank of St. Louis, in partnership with the Federal Reserve Banks of Atlanta, Minneapolis, Richmond, San Francisco, the Board of Governors, and the Community Development Financial Institution (CDFI) Fund will co-sponsor the CDFI Symposium on May 19-20, 2020 at the St. Louis Fed. This convening of researchers, industry leaders, policymakers and funders is designed to introduce and promote the awareness of current CDFI research across various disciplines (i.e. law, public policy, business, economics, etc.). The CDFI Fund invites the submission of papers, which are due Jan... Read more
Brinshore Development, LLC, and the Housing Authority of Kansas City, Missouri (HAKC), today announced the grand opening of Pendleton ArtsBlock -- a state-of-the-art, 38-unit, mixed-income development that features loft-style studio, one and two-bedroom units along with a roof deck, workshop, fitness room, secured car and bike parking and three micro-retail bays for Charlotte Street Foundation's StartUp Residency program. Designed by Dake Wells and DRAW architecture, Pendleton ArtsBlock compliments the historic Pendleton Heights by embracing Independence Avenue and framing... Read more
From former Comptroller of the Currency Gene Ludwig: financial institutions are eager to serve customers with middle-class incomes. But in other parts of the country — places where a greater proportion of local residents live below the poverty line — banks are few and far between. For much of the 20th century, policymakers struggled to identify effective ways to address this inequity. But 25 years ago, Washington took a key step in establishing a federal fund to support so-called Community Development Financial Institutions that serve communities traditional banks often leave behind. Now,... Read more
The West 30's Redemption Company was organized only three years ago, but it's already made a lasting impression on Covington. So when Bryan Burns, the group's founder, said a recent grant to the organization is the "single most impactful thing to ever happen to us," it's reason to take notice. The West 30's Redemption Company announced on Nov. 22 it received a $120,000 grant from The First, a National Banking Association, as well as the Federal Home Loan Bank of Dallas. The event was marked by a ceremonial ribbon cutting held Nov. 22 at the Northshore Community Foundation offices in... Read more
In the so-called 'new age' of banking, the shift in attention to tech-focused content is a clear indication that bankers are taking technology more seriously than they ever have. Count long-time Chief Executive Officer William A. “Bill” Ray in that number. “To keep up with technology in banking today, you have to expose yourself to what’s out there and study it because there is so much to choose from,” said Ray, who has served as the bank’s top officer since 1986. “Then, you have to invest in what you believe are the best technologies for your customers, employees and your... Read more
On Wednesday, November 20th, the Clinton Foundation hosted the "Economic Inclusion and Growth: The Way Forward" conference at the Clinton Presidential Center in Little Rock, Arkansas to celebrate the 25th anniversary of the CDFI Fund and to honor the leaders of the CDFI industry. At the conference, Former President Bill Clinton recognized CDBA CEO Jeannine Jacokes by discussing her role as the leader of the trade association for CDFI banks, as well as a leader in the loan fund space as the CEO of Partners for the Common Good (PCG). Specifically, he lauded the recent work of CDBA and PCG on... Read more
On Wednesday, November 20th, the Clinton Foundation hosted the "Economic Inclusion and Growth: The Way Forward" conference at the Clinton Presidential Center in Little Rock, Arkansas to celebrate the 25th anniversary of the CDFI Fund and to honor the leaders of the CDFI industry. At the conference, Former President Bill Clinton recognized CDBA CEO Jeannine Jacokes by discussing her role as the leader of the trade association for CDFI banks, as well as a leader in the loan fund space as the CEO of Partners for the Common Good (PCG). Specifically, he lauded the recent work of CDBA and... Read more
The US Department of Treasury's Community Development Financial Institutions (CDFI) Fund today awarded $31.37 million to 43 community development banks and bank holding companies through its CDFI Program and Native American CDFI Assistance (NACA) Program Awards. With the awards, these banks will provide much-needed capital investments to small businesses and other critical community development projects such as affordable housing, neighborhood revitalization, and expansion into new geographic markets. The CDFI Program awards include Financial Assistance (FA), Technical Assistance (TA),... Read more
The US Department of Treasury's Community Development Financial Institutions (CDFI) Fund today awarded $31.37 million to 43 community development banks and bank holding companies through its CDFI Program and Native American CDFI Assistance (NACA) Program Awards. With the awards, these banks will provide much-needed capital investments to small businesses and other critical community development projects such as affordable housing, neighborhood revitalization, and expansion into new geographic markets.
Expanding its presence into New Jersey and New York, Washington, D.C.-based Industrial Bank has acquired City National Bank of New Jersey, based in Newark. The deal means Industrial Bank will pick up two City National branches in Newark and one in Harlem, New York. The transaction came after City National Bank failed and was shut down on Nov. 1 by the Office of the Comptroller of the Currency (OCC). The regulator appointed the Federal Deposit Insurance Corp. as... Read more
The StoryBank Project is a CDBA initiative to capture success stories of our member banks. These stories show how underserved communities benefit directly from mission-based banking and financial services. Our latest video highlights Citizens National Bank in Meridian, Mississippi. One client, Weidmann's Restaurant, will celebrate its 150th anniversary next year, making it the oldest continuously running restaurant in Mississippi. Another client, Adrian Cross, was able to buy a home for the first time.
In the 1980s, Michael Milken embodied Wall Street greed. A swashbuckling financier, he was charged with playing a central role in a vast insider-trading scheme and was sent to prison for violating federal securities and tax laws. He was an inspiration for the Gordon Gekko character in the film "Wall Street." Mr. Milken has spent the intervening decades trying to rehabilitate his reputation through an influential nonprofit think tank, the Milken Institute, devoted to initiatives “that advance prosperity.” These days, the Milken Institute is a leading proponent of a ... Read more
After overcoming numerous obstacles, and getting knocked to the ground earlier this decade, Native American Bank is solidly on its feet again and moving in a new direction. "It's all about perseverance, about the will to succeed," said chairman Kent Paul, at an opening ceremony for the bank's new location at 201 N. Broadway on Thursday. The Denver-based bank has left behind a 24th-floor office in a downtown highrise it leased for a building it owns on Broadway, a location that is street-level and more accessible. It will join a long-running retail branch the bank operates... Read more
Please join us as we examine the process that the FDIC uses to market failed bank franchises to other eligible insured banks. While the FDIC does not expect significant failure activity in the near future, it is important to periodically offer information and technical assistance regarding the process by which eligible CDFI banks may bid on failing institutions so you can better understand the process, the benefits for your institutions, and can explore whether you might be interested in future opportunities. The FDIC recently updated its franchise marketing documents and this is an... Read more
Chuck Snyder came to National Cooperative Bank in 1983 to serve as its chief financial officer. Today, it's a $2.6 billion dollar bank, holding $2.2 billion in deposits, and a portfolio of $2 billion in loans exclusively to housing co-ops, consumer co-ops, producer co-ops and other cooperatively-owned entities across the country. It's a bank, not a credit union, because its members are exclusively co-ops themselves, not individuals. It's survived three recessions, two major financial crises, and dramatic industry consolidation — in 1983, there were more than 14,000... Read more