CDFI Banks & Thrifts Outperform Peer Groups on NCIF Social Performance Metrics

The NCIF Social Performance Metrics are a suite of transparent measures that use publicly available home-mortgage lending and branch location data to create positive screens; identifying institutions that are highly active in low income communities. Using these metrics, NCIF or any other investor or stakeholder in the community development finance industry is able to identify banks and thrifts that direct a large proportion of their lending and financial services to underserved, low income communities.

As the table highlights, CDFI banks and thrifts have a higher percentage of their home lending and branch locations that are located in and focused on low- and moderate- income communities.

• The median CDFI bank has a median DLI-HMDA score of 58.98%. This means that for every $100 of home lending generated by the bank, almost $59 dollars is being lent to a resident of a low- to moderate- income community. This figure is over 3 times greater than the median for each of the peer groups non-mission oriented peer groups and is also well above the median score for all minority banks and thrifts. For the first three groups, the highest median would result in just over $19 of lending being provided to a lower income area.
• The median CDFI bank has a DDI score of 76.79% which is over 2.5 times greater than the median for “Top-Ten” banks and is over 5 times the median for all domestic banks. For CDFIs, the vast majority of branch locations are located in low- and moderate- income communities, providing the residents of distressed communities the sustainable banking products and services that serve as an alternative to the irresponsible and predatory financial service providers located throughout these neighborhoods.

For more information on the NCIF Social Performance Metrics or to learn more about supporting the CDFI banking sector, please feel free to contact us using the contact information on the right.

Click the image to download a PDF of the chart.