News
The FDIC has issued a call for comments on the agency's evaluation of the economic inclusion potential of mobile financial services. Current regulations, the CRA in particular, generally do not consider the emerging benefits of mobile financial services to underserved consumers who lack branch access. This has created challenges for banks attempting to overcome CRA-based objections to merger and acquisition plans. Before the emergence of mobile banking, banks used branch mapping to overcome these objections. But now, many banks are downsizing their branch footprints, making it harder to overcome CRA objections. By encouraging the FDIC to consider mobile banking strategies, bankers hope to create a new avenue for proving that they impact underserved consumers. Learn more about the request for comments here.
Credit Builders Alliance has opened registration for its 3rd annual Credit Building Symposium in July 13 and 14 in Washington, D.C. The symposium fosters dialogue between nonprofit organizations involved in credit building and corporate and government entities whose practices include credit reporting, credit scoring and credit granting. Key topics will include the linkage between credit building and the broader issues of income inequality, poverty reduction and asset building. Addressing these issues is of critical importance as wealth inequality has continued to widen along racial and ethnic lines since the end of the Great Recession. Register for the conference here.
John Melone, Pan American Bank Vice President, Business Relationship Officer and Palatine Office Manager was honored by the Palatine Township Senior Citizens Council for his volunteer service. Melrose Park, Ill.-based Pan American Bank has been a sponsoring partner of the council since 2014. In that time, the bank has donated close to $10,000 in the form of sponsorships and donations. “It is an honor and a pleasure to work side by side with this organization in helping them help our senior community,” said Melone. “It means a lot to me to be involved with the PTSCC, since they care for so many people. Everyone should consider taking some time to at least stop by the center to see how much they do, and after they see that, I believe they would want to be involved as well.”
Groupe Nduom, a business group composed of Ghanian and American investors, has acquired Illinois-Service Federal Savings Bank. The acquisition started last year, when the ISF Board of Directors approved a recapitalization transaction that allowed it to come back from its post-recession troubles. "Our investment will enable the Bank to build upon its legacy by providing a suite of innovative financial services and products to address its customers' needs,” said Dr. Papa Kwesi Nduom, Chairman of the Groupe Nduom. “This investment helps ensure that minority focused banks continue to play a vital role in community economic development."
Carver State Bank President Bob James was featured as the keynote speaker at the Savannah Morning News' Business in Savannah luncheon. James has had the longest tenure at a single bank of any bank president in the state of Georgia, with 44 years of service. The bank, which was founded by Louis B. Toomer in 1927, is also the oldest bank headquartered in Savannah. “I grew up in an environment that had an enormous appreciation for the value of education and training as well as community involvement, so we’ve tried to incorporate those values into the culture and routine operation strategy of Carver State Bank,” James said.
Michael Pugh, CEO of New York City-based Carver Bancorp and a CDBA Board member, was honored by the Union Settlement Association for his contributions to the fields of finance and community development. “We are delighted to present this award to Michael in recognition of his leadership and Carver’s commitment to serving the diverse banking needs of lower- to middle-income communities across Brooklyn, Manhattan and Queens,” said David Nocenti, Executive Director of Union Settlement. Mr. Nocenti added, “As East Harlem’s oldest and largest social service provider, our organization shares Carver’s steadfast dedication to community service, and Michael embodies these values."
Beneficial State Bank is hosting the Oakland Indie Awards on May 12th to honor local businesses and artists who have a positive social and environmental impact the Bay Area economy. The event features an evening packed with live music and entertainment, local food vendors, interactive art exhibitions, and an Indie Marketplace featuring local artisans. “We’re so excited to be in our tenth year of supporting local at the Oakland Indie Awards! This year’s event, our love letter to Oakland, will pay special homage to those who’ve been in Oakland for a long time, doing great work, and who deserve recognition for their lasting impact,” says Emma Guttman-Slater, community engagement officer at Beneficial State Foundation.
A new report by The Urban Institute distills the community development agenda set forth at the Equitable Economic Development East of the River conference organized by the City First Foundation, an affiliate of City First Bank of D.C. The purpose of the conference was to address how D.C. can bring more of its newfound prosperity to neighborhoods east of the Anacostia River. Many structural barriers, including a lack of public and private investment, have prevented communities east of the river from sharing in the prosperity that other parts of DC are enjoying. The report focuses on a range of topics including inclusive employment, support for entrepreneurs, affordable housing, community engagement and the importance of coalescing around a unifying vision.
Virginia Community Capital has released a new annual report marking its 10th anniversary. The bank was founded in 2006 with a mandate from the Commonwealth of Virginia to use $15 million in start-up capital to bolster economic development in underserved areas. Today, they have leveraged that initial investment into $766 million in financing dollars. Virginia Community Capital has originated $320 million in loans, financing 4,719 affordable housing units and 9 health care facilities. And they have financed local businesses like Essel Propack, a product packaging company that was able to expand in Virginia thanks to financing from Virginia Community Capital. The newly renovated facility retained 260 jobs and created 50 new jobs.
April is Community Banking Month and United Bank is encouraging consumers and small business owners to “bank locally” by finding a hometown bank. United Bank is celebrating community banking throughout the spring as a sponsor of various local events. United Bank will also support schools across its footprint by participating in the Teach Children to Save financial literacy effort. "When customers bank locally and shop locally, they directly impact their communities,” said Bob Jones, president and CEO of United Bank. “Customers can be confident knowing the funds they deposit are reinvested in ways that help create jobs, impact families and drive community development. It really is neighbor helping neighbor.”