BancorpSouth BankвЂ™s group includes (from left) Dan Rollins, president and CEO; Tricia Bellamy, primary compliance offier; Robert Harris, community financing officer; and Mike Meyer, primary banking officer and manager of community financing. Picture: bad credit installment loans Jeff Walker
Beneath the Community Reinvestment Act (CRA), partnerships between minority- and banks that are majority-owned show good for all events. HereвЂ™s how two banking institutions arrived together to leverage each resources that are otherвЂ™s get CRA credit along the way.
By Cheryl Winokur Munk
A minority depository institution, or MDI, in New Orleans in 2017, $20 billion-asset BancorpSouth Bank in Tupelo, Miss., invested $8.5 million of capital in Liberty Bank and Trust Company. The deal infused required money into Liberty Bank along with the additional good thing about boosting BancorpSouthвЂ™s Community Reinvestment Act (CRA) score.
BancorpSouthвЂ™s desire for $625 million-asset Liberty Bank had been inspired to some extent by a little-known supply in the CRA that credits banks that collaborate with minority banking institutions. There were 148 MDIs as of the first quarter of 2019, in line with the FDIC, and several bankers is almost certainly not conscious that their businesses can get CRA credit for partnering with these minority banking institutions.
Liberty Bank reached off to BancorpSouth along with other banking institutions about their interest to purchase its business, that was trying to redeem about $8.5 million of its cumulative perpetual preferred stock which was released this season, claims Mike Meyer, BancorpSouthвЂ™s primary banking officer and manager of community financing. More