A pair of banks has formed charitable foundations before the end of 2021.
Mercantile Bank in Grand Rapids, Mich., said in a press release Thursday that it had created the Mercantile Bank Foundation to fund and administer its charitable giving activities. The bank made a $4 million initial capital contribution that will be recorded as noninterest expense in the fourth quarter.
More contributions are expected in future periods, depending on the bank’s operating performance, financial condition and other considerations.
The $4.9 billion-asset Mercantile has donated more than $1.6 million over the past two years to support nonprofit organizations. The foundation is extpected to make all of the bank’s 501(c)(3) donations in the future.
First United in Oakland, Md., recently disclosed that its bank had created the First United Dreams Foundation to fund support charitable organizations and engage in other charitable activities, including making grants.
The foundation plans to seek tax-exempt status as a 501(c)(3) organization.
The $1.7 billion-asset company made a $1 million charitable donation to the foundation, funded by using a portion of $1.4 million of insurance proceeds received in December from its prior directors and officers liability insurer.