Led by David Reiling, this group, which owns Franklin National Bank, Park Midway Bank, and University National Bank, spent 2008 doing well by doing good—and by bucking conventional wisdom in a troubled industry. All three banks saw improving asset quality, quite an accomplishment in a year noted for nonperforming mortgages and other loans. What’s more, they did it while carrying out a community action mandate, offering 60 percent or more of their services to low- and moderate-income communities, borrowers other banks might see as prime default risks.
All three of the company’s banks have at least 60 percent of their business in such communities. That and other factors gets them U.S. Treasury certification as a community development financial institution, a designation that lets them raise deposits nationally from nonprofits, social entrepreneurs, religious institutions, and other entities and individuals interested in socially responsible investment.
Up next: University Bank is offering contract-for-deed arrangements through the nonprofit housing associations for St. Paul’s Dayton’s Bluff and the Greater Metropolitan Housing Corporation.
