Independent Banker - February 2024 - 58

THE HARBOR BANK
REVITALIZES A
DOWNTOWN HUB
In between funding the smaller
projects that are its bread and
butter, The Harbor Bank of
Maryland in Baltimore recently
participated in a high-profile civic
project: syndicated loan facilities
of $130 million, led by Truist, that
renovated the Baltimore Arena, now
renamed the CFG Bank Arena.
" It's a historical arena that you
can see from our headquarters, "
notes John Lewis, president
and CEO of The Harbor Bank of
Maryland. " We were excited to be a
part of that. "
The arena is an economic hub for
downtown Baltimore. " We at Harbor
Bank are huge believers in the city
of Baltimore, and we love having
an arena that serves as a magnet
to bring people into the city and
experience the city firsthand, " Lewis
says. " That's a great catalyst to this
city's continued growth. "
The project exemplifies how
community banks are joining
larger national interests with local
community concerns. Lewis is
especially gratified that several of
The Harbor Bank's small business
clients benefit from the increased
economic energy.
" We've been working for years
with developers on the periphery
of the arena, " Lewis reports. " This
supports the work they've been
doing. Attracting people to attend
events creates the vibrancy in
residential and small businesses. "
James Sills, president
and CEO of M&F
Bank, says ECIP
has been a gamechanger
for the
community bank.
of the banking industry, such as risk,
compliance and technology.
Williams believes these investments
reflect an awareness that this is a
constructive way to support minority
and underserved communities. " [Large
banks] are not equipped to serve these
communities well, " Williams says.
" JPMorgan Chase is not going to locate
a branch in Helena, Ark. That's not its
business model. "
As well as purchasing equity or
making deposits, larger banks are
partnering with CDFIs and MDIs
to fund loans. Bank of America
organized the widely publicized
three-year $78 million loan facility to
the National Football League (NFL)
that a consortium of MDIs and CDFIs
made. Such high-profile loans provide
interest income as well as a significant
boost for these banks' public profile.
" When MDIs aggregate their
resources to lend to those larger sports
leagues [and other asset classes], it's
a great way for us to showcase our
economic power, " says Sills; M&F
Bank participated in the funding.
" That helps other corporations say,
'Maybe [we] should do the same thing.
If they have a large project, they can
partner with a group of MDIs.' It's a
great win-win for all. "
58 // ICBA Independent Banker // February 2024
Kelly adds that the high-profile NFL
deal has generated other opportunities.
" It has cascaded into discussions with
individual teams of the NFL, " he says.
" That's less likely to have happened had
the NFL not taken on the leadership
and engagement with MDIs. "
Williams agrees that corporate
support of CDFIs and MDIs is surging.
" [One large bank] told us that their
customers are asking them to work
with us, " he says. " We've done at least
a dozen loan participations with large
money center banks. There's a growing
awareness among large corporations
and small businesses about missionfocused
banks. People want to ... use
lenders and deposits aligned with
their mission. They're requiring larger
banks to partner with us. "
THE VALUE OF AN MDI
If cash-rich private entities supply
the means, MDIs bring their own
assets: firsthand knowledge of their
communities and deep relationships.
These vital resources guide the best use
of dollars. " We're experts in loaning to
our communities, " says Pape. " If large
organizations or larger banks want
to help make an impact, they should
put liquidity in a minority-owned
bank that is already loaning money to
CFG Bank Arena rendering courtesy of Oak View Group/CFG Bank; James Sills by Eckel Vaughan

Independent Banker - February 2024

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