Fulton Financial Corp. is asking state regulators for permission to buy a nearly 20 percent stake in a bank that serves predominantly minority communities in Philadelphia.
Lancaster-based Fulton is making the investment as part of its Fulton Forward program, the moniker given to the bank’s community development initiatives.
Pending regulatory approval, Fulton is seeking to buy up to 19.99 percent of the preferred stock in United Bancshares Inc., the parent of United Bank of Philadelphia. Designated as a community development financial institution, United has three branches in Philadelphia.
“We are doing this because of United’s deep involvement in the advancement of minority neighborhoods and minority-owned businesses in Philadelphia,” said Fulton spokeswoman Laura Wakeley.
Fulton’s capital investment, Wakeley added, will enhance United’s ability to serve minority communities and neighborhoods through its commercial banking business, which is focused on groups that have been traditionally underserved, including African-Americans, Hispanics and women.
Wakeley declined to put a dollar figure on the investment in advance of regulatory approval. The bank is seeking approval from the Pennsylvania Department of Banking.
Fulton Financial is the parent company of Fulton Bank, Fulton Financial Advisors and other subsidiaries in Pennsylvania, Delaware, Maryland, New Jersey and Virginia. It has assets of $18.9 billion.