HomeMy WebLinkAboutAttachment Neighborhood National Bank (Finance)Neighborhood National Bank
Lending Impacted by CDARS Program in The City of National City
From 06/01/03 to 12/31/13
Since National City's CDARS Deposit
National City deposited $2 million in a CDARS account with Neighborhood National Bank. on
September 13, 2007, and subsequently deposited an additional $1 million. The $3 million
CDARS funds from National City go into a pool of funds that the Bank then has available to lend
to business and individual borrowers. In National City the Bank has been able to grant 24 loans;
commercial, commercial real estate, and consumer loans, since the City's CDARS deposit with
the Bank. The loans have been granted to 23 entities for a total of $8,457,738. The Bank has
assisted these businesses to grow by lending more than double the amount of the total $3 million
deposit. Or, in other words, National City's investment return is well over 100%.
The 15 business loans totaled S4,453,606 to 10 companies: one automobile parts/accessory
stores, one car wash, five supermarkets, one property Management Company, a machine
shop/engraver and a local contractor. Using an average of 11 employees per business, based on
SBA loan applications, an estimated 88 jobs were created/retained by 8 of these businesses.
The 7 commercial real estate loans totaled S3,994,331.80 for three retail projects covering 7
retail units, one warehouse and three loans to purchase or refinance 24 housing units.
Two consumer loans totaling $9,800 were for personal, family, or household purposes.
The total loans made since National City's CDARS deposits were received at the Bank have
been made in 9 of the 15 census tracts comprising the City. The amount of lending in each tract
follows:
Census Tract
Dollar Amount of Loans Made
114.00
$1,961,000
115.00
$12,900
116.02
$436,000
117.00
$4,160,446
118.02
$8,800
119.02
$343,500
120.01
$594,260
121.02
$325,750
122.00
$615,082
Each census tract represents an area of the City.
Since CDARS Program Began at the Bank
Since the CDARS program began at the Bank in June 2003 to December, 2013, the Bank has
granted 46 loans (business, commercial real estate, construction, and consumer loans) to 34
entities in National City for a total of S17,574,938.
Commercial loans to small businesses, which are defined as those businesses having annual
revenues (sales) equal to $1 million or less. 28 business loans totaling $5,835,738 were made to:
♦ 15 small businesses (17 loans)
• 7 larger sized businesses (11 loans).
Using an average of 11 employees per business, based on SBA loan applications, an estimated
275 jobs were created/retained by 25 of these businesses.
Two construction loans in the amount of $5,126,500 created 30 dwelling units.
Commercial Real Estate loans totaling $6,569,250 covered 1 office building, 1 industrial
building, i warehouse, 7 retail units, 20 apartment units, 4 single family units, and 1 church.
Three consumer loans totaling $43,450 were made for personal, family, or household purposes.
Further, these loans are fairly disbursed throughout National City. The loans are made in 13 out
of the 15 census tracts comprising the city. The amount of lending in each tract follows:
Census Tract
Dollar Amount of Loans Made
114.00
$2,247,000
115.00
$1,265,900
116.01
$25,000
116.02
$672,450
117.00
$9,386,946
118.01
$367,500
118.02
$58,800
119.02
$343,500
120.01
$909,810
120.03
$232,000
121.01
$372,700
121.02
$325,750
122.00
$1,367,582
Reflecting the current economy and tighter regulatory environment, Neighborhood National
Bank made fewer loans in the past three years, than in previous years. However, there are signs
that the economy and the Bank have "turned the corner" in order to be able to assist the City of
National City's businesses and individuals. A small bank, Neighborhood National Bank's goal
has always been to help make a big difference in the communities it serves. There is no question
that the City of National City's CDARS deposits have assisted Neighborhood National Bank in
its efforts to accomplish this goal.
Neighborhood National Bank currently has approved 2 apartment building loans totaling
$1,980,000, anticipated to close first quarter, 20.1,4
Debbie Landstedt
VP Community Development Officer
Neighborhood National Bank
Revised 12'31/2013