Cross River Bank

Cross River Bank was founded in 2008 by French-born entrepreneur Gilles Gade as a community bank.{{cite news |last=Batallas|first=Tanya|url=http://www.nj.com/business/index.ssf/2009/07/frenchborn_gilles_gade_finds_h.html | title=French-born Gilles Gade finds home at the Cross River Bank in Teaneck | work=NJ.com | date=28 July 2009 | accessdate=23 November 2015}} In 2010, Cross River entered into its first tech partnership.{{cite news|last=Schoenberg|first=Gregg|date=2019-03-01|url=https://techcrunch.com/2019/03/01/mitzvah-minded-unicorn-cross-river-is-on-holy-mission-to-foster-bank-fintech-harmony/|title=Mitzvah-minded unicorn Cross River is on holy mission to foster bank-fintech harmony|language=en-US|publisher=Tech Crunch|access-date=2020-12-10}} In October 2015, Cross River Bank announced a $100 million securitization with Marlette funding.{{Cite web |last=Lichtenwald|first=Ryan|url=http://www.lendacademy.com/cross-river-bank-and-marlette-funding-close-100-million-securitization-transaction/ |title=Cross River Bank and Marlette Funding Close $100 Million Securitization Transaction |date=2 October 2015 |website=Lend Academy}}{{Cite press release|last=Guzzio|first=Alison|url=https://www.businesswire.com/news/home/20150128006076/en/Marlette-Funding-Brings-Best-Egg-Personal-Loans-to-the-General-Public|title=Marlette Funding Brings Best Egg Personal Loans to the General Public|language=en-US|location=Wilmington, Del.|date=28 January 2015 |publisher=Businesswire|access-date=2021-01-01}} As of 2020, Cross River counts more than a dozen lending partners including Affirm, Rocketloans and Upstart.{{cite news|last=Chatenay|first=Victor|date=2020-11-09|url=https://www.businessinsider.com/alt-lender-upstart-going-public-following-successful-growth-2020-11|title=Alt lender Upstart is filing for an IPO after seeing successful growth|language=en-US|publisher=Business Insider|access-date=2020-12-10}}{{citation|author=Affirm Holdings, Inc.|year=2020|title=Form S-1|url=https://www.sec.gov/Archives/edgar/data/1820953/000110465920126927/tm2026663-4_s1.htm|publisher=U.S. Securities and Exchange Commission|page=11|access-date=2020-12-10}}{{cite news|last=Kassel|first=Matthew|date=2020-07-16|url=https://jewishinsider.com/2020/07/cross-river-new-jersey-bank-fintech/|title=How a small New Jersey bank cornered the fintech and e-commerce markets|publisher=Jewish Insider|access-date=2020-12-10}}

In 2019, Cross River received a Grow NJ grant from the New Jersey Economic Development Authority (NJEDA) to expand its operations, leading to the purchase of new office space in Fort Lee and a commitment to hire 250 new employees.{{cite news|last=Pries|first=Allison|title=Tech bank expanding in N.J., hiring for 250 jobs|date=2019-03-08|language=en-US|url=https://www.nj.com/bergen/2019/03/tech-bank-expanding-in-nj-hiring-for-250-jobs.html|publisher=NJ.com|access-date=2020-12-04}}{{cite press release|author=|title=Cross River Brings Innovative Approach and 255 New Jobs to Fort Lee|url=https://www.njeda.com/Press-Room/News-Articles/Press-Releases/Cross-River-Brings-Innovative-Approach-and-255-New|location=Trenton, N.J.|publisher=New Jersey Economic Development Authority (NJEDA)|date=2019-03-07|access-date=2020-12-21}}

The same year, Cross River announced the acquisition of Seed, a Portland, Oregon-based firm specializing in small business banking.{{cite web|last=Irrera|first=Anna|date=2019-06-24|language=en-US|title=Cross River Bank acquires small business banking company Seed|url=https://de.reuters.com/article/us-cross-river-seed-idUSKCN1TP1CR|publisher=Reuters|access-date=2021-01-01}}{{dead link|date=July 2021|bot=medic}}{{cbignore|bot=medic}}File:Fort Lee Cross River Building.jpg The deal included the retention of Seed employees and senior leadership and a plan for Cross River to maintain office space in Portland and San Francisco, expanding the firm's small business banking and technology services and providing its first presence on the West Coast.{{cite news|last=Spencer|first=Malia|date=2019-06-25|language=en-US|url=https://www.bizjournals.com/portland/news/2019/06/25/portland-small-business-banking-startup-sold-to.html|title=Portland small business banking startup sold to Cross River Bank|publisher=Portland Business Journal|access-date=2021-01-09}}

Cross River officially opened its new corporate headquarters in April 2021. The 70,000 square-foot building in Fort Lee, acquired with the assistance of the 2019 Grow NJ grant, was anticipated to accommodate the firm’s expanding workforce, which by this point had increased to some 500 employees.{{cite web|last=Jordan|first=John|date=2019-05-14|language=en-US|url=https://www.globest.com/2019/05/14/cross-river-bank-stays-in-new-jersey-with-fort-lee-office-deal/?slreturn=20210615082528|title=Cross River Bank Stays in New Jersey with Fort Lee Office Deal|publisher=GlobeSt.com|access-date=2021-07-15}}{{cite web|last=Bergeron|first=Tom|date=2021-04-30|language=en-US|url=https://www.roi-nj.com/2021/04/30/finance/cross-river-stakes-claim-to-n-j-with-new-hq-in-fort-lee/|title=Cross River stakes claim to N.J. with new HQ in Fort Lee|publisher=roi-nj.com|access-date=2021-07-15}} At the grand opening ceremony, New Jersey Governor Phil Murphy credited Cross River’s continued presence in the state with helping “bring [New Jersey] once again to the forefront of the innovation economy.”{{cite web|date=2021-04-30|language=en-US|url=https://njbmagazine.com/njb-news-now/cross-river-opens-new-headquarters-in-fort-lee/|title=Cross River Opens New Headquarters in Fort Lee|publisher=NJB Magazine|access-date=2021-07-15}}

In April 2023, the Wall Street Journal and Bloomberg reported that the FDIC sent the bank a cease-and-desist order due to what the regulator characterized as "unsafe or unsound banking practices".

"bloomberg_april2023">{{cite news |last1=Yang |first1=Yueqi |last2=Smith |first2=Paige |title=Cross River Bank Receives FDIC Enforcement Order Over Lending |url=https://www.bloomberg.com/news/articles/2023-04-28/cross-river-bank-receives-fdic-enforcement-order-over-lending?sref=CIpmV6x8 |access-date=29 April 2023 |work=Bloomberg.com |date=28 April 2023 |language=en}}{{cite news |last1=Osipovich |first1=Alexander |title=Crypto-Friendly Lender Cross River Bank Criticized by FDIC |url=https://www.wsj.com/livecoverage/stock-market-today-dow-jones-04-28-2023/card/crypto-friendly-lender-cross-river-bank-criticized-by-fdic-ecFdFi23M8vitUE8hmk8 |access-date=29 April 2023 |work=The Wall Street Journal |date=28 April 2023}}

The bank focuses on traditional community banking activities, including taking deposits and making loans, and technology services.{{cite web|last=Cross|first=Miriam|language=en-US|date=2020-09-22|publisher=American Banker|url=https://www.americanbanker.com/news/how-cross-river-bank-gathered-250-million-in-deposits-in-15-days|title=How cross river bank gathered 250 million in deposits in 15 days|access-date=2021-01-04}} The bank originates loans for marketplace lenders and processes payments, and is known for its roster of clients in emerging fintech sectors.Rooney, K. (19 February 2020) {{cite news|url=https://www.cnbc.com/2019/02/15/small-banks-youve-never-heard-of-quietly-power-the-booming-fintech-industry--.html|title=Small banks you've never heard of are quietly enabling the tech takeover of the financial industry|publisher=CNBC|access-date=29 June 2020}}Weinstein, M. (17 October 2019) {{cite web|url=https://njtechweekly.com/cross-river-marries-community-banking-with-cutting-edge-fintech-exec-says-at-propelify/|title=Cross River Marries Community Banking with Cutting-edge Fintech, Exec Says at Propelify|publisher= NJ Tech Weekly|access-date= 29 June 2020}}Zuluaga, D. (22 June 2020) {{cite web|url=https://www.cato.org/blog/paycheck-protection-program-who-lent-whom-where|title=Paycheck Protection Program: Who Lent to Whom, and Where?|publisher=Cato Institute|access-date=7 July 2020}} As of 2020, the bank has assets of approximately $9.9 billion and maintains 300 employees at its branch office and corporate headquarters in New Jersey.Perry, J. (19 March 2020). {{cite web|url=https://njbiz.com/cross-river-invests-employee-consumer-initiatives-amid-covid-19/|title=Cross River invests in employee, consumer initiatives amid COVID-19|publisher=NJBIZ.com|access-date=4 May 2020}} During the COVID-19 pandemic, the bank was one of the nation's top lenders under the CARES Act's Paycheck Protection Program, originating $6.5 billion in loans to more than 198,000 American small businesses, the third largest number of total loans by a financial institution.Conley, S. (23 June 2020) {{cite web|url=https://www.nytimes.com/2020/06/23/business/paycheck-protection-program-cross-river-bank.html|title=The Tiny Bank That Got Pandemic Aid to 100,000 Small Businesses|work=The New York Times|access-date=28 June 2020}}{{cite report|author=Small Business Administration|author-link=Small Business Administration|date=2020-08-08|title=Paycheck Protection Program (PPP) Report|url=https://www.sba.gov/sites/default/files/2020-08/PPP_Report%20-%202020-08-10-508.pdf|page=7|access-date=2020-09-24}}

Cross River has received investments from a number of notable private equity and venture capital firms. On November 1, 2016 Cross River Bank announced it had completed a $28 million growth-equity investment led by investment firm Battery Ventures, with participation from Andreessen Horowitz and Ribbit Capital.{{Cite web |last=Demos|first=Telis|language=en-US|url=https://www.wsj.com/articles/the-new-banking-approach-for-silicon-valley-is-a-bank-1478004624 |title=Venture Capitalists Get Radical and Invest in a...Bank |date=1 November 2016 |publisher=The Wall Street Journal|access-date=2021-01-01}}{{Cite web |url=http://www.americanbanker.com/news/bank-technology/why-giants-of-silicon-valley-invested-in-a-community-bank-1092225-1.html |title=Why Giants of Silicon Valley Invested in a Community Bank |date=1 November 2016 |publisher=American Banker}}{{Cite web |url=https://techcrunch.com/2016/11/01/cross-river-bank-gets-unconventional-validation-with-a-28m-vc-round/ |title=Cross River Bank Gets Unconventional Validation |last=Mannes |first=John |date=1 November 2016 |publisher=TechCrunch}} Private equity firm KKR & Co. Inc. led a $100 million investment in the bank, including $75 million of its own capital, in 2018.{{cite web|last=Irrera|first=Anna|date=2018-12-06|title=KKR leads $100 million investment round in Cross River Bank

|language=en-US|publisher=Reuters|url=https://www.reuters.com/article/us-fintec-kkr-crossriver/kkr-leads-100-million-investment-round-in-cross-river-bank-idUSKBN1O5163|access-date=2020-09-11}}{{cite web|date=2018-12-06|title=KKR Leads $100 Million Financing for Cross River Bank

|language=en-US|work=The Wall Street Journal|url=https://www.wsj.com/articles/kkr-leads-100-million-financing-for-cross-river-bank-1544123272|access-date=2020-09-11}} In 2020, the bank, through its parent company, issued $106 million in private placement subordinated bonds.{{cite web|last=Visconti|date=2020-08-20|title=Cross River Bank's $106 Million Private Placement

|language=en-US|publisher=Global Legal Chronicle|url=http://www.globallegalchronicle.com/cross-river-banks-106-million-private-placement/}}

In 2021, Cross River established a venture capital arm, Cross River Digital Ventures, to invest in start-ups operating in sectors including lending, payments, investing and fintech.{{cite web|last=Cross|first=Miriam|date=2021-06-17|title=Cross River Bank forms venture capital arm to invest in startups|language=en-US|publisher=American Banker|url=https://www.americanbanker.com/news/cross-river-bank-forms-venture-capital-arm-to-invest-in-startups|access-date=2021-11-07}}

Cross River offers a number of banking-as-a-service products.{{Cite web|last=Leff|first=Meir|url=https://https/|title=Baas Company Spotlight 6/8: Cross River — A Regional Bank Providing Specialized BaaS Services|date=2019-08-06|access-date=2022-03-01|archive-date=2020-06-25|archive-url=https://web.archive.org/web/20200625000000/https://udn.com/news/story/121424/4659358|url-status=dead}} In 2019, the bank announced that it was joining The Clearing House's real-time payments system,Hernandez, W. (20 September 2019) {{cite news|url=https://www.americanbanker.com/news/cross-river-makes-jump-to-real-time-payments-will-other-small-banks-follow|title=Cross River makes jump to real-time payments. Will other small banks follow?|publisher=American Banker|access-date= 28 June 2020}} as well as partnering with Stripe.{{Cite web |last=Stone|first=Rachel|url=https://www.spglobal.com/marketintelligence/en/news-insights/trending/BQ4tyz3w9WaHbp5KFiIO9Q2 |title=Stripe, Cross River to launch real-time wage payments to gig economy workers |date=2019-01-09}} Cross River also offers marketplace lending services such as compliance, payments, credit and underwriting, and balance sheet capacity.{{Cite web |last=Nair|first=Vinay|url=https://knowledge.wharton.upenn.edu/article/banking-platform-propels-cross-river-bank/html |title=How Banking-as-a-Platform Propels Cross River Bank |date=2018-01-12}} Cross River partners with Coinbase to provide cryptocurrency,{{Cite web |last=Abdel-Qader|first=Aziz|url=https://www.financemagnates.com/cryptocurrency/trading/not-nuts-crypto-business-triples-profits-of-two-us-banks-in-2018/ |title=Analysis: Crypto Business Triples Profits of Two US Banks in 2018 |date=2018-12-09}} and has developed APIs to facilitate cryptocurrency transactions.{{Cite web |url=https://www.programmableweb.com/api/cross-river-bank-payments-rest-api |title=Cross River Bank Payments REST API}}

In addition to its headquarters, Cross River has a branch in Teaneck, New Jersey.

Cross River maintains partnerships with local elected officials and community-based organizations to provide charity and financial literacy services. In 2019, the bank started its Cross River Financial Literacy Initiative, working in collaboration with New Jersey-area public schools and members of the New Jersey Legislature.Assembly Member Clinton Calabrese Press Release {{cite web|url=https://www.assemblydems.com/assemblyman-clinton-calabrese-and-cross-river-partner-to-bring-financial-literacy-to-the-classroom/|title=Assemblyman Clinton Calabrese and Cross River Partner to Bring Financial Literacy to Classroom|publisher=New Jersey Office of Legislative Services|access-date=16 April 2020}}Villanova, P. (07 May, 2019) {{cite web|url=https://www.nj.com/hudson/2019/05/mcknight-caps-months-worth-of-financial-literacy-events.html|title=McKnight caps month's worth of financial literacy events|publisher=NJ.com|access-date=16 April 2020}} In March 2020, the bank announced that this initiative would partner with Operation HOPE, Inc. to provide virtual financial literacy programming in response to the COVID-19 pandemic.(30 March 2020) {{cite web|url=https://www.bloomberg.com/press-releases/2020-03-30/cross-river-partners-with-operation-hope-and-the-community-to-provide-virtual-financial-literacy-resources|title=Cross River Partners with Operation HOPE and the Community to Provide Virtual Financial Literacy Resources|publisher=Bloomberg News|access-date=16 April 2020}}Bader, E. (31 March 2020) {{cite web|url=https://www.roi-nj.com/2020/03/31/finance/fcross-river-partners-with-operation-hope-to-provide-free-financial-literacy-programming/|title=Cross River partners with Operation HOPE to provide free financial literacy programming|publisher=roi-nj.com|access-date=16 April 2020}}

{{Reflist}}

Category:Banks established in 2008

Category:Privately held companies of the United States

Category:Banks based in New Jersey

Category:2008 establishments in New Jersey

Category:Fort Lee, New Jersey

Category:Companies based in Bergen County, New Jersey

Category:Kohlberg Kravis Roberts companies