Recent News
All CDFI banks interested in the FHA Small Building Risk Sharing (SBRS) program are invited to join our SBRS program webinars. The SBRS program promotes multifamily housing project financing by providing lenders a 50% risk sharing arrangement with HUD. This webinar series consists of two sessions led by SBRS Initiative expert Diana Talios of the FHA. The first webinar (October 6, 2015) is an overview of the initiative including eligibility requirements, the application process and other timelines.... Read more
The CDFI Fund has announced five free webinars provided as part of the Capacity Building Initiative's "Expanding CDFI Coverage in Underserved Areas" series. The webinar series is intended to address the gaps in CDFI service coverage in underserved communities and will cover training topics developed for the series' in-person training sessions. The webinars are Expansion Strategies for Growth, Part One: Operational Efficiencies (October 6, 2015), Using Market Analysis for Expansion (October 27, 2015) Expansion Strategies for Growth, Part Two: Technology, People,... Read more
Dominik Mjartan, CEO of Southern Bancorp Community Partners hopes to level the economic playing field for the underserved. Mjartan said success should not be determined by ZIP code. Living in Helena-West Helena -- a place where Southern is active in economic development -- shouldn't mean people there can't be upwardly mobile. Southern Bancorp makes about $56 million a year in loans in Helena-West Helena’s Phillips County. In the last three years, Southern invested an additional $3 million focused on job creation and downtown revitalization. “To us, profit is a secondary... Read more
Sunrise Banks of Minneapolis, Minn. won a $2.2 million NEXT Opportunity Award to expand TrueConnect, its small-dollar, affordable employer-based loan. The Wells Fargo NEXT Awards for Opportunity Finance support innovations that transform how the unbanked and underbanked access responsible personal financial products and services. Sunrise Banks' convenient alternative to predatory loans integrates with employers’ payroll systems through the bank's proprietary software. Sunrise has successfully piloted True Connect with three employers and plans to expand the product. “The... Read more
Doyle Mitchell, CEO of Industrial Bank of Washington, D.C., testified before the United States House Committee on Small Business Subcommittee on Economic Growth, Tax and Capital Access. His testimony focused on the impact of community bank regulatory burdens such as Dodd-Frank on small business lending. “The exponential growth of regulation in recent years is suffocating community banks’ ability to serve their small business customers," Mitchell said. "Compliance has become a major distraction for community bank managers. Any community banker will tell you that their job... Read more
In a new report, Opportunity Finance Network writes that the financial and portfolio performance of CDFIs is on par with those of conventional banks. In their analysis, based on a dataset of 209 OFN member CDFIs (predominantly loan funds), CDFIs averaged 15 percent loan growth per year. Their cumulative net loan loss rates were 1.5 percent -- on par with that of FDIC-insured institutions. The members have been responsible for over $35 billion in cumulative financing, development of 1.5 million housing units and the creation of 721,000 jobs. The CDFI lending was also highly targeted at... Read more
CDBA members and CDFI banks as a whole had a record year accessing Bank Enterprise Awards (BEA) and CDFI Program awards. Of the 83 banks receiving BEA funding, 67 were CDFI certified and 42 were CDBA members. This year’s BEA also continued a trend toward more prizes for community banks; 98% of the $18.1 million awarded went to banks with assets of less than $10 billion. CDFI banks also had a record year accessing the CDFI program awards. The 12 banks and bank holding company awardees received awards totaling $14.4 million (9 percent of the total awards), the largest amount ever awarded the... Read more
Community Bank of the Bay is supporting research into sustainable deep sea habitats by sponsoring the Marine Applied Research & Exploration (MARÉ)'s 3rd Annual MARÉ Soirée. Community Bank of the Bay's partnership with MARÉ is part of the bank's Bay Area Green Fund, which offers bank accounts that support financing of local and environmentally sustainable projects and businesses. "When I launched MARÉ in 2003, an accountant at Save the Bay recommended Community Bank of the Bay as a nonprofit-friendly bank that also gives back to the community," says MARÉ Executive... Read more
OneUnited Bank is among a new wave of banks using innovative technology to redefine the bank branch experience. OneUnited President Teri Williams says the changes made at OneUnited have made the branch both a place of business and a meeting place for the community. “A lot of people are going in when there’s a problem or an opportunity,” Williams said. “Because of the decrease in the middle – the day-to-day transactions – banks are repurposing their branches.” Now, OneUnited’s branch in Liberty City, Florida is used as a community resource center. The branch hosts community... Read more
A former steel factory in St. Louis is being converted into a new business park thanks in part to New Markets Tax Credits provided by Central Bank of Kansas City. The site, now vacant, has a long history going back to 1870, when it began operations as a steel factory. It later served as a coal gasification and coke production facility until 1987, when it was abandoned. Now, developer Green Street St. Louis is revitalizing the site with an approximately $70 million makeover. Steve Kramer, U.S. Bancorp CDC’s senior vice president, said redeveloping the site has been a goal... Read more
U.S. bank earnings rose 7% in the second quarter over last year, although other measures of bank profitability remained depressed. The 6,348 U.S. banks earned $43 billion in the second quarter, a 7.3% increase from the same period a year ago. Banks boosted their loan balances by $185 billion, or 2.2%, compared with the first quarter of this year, the highest quarterly increase since 2010. They showed 2.8% growth in commercial and industrial loans compared with the previous quarter, a 3.1% increase in credit card balances and 1.3% growth in residential mortgage loans. Net interest margin, a... Read more
Southern Bancorp Community Partners (SBCP), lending partner of Southern Bancorp, has announced passing the $2.5 million mark in new capital to expand its lending. SBCP plans to raise a total of $5 million to expand its revolving loan fund to provide small business loans, microloans, mortgages and consumer loans in underserved communities in Arkansas and Mississippi. Because it faces fewer regulations than a depository institution, SBCP has greater flexibility in making loans that traditional lenders are unable to pursue, yet are desperately needed in rural communities. “On... Read more
OneUnited Bank has announced the winners of its 5th annual I Got Bank! Youth Essay Contest. Jahneece Cheatham, 8, of Long Beach, California, Jacqueline Hernandez, 12, of South Gate, California and Quentin Thomas, 11, of Philadelphia, Pennsylvania impressed the judges with their mastery of financial literacy skills and each won a $1,000 savings account. “We believe every child who participated in this essay contest is a 'winner' because their eyes have now been opened to the importance of saving and managing money,” said Teri Williams, President & Chief Operating... Read more
Many Americans have a skewed perception of their finances according to a recent study that compared how much debt households thought they had with how much lenders said they actually had. Researchers compared family-reported figures from the Survey of Consumer Finances (SCF) with creditor-reported data from the Consumer Credit Panel (CCP). When it comes to secured debt such as mortgages, households's estimates were roughly on target. But households estimated that they owed about 40 percent less than their lenders said they owed on credit cards—about $440 billion compared to $731 billion.... Read more
The CDFI Fund is soliciting comments on its revisions to the Interim Rule for the CDFI Program. Through the CDFI Program, the CDFI Fund uses federal resources to invest in CDFIs and build their capacity to serve low-income people and communities that lack access to affordable financial products and services. The revised Interim Rule includes revisions necessary to implement the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, as well as technical corrections and other updates to the current rule. All comments must be submitted via the... Read more
A new proposal to repurpose a former Urban Partnership Bank branch in Chicago's South Side is drawing praise from its community. The new plan, created by developer Alisa Starks, would bring a four-screen movie theater on the main floor, a six-lane bowling alley in the basement and a kid-friendly restaurant and play area on the second floor. The project will be committed to local hiring and to contracting with minority- and women-owned businesses. The revised plan was roundly supported by residents at a recent community meeting, with many saying it was the type of plan they... Read more
Mission Valley Bank is sponsoring a fundraiser for Carousel Ranch, a facility that provides equestrian therapy for children with special needs. Carousel Ranch is just the latest charity to receive support from Mission Valley, which also supports the Boys & Girls Club, Samuel Dickson Family Health Center and the College of the Canyons Foundation. Carousel Ranch provides Equestrian therapy that allows special needs children to stretch their muscles, improve balance, practice hand-eye coordination and develop speech skills. “With the economy that took the turn that it... Read more
Financial tech startups increasingly make social missions part of their raison d'être in addition to their digital goals to improve outdated financial services products. Some of these upstarts' battle cries are aimed at democratizing financial services at a time when banks are taking heat for charging their biggest fees to consumers who are living paycheck to paycheck. More affordabale pricing structures, easier-to-understand language and donations with each transaction are among the strategies the firms use to demonstrate mission. These disruptors with social missions baked into their... Read more
American Banker has named BankPlus and Community Bancshares of Mississippi among the best banks to work for. Community Bancshares offers full-time employees a 60% reimbursement on up to $600 worth of new clothes each spring and fall. It also offers leadership training to its rising banking stars. At BankPlus, employees get a day off each year as an anniversary gift and every five years receive a gift such as jewelry, furniture or a vacation. Top performers each quarter enjoy a lunch with executives, a $500 bonus and a commemorative coin. BankPlus has also... Read more
The Federal Reserve had expected to begin withdrawing its support for the nation’s economic recovery this year, but mounting evidence of a global slowdown could extend the era of easy money. Fed officials have signaled for months that they are getting closer to raising the central bank’s target interest rate and many investors had anticipated the milestone would come at the next Fed meeting in mid-September. But that timeline now appears less likely according to a growing list of prominent economists including... Read more