Community Development Banking News
CDFI Banking: Industry, Policy, and Beyond.
"State Street Corp. in Boston has picked three more minority banks to receive a portion of the $100 million of deposits it plans to place this year at some of the nation's minority depository institutions.
Carver State Bank in Savannah, Georgia; Citizens Trust Bank in Atlanta; and Ponce Bank in New York City will each receive an undisclosed amount of deposits as part of State Street's program to provide low-cost, stable deposits to MDIs and community development financial institutions. The trio joins Optus Bank in Columbia, South Carolina, and M&F Bank in Durham, North Carolina, the first two recipients of State Street's deposits."
"Wealth managers Bank of New York Mellon Corp., Warburg Pincus & Co. and Blackstone Inc. tied up with advocacy trade groups Community Development Bankers Association and National Bankers Association to launch the Advancing Communities Together (ACT) deposit program, which aims to boost deposits at banks serving low-income and minority communities.
At launch, four major financial firms deposited $35 million in the program, with additional deposits anticipated from a broad range of depositors, including corporations, foundations and universities, according to a press release.
Deposit management firm IntraFi LLC is powering the program with its network of 3,000 banks nationwide, giving depositors access to multimillion-dollar insurance from the Federal Deposit Insurance Corp., the release said.
According to IntraFi's website, the ACT program aims to bolster funding for community lending by making it easier for a participating bank that is a community development financial institution (CDFI) or minority depository institution (MDI) to acquire funds from socially motivated depositors."
"Today, Administrator Isabel Casillas Guzman, head of the U.S. Small Business Administration (SBA) . . . announced the 7(a) Working Capital Pilot (WCP) Program. The WCP offers a newly structured line of credit, made by 7(a) lenders and backed by the SBA, designed to give greater flexibility than a traditional term loan."
The Community Development Bankers Association (CDBA) and National Bankers
Association (NBA) are proud to announce the launch of the Advancing Communities Together (ACT)
Deposit Program. This innovative initiative is designed to channel vital funding to banks serving
low-income and minority communities while also ensuring all deposits are eligible for FDIC insurance.
At launch, four major financial firms have deposited $35 million in the program, with additional deposits
anticipated from a broad range of depositors, including corporations, foundations, and universities.
"It has been my honor to serve at the FDIC as Chairman, Vice Chairman, and Director since August of 2005. Throughout that time I have faithfully carried out the critically important mission of the FDIC to maintain public confidence and stability in the banking system. In light of recent events, I am prepared to step down from my responsibilities once a successor is confirmed. Until that time, I will continue to fulfill my responsibilities as Chairman of the FDIC, including the transformation of the FDIC's workplace culture."
"CBC Bancorp, the holding company for Commercial Bank of California (CBC), announces it has entered into a definitive acquisition agreement with Bay Community Bancorp (OTC Pink: CBOBA), the holding company for Community Bank of the Bay (CBB). Under the terms of the agreement, CBC Bancorp will acquire Bay Community Bancorp in an all-cash transaction valued at $14.00 per common share. This acquisition merges institutions from two of California's largest banking markets, resulting in approximately $3.5 billion in combined assets.
'The alignment of our two institutions will create a unique banking franchise that better serves our employees and clients,' said Ash Patel, chairman of the board, CEO and president of Commercial Bank of California. 'Once we combine our two reputable banking platforms, it will create a transformative business bank with expanded product offerings driven by the purpose to serve our communities across California.'"
"The CFPB has announced that, in light of court orders in ongoing litigation, it plans to issue an interim final rule to extend the compliance dates set forth in the small business lending rule.
More information about the compliance date extension is available at www.consumerfinance.gov/1071-rule/."
"The Supreme Court ruled on Thursday that the Consumer Financial Protection Bureau's funding is constitutional and satisfies the requirements of the Appropriations Clause.
The majority 7-2 opinion by Justice Clarence Thomas was joined by Chief Justice John G. Roberts, Jr. and Justices Elena Kagan, Brett M. Kavanaugh, Sonia Sotomayor, Amy Coney Barrett and Ketanji Brown Jackson. A dissenting opinion was filed by Justice Samuel A. Alito, Jr., who was joined by Justice Neil M. Gorsuch. A separate concurring opinion was filed by Justice Kagan, joined by Justices Sotomayor, Kavanaugh and Barrett. Justice Jackson filed a separate concurring opinion."
"Today, the House Financial Services Committee, led by Chairman Patrick McHenry (NC-10), reported eleven pieces of legislation out of Committee favorably to the full House for consideration. These include a slate of financial institutions, capital markets, and housing legislation to improve efficiency and accountability at federal agencies, as well as expand economic opportunity."
"Senator Mark Warner (D-VA) released a letter to the Senate Appropriations Committee on Fiscal Year 2025 CDFI Fund appropriations. A total of 48 Senators signed the letter, which supported an appropriation of $325 million for the Fund. The letter includes 11 Members of the Appropriations Committee and 4 Republican Senators: Rounds (SD), Daines (MT), Crapo (ID), and Cassidy (LA). Sens. Crapo and Daines signed on the for the first time. Sens. Warner and Crapo are Co-Chairs of the Senate Bipartisan Community Development Finance Caucus. Other Caucus Members who signed include Klobuchar (D-MN), Ossoff (D-GA), Reed (D-RI), Smith (D-MN), Warnock (D-GA) Peters (D-MI), Hickenlooper (D-CO), Schatz (D-HI), Wyden (D-OR), Booker (D-NJ), Rounds, Cassidy, and Daines.
Last month, Representatives Barbara Lee (D-CA) and Don Bacon (R-IL) led the bipartisan House letter, which garnered 96 signatures. That letter requests $341 million, which is $17 million above the enacted FY 24 level for the CDFI Fund. Attached please find both letters.
To a remarkable degree, the FY 25 appropriations outlook is unsettled. Today House Appropriations Committee Chairman Cole (R-OK) reiterated that when the Committee begins marks in late May or June, the topline number for domestic programs will be $710 billion, as established in the Fiscal Responsibility Act (FRA) , Public Law 118-5, which is roughly $60 billion below the FY 24 level. The Senate Appropriations Committee has not yet indicated its approach, but it likely to propose a higher number for domestic programs than set in the FRA. Neither the House nor the Senate will complete appropriations bills by the end of the fiscal year. When it returns from the August recess, Congress is likely to pass a Continuing Resolution (CR). With elections approaching, Congress will adjourn at the end of September. After the election, a lame duck session will have long list of legislation to consider including appropriations, taxes, and the farm bill."