Press Room

                                                    Media advisory                                                                        For immediate release
                                                                       Superior Bank joins Housing Enterprise of Central Alabama


                                                                    New Partner Strengthens HECA’s Ability to Significantly Increase
                                                                        Supply of Housing for Low- to Moderate-Income Families

 

BIRMINGHAM, Ala., Sept. 18, 2006 -- Superior Bank has joined the Housing Enterprise of Central Alabama and the Housing Fund of Central Alabama as an institutional investor, HECA CEO Michele Jenkins-Utomi announced today.

The Housing Enterprise of Central Alabama, LLC (HECA) is a community development lender that loans money to qualified private and non-profit developers of moderately priced housing. With Superior Bank’s investment, HECA’s loan fund grows from $55 million to $56.5 million – one of the largest of its kind in the United States.

Superior Bank joins six investors in this community-spirited joint venture: AmSouth Bank, Regions Bank, Compass Bank, New South Federal Savings Bank, First American Bank, and Aliant Bank.

Superior Bank’s Birmingham Market President A. Fox deFuniak III commented, "We believe that one of the strengths of any community is affordable housing. Homeownership is a very powerful market stabilizer, and we are proud to be associated with an organization that builds communities. Our financial commitments, in addition to our personal commitment to HECA, are investments in an organization that shares our values and beliefs ”

“The HECA partnership strengthens immensely with the addition of Superior Bank,” said Michele Jenkins-Utomi, CEO of HECA. “Fox deFuniak and his team at Superior Bank are proven leaders who have a wealth of knowledge of this industry, and we look forward to putting that knowledge to use to help significantly increase the housing stock for low- to moderate-income families in the region.”

To date, HECA has approved and closed nearly $14 million in loans to finance single- and multi-family housing, and closure is pending on another $5.95 million. That financing involves more than 600 units of housing. The Fund has distributed nearly $400,000.

The Housing Fund of Central Alabama (the Fund), HECA’s non-profit affiliate, works to increase the production of moderately priced housing by providing grants to non-profits for core-operating support on a limited basis, technical assistance, and programs related to capacity building. The Fund’s initial grant pool amount is $1.6 million.

Through its grants, the Fund also supports ancillary services such as homebuyer training and credit counseling, which help to bolster the success and sustainability of communities. One of the Fund’s major projects is an incubator program for non-profits whose mission is to build and rehab affordable housing in area neighborhoods. Non-profits from Birmingham, Tuscaloosa, and Anniston are participating in the project.

HECA also partners with the Fund to provide gap financing to qualified non-profit and private developers. This may take the form of a grant, mezzanine debt or forgivable loan. This partnership capacity is unique in the region, and was purposeful on the part of the founders.

HECA and the Fund (www.housingenterprise.com) provide niche products and services as a means of meeting needs that are otherwise not being met in the private market, as well as act as advocates for affordable housing policies and efforts. Loans can be structured to provide up to 100% project financing with limited recourse. Eligible projects include: single family housing or multi-family; acquisition and rehabilitation; new construction; and subdivision development.

HECA serves 12 counties in Central Alabama: Bibb, Blount, Calhoun, Chilton, Cullman, Etowah, Jefferson, St. Clair, Shelby, Talladega, Tuscaloosa and Walker.

Please contact: Tabitha J Lacy, Communications, Housing Enterprise of Central Alabama, 205-323-9888, tlacy@housingenterprise.com.

About Superior Bank:

Superior Bancorp is a $1.8 billion thrift holding company headquartered in Birmingham, Alabama. The principal subsidiary of Superior Bancorp is Superior Bank, a southeastern community federal savings bank. Superior Bank has 39 branches, with 19 locations throughout the State of Alabama and 20 locations in Florida. Superior Bank also has loan production offices in Montgomery, Alabama, and Tallahassee and Panama City, Florida.

Upon completion of the previously announced mergers with Community Bancshares, Inc., Superior Bank will become a $2.4 billion community bank with 56 banking offices from Huntsville, Alabama to Tampa, Florida. In addition, Superior Bank currently has 16 new branches planned for Northeast Alabama and Florida during 2006 and 2007.

Superior will also operate 21 consumer finance offices in Northeast Alabama as First Community Credit and Superior Financial Services.

Superior Bank ranked No. 1 among Birmingham-based banks in mortgage originations in the first quarter of 2006, according to The Mortgage Report. Superior reported nearly $40 million in mortgage loans in the first quarter.                                                      

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