The CDFI Banking Sector: 2010 Annual Report on Fianancial and Social Performance

The 2010 Annual Report provides background on the Financial and Social Performance of the CDFI Banking Sector. As of December 31, 2010, there were 85 CDFI banks, with assets of $25.9 billion and loans of $16.6 billion. This year's analysis reveals that CDFI Banks represent a growing sector in terms of numbers, asset size, and outstanding loans. The CDFI Banking sector outperforms several peer groups on social impact as measured by NCIF's Social Performance Metrics: CDFI Banks routinely have DDI and DLI-HMDA percentages 3-5 times higher than peer groups such as "All Banks", "Banks with Assets ≤$ 2 Billion", and "Top-Ten" banks by asset size. Though financial times are difficult for CDFI banks as they are serving low- and moderate income communities which are more vulnerable, the social impact of these institutions warrants greater support from stakeholders in the form of investments, policy changes, and advocacy.