The Mission Driven Bank Fund announces new investments aimed at closing the racial wealth gap

Latest investments support banks serving communities of color in California and Florida

CLEVELAND, OH, July 25, 2024 -- The Mission Driven Bank Fund today announced its latest investments in Community Development Financial Institution (CDFI) and Minority Depository Institution (MDI) banks committed to expanding financial services in underserved communities. The two investments reflect the Fund's aim to help close the racial wealth gap by providing mission-aligned banks with a range of financing instruments and tailored technical services.

The Fund invested in Neighborhood National Bank, a CDFI based in San Diego County providing financial services to minority-, women-, and veteran-owned small businesses in Southern California; and Anchor Bank, an MDI based in Palm Beach Gardens, Fla., which provides affordable housing and small business financing in Hispanic communities in South Florida.

"Neighborhood is perfectly positioned to take advantage of the Mission Driven Bank Fund," said Scott Andrews, president and CEO of Neighborhood National Bank. "The new capital will help us grow, and the technical services program will help us implement new technology and hire banking talent as we look to expand our services and branches in San Diego and Orange Counties."

Nelson Hinojosa, president and CEO of Anchor Bank, added: "We are excited to work with the Mission Driven Bank Fund to continue our mission by increasing access to affordable housing and promoting entrepreneurship for Hispanic Americans, as we expand our operations in Florida."

The Fund, encouraged by the Federal Deposit Insurance Corporation (FDIC) and anchored by Microsoft and Truist, announced its second investor close in June, bringing it to $177 million in capital. It will be raising additional investor funds through May of 2025.

"The Fund continues to engage more mission-aligned banks on the heels of its second closing and remains laser focused on supporting these critical contributors to our national economy," said Paul Welch, portfolio manager of the Fund.

About The Mission Driven Bank Fund
The Mission Driven Bank Fund seeks to foster a stronger and more inclusive banking system by investing capital and providing technical services to CDFIs and MDIs that target African American, Native American, Asian, Hispanic, and Pacific Islander communities. The Fund's mission is to drive significant growth and financial resiliency in the mission-driven bank sector that translates into demonstrated progress in closing the racial wealth gap. Elizabeth Park Capital Management, a specialist firm investing in U.S. banks, and Calvert Impact, a leading impact investing firm, are members of the Fund's general partner. Strategic Value Bank Partners is a subadvisor, and Performance Trust is a capital advisor and structuring agent for the Fund. For more information, go to www.missiondrivenbankfund.org.

About Anchor Bank
Anchor Bank is a Florida-chartered MDI, operating in South Florida since 2005. The bank predominantly serves the Hispanic community in Palm Beach, Broward and Miami-Dade Counties, through its branches located in Lakeworth, Boca Raton, Hallandale and Coral Gables, as well as its corporate headquarters in Palm Beach Gardens. The Bank offers a full range of comercial and consumer banking services and is committed to supporting local businessess by offering them a variety of lending options that meet their unique needs. For more information, go to www.AnchorBank.com.

About Neighborhood National Bank
Neighborhood National Bank (NNB) was the first nationally chartered CDFI bank in the country, and is the only CDFI bank in San Diego County. NNB's mission is to provide financial services to minority-owned, women-owned, and veteran-owned small businesses in low and moderate income communities in Southern California. The Bank currently operates one full-service branch in El Cajon, one loan & deposit production office in Orange County and is planning to open a second full-service branch in South San Diego County in National City in the near future. For more information, go to www.mynnb.com.

About Performance Trust
Performance Trust is the MDBF Capital Markets Advisor and Structuring Agent. Performance Trust Capital Partners, LLC is committed to helping financial institutions improve their long-term performance and deliver shareholder value. Identifying your path to independence requires better tools and clear insights. Performance Trust Capital Partners is a registered broker/dealer, member FINRA/SIPC.  For more information, go to www.performancetrust.com.

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