Neighborhood National Bank Receives Milestone Deposit
SAN DIEGO, CA—September 25, 2007—Neighborhood National Bank (NNB) announced that it has received a $2 million deposit from the city of National City. The deposit—the first of its kind to be made by a public agency in Southern California—is a momentous occasion for both the city and the community bank, and is part of a city-wide effort to promote economic redevelopment from within.
Two years ago, NNB chairman and CEO Robert McGill, began working together with National City, to get a legislative bill passed that would allow local governments throughout California to deposit larger amounts in a single institution through a Certificate of Deposit Account Registry Service program (CDARS). Under the CDARS initiative, which was signed into law this past January, NNB, member FDIC, can receive deposits of up to $50 million from government agencies. Prior to CDARS, the maximum insurance allowed per account on CDs was $100,000.
“This new legislation enables cities, counties, and local agencies to keep more deposits in local institutions—recycling local tax dollars to benefit California taxpayers,” maintains McGill. “More deposits means more loans in the community—loans to homeowners, small businesses, and families.”
The new program aligns directly with NNB’s goal to help redevelop and garner business activity in the underserved regions in San Diego County, and allows the bank to continue its ongoing lending commitment to the working-class communities.
As the first bank in San Diego to join the Promontory Interfinancial Network, (a requirement of banks offering CDARS), NNB has begun paving the way for new and effective methods for municipalities to deposit public funds in communities for reinvestment. “NNB is extremely proud to be able to offer this groundbreaking service, and to have been a part of such an important development in the banking industry,” says bank President Barbara Hosaka. “Our hope is that this will result in a new trend of public reinvestment in the community.”
About Neighborhood National Bank
Neighborhood National Bank (NNB) opened to the public in 1997 and was the first bank to be designated by the U.S. Treasury as a nationally chartered Community Development Bank (CDB), and a Community Development Financial Institution (CDFI). NNB’s commitment and mission is to rebuild and generate growth in local underserved neighborhoods by providing commercial real estate loans, business loans, consumer loans, lines of credit and other banking services—particularly services to businesses that are woman or minority-owned. NNB is a full-service bank with assets exceeding $100 million.
Neighborhood National Bank operates from three banking locations in San Diego, National City, and the newest location in East County. In addition, NNB maintains standalone ATM sites in Paradise Valley and Mission Hills. For more banking information, please call 619-789-4400 or visit: www.mynnb.com.