Diversified financial services company PNC Financial Services Group announced today the launch of the Community Benefits Plan, a four-year initiative aimed at providing economic opportunity support for minorities and low- and moderate-income (LMI) individuals and communities.
Under the new initiative, beginning January 2022, PNC aims to provide $88 billion in loans, investments, and other financial support to bolster economic opportunity for LMI individuals and communities, people and communities of color, and other underserved individuals and communities.
The plan includes the origination of at least $47 billion in residential mortgage and home equity loans to LMI and minority borrowers and in LMI and majority-minority census tracts, 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, and 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.
Additionally, PNC will increase charitable giving to at least $500 million, including sponsorships and philanthropic grants.
The new plan covers geographies currently served by PNC, as well as the new geographies PNC reach through its anticipated acquisition of BBVA USA.
According to PNC, the company will add 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, aiming to better meet the needs of the unbanked and underbanked.
PNC Chairman, President and CEO William S. Demchak said:
“As a Main Street bank, we believe that our success will be proportional to the prosperity we help create for our stakeholders. 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 stated that its Regional President and Community Development Banking teams will serve as key points of engagement in their local communities for identifying impactful local community development initiatives and acting as liaisons with local organizations. The company also plans to expand the reach of its innovative banking products and initiatives designed to meet the needs of LMI individuals, underserved communities and the elderly.
Richard Bynum, Chief Corporate Responsibility Officer for PNC, said:
“PNC is committed to continuing to reduce barriers to banking, increasing access to financial services and capital, and implementing financial solutions that position LMI and minority-owned businesses for effective growth, development, and sustainability.”
Additional initiatives under the Community Benefits Plan include the creation of a Community Advisory Council to monitor the bank’s progress toward the goals and objectives of the plan, as well as emerging areas of community need, and pledges to increase recruiting from historically Black colleges and universities while also exploring opportunities to increase its recruitment from higher education institutions primarily serving Latinx students.