Synovus Partners with Minority Depository Institutions
Synovus has provided more than $8 million in deposits to 14 Minority Depository Institutions (MDIs) and Community Development Financial Institutions (CDFIs) within its five-state footprint.
MDIs are federal insured depository institutions with 51 percent or more of the voting stock owned by minority individuals, or a majority of the board of directors is minority and the community the institution serves is predominantly minority.1 CDFIs are mission-driven financial institutions — including banks, credit unions, loan funds or venture capital funds — that create economic opportunity for individuals and small businesses, quality affordable housing, and essential community services.2 Deposits are acquired from Synovus as certificates of deposits and may be used by the MDI/CDFI for lending or economic development activities in the community it serves.
“Minority Deposit Institutions and Community Development Financial Institutions are essential providers of capital, support, and expertise for many small businesses and entrepreneurs in underserved and minority communities,” said Gloria Banks, Chief Ethics and Compliance Officer for Synovus. “Synovus is very proud to support the vital role of MDIs and CDFIs in addressing the racial wealth gap by providing capital for deployment in the communities they serve.”
Of the $8 million in deposits, approximately $4.5 million have been allocated to Security Federal Bank in Aiken, South Carolina; and Optus Bank in Columbia, South Carolina, and two other banks in Atlanta and West Alabama. Optus Bank and the Atlanta-based bank are Black-owned MDIs that are also CDFIs.
The remaining deposits have been allocated to three banks in Georgia, three banks in Alabama, two banks in Florida, one bank in Tennessee, and one credit union in South Carolina.