Recent News
During the long government shutdown, Southern Bancorp announced that it would provide assistance to affected customers by waiving overdraft fees and providing immediate access to a no fee, no credit check, zero interest loan of up to $1,500. Emergency loans were stated to be payable within six months or upon the resumption of government operations. "Southern Bancorp stands ready to assist our customers in this stressful time," said Darrin Williams, Southern Bancorp CEO.
Many impact oriented banks are now looking to restrict their investments to only environmentally sustainable companies. This includes Amalgamated Bank's refusal to invest in companies that harm the planet, Sunrise Banks seeking high financial and environmental returns, and Beneficial State Bank's distribution of profits to environmentally conscious community projects. Supporting banks like these are a great way the average consumer can play their part.
During the long government shutdown, small business owners in Minnesota and nation-wide faced difficulties getting approval for new SBA-backed loans. Chris Albrecht, Senior Vice President and Director of SBA lending for Sunrise Banks, explained that the shutdown prevented them from getting government confirmation, despite businesses desperately needing the capital. The government has since re-opened, but now catching up may take some time. "No one is quite sure what the backlog could be," said Albrecht.
Join leaders in banking, philanthropy, impact investing, and community development to engage in action-oriented dialogue around addressing the financial service gaps that limit economic mobility for many rural people and places. Speakers include Chairman of the Federal Reserve Board of Governors Jerome H. Powell, the Emerson Collective's Anne Marie Burgoyne, and many more. Register here by February 1st.
In Washington, D.C., communities east of the Anacostia River haven't benefited from the same economic development as the rest of the city. Additionally, the past decade has seen a steady decline in brick and mortar banks across the country. All this has led to a diminishing of access to financial services for low-income working families and minorities, obstacles to small business lending, and a stifling of capital availability in areas that need it most. Now JPMorgan Chase, along with their expansion into the city, are looking to meet these needs in a variety of ways. Read more here.
This week's CDBA Storybank video highlights First Eagle Bank in Chicago, Illinois. Its featured client, MDC Economic Development Corporation, specializes in public housing renovation in the city's most underserved areas. MDC is part of the Do For Self Community Development Corporation, an initiative to train, employ, and develop former gang members, ex-offenders, and other socially disenfranchised members of the community so they can transform the communities they live in while earning a legitimate income. Watch the video here.
Last year, Congress introduced the Opportunity Zones program for economic development in distressed areas. These zones represent low income rural and urban areas that can benefit from private economic revitalization. For investors, the short term benefit of an Opportunity Zone is primarily the deferral of capital gains taxes, if the investment in the zone is maintained. Virginia Community Capital says it is cautious but optimistic of the positive effects of this program for areas like Franklin County.
Citizens National Bank's John C. McRae has been honored in this year's Bank Investment Consultant's Top 100 Bank Advisors list. Bank Investment Consultant is a leading publication in the industry and has named McRae in this list three unique times. McRae serves on the bank's Wealth Management Division, is a Branch Manager, and also a Senior Financial Advisor. "I am still humbled by this recognition," says McRae. "I look forward to continuing to serve our clients in the accumulation, preservation and transfer of wealth."
As consumers migrate to banking apps, it is tempting for lenders to focus solely on improving that experience. But new data suggests that consumers aren't abandoning other platforms completely. Smartphone apps have become the most popular way for consumers to use mobile banking, but half of those customers also access mobile banking through a browser on their phones, according to Javelin Strategy & Research. "We can no longer afford to ignore the online portal in deference to the app," said Emmett Higdon, director of digital banking at Javelin Strategy & Research. Read more here.... Read more
Policymakers have long struggled to modernize the decades-old Community Reinvestment Act. But translating that momentum into an actual reform plan in 2019 will not be easy. Sticking points range from how to define a community amid rapid change in delivery models, to creating a single uniform CRA metric for banks to follow. However, Comptroller of the Currency Joseph Otting remains hopeful. "Everybody recognizes this is something that collectively we need to fix," he said. "Everybody is prepared to roll up our sleeves and sit down and talk."
The Community Development Bankers Association (CDBA), the national trade association of Community Development Financial Institutions and mission focused banks, is seeking a high energy and dynamic candidate for the position of Public Policy Director. The ideal candidate will have 3-5 years of public policy/advocacy experience and a passion for community development. The position reports to our Chief Executive Officer, but works with all members of the team. This is a full time 40 hour per week position located at PCG's offices in Washington, D.C. Click here to apply.
Opportunity Zones, the brainchild of Silicon Valley's Sean Parker, provide investors massive tax advantages for investing in "distressed" areas. However, while the program's intent is to help those living in the zones, a huge influx of capital could also lead to these populations' displacement. Given that some investors may be more interested in the tax breaks than social impact, it may be that the financiers won't do much to prevent this. So where do things currently stand for all parties involved?
The DC Office of Cable Television, Film, Music, and Entertainment (OCTFME) has named Industrial Bank's U-Street location the city's Location of the Month. The designation promotes exemplary DC locales as prime settings for movie and television productions looking for filming locations. The bank recently underwent major renovations that helped it win this distinction, adds Melanee Woodard, Assistant Vice President of Industrial Bank, ""Now you can come in, sit down, have a complimentary coffee, talk with our team and experience all that comes with our service." Read more... Read more
As the successful re-entry of previously incarcerated citizens raises national focus, Industrial Bank seeks to become a leader in the movement. Recognizing the need for financial knowledge, at the beginning of 2018, Industrial Bank began financial literacy training within the walls of a DC Jail. By bringing awareness and financial knowledge to these communities, Industrial Bank hopes to support economic growth in their communities. "Industrial Bank's Financial Workshop ...was a much-needed resource to help our population build a pathway to the desired future that our young... Read more
This week, small banks serving America's impoverished communities were recognized by the U.S. Department of the Treasury's Community Development Financial Institutions (CDFI) Fund with $25 million in Bank Enterprise Awards (BEA Awards) to a record-breaking 119 banks and thrifts headquartered in 24 states and the District of Columbia. Of the awardees, 61 are members of the Community Development Bankers Association (CDBA), who received a total of $13.8 million in awards (55 percent of the total award dollars).
Last month, Citizens National Bank received the 2018 Community Impact Award at the 22nd annual CRA & Fair Lending Colloquium in Hollywood, Fla. The award specifically recognized the bank's Power of Local Community Development Program, which helps the unbanked establish credit, improve credit scores, and secure affordable home loans. "Our vision is to assist our customers in creating a personal financial plan that enables them to achieve their dreams," said J. Scott Sills, Chief Marketing Officer at Citizens National Bank.
Rural businesses, especially startups and those operating on a shoestring, have long found it difficult to qualify for traditional bank loans. Now Hello Bello, a new app from 1st Southwest Bank CEO Kent Curtis, seeks to address that. The app provides a central database that combines numerous sources of financing open to an underserved business. "Hello Bello serves to mitigate risk for banks and open the complete capital stack for small businesses," Curtis said. "This can be transformational in the way capital is deployed in rural communities."
Annie Donovan has officially announced her departure from the CDFI Fund. During her five years as director, Donovan oversaw tremendous growth in the agency's funding and programming and the largest ever CDFI Program award round. Donovan leaves the Fund in good hands, however. Her replacement, Jodie Harris, joins the Fund from the Department of Treasury where she serves as Director of Small Business, Community Development, and Housing Policy. Harris previously ran the BEA program and served as an adviser to former CDFI Fund Director Donna Gambrell.
The Cato Institute's Diego Zuluaga recently suggested that the best approach to the Community Reinvestment Act would be its elimination. Nikitra Bailey offers her rebuttal in American Banker. The CRA was initially created in response to redlining, a practice in which banks refused to lend to low-to-moderate income neighborhoods, including communities of color. Thus, Nikitra argues, CRA has played an integral role in fighting this by expanding investment and access to credit for communities with a history of underservice by banks. Read her full argument here.
Last month, FM Bank held a groundbreaking ceremony for a new location that will open next year. The 2,816 square-foot full-service banking facility will have a three-lane drive thru, a drive-up ATM, and a night deposit box. The branch will be located at the intersection of Farmington Road and County Road 166. "Our banks take pride in the communities where we are located," said President and CEO John Haynes. "Making our communities the best they can be is one of our daily goals as a community bank."