Existing Shareholder increases its investment in community development financial institution
LAKE FOREST, CA, October 4, 2018: Clearinghouse Community Development Financial Institution (Clearinghouse CDFI) announced today an additional $1 million Class A equity investment from Cathay Bank. With this investment, Cathay Bank is now Clearinghouse CDFI’s fifth largest investor.
“Clearinghouse CDFI has proven over the years that it makes a difference in lives and communities. Cathay Bank is proud to enhance its strategic alliance with an equity share that will allow loans to be made in areas in which we have a limited presence, but a major commitment,” said Norman Cerswell, First Vice President & CRA Officer of Cathay Bank.
Clearinghouse CDFI will use this investment to benefit low-income and distressed communities in California and throughout the Western United States and in Indian Country. The investment allows Clearinghouse CDFI to continue its mission of financing community facilities, affordable housing, commercial real estate, and other projects that create jobs and services in underserved areas.
Community development projects previously financed by Clearinghouse CDFI include:
• Junior Achievement, Los Angeles, CA—$3.35 million in financing for a nonprofit organization to continue inspiring and empowering students through financial literacy, entrepreneurship, and work readiness programs that impart a critical understanding of economics and business concepts.
• Bellaire Downtown, Los Angeles, CA—A $3.54 million loan for the renovation of a 212-unit, single room occupancy building into an economical, secure housing option in a severely distressed community.
• 1318 Maryland, LLC, Los Angeles, CA—A $3.45 million loan for the rehabilitation of a 30-unit multi-family property in a severely distressed area.
“We are grateful to Cathay Bank for their ongoing partnership and joint commitment to creating a positive impact in underserved neighborhoods,” said Douglas J. Bystry, President and CEO of Clearinghouse CDFI. “We look forward to working closely with Cathay Bank to build healthy communities.”
Clearinghouse CDFI has funded $1.55 billion in total loans benefitting 1,820 community projects over the past 21 years. These projects have created or retained more than 18,000 jobs providing benefits to over 1.5 million individuals. This includes the rehabilitation of more than 16.9 million square feet of blighted properties. These projects have benefited over 610 separate underserved communities throughout California, Nevada, Arizona, New Mexico, and in Indian Country.
About Cathay General Bancorp:
Cathay Bank, a subsidiary of Cathay General Bancorp (NASDAQ: CATY), offers a wide range of financial services through nine states in the U.S. as well as a branch in Hong Kong and representative offices in Beijing, Shanghai, and Taipei. Founded in 1962 to support Los Angeles’ growing Chinese American community, in the past half century the bank has expanded and grown with its customers, providing them with the tools and services they need to achieve their goals. Learn more at www.cathaybank.com. FDIC insurance coverage is limited to deposit accounts at Cathay Bank’s U.S. domestic branch locations.
About Clearinghouse Community Development Financial Institution (ClearinghouseCDFI):
Clearinghouse Community Development Financial Institution (Clearinghouse CDFI) addresses unmet credit needs in California, Nevada, Arizona, New Mexico, and Sovereign Nations in the Western United States. Clearinghouse CDFI is an industry leader helping to bridge the gap between conventional lending standards and the needs of low-income and distressed communities. Clearinghouse CDFI is also a B Corp—a certification received from the nonprofit B Lab. B Corps are companies who meet rigorous standards of social and environmental performance, transparency, and accountability, and use business as a force for good. More information is available at: www.ccdfi.com.
Ron Demeter, Partner
Vectis Strategies on behalf of Clearinghouse CDFI
Download the full release: Cathay Bank Invests $1,000,000 in Clearinghouse CDFI