SANTA CLARA, Calif. and
BOSTON, May
20, 2021 /PRNewswire/ -- SVB Financial Group ("SVB")
(NASDAQ: SIVB), the parent of Silicon Valley Bank, the bank of the
world's most innovative companies and their investors, today
announced a proposed five-year, $11.2
billion community benefits plan that builds on its
long-standing commitment toward helping small businesses, financing
affordable housing, reinvesting in low- and moderate-income ("LMI")
communities and supporting the greater good through philanthropy
and volunteering. The plan was developed in collaboration with the
California Reinvestment Coalition ("CRC"), The Greenlining
Institute, Massachusetts Affordable Housing Alliance ("MAHA") and
Massachusetts Association of Community Development Corporations
("MACDC"), based on anticipated growth resulting from and subject
to the completion of SVB's pending acquisition of Boston Private
Financial Holdings, Inc. ("Boston Private") (NASDAQ: BPFH), the
parent of Boston Private Bank & Trust Company. The
acquisition was announced in January
2021 and is expected to close in mid-2021, subject to the
satisfaction of customary closing conditions and applicable
regulatory approvals.
Over a five-year period from January
2022 through December 2026,
SVB's $11.2 billion commitment will
focus on providing financial support to LMI communities in
California and Massachusetts:
- $5.0 billion in small business
loans of $1 million or less;
- $4.8 billion in Community
Reinvestment Act ("CRA") community development ("CD") loans and
investments;
- $1.3 billion in residential
mortgages to LMI borrowers and in LMI census tracts; and
- $75 million in charitable
contributions.
As part of its residential mortgage lending commitment, SVB will
expand its participation in the Massachusetts Housing Partnership's
ONE Mortgage and the City of
Boston's ONE+Boston first-time homebuyer mortgage programs.
SVB will also commit to the Massachusetts Housing Partnership
Fund.
In addition, SVB plans to adopt and implement a corporate
supplier diversity program with a goal, by 2026, of contracting at
least eight percent of its corporate supplier spending annually to
locally-based businesses owned or led by members of historically
underserved communities, such as people of color and women. SVB
will also continue its commitment to increase management diversity
within the organization and has signed on to Silicon Valley
Leadership Group's 25x25 program.
"As a leader in the innovation economy, we strive to use our
voice and influence to help shape a better future and contribute to
progress in our communities," said Greg
Becker, President and CEO of SVB Financial Group. "This
proposed community benefits plan aligns with our long-held
commitment to significantly contribute to our communities'
well-being. The growth of our business gives us the ability
to step up more aggressively. We are intent on making a
lasting impact and welcome the support of our community partners in
developing this plan."
SVB's business model serving small and growing businesses, and
its key community development initiative, Access to Innovation, are
aimed at giving entrepreneurs and innovative startups opportunities
to build their businesses, create jobs and give back to their
communities.
As part of the proposed community benefits plan, SVB will also
create a community advisory council and will meet with
representatives from the CRC, The Greenlining Institute, MAHA and
MACDC to review and discuss progress toward the plan's
goals.
Silicon Valley Bank operates under a Strategic Plan to comply
with the Community Reinvestment Act. Upon completion of the pending
acquisition of Boston Private, Silicon Valley Bank plans to amend
its CRA Strategic Plan to include updated goals in California and new assessment areas for the
greater Boston and Los Angeles regions. To receive a copy of
SVB's CRA Strategic Plan, please contact
SVBintheCommunity@svb.com.
"This plan is a culmination of joint efforts by the Greenlining
Institute and CRC, and grows SVB's commitment to meeting the needs
of low- and moderate-income communities and communities of color in
an especially critical time, as many Californian families are
either struggling to find housing or remain housed, and as small
businesses weather the devastating financial impacts brought on by
the COVID-19 pandemic. This is a win for both SVB and our
communities," said Kevin Stein, CRC
Deputy Director.
"For 25 years, Boston Private Bank & Trust has been a
Community Reinvestment Act leader here in Massachusetts," said Symone Crawford, MAHA's Director of
Homeownership Education. "We applaud SVB for making this commitment
to low-to moderate-income communities and households in greater
Boston and bringing new resources
to assist first-time homebuyers, small businesses and nonprofits.
If we are to narrow the racial homeownership gap, we need financial
institutions to do more in programs like ONE Mortgage and
ONE+Boston and SVB is committing to do just that."
About SVB Financial Group
For nearly 40
years, SVB Financial Group (NASDAQ: SIVB) and its
subsidiaries have helped innovative companies and their investors
move bold ideas forward, fast. SVB Financial
Group's businesses, including Silicon Valley Bank, offer
commercial, investment and private banking, asset management,
private wealth management, brokerage and investment services and
funds management services to companies in the technology, life
science and healthcare, private equity and venture capital, and
premium wine industries. Headquartered in Santa Clara,
California, SVB Financial Group operates in centers of
innovation around the world. Learn more at svb.com.
SVB Financial Group is the holding company for all
business units and groups © 2021 SVB Financial Group. All
rights reserved. SVB, SVB FINANCIAL GROUP, SILICON VALLEY
BANK, MAKE NEXT HAPPEN NOW and the chevron device are trademarks
of SVB Financial Group, used under license. Silicon
Valley Bank is a member of the FDIC and
the Federal Reserve System. Silicon Valley Bank is
the California bank subsidiary of SVB Financial
Group. [SIVB-F]
About the California Reinvestment Coalition
The California Reinvestment Coalition builds an inclusive and fair
economy that meets the needs of communities of color and low-income
communities by ensuring that banks and other corporations invest
and conduct business in our communities in a just and equitable
manner.
About The Greenlining Institute
The Greenlining
Institute works toward a future when communities of color can build
wealth, live in healthy places filled with economic opportunity,
and are ready to meet the challenges posed by climate change.
www.greenlining.org
About the Massachusetts Affordable Housing
Alliance
MAHA educates and mobilizes to increase affordable
homeownership opportunities, break down barriers facing first-time
and first-generation homebuyers, and close the racial wealth and
homeownership gaps. Since 1985, MAHA's campaigns have resulted
in affordable mortgages for over 23,000 homebuyers and over
$10 billion in public and private
investment in affordable housing. MAHA's comprehensive homebuyer
and homeowner education programs have graduated over 38,000
individuals, more than any other organization in the state.
About Massachusetts Association of Community Development
Corporations
MACDC is the policy and capacity-building arm
of the community development movement in Massachusetts. Founded in 1982, we now have
over 90 member organizations, including all 63 state-certified
Community Development Corporations in Massachusetts. Our mission is to build and
sustain a high performing and adaptive community development sector
that is supported by private and public investment and sound public
policies. We advance racial and economic equity by creating
healthy communities where everyone lives in housing they can
afford, benefits from economic opportunities and can fully
participate in the civic life of their community.
Forward-Looking Statements
This communication contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 including but not limited
to SVB's and/or Boston Private's expectations or predictions of
future financial or business performance or conditions.
Forward-looking statements are typically identified by words such
as "believe," "expect," "anticipate," "intend," "target,"
"estimate," "continue," "positions," "prospects" or "potential," by
future conditional verbs such as "will," "would," "should," "could"
or "may", or by variations of such words or by similar expressions.
These forward-looking statements are subject to numerous
assumptions, risks and uncertainties, which change over time.
Forward-looking statements speak only as of the date they are made
and we assume no duty to update forward-looking statements. Actual
results may differ materially from current projections. In addition
to factors previously disclosed in SVB's and Boston Private's
reports filed with the U.S. Securities and Exchange Commission (the
"SEC") and those identified elsewhere in this document, the
following factors, among others, could cause actual results to
differ materially from forward-looking statements or historical
performance: ability to obtain regulatory approvals and meet other
closing conditions to the acquisition/merger; delay in closing the
merger; the outcome of any legal proceedings that may be instituted
against SVB or Boston Private; the occurrence of any event, change
or other circumstance that could give rise to the right of one or
both parties to terminate the merger agreement providing for the
merger; difficulties and delays in integrating Boston Private's
business or fully realizing cost savings and other benefits;
business disruption following the merger; changes in asset quality
and credit risk; the inability to sustain revenue and earnings
growth; the inability to retain existing Boston Private clients;
the inability to retain Boston Private employees; changes in
interest rates and capital markets; inflation; customer borrowing,
repayment, investment and deposit practices; customer
disintermediation; the introduction, withdrawal, success and timing
of business initiatives; competitive conditions; the inability to
realize cost savings or revenues or to implement integration plans
and other consequences associated with mergers, acquisitions and
divestitures; economic conditions; the impact, extent and timing of
technological changes, capital management activities, and other
actions of the Federal Reserve Board and legislative and regulatory
actions and reforms; and the impact of the global COVID-19 pandemic
on SVB's and/or Boston Private's businesses, the ability to
complete the proposed merger and/or any of the other foregoing
risks. Annualized, pro forma, projected and estimated numbers are
used for illustrative purpose only, are not forecasts and may not
reflect actual results.
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SOURCE Silicon Valley Bank