Southern Bancorp CEO Darrin Williams is on track to double the companyâs assets over the next five years
Darrin L. Williams would like to clear up some misconceptions about his mission. As CEO of Southern Bancorp, Inc., one of Americaâs oldest and largest community development financial institutions (CDFIs), he issues loans and works with clients in parts of Arkansas and Mississippi where traditional banks often fear to tread. But he still needs make money.
âI get that a lot: âOh, youâre that nonprofit bank,â says Williams. âIf weâre a nonprofit bank, weâre doing a bad job. We have to be profitable … If thereâs no margin, it doesnât matter what our mission is.â
As Williams notes in an interview with Forbes, the CDFI structure brings certain benefits and obligations that traditional banks donât have. Along with the bank and holding company on the for-profit side, Southern Bancorp has a nonprofit loan fund. Support from the federal government and mainstream banks stepped up in the aftermath of George Floydâs murder and the pandemic. So, too, has entrepreneurial activity and opportunities in underserved communities.
Thatâs made Williams optimistic that heâll be able to double the bankâs $2.5 billion in assets over the next five years. In part, that means moving from mainly rural communitiesâwhere 71% of its 56 branches are now locatedâto more focus on underserved urban communities, such as Little Rockâs 12th Street corridor.
âWe came to a banking desert,â he says. âThis community hadnât had a (new) bank in 30 years.â
Now, Williams is also targeting more affluent clients who might have other options but want to give their business to a bank that shares their values. âOur mantra is wealth builders for everyone,â says Williams, who views other banks as partners (JPMorgan Chase is a shareholder) in the fight against exploitative payday lenders.
âIn the state of Mississippi, there are more storefront payday lenders than there are McDonaldâs, Burger King (outlets) and Starbucks combined,â he says.
For more on Williamsâ strategy, background and lessons in leadership, click on the interview above.