Fifth-third exceeds five-year community engagement, reaches $ 41.6 billion in support against a target of $ 32 billion

Posted 04-02-21

Proposed by Fifth third Bancorp

CINCINNATI, April 2, 2021 / CSRwire / – Fifth Third Bank, National Association, today announced that it has exceeded the five-year community engagement financial goal it made in 2016. Fifth Third provided 41.6 billion dollars in loans and investments, 130% of the target of 32 billion dollars * announced with the National Community Reinvestment Coalition, as well as more than 145 community signatories throughout its territory.

Community engagement was announced in early 2016 as a five-year, $ 27.5 billion plan. Later that year, it was increased to $ 30 billion after consulting with hundreds of community groups and the NRC. In 2018, the Bank further increased the commitment to $ 32 billion in consideration of its planned expansion in Chicago through its acquisition of MB Financial, Inc. The $ 32 billion commitment included loans mortgages, small business loans, and community development loans and investments.

The Bank also provided $ 378 million in programming for the Fifth Third Impact, exceeding its commitment to provide $ 213.2 million in additional housing and technical assistance to small businesses; financial empowerment programming; inclusion initiatives and supplier diversity; branches and staff; and other programs and services. As part of our impact programming commitment, Fifth Third provided $ 112.9 million in philanthropy.

The Fifth Third President and CEO, Greg D. Carmichael, said, “We thank NRC and the communities we serve for partnering to help the Bank develop community engagement five years ago that would have lasting impact. Their collaboration and invaluable knowledge on behalf of their communities has guided us in crafting a better plan. Building on the experiences of the past five years – including tackling the effects of the pandemic and racial inequalities of the past year – we will move forward with confidence as we resolve to do good by doing good. . “

“The community benefits agreement we made with Fifth Third Bank in 2016 was one of our first and most important,” said Jesse Van Tol, CEO of NCRC. “We are happy to see it come to fruition over the past five years. We also look forward to continuing our work with Fifth Third to ensure low- and middle-income communities and communities of color have access to the banking services they need to build wealth. “

Executive Vice President Kala Gibson, Chief Corporate Responsibility Officer and Head of Corporate Banking, said, “I salute our community partners and the Bank employees whose hard work over the past five years has made all the difference. the difference. This community engagement marks an important turning point in how we approach community support and outreach. It has helped inform major new initiatives such as the $ 2.8 billion Accelerating Racial Equality, Equity and Inclusion initiative announced in 2020 and launched a new model of community support with our first adoption. by neighborhood in Detroit in 2019. “

The results of community engagement included:

Mortgages: $ 16.2 billion

Fifth Third has issued $ 16.2 billion in mortgages since 2016, exceeding the target of $ 11.2 billion. As part of this commitment, the Bank worked specifically to address the lack of affordable housing in communities of its footprint and created a new down payment assistance program. There are now over 4,500 new homeowners thanks to the program, which offers 3% of the purchase price, up to $ 7,500, for the purchase of a property in a low income census tract or for borrowers who meet certain income requirements. DPA can also be combined with other state and local programs. Since the program began, Fifth Third has provided more than $ 14.9 million in assistance to the DPA. **

Small business: $ 12.7 billion

The Bank provided $ 12.7 billion in small business loans as part of the commitment, exceeding the target of $ 11.1 billion *. In addition to loans and lines of credit, the Bank has provided capital and technical assistance to small businesses, especially those owned by minorities and women. The Fifth Third Foundation has awarded grants to more than 50 black female entrepreneurs and the businesses they support in Atlanta, Charlotte, Cincinnati, Detroit, Louisville, Nashville and Orlando as part of its new Innovation Meets Main Street program of 1, $ 2 million. The Bank has also helped hundreds of small business owners of color with its combined $ 5.5 million investment in Entrepreneurs of Color Funds in Chicago and Detroit. Fifth Third also partnered with Community Reinvestment Fund USA to create the Capital to Build Capacity program, designed to improve and increase lending opportunities for small business owners and resource providers. Over the past five years, the Fifth Third Foundation and Fifth Third Bank have provided more than 1,000 underserved entrepreneurs with access to more than $ 13 million in capital and other technical assistance through the support of ‘Accion, a global non-profit organization.

Loans and investments for community development: $ 11.5 billion

Fifth Third has funded $ 11.5 billion in community development loans and investments since 2016, including $ 1.1 billion in affordable loans and revitalization projects through Fifth Third Community Development Corp., against a target of $ 9.6 billion. Fifth Third helped transform the Detroit neighborhood of Gratiot / 7 Mile, known as the G7, with a $ 5 million investment in parks, streetscapes, commercial corridors, single-family housing and affordable housing.

The Fifth Third CDC invests in projects that revitalize communities, create affordable housing and restore historic buildings, including Hope Manor, the new 36 affordable housing development for veterans, the disabled and the homeless in Chicago. The Hope Manor investment was part of a recently announced $ 100 million project that CDC will invest through Opportunity Zone partners.

Initiatives and programming of the fifth third impact: $ 378 million

Fifth Third has provided $ 112.9 million in community engagement grants since 2016, up from a goal of $ 99.1 million. The grants have supported all aspects of community development including affordable housing, workforce development, neighborhood stabilization and support for small businesses as well as in other areas. In response to the COVID-19 pandemic, Fifth Third has provided $ 8.75 million in relief, recovery and resilience grants across its territory.

The Bank has also worked to support communities through specific programs and initiatives led by Fifth Third. Over 2.6 million people of all ages have been educated through Fifth Third’s financial empowerment programs, including Fifth third academy of finance and the newly revamped Young Bankers Club. The Bank’s eBus brings financial services and education directly to communities. Over the past five years, eBus has served more than 78,000 participants in financial education and workforce development events. Fifth Third also continued to work with NextJob to provide essential job training and mentoring to unemployed and underemployed community members. Fifth Third’s supplier diversity spend increased from $ 18.4 million in 2016 to $ 75.4 million in 2020.

All of these efforts are carried out in collaboration with community partners and shared with the Bank’s National Community Consultative Forum and five CAF regional groups that include national, regional and local community leaders. More information on the 2016-2020 Community Engagement is available in the ESG Report 2019. The Bank’s 2020 ESG report is expected to be published later this year on ESG website.

About the fifth third

Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio, and the indirect parent company of Fifth Third Bank, National Association, a federally chartered institution. As of December 31, 2020, Fifth Third had $ 205 billion in assets and operated 1,134 full-service banking centers and 2,397 ATMs with the Fifth Third brand in Ohio, Kentucky, Indiana, Michigan, Illinois , Florida, Tennessee, West Virginia, Georgia, North Carolina and South Carolina. In total, Fifth Third provides its customers with access to approximately 52,000 toll-free ATMs across the United States. Fifth Third operates four main businesses: commercial banking, branch banking, consumer lending, and wealth and asset management. Fifth Third is one of the largest fund managers in the Midwest and, as of December 31, 2020, had $ 434 billion in assets under management, including $ 54 billion for individuals, businesses and nonprofits. through its Trust and Registered Investment Advisory Firms. Investor information and press releases can be found at www.53.com. The common shares of Fifth Third are traded on the Nasdaq® Global Select Market under the symbol “FITB”. Fifth Third Bank was established in 1858. Deposit and credit products are offered by Fifth Third Bank, National Association. FDIC member.

* The results of community engagement as of December 31, 2020 are indexed to the objectives set when the engagement was increased to $ 32 billion in 2018. ** Impact programming objectives of $ 213.2 million ‘add to final loans and investments of $ 32 billion. commitment.

** Loan subject to credit review and approval. To be eligible for down payment assistance of 3% of the purchase price of the home, up to $ 7,500, the property must be in one of the following eligible states: MI, IN, IL, KY , TN, OH, WV, NC, GA, FL and either located in a low income census tract or the borrower must meet the low income cut-off based on the qualifying income on the FFEIC website. The down payment assistance may be taxable as income and reported to the IRS. Consult your tax advisor. Not available with all loan products.

Fifth third Bancorp logo

Fifth third Bancorp


Source link

About Johanna Gooding

Johanna Gooding

Check Also

Michigan State Men’s Basketball to be ‘Featured by Rocket Mortgage’

Michigan State University entered into a sponsorship deal with Detroit-based Rocket Mortgage last week and …

Leave a Reply

Your email address will not be published. Required fields are marked *