Start Community Bank - 2011 in Review

[Lynn Smith]

It is amazing to think that one year ago, January 25, 2011, during a snowstorm – of course – we welcomed our community to the Start Community Bank Grand Opening and cut the ribbons at our Whalley and Grand Avenue branches.  We had received our official charter at the end of December 2010.  In a typical year, about 100 banks in the US  earn a charter.  In 2010 there were 3; and we were one of those three. 

1500 accounts and $17 million in deposits later, we want to take the time to thank our community for its support.  We also want to applaud our entire Start Team for their tireless efforts in bringing the bank to life, and in delivering our message to our neighborhoods. 

Since our inception - and even well before we officially opened - we are very proud of our accomplishments, especially on a pound for pound basis when compared to some of the larger institutions in our marketplace. 

As with most small businesses, we have a multi-year business plan that has chartered our course to profitability, which will then allow us to support our mission and vision to an even higher level.  You can help by referring us as THE place to bank to a friend or business.  We look forward to a productive 2012 and appreciate everyone's support as we continue to serve the greater New Haven community. 

Here are some highlights of our work to date:  

• The Federal government designates certain geographic areas as "target markets in need". We are proud to say that 60% of our loans are in these designated areas. Several of these loans were for the rehabilitation of multifamily housing that have increased the housing stock of affordable housing.  
• Over 50% of our deposits are with African Americans and Hispanics in these very same communities. That is a vote of confidence from our community.  
• We encourage creating wealth through savings.  Our Fast Start Savings rates are the best in the city at the moment. At the time this blog was written, we offered a rate of 55 basis points compared to the 1 basis point offered by some of the big box banks.  That .55% rate is guaranteed through April 15, 2012. 
• We listened to the community through neighborhood meetings, attendance at churches, community management team meetings, and direct contact with individuals. We heard 'give us an opportunity to get back into the financial mainstream'. We created the Second Chance Account that forgives minor past transgressions and after a period of positive behavior allows a customer to own a standard checking account will full functionality.  
• We have trained over 2000 young adults through our “Loot Camps” on understanding how the banking system works, how to pick a bank account, how to budget and save, to use credit wisely, and to learn defense against offers that are too good to be true.  
• We created the Youth @ Work direct deposit savings accounts for summer teen workers who had never owned a bank account, or who had paid a fee every week at a check casher. By partnering with the city payroll department, these workers had the option of direct deposit for the first time in the program.  40% of the youth who had summer jobs signed up. 40% of our new account holders saved more than $300. Not bad for a part-time minimum wage job for eight weeks!
• Our parent holding company, FCFC, contributed $200m to the Roof Project, a foreclosure mitigation effort. That effort has caused scores of families in New Haven to avoid foreclosure.  
• FCFC also helped fund through a grant the Elm City Resident ID card which has helped thousands of individuals in New Haven.  We are now researching the possibility of enhancing the Elm City card by making it a prepaid, reloadable debit card without the outrageous fees that some of those products carry.
• We show up.  We are involved literally in virtually every major important issue involving the community. We regularly attend community meetings, community events, and work block by block to be in your corner.