Comerica Bank announced recently that it is moving $10 million in deposits to Minority Depository Institutions (MDIs) within its five-state footprint, as well as building a mutual mentoring relationship with these institutions. MDIs assist minority and under-served communities and foster economic viability in these communities.
Of this $10 million in deposits, Comerica has allocated $7.5 million ($2.5 million each) to First Independence Bank in Detroit, Mich.; Broadway Federal Bank in Los Angeles, Calif.; and Unity National Bank in Houston, Texas. The relationship includes a partnership that fosters collaboration and mentorship, with Comerica and MDIs each sharing their expertise in key lines of business.
“Comerica recognizes the critical role Minority Depository Institutions play within communities that have been severely impacted by the COVID-19 pandemic,” said Comerica Bank Chief Community Officer Irvin Ashford, Jr. “Entrepreneurs and small business owners are the anchor of local communities, and working with these MDIs will go a long way to ensuring that they continue to not only survive but thrive in the current economic climate and beyond.”
First Independence Bank
First Independence Bank is the only MDI located in the state of Michigan and is the seventh largest African-American-controlled commercial bank in the United States. Established in 1970, the bank continues to be a responsible leader, efficiently serving the financial needs of its community, businesses and customers nationwide.
“The First Independence Bank and Comerica Bank both hold complimentary synergies and efforts that aim towards empowering Minority Depository Institutions (MDIs) and the communities that we serve, and we are truly thankful for their purposeful support,” said Dimitrius M. Hutcherson chief administrative officer/chief technology officer, First Independence Bank.
Broadway Federal Bank
Broadway Federal Bank was founded in 1946 by a group of civic-minded individuals to provide financial services to minorities in the Greater Los Angeles area, who were not being serviced by the existing financial institutions. Today, the bank is the leading community-oriented savings bank in Southern California serving low- to moderate-income communities and wholly-owned subsidiary of Broadway Financial Corporation (NASDAQ Capital Market symbol: BYFC). The bank is focused on addressing the chronic need for affordable housing for families living within low- to moderate-income communities throughout Southern California.
“This deposit by Comerica Bank is an independent affirmation of Broadway Federal Bank’s strong financial condition during a difficult economic environment” said Broadway Federal Bank Chief Executive Officer Wayne Bradshaw. “Furthermore, it demonstrates Comerica’s confidence in Broadway’s ability to effectively originate loans that support Broadway’s mission of serving low- to moderate-income communities in Southern California, many of which have been disproportionately impacted by the COVID-19 pandemic.”
Unity National Bank
Unity National Bank was founded in 1963 and remains the only African-American-owned banking institution in Texas. The bank works closely with local civic organizations to strengthen the community and promote harmony. Its vision remains to serve as the financial institution that partners with Houston’s under-served communities to create economic opportunities.
“Unity National Bank appreciates the depository investment made by Comerica,” said Unity National Bank President and CEO Laurie Vignaud. “This allows Unity the ability to provide low cost funds to our borrowers who need it the most during these trying COVID-19 times. We are living through very unusual times, therefore having financial institutions like Comerica reach out to offer assistance, is very noteworthy and meaningful.”
Comerica’s support of these in MDIs is the latest action taken to support local communities battling the COVID-19 pandemic. In May, Comerica Bank and the Comerica Charitable Foundation announced investments totaling $8 million in support for community programming and businesses impacted by COVID-19. Investments impacting communities include:
– Investments of $3.1 million with three community development financial institutions (CDFIs), Lendistry ($1.5MM), Clearinghouse CDFI ($1.1MM) and California FarmLink ($500,000), all intended to support access to capital for underserved communities and small businesses impacted by the COVID-19 crisis.
– Partnership with the National Business League that includes a $1 million investment to help launch the Black Capital Access Program (BCAP), an access to capital initiative assisting Black businesses across the country.
– Virtual Small Business Bootcamps hosted across Comerica’s five-state footprint of Arizona, California, Florida, Michigan and Texas. These free financial workshops aid local businesses and entrepreneurs impacted by the COVID-19 pandemic.
Comerica Incorporated (NYSE: CMA) is a financial services company headquartered in Dallas, Texas, and strategically aligned by three business segments: The Commercial Bank, The Retail Bank, and Wealth Management. Comerica focuses on relationships, and helping people and businesses be successful. In addition to Texas, Comerica Bank locations can be found in Arizona, California, Florida and Michigan, with select businesses operating in several other states, as well as in Canada and Mexico. Comerica reported total assets of $84 billion at June 30, 2020.