2021 CSBS Community Bank Case Study Competition Journal

2021 COMMUNITY BANK CASE STUDY COMPETITION

financial strain. Following defensive measures to help their customer base, SBB went on the offensive by increasing cash reserves and reopening closed accounts for the oncoming stimulus checks issued by the federal government. The reopened accounts, mostly closed due to bounced checks, gave those most in need a chance to collect the stimulus. During a time of uncertainty and financial unrest, SBB stepped in and helped customers, non- customers, and a community who were most in need. SBB strengthened its reputation as a bank helping disenfranchised groups by heavily participating in the Payroll Protection Program. The primary focus was to lend PPP funds to small businesses who had been stepped over by larger corporations. The bank’s small loan share was well above the national average for smaller loan sizes, and nearly all their PPP loans were in CDFI target markets for low-income communities. Southern CEO Darrin Williams regarded the call with President Trump to which he was invited as a transformational moment. With backing of larger institutions acknowledging their inability to reach rural, poor communities and smaller borrowers, he was able to convince the Administration to allocate additional funding to CDFIs in successive rounds. Treasury’s substantial increase in PPP funding to CDFIs -- giving many communities and businesses the financial backing they needed to survive -- can be credited to the evidence and eloquence CEO Williams contributed during that call. Although the bank was occupied with closing branches and handling PPP loans, they still

managed to create some programs for the future after the pandemic. They created two apps which focused primarily on savings and financial wellness for younger customers in the digital age. These apps utilize algorithms that can track financial behavior to help customers make better decisions when saving money for the future. SBB takes great pride in a loan fund program they created which resulted in 128 grants to small businesses, all of which were rural, that could not secure a PPP loan. On the first day of PPP lending, a small Africa American owned radio station was passed over by the rush of big banks trying to secure funding. They only needed $8,000 to stay afloat, but when the day had ended, they returned empty handed. Within a twenty-four-hour period, SBB had processed $16M worth of loans, including the radio station who needed support. Actions like this are what led the bank to earn a seat at the table with the Trump Administration, which then allowed Darrin Williams to tell the story of SBB and how so many small businesses in rural America needed help. Diversity, inclusion, economic fairness has been core values of SBB since its creation. SBB’s dedication to serve in underserved communities where minorities and poverty are prevalent, even before the social justice issues that are facing America today, have set the organization apart. SBB continues to be leaders in the finance and banking industry through its executive make up, legal structure, and financial products today, and it is striving to further improve equality with respect to diversity inclusion and economic fairness through its policy recommendations.

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