2021 CSBS Community Bank Case Study Competition Journal

SECOND PLACE: University of Arkansas

goes against the historical norm within the finance industry and is setting the standard for companies across the United States. The second way Southern acts as a leader revolutionizing its industry is through its unique legal structure. In addition to being a CDFI, in 2017, SBI became the only Certified Benefit Corporation (B-Corp) in Arkansas. The B-Corp status legally requires Southern Bancorp to consider the impact of their decisions, not only on their employees, customers and shareholders, but also on the broader community and environment. According to Mr. Williams, the move to become a B-Corp allows the bank to balance its mission and margin more effectively and better serve its community by protecting SBI from being sued by investors for not maximizing profits, a more likely scenario if it had remained a C-Corp. Mr. Williams envisions Southern Bancorp as a bicycle. B-Corp status legally allows the front wheel of the bike to be the “mission wheel” that directs the organization, and the back wheel of the bike is the “margin wheel” that propels the organization towards its mission. According to the Certified B Corporations website, Certified B Corporations are “leaders of a global movement of people using business as a force for good,” they “meet the highest standards of verified social and environmental performance, public transparency and legal accountability” and aspire to use the power of business to solve “Society’s most challenging problems [that] cannot be solved by government and nonprofits alone. 7

In addition to being a CDFI, in 2017, SBI became the only Certified Benefit Corporation (B-Corp) in Arkansas.

The third way Southern Bancorp is a leader in its communities is through innovative products and services. Southern Bancorp Community Partners offers a “Learning Center” and an “Opportunity Center” free of charge to members in their community. The goal of these centers is to help customers improve their financial education and combat generational poverty. A good example of a service offered by each of these centers is the “ABC’s Financial Success Brochure” and the “eHome Money Homebuyer Education Online Course.” The Financial Success Brochure, which is free to anyone, not just the bank’s customers, provides tools and knowledge for readers to assess their own financial situation and build a financial plan to help them reach their goals. It also offers continuing education resources for those who want to improve their financial health. The Homebuyer Education Course aims to help customers build wealth and “creates knowledgeable and default-resilient buyers ready for a lifetime of homeownership”. The other services provide a plethora of resources that range from teaching financial literacy, to providing savings plans, to assisting in tax

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