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PNC Financial Services Group’s planned acquisition of an Alabama-based bank will bring additional community investments to all 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 bolster economic opportunity for low- and moderate-income (LMI) individuals and communities, people and communities of color, and other underserved individuals and communities. The initiative will last four years and begin Jan. 1, 2022.
The bank said the plan was developed as part of the anticipated regulatory approval and closing of PNC’s acquisition of BBVA USA Bancshares Inc. and its U.S. banking subsidiary, BBVA USA. Through the initiative, PNC will invest in areas currently served by PNC and new geographies it will enter through the BBVA USA acquisition.
“The plan incorporates, builds on and expands the pledges 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 expects during the four years to:
- Originate at least $47 billion in residential mortgage and home equity loans to LMI and minority borrowers and in LMI and majority-minority census tracts.
- Originate at least $26.5 billion in loans to small businesses in LMI communities, majority-minority census tracts, businesses with less than $1 million in revenue and small farms.
- Provide at least $14.5 billion in community development loans and investments across all markets, including at least $400 million for Community Development Financial Institutions (CDFIs) that help meet the banking and financial service needs of traditionally underserved communities.
- Increase to at least $500 million PNC’s charitable giving, including sponsorships and philanthropic grants.
“As a Main Street bank, we believe that our success will be proportional to the prosperity we help create for our stakeholders,” PNC Chairman, President and CEO William S. Demchak said in the statement. “This plan reflects that belief and builds on our longstanding commitment to provide economic opportunity for all individuals and communities we serve, as reflected in PNC Bank’s and BBVA USA’s overall ‘Outstanding’ Community Reinvestment Act (CRA) ratings in each of our organizations’ most 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 more than 150 NCRC member organizations in the combined PNC and BBVA USA footprint. Other groups involved in listening sessions with PNC included the National Diversity Coalition, the Greenlining Coalition, the California Reinvestment Coalition, Faith and Community Empowerment, and members of their respective organizations.
“We appreciate the leadership and commitment of PNC Bank to collaborate with us and our members to develop the largest-to-date community benefits plan,” NCRC CEO Jesse Van Tol said in the statement. “This plan is a significant commitment by one of the largest banks in the nation to increase investments, services and loans for low- and moderate-income communities and neighborhoods of color. It’s rewarding and makes me hopeful when institutions and communities can come together like this to make a meaningful commitment that’s intended to have a lasting impact on lives, families and neighborhoods.”
PNC’s regional presidents, including Jon Bernstein in Greater Boston, and the bank’s community development banking teams will work with local communities to identify community development initiatives.
PNC recently hired Spencer Guillomaitre as the community development relationship manager for Greater Boston. Guillomaitre has more than 10 years of experience in the banking industry, including as a sales manager at JPMorgan Chase and business relationship manager at HSBC.
A community advisory council will meet semi-annually to discuss the bank’s progress toward the goals and objectives of the plan, PNC said, as well as emerging areas of community need.
Other recent initiatives to assist 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.
