Beneficial State Bank is an Oakland, California-based community development bank. Founded by Tom Steyer and Kat Taylor in June 2007, Beneficial State Bank functions as a regulated financial institution, but provides commercial banking services to underserved small and medium-size businesses, nonprofits, affordable-housing developers, community facilities, as well as families and individuals in the Bay Area. In August 2010, the bank signed an agreement to acquire ShoreBank Pacific, a Washington-based community bank. Together the merged banks would have $300 million in combined assets and serve California, Oregon and Washington. In January 2013, the bank acquired 90% of the stock of Albina Community Bank, based in Portland, Oregon.
Founders
and his wife, Kat Taylor, founded OneCalifornia Bank and OneCalifornia Foundation, providing $22.5 million as capital.
Mission and structure
The bank maintains a triple bottom line, seeking to be profitable, promote environmental sustainability and expand economic opportunity in underserved communities. Banking services are integrated with financial literacy, technical assistance and business education provided by the OneCalifornia Foundation. Steyer and Taylor founded the bank and foundation to ensure profits are reinvested in the community. Steyer and Taylor take no economic benefit or repayment from the Bank. All of the non-voting economic shares of the Bank's holding company are held by the OneCalifornia Foundation. 100% of the voting shares are held by Taylor and Steyer. OneCalifornia Foundation is overseen by an independent board.
Services and products
Beneficial State Bank's services and products available to individuals include: home loans; home equity lines of credit; home improvement loans; personal lines of credit; money market accounts; and savings and checking accounts. Business services and products include: checking accounts; money market accounts; online cash management; and commercial lending including lines of credit, term loans, commercial real estate loans and loans guaranteed by the Small Business Association. Beneficial State Bank also provides banking products and services for non-profit organizations, including: checking and savings accounts; assistance bridging capital campaigns; financing facilities and real estate; money market accounts; managing deposits and payments; and CDARS, the Certificate of Deposit Account Registry Service, which allows qualified organizations to invest up to $50 million and be eligible for FDIC insurance on every dollar.
Lending
Beneficial State Bank was founded to provide assistance to individuals in low wealth communities, including entrepreneurs and existing businesses. The Bank’s loans provided assistance to John Bailey of Volunteers of America Bay Area and also helped multiple nonprofit organizations and businesses with cash management services intended to increase administrative and operational efficiency. In partnership with payday loan issuer LendUp, Beneficial State Bank also issued credit cards, primarily targeting consumers with poor credit scores or damaged credit files.
ShoreBank Pacific acquisition
In August 2010, OneCalifornia Bank announced it will acquire ShoreBank Pacific, the Ilwaco, Washington-based community bank. ShoreBank Pacific specializes in sustainable lending to the agriculture, renewable energy, and small business sectors, and has offices in Portland, Oregon and Seattle, Washington. Together the banks would have $300 million in combined assets.
Rebranding as Beneficial State Bank
In July 2014, One PacificCoast Bank rebranded to become Beneficial State Bank, initially known as OneCalifornia Bank, and then One PacificCoast Bank.
Partnerships and initiatives
Through its OneCal Community Connects program, OneCalifornia Bank and the OneCalifornia Foundation have formed partnerships with Bay Area community-based organizations, including the Chabot Space & Science Center and C.E.O. Women.
Recognition
In 2010, the University of San Francisco awarded Beneficial State Bank the USF California Prize, which "recognizes significant service in pursuit of the common good of society."
