Member Stories

CLAREMONT, California – Michael M. Lasher, President and CEO of Community Commerce Bank, isn’t as concerned with profits and dividends as you would believe. 

Unlike most of America’s financial institutions, his bank is not simply bound to a corporate board or shareholders that evaluates his successes. Lasher runs the country's only industrial loan company (ILC) chartered bank owned by a non-profit organization, the East Los Angeles Community Union (TELACU). His vision for Community Commerce Bank is to empower the economic growth of East Los Angeles and underserved California communities in order to drive supporting revenue so TELACU can continue to improve the quality of life for residents, create educational opportunities for the next generation, and develop community programs. 

We are mission-driven to do good and promote growth and prosperity in the East Los Angeles area.

 

“We essentially have one shareholder, and our bank isn't purely driven by profitability and dividends,” Lasher shared in a recent interview. “We are mission-driven to do good and promote growth and prosperity in the East Los Angeles area.”

Lasher noted that Community Commerce Bank is certainly defined as a bank, but is chartered as an ILC so it doesn’t offer services like checking accounts or debit cards, but rather their customers enjoy high-rate savings and other deposit accounts as a way of helping local customers save their hard-earned dollars. This unique designation allows Lasher to champion community-building projects.    

For instance, Community Commerce Bank is funding a $2.5 million church, a facility that will include a daycare, a school, and a location for the community to congregate. “This will be great for the community,” Lasher said. “Residents will have a place to meet and grow, and the school will greatly benefit parents and the community.  We try to look at the needs of future generations and to help prepare our children to be successful. The school that they're building is a phenomenal opportunity to improve education for the community.”

For the most part, Community Commerce Bank originates loans for multifamily housing, small businesses, and commercial endeavors. “Frankly, we do a lot of lending in areas that traditional banks won't touch or large institutions won't consider,” claims Lasher, “We are really here to help the community achieve some of their goals, help someone purchase their first piece of property, help provide an office building for a business, or support a first rental property.” 

We wouldn't be what we are today without our relationship with Federal Home Loan Bank of San Francisco

 

He added that the bank offers high rates on savings and CD accounts as a way of helping local customers save their hard-earned dollars.

However, Lasher noted that much of their work couldn’t be accomplished without their membership with the Federal Home Loan Bank of San Francisco (FHLBank San Francisco).

”We wouldn't be what we are today without our relationship with the Federal Home Loan Bank of San Francisco,” said Lasher. The cooperatively-owned wholesale bank supports local lenders in Arizona, California, and Nevada. It’s a perfect match for Community Commerce Bank because the bank holds all of its loans that it originates in its portfolio and doesn’t sell any on the secondary market. Instead, we use the loans as collateral for advances from FHLBank San Francisco. The process provides us with funding to originate more loans. 

That's where FHLBank San Francisco helps deepen our toolbox to make things happen for our customers and the community.

 

“It's a flexible arrangement and gives us more freedom to invest in the community,” remarks Lasher. “We have a line of credit with them, and at a moment's notice, we can receive advances to meet the needs of our customers. As we work with our customers, the lending side doesn’t always match the timeline of our deposits. That’s where FHLBank San Francisco helps deepen our toolbox to make things happen for our customers and the community.”

Further, Lasher shares, “We don't do any cookie-cutter loans to sell on the secondary market. We've never sold any loans. That's not our bread and butter. We portfolio everything that we originate. If we decide to do a deal, we partner with the customer until the loan is paid off.” 

Teresa Bryce Bazemore, President and Chief Executive Officer of FHLBank San Francisco, said that the Bank’s relationship with Community Commerce exemplifies ways the FHLBanks support community lenders and, in turn, benefit the low- to moderate-income families who live in communities similar to East Los Angeles.

“There is broad discussion about the future role of FHLBanks in the financial services industry,” said Bazemore. ”What’s clear is that Community Commerce is able to do substantially more for their community because of their membership with FHLBank San Francisco. We need to ensure that Community Commerce and other institutions that are committed to strengthening working-class neighborhoods, seeding small businesses, and empowering their residents can depend on the support and liquidity that FHLBanks provide. I’m not sure other financial institutions can fortify community banking to the extent the FHLBanks can. We make community banking a priority.”

The mission-driven Community Commerce Bank has about $350 million in total assets. The average amount of their loans, usually for economic development, is near the $500,000 mark. “We don’t focus on big loans,” said Lasher. “We do a lot of small loans, as low as $50,000. And many of those go to people who wouldn’t have other options to start their small business.”

We're helping revitalize neighborhoods and support the people working to fix them up and fulfill their dreams.

 

Lasher described their loan guidelines as very forward-thinking. “We look at the projections of the potential for the property,” he said. “We don’t lend on the shiny new buildings where big-box retailers operate. We are in on the property that needs some paint, minor repair, and a little landscaping. We're helping revitalize neighborhoods and support the people putting in the sweat to fix them up and fulfill their dreams.”