Banks are held accountable for helping the communities where they conduct business under the Community Reinvestment Act across America, and a current 5-year Community Commitment from Fifth Third Bancorp is running ahead of schedule and could top that commitment soon. That’s the latest from a new update released today by the holding company that provides service to thousands of customers across Michigan’s Great Southwest through its system of Fifth Third Bank branches in the area.
Fifth Third announced this morning their continued strong progress against the five-year Community Commitment. As of December 31, 2018, the Bank had delivered $20.3-billion under the plan, which is 68-percent of the total commitment and puts Fifth Third on pace to deliver the Commitment ahead of its scheduled completion in 2020.
The Community Commitment was first announced in 2016 as a $27.5-billion plan over five years. Later that year, it was increased to $30-billion upon consultation with more than 200 community groups and the National Community Reinvestment Coalition (NCRC). In 2018, the Bank expanded the commitment to $32-billion in consideration of its planned expansion in Chicago as a result of the merger with MB Financial, which closed March 22, 2019.
Fifth Third says that the $20.3-billion delivered under the Commitment has directly benefited the communities they serve through:
- Mortgage lending, especially in low- and moderate-income (LMI) communities
- Small business lending and investments
- Community development loans and investments.
It also has supported Fifth Third Impact initiatives, including philanthropy, housing and small business-related investments, financial empowerment programming, branches and staffing, and inclusion and supplier diversity.
Greg Carmichael is Chairman, President & CEO at Fifth Third. He says, “It’s important for us to report our annual progress under the Commitment to the communities we serve.” He notes, “Not only does it hold us accountable to the promises we’ve made, but it also gives us the opportunity to share how our collaboration with community organizations and partners is having a real impact in people’s lives. We are pleased with our delivery of $20.3 billion in community support over the last three years, and look forward to continuing our progress.”
Mortgage: $8 Billion
Fifth Third has delivered $8 billion in mortgage lending since 2016, an impact partly due to the success of the bank’s down payment assistance program, which provides up to $3,600 in down payment funding to LMI borrowers, or to potential homeowners making a purchase in a LMI census tract. That program has helped over 1,800 homeowners achieve the American dream since 2017. One such homeowner was Ken White, a married father of four in eastern Michigan, who had always dreamed of having a home with a backyard for his family. But he struggled to save for a down payment. The DPA program helped White purchase a home in 2018.
Small Business: $5.6 Billion
The bank has delivered $5.6 billion in small business lending under the Commitment. The bank is a U.S. Small Business Administration preferred lender. Those loans make a distinct impact in the community, as an SBA loan funded in Chicago last year led to the opening of Lake Immediate Care and Clinic. The clinic is a medical practice that is both a primary and urgent care. The community, which didn’t have a primary care services provider at the time, today serves 8,000 people.
The Bank also provides capital and technical assistance to small businesses, especially those that are minority- and women-owned and which often face a funding gap when trying to expand. Fifth Third has invested millions of dollars in Entrepreneur of Color funds designed to address that gap in Chicago and Detroit, and provided the initial startup funding of $1.2-million for a new $3-million Cincinnati Access Fund. In addition, Fifth Third underwrote the technical services and made referrals to the fund.
Community Development Lending & Investments (CDLI): $6.6 Billion
Fifth Third has funded $6.6 billion in community development lending and investments since 2016, including $611.4 million in affordable lending and revitalization projects through the Fifth Third Community Development Corporation (CDC). They financed a major project in Illinois to improve and sustain neighborhood life in a Chicago LMI community through grocery retail centers, medical office buildings and education facilities. Fifth Third provided financing for the Woodlawn Jewel Foods and Osco Pharmacy Grocery Store. Additionally, the Bank supported OhioGuidestone in Cleveland with a community development loan, investments and volunteer service. OhioGuidestone delivers its Bridges Out of Poverty and YouthBuild programs to expose LMI students to experiences and lifestyles away from poverty.
The Fifth Third CDC invests in projects that revitalize communities, create affordable housing and restore historic buildings. In 2018, the CDC invested $246-million across the bank’s footprint, including five investments representing $56.3-million in Cincinnati. The CDC also announced a $5-million investment in the Cincinnati Development Fund to further housing redevelopment in under-served neighborhoods, such as the renovation of the Sanctuary at St. Michael’s complex in Cincinnati’s Lower Price Hill. The renovations involved five historic structures and more than 46,000 square feet of classroom and event space. The CDC also joined with the Ohio Capital Corporation last year for the grand opening of Abington, Race and Pleasant, a project in which five vacant and blighted buildings were turned into affordable housing and commercial space in an urban, LMI neighborhood.
Fifth Third Impact Initiatives and Programming:
Fifth Third has made $64.5-million in grants since 2016 under the Community Commitment. That includes $3-million in Strengthening Our Communities grants from the Fifth Third Foundation in 2018. The Strengthening Our Communities funding included $1.2-million to help entrepreneurs grow their business and create jobs, helped 2,000 people through neighborhood revitalization projects, 8,500 people with workforce development and financial education services, and 4,870 people with economic development programs like technical assistance and small business micro lending. In addition, it included $700,000 for affordable housing and $1.1-million to deliver community financial empowerment programs.
Programming included Summer of Dreams, a comprehensive 10-week program for K-12 homeless students in Central Florida. Fifth Third invests $45,000 annually to the program, which provides two free meals and snacks each day, weekend food packs, enriching academic activities, field trips, tutoring and mentoring, financial empowerment and a backpack full of school supplies. More than 1,100 students participate each year at 36 sites in Orange, Seminole and Osceola counties, and Fifth Third has supported Summer of Dreams for seven years.
Through its Commitment, the bank forms collaborations with national, regional and local organizations to meet specific community needs and improve lives. In 2018, Fifth Third expanded capacity with community leaders through workforce development and career development programs through the NAACP. It also delivered financial empowerment programs to community members at every age and stage of life, including a new high school program, Fifth Third Finance Academy, and VITA tax preparation services to low-income community members via an Empowerment Mobile, or eBus. Fifth Third’s Supplier Diversity spend was $77.4-million in 2018, a 55-percent increase over 2017. Also in 2018, the Bank partnered with a construction company to sponsor “The Pitch,” a platform for small businesses to compete for contracts, mentoring and monetary prizes.
More about year three of the Community Commitment will be available in the 2018 Corporate Social Responsibility Report, which will be available next month at 53.com
Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio and the indirect parent company of Fifth Third Bank, an Ohio-chartered bank. As of December 31, 2018, Fifth Third had $146-billion in assets and operated 1,121 full-service Banking Centers and 2,419 ATMs with Fifth Third branding in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Georgia and North Carolina.
