The FINANCIAL — On June 2, Bank of America made a $1 billion, four-year commitment to advance racial equality and economic opportunity, of which $50 million is dedicated to support minority depository institutions (MDIs) and community development financial institution (CDFI) banks. As part of that commitment, today the company is announcing it has now completed 10 equity investments in these institutions, acquiring approximately 4.9% of common equity in each organization as part of the broader $50 million commitment. These investments will facilitate benefits across multiple states and in the communities that these institutions serve through lending, housing, neighborhood revitalization, and other banking services.
“By providing equity capital to minority depository institutions, critical projects can be scaled. MDIs are closely connected to the needs of their communities, and these investments will help transform and enable more positive change and economic opportunity,” said Bank of America CEO Brian Moynihan.
Today’s announced investments, plus those previously completed, bring the total number of investments to 10.
- Carver Bancorp, Inc.
- Carver Financial Corporation
- CNB Bancorp, Inc. (parent of Commonwealth National Bank)
- CSB&T Bancorp, Inc. (parent company of Citizens Savings Bank and Trust)
- First Independence Corporation
- Liberty Financial Services, Inc.
- M&F Bancorp, Inc.
- SCCB Financial Corp. (parent company of Optus Bank)
- Southern Bancorp, Inc.
- Unity National Bank of Houston, N.A.
These equity investments are in addition to approximately $100 million in deposits from Bank of America in MDIs. It also operates a $1.6 billion Community Development Financial Institution (CDFI) portfolio with 255 partner CDFIs across all 50 states, providing access to capital to thousands of individuals and small businesses who do not qualify through traditional lenders.
Recent Bank of America announcements focused on racial equality, diversity and inclusion and economic opportunity include:
- $2 billion Equality Progress Sustainability Bond.
- Universal ESG Reporting; International Business Council of World Economic Forum.
- Top Global Bank on Fortune “Change the World” List.
- Increasing representation of diverse asset managers across the industry.
- Expanding support of Boys & Girls Clubs of America with $1 million grant to support educational programs.
- Committing $100,000 to Athena Alliance to support underrepresented women.
- Partnership with iHeartMedia to bring first-of-its-kind national audio news service to the Black community.
- Smithsonian announces “Race, Community and Our Shared Future” initiative, Bank of America commits $25 million.
- $1 Billion, four-year commitment to support economic opportunity initiatives.
- Committing $250 million in capital and $10 million in philanthropic grants to CDFIs.