PNC Financial Services Group’s planned acquisition of an Alabama-based bank will bring additional community investment to all of PNC’s markets, including Greater Boston.
PNC this week announced a new community benefits plan that will provide $ 88 billion in loans, investments and other financial support to strengthen economic opportunities for low- and middle-income (LMI) people and communities, individuals and communities. communities of color and other underserved people and communities. The initiative will run for four years and start on January 1, 2022.
The bank said the plan was developed as part of the planned regulatory approval and closing of PNC’s acquisition of BBVA USA Bancshares Inc. and its US banking subsidiary, BBVA USA. Through this initiative, PNC will invest in the areas currently served by PNC and in new geographic areas into which it will penetrate through the acquisition of BBVA USA.
“The plan incorporates, builds on and expands on commitments and plans previously announced by PNC and BBVA USA to help meet community needs, advance economic empowerment and address systemic racism,” PNC said in a statement.
PNC hopes over the four years:
- Produce at least $ 47 billion in residential and home equity mortgages to LMI and minority borrowers and in LMI and majority minority census tracts
- Provide at least $ 26.5 billion in 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 Financial Institutions (CDFIs) that help meet banking and financial service needs traditionally underserved communities.
- Increase PNC charitable giving to at least $ 500 million, including sponsorships and philanthropic grants.
“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. “This plan reflects that belief and builds on our long-standing commitment to providing economic opportunity for all the individuals and communities we serve, as evidenced by PNC Bank’s global ‘Outstanding’ Community Reinvestment Act (CRA) ratings and BBVA USA in each of our organizations. recent evaluations. “
PNC developed its community benefits plan with BBVA USA, and the process included community listening sessions with the National Community Reinvestment Coalition and representatives from over 150 NCRC member organizations in the combined footprint of PNC and BBVA USA. . Other groups involved in listening sessions with PNC included the National Diversity Coalition, Greenlining Coalition, California Reinvestment Coalition, Faith and Community Empowerment and members of their respective organizations.
“We appreciate the leadership and commitment of PNC Bank to work with us and our members to develop the largest community benefits plan to date,” said Jesse Van Tol, CEO of NCRC. “This plan is an important commitment by one of the country’s largest banks to increase investments, services and loans for low- and middle-income communities and neighborhoods of color. It is gratifying and gives me hope when institutions and communities can come together like this to make a meaningful commitment that aims to have a lasting impact on lives, families and neighborhoods.
PNC regional presidents, including Jon Bernstein in Greater Boston, and the bank’s community development bank teams will work with local communities to identify community development initiatives.
PNC recently hired Spencer Guillomaitre as the Community Development Relations Manager for Greater Boston. Guillomaitre has over 10 years of experience in the banking industry, including as Sales Director at JPMorgan Chase and Business Relations Manager at HSBC.
A community advisory board will meet twice a year to discuss the bank’s progress towards the goals and objectives of the plan, PNC said, as well as the new needs of the community.
Other recent initiatives to help LMI consumers include a new product that helps customers avoid overdraft fees and plans to make its Bank On certified products available in more markets, including Greater Boston.