On June 2, Bank of America made a $1 billion, four-year commitment to advance racial equality and economic opportunity, of which $50 million is dedicated to support minority depository institutions (MDIs) and community development financial institution (CDFI) banks. As part of that commitment, on October 26, 2020, Bank of America announced that it has completed equity investments in ten of these institutions, including Carver Financial Corporation, the holding company that owns Carver State Bank of Savannah. These investments will benefit individuals, institutions and communities served by the MDIs and CDFIs across multiple states through lending, housing, neighborhood revitalization, and other financial services.
“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.
Bank of America has invested in Carver Bancorp, Inc. (New York), Carver Financial Corporation (Georgia), CNB Bancorp, Inc. (Alabama), CSB&T Bancorp, Inc. (Tennessee), First Independence Corporation (Michigan), Liberty Financial Services, Inc. (Louisiana), M&F Bancorp, Inc. (North Carolina), SCCB Financial Corp. (South Carolina), Southern Bancorp, Inc. (Arkansas) and Unity National Bank of Houston, N.A. (Texas). These equity investments, totaling approximately 4.9% of the common equity in each organization, are in addition to approximately $100 million in deposits from Bank of America in MDIs. It also operates a $1.6 billion Community Development Financial Institution (CDFI) portfolio with 255 partner CDFIs across all 50 states, providing access to capital to thousands of individuals and small businesses.