PNC Bank is committing to a four-year, $88 billion Community Benefits Plan that will aim to expand economic opportunities for minorities and low- and moderate-income individuals and communities.
The PNC Financial Services Group (NYSE: PNC) on Tuesday said that the new plan will allocate $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 over a four-year period beginning Jan. 1.
PNC said it is too early to disclose how much of the funding will be allocated in the Michigan market but hopes to provide those specifics at a future date.
The plan — developed in connection with the anticipated regulatory approval and closing of PNC’s pending acquisition of BBVA USA Bancshares, including its U.S. banking subsidiary, BBVA USA, based in Houston — covers the geographies currently served by PNC, including Michigan, and the new geographies PNC will expand into through the BBVA USA acquisition, including Texas, Alabama, Arizona, California, Florida, Colorado and New Mexico.
The plan incorporates and expands on pledges and plans previously announced by PNC and BBVA USA to help meet community needs, advance economic empowerment and address systemic racism.
During the plan period, PNC expects 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,” said Bill Demchak, PNC chair, president and CEO. “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 ratings in each of our organizations’ most recent evaluations.”
PNC’s Community Benefits Plan was developed by PNC, in consultation with BBVA USA, and was informed by numerous community listening sessions that PNC held with the National Community Reinvestment Coalition (NCRC) that included representatives from more than 150 NCRC member organizations from across the combined PNC and BBVA USA footprint. PNC also held listening sessions with 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. “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 and community development banking teams help identify local community development initiatives and act as liaisons with local organizations. PNC will extend this model to the new markets it enters through its pending acquisition of BBVA USA.
The Community Benefits Plan builds on PNC’s commitment to providing economic opportunity for all individuals and communities, including LMI and minority individuals and communities, as well as women, veterans and LGBTQ+ individuals and businesses. In addition, the plan reflects PNC’s commitment to addressing systemic racism, promoting social justice and advancing diversity and inclusion, not just within PNC, but within the broader financial system and its communities.
In 2020, the PNC board formed a special committee on equity and inclusion to provide oversight of these issues. The board’s special committee will oversee PNC’s execution of the plan.
PNC’s plan to better meet the needs of the unbanked and underbanked includes the addition of 20 new branches and 25 remote automated teller machines in LMI communities across PNC’s expanded footprint, and 10 mobile banking units primarily dedicated to servicing LMI communities. PNC also expects to increase its spending with diverse suppliers by at least 20% over the plan period.
Under the Community Benefits Plan, PNC also will create a community advisory council that will meet semiannually to discuss the bank’s progress toward the goals and objectives of the plan, as well as emerging areas of community need. In addition, PNC will host an annual Community Leadership Symposium for members of the council, key representatives of its member organizations and other invited guests to discuss broader developments affecting community development needs and how financial institutions such as PNC can best help to meet those needs.
Finally, under the plan, PNC will increase recruiting from historically Black colleges and universities while also exploring opportunities to increase its recruitment from higher education institutions primarily serving Latinx students.