News Summary
The Mission Driven Bank Fund has made a significant investment in Warsaw Federal Savings and Loan Association, a key community bank in Cincinnati. This marks MDBF’s 12th commitment, aimed at supporting minority depository institutions and enhancing financial services in underserved communities, promoting economic opportunity and inclusivity.
Cincinnati, Ohio – Mission Driven Bank Fund Invests in Community Development
The Mission Driven Bank Fund (MDBF) has made a significant investment in Warsaw Federal Savings and Loan Association, a community bank located in the Cincinnati region. This latest investment marks the 12th commitment for MDBF, which is affiliated with Lakewood’s First Mutual Holding Co. (FMHC). While the exact size of the investment has not been disclosed, it is noted that MDBF has already deployed over one-third of its $200 million in capital since launching its inaugural fund in August.
MDBF is dedicated to supporting minority depository institutions (MDIs) and community development financial institutions across the United States. The organization has strong connections to Northeast Ohio, primarily managed by Elizabeth Park Capital Management, based in Pepper Pike.
Strategic Importance of Warsaw Federal
Warsaw Federal stands out as one of only two MDIs in Ohio and uniquely serves the Cincinnati area, holding approximately $93.4 million in assets, as reported by the Federal Deposit Insurance Corporation (FDIC). The mutual bank joined the FMHC umbrella in 2019, which represents a group of mutual banks, including First Federal Lakewood and three others.
In 2024, FMHC raised roughly $1.25 million in a targeted $5 million capital raise intended for Warsaw through the issuance of mutual capital certificates. It is important to note that these certificates are subordinate to all other claims on assets, presenting inherent risks to investors and lacking FDIC insurance.
Community Impact and Future Plans
The investment from MDBF is earmarked to enhance financial services, tools, and educational resources aimed at promoting economic opportunity and financial equity within the communities served by Warsaw Federal. The bank’s leadership has underscored the significance of empowering underserved communities in Greater Cincinnati, emphasizing a commitment to inclusivity, as they strive to ensure that their services are accessible to everyone.
MDBF Portfolio Manager expressed appreciation for Warsaw Federal’s commitment to driving economic vitality in underserved neighborhoods. The investment represents a crucial step forward toward Warsaw Federal’s strategic growth objectives, ultimately aiming to strengthen the region’s local communities.
Conclusion
This partnership between MDBF and Warsaw Federal demonstrates a committed effort to enhance economic development in Cincinnati and support the financial needs of its local residents. By providing necessary resources and support to a key minority depository institution, the investment reflects a broader movement toward financial inclusivity and community empowerment in the region.
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Additional Resources
- Crain’s Cleveland: Mission Driven Bank Fund Invests in Community Development
- Wikipedia: Community Development Financial Institution
- Banking Dive: Warsaw Federal Transitions to an MDI
- Google Search: Minority Depository Institutions
- American Banker: Mutuals See Future in Cincinnati Banks
- Encyclopedia Britannica: Banking
- Crain’s Cleveland: Tom Fraser Named One of Banking’s Most Influential People
- Google News: Cincinnati Banks
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