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

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.”