News
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 CDFI banking industry. Eleven of the 12 banks and bank holding companies that received CDFI Program awards were CDBA members.
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 Director Dirk Rosen. "Over the years, they've offered stellar customer service, helped us grow and shared our commitment to a healthy, sustainable environment. We couldn't ask for a better partner and are proud to be a part of their conservation efforts."
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 events and fundraisers as well as financial literacy classes, Williams said, which in turn attract more customers to the branch.
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 of city officials since the late 1990s, but Central Bank of Kansas City's New Markets contribution was key to getting the project underway.
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 measure of what banks earn on loans, remained depressed as the Federal Reserve maintains rock-bottom rates. Banks’ net interest margin was 3.06% in the second quarter, below the prior-year rate of 3.15%.
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 behalf of the many hard working people across our markets, I’d like to extend my gratitude to our investors who share our belief that a zip code should not determine one’s economic opportunity in life,” said Dominik Mjartan, CEO of SBCP.
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 Officer of OneUnited Bank.
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. For student debts, families listed that their total student loans amounted to about 25 percent less than what appeared on credit reports.
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 Federal e-Rulemaking Portal by October 30th, 2015.
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 had hoped the developers would bring to the neighborhood. The plan replaces an initial proposal that envisioned bringing a McDonalds drive-thru to the location, drawing criticism from community activists.