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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.
The investments are part of a March 2020 pledge by Wells Fargo to invest as much as $50 million in Black-owned banks.
“MDIs are a viable and very important sector of the banking industry that can directly support the financial health of communities where typically there are gaps in banking services,” said Gigi Dixon, head of External Engagement for Wells Fargo’s Diverse Segments, Representation & Inclusion group. “By working together with MDIs, Wells Fargo can address some of the issues where these banks are located and help reach the unbanked. These investments will complement our community development efforts while positively impacting people in many communities we serve.”
Watch a video about the investment below: