The Mission Driven Bank Fund (MDBF) has successfully completed its second round of funding, securing an additional $65 million. This brings the total capital committed to more than $177 million, aimed at supporting FDIC-insured Minority Depository Institutions (MDIs) and Community Development Financial Institutions (CDFIs). These institutions play a crucial role in addressing the racial wealth gap by providing much-needed financial services to underserved communities.
The Fund's latest round of investments saw participation from banks with assets ranging between $6 billion and over $150 billion. Notable contributors include Lake City Bank, Enterprise Bank & Trust, Hancock Whitney Bank, and Banner Bank. These institutions have aligned their missions with that of the MDBF to provide financial stability and growth opportunities to minority and community banks.
John M. Hairston, President & CEO of Hancock Whitney Bank, emphasized the alignment of the MDBF's objectives with the bank's mission to support community growth and economic stability. "Hancock Whitney was founded 125 years ago to help people and communities achieve their dreams," Hairston said. "We believe investing in the MDBF aligns with our mission, purpose, and core values and supports working together to help people and businesses grow and protect their financial futures, which in turn supports strong economies, new opportunities, and enhanced quality of life for all people in the communities we serve."
Rickey Jimenez, Director of Community Reinvestment at Enterprise Bank & Trust, highlighted the essential role of CDFIs and MDIs in closing lending gaps for individuals and small businesses. "MDBF is in a unique position to assist a vital sector of the overall impact investing ecosystem. CDFI's and MDI's play an essential role in closing the lending gaps that individuals and small businesses experience," said Jimenez. "We are proud to be an investor in such an innovative fund."
Paul Welch, the portfolio manager of the Mission Driven Bank Fund, expressed optimism about the Fund's progress and future engagements. "We are pleased with progress toward achieving the Fund's objectives and are encouraged by the robust investment pipeline," Welch stated. "The Fund continues to engage with mission-aligned banks to create customized solutions to build capacity and serve their communities."
The MDBF aims to foster a 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. By driving growth and financial resilience in these mission-driven banks, the MDBF seeks to make tangible progress in closing the racial wealth gap. The Fund will continue with additional closings through May 2025, further expanding its impact and reach.
For more information about the Mission Driven Bank Fund, visit https://missiondrivenbankfund.org.
