WASHINGTON (2/26/16)--The National Cooperative Bank (NCB) will invest $5 million in the National Federation of Community Development Credit Unions’ Community Development Investment (CDI) Program.

The announcement was made this week by Cathie Mahon, federation president/CEO, and Steven Brookner, NCB president, at the federation's fifth annual Community Development Financial Institute Credit Union Roundtable during the Credit Union National Association’s Governmental Affairs Conference.

NCB and the federation will form a lending partnership for Secondary Capital II loans, to provide up to $2 million in combined investments.

Secondary Capital II is an amortizing subordinated loan that can be counted towards a credit union's net worth and can be leveraged by growing community development credit unions to expand safe and affordable lending in low-income communities.

"With each of the loans we make in partnership with NCB, the federation is able to help credit unions expand innovative products, extend their reach and better serve their communities," Mahon said.

Added Brookner: “NCB and the federation have mutual missions, providing vital banking products and services to an underserved market, and we look forward to working together to help communities thrive."

The federation's CDI Program provides capital resources to its member credit unions seeking funds to increase liquidity, boost net worth, mitigate risk and introduce innovative products. Since its inception in 1982, the CDI Program has invested more than $120 million in community development credit unions.