Fifth third exceeds five-year community engagement, secures $ 41.6 billion in support against $ 32 billion target
Fifth Third Bank, National Association, today announces that it has exceeded the five-year community engagement financial target it made in 2016. Fifth Third has provided $ 41.6 billion in loans and investments, or 130% of the $ 32 billion * goal announced with the National Community Reinvestment Coalition, as well as more than 145 community signatories through its footprint.
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The fifth-third exceeds five-year community engagement and gets $ 41.6 billion in support against a target of $ 32 billion. (Graphic: Business Wire)
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 consultation with hundreds of community groups and the NRC. In 2018, the Bank further increased its commitment to $ 32 billion, given its planned expansion in Chicago through its acquisition of MB Financial, Inc. The $ 32 billion commitment included mortgages, loans small business; and community development loans and investments.
The Bank also disbursed $ 378 million as part of the Fifth Third Impact programming, exceeding its commitment to provide $ 213.2 million in additional technical assistance for housing and 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.
Fifth Third President and CEO Greg D. Carmichael said, “We thank the NCRC and the communities we serve for partnering to help the Bank develop community engagement five years ago that would have a lasting impact. Their collaboration and valuable ideas on behalf of their communities have guided us to craft a better plan. Building on the experiences of the past five years – including addressing the effects of the pandemic and racial inequalities last year – we will move forward with confidence as we determine to do the right thing. “
“The community benefits agreement we entered into 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 moderate-income communities and communities of color have access to the banking services they need to build wealth. “
Executive Vice President Kala Gibson, Head of Corporate Responsibility and Head of Corporate Banking, said, “I salute our community partners as well as the Bank employees whose hard work over the past five years has makes all the difference. This community engagement marks a It has helped inform major new initiatives such as the $ 2.8 billion Racial Equality, Equity and Inclusion Acceleration Initiative announced in 2020 and launched a new model of community support with our first neighborhood adoption in Detroit in 2019. “
The results of community engagement included:
Mortgage loans: 16.2 billion
Fifth Third has issued $ 16.2 billion in mortgages since 2016, exceeding the target of $ 11.2 billion. As part of the commitment, the Bank has made a special effort to address the lack of affordable housing in communities of its footprint and has 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 national and local programs. Since the inception of the program, Fifth Third has provided more than $ 14.9 million in DPA assistance. **
Small business: $ 12.7 billion
The Bank provided $ 12.7 billion in small business loans under the Commitment, exceeding the target of $ 11.1 billion *. In addition to loans and lines of credit, the Bank provided capital and technical assistance to small businesses, especially those belonging to 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, which was 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 forms of technical assistance. thanks to the support of Accion, a global not-for-profit organization.
Community development loans and investments: $ 11.5 billion
Fifth Third has funded $ 11.5 billion in loans and investments for community development 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 construction for veterans, the disabled and the homeless in Chicago. Hope Manor’s investment was part of a recently announced $ 100 million in projects that CDC will invest through Opportunity Zone partners.
Initiatives and programming of the fifth third impact: $ 378 million
Fifth Third has disbursed $ 112.9 million in community engagement grants since 2016 against 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 other areas. In response to the COVID-19 pandemic, Fifth Third has provided $ 8.75 million in relief, recovery and resilience grants across its footprint.
The Bank has also made efforts to support communities through specific programs and initiatives led by the fifth tier. 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 renovated Young Bankers Club. The Bank’s eBus carries 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 ESG 2020 report is due to be published later this year on the 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 under the Fifth Third brand in Ohio, Kentucky, Indiana, Michigan, United States of America. ‘Illinois, Florida, Tennessee, West Virginia, Georgia, North Carolina and South Carolina. In total, Fifth Third provides its customers with access to approximately 52,000 free ATMs across the United States. Fifth Third operates four main businesses: Commercial Banking, Branch Banking, Consumer Lending, and Wealth & Asset Management. Fifth Third is among the largest fund managers in the Midwest and, as of December 31, 2020, had $ 434 billion in assets under watch, including $ 54 billion for individuals, businesses and nonprofits by the 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”. The Fifth Third Bank was established in 1858. Deposit and credit products are offered by the 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 extended to $ 32 billion in 2018. ** The impact programming objectives of $ 213.2 million ‘add to the final $ 32 billion in loan and investment commitment.
** Loan subject to credit review and approval. To be eligible for down payment assistance of 3% of the home purchase price, up to $ 7,500, the property must be in one of the following qualifying states: MI, IN, IL, KY, TN, OH, WV, NC, GA, FL and located in a low income census tract or borrower must meet the low income cutoff based on eligible income per 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.
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Stacie Haas (Media Relations)
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Chris Doll (Investor Relations)
Christophe.Poupé[email protected] | 513-534-2345