North Carolina-headquartered First Citizens Bank has moved to expand its community reinvestment work in the wake of its purchase of Silicon Valley Bank (SVB) earlier this year.
The bank announced an amendment to its existing Community Benefits Plan agreement with the National Community Reinvestment Coalition (NCRC) and its members this week. The expansion extends its community support to northern California and Massachusetts, where its SVB branches operate.
The commitment included a $6.5 billion community financial target, recognizing pre-existing SVB relationships. This includes $2.25 billion in small business lending, $3.6 billion in Community Reinvestment Act (CRA) development lending and investing, and $650 million in residential mortgages for low- and moderate-income (LMI) borrowers.
First Citizens has also committed to providing $35 million in CRA grants or contributions, with $10 million dedicated to an affordable home mortgage subsidy program. This initiative builds upon the $3.1 billion spent by SVB before the acquisition.
Frank Holding Jr, chairman and CEO of First Citizens, emphasized the bank’s longstanding commitment to supporting communities, explaining: “This addendum is a testament to that ongoing commitment as we extend our legacy of giving back to the cities and towns we serve, while also helping grow vibrant and diverse communities and businesses.”
Jesse Van Tol, president and CEO of the NCRC, commended First Citizens for honoring SVB’s obligations. Other community organizations, including Rise Economy, The Greenlining Institute, and the Massachusetts Affordable Housing Alliance, also lauded the commitment as a positive step toward equitable community development.
First Citizens bought the bulk of SVB’s business in late March after the California-based bank was closed down by regulators and taken over by the Federal Deposit Insurance Corporation.
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