On October 7, 1993, Community First, Inc., a nonprofit D.C. corporation ("CFI"), was founded with the mission of alleviating poverty and enhancing the health of distressed neighborhoods in D.C. by increasing the availability of credit and capital. CFI raised over $9.4 million in capital necessary to open the bank through the public sale of bank stock. CFI continues to be the largest shareholder of City First Bank stock and has now changed its name to Community First Enterprises, or CFE.
On August 4, 1995, the Bank's organizers submitted an application to the Office of the Comptroller of the Currency, OCC, for a certificate of authorization to commence business as a national bank, and also applied for FDIC federal deposit insurance. The insurance and charter were granted in November 1995. The community development focus of the bank, incorporated in the articles of the association, cannot be altered without 80% approval by bank shareholders.
Initial capital was raised from public and charitable sources. In December 1996, a $3.5 million Economic Development Initiative ("EDI") grant and $5 million HUD Section 108 loan guarantee for the sole use and benefit of the Bank was awarded. The D.C. Department of Housing and Community Development ("DHCD") awarded a $1 million community development block grant ("CDBG") to be used as capital for the Bank in 1997. Through these initial investments, CFBanc Corporation was formed as a D.C. for-profit bank holding company in April 1998. In June 1998, CFBanc Corporation commenced a private offering of shares, raising approximately $9.4 million from public and private sources. Capital was raised from socially responsible investors who purchased common shares of City First Bank of DC, NA, including Georgetown University, Fannie Mae, Cooperative Assistance Fund and most of the major banks with operations in DC - SunTrust, Bank of America, and Wachovia. Other national banks also purchased stock including JP Morgan Chase and Citibank. In a 2007 stock offering, PNC became a shareholder of City First Bank of DC stock.
In late 1998, City First Bank opened its doors with its founding CEO, Debbi Hurd Baptist and Chairman Lloyd Smith at the helm. In 2000, Cliff Kellogg succeeded Debbi Hurd Baptist upon her untimely death. He was succeeded by Edward Furash, and the bank is now under the leadership of Dorothy Bridges and her top notch staff.
On November 24, 1998, City First Bank obtained all necessary governmental approvals to open for business, and became a member of the Federal Reserve System. City First also became the 1000th member of the Federal Home Loan Bank of Atlanta, thus providing access to borrowings from the FHLB system. In April 1999, City First Bank was certified as a community development financial institution, CDFI, by the CDFI Fund. As a certified CDFI, City First Bank is eligible to participate in many of the technical and financial assistance programs sponsored by the CDFI Fund including Financial Assistance Awards, Bank Enterprise Awards and certification as a Certified Development Entity, or CDE. This designation was necessary to offer the New Markets Tax Credit (NMTC) program. City First Bank will maintain its CDFI and CDE status indefinitely. In July 1999, the Bank became a local and small business certified by the D.C. Office of Local Small and Disadvantaged Business Enterprises. This designation allowed City First to partner with larger companies for various contract opportunities with the government of the District of Columbia.
CFBanc Corporation and City First Bank both were certified as CDEs in December 2001 and the first allocation of tax credit authority under the NMTC program was sought in August 2002. The application was successful and in 2004, CFBanc Corporation, in partnership with The Bernstein Companies, was awarded $73 million in NMTC authority in the first year of the program. Most of that authority has been deployed on critical projects that have transformed their communities. Tivoli Square, Atlas Center for the Arts and Town Hall Education, Arts, Recreation Campus, or THEARC, are 3 of the major projects financed by the bank through its first round of NMTC authority. The bank also was a minority partner in the 2005 NMTC allocation with the Charter School Development Corporation. The Thurgood Marshall Public Charter School, a $14 million deal, was financed through that allocation.
Based on the outstanding performance of the bank in the first round of NMTC, a bank affiliate was awarded additional NMTC authority in 2006 in the amount of $90 million. Restoration of the American Brewery in Baltimore, for use as the headquarters for a Maryland state-wide social service agency, Humanim, and permanent financing for the E. L. Haynes Public Charter School in Washington, are 2 of the major projects financed through this most recent allocation. Those deals closed in late 2007 and early 2008 respectively.
Consistent with our mission, City First has become a major player in the community development sector of Washington. From 2004-2007 we have originated over $153 million in loans for small companies and non profit organizations. The financing is for affordable housing development, charter schools, small businesses, and working capital for non profit organizations. We have raised and deployed $120.8 million in New Markets Tax Credit financing for projects that transform low income communities such as THEARC in Congress Heights and the E. L. Haynes Public Charter School on Georgia Avenue. Historically between 75% - 84% of our loans are in low to moderate income census tracts. City First financing has helped to create or retain 2,064 jobs, build or preserve 1,474 units of affordable housing and developed over 621,407 square feet of space in community facilities.
We are proud of the community we serve and our legacy in a very challenging market. We thank all of our customers, shareholders, board members, staff and our many partners for your role in our success.