Recent News
Many Americans, especially younger generations, are carrying less cash every day. With the growing availability of alternatives such as mobile phone payments, are we witnessing the death of cash? Ultimately, for many, it boils down to convenience. Consumers will use the method that is easiest and saves time. Sunrise Banks' CEO offers his insights on the matter.
The DC area has striking levels of economic inequality. Community development works to change this, but how equitably are these resources distributed? This new tool shows how well counties are accessing federal funds. The data shows that DC does well in accessing community development financing, though there is comparatively small levels of small business investment.
Bankers have traditionally been reluctant to participate in the Small Business Investment Companies (SBIC) program. However now, as the pace of borrowing by SBICs under the Small Business Administration's (SBA) debenture program holds steady for the first time in three years, more banks are getting interested in the program for perceived benefits as well as potential positive impact.
The application deadline for the 2018 ABA Foundation Community Commitment Awards has been extended to Friday, July 13. The awards recognize and promote the many ways banks contribute to economic growth, community development and overall well-being. Open to banks of all asset sizes and charters, the awards celebrate financial institutions that have demonstrated noteworthy corporate social responsibility. Bankers can submit applications in one or all seven categories: affordable housing, community and economic development, financial education, protecting older Americans, volunteerism, and... Read more
Little Rock, Arkansas based Southern Bancorp has made a successful business model out of serving places larger banks ignore. Bill Wright, a Little Rock native who leads the Bank's western region, proudly rattles off the names of business owners the bank has supported. Recently, as the bank seeks to expand into further markets in the area, it received $7.5 million from SFRE, a group of global investors interested in banks with a social mission.
Southern Bancorp has completed several acquisitions since the financial crisis, but the biggest bank it bought had just $211 million in assets. Those acquisitions have largely focused on rural markets in Arkansas and Mississippi. CEO Darrin Williams sees no reason to alter that strategy after bringing in almost $18 million in fresh capital. Southern plans to keep scooping up banks that target largely underserved populations. “We want to be profitable but with a purpose,” Williams said. “We talk about riding a bicycle. The front wheel is our mission, while the back wheel pushes... Read more
The share of children living in poverty in the U.S. is currently higher than it was before the Great Recession. According to estimates from the U.S. Census Bureau's American Community Survey, nearly 20 percent of children were living in poverty in 2016, compared with 18 percent in 2007. Child poverty rates continue to be highest in the South and Southwest, particularly in counties with concentrations of Native Americans and along the Mississippi Delta.
The CDFI Fund announced $22.8 million in 2017 Bank Enterprise Award grants to mission-focused banks for their service in high poverty communities. These awards were at risk of being rescinded by the Trump Administration’s proposed $15 billion cutbacks package. The rescission failed to pass by its June 22, 2018 deadline, and the 2017 BEA Awards were subsequently unfrozen and released.
48-year old Kiko Davis is the majority stockholder of Detroit-based First Independence Bank, one of the top 10 largest black-owned banks in the United States. This makes her the only African American woman in the country who owns a bank. Kiko says that taking risks is very important to become successful. “Without risk,” she says. “there can be no reward… Your mistakes will bring invaluable knowledge that will ultimately become your strategy for winning.”
A growing movement has community foundations investing in local financial institutions and development projects, empowering entrepreneurship in the underserved communities that need it most. Organizations like Self-Help or Reinvestment Fund are a part of this effort and began making headway in 1994 with the creation of the CDFI Fund. This spurred much growth in the CDFI field, with over a thousand existing in the country today.
Dominik Mjartan, President and CEO of South Carolina Community Bank. authored an op-ed in American Banker entitled "Dear Congress: Don't Gut Funding for CDFIs." "Bankers and policymakers understand that getting $12 of impact for every one dollar invested is a good return on investment," he wrote. "It’s even better if those dollars result in jobs, housing and wealth-building opportunities in underserved areas."
Fair Financial, a digital platform for the unbanked, recently launched in a pilot program to serve about 500 Twin Cities customers over the next 18 months. Anne Clark, an executive whose nonprofit is overseeing the rollout of Fair Financial, is partnering with several other organizations in the area, including Sunrise Banks. They have estalished a goal of providing 5,000 low-income customers across the country with Fair deposit accounts and small-dollar loans by 2020. What sets Fair apart in the industry is what Clark and others describe as a “bundled” suite of products for the... Read more
Sunrise Banks and Twin Cities-based nonprofit Prepare + Prosper have announced a multiyear plan to provide thousands of low-income families with an alternative to payday lenders and check-cashing operators. The Financial Access in Reach (FAIR) plan is aimed at providing "financially underserved" people with access to a checking, savings and small-loan program at a modest cost. "Collaborating with Prepare + Prosper on the FAIR Initiative is giving people the tools they need to improve their financial wellness," Sunrise CEO David Reiling said in a statement. "We're setting an example... Read more
Thanks to a $224,000 Affordable Housing Program (AHP) grant from Planters Bank & Trust and FHLB Dallas, a 42-unit apartment community in Greenville, MS is now open. The grant was awarded to the Greater Greenville Housing and Revitalization Association for the construction of the apartment community. The grant provided gap financing for the affordable housing development. The apartment complex, The Reserves of Gray Park, is Greenville's lagest single-unit housing development in over 30 years and serves individuals and families at or below 80% average median income, with 62.5% of the... Read more
This article examines the rising support for public banks that would work directly with community banks and credit unions. Funding infrastructure projects through public banks would bring down costs by reducing interest and debt service payments made toward private institutions.In New York City, for example, dozens of residents and community organizers in early June gathered in front of the New York Stock Exchange to launch the Public Bank NYC Coalition, a group calling for the creation of a New York City-owned bank... Read more
Approval rates for small-business loan applications ticked up at both small and large banks in May. Banks with at least $10 billion of assets approved almost 26% of small-business loans last month, according to the Biz2Credit Small Business Lending Index. That is almost triple the rate in 2011 and up almost two percentage points from the approval rate a year earlier. The smaller institutions, with less than $10 billion of assets, approved 49.4% of applications, which was up from 48.8% a year ago.
The House Appropriations Committee has approved a FY19 Financial Services spending bill that would provide $216 million to the Community Development Financial Institutions program—a $25 million boost from the amount they proposed earlier this month. The Appropriations Committee approved the bill, 28-20. The $216 million is far short of the $250 million that the CDFI Fund received this year, but it exceeds the Trump Administration's request by some $202 million. The $25 million boost was proposed by Rep. Steven Palazzo (R-MS) who made it clear that this was the first step in ensuring... Read more
Virginia Community Capital received a $200,000 grant over a three-year period from the Thompson Charitable Foundation, as part of a $600,000 total grant package that will be directed at supporting businesses in Southwest Virginia. The grants from the Thompson Charitable Foundation will fund up to 12 small business workshops each year in Buchanan and Tazewell counties, provide free technical advisory services, and host four Small Business Challenges in each county that will award investment grants to existing and startup companies. These regions were deeply affected by coal and... Read more
City First Bank, Sunrise Banks, and Beneficial State Bank are among the Certified B Corporations named as "2018 Best for the World" global honorees. The award recognizes these organizations' positive impact on communities, the economy, their workers, and more. The full B Impact Assessment evaluates a company's environmental performance, employee relationships, diversity, involvement in the local community, and impact of a company's product or service. To become a Best for the World honoree, a company must score in the top 10 percent of Certified BCorps across the category areas of the... Read more
Business First Bancshares, Inc. has announced its planned acquisition of Richland State Bancorp, Inc. If the merger is successful, the subsequent combined institution would be the 4th largest Louisiana-headquartered bank, with total assets of approximately $2 billion. As per the agreement, Richland State's President and CEO, Jerome Vascocu, will join Business First's board of directors.