State Street Announces $100 Million Program for Minority Depository Institutions and Community Development Financial Institutions

Rhea-AI Summary

State Street Corporation (STT) announces a $100 million program to support minority depository institutions and community development financial institutions. The initiative aims to address inequities in communities by providing low-cost funding. State Street partners with Optus Bank and Mechanics & Farmers Bank to promote economic growth and job creation in underserved communities.

BOSTON--(BUSINESS WIRE)-- State Street Corporation (NYSE: STT) today announced a $100 million program to provide low-cost, stable deposit funding to minority depository institutions (MDIs)¹ and Community Development Financial Institutions (CDFIs)², to support the firms’ collective missions of addressing inequities in our communities by working toward a more just and equitable future.

As a part of this program, the firm is initially partnering with two mission-driven MDIs - Optus Bank and Mechanics & Farmers Bank (M&F Bank). Both MDIs and CDFIs support low-to-moderate income communities through lending, affordable housing and workforce development.

“Our partnerships with MDIs and CDFIs are part of our firm’s broader business strategy to expand the financial market ecosystem and help unlock economic potential by encouraging long term growth and job creation – which ultimately promotes more equitable and prosperous outcomes for our key stakeholders and the communities we serve,” said Ron O’Hanley, chairman and chief executive officer of State Street. “MDIs and CDFIs play a critical role in fueling economic growth within underserved and underbanked communities and it is an honor to be partnering with Optus Bank and M&F Bank and helping advance racial and wealth equity through our business practices.”

“We greatly appreciate State Street’s partnership and the shared commitment to closing the wealth gap by increasing access to financial support for underserved communities,” said Dominik Mjartan, President and CEO of Optus Bank.

This program, builds upon State Street’s actions to advance racial equity. In 2020, State Street announced its 10 Actions to Address Racism and Inequality, a 10-point action plan with the ultimate goal of helping to end systemic racism in our communities. Additionally the firm became the first Global Systemically Important Financial Institution (GSIFI) to achieve the Management Leadership for Tomorrow (MLT) Black Equity at Work Bronze Certification, a designation for employers who have demonstrated a commitment to a systematic, results-oriented approach to Black equity in the workplace.

“This significant deposit partnership with State Street will allow us to continue to support small businesses and consumers to reduce the overall wealth gap in North Carolina,” said M&F Bank President and CEO James H. Sills, III. “We appreciate the confidence State Street has placed in our ability to understand our customer base and offer financial services that build wealth in our communities.”

Click here to learn more about the ways in which State Street has continued to advance this mission.

About State Street Corporation

State Street Corporation (NYSE: STT) is one of the world's leading providers of financial services to institutional investors including investment servicing, investment management and investment research and trading. With $41.8 trillion in assets under custody and/or administration and $4.1 trillion* in assets under management as of December 31, 2023, State Street operates globally in more than 100 geographic markets and employs approximately 46,000 worldwide. For more information, visit State Street's website at www.statestreet.com.

*Assets under management as of December 31, 2023, includes approximately $64 billion of assets with respect to SPDR® products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Global Advisors are affiliated.

About Optus Bank

Established in 1921 by visionary and courageous African Americans, Optus Bank is on a mission to empower our customers and communities to build lasting wealth and live better financial lives. Optus Bank is federally designated Minority Depository Institution and a U.S. Treasury certified Community Development Financial Institution with $530 million in assets and thousands of customers across the U.S. served by mission driven bankers and digital banking solutions.

About M&F Bank

Founded in 1907 in North Carolina, M&F Bank is the second-oldest minority-owned bank in the United States. The bank is located in the five largest markets in North Carolina. With $428.8 million in total assets, M&F Bank is the eighth-largest African American owned financial institution in the United States and the only MDI in North Carolina to receive the CDFI designation and SBA 7(a) preferred lender status. The bank has established partnerships with three national banks to allow its customers to access 44,000 ATMs nationwide for free. The bank’s mission is to promote personal and community development by providing capital to small- and medium-sized businesses in its local communities.

© 2024 State Street Corporation
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¹ FDIC: Minority Depository Institutions Program
² cdfi_infographic_v08a.pdf (cdfifund.gov)

View source version on businesswire.com: https://www.businesswire.com/news/home/20240229534378/en/

Ed Patterson

+1 (404) 213-3106

epatterson@statestreet.com

Source: State Street Corporation

FAQ

What program did State Street Corporation announce?

State Street Corporation announced a $100 million program to provide low-cost, stable deposit funding to minority depository institutions and Community Development Financial Institutions.

Who are the initial partners of State Street's program?

The initial partners of State Street's program are Optus Bank and Mechanics & Farmers Bank.

What is the goal of State Street's program with MDIs and CDFIs?

The goal of State Street's program with MDIs and CDFIs is to address inequities in communities by supporting economic growth and job creation in underserved areas.

Who is the chairman and CEO of State Street Corporation?

Ron O'Hanley is the chairman and chief executive officer of State Street Corporation.

How does Optus Bank's President and CEO feel about the partnership with State Street?

Dominik Mjartan, President and CEO of Optus Bank, appreciates State Street's partnership and shared commitment to closing the wealth gap by increasing financial support for underserved communities.