Southern Development Bancorporation

Among Arkansas bank holding companies, Southern Development Bancorporation of Arkadelphia is unique. The $420 million-asset institution is part commercial lender and part nonprofit do-gooder.

“Basically, we go places other banks won’t go,” said Phil Baldwin, president and chief executive officer.

The mission of the organization is to help revitalize the rural economies of Delta communities. Toward that end, SDB has become the largest rural community development financial institution in the nation and the second-largest CDFI, period.

SDB has funded more than $520 million worth of development loans since its founding 15 years ago.

The venture started with the 1988 acquisition of Elk Horn Bank & Trust and a $6.5 million stock offering to foundations and corporations. SDB has grown to include two other banks, First National Bank of Phillips County in Helena (1998) and Delta Southern Bank of Ruleville, Miss. (2002).

Ten additional branches in the Delta were added in deals struck with Union Planters Corp. of Memphis in 2001 and Superior Financial Corp. of Little Rock in 2003.

Its Southern Financial Partners subsidiary lends money to rural communities for startup businesses or commercial borrowers that can’t qualify for a conventional loan. Another subsidiary, Southern Community Development Corp., aids in creative redevelopment of commercial and residential property, Good Faith Fund, a finalist in the Nonprofit Organization of the Year category, is also part of SDB.

Save for America, the largest child savings account project in Arkansas, is among its innovative projects.

SDB and its affiliates have been recognized as the largest provider of rural health care loans in Arkansas and for operating the largest nursing assistant training program.

Though dealing with unconventional, sometimes risky loans, the holding company keeps a watchful eye on profitability. The 217-member staff helped oversee net income of $3 million in 2004.