July 7, 2020
Brentwood Bank is a state-chartered savings bank that has served the South Hills area of Pittsburgh for nearly 100 years. Now the community bank is looking to expand its footprint with some help from FHLBank Pittsburgh’s Community Lending Program (CLP).
Providing reduced-rate funding for a broad range of economic development purposes – and with terms up to 30 years – CLP benefits both the bank and its customers.
"Particularly in this environment, where deposits are not keeping up with loan growth, having access to this affordable funding is a tremendous advantage," says the bank's SVP of Loan Operations, Carrie Havas. "It gives us the flexibility to fund a broad range of projects, and because we know what our funding cost will be, we can better price our loans to match, which often saves our customers money."
In the past three years, Brentwood Bank has used nearly $56 million of CLP funds to support six multi-family rental housing projects and 11 small businesses. The funding included $5.4 million used to purchase a 90-unit, multi-family complex in Wilkinsburg, a low-income part of Pittsburgh. The units are priced at fair-market rents.
Brentwood Bank uses CLP to fund loans for multi-family housing in low- and moderate-income areas because, as Havas says, "The need for affordable housing is everywhere. Rents are going up, and lower-income families can't afford as much. Property owners want to make improvements while keeping rents affordable. CLP gives us the ability to help." Brentwood Bank uses CLP to support small businesses and economic development in much the same way. A recent $1 million CLP loan was used to refinance debt and improve the cash flow for a shopping center in suburban Penn Hills, just east of Pittsburgh. Another $4.6 million CLP loan facilitated the purchase of a seven-unit shopping plaza in Pittsburgh's Lawrenceville neighborhood. The tenants in both retail centers provide goods and services that are vital to the residents of these moderate-income communities.
According to Havas, "Our partnership with FHLBank helps us support these investments in our communities. FHLBank gives us the kind of tools we need to provide our customers the type of funding they're looking for. That, in turn, helps us grow."
Providing reduced-rate funding for a broad range of economic development purposes – and with terms up to 30 years – CLP benefits both the bank and its customers.
"Particularly in this environment, where deposits are not keeping up with loan growth, having access to this affordable funding is a tremendous advantage," says the bank's SVP of Loan Operations, Carrie Havas. "It gives us the flexibility to fund a broad range of projects, and because we know what our funding cost will be, we can better price our loans to match, which often saves our customers money."
In the past three years, Brentwood Bank has used nearly $56 million of CLP funds to support six multi-family rental housing projects and 11 small businesses. The funding included $5.4 million used to purchase a 90-unit, multi-family complex in Wilkinsburg, a low-income part of Pittsburgh. The units are priced at fair-market rents.
Brentwood Bank uses CLP to fund loans for multi-family housing in low- and moderate-income areas because, as Havas says, "The need for affordable housing is everywhere. Rents are going up, and lower-income families can't afford as much. Property owners want to make improvements while keeping rents affordable. CLP gives us the ability to help." Brentwood Bank uses CLP to support small businesses and economic development in much the same way. A recent $1 million CLP loan was used to refinance debt and improve the cash flow for a shopping center in suburban Penn Hills, just east of Pittsburgh. Another $4.6 million CLP loan facilitated the purchase of a seven-unit shopping plaza in Pittsburgh's Lawrenceville neighborhood. The tenants in both retail centers provide goods and services that are vital to the residents of these moderate-income communities.
According to Havas, "Our partnership with FHLBank helps us support these investments in our communities. FHLBank gives us the kind of tools we need to provide our customers the type of funding they're looking for. That, in turn, helps us grow."