Woodforest National Bank invests $2M in MDI fund
Woodforest National Bank is the first bank to make an equity investment of $2 million in the MDI Keepers Fund sponsored by the National Bankers Association.
The Fund is a national Minority Depository Institutions (MDI) capital fund that will make investments in MDIs that primarily lend or facilitate lending to small businesses or individuals in low- and moderate-income (LMI) areas to promote community development, generate good-job growth and economic development across the nation and throughout Woodforest’s 17-state footprint.
Woodforest’s investment in the Fund is part of a wider effort to support the MDI sector and other strategic initiatives that address the elimination of the racial wealth gap. The Fund is also an innovative and responsive solution to addressing the challenge MDIs face to raise capital to scale their impact to underserved communities.
“Woodforest is proud to participate in the Office of the Comptroller of the Currency’s Project REACh initiative,” said Jay Dreibelbis, president and CEO of Woodforest National Bank. “The MDI Keepers Fund is another way for us to strengthen MDIs who are critical to meeting the unmet financial needs of minority small businesses and families.”
The Fund is managed by minority stakeholders who understand unique loan structural challenges of applicants and can work with MDIs to deploy capital to make the most impact. The Fund will support MDIs by providing patient Tier 1 Capital that strengthens the MDI sector of the community banking industry by providing MDIs with capital to grow and achieve higher levels of profitability. Woodforest’s capital investment has a multiplier effect.