The U.S. Department of the Treasury announced June 27 nearly $22.8 million in awards to 113 banks across the nation for their investments in economically distressed communities. The awards are provided through Treasury’s Bank Enterprise Award Program, part of its Community Development Financial Institutions Fund.
The BEA is a performance-based grant program that provides monetary awards to banks for their own lending, investing or service activities in highly distressed communities where at least 30 percent of the population lives at or below the national poverty level and where the unemployment rate is at least 1.5 times the national average.
During the most recent assessment period, the 113 depository institutions increased their loans and investments in distressed communities by $470.4 million; increased their loans, deposits, and technical assistance to CDFIs by $18.6 million; increased the provision of financial services in distressed communities by $7.3 million; and increased their equity and equity-like loans and grants to CDFIs by $2.5 million.
Recipients in the Midwest that each received an award of $233,387 include: First Southwest Bank, Alamosa, Colo.; Native American Bank, N.A., Denver; First Eagle Bank, Chicago; Illinois Service Federal S&L Association, Chicago; International Bank of Chicago, Stone Park, Ill.; Pacific Global Bank, Chicago; Pan American Bank & Trust, Melrose Park, Ill.; Sunrise Banks, N.A., St Paul, Minn., and Mitchell Bank, Milwaukee.
Recipients in the Midwest that received smaller awards include: First Independence Bank, Detroit ($153,303); Pulaski Savings Bank, Chicago ($39,375) and Old National Bank, Evansville, Ind. ($15,000).
In the Pacific Northwest, Albina Community Bank, Portland, Ore., received $233,387. Albina was bought earlier this year by Oakland, Calif.-based Beneficial State Bank, which itself received a $233,387 award.
Six banks in Kentucky received BEA awards: Citizens Union Bank, Shelbyville ($15,000); Farmers Bank & Capital Trust Company, Frankfort ($15,000); Farmers National Bank, Danville ($150,804); Farmers Deposit Bank, Inc., Cynthiana($144,082); Kentucky Bank, Paris ($147,000), and Metro Bank, Louisville ($109,857).
Ninety-six percent of award recipients were banks with less than $1.3 billion in assets.
Through the BEA program, the CDFI Fund seeks to increase the dollar amount of investments and services in the most economically distressed communities in the nation. Since its inception in 1994, the CDFI Fund has awarded grants totaling more than $470 million.