U.S. Bancorp Announces $100 Billion Community Benefits Plan
09 Maio 2022 - 10:30AM
Business Wire
Five-year plan focuses on supporting
equitable access to capital for low- and moderate- income
communities and communities of color.
U.S. Bancorp (NYSE: USB) today
announced a five-year community benefits plan (CBP), developed in
coordination with the National Community Reinvestment Coalition
(NCRC) and the California Reinvestment Coalition (CRC), as part of
the planned acquisition of MUFG Union Bank. The CBP continues and
expands the important work underway by both organizations to build
and support equitable access to capital for the communities we
serve.
The CBP builds on U.S. Bank’s previously announced U.S. Bank
Access Commitment efforts and integrates existing community impact
efforts from MUFG Union Bank. A majority of the commitments, 60% of
the total, will support efforts in California, the state most
impacted by the acquisition. Commitments in the CBP are subject to
the successful completion of full systems and staffing conversions
to a unified bank platform.
“Banks are the economic engines of our communities. As such, we
can make meaningful and significant impacts in supporting the
ability of low- and moderate-income (LMI) communities and
communities of color to access capital and build wealth,” said
Andy Cecere, Chairman, President and CEO, U.S. Bank. “Our
CBP is outcome-focused and blends the best programs and thinking of
U.S. Bank and MUFG Union Bank. We want our actions today to create
a ripple effect that will lift future generations.”
The CBP was informed by multiple listening sessions with more
than 200 community groups participating as well as a public hearing
organized by regulators. Listening sessions were organized with the
support of NCRC, CRC and the Alliance to End the Racial Wealth Gap.
The plan focuses on foundational components of community and
economic development where the company can have the most
impact:
- Access to Homeownership
- Small Business Access to Capital & Technical
Assistance
- Community Development Lending & Investment
- Philanthropy & Community Service
- Branch Services in California
- Environmental Stewardship & Commitment
- Advancing a Diverse & Equitable Workforce
- Diverse Segment Outreach
- Supplier Diversity
- Plan Implementation & Accountability
“We are grateful for the time 208 organizations took to
participate in the listening sessions. Their insights and
perspective were critical to helping us understand where we can
improve financial outcomes for underserved communities through our
products, investments and service to the community,” said Cecere.
“We look forward to working with community leaders to implement
equitable and effective solutions for the communities that need it
most.”
The collective input from the community serves as the foundation
for U.S. Bank’s community commitment, one of the most significant
national and state commitments made by a bank in recent years. The
community benefit plan totals at least $100 billion and the
public-facing community strategy includes commitments to:
- Providing at least a 20% increase in mortgage lending units
nationally and a 30% increase in California to LMI borrowers, LMI
communities and communities of color over five years.
- Increasing lending to small businesses and small farms by 15%
nationally and 25% in California.
- Lending and investing increases of over 40% nationally and over
50% in California in community and economic development, affordable
housing, environmental and social impact lending and investments
during the five-year period with a focus on racial equity and
access to credit for organizations and developers of color.
Additionally, U.S. Bank commits to developing three Special
Purpose Credit Programs (SPCP) with a substantial focus on
California as follows:
- Small Business – Adopting, enhancing and expanding MUFG
Union Bank’s SPCP, known as the Business Diversity Lending
Program.
- Mortgage – Developing a mortgage SPCP in consultation
with regulators and community groups, which will include down
payment assistance for participating borrowers.
- Affordable Housing Development– Providing access to
lending capital for minority-led/owned developers in support of
affordable housing projects.
“We appreciate the commitment from U.S. Bank and the personal
leadership of Andy Cecere to collaborate with us, CRC and our
members to develop the largest ever community benefits plan,” said
Jesse Van Tol, President and CEO of NCRC. “This plan is a
milestone not only because of its overall size but also because of
the scale of increases committed for mortgage and small business
lending, affordable housing, environmental and social impact
lending, and for the plan’s clear focus on racial equity and access
to credit directed specifically to communities of color.”
“Union Bank and U.S. Bank have been longstanding leaders in
serving the community,” said Reba Dominski, Executive Vice
President and Chief Social Responsibility Officer for U.S.
Bank. “We look forward to engaging with the community as we
continue this work to ensure the combined organization will have
even greater social and environmental impact.”
Notably, branches will continue to play an important role in
U.S. Bank’s strategy and efforts to serve the community. The bank
is taking a forward-looking approach to managing branches along
with local community leaders to ensure the highest level of service
is maintained. Additionally, the bank is committing to:
- Opening five new branches in LMI or middle-income Majority
Minority (MMT) communities in California over five years.
- Opening or preserving five additional branches in LMI or MMT
communities in California over five years decisioned with input
from CRC.
- Upgrading functionality and accessibility of MUFG Union Bank
and legacy U.S. Bank ATM’s that will also service MUFG Union Bank
customers.
- Partnering with California community groups to create five
residencies located in nonprofits to provide access to a
knowledgeable banker to help with small business lending and
helping individuals improve their credit scores, savings and
financial confidence.
- Adopting MUFG Union Bank’s high school and community college
branch program and investing further to support financial education
outreach.
Prior to reaching a decision on closing any branch in an LMI
area, the bank will analyze the demographics of the neighborhood,
consider community input and consider alternatives to closure as
well as alternative delivery options to minimize the impact of the
closure.
“We know that when we organize, we win. This agreement
represents months of hard work and is a win for LMI neighborhoods
in California and Black, Indigenous, and People of Color
communities,” said Paulina Gonzalez-Brito, Executive Director of
the California Reinvestment Coalition. “While there is still
much work ahead, and a continued need to hold banks accountable, we
celebrate these communities today as well as our members who were
critical in discussions with the bank.”
Following the close of the transaction, U.S. Bank is committed
to retaining all MUFG Union Bank and U.S. Bank front-line branch
employees in California, Washington and Oregon. These bankers are
frequently the first people customers and prospective customers
speak to at our branches. MUFG Union Bank employees have
demonstrated a tremendous ability to serve their customers and U.S.
Bank looks forward to having them join the combined bank’s team of
talented West Coast employees.
About U.S. Bank
U.S. Bancorp, with approximately 70,000 employees and $587
billion in assets as of March 31, 2022, is the parent company of
U.S. Bank National Association. The Minneapolis-based company
serves millions of customers locally, nationally and globally
through a diversified mix of businesses: Consumer and Business
Banking; Payment Services; Corporate & Commercial Banking; and
Wealth Management and Investment Services. The company has been
recognized for its approach to digital innovation, social
responsibility, and customer service, including being named one of
the 2022 World’s Most Ethical Companies and Fortune’s most admired
superregional bank. Learn more at usbank.com/about.
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version on businesswire.com: https://www.businesswire.com/news/home/20220509005194/en/
Investor contact: Jennifer Thompson, U.S. Bancorp Investor
Relations jen.thompson@usbank.com, 612.303.0778, @usbank_news
Media contact: Jeff Shelman, U.S. Bancorp Public Affairs and
Communications jeffrey.shelman@usbank.com, 612.303.9933,
@usbank_news
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