The Fund’s investments aim to support the financial and technical services needs of banks actively serving minority and low-income customers in 29 states.
CLEVELAND, OH, April 08, 2024 /24-7PressRelease/ — The Mission Driven Bank Fund today announced its initial investments in Community Development Financial Institution (CDFI) and Minority Depository Institution (MDI) banks committed to expanding financial services in underserved communities. The Fund aims to help close the racial wealth gap by meeting the banks’ needs through below-market and flexible investment vehicles and subsidized technical services curated to build sustainable change for the sector.
The Fund, encouraged by the Federal Deposit Insurance Corporation (FDIC), and anchored by Microsoft and Truist, recently announced its first investor close at the end of last year. While it is raising more capital throughout 2024, it wanted to begin meeting the needs of its growing pipeline of CDFI and MDI banks right away.
Paul Welch, the Fund’s portfolio manager, said, “The Fund has been well received by our mission focused bank sector and we look forward to continuing to support building capacity within their communities.”
Initial investments include:
– Embassy National Bank, an MDI serving primarily South Asian communities throughout the state of Georgia.
– Legacy Bank and Trust, a CDFI bank with locations in Missouri, Oklahoma, and Texas, and affordable housing and community development lending niches prioritizing majority minority communities, American Indian reservations, and persistent poverty counties across the country.
– Priority Bank, a CDFI providing rural, small business, and affordable housing mortgage loans in Ozark and Northwest Arkansas.
In addition to the $18 million in aggregate financing deployed into these banks, we believe they will start to benefit from the tailored technical services program designed to build organizational capacity and the growing network of vendor relationships the Fund provides.
About The Mission Driven Bank Fund
The Mission Driven Bank Fund seeks to foster a stronger and more inclusive banking system by investing capital and providing technical services to CDFIs and MDIs that target African American, Native American, Asian, Hispanic, and Pacific Islander communities. The Fund’s mission is to drive significant growth and financial resiliency in the mission-driven bank sector that translates into demonstrated progress in closing the racial wealth gap. Elizabeth Park Capital Management, a specialist firm investing in U.S. banks, and Calvert Impact, a leading impact investing firm, are members of the Fund’s general partner. Strategic Value Bank Partners is a subadvisor and Performance Trust is capital advisor and structuring agent to the Fund. To learn more, visit https://missiondrivenbankfund.org
About Embassy National Bank
Embassy National Bank was founded in 2007 by a group of professionals with backgrounds in finance, banking, and hospitality to meet the needs of the greater Atlanta communities including Lawrenceville, Duluth, Suwanee, and Norcross. Their team of local experts supports the bank’s mission to be a community partner small businesses want, and neighbors need. To learn more, visit https://embassynationalbank.com
About Legacy Bank and Trust
Since Legacy Bank and Trust first opened its doors in 1907, our vision has been to surpass standards in banking for our customers as well as local businesses, so they can help our communities thrive. Legacy Bank and Trust, and its holding company, Ozarks Heritage Financial Group, Inc., are certified-CDFIs that exist to serve as the financial leader in economic and community development through the provision of financial products and services that create economic opportunities for underserved populations on both a local and national level. To learn more, visit https://legacybankandtrust.com
About Priority Bank Priority Bank
is a community bank serving Ozark and Northwest Arkansas communities since 1993. Priority Bank’s focus is rural, small business, and affordable housing mortgage loans. Priority Bank has a dedicated mortgage lending division that assists low-to-moderate income customers to obtain fixed rate FHA, VA, USDA and conventional loans. In addition to the mortgage loan staff, Priority Bank has a commercial loan division that focuses on non-conforming mortgage, construction, investor, small business, and consumer loans. Between the two divisions, Priority Bank is able to provide the needed financial tools its customers desire in the communities it serves. To learn more, visit https://prioritybank.com
This is not intended as an offer or solicitation with respect to the purchase or sale of any security. No offer or solicitation of the Mission Driven Bank Fund will be made prior to the delivery of the offering documents.
Media inquiries: Greg Joslyn at greg.joslyn@lowecom.com; (414) 376-7275
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