NEW IBERIA, La., April 26, 2011 (GLOBE NEWSWIRE) -- The Federal Home Loan Bank of Dallas (FHLB Dallas) and IBERIABANK are pleased to announce they have awarded a $105,000 Affordable Housing Program (AHP) grant to Southern Mutual Financial Services (SMFS) to assist 15 low-income, first-time homebuyers with down payment and closing costs.
"The AHP grant has played a dynamic part in low-income families being able to obtain their homes," said Clem Matthews, an administrator for SMFS. "The families we help have satisfactory credit scores and income levels, but may not have the savings to pay closing costs. With the help of the grant, in many cases the families don't have to come out of pocket for any of their closing costs."
Five families have been assisted by the AHP grant thus far, including a single mother and her son in Lafayette, Louisiana who recently received $7,000 from the grant to assist with their down payment. The family also received $25,000 from Lafayette City-Parish to further reduce their homebuyer costs.
"They will go from paying $665 a month in rent for a house that is not in the best condition to a payment of $506 a month. The house has recently been renovated so it is almost like they are moving into a brand new home," Ms. Matthews said.
SMFS worked with IBERIABANK in New Iberia, Louisiana, to obtain the AHP grant. "I wouldn't trade IBERIABANK for the world," Ms. Matthews said. "They've been a major partner, and so helpful throughout the entire application process."
In 2010, FHLB Dallas awarded more than $420,000 in AHP grants through IBERIABANK to support projects in Louisiana, and another $180,000 through IBERIABANK's Arkansas branches to support projects in that state.
"IBERIABANK is committed to assisting families in our community obtain quality, affordable housing," said Carrie Curet, vice president and community development officer at IBERIABANK. "IBERIABANK has utilized FHLB Dallas's AHP grants for several years, and we will continue to use the program to help meet the affordable housing needs in our region."
SMFS is a nonprofit, certified community development financial institution (CDFI) that received certification in 2002. SMFS's principal function is mortgage lending. The CDFI's clients are typically homebuyers that would not qualify for a mortgage loan through a regular commercial financial institution. SMFS has also done a limited amount of small business lending as well.
AHP funds are used to purchase, construct, and/or rehabilitate single-family, transitional, and multifamily projects for very low- to moderate-income families. Each year, FHLB Dallas returns 10 percent of its profits to the communities served by its member institutions in the form of AHP grants. In 2010, FHLB Dallas awarded $18.5 million in AHP grants through member institutions, like IBERIABANK, including more than $2.2 million in Louisiana, to support 284 housing units within the state. In 2011, FHLB Dallas is offering $10.5 million in AHP grants through its member institutions.
About the Federal Home Loan Bank of Dallas
The Federal Home Loan Bank of Dallas is one of 12 district banks in the FHLBank System created by Congress in 1932. FHLB Dallas, with total assets of $39.7 billion as of December 31, 2010, is a member-owned cooperative that supports housing and community development by providing competitively priced loans and other credit products to more than 900 members and associated institutions in Arkansas, Louisiana, Mississippi, New Mexico, and Texas. For more information, visit the FHLB Dallas website at fhlb.com.
The Federal Home Loan Bank of Dallas logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3013
IBERIABANK Corporation is a multi-bank financial holding company headquartered at 200 W. Congress Street in Lafayette, Louisiana. The Company has 210 combined offices, including 145 bank branch offices in Louisiana, Arkansas, Tennessee, Alabama, Texas, and Florida, 26 title insurance offices in Arkansas and Louisiana, and mortgage representatives in 48 locations in 12 states. The Company's common stock trades on the NASDAQ Global Select Market under the symbol "IBKC."
CONTACT: Corporate Communications Federal Home Loan Bank of Dallas www.fhlb.com (214) 441-8445