BIRMINGHAM, Ala.--(BUSINESS WIRE)--The Regions Community Development Corporation, a wholly owned subsidiary of Regions Bank, on Tuesday announced a $2 million equity investment in Optus Bank, a federally designated minority depository institution (MDI) and community development financial institution (CDFI).
The investment will support Optus Bank’s mission to strengthen communities and close the racial wealth gap through access to capital for individuals and businesses. Over 90% of Optus Bank’s assets are invested in communities of color, and Optus is focused on consistently empowering people and small businesses through innovative ways of managing finances, building savings, and accessing crucial financial services to achieve financial goals ranging from homeownership to business growth.
“Optus exists to support equitable growth by channeling resources to underserved people and places,” said Dominik Mjartan, Optus Bank president and CEO. “Over the past five years, our bank has grown 500% and reached sustained profitability. This significant investment from the Regions Community Development Corporation caps a $20 million capital raise that will allow us to more than double in size and impact.”
The Regions Community Development Corporation investment in Optus Bank is part of Regions’ comprehensive commitment to support racial equity, economic empowerment and inclusive prosperity through grants, investments, volunteerism and community engagement. In 2020, Regions Bank and the Regions Foundation committed a combined $12 million over two years to advance programs and initiatives that create more inclusive opportunities for success. The Regions Foundation is a nonprofit initiative that supports community investments and is primarily funded by Regions Bank.
“Optus Bank plays a crucial role in creating more inclusive prosperity by providing access to capital in areas where there has been a history of disinvestment,” said David Christian, head of Community Development Lending and Investments and Regions Community Development Corporation chief operating officer. “Because of the efforts of Optus, and this new investment from the Regions Community Development Corporation, more people will be able to achieve important goals, such as buying their first homes or receiving affordable, accessible loans to grow and expand their business. The result is greater economic stability – and greater equity across the communities we serve.”
The Regions Community Development Corporation, Regions Bank and the Regions Foundation aim to build inclusive prosperity through targeted community engagement in three priority areas: economic and community development, education and workforce readiness, and financial wellness. More information is available in the Community Engagement section of regions.com.
About Regions Financial Corporation
Regions Financial Corporation (NYSE:RF), with $156 billion in assets, is a member of the S&P 500 Index and is one of the nation’s largest full-service providers of consumer and commercial banking, wealth management, and mortgage products and services. Regions serves customers across the South, Midwest and Texas, and through its subsidiary, Regions Bank, operates more than 1,300 banking offices and approximately 2,000 ATMs. Regions Bank is an Equal Housing Lender and Member FDIC. Additional information about Regions and its full line of products and services can be found at www.regions.com.
About Regions Community Development Corporation
Regions Community Development Corporation (RCDC) is a wholly owned subsidiary of Regions Bank and serves as a catalyst to help revitalize communities and improve the lives of economically disadvantaged families in the Regions footprint. RCDC helps fulfill Regions’ mission to make life better by providing debt and/or equity financing for projects and entities with a community-development purpose.
About Regions Foundation
Regions Foundation supports community investments that positively impact the communities served by Regions Bank. The Foundation engages in a grantmaking program focused on priorities including economic and community development; education and workforce readiness; and financial wellness. The Foundation is a nonprofit 501(c)(3) corporation funded primarily through contributions from Regions Bank.
About Optus Bank
Optus Bank’s origins date back to 1921 when a group of visionary and courageous African American leaders founded a bank on the principle that all people should have access to the American Dream, regardless of their circumstances. Optus Bank is a federally designated Minority Depository Institution, a U.S. Treasury Certified Community Development Financial Institution and an FDIC insured depository.