Letter to Shareholders

Dear Shareholders and Friends:

As I reflect on 2018, I recall our successes, challenges, changes, and new opportunities before us as a company. Clearinghouse CDFI posted another strong year of growth as we passed the half billion mark in total assets, finishing with $510 million. We provided economic opportunities to many, while addressing complex and pressing social issues, through our creative financing. This success is only possible by working together with you, our investors, borrowers, employees, partners, and friends. Looking ahead, I am confident that Clearinghouse CDFI will continue connecting, creating, and empowering everyday people – resulting in even greater positive impacts in the communities we serve.

Attracting new capital and deploying it efficiently creates real value for our shareholders. 2018 marked our 19th consecutive year of profitability, with $5.7 million in net income. Through retained earnings and $3.5 million in new equity raised, we increased our equity capital by 14%. In 2018, we also received a new Financial Assistance Award, our first Capital Magnet Fund Award, and a third CDFI Fund Bond Guarantee Program issuance, now totaling $350 million with $196 million in outstandings. This consistent level of corporate growth, self-sufficiency and earnings is unmatched by any other CDFI.

These new investments increased our lending capabilities resulting in more innovative and impactful lending. In 2018, we funded 58 loans totaling $139 million. This provided our borrowers with the critical resources necessary to pursue and attain their goals. Last year, our borrowers served approximately 50,000 families in high-poverty neighborhoods, built 1,000 affordable housing units, and created 1,700 jobs.

We are committed to fostering meaningful impact in our communities beyond our core business activities. During 2018, our employees volunteered a total of 1,780 hours to mission-driven organizations throughout our service area. For the third consecutive year, we hired talented disadvantaged high school students as part of the Allen Peters Baldwin ‘B’ BOLD internship program, empowering the next generation of impactful leaders. Clearinghouse CDFI was one of just two Small OC Workforce companies recognized by the Orange County Business Journal as one of its Civic 50 most community-minded businesses. Achievements like these exemplify our collective ability to connect with one another and help shape the future.

Affecting change is a team effort which requires trusted partnerships. Last year we strengthened our commitment to Indian Country. We became the first CDFI to make an equity investment in Native American Bank, a tribal-owned, regulated financial institution. We hope this partnership will enable us to deploy additional funds in projects benefiting Native Americans both on-and-off sovereign lands.

As a proud B Corporation we worked hard to strengthen our internal and external impacts. We launched the RIPPLE Initiative – inspiring our borrowers to expand and measure their own impact. As a testament to our team’s relentless pursuit of building a better business, we were awarded the 2018 Best for the World Overall Award from B Lab. Clearinghouse CDFI Board and Committee members collectively contributed over 430 hours last year, bringing their diverse perspectives and valued insights to our corporate governance. This level of commitment connects us to the low-income and underserved people and communities we serve, as well as our many financial partners.

Your commitment allows us to continue balancing growth, profit and purpose. Our capital facilitates an inclusive economy and improves lives throughout our service area. We thank you for your continued support and remain committed to pursuing new and impactful programs. Our future success is fueled by our partnerships, our communities, and our shared vision: to Connect, Create, and Empower.


Doug Bystry
Douglas J. Bystry
President / CEO