City National Bancshares Corporation (CNBC) today announced that it has
completed its $20 million recapitalization of City National Bank of New
Jersey (CNB). This recapitalization is a crucial step in the turnaround
of the bank, which experienced difficulties during the economic downturn
of 2008, which was especially devastating for African American
communities and the banks that serve them. Skopos Impact Fund and The
Prudential Insurance Company of America, a subsidiary of Prudential
Financial, Inc. (NYSE:PRU) are key investors in the recapitalization.
Other significant investors in the transaction include: New United
Corporation; East Coast Capital Holdings, Ltd., a Specialized Small
Business Investment Company; and Industrial Bank, a subsidiary of IBW
Financial Corporation (OTCQB:IBWC).
In addition to the financial investors, CNB acknowledges the significant
support that it has received from Sullivan & Cromwell LLP; J.P. Morgan;
and Goldman Sachs Urban Investment Group. Along with technical
assistance provided by the Office of the Comptroller of the Currency;
the Federal Reserve Bank; the Federal Deposit Insurance Corporation; and
the Department of the Treasury, this recapitalization will enable CNB to
continue its role as the only regulated community development financial
institution (CDFI) headquartered in New Jersey.
“Founded in Newark in 1973, the Bank has been a crucial source of
capital and banking services for families, local small businesses,
faith-based institutions and nonprofit organizations in our
neighborhoods,” said, Hon. Ras J. Baraka, Mayor, City of Newark. “Given
the current climate in our country, the Bank is needed more than ever to
provide financial services and drive redevelopment,” added Mayor Baraka.
“Prudential is proud to support this leading institution and trusted
Newark partner,” said Mark Grier, vice chairman for Prudential
Financial. “Our investment will enable City National Bank to build upon
its legacy by providing a suite of innovative financial services to
address changing community needs. Like our investment in Harlem’s Carver
Bank, this funding helps ensure that minority focused banks continue to
play a vital role in community economic development.”
“We believe in a comprehensive approach to neighborhood revitalization
including housing, schools, businesses, and not-for-profits, all
important assets which CNB finances and sustains across Newark's
communities,” said Margaret Anadu, Managing Director in the Goldman
Sachs Urban Investment Group. “By continuing to serve individuals and
institutions with mission-driven capital, CNB will grow and thrive along
with Newark.”
Dr. Clyde Pemberton, President and CEO of New United Corporation said,
“As a long standing customer of City National Bank, I have firsthand
knowledge of the progress being made. We made this investment, as did
other customers, to validate the significance of the Bank's mission and
demonstrate our confidence in the growing capabilities and bright future
emerging under the leadership of Preston D. Pinkett III, Chairman and
CEO of CNB.”
“For more than four decades, City National Bank has worked to revitalize
urban areas. We are excited that a number of top-tier impact investors,
have deemed our efforts worthy of support,” said Mr. Pinkett.
“Global investors are seeking investment opportunities to help address
social issues in developed and emerging markets,” says Lisa Hall,
Managing Director of Impact Investing at Anthos Asset Management, which
is based in Amsterdam and manages Skopos Impact Fund. “Skopos Impact
Fund seeks to promote human dignity and justice through impact
investing. Access to capital and affordable financial services are
required to empower individuals and uplift communities around the world.
Some of the most pressing social problems of our era will be solved by
institutions like City National Bank that provide critical services in
places that are underserved by mainstream financial institutions,” said
Ms. Hall.
City National Bank began in 1973 when community leaders came together in
the wake of the Newark riots to establish a financial institution to
address the major economic voids in Newark. The Bank is currently among
the ten largest African-American banks in the country. It is
headquartered in Newark and currently has branches in NY (Harlem and
Brooklyn) and NJ (Newark and Paterson). Through its new and
sophisticated Internet banking program, its services are now available
nationwide.
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