OneMain announces $50 million commitment to support minority depository institutions and veterans

Rhea-AI Summary

OneMain Financial has announced a commitment of $50 million to support minority depository institutions (MDIs) and military veterans. The funding is divided into two equal parts, with $25 million allocated to MDIs, including Sunstate Bank in Florida and First Independence Bank in Michigan. The remaining $25 million will go to Academy Securities, an investment bank owned by disabled veterans, aimed at providing training and job placement services for veterans. OneMain's efforts are in line with its mission to improve financial well-being in underserved communities.

Positive

• Commitment of $50 million to support MDIs and military veterans.
• $25 million allocated to support financial services in underserved communities through Sunstate Bank and First Independence Bank.
• $25 million invested in Academy Securities for veteran job placement and transition services.

Negative

• None.

NEW YORK--(BUSINESS WIRE)-- OneMain Financial, the leader in offering nonprime customers responsible access to credit, announced today that it has committed $50 million dollars to support minority depository institutions (MDIs) and military veterans.

The company’s $50 million commitment is managed in equal parts through two J.P. Morgan Asset Management programs. The first $25 million is deposited in the Empower money market share class to benefit two MDIs selected by OneMain: Sunstate Bank, based in Florida, and First Independence Bank, based in Michigan. These banks provide financial services in underserved communities. The other $25 million is deposited in the Academy money market share class – a partnership with Academy Securities, a disabled veteran-owned and operated investment bank – to support training and services to veterans, including job placement and transition services for veterans moving from active duty to civilian life.

“OneMain is focused on aligning our cash management strategy with our mission to improve the financial well-being of hardworking Americans, particularly those in underserved communities. Our recent commitments in support of minority depository institutions and military veterans are designed to help communities become more financially secure and build stronger economic futures,” said OneMain Chairman and CEO Doug Shulman.

OneMain has a significant presence in the states where Sunstate Bank and First Independence Bank are located, operating 70 branches and employing more than 400 team members in Florida, and operating 25 branches and employing about 150 team members in Michigan.

“It is great to see the leadership of OneMain Financial taking proactive steps to demonstrate inclusion. The collaboration between J.P. Morgan’s Empower share class with OneMain creates new opportunities for institutions like First Independence Bank. The interdependence in finance is critical to create inclusion that is sustainable,” said Kenneth Kelly, Chairman and CEO of First Independence.

“As we focus on providing capital and financial services to our community, OneMain’s investment in J.P. Morgan’s Empower share class will expand our reach in helping underserved populations across the state of Florida,” said Lloyd DeVaux, President and CEO of Sunstate Bank. “We continue to focus on making progress on our mission to provide equitable access to resources and are empowered by the support of institutions like J.P. Morgan and OneMain Financial.”

“Academy Securities has been honored to share our social mission to benefit veteran hiring initiatives with OneMain. Over the years of our partnership, OneMain has consistently set a clear and elevated standard in fostering opportunities for individuals and organizations that represent and evangelize the value of military veterans and their service. As part of OneMain’s commitment to social responsibility, Academy serves to deliver impact by reinvesting in our platform and creating frameworks for transitioning veterans to build career equity, post service to nation,” said Chance Mims, CEO of Academy Securities.

OneMain continues to expand opportunities for underserved borrowers through its impact investment strategy. In 2021, the company issued a $750 million Social Bond to serve credit-disadvantaged communities around the country, with a focus on women and minority customers. OneMain deepened this commitment in 2022 with a $600 million Social ABS Bond, the first of its kind by a U.S. issuer. Loans from the Social ABS serve borrowers residing in rural communities, at least 75% of whom are lower- income borrowers with annual net incomes of less than or equal to $50,000. In addition, OneMain has previously committed $35 million to funds supporting the Thurgood Marshall College Fund for students attending historically black colleges and universities and environmental investments.

About OneMain Financial

OneMain Financial (NYSE: OMF) is the leader in offering nonprime customers responsible access to credit and is dedicated to improving the financial well-being of hardworking Americans. We empower our customers to solve today’s problems and reach a better financial future through personalized solutions available online and in 1,400 locations across 44 states. OneMain is committed to making a positive impact on the people and the communities we serve. For additional information, please visit OneMainFinancial.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230118005629/en/

Kelly Ogburn

410-537-9028

kelly.ogburn@omf.com

Source: OneMain Financial

FAQ

What is the purpose of OneMain Financial's $50 million commitment?

The $50 million commitment aims to support minority depository institutions and military veterans, enhancing financial well-being in underserved communities.

Which financial institutions are involved in OneMain's investment?

OneMain's investment includes $25 million in Sunstate Bank and First Independence Bank, both minority depository institutions, and $25 million in Academy Securities.

How does OneMain Financial support military veterans?

OneMain supports military veterans through a $25 million investment in Academy Securities, which focuses on providing job placement and transition services for veterans.

What impact does OneMain's commitment have on underserved communities?

OneMain's $50 million commitment is intended to strengthen financial services and create economic opportunities in underserved communities.

What is OneMain Financial's overall mission?

OneMain Financial's mission is to improve the financial well-being of hardworking Americans, particularly those in underserved communities.

What actions has OneMain Financial taken to support Social Bonds?

OneMain issued a $750 million Social Bond in 2021 and a $600 million Social ABS Bond in 2022 to serve credit-disadvantaged communities.