Investing in Arkansans: Southern Bancorp Gives Back

Southern Bancorp Inc., one of the nation’s largest Community Development Financial Institutions (CDFI), was awarded $2 million, the maximum available under the Financial Assistance program of the U.S. Treasury’s CDFI Fund. The competitive awards, which are presented after a rigorous evaluation based on a CDFI’s abilities and success in providing financial access to underserved communities, totaled just over $200 million to 195 organizations in 2015. The CDFI Program invests in and builds the capacity of financial institutions serving rural and urban communities across the nation that lack adequate access to affordable financial products and services. Since 1996, the CDFI Fund has awarded more than $1.5 billion, helping build a nationwide network of more than 950 CDFIs located in every state, all focused on economically empowering the communities they serve. There are currently nine CDFI-Certified financial institutions in Arkansas, including all three of Southern’s entities, including Southern Bancorp, Inc., the bank’s holding company; Southern Bancorp Bank; and Southern Bancorp Community Partners; Arkansas Capital Corporation, Little Rock; the Bank of Lake Village, Lake Village; Communities Unlimited, Inc., Fayetteville; Fordyce Bank & Trust Company, Fordyce; FORGE, Inc., Hutsville; and Southeast Arkansas Bank Corporation, Lake Village “These important community partners are not only on the frontlines of economically distressed communities providing needed capital and credit, they are building a more inclusive economy which benefits the nation as a whole,” said CDFI Fund Director Annie Donovan, with the announcement of the 2015 award recipients in September. “These awards highlight how much the CDFI Program has contributed in its 20 year history towards building a strong network of CDFIs across the country.” As one of the nation’s first financial institutions to be designated as a CDFI, Southern Bancorp has a long history of working with the Fund to ensure financial access to its communities in Arkansas and Mississippi. “We are honored to have been chosen as a 2015 CDFI Fund award recipient,” said Darrin Williams, CEO of Southern Bancorp, Inc. “This award will be used to further Southern’s mission of creating economic opportunity by increasing lending capacity in our communities, Southern Bancorp Gives Back With $2 Million CDFI Fund Award Investing in Arkansans

with a focus on providing much-needed financing to entrepreneurs who are growing their businesses and creating jobs.” Southern has received awards three out of the last four years, and has a track record of providing access to credit and banking services to underserved communities. Since the start of 2011, Southern has had more than 6,000 new loan customers, including small businesses, sole proprietorships, and individuals; the bank’s loan portfolio has grown from $612 million in 2011 to more than $814 million today, with the majority of those loans being made in underserved, economically distressed communities. Southern’s community services, including financial education and empowerment programs, have also grown during this time period. For example, the bank’s free tax preparation program has grown to

In 2014, at the age of 63, Vernetha Jackson of Helena-West Helena realized her dream of homeownership. She worked with Southern Bancorp Community Partners to improve her financial know-how, understand the home buying process and later get a mortgage that fit her needs. Mrs. Jackson is a great example of how lives are changed through Southern’s work as a CDFI. To hear Mrs. Jackson’s story and others, visit www.banksouthern.com/stories.

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about Mrs. Jackson’s story!

Southern employees help out at last year’s Downtown Arkadelphia Crawfest. The bank is a longtime sponsor of the Andy Allison Super Kids Fun Run that supports a local scholarship. Southern Bancorp’s Community Corp organizes and supports this great event.

2,906 families served in 2014, returning more than $22 million to Southern’s communities since 2011. In noting the impact this award would have on their communities, Southern cited several staggering statistics regarding the financial status of many communities they serve: ƒ In 2012, CNBC reported that Mississippi ranked 50th and Arkansas 40th in terms of access to capital. Additionally, the Small Business Administration reported in 2013 that the number of business loans in Arkansas and Mississippi had declined by 38% and 63%, respectively, since 2000. ƒ The FDIC’s most recent (2012) national study of unbanked households found that 15.1% of Mississippi households and 12.3% of Arkansas households did not have checking accounts or other banking services, compared to 8.2% nationally. ƒ More than 23% of Mississippi residents and 28% of Arkansas residents use payday lenders, a statistic related to the limited number of banks and credit unions in much of our region that contributes to the reliance on “fringe” lenders by many microentrepreneurs and other small sole proprietors. “In the majority of our markets, we are either the only insured depository institution or one of just a few. This is a problem for rural communities, and this award will help us to address it, even if only to a small degree,” Williams said. “For three decades, Southern Bancorp has served some of rural America’s most economically distressed communities, not only because it is our mission, but because we believe that those communities — and the families living within them — matter,” said Williams. “This award will provide additional resources to help entrepreneurs get off the ground, help existing businesses grow, and help families build the net worth necessary to create generational financial strength.” Southern hopes that their investment in Arkansas communities will have an outward ripple effect throughout the state, and hope that other banks will join them in their ongoing investment in Arkansas communities. According to Williams, as a family of three CDFIs, including a less regulated loan fund, Southern has additional tools that enable them to work with other banks striving to better their communities. “This can be a win-win situation for many banks as these types of partnership can often be counted toward CRA,” he said. “I’d encourage any Arkansas banks looking to join us in our effort to improve the lives of those living in our state to contact me at any time.” Other Arkansas financial institutions named among the 2015 awardees are the Bank of Lake Village, and Fordyce Bank & Trust Company. For more information on the Community Development Financial Institution Fund, log on to www.cdfifund.gov.

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