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Wells Fargo & Co (NYSE: WFC) has announced equity investments in five Black-owned banks as part of its pledge of investing up to $50 million in Black Minority Depository Institutions (MDIs).
What Happened: The San Francisco-headquartered financial institution’s investments were aimed at two Georgia-based banks Carver State Bank in Savannah and Citizens Trust Bank in Atlanta plus First Independence Bank in Detroit, Liberty Bank in New Orleans and Unity National Bank in Houston.
This is Wells Fargo’s second round of investments in the MDIs. In February, the company announced investments in Broadway Federal Bank in Los Angeles, Carver Federal Savings Bank in New York City, Citizens Savings Bank & Trust in Nashville, Commonwealth National Bank in Mobile, Alabama, M&F Bank in Durham, North Carolina, and Optus Bank in Columbia, South Carolina.
The banking giant has selected six African American minority depository institutions (MDIs) for equity investments.
Based in Los Angeles, Broadway Federal Bank is one of the several minority depository institutions that Wells Fargo is investing in.
Broadway Federal Bank in Los Angeles, Carver Federal Savings Bank in New York, Citizens Savings Bank & Trust in Nashville, Commonwealth National Bank in Mobile, Ala., M&F Bank in Durham, N.C., and Optus Bank in Columbia, S.C., are receiving critical equity capital, because of Well Fargo’s generous contribution.
The financial commitment structure means that the investments are in the form of critical equity capital, which is foundational to the MDIs’ ability to expand lending and deposit-taking capacity in their communities.
Wells Fargo In observance of Black History Month, Wells Fargo has selected six African American minority depository institutions (MDIs) for equity investments: Broadway Federal Bank in Los Angeles, Carver Federal Savings Bank in New York, Citizens Savings Bank & Trust in Nashville, Commonwealth National Bank in Mobile, Ala., M&F Bank in Durham, N.C., and Optus Bank in Columbia, S.C.
The financial commitment structure means that the investments are in the form of critical equity capital, which is foundational to the MDIs’ ability to expand lending and deposit-taking capacity in their communities.
Wells Fargo said it is also supporting each MDI’s development through a banking relationship in the form of a single touchpoint coverage model that will help them access Wells Fargo’s expertise and pursue strategic priorities like entering new markets, expanding locations, designing new products, and hiring staff to support loan growth.
SC s only Black-owned bank receives multi-million equity investment from Wells Fargo Laurryn Salem, The State (Columbia, S.C.)
Feb. 12 South Carolina s only Black-owned bank, which traces its history to 1921 recently received a $3 million investment from one of the world s largest banks.
Wells Fargo announced equity investments in Optus Bank of Columbia and along with five other Minority Depository Institutions nationally.
With the capital from Wells Fargo, Optus Bank can be more equipped to help local minority communities by offering more small business loans, mortgage loans, financial education and a larger deposit-taking capacity. This growth can help meet the bank s mission to serve those previously unbanked, underbanked and historically underserved.
Aside from the cash infusions, the The San Francisco-based bank will assign dedicated teams to provide the lenders with financial, technology and product expertise.