American Banker: Fifth Third ups CRA pledge by $2 billion amid Chicago expansion
American Banker, October 29, 2018: Fifth Third ups CRA pledge by $2 billion amid Chicago expansion
Fifth Third Bancorp on Monday announced plans to increase its community development pledge by $2 billion, to a total of $32 billion, as the Cincinnati company looks to expand in Chicago.
The expansion marks the second time in two years that Fifth Third has upped its pledge to invest in underserved neighborhoods. In partnership with the National Community Reinvestment Coalition, Fifth Third in February 2016 committed $27.5 billion over five yearsto provide loans and other financial services in low-income areas across the Midwest and Southeast.
Under the program announced Monday, Fifth Third plans to invest roughly $200 million to expand access to mortgages, through a mix of down-payment assistance and loans backed by the Federal Housing Administration.
Fifth Third also plans to provide loans to nonprofit and government entities, and will evaluate potential investments related to the Opportunity Zone tax incentives, according to the release.
John Taylor, president and founder of the National Community Reinvestment Coalition, said his organization is “eager” to continue its collaboration with the $142 billion-asset Fifth Third.
“The NCRC and its member organizations were pleased to be included in the development and expansion of Fifth Third’s community commitment and its specific plans for the Chicago market,” Taylor said in the release.