$2.2 million in total investments will benefit California’s distressed communities
LAKE FOREST, CA – September 20, 2016 – Clearinghouse Community Development Financial Institution (Clearinghouse CDFI) announced today two substantial investments from newest shareholder, Manufacturers Bank: $200,000 in equity and a $2,000,000 credit facility. Manufacturers Bank is a premium service business bank that works to build strong, stable businesses that create jobs, provide services and support healthy communities. The bank’s substantial investment will help Clearinghouse CDFI continue providing beneficial community development financing throughout California.
“We see an ongoing need for the kind of lending that specifically targets blighted areas bringing about transformative change,” said Douglas Bystry, Clearinghouse CDFI President and CEO. “It’s thanks to strong community partners like Manufacturer’s Bank that we are able to continue meeting these needs and making a real difference in our communities. We are thrilled to welcome them as our newest shareholder.”
Clearinghouse CDFI will use the $2.2 million Manufacturers Bank investment to finance affordable housing, commercial real estate, small businesses, and other beneficial community projects. Similar projects previously financed by Clearinghouse CDFI include:
- Childhelp – In addition to an $8.23 million loan, Clearinghouse CDFI provided a $340,000 grant to this national nonprofit organization to support the treatment and prevention of abused and neglected children.
- American Legion – $715,000 loan supporting the only designated blind and disabled veteran post in the nation. Members serve the community, share camaraderie with fellow Veterans, and honor the fallen.
- WISEPlace – Over $250,000 in working capital to a nonprofit organization providing transitional care to help women in crisis become self-sufficient.
“Our new partnership with Clearinghouse CDFI is a significant milestone for Manufacturers Bank and a good complement to our own CRA Program,” said Naresh Sheth, President and Chief Operating Officer. “For 20 years Clearinghouse CDFI has proven its financial strength and acumen in understanding community needs while making a difference in the lives of those in need. We are very pleased to have the opportunity, and we hope that our investment will help this great CDFI reach new heights for the benefit of the communities we serve together.”
“Over the many years that I have worked in the community, I have watched Doug Bystry lead Clearinghouse CDFI with the vision of providing community development loans for projects that create jobs and services, strengthen communities, and improve lives. It is gratifying that as a shareholder, Manufacturers Bank will now play a role in achieving the vision.” added Nancy Huntington, Compliance Manager and CRA Officer.
ABOUT CLEARINGHOUSE COMMUNITY DEVELOPMENT FINANCIAL INSTITUTION (Clearinghouse CDFI):
Clearinghouse Community Development Financial Institution (Clearinghouse CDFI) addresses unmet credit needs in California, Nevada, Arizona, New Mexico, and Sovereign Nations in the Western U.S. Rated ‘AA’ Stable by Standard & Poor’s Ratings Services, Clearinghouse CDFI is an industry leader helping to bridge the gap between conventional lending standards and the needs of low-income and distressed communities.
Over the course of 19 years, Clearinghouse CDFI has funded $1.2 billion in total loans for over 1,650 projects which have created or retained more than 13,800 jobs and benefit over 1 million individuals. 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. At June 30, 2016, Clearinghouse CDFI has total assets of $312 million. More information is available at: www.clearinghousecdfi.com.
ABOUT MANUFACTURERS BANK:
Manufacturers Bank (the Bank), a California commercial bank with total assets of over $2.5 billion, is a wholly owned subsidiary of Sumitomo Mitsui Banking Corporation (SMBC), which in turn is a wholly owned subsidiary of Sumitomo Mitsui Financial Group (SMFG). The Bank reported net income for the six months ended June 30, 2016 of $6.6 million compared to $7.1 million for the same period in 2015, which included a nonrecurring gain on sale of other assets of $0.7 million, after tax. Excluding this nonrecurring item, net income for the six months ended June 30, 2016, increased $0.2 million over the same period of 2015. www.manufacturersbank.com
Download the full announcement: Clearinghouse CDFI Announces Manufacturers Bank As New Investor