The United States’ National Cooperative Bank (NCB) says it has recently closed a US$3.25m subordinated debt loan to Innovations Financial Credit Union.
Innovations is a low-income designated (LID) credit union and community development financial institution (CDFI) established in 1952 in Panama City, Florida. It will use the loan to support expansion of its services, including the recent acquisition of First National Bank Northwest Florida in Panama City.
With combined assets totalling $675m and nine branch locations staffed by around 95 team members, Innovations says it is now “poised to expand its reach and deliver innovative financial solutions to a broader customer base”.
Innovations worked with Olden Lane Securities LLC as advisor and placement agent, whose CEO, Michael Macchiarola, said: “As a low-income designated credit union and CDFI, Innovations brings critical financial services to communities that need them most. NCB showed up as a great friend to the credit union movement with this investment.”
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NCB has been providing subordinated debt loans to low-income credit unions for the past nine years, as part of its mission and vision of “people helping people”, said Bill Stewart, senior vice president, and credit union market leader for NCB.
“We are very proud of our many partnerships within the credit union movement,” he added, “and we strongly believe that these loans help bolster mission-oriented credit unions and their ability to create meaningful impact in the communities they serve.”
