The Mission Driven Bank Fund (MDBF) has made a strategic investment in American Bancorp Inc., the parent company of American Pride Bank, to bolster financial inclusivity and community development efforts. This marks the Fund's eighth such investment, highlighting its dedication to creating a more inclusive banking system. American Pride Bank, recognized as a Minority-Depository Institution (MDI), will channel the investment towards expanding essential financial services, with a keen focus on enhancing homeownership and small business opportunities in underserved communities.
Currently, American Pride Bank's loan portfolio is heavily weighted towards supporting businesses in low- and moderate-income areas, with approximately 75% of its loans benefiting racial and ethnic minority groups. Dominik Mjartan, CEO of American Bancorp Inc. and American Pride Bank, reiterated the bank's commitment to providing access to financial products that empower individuals to reach their economic aspirations. Plans are underway to establish a specialized mortgage division and to broaden the bank's real estate, small business, and consumer lending services.
Paul Welch, the Fund's portfolio manager, described the investment as a continuation of their strategy to forge lasting partnerships that promote a more equitable banking environment. The Mission Driven Bank Fund specifically seeks out Community Development Financial Institutions (CDFIs) and Minority Depository Institutions that cater to African American, Native American, Asian, Hispanic, and Pacific Islander communities. This partnership between the Mission Driven Bank Fund and American Pride Bank is a calculated effort to combat systemic financial inequalities.
By offering targeted capital and technical support, the initiative is designed to foster significant growth and financial stability within mission-driven banking sectors, while also aiming to reduce the racial wealth gap. This investment is a component of the Fund's ongoing capital raising activities, which are scheduled to proceed until May 2025. The collaboration reflects a shared vision for developing more inclusive financial ecosystems that offer economic opportunities to traditionally marginalized communities.
