Neighborhood Bancorp

Neighborhood Bancorp is the primary owner of Neighborhood National Bank and the sole owner of Neighborhood Bancorp Advisors.

Loans:  Neighborhood National Bank

Neighborhood National Bank (NNB) is chartered to provide a full range of traditional bank services, as well as providing loans for economic development and affordable housing projects.  NNB’s mission is to provide underserved communities financial products and services that help customers build wealth through personal and home mortgage loans to individuals, loans to businesses, and savings and investment by all customers.  NNB will continue to provide a working environment where employees can expand professionally and will be rewarded for achievement.  Further, NNB seeks to provide its shareholders, and, indirectly, Bancorp's shareholders, with a fair return on their investment, balanced with the need to provide services to the community.

NNB provides banking services to customer groups that are currently underserved in its geographic market area.  These groups include individuals, affordable housing advocates, non-profit corporations, faith based organizations, and other community based organizations.  The groups, or the individuals represented by the groups: (i) earn less than 80% of the median family income for San Diego County; (ii) are ethnically and racially diverse; (iii) do not have ready access to traditional financial institutions and systems.

Grants:  Neighborhood Opportunities Corporation – a Nonprofit Corporation

Neighborhood Opportunities Corporation (NOC) is a non-profit affiliate of Bancorp.  NOC’s Financial Literacy Program serves low to moderate-income communities in the San Diego area.  This program helps to build financial stability and encourages entrepreneurship and sustainability.  In addition, this program helps new immigrants understand U.S. financial institutions and encourages sound financial management.  Program participants are residents of city communities that include adult students, new immigrants, welfare to work populations and youths at risk.  A majority of the program participants are married couples looking for safe and sound ways to manage their money, particularly planning for home ownership and providing for the education of their children.  As of the end of 2004, the total number of individuals that have successfully completed this program was approximately 400.  By the end of 2006, NOC’s alumni will consist of a minimum of 1,700 participants in the San Diego area.  Initially, seeded with a grant from NNB and Bancorp, NOC has been self-sustaining through private and public monies garnered to support its educational efforts.

Equity:  Neighborhood Capital Advisors

Currently, Neighborhood Capital Advisors (NCA), with a qualified partner, is in the market research and development stage of a mezzanine loan fund, which will total approximately $20 million.  This fund is expected to offer loans to small businesses to support their growth and expansion.  It will focus on businesses in low and moderate-income census tract areas.  The loans will range from approximately $100,000 to $1,000,000, will be for terms of up to approximately five years, and will typically be subordinate to lead bank financing.  This particular niche market involves more risk than is typically assumed by traditional banks, especially given the types of borrowers targeted and the relatively small size of the loans that will be offered.  The effort will be successful only if NCA and its partner can raise the funds required in a limited offering to institutional investors.