State Street Announces Next Round of Deposits to Minority Depository Institutions and Community Development Financial Institutions

Rhea-AI Summary

State Street (NYSE: STT) announced new deposits in three minority depository institutions (MDIs) as part of its $100 million initiative to support MDIs and Community Development Financial Institutions (CDFIs). The deposits have been made with Carver State Bank, Citizens Trust Bank, and Ponce Bank. This effort aims to foster economic empowerment in underserved communities. State Street's initiative builds on its 2020 commitment to racial equity, which includes a 10-point action plan to address racism and inequality. The firm has also earned certifications for Black and Hispanic equity at work.

Positive

• State Street made deposits in three MDIs: Carver State Bank, Citizens Trust Bank, and Ponce Bank.
• The initiative is part of a $100 million program to support MDIs and CDFIs with low-cost, stable deposit funding.
• The program aims to foster economic empowerment in underserved communities.
• State Street has a 10-point action plan to address systemic racism.
• The firm achieved the Management Leadership for Tomorrow (MLT) Black Equity at Work Bronze Certification.
• State Street also earned the Hispanic Equity at Work Bronze Certification and renewed its Black Equity at Work Bronze Certification.

Negative

• The PR does not specify the exact financial impact or returns expected from these deposits.
• There is no mention of how the deposits will affect State Street's overall financial performance.
• The announcement lacks detailed information on the distribution of the $100 million program.

• Support of MDIs and CDFIs is part of the firm’s ongoing commitment to encourage economic growth directly through its business practices

BOSTON--(BUSINESS WIRE)-- State Street Corporation (NYSE: STT) today announced that it has made deposits with three mission-driven minority depository institutions (MDIs) including Carver State Bank, Citizens Trust Bank and Ponce Bank.

The deposits are part of the firm’s $100 million program to provide low-cost, stable deposit funding to minority depository institutions (MDIs)¹ and Community Development Financial Institutions (CDFIs)² that launched earlier this year.

“Our partnership strategy with MDI/CDFIs is designed to help foster economic empowerment in the communities being served by contributing to efforts that create more capacity across our partners’ service model,” said Yvette Hollingsworth Clark, chief compliance officer for State Street. “We are honored to be working with each of our partners to help unlock opportunities for those who have been historically underserved and help expand a more inclusive and equitable financial ecosystem.”

This 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 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. Earlier this year, the firm also announced that it has earned both Hispanic Equity at Work Bronze Certification and the renewal of its Black Equity at Work Bronze Certification.

“State Street Bank’s deposit commitment will have a meaningful long-term impact in the underserved communities where our bank does business,” said Robert E. James, II, President and CEO of Carver State Bank. “The State Street team understands and supports Carver’s mission to reduce the wealth gap by providing the building blocks to financial freedom.”

"In a rapidly changing and interconnected world, forming and nurturing partnerships is crucial. We appreciate State Street Bank's partnership with Citizens Trust Bank in providing financial access to all communities,” said Cynthia N. Day, President and CEO of Citizens Trust Bank. “The alignment of mission enhances our impact in providing access to capital for small businesses, supporting homeownership, and addressing disparities in our financial ecosystem. We are proud to be part of this partnership and thank State Street Bank for their commitment to our mission."

“Deposits from forward looking institutions like State Street help us bring financial equity to the underserved but highly deserving communities in and around New York City that we’ve been so proud to support for over 60 years,” said Carlos P. Naudon, President and CEO of Ponce Bank.

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 $43.9 trillion in assets under custody and/or administration and $4.3 trillion* in assets under management as of March 31, 2024, 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 March 31, 2024 includes approximately $66 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 Carver State Bank
As one of just 22 African-American owned banks in the United States, Carver State Bank has a rich heritage and history tied to the Savannah community. Founded in 1927, Carver State Bank is by far the oldest commercial bank headquartered in the Savannah area. Carver is a member of several national and statewide associations, including the National Bankers Association, Community Development Bankers Association, and Georgia Bankers Association. Carver is the only bank headquartered in Savannah that is certified by the United States Treasury Department as a Community Development Financial Institution. For more information, visit www.carverstatebank.com.

About Citizens Trust Bank
Celebrated for being one of the largest African American-owned minority banks in the country, Citizens Trust Bank remains committed to providing personalized service and financial solutions to meet the growing needs of the community. Through a legacy built on economic equality and well-being, the bank’s mission is to empower its customers and future generations for financial success. The Bank offers its common stock over the counter to the public under the trading symbol CZBS (Citizens Bancshares Corporation) and can be found at www.ctbconnect.com.

About Ponce Bank
Ponce Bank (part of the Ponce Financial Group NASDAQ:PDLB): Founded in the Bronx New York in 1960 during a time when most financial institutions were fleeing the area, Ponce Bank has been on a mission to improve financial outcomes for minority and immigrant communities throughout the New York Metro area ever since. The bank has grown to 13 branches, 5 mortgage loan offices, 2.8 Billion in assets, and is now proudly listed on the NASDAQ stock exchange (PDLB). Ponce Bank consistently ranks near the top of all CDFIs in the country for housing focus and impact lending. For more information, visit www.poncebank.com.

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

Information Classification: General

View source version on businesswire.com: https://www.businesswire.com/news/home/20240611416955/en/

Media Contact:

Brendan Paul

Mobile: +1 401 644 9182

Bpaul2@statestreet.com

Source: State Street Corporation

FAQ

What is the recent initiative by State Street (STT) regarding MDIs?

State Street has made deposits in three minority depository institutions as part of its $100 million program to support MDIs and CDFIs.

Which MDIs received deposits from State Street (STT)?

Carver State Bank, Citizens Trust Bank, and Ponce Bank received deposits from State Street.

What is the goal of State Street's $100 million program?

The goal is to provide low-cost, stable deposit funding to support economic empowerment in underserved communities.

What are State Street's commitments to racial equity?

State Street has a 10-point action plan to address racism and inequality and has earned certifications for Black and Hispanic equity at work.

What certifications has State Street (STT) earned for equity?

State Street earned the Management Leadership for Tomorrow (MLT) Black Equity at Work Bronze Certification and the Hispanic Equity at Work Bronze Certification.