Bank of America announced today that it has completed three new equity investments in minority depository institutions (MDIs). With the new investments in Carver Bancorp, Inc., Carver Financial Corporation, and CNB Bancorp, the bank has now completed 10 equity investments in MDIs and community development financial institution (CDFI) banks.
The other investments, announced in September and earlier this month, were made into 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. and Unity National Bank of Houston, N.A.
The equity investments were made as part of bank of America’s $1 billion, four-year commitment, announced in June 2020, to advance racial equality and economic opportunity, of which $50 million is dedicated to support MDIs and CDFI banks. BofA has acquired approximately 4.9% of the common equity of each organization. According to BofA, the investments will facilitate benefits across multiple states and in the communities that these institutions serve through lending, housing, neighborhood revitalization, and other banking services.
Bank of America CEO Brian Moynihan said:
“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.”