State Street Announces Additional Round of Deposit Placements through Minority Depository Institutions and Community Development Financial Institutions

Rhea-AI Summary

State Street (NYSE: STT) has announced additional deposit placements through two minority depository institutions (MDIs) and Community Development Financial Institutions (CDFIs): Leader Bank in Massachusetts and Local Bank in Oklahoma. This is part of State Street's $100 million program launched earlier this year, with 75% of funds already placed. The initiative aims to provide low-cost, stable deposit funding to underserved communities.

State Street will host an event on September 17 for CEOs and executive leadership of all seven banks participating in its MDI/CDFI deposit program. This convening will focus on enhancing partnerships and driving further community impact. The program aligns with State Street's ongoing efforts to address racism and inequality, including its 10 Actions plan announced in 2020 and the completion of an independent Civil Rights Audit.

Positive

• 75% of the committed $100 million in deposits has been placed through MDIs/CDFIs in 2024
• Partnerships with Leader Bank and Local Bank to support underserved communities
• Hosting an event for CEOs of participating banks to enhance partnerships and drive community impact
• Aligns with State Street's ongoing efforts to address racism and inequality

Negative

• None.

Insights

Financial Analyst

State Street's deposit program with MDIs and CDFIs is a strategic move that aligns with ESG initiatives and community development goals. The placement of $75 million out of the committed $100 million demonstrates strong execution and commitment to the program. This initiative could potentially enhance State Street's reputation and strengthen relationships with diverse communities, which may lead to new business opportunities and improved brand perception. However, the direct financial impact on State Street's bottom line is likely to be minimal in the short term, given the relatively small amount compared to the company's overall assets. Investors should view this as a long-term investment in corporate social responsibility and market expansion rather than an immediate profit driver.

Market Research Analyst

This initiative positions State Street as a leader in financial inclusion and community development. The company's proactive approach in organizing a CEO convening demonstrates a commitment to fostering collaboration and maximizing impact. This could lead to increased brand loyalty and potentially attract socially conscious investors. The focus on MDIs and CDFIs aligns with growing market trends towards diversity and inclusion in finance. While the immediate financial impact may be , the long-term benefits could include expanded market reach and improved stakeholder relationships. Investors should consider this as part of State Street's broader strategy to adapt to changing market dynamics and position itself for future growth in an increasingly socially aware financial landscape.

• Firm has placed more than 75% of the committed $100M in deposits through MDIs / CDFIs in 2024;
• Will convene CEOs of all announced MDI/CDFI Banks to help further drive impact for their communities

BOSTON--(BUSINESS WIRE)-- State Street Corporation (NYSE: STT) today announced that it has placed an additional round of deposits through two minority depository institutions (MDIs) and Community Development Financial Institutions (CDFIs), Massachusetts-based Leader Bank and Oklahoma-based Local Bank. These placements are the latest installment of the firm’s $100 million program that launched earlier this year to facilitate low-cost, stable deposit funding to the communities it serves, and 75% of the funds have been placed.

“We are proud to once again partner with leading MDIs and CDFIs through our partnerships with Leader Bank and Local Bank, two institutions playing a vital role in providing opportunities for underserved communities and helping to foster economic empowerment,” said Ron O’Hanley, chairman and chief executive officer of State Street. “We remain committed to expanding the financial market ecosystem that these institutions service, and look forward to seeing our combined efforts with these two banks contribute to growth and job creation within their respective communities.”

Founded in 2002, Leader Bank is a financial institution known for its entrepreneurial approach to banking. Guided by core values of exceptional client service, exemplary products, and a commitment to innovation for its clients, Leader Bank has seen rapid growth across a wide range of commercial and retail offerings. As a dedicated corporate citizen, Leader Bank takes pride in its active partnerships with philanthropic organizations, demonstrating its unwavering commitment to community support.

“We are honored to be partnering with State Street Bank and appreciate its ongoing commitment to supporting our broader mission to offer our clients creative financial products and customized solutions that allow them to achieve financial prosperity for themselves, their families, and their businesses,” said Sushil K. Tuli, chairman and chief executive officer of Leader Bank.

Local Bank was founded by prominent members of the Cherokee Nation in 1907. Proudly Native-owned and Native-led, the bank is headed by Chairman and CEO Susan Plumb. As the only bank in the town of Hulbert, Oklahoma, with additional branches in Tahlequah, Grove, Sallisaw, and Park Hill, Local Bank goes beyond traditional banking services, deeply investing in the communities it serves. Uniquely committed to its roots, Local Bank reinvests 95% of its deposits directly back into Cherokee County, supporting local growth and prosperity in ways that set it apart from conventional banks.

“From supporting small businesses to achieving homeownership and everything in between, we are confident that State Street’s deposit will create a long-lasting impact within the communities that we serve,” said Susan Plumb, chairman and chief executive officer of Local Bank.

On September 17, State Street will host an event for the CEOs and executive leadership of all seven announced banks of State Street’s MDI/CDFI deposit program. The full day convening will serve as an opportunity for State Street to further enhance the partnerships and discuss in detail how to drive further impact within these communities.

The MDIs and CDFIs deposits program continues to further build 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 completed an independent Civil Rights Audit, which provided recommended actions to help establish State Street as an industry leader in advancing civil rights and racial equity.

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 $44.3 trillion in assets under custody and/or administration and $4.4 trillion* in assets under management as of June 30, 2024, State Street operates globally in more than 100 geographic markets and employs approximately 53,000 worldwide. For more information, visit State Street's website at www.statestreet.com.

*Assets under management as of June 30, 2024 includes approximately $69 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.

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© 2024 State Street Corporation

About Leader Bank

Founded in 2002, Leader Bank, N.A. is a Massachusetts-based entrepreneurial financial institution that approaches banking differently. At its founding, Leader Bank had $6.5 million in assets – in the two decades since, the Bank has grown into one of the most successful financial institutions in the Commonwealth with more than $4 billion in assets. Leader Bank’s team members have been at the forefront of supporting the Bank’s rapid growth and client-oriented solutions over the last two decades as the Bank has expanded its commercial and retail products and solutions. Leader Bank is a committed corporate citizen and prides itself on partnering with and supporting philanthropic organizations. More information on Leader Bank can be found at www.leaderbank.com.

About Local Bank

Local Bank was founded in 1907 in Indian Territory, which existed until statehood. Native-owned & native led – Local Bank is headed by Chairman & CEO Susan Plumb. Local Bank sees its responsibilities extending beyond what is usually thought of as “ordinary” banking functions. Unlike "ordinary" banks, Bank of Cherokee County invests 95% of deposits back into Cherokee County. Community reinvestment is nothing new to Local Bank. Since the bank’s founding at the turn of the century, its mission has been to serve its community. With that being said, Local Bank is about celebrating the dreamers, doers, and achievers in our local communities since 1907. More information on Local Bank can be found at www.localbank.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240916712579/en/

Media Contact:

Brendan Paul

Mobile: +1 401 644 9182

Bpaul2@statestreet.com

Source: State Street Corporation

FAQ

What is State Street's (STT) commitment to minority depository institutions and community development financial institutions?

State Street (STT) has committed $100 million in deposits through minority depository institutions (MDIs) and Community Development Financial Institutions (CDFIs), with 75% of the funds already placed in 2024. This program aims to provide low-cost, stable deposit funding to underserved communities.

Which banks are part of State Street's (STT) latest deposit placement round?

State Street's (STT) latest deposit placement round includes Leader Bank in Massachusetts and Local Bank in Oklahoma, both of which are minority depository institutions (MDIs) and Community Development Financial Institutions (CDFIs).

What event is State Street (STT) hosting on September 17, 2024 related to its MDI/CDFI program?

On September 17, 2024, State Street (STT) is hosting an event for CEOs and executive leadership of all seven banks participating in its MDI/CDFI deposit program. The full-day convening aims to enhance partnerships and discuss ways to drive further impact within these communities.

How does the MDI/CDFI deposit program align with State Street's (STT) broader initiatives?

The MDI/CDFI deposit program aligns with State Street's (STT) ongoing efforts to address racism and inequality, including its 10 Actions to Address Racism and Inequality plan announced in 2020 and the completion of an independent Civil Rights Audit.