Bank of America advances racial and economic equality
Back in June 2020, Bank of America announced its ambitions to invest US$1bn in a four year commitment to advance racial equality and economic opportunity.
As part of its ambitions, Bank of America aims to dedicate US$50mn to supporting minority depository institutions (MDIs) and community development financial institutions (CDFI) banks. In the bank’s efforts to advance its US$50mn goal, Bank of America has announced its completion of 10 equity investments acquiring 4.9% of common equity in each organisation.
The aim of the 10 equity investments is to provide benefits across multiple states and in the communities that MDIs and CDFI banks serve
“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.
Alongside its previously completed investments, the banks has a total number of 10 equity investments made so far, including:
- 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 made by Bank of America have been completed in addition to its US$100mn deposit into MDIs, as well as its US$1.6bn CDFI bank portfolio operations that includes 255 partner CDFI banks in all 50 states. The portfolio’s ambition is to provide access to capital for individuals and small businesses that do not qualify with traditional lenders.
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