M&F Financial institution to Obtain Investments from Banks to Shut Racial Wealth Hole
Four of the largest US banks have made stakes in M&F Bank, which will use the capital to expand their franchise and better serve their customers.
Late last year and early 2021, Wells Fargo, CitiBank, JPMorgan Chase Investments and Bank of America invested in the bank, which totaled $ 18 million. The investments bring the company’s total capital to more than $ 40 million.
M&F Bank announced in a press release that it will use the funds to implement new technology and automation to offer additional products and services to its customers, including free access to a nationwide network of more than 13,000 ATMs, creating a stronger branch networks and better access to capital will be created in underserved communities.
James Sills, President and CEO of M&F Bank, said in a statement that the bank is excited about the investment as MDIs will play a critical role in closing the racial wealth gap.
“We are excited and honored to receive this investment in recognition of the critical role MDIs play in reducing the wealth gap between minorities and in underserved communities. It also confirms our deep and longstanding connection with the people and businesses of North Carolina who need us now more than ever when they are rebuilt after the pandemic, “Sills said in a press release. “Strategic partnerships like this are part of an effort to achieve a wider recovery for color communities disproportionately affected by the pandemic.”
M&F Bank was founded in North Carolina in 1907 and is the second oldest minority bank in the United States. As of December 31, 2020, the bank had more than $ 309.1 million in assets.
“These investments are testament to the strength of the franchise, the health and health of the company and the communities we serve,” added Sills.
M&F Bank’s mission is to advance personal and community development by providing capital to small and medium-sized businesses in local communities.