Neighborhood National Bank Receives a $3 Million Deposit From The County of San Diego
SAN DIEGO, CA—December 7, 2007—Neighborhood National Bank (NNB) announced today that it has received a $3 million deposit from the office of the San Diego County Treasurer-Tax Collector. The deposit is the second major one of its kind that NNB has received this year from a municipality, the first coming from the city of National City. This deposit is another momentous occasion for NNB as it will allow the bank to continue to promote economic development from within the underserved communities it services throughout San Diego County.
NNB was the first bank in Southern California to offer the Certificate of Deposit Account Registry Service (CDARS) program to municipalities, which allows government agencies to receive up to $50 million of Federal Deposit Insurance (FDIC) instead of the standard $100,000 per Certificate of Deposit. The state legislative bill that made the CDARS municipal deposit program possible was signed into law in January 2007.
“County Treasurer, Dan McAllister, is a leader in the movement to reinvest public monies into the community banks that create jobs and housing in San Diego,”said Bob McGill, Chairman & CEO. “We are proud to have met the high standards set by Treasurer McAllister for participating institutions.”
Banks, such as NNB, that offer the CDARS program are a big draw for municipalities as it allows them to invest public funds locally so that these resources can be reinvested back into their own communities as opposed to being distributed amongst other banks—usually across the state and country—in order to remain FDIC insured. “The goal is to keep as many deposits in local institutions, which recycles local tax dollars and benefits California taxpayers,” states McGill. “More deposits mean more loans in the community—loans to small businesses, homeowners, and families.”
“NNB is extremely proud to have been a part of such an important development in the banking industry, which seems to be leading the way for a new trend in public investing,” says Hosaka. The CDARS program and subsequent deposits align directly with NNB’s goal which is to help redevelop and increase business activity in the underserved regions of San Diego, and allows the bank to continue its ongoing lending commitment to inner-city neighborhoods.
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). As a CDB & CDFI, NNB’s commitment and mission is to rebuild and generate growth in underserved San Diego neighborhoods by providing real estate loans, commercial 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, one in San Diego, one in 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.