Recent News
The relative rarity of banks in nonwhite neighborhoods is exacerbating the racial wealth gap by leaving African Americans more reliant on expensive financial services such as payday lending institutions, according to Reuters, citing research by McKinsey & Co. The study found that majority-white counties have an average of 41 financial institutions per 100,000 people, compared to 27 in nonwhite majority neighborhoods. It also found banks in majority-black neighborhoods tend to require a higher minimum account balance, with an average minimum of $871 in black neighborhoods compared to $... Read more
Everyone should consider impact investing, says Lori Chatman, SVP at Enterprise Community Investment. "Increasingly, investors are demanding positive social outcomes without sacrificing return or assuming undue risks," says Chatman. Being intentional about desired non-financial outcomes is core to impact investing or values-based investing. For nearly 40 years, Community Development Financial Institutions (CDFIs) have been making investments that impact people’s lives, communities, and the planet. According to Chatman, they are a prime vehicle for investors and... Read more
U.S. Congressman Bennie Thompson (D-MS-2) joined Planters Bank and Trust Company and the Federal Home Loan Bank of Dallas (FHLB Dallas) representatives last Thursday to attend a walking tour of the Reserves at Gray Park. The Reserves at Gray Park is a mixed use, mixed income, in-fill housing development built on eight acres of land donated by the city to Greater Greenville Housing and Revitalization Association (GGHRA) in November 2014, with 42 apartment units for families at or below 80 percent of the area median income. Hailed as the Delta’s first sustainable, healthy community,... Read more
Investar Holding in Baton Rouge, La., has agreed to buy Bank of York in Alabama. The $2 billion-asset Investar said in a press release Tuesday that it will pay $15 million in cash for the $99.5 million-asset Bank of York. The deal is expected to close in the fourth quarter. Bank of York, which has $82.3 million in deposits and $46 million in loans, will be allowed to make $1 million in cash distributions to its shareholders prior to closing. The bank has branches in York and Livington, along with a loan production office in Tuscaloosa. The move marks Investar's entry into Alabama.
The Financial Accounting Standards Board's new reserve methodology is unlikely to achieve its goal of helping the U.S. banking industry build reserves ahead of the next downturn thanks to the proposed delay in implementation for the vast majority of institutions. After years of debate, FASB created the current expected credit loss model, or CECL, with an eye to speed up the recognition of problems by requiring institutions to reserve for estimated losses at origination as opposed to building allowances when a loss is probable. Many bankers expect CECL to boost reserves at adoption, but we... Read more
The history of America's earliest African American banks is something that is not widely known. These banks served as an important source of credit while also offering innumerable other benefits to the consumers and communities that they served. The latest volume of the Kansas City Fed's historical book series details the stories and accomplishments of these bankers.
Earline Williams, 76, said she was gifted the best Christmas present when she received a phone call on the first of the year from Mississippi-based BankPlus, telling her she had been approved to receive funds from the Special Needs Assistance Program (SNAP). SNAP grants are awarded through members like BankPlus to provide grant funds for rehabilitation and modification of owner-occupied housing of eligible, special-needs individuals. Since SNAP's inception in 2009, more than $15.1 million has been awarded in grants through FHLB Dallas member institutions to assist more than 3,000... Read more
You may have heard that Amazon has been in talks with JPMorgan Chase about the possibility of an Amazon-branded checking account. No doubt, Amazon is looking to streamline their customer relationship with a built-in payment system, so customers won't have to leave the site or slow down to enter payment details. And Amazon can add one more industry to its already massive reach.
Tucked into the 2017 law intended to cut Americans' taxes was a program aimed at helping communities struggling with high unemployment and run-down housing. Known as "opportunity zones", supporters on both sides of the aisle say they are creating jobs and making a difference in places that might otherwise be left behind. Critics say residents in those communities actually may be harmed because wealthy investors getting tax breaks could enjoy more of a benefit than local residents. However, both supporters and critics agree that more information is needed on the actual impact of... Read more
A Q&A with Steven Schnall, the CEO of Quontic. Quontic is a community development financial institution that specializes in residential mortgages and has its main branch in the Astoria section of New York; it has branches in three other cities, too. Schnall's vision for the bank is ambitious but clear: Move its corporate office to a higher-profile location in Manhattan — and make it a digital bank.
The Telluride Foundation is excited to announce the launch of the Telluride Regional Loan Fund, a $2 million operating working capital loan fund designed to support rural business startup, growth and job creation and retention in southwest Colorado. The Loan Fund is a partnership with ZOMALAB and First Southwest Community Fund. The Telluride Loan Fund is a working capital fund designed to help companies with their day-to-day expenses. The purpose of the fund is to help uniquely rural and un-bankable businesses bridge the capital gap until they can become commercially bankable.... Read more
Bay Bank is now certified as a Community Development Financial Institution (CDFI). The U.S. Department of the Treasury's Community Development Financial Institutions Fund (CDFI Fund) follows a comprehensive process to certify financing entities. This prestigious designation confirms that Bay Bank is a mission driven bank that promotes community development and its primary target market is underserved communities including Native Americans and small businesses.
In Itta Benna, MS, banks have disappeared completely. The recent designation of Itta Benna as a banking desert follows a nationwide trend of bank branch closures. 3800 branches have shuttered since 2017, overwhelmingly in nonwhite areas.
Longtime Augusta banker Philip R. Wahl has been named president of Aiken-based Security Federal Bank, replacing Richard T. Harmon, who is retiring effective Aug. 1. Wahl, who is currently the bank’s Augusta market president, will remain based in Augusta and will report to Security Federal CEO J. Chris Verenes. Wahl joined Security Federal in 2017 after 31 years working in various capacities with local and national banks in the Augusta market. Wahl said he believes the appointment is a sign of the bank’s growing interest in the Augusta side of the metro area market.
Federal Deposit Insurance Chairman Jelena McWilliams is nearly halfway through a 50-state listening tour. As a result of meetings with local bankers, state supervisors, and consumer groups, Chariman McWilliams has directed staff to increase efforts to decrease regulations, promote community development banking, preserve MDIs, modernize the CRA, and encourage banks to serve low- and moderate-income househoulds.
When they have a complaint about a negligent or belligerent landlord, many New Yorkers have begun sidestepping their landlords for the bankers that finance the buildings. Many banks have given loans to landlords explicitly designed to activate loopholes that remove units from rent-regulated status. Now residents, led by attorneys and advocates at local non-profits, are convincing banks to make their lending practices more fair and transparent.
The StoryBank Project is a CDBA initiative to capture success stories of various impactful loans from our member banks through the eyes of their customers. These important stories show how underserved communities benefit directly from mission-based banking and financial services. Our latest video highlights Carver State Bank in Savannah, Georgia. The story follows two of the bank's lending projects: Renee's Kids World, a daycare center offering wraparound care to children of working parents, and the Old Savannah City Mission, a nonprofit shelter for homeless and formerly... Read more
Bob Klamp, CEO of GN Bank, has been elected to serve on the Office of the Comptroller of the Currency's (OCC) Minority Depository Institutions Advisory Committee (MDIAC). The committee provides an invaluable perspective on the business environment affecting minority depository institutions, their customers, and the communities they serve. The committee also provides advice regarding the condition of minority depository institutions, potential regulatory changes or steps that may promote their health and viability. The committee includes officers and directors of minority... Read more
Community banks tend to have an aversion to hiring professionals from outside the banking industry, executive recruiters say. The reluctance is understandable, as numerous banking regulations require personnel who understand policies, procedures, risk assessments and vendor management. Furthermore, hiring IT veterans uncommitted to the banking industry can get expensive, as doing so will have employers competing with higher-paying offers from other tech employers. However, if small banks wish to stay competitive, particularly when it comes to their technology, these are issues that will... Read more
The Mississippi Delta faces a myriad of financial struggles that will need innovative solutions to resolve. Southern Bancorp is one of the forces doing important work to meet that need. When Bubba O'Keefe, the official tourism director of the small town of Clarksdale, wanted to acquire a local theater, Southern Bancorp stepped in to finance it. And then when the theater's roof fell through and required servicing, Southern's CEO Darren Williams stood by O'Keefe's side. With ventures like this, the financing of a new local hotel, and financial literacy classes, Southern... Read more