New Mexico Bankers: A Step Above the Rest By Max Myers Page 4 When Foreign Policy Becomes Domestic Policy By Mark Anderson Page 10 A Productive Visit to Washington By John W. Anderson Page 6 PUB 23 | ISSUE 1 PUBLISHED BY NEW MEXICO BANKERS ASSOCIATION, FOUNDED IN 1906
Discover® Debit Gives You The Advantage. When it comes to your debit program, you should always have the upper hand. Discover® Debit puts you in control of the board with superior economics, marketing support, and personalized service. Checkmate. Debit that’s here for you.® Find out more at DiscoverDebit.com/Win Stay One Move Ahead of the Competition
OVER A CENTURY: BUILDING BETTER BANKS — HELPING NEW MEXICO REALIZE DREAMS The mission of the New Mexico Bankers Association (NMBA) is to serve member bank needs by acting as New Mexico banking’s representative to government, the public and the industry; providing resources, education and information to enhance the opportunities for success in banking; promoting unity within the industry on common issues; and seeking to improve the regulatory climate to the end that banks can profitably compete in the providing of financial and related products and services. ©2026 New Mexico Bankers Association (NMBA) | MBR Connect, formerly The newsLINK Group LLC. All rights reserved. New Mexico Bankers Digest is published four times per year and is the official publication for this association. The information contained in this publication is intended to provide general information for review, consideration and education. The contents do not constitute legal advice and should not be relied on as such. If you need legal advice or assistance, it is strongly recommended that you contact an attorney as to your circumstances. The statements and opinions expressed in this publication are those of the individual authors and do not necessarily represent the views of NMBA, its board of directors or the publisher. Likewise, the appearance of advertisements within this publication does not constitute an endorsement or recommendation of any product or service advertised. New Mexico Bankers Digest is a collective work, and as such, some articles are submitted by authors who are independent of NMBA. While a first-print policy is encouraged, in cases where this is not possible, every effort has been made to comply with any known reprint guidelines or restrictions. Content may not be reproduced or reprinted without prior written permission. For further information, please contact the publisher at (855) 747-4003. PRESIDENT’S MESSAGE 4 New Mexico Bankers: A Step Above the Rest By Max Myers, President, New Mexico Bankers Association EXECUTIVE VICE PRESIDENT’S MESSAGE 6 A Productive Visit to Washington By John W. Anderson, Executive Vice President, New Mexico Bankers Association WASHINGTON UPDATE 8 Banking Can Bridge the Political Divide By Rob Nichols, President and CEO, American Bankers Association 10 When Foreign Policy Becomes Domestic Policy By Mark Anderson, Legal and Legislative Assistant, New Mexico Bankers Association 13 Why SBA Lending Holds Steady When the World Does Not By Christopher Myers, CEO, B:Side Capital and B:Side Fund 14 Housing New Mexico Funding Impacts 18,000 Families and Homes $740 Million in Housing Support Provided in Fiscal Year 2025 By Kristie Garcia, Director of Communications & Marketing, Housing New Mexico 16 Driving Community Prosperity With Reciprocal Deposits By Joe Hooker, Chief Sales Officer, IntraFi 18 Citi Announces $60 Billion Commitment to Enhance Housing Affordability 21 How Middle Market Companies Are Preparing for the Year Ahead By Laura Simmons, New Mexico Division Sales Executive, Wells Fargo Commercial Banking 22 SW Graduate School of Banking Announces 2026 Programming Our Mission CONTENTS 2025-2026 NMBA Board of Directors President Max Myers Century Bank 100 S. Federal Pl. Santa Fe, NM 87501 President-Elect Aaron Emmert Pioneer Bank 3000 N. Main St. Roswell, NM 88201 Secretary-Treasurer Elizabeth Earls Capra Bank 400 Tijeras Ave. NW Albuquerque, NM 87102 Immediate Past President Kyle Beasley Bank of Albuquerque 100 Sun Ave. NW, Ste. 500 Albuquerque, NM 87109 Executive Vice President John Anderson NM Bankers Association 7801 Academy Rd. NE, Bldg. 2, Ste. 202 Albuquerque, NM 87109 TERMS EXPIRING 2026 Scott Czarniak First National 1870 7300 Jefferson St. NE Albuquerque, NM 87109 J. Chesley Steel Southwest Capital Bank 1410 Central Ave. SW Albuquerque, NM 87104 Sheila Matthews Four Corners Community Bank 500 W. Main St., Ste. 101 Farmington, NM 87401 TERMS EXPIRING 2027 Nicole Noto Wells Fargo Bank N.A. 200 Lomas Blvd. NW, 12th Fl. Albuquerque, NM 87102 Jay Jenkins CNB Bank PO Box 1359 Carlsbad, NM 88220 Jason Wyatt Western Commerce Bank 212 N. Canal St. Carlsbad, NM 88220 TERMS EXPIRING 2028 Paul Mondragon Bank of America 2125 Louisiana Blvd., Ste. 120 Albuquerque, NM 87110 Mark Horn Pinnacle Bank PO Box 1729 Gallup, NM 87305 Ken Clayton Western Bank 320 W. Texas St. Artesia, NM 88210 3
PRESIDENT’S MESSAGE NEW MEXICO BANKERS: MAX MYERS President, New Mexico Bankers Association The Washington Summit was a great success. Thanks to our NMBA President, John Anderson, and fellow local bankers Jay Jenkins, Liz Earls, Jason Wyatt and Gina Ortega who traveled to Washington, D.C., for the event. As usual, John did a great job of setting up meetings with our senators and representatives to discuss the key banking issues that we are concerned about. Bank fraud is always one of the highest profile topics, along with credit card fees, stablecoins and regulation. I want to give a special shout-out to Sen. Ben Ray Lujan and his staff. For two years in a row, Ben Ray has spent valuable one-on-one time with the New Mexico Delegation, and the senator is a strong supporter of banking in New Mexico. Connections outside of our meetings included dinner with Lenwood Brooks from the Dallas FHLB, Rodney Hood, the former acting comptroller of the currency, and former Congresswoman Yvette Herrell. John has developed great connections with these leaders in the financial institution space. Next year, I hope more fellow bankers will join us for this great opportunity to connect with our legislative leaders. On another note, our annual Lenders Conference is scheduled for Friday, April 24, in Albuquerque. This is a great opportunity to help our bankers sharpen their skills and connect with fellow bankers to share ideas. Our reviews of this event in previous years have been extremely positive. Speakers will include regulators and motivational speakers. Also, Mark Anderson recently sent out a save the date for our annual convention in Santa Fe in June, so be on the lookout for more information about that. We are staying at the La Fonda on the Plaza. Special room rates are available for the initial block of rooms. Santa Fe is my hometown, so I am hoping we can roll out the red carpet for our bankers and guests. As usual, we will have some great speakers and events for everyone. La Fonda has a great docent tour that they will set up for us to learn about the history of this great hotel. We have also arranged lunch at the Santa Fe School of Cooking with Cheryl Jaimison, our local foodie. Cheryl is a chef, cookbook author and food authority who has received four James Beard Awards. She will prepare a delicious meal for us to enjoy (with wine and margaritas) and will offer signed copies of her most recent book, “Perini Ranch Steakhouse,” or her classic cookbook, “The Rancho de Chimayo Cookbook, 50th Anniversary Edition.” Golf is scheduled at the Black Mesa golf course, a few miles north of Santa Fe. It is a great course and will challenge most of us. The overall theme of the convention is the Route 66 Centennial, which we will celebrate, and we will have many other opportunities to visit and enjoy each other’s company. A STEP ABOVE THE REST 4
I also wanted to share some of my favorite things to do in Santa Fe to help you plan your trip. • Eat at great restaurants like Sazón, The Shed, Joseph’s Culinary Pub and Santacafé. • Hike the Dale Ball Trails. • Walk Canyon Road. • Visit the Nedra Matteucci Galleries for Southwestern art. • Visit Shiprock Santa Fe for Native American artistry. • Enjoy the hot tub and a massage at Ten Thousand Waves. • Visit the New Mexico Art and History Museums. We are excited to welcome you to Santa Fe. If I can help with dinner reservations or other suggestions, let me know. Please join us and celebrate how special it is to be in the banking industry in our wonderful state! John Anderson, Liz Earls, Gina Ortega, Jay Jenkins, Max Myers and Jason Wyatt Our group speaks with Sen. Ben Ray Lujan Our group with Sen. Ben Ray Lujan Our group with the staff of one of D.C.’s many excellent restaurants Jay Jenkins and Max Myers 5
A PRODUCTIVE VISIT TO WASHINGTON JOHN W. ANDERSON Executive Vice President New Mexico Bankers Association I, along with several other New Mexico bankers, made the trip to our nation’s capital in early March to attend the annual ABA Washington Summit. We enjoyed a fantastic lineup of speakers, including Sens. Mike Rounds (R-S.D.) and Angela Alsobrooks (D-Md.), Federal Reserve Vice Chair for Supervision Michelle Bowman, Comptroller of the Currency Jonathan Gould, FDIC Chairman Travis Hill and Conference of State Bank Supervisors President and CEO Brandon Milhorn. The summit gave us an opportunity to advocate to our New Mexico congressional delegation on critical issues affecting our industry. During those meetings, we discussed the following matters: 1. Digital Asset Market Oversight Emerging digital asset models, including payment stablecoins, must operate under regulatory standards that protect consumers and prevent firms from bypassing banking industry supervision. The GENIUS Act prohibited interest, yield or rewards for stablecoin holders, though some companies are sidestepping that restriction through affiliates and exchanges, threatening community-based deposits and lending. We requested the closure of the interest payment loophole to preserve deposit stability and further support local lending. 2. Credit Card Market Preservation The Credit Card Competition Act (S. 3623 and H.R. 7035) and the 10 Percent Credit Card Interest Rate Cap Act (S. 381 and H.R. 1944) would impose government mandates on the credit card market, weakening transaction security, limiting community banks’ card offerings, reducing access to credit and eliminating consumer benefits like credit card reward programs. We encouraged our legislative delegation to oppose the Credit Card Competition Act and the 10 Percent Credit Card Interest Rate Cap Act. 3. Regulatory Threshold Reform Many regulatory thresholds have remained fixed for decades, even as the economy and banking sector have grown, extending requirements intended for more complex institutions to banks that were never meant to be captured. This imposes an unnecessary burden, discourages organic growth and dilutes supervisory resources. We requested that our delegation prioritize a one-time adjustment and the adoption of indexing, such as tying asset-based thresholds to nominal DP, to ensure regulatory thresholds EXECUTIVE VICE PRESIDENT’S MESSAGE 6
remain aligned with institutional size and risk. We also encouraged them to support H.R. 6553 and H.R. 7056, which advance these objectives by establishing tailored, indexed regulatory requirements. 4. Fraud Prevention and Accountability Fraud imposes a significant financial and emotional toll on consumers, with annual losses estimated at up to $195 billion. Banks invest heavily in prevention and detection, but criminals increasingly exploit social media platforms, enabling scammers to impersonate trusted institutions and deceive consumers. We requested that our congressional members support the SCAM Act (S. 3774 and H.R. 7548), which would require online platforms to verify advertisers, detect and remove fraudulent ads, and provide transparency into their advertising practices. It would also narrow Section 230 immunity, placing more responsibility on social media platforms to stop fraudulent advertising and protect consumers. 5. Cannabis Banking Legalization Thirty-nine states have legalized cannabis for medical or recreational purposes, yet federal law still exposes banks to potential civil and criminal penalties, as well as regulatory sanctions, for serving cannabis businesses. The SAFER/SAFE Banking Act would enable banks to serve state-licensed cannabis businesses, their employees and service providers in states where cannabis is legal. We requested that our congressional delegation support the SAFER/SAFE Banking Act, which would reduce cash-intensive operations by providing compliant access to depository institutions, making our communities safer and the cannabis industry more transparent to regulators, tax authorities and law enforcement. 6. Credit Union Regulatory Review Credit unions are increasingly moving away from their original mission of serving people of modest means within a limited membership field. Many are expanding into broader commercial markets, warranting a congressional oversight hearing to evaluate whether the credit unions — now a $2.4 trillion industry — still deserve preferential tax treatment. We also asked our delegation to support legislation that would prevent credit unions from purchasing banks. 7. Deposit Insurance Modernization FDIC insurance, paid for by banks, protects deposits in a well-capitalized and highly liquid banking system. As banking and the market for financial services continue to evolve, regulations such as the deposit insurance and resolution framework must keep pace, ensuring that any future modifications to coverage limits are empirically based, data-driven and indexed to inflation. We encouraged our legislators to urge the FDIC to broaden the scope of considerations used in determining “least cost” to include potential contagion or other unwanted impacts. Following our important work on Capitol Hill, we had a wonderful dinner with former Congresswoman Yvette Herrell, now serving as assistant secretary of agriculture for congressional affairs for the USDA; Rodney Hood, former acting comptroller of the currency and FDIC director; and Lenwood Brooks, director and vice president of government and industry relations for the FHLB Dallas. The trip was a meaningful reminder of the strength of our relationships — within our banking community and with our partners in Washington. The candid conversations, shared insights and collaborative spirit of the meetings left me optimistic about the work ahead. I am grateful to our congressional delegation and their staff for welcoming our perspectives. We will continue to advocate for a resilient and forward looking banking environment for all New Mexicans. 7
BANKING CAN BRIDGE THE POLITICAL DIVIDE WASHINGTON UPDATE ROB NICHOLS President and CEO American Bankers Association We all recognize the political divisions in this country and the difficulty in getting Republicans and Democrats to agree on the time of day, much less substantive policy issues. But as bankers who attended ABA’s recent Washington Summit in the nation’s capital learned, once you drill down past the headlines and the noise on cable news shows, you’ll find that not only is bipartisan cooperation still possible when it comes to banking — it’s happening. During the Summit, bankers had the opportunity to hear from lawmakers on both sides of the aisle, and what came across consistently was a commitment to ensuring that we have a strong, resilient banking sector that encourages economic growth and helps consumers and businesses thrive and prosper. As freshman Sen. Angela Alsobrooks (D-Md.) — who has emerged as a bipartisan dealmaker in her first several months on the job — observed on the Summit stage: “Our varying backgrounds often color how we see things, but that doesn’t mean we can’t come together and do great things.” At ABA, we agree with this statement — in fact, it’s been the bedrock of our approach to advocacy over the years. And if you look at the current session of Congress, you’ll see several examples of bipartisan cooperation on banking issues. One great example is the SCAM Act that is currently moving through both chambers of Congress, co-sponsored by Sens. Ruben Gallego (D-Ariz.) and Bernie Moreno (R-Ohio) in the Senate and Reps. Lou Correa (D-Calif.) and Dan Meuser (R-Pa.) in the House. This bill, which has strong support from both the ABA and state associations, targets the widespread problem of fraud perpetrated through social media. The bill requires companies like Meta to take reasonable steps to identify and remove fraudulent ads from their platforms since we know that’s where many scams start. The support for this bill on both sides of the aisle is a clear indication that lawmakers recognize the need to respond to the fraud crisis facing Americans. The SCAM Act is a commonsense 8
solution that will protect American consumers, and we’re working hard to ensure it becomes law. Please support this effort by visiting aba.com/takeaction and urging your lawmakers to cosponsor the bill today. Members of Congress in both parties have also come together in recent days on housing reform legislation, as well as bills that would make it easier for banks to access Federal Home Loan Bank resources to help fund community development projects, increase asset thresholds to make it easier for banks to qualify for an 18-month exam cycle, and crack down on credit repair scams. I say it often: The intermediation of capital, improving access to housing, and protecting Americans from growing threats like fraud and scams aren’t Democratic or Republican issues. They’re American issues. At ABA, our longstanding approach to advocacy has always been — and will remain — militantly bipartisan, and throughout much of our nation’s history, banking issues remained above the political fray. I don’t know if we can ever return to that, but we will continue to work with anyone in Washington — regardless of party — who appreciates the critical role America’s banks play in the country and shares our view that all Americans benefit from a clear, consistent bank policy environment that promotes economic growth and prosperity for all. Email Rob at nichols@aba.com. The intermediation of capital, improving access to housing, and protecting Americans from growing threats like fraud and scams aren’t Democratic or Republican issues. They’re American issues. bside.org hello@bside.org DAWN BECK 505.492.8120 WE’LL ROCK YOUR SOCKS OFF Partner with B:Side on your next SBA 504 or 7(a) project. 9
WHEN FOREIGN POLICY BECOMES DOMESTIC POLICY By Mark Anderson, Legal and Legislative Assistant, New Mexico Bankers Association If you study enough print or television media in America, then you inevitably become familiar with stock assumptions or phrases that are often deployed. One tried-and-true notion professed by the elite pundit class is that very few Americans pay attention to, let alone vote on, foreign policy matters. While that may be accurate in the most general sense, it tends to be an overly simplistic conclusion. It is true that most Americans don’t pay close attention to the day-in, day-out machinations of U.S. foreign policy, but many people have an innate sense of when reckless and costly foreign policy decisions are siphoning away energy and resources needed to address pressing domestic issues, even if it can’t be fully articulated and is perhaps vaguely felt. However, there are times when foreign and domestic policy merge in a way that is so glaringly obvious that it becomes impossible to ignore, and we are currently in the midst of one of those periods. On February 28, 2026, President Donald Trump ordered a series of military strikes on Iran, labeled Operation Epic Fury. Since the decision, which was made without Constitutionally-mandated Congressional approval, there have been cascading economic effects globally and, in a tangible way, direct hits to Americans’ wallets. Aside from the obvious unconstitutionality and illegality of the decision to go to war, even if one were to look at it from a cold, hard realpolitik perspective, the choice is still reckless and short-sighted. The war with Iran has been poorly received from the outset and has reverberated stateside almost immediately, two factors that are very different from past major conflicts. One reason that Americans can be so disconnected from their own government’s foreign policy is that, often, blowback from reckless decisions can take years to take hold, leaving the public unclear on the root cause. But this conflict has been markedly different so far. From February 20 to March 20 of this year, the price of Brent crude oil futures rose from $71 per barrel to about $110 per barrel, a 54% increase. Brent, a type of oil mostly from the North Sea, is considered the international benchmark for oil prices, with traders regularly buying and selling futures in financial markets. Oil prices are set to continue to rise with no realistic off-ramp to end the war in sight. Meanwhile, President Trump continues to bring into question market manipulation, as he has falsely declared on multiple occasions that his administration is engaged in diplomatic talks with Iran, leading to the price of oil futures to fall dramatically. The most immediate effect domestically has been a marked increase in gas prices, as gas prices usually rise with Brent prices because Brent is relatively easy to turn into gasoline. According to the American Automobile Association, since February 20, the average price of a gallon of regular gas in the U.S. has risen by more than a dollar, from $2.93 to $3.98. That is a 36% increase, the single largest one-month rise in 30 years. The biggest reason for the increase is Iran’s current ability to control and halt shipping in the Strait of Hormuz, a narrow waterway along the country’s southern coast that connects the Persian Gulf with larger waterways. The strait is considered the most important shipping lane in the world, as one-fifth of global oil passes through it. Iran’s blockade of the strait was triggered by the initial attack by the U.S., as Iran proceeded to bomb numerous American military bases in the region in addition to attacking Gulf state countries like Dubai, Bahrain, the United Arab Emirates and Qatar, all allies of the U.S. As a result, the infrastructure that prevented Iran from blockading the strait was largely destroyed, Iran seized control of the waterway, and now holds an enormous point of leverage over the global and American domestic economy. Iran has been booby-trapping the strait with mines, tightly restricting the flow of traffic through the waterway. According to a March 13 Wall Street Journal report, top military officials warned President Trump of the strong possibility of the closure of the strait in the event of an attack on Iran, but those warnings were summarily ignored and contingency plans were not developed. Since the 1979 Iranian 10
Revolution, every American president has been presented with the option of engaging Iran militarily, and all refused due to the possibility of cascading negative consequences from the closure of the Strait of Hormuz, in addition to the massive human toll. The Trump administration clearly received a lot more than they bargained for in Iran’s response, as U.S. officials have already indicated that simply reopening the strait could be a condition for ending the conflict. It’s not a good sign for the long-term viability of the conflict from the American side if government officials are already conceding merely to establish conditions that existed before the conflict began. It is an indirect confession from the U.S. government that the decision to start the conflict was an enormous mistake. They’re now stuck in a mode of trying to fix problems that they created by attacking in the first place. The vessels that pass through the Strait of Hormuz not only carry oil, but fertilizer for food, aluminum for key infrastructure, helium for semiconductors and various petrochemicals key for pharmaceuticals and manufacturing. The closure is creating a chain reaction, as the Kiel Institute for the World Economy, a leading European research center specializing in global trade and macroeconomic modeling, detailed in a recent report. “The initial disruption reduces the supply of oil and gas, driving up energy prices. These higher costs feed directly into chemical production, particularly in gas-intensive sectors such as fertilizers. As fertilizer prices rise, agricultural production becomes more expensive, pushing up food prices. Each stage amplifies the previous one. What begins as a shock in one sector propagates through the entire economic system, producing effects that are larger and more persistent than standard models would predict,” the report states. “In many countries, the crisis operates through multiple channels simultaneously. Farmers face higher input costs due to rising fertilizer prices. At the same time, consumers confront higher food prices in local markets. Governments, already under fiscal pressure, struggle to subsidize essentials or stabilize supply. The result is a convergence of pressures that can quickly translate into social and political strain. The study’s modeling captures the economic dimension of this process, but the implications extend far beyond economics.” 11
The report further details, “From a policy perspective, the implications are significant. The crisis challenges the traditional separation between energy security and food security. In a system where energy inputs are embedded in agricultural production, disruptions in one domain inevitably affect the other. Strategic reserves, long focused on oil, may need to be reconsidered to include fertilizers and other critical inputs. International coordination mechanisms, particularly those aimed at supporting vulnerable economies, become essential in managing such crises. The closure of the Strait of Hormuz offers a clear window into the evolving nature of global risk. What appears at first as a localized geopolitical event quickly unfolds into a systemic disruption, affecting energy, industry and food simultaneously. The key insight is not simply that the world depends on Hormuz, but that this dependence is embedded across multiple layers of economic activity.” In addition to the short-term economic damage that is being incurred by entering this conflict, there is also the long-term damage being done to America’s global economic standing. As a recent report by Deutsche Bank details, the longest-lasting legacy of the Iran War could be its destruction of the dollar as the dominant global-reserve currency. The report outlines, “The dollar’s dominance in cross-border trade is arguably built on the petrodollar: globally traded oil is priced and invoiced in USD. This arrangement can be traced to a deal struck in 1974, where Saudi Arabia agreed to price oil in USD and invest surpluses in USD assets in exchange for U.S. security guarantees. Because oil is a core input to global manufacturing and transport, there is a natural incentive for global value chains to dollarize, and global surpluses to accumulate in USD. From 1945-1971, the dollar was “backed” by gold — namely, global central banks were able to exchange $35 for 1 oz at the Fed. This was the foundation of the international monetary system known as Bretton Woods. In 1971, the U.S. broke the dollar’s link to gold. Since then, the dollar has been in a purely fiat regime — one that is backed by the sovereign creditworthiness of the U.S. and willingness of the world to save in its debt.” The Deutsche Bank findings continue, “Enduring support for the fiat dollar arguably comes from the dominance of the dollar in the pricing of cross-border trade. Globally traded goods and services are largely priced in USD, with payments exchanged over U.S.-controlled payment rails. Global surpluses are thus built in USD and mostly invested back into U.S. assets. Corporations are incentivized to save and borrow in the currency of their payables and receivables, banking systems are dollarized, and central banks save in dollars to act as effective lenders of last resort. A crucial anchor to this system is the petrodollar: the fact that most globally traded oil is priced and invoiced in dollars. Because oil is so central to global manufacturing processes — from petrochemicals, fertilizers and transport, to running factories and offices — companies are incentivized to price end products in dollars as a natural currency hedge to a key cost.” The report concludes, “The current conflict has arguably shaken some core foundations of the petrodollar regime: the security-for-oil-pricing arrangement. U.S. military assets and bases in the Gulf have come under attack in the war. Oil infrastructure in the Gulf has also been hit. And the U.S.’s ability to provide maritime security to ensure the global flow of oil has been challenged with the closure of Hormuz. The U.S. security umbrella has been fundamentally tested. The legacy of this conflict for the dollar could be the ways in which it tests the foundations of the petrodollar regime. In the long-run, if the world uses less oil, the Gulf draws more deeply on existing dollar savings, if the Gulf moves closer to Asia in its trade and investment relationships, and eventually prices less oil in dollars — there could be significant downstream effects to the dollar’s usage in global trade and savings.” The decision to start a wide-ranging war with Iran was long off-limits for a reason. It throws into question the very foundation that America has built its economic power on in the first place. This country built a great deal of economic might on guaranteeing a combination of security, predictability and diplomacy, all of which have been completely thrown out the window in recent years. The United States is being seen as unstable and unpredictable on the world stage, and it will have vast long-term consequences for everyday citizens. As a country, we’re entering a brand-new world, one with a lot less safety and security than the last. The United States is being seen as unstable and unpredictable on the world stage, and it will have vast long-term consequences for everyday citizens. 12
WHY SBA LENDING HOLDS STEADY WHEN THE WORLD DOES NOT By Christopher Myers, CEO, B:Side Capital and B:Side Fund There is no shortage of reasons to feel uneasy right now. Economic signals are mixed. Politics are loud and unresolved. Geopolitics remain unsettled. Social institutions feel stretched thin. None of this is new, but the overlap is what makes this moment feel heavier. History would call this a pressure phase. A period where systems are tested not by a single shock, but by sustained strain. In moments like this, the instinct is to retreat. Capital pulls back. Decision-making slows. Risk tolerance collapses into caution. Yet history also shows that some systems do not just survive these periods. They quietly prove their value. SBA lending is one of those systems. Across crisis eras, from the financial crisis to the pandemic and into the current adjustment cycle, SBA lending has played the same role again and again. It acts as connective tissue between lenders who want to lend and businesses that still need to build, buy, hire and adapt. That role matters most when uncertainty is highest. Part of what makes SBA lending stable is structural, not emotional. The guarantee mechanism lowers lender exposure without eliminating discipline. Banks still underwrite real businesses with real cash flow. The SBA simply absorbs a portion of the downside risk, which allows capital to move when it otherwise would not. Stability comes not from avoiding risk, but from distributing it intelligently. That distinction matters in an era defined by asymmetry. Capital markets now reward scale, speed and technological leverage. Small businesses do not compete on those terms. They compete on durability, local knowledge and long-term horizons. SBA programs align with those realities by offering longer terms, predictable pricing and financing structures that match how small businesses actually operate. The current macro environment only reinforces this role. A weaker dollar raises input costs and pressures margins. Tariffs and supply chain realignments force operational changes. Labor dynamics continue to shift. These are not reasons to stop investing; they are reasons to invest with patience and structure. SBA lending provides both. For lenders, SBA loans create portfolio balance during volatile cycles. Guarantees reduce loss severity. Secondary market liquidity supports capital efficiency. Fee income adds consistency when traditional commercial pipelines slow. This is not theoretical. In past downturns, regions with active SBA lending recovered faster, maintained higher employment and preserved more small businesses through the cycle. For borrowers, SBA lending offers breathing room. Longer amortizations lower the monthly pressure. Working capital and refinance options stabilize balance sheets. Access to capital during uncertain periods allows owners to focus on operations rather than survival. That space is often the difference between endurance and failure. Confidence in a program does not come from slogans or headlines. It comes from repetition. From watching a system perform its function across different political administrations, regulatory climates and economic regimes. SBA lending has done that work quietly for decades. At B:Side Capital, our confidence in the SBA is not abstract. It is earned through cycles. Through deals completed when sentiment was negative and liquidity was tight. Through partnerships with banks that understand that serving small businesses is not about timing the cycle but staying in the game long enough to matter. We are not blind to the noise. We simply refuse to let it dictate our posture. Crisis eras reward institutions that stay disciplined, boring and consistent while others chase novelty or freeze in fear. SBA lending is not flashy. It does not promise shortcuts. It offers structure, patience and continuity. In times like these, that is not a weakness. It is an advantage.
HOUSING NEW MEXICO FUNDING IMPACTS 18,000 FAMILIES AND HOMES $740 Million in Housing Support Provided in Fiscal Year 2025 By Kristie Garcia, Director of Communications & Marketing, Housing New Mexico Whether it was a person finding refuge at a homeless shelter, an elderly person’s home being rehabilitated, a family renting an affordable apartment or a person becoming a homeowner for the first time, Housing New Mexico impacted nearly 18,000 families and homes through the $740 million in funding the organization provided during its 2025 fiscal year. “As we celebrated our 50th anniversary last year, we also celebrated all the people in New Mexico who have benefited from our affordable housing-related programs, not only in 2025 but since Housing New Mexico’s inception in 1975,” said Housing New Mexico Executive Director and CEO Isidoro Hernandez. “There is still much work to accomplish to help New Mexicans, and along with our nearly 400 partners, we will continue to deliver programs and services needed to provide housing opportunities.” Fiscal year 2025 production highlights include: • $81.6 million provided to produce 1,518 homes • $16.8 million provided to preserve 739 homes Albuquerque resident Melanie Roberts became a homeowner thanks to one of Housing New Mexico’s mortgage programs. In fiscal year 2025, Housing New Mexico provided $583 million in first mortgage and down payment assistance to 2,287 families. (Photo courtesy Melanie Roberts) • $583.2 million provided in first mortgage and down payment assistance to 2,287 families • $58.2 million provided for housing stability to 13,152 people and families • $739.8 million in total funding for affordable housing, impacting 17,696 families and homes Between creating more housing, preserving existing affordable housing, creating stable housing environments and providing opportunities for homeownership and wealth building, Housing New Mexico served people in 32 of 33 counties across the housing continuum during its most recent fiscal year, which began October 1, 2024, and ended September 30, 2025. Housing New Mexico partnered with about 250 participating mortgage lenders to provide $555.2 million in first mortgage financing to 2,287 families and $28 million in down payment assistance, totaling 3,311 loans. In its 50-year history, Housing New Mexico has helped 72,668 families become homeowners through its first mortgage and down payment assistance programs. David and Valerie Ramirez in Belen achieved their dream of homeownership 14
with the help of one of Housing New Mexico’s homebuyer programs after living in their car. “Before we bought our home, we were going through some struggles,” said David. “We were homeless for many years, living in our car. When we finally defeated that, we were stuck renting.” Valerie said they tried a couple of times to purchase a home but were given the runaround and got nowhere. After learning about Housing New Mexico’s programs, the Ramirezes were approved for a loan. “Within three months, we were in our home,” said Valerie. “Being able to buy this home is our dream come true. We’re so blessed to have a home to call our own. We’re paying our mortgage. I would recommend this company to anyone. It’s been a life-changer for us.” David also expressed gratitude for Housing New Mexico’s team, as well as the lender and realtor who helped facilitate a smooth transition into homeownership. In Housing New Mexico’s multifamily development pipeline, 5,000 apartment homes are at various stages of development across 53 housing communities. These developments are located in 18 municipalities across 14 counties in the state, and the total funding from tax credits, bonds, loans and grants exceeds $413 million. Tucumcari resident Gloria Mavrick’s home was rehabilitated as part of Housing New Mexico’s Home Improvement Program, a direct-services initiative within the HOME Rehabilitation Program. The Home Improvement Program provides resources to low- to moderate-income homeowners who are struggling to bring their homes up to code or make necessary accessibility modifications. “This experience for me was really great, and I have to say good stuff about this program, because it’s the best program you could ever find,” said Mavrick. “I would like to thank Housing New Mexico. The people that you work with, the people that come and do your house and help you and understand everything, that’s the greatest thing. They did a great job on my house, and it’s so much better than it was before. And I am so grateful to all of them.” These two stories represent a fraction of the impact Housing New Mexico made in fiscal year 2025. To view the annual report in its entirety, visit housingnm.org/about-mfa/financials. To learn more about Housing New Mexico and its nearly 40 programs, visit housingnm.org. In fiscal year 2025, Housing New Mexico provided approximately $6.3 million to produce 145 single-family homes, including in Roswell’s El Toro Community, a single-family development funded by Housing New Mexico. (Photo courtesy Housing New Mexico) A ribbon-cutting ceremony for Calle Cuarta Apartments in Albuquerque was held Sept. 16, 2025. The Housing New Mexico Board of Directors approved over $2 million in loans for the development, along with approximately $1.4 million in 9% Low-Income Housing Tax Credits annually. (Photo courtesy Housing New Mexico) 15
Community banks, which make up at least 90% of all banks nationwide, are the backbone of American small businesses.1 An ICBA report found that roughly 60% of small business loans and over 80% of agricultural loans come from community banks.2 But community banks face steep challenges, including net interest margin compression, compliance and cybersecurity burdens, and new, often digital-only, competitors. In fact, 94% of respondents to IntraFi’s Q4 2025 survey of bank executives say they expect deposit competition to remain at current levels or increase over the next year. To stay competitive and continue providing the vital banking services their communities depend on, community banks need every advantage available to attract and retain high-value relationships. Reciprocal deposits are an essential tool that allows community banks to support local deposit and lending needs, enabling banks to offer large depositors access to millions in FDIC insurance while keeping funds local to lend in the community. Reciprocal Deposits Typically Have a High Reinvestment Rate Reciprocal deposits are deposits that a bank receives through a deposit placement network in return for placing a matching amount of deposits at other network banks. Importantly, the institution placing the deposit maintains its relationship with the depositor, allowing safety-conscious customers to obtain FDIC insurance on large balances through multiple network banks while maintaining a single bank relationship. At the same time, a bank that participates in a deposit placement network can attract and retain more deposits from local customers. Historically, reciprocal deposits have DRIVING COMMUNITY PROSPERITY WITH RECIPROCAL DEPOSITS By Joe Hooker, Chief Sales Officer, IntraFi been “sticky,” with high reinvestment rates and low likelihood of liquidation in any given month, even as total accounts and balances steadily increase. After the high-profile bank failures of 2023, reciprocal deposit balances at banks with between $1 billion and $100 billion in assets increased by 20% and remained elevated across 2024. A recent research paper finds that higher levels of insured deposits were associated with reduced deposit outflows during the 2023 regional banking crisis. The study also reports that banks with higher insured deposit levels paid lower deposit interest rates, grew larger and increased their local deposit market share over time.3 In fact, the growth rate for reciprocal deposit balances across banks of all sizes was 131% from 2022 to 2023. Reciprocal balances grew an additional 15% across 2024.4 Reciprocal Deposits Compare Well to Other Bank Funding Choices In addition to helping banks grow wallet share among local customers, reciprocal deposits can offer several advantages over other bank funding options. • Reduced Collateralization Needs: Reciprocal deposits can reduce or eliminate collateralization requirements, freeing up pledged collateral and reducing the burdens associated with tracking collateral. • Alternative to Wholesale Funding: Unlike many forms of wholesale funding, most 16
The Advisors’ Trust Company® Zia Trust, Inc. Independent Corporate trustee 6301 Indian School Rd NE Suite 800 Albuquerque, NM 87110 Albuquerque • SAntA Fe • lAS CruCeS • Phoenix • tuCSon reciprocal deposits can qualify as non-brokered deposits under the law. • Superior to Listing Service Deposits: When compared to listing service deposits, reciprocal deposits can provide a more stable, relationship-based source of funding that is typically lower cost and less rate sensitive. The Value of Balance Sheet Flexibility Overall, using deposit placement networks provides meaningful flexibility for balance sheet management. Banks can keep funds on the balance sheet as reciprocal deposits or, alternatively, sell funds into their deposit network and earn fee income (while keeping the customer relationship).5 The ability to move funds on and off the balance sheet on demand can significantly reduce the need for community banks to turn away a valued depositor because of the deposit insurance limits, deepening relationships and giving banks greater control to meet their liquidity needs. Reciprocal deposits also provide a stable funding source to support lending while offering the agility needed to respond rapidly to changing market conditions. Using a reciprocal deposit network, banks can grow relationships and deposits from a local customer base without the added costs or tracking burdens associated with ongoing collateralization requirements, while still lending these funds locally. To learn more about how your institution can use reciprocal deposits to expand its lending capacity and strengthen its local community, visit www.intrafi.com/grow-reciprocal-deposits. Deposit placement through ICS is subject to the terms, conditions and disclosures in applicable agreements. IntraFi is not an FDIC-insured bank, and deposit insurance covers the failure of an insured bank. A list identifying IntraFi network banks appears at www.intrafi.com/ network-banks. Certain conditions must be satisfied for “pass-through” FDIC deposit insurance coverage to apply. SOURCES 1 “U.S. Community Banks: Holding up Well with Strong Asset Quality Despite CRE Exposures,” Morningstar, accessed Jan. 12, 2026, https://dbrs.morningstar.com/research/440556. 2 “Revealed: The Impact of Credit Union Acquisitions,” ICBA, last modified Dec. 1, 2025, https://www.icba.org/w/revealed-the-impact-of- credit-union-acquisitions. 3 Edward T. Kim, Shohini Kundu, and Amiyatosh Purnanandam, “The Economics of Market-Based Deposit Insurance,” published September 2024, https://www.fdic.gov/system/files/2024-09/kim-edward-paper- 091124.pdf. 4 S&P Call Report Data 5 With a depositor’s consent, the bank may choose to receive fee income instead of deposits from other participating institutions. Under these circumstances, deposited funds would not be available for local lending. 17
In February, Citi announced its Blueprint for Housing Opportunity initiative — a $60 billion five-year housing affordability commitment dedicated to increasing the supply of housing through the creation and preservation of at least 250,000 units across the U.S. In addition, the Citi Foundation will deploy $50 million in philanthropic grants to non-profits addressing housing challenges and supporting the financial health of residents in their communities, starting with a $1 million grant to support the Center for Affordable Housing Lending. “Housing affordability is one of the defining economic challenges of our time, and increasing supply is essential to addressing it,” said Jane Fraser, chair of the board and chief executive officer of Citi. “By expanding the amount of financing we provide for affordable housing, we open possibilities for prosperity, helping more Americans secure housing they can truly afford. When people spend less on housing, they have more to invest in their families and futures.” As the No. 1 affordable housing lender in the U.S. for 15 consecutive years according to Affordable Housing Finance magazine, Citi recognizes that housing is a foundational element of economic well-being and community stability. Citi Community Capital (CCC), which is responsible for the vast majority of Citi’s activity in this space, financed more than $32 billion in affordable multifamily housing lending over the past five years. This includes $7.6 billion in 2025, which helped create and preserve over 35,000 units across more than 30 states. Together, Citi and the Citi Foundation are committing to: • Finance $60 billion in capital over five years for the acquisition, construction, rehabilitation and permanent long-term financing of a broad range of affordable housing types, including homes for essential workers, developments with supportive services and lower‑cost rental options in expensive markets. • Deploy $50 million in Citi Foundation philanthropic grants to non-profits addressing local housing challenges, supporting the financial health of residents and investing in research that helps identify scalable solutions. • Provide continued support for innovative for-profit companies tackling housing access and affordability challenges through the Citi Impact Fund. • Advance public policy and advocacy efforts that help enhance supply, such as the Low-Income Housing Tax Credit program. CITI ANNOUNCES $60 BILLION COMMITMENT TO ENHANCE HOUSING AFFORDABILITY This commitment builds on Citi’s extensive track record of putting its capital, community impact and expertise toward improving housing affordability. It complements Citi’s financial health resources, including affordable mortgage programs, homebuyer education, and products and services that help homebuyers strengthen credit scores and increase savings. Citi also leverages research to inform solutions to housing affordability challenges, such as its recent analysis of the “mortgage lock‑in” effect and its impact on mobility and housing supply. “The causes for the shortage of quality, affordable housing are complicated but ultimately come down to the imbalance 18
of supply and demand. Increasing supply is where our financial capabilities can make the greatest impact, and, through this commitment, we are significantly increasing the capital we are putting to work,” said Edward Skyler, head of enterprise services and public affairs and chair of the Citi Foundation. “We also recognize that housing is a critical building block for financial progress. That’s why we’re also providing philanthropic support to help people access the financial tools, services and opportunities they need for economic and housing security.” Financial Capital Financing affordable housing can be complex. Rising construction and operating costs often create additional challenges for lenders and developers. With this commitment, Citi will deploy its financial capital to help leading developers and government entities build and preserve affordable units for Americans. Citi has supported affordable multifamily housing for decades by providing equity, acquisition and construction loans, and permanent financing, along with structuring expertise. Citi’s partnerships with for-profit developers, local governments, community development finance institutions and other non-profit developers have been critical to these efforts, reflecting a deep commitment to strengthening communities across the country. “Housing gets built when there’s certainty of capital, clarity of execution and partners who stay the course,” said Rafael E. Cestero, chief executive officer of the Community Preservation Corporation (CPC). “That’s where market-based solutions led by institutions like Citi make a difference. As a mission-driven organization focused on leveraging capital to strengthen communities, CPC understands that with the right financial partners, developers not only can 19
move quickly from acquisition to completion but also keep affordability front and center.” Community Impact Access alone does not ensure lasting housing stability — investing in residents’ overall financial resilience is a critical piece of the puzzle. For over 30 years, the Citi Foundation has worked to catalyze economic opportunity for households and communities through grants to non-profit innovators, including those addressing housing supply challenges. Citi Foundation has also announced a $1 million grant to the Center for Affordable Housing Lending, the non-profit research partner to the National Association of Affordable Housing Lenders (NAAHL). This grant will help establish the Housing Supply Research & Fellowship Program to address top-of-mind challenges for policymakers and the housing finance community. “Affordable housing is one of the most pressing challenges facing communities across the country. Solving this problem requires investment in research, innovation and mission-focused solutions,” said Sarah Brundage, president and CEO of NAAHL and the Center for Affordable Housing Lending. “Citi and Citi Foundation’s long track record reflects a commitment to finding tools that work and matching scale with on-the-ground expertise. Citi Foundation’s catalytic support will enable the Center to meet the moment and advance impactful solutions for affordable housing.” Expertise and Advocacy We recognize that making housing more affordable for American families cannot be achieved by the private sector alone — successful progress toward this goal will require the public, private and non-profit sectors working together. Policymakers across the political spectrum are focused on addressing housing affordability and increasing supply, but more action is needed. One program with significant support is the Low-Income Housing Tax Credit (LIHTC), which has successfully boosted affordable housing supply for nearly 40 years and was recently expanded by the One Big Beautiful Bill Act. While this improvement was welcomed, Citi believes there is an opportunity to help the credit go even further for American communities and families. For example, enhancing the liquidity of LIHTC to outside investors would encourage greater investment in affordable housing projects. Citi remains committed to working with policymakers, relevant stakeholders and others to ensure continued improvement in housing affordability for individuals and families across the country. For more information on Citi’s commitment, visit the Blueprint for Housing Opportunity website by scanning the QR code. https://www.citigroup.com/global/our-impact/strengtheningcommunity/housing-affordability About Citi Citi is a preeminent banking partner for institutions with cross-border needs, a global leader in wealth management, and a valued personal bank in its home market, the United States. Citi does business in more than 180 countries and jurisdictions, providing corporations, governments, investors, institutions and individuals with a broad range of financial products and services. Learn more at www.citigroup.com. About Citi Foundation The Citi Foundation works to promote economic progress and improve the lives of people in low-income communities worldwide. We invest in efforts that increase financial inclusion, catalyze job opportunities for youth, and reimagine approaches to building economically vibrant communities. The Citi Foundation’s “More than Philanthropy” approach leverages Citi’s expertise and that of its people to fulfill our mission and drive thought leadership and innovation. For more information, visit www.citifoundation.com. 20
www.thenewslinkgroup.orgRkJQdWJsaXNoZXIy ODQxMjUw