The holding company for Springfield-based Legacy Bank and Trust Co. was approved for federal funding from the U.S. Treasury Department.
Ozarks Heritage Financial Group Inc., the holding company, is set to receive $81.7 million through the Emergency Capital Investment Program, which is designed to support disadvantaged businesses and communities, according to a news release.
“This injection of capital in Legacy Bank and Trust will enable us to continue to expand our mission of community development and, more specifically, a focus on increasing the availability of affordable housing as well as the creation and retention of living wage jobs across the Midwest,” Legacy Bank President Brett Magers said in the release.
The funding for Legacy Bank is part of more than $8.7 billion in investments through the ECIP announced this week. Legacy Bank is designated as a Community Development Financial Institution, meaning it has received Treasury funds since 2016. During that time period, Legacy Bank's CDFI activities have resulted in more than $307 million going to 1,166 businesses, and 86% of that funding went specifically to disadvantaged businesses and communities.
ECIP provides long-term, low-cost equity for low- and middle-income communities.
“The addition of $81.7 million in capital more than doubles our current capital levels and will allow us to expand our services across a wider path of underserved areas that are currently difficult for us to reach due to capital restraints," said Brandon Taylor, Legacy Bank's chief financial officer, in the release.
The ECIP investment in Ozarks Heritage Financial Group is expected to close in the first quarter of 2022.
The Treasury Department announcement indicates funding also was earmarked for Stark Bancshares Inc., the holding company of LimeBank in Bolivar.
The expanded facility is expected to reach annual revenue of $650M.