National Cooperative Bank Commits $5 Million to Federation’s CDI Program
Helps Credit Unions Create Lasting Social Impact in Low-Income Communities
FOR IMMEDIATE RELEASE
Washington, DC – (February 22, 2016) – Today the National Federation of Community Development Credit Unions (Federation) announced the commitment of $5 million by National Cooperative Bank in the Federation’s Community Development Investment (CDI) Program. The announcement was made by Cathie Mahon, Federation President and CEO, and Steven Brookner, National Cooperative Bank President, at the Federation’s 5th Annual CDFI Credit Union Roundtable at the CUNA Governmental Affairs Conference (GAC) in Washington, DC. NCB and the Federation will form a lending partnership for Secondary Capital II loans, to provide up to $2 million in combined loans to eligible credit unions.
Secondary Capital II is an amortizing subordinated loan that can be counted towards a credit union’s net worth and can be leveraged by growing community development credit unions to expand safe and affordable lending in low-income communities.
“The Federation is so pleased to be working with our long-time partner NCB to provide these vital investments in high-performing community development credit unions that bring lasting social change to their communities. With each of the loans we make in partnership with NCB, the Federation is able to help credit unions expand innovative products, extend their reach and better serve their communities,” says Cathie Mahon.
“National Cooperative Bank has been a strong supporter of the Federation for many years and is excited to partner with them in offering a secondary capital program which benefits low-income communities nationwide,” says Steven Brookner. “NCB and the Federation have mutual missions, providing vital banking products and services to an underserved market, and we look forward to working together to help communities thrive.”
The Federation’s Community Development Investment Program provides capital resources to its member credit unions seeking funds to increase liquidity, boost net worth, mitigate risk and introduce innovative products. Since its inception in 1982, the CDI Program has invested more than $120 million in community development credit unions. Credit unions interested in secondary capital are invited to contact the Federation at email@example.com.
About the Federation
The National Federation of Community Development Credit Unions is a certified CDFI Intermediary representing community development credit unions (CDCUs). The Federation’s member CDCUs provide credit, savings, transaction services and financial education to more than 5 million residents of low-income urban, rural and reservation-based communities across the US, and hold over $45 billion in community-controlled assets. Founded in 1974, the Federation is headquartered in Lower Manhattan with offices in Madison, WI. The Federation offers a wide range of advocacy, educational, training, investment, marketing, and outreach programs to support and assist CDCUs. For more information about the Federation and its programs, please visit www.cdcu.coop.
About National Cooperative Bank
National Cooperative Bank is dedicated to strengthening communities nationwide through the delivery of banking and financial services, complemented by a special focus on cooperative expansion and economic development. NCB provides financial products and services for the nation’s cooperatives, their members, and socially responsible organizations. Headquartered in Washington, DC, the Bank has offices in Alaska, California, New York, Ohio and Virginia. To learn more, visit www.ncb.coop, National Cooperative Bank on Facebook, or on Twitter @coopbanking.
Clarissa Ritter – National Federation of Community Development Credit Unions
Mary Alex Blanton – National Cooperative Bank