PNC announces $ 88 billion community benefits plan
The plan will take effect on January 1, 2022, after PNC finalizes its agreement with BBVA USA Bancshares, Inc., and will be executed over a period of four years.
CLEVELAND – The PNC Financial Services Group, Inc. has unveiled a community benefits plan to provide $ 88 billion in support to underserved people with low and moderate income (LMI).
PNC will provide loans, investments and other financial support to strengthen economic opportunities for these individuals, people and communities of color, as well as other neglected individuals and communities over a period of four years, starting January 1. 2022.
“As a Main Street bank, we believe our success will be commensurate with the prosperity we help create for our stakeholders,” said William S. Demchak, President and CEO of PNC.
Loans to be included will include residential mortgages and home equity, small business loans and community development. PNC also plans to increase its charitable donations.
More specifically, during the plan period, PNC plans to:
- Origin at least $ 47 billion in residential and home equity mortgages to LMI and minority borrowers and in LMI and majority minority census tracts.
- Origin at least $ 26.5 billion loans to small businesses in LMI communities, majority minority census tracts, businesses with revenues of less than $ 1 million, and small farms.
- Provide at least $ 14.5 billion in community development loans and investments in all markets, including at least $ 400 million for community development finance institutions (CDFIs) that help meet the banking and financial service needs of traditionally underserved communities.
- Increase at least $ 500 million PNC charitable giving, including sponsorship and philanthropic grants. This includes the continuation of BBVA USA’s existing multi-year grant and charitable sponsorship commitments with nonprofit organizations, and a commitment to maintain or increase the current levels of philanthropic support provided to community groups in Birmingham in recognition of the history of the city as a seat. city of BBVA USA and its predecessor bank.
The “ plan, ” as PNC calls it, was developed in connection with the planned regulatory approval and closing of PNC’s ongoing acquisition of BBVA USA Bancshares, Inc., including its banking subsidiary. American, BBVA USA, which is one of the countries 25 largest commercial banks, according to ConsumerAffairs.com.
“ The plan incorporates, builds on and expands on the commitments and plans previously announced by PNC and BBVA USA to help meet community needs, advance economic empowerment and address systemic racism, ” said PNC representatives in a press release.
Nate Coffman, executive director of the Columbus-based Ohio Association of Community Development Societies (CDC), applauded PNC’s plan.
“The $ 88 billion plan holds tremendous promise for fueling opportunities in communities that need it most,” Coffman said. “The community benefits plan that sets a precedent with the NRC is recognition of the critical importance that financial institutions can and must act to address the income inequalities and racial inequalities ingrained across our country.”
Nathan Minerd, executive director of the NeighbourWorks Collaborative of Ohio, shared a similar sentiment.
“With this plan, PNC has proven that it is focused on the needs of the communities it is a part of,” Minerd said. “We applaud PNC’s commitment to working together to make our communities stronger.”