The Mission Driven Bank Fund (MDBF) has announced a significant milestone, with its second close raising $65 million, thus bringing the total capital dedicated to supporting Minority Depository Institutions (MDIs) and Community Development Financial Institutions (CDFIs) to over $177 million. This fund seeks to make progress in closing the racial wealth gap by providing crucial financial support to these institutions.
The MDBF has welcomed new limited partners, including banks with assets ranging from $6 billion to over $150 billion. Among the notable institutions participating in this second close are Lake City Bank, Enterprise Bank & Trust, Hancock Whitney Bank, and Banner Bank.
John M. Hairston, president & CEO of Hancock Whitney, affirmed the bank's commitment to the fund, stating, "Hancock Whitney was founded 125 years ago to help people and communities achieve their dreams. 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 with Enterprise Bank & Trust, echoed these sentiments, emphasizing the critical role that CDFIs and MDIs play in closing the lending gaps experienced by individuals and small businesses. "MDBF is in a unique position to assist a vital sector of the overall impact investing ecosystem. CDFIs and MDIs play an essential role in closing the lending gaps that individuals and small businesses experience," he said. "We are proud to be an investor in such an innovative fund."
Paul Welch, the Mission Driven Bank Fund portfolio manager, expressed satisfaction with the fund's progress and the promising investment pipeline. "We are pleased with progress toward achieving the Fund's objectives and are encouraged by the robust investment pipeline. The Fund continues to engage with mission-aligned banks to create customized solutions to build capacity and serve their communities," Welch stated.
The fund's mission is to foster a stronger and 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. The strategic alignment of the fund with banks of various sizes underscores the widespread recognition of the importance of addressing financial disparities through targeted investment.
For those interested in more information about the fund's initial investors and portfolio, details can be found at https://missiondrivenbankfund.org. The fund plans to have additional closings through May 2025.
Performance Trust, serving as the MDBF Capital Markets Advisor and Structuring Agent, continues to play a crucial role in helping financial institutions improve their long-term performance and deliver shareholder value. More information about Performance Trust can be found at www.performancetrust.com.
