News
South Carolina Community Bank, plagued by problematic commercial real estate loans and other struggles since the economic crisis of 2008, has witnessed progress in recent months. New president and CEO Dominik Mjartan, in his fourth month at the helm of South Carolina Community Bank, said that it has raised more than $11 million in new deposits and closed more than $3 million in new loans to small businesses, nonprofits, and individuals. "We've cleaned up," said Mjartan. "I believe, and this bank will prove it, that margin and mission are mutually reinforcing." Mjartan elaborated on avoiding future turmoil through diversification and finding niche opportunities for investment.
Urban Partnership Bank in Chicago is considering selling itself. The $484 million-asset bank is seeking to determine possible interest from buyers. David Vitale, Urban Partnership's chairman, said that the bank, which has shrunk over the past seven years, would benefit from being part of a better capitalized entity. Urban Partnership, designated as a minority bank, was formed in 2010 to buy the failed ShoreBank. Vitale said that Urban Partnership could also stay independent, with a decision likely this spring.
Carver Federal Savings Bank disclosed a regulatory filing that it will sell its corporate office building to a unit of New York real estate company Gatsby Enterprises for $19.5 million. The $656 million-asset company said that it will lease a portion of the property for its main office, through it will move its administrative staff to a nearby location in Harlem.
A task force has recently been established to address the issue of banking deserts in and around Shreveport, Louisiana, a city struggling with rampant payday lending. The task force's top priority is to find either a bank or a credit union who could take some of the parish's deposits and open branches inside banking deserts. Louisiana, which has more payday lender storefronts than McDonalds locations, is in dire need of trusted financial institutions. The task force took inspiration from New York state's creation of a new banking development district in the notoriously poor South Bronx. The state subsequently deposited $10 million into Spring Bank, headquartered in the South Bronx.
Sen. Thad Cochran (R-Miss) will resign from the Senate on April 1, ending a four-decade congressional career and triggering a fall election that could carve new divisions in the Republican Party and endanger the GOP Senate majority. Cochran, 80, has been suffering from health problems in recent months. "I regret that my health has become an ongoing challenge," he said in a statement. "I intend to fulfill my responsibilities and commitments to the people of Mississippi and the Senate through the completion of the 2018 appropriations cycle, after which I will formally retire from the US Senate." When he steps down, chairmanship of the Appropriations Committee is expected to pass to Sen. Richard Shelby (R-Ala), who is next in the line of seniority.
Opportunity Finance Network (OFN) is set to launch a new Consumer Finance Marketing Toolkit, an easy-to-use online resource that will help CDFIs strengthen how they market their consumer products and services. Based on a survey of consumers, interviews with CDFIs, and pilot testing with three CDFIs, the toolkit includes customizable marketing materials that reflect a new value proposition intended to attract new consumers to your CDFI. Presenters include Mia Mendoza, Principal of The Mendoza Group, a firm with expertise in multicultural marketing; and representatives of two CDFIs that piloted the toolkit: Sheila Herrera of Tiwa Lending and Clifton Williams of Guaranty Bank and Trust. To learn more about how your CDFI can use the marketing toolkit, join the webinar. We will offer this webinar twice, on March 20 and 21 at 1:00 pm ET
Rogersville-based Legacy Bank & Trust Co. completed its purchase of First National Bank of Clinton. The deal closed on February 16th, with Legacy Bank adding three branches in Clinton and Springfield, Missouri to its portfolio. "Our associates have worked especially hard over the past 12 months in creating new products and services that will not only benefit our existing customers, but also our new customers from First National Bank," said John Everett, president and CEO of Legacy Bank, in a press release. Aaron Buerge, First National's president and CEO, became a board member of Ozarks Heritage Financial and Legacy Bank. Through the purchase, Legacy Bank's assets now exceed $230 million. It employs 70 people at seven branches.
During this year's Black History Month, OneUnited Bank has presented the #MakeBlackHistory Plan for 30 million Black Americans to use the internet to organize their $1.2 trillion in annual spending power to build wealth and protect the Black Community. OneUnited President and COO Teri WIlliams explained, "We are at a unique point in history when the internet allows us to organize our money at a scale and speed never seen before. Hands down, this is the best time to build generational, personal, and community wealth by using technology and expanding financial literacy."
Last week, the Congressional Research Service provided Congress with a new report on CDFI programs and policy issues. The report discusses the CDFI Fund's history, current appropriations, and each of its programs. It includes a description of the Fund's eligibility criteria for the different programs, and also engages in an analysis of previous reports and studies on the CDFI Fund Programs, including CMF and the NMTC. Finally, it reviews four policy considerations of congressional interest regarding the Fund and the effective use of federal resources to promote economic development.
Around 250 bank mergers and acquisitions take place every year. The merger between Portland-based Albina Community Bank and Oakland-based Beneficial State Bank took several years to finalize, and culminated in last week's signage and branding changes at Albina's five former branches in Portland. Both banks are Certified B Corporations whose bylaws commit them to voluntary annual external reporting on a wide range of social impact metrics. Beneficial State Bank's unusual ownership structure and powerful track record helped convince Albina's former board of directors that the merger was an ideal way to preserve their bank's mission and legacy while satisfying their regulatory requirements and keeping their five branches open.