Climate Change Data

M&F Bancorp, Inc.

Climate Impact & Sustainability Data (2021, 2022, 2023)

Reporting Period: 2021

Environmental Metrics

ESG Focus Areas

  • Community Development
  • Diversity and Inclusion

Social Achievements

  • Participated in round two of the Paycheck Protection Program, generating over $35.0 million in loans to 642 businesses in 81 North Carolina markets.
  • Four of the largest US banks invested $17.5 million in new capital into the Company.
  • Received $76.0 million in new capital through the Emergency Capital Investment Program (ECIP).

Climate Goals & Targets

Environmental Challenges

  • COVID-19 pandemic and its potential negative impact on estimates and vulnerabilities due to business concentration.
Mitigation Strategies
  • Associates continued to operate branch locations and work from home to support customers.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Period: 2022

Environmental Metrics

ESG Focus Areas

  • Community Development
  • Financial Inclusion

Social Achievements

  • Generated over $79.0 million in loans to the communities served.
  • Maintained a low delinquency rate (0.45%) for five consecutive years.
  • Increased capital to $118.1 million (from $42.9 million in 2021).

Climate Goals & Targets

Short-term Goals:
  • Planned one cent per share dividend increase in 2023

Environmental Challenges

  • Uncertain economic environment
Mitigation Strategies
  • Prudent reserve building

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Period: 2023

Environmental Metrics

ESG Focus Areas

  • Community Development
  • Workforce Diversity
  • Technology Investment

Social Achievements

  • Exceeded annual Emergency Capital Investment Program lending requirement by 161%, originating $49.9 million (vs. $31 million goal).
  • Surpassed required CDFI lending percentage of 60% to minority firms, reaching over 70%.
  • Implemented a new cloud-based loan origination system to enhance customer service.
  • Received an Equitable Recovery Program grant of $2.4 million and a 10th BEA award totaling $423 thousand.

Climate Goals & Targets

Short-term Goals:
  • One-cent-per-share per quarter dividend increase in 2024.

Environmental Challenges

  • Heightened deposit costs and inflation industry-wide.
  • High compliance costs associated with Money Service Business (MSB).
Mitigation Strategies
  • Prudent reserve building driven by organic loan growth and higher interest rates.
  • Transitioned away from the Money Service Business due to high compliance costs.
  • Launched a new SBA 7A line of business to generate additional interest and fee income.

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

  • "Best Bank in Durham and Raleigh" in 2023