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PNC Bank, NCRC announce $88 Billion community investment commitment

PNC Bank and the National Community Reinvestment Coalition (NCRC) announced today the creation of a four-year, $88 billion community benefits plan that will increase financial resources to low- and moderate-income (LMI) people and communities across the bank’s entire national footprint. 

The plan, based on discussions between the bank, NCRC and its community-based members, is the largest commitment ever pledged by a bank to the communities where it takes deposits. Since 2016, NCRC has facilitated similar community benefits agreements with 15 bank groups worth a combined $298 billion for lending, investments and philanthropy.

The PNC plan’s goals include:

  • $47 billion for home purchase mortgage loans to people and communities of color, and borrowers and neighborhoods with LMI.
  • $26.5 billion for lending to small businesses in communities that are majority people of color and/or experiencing LMI.
  • $14.5 billion in community development lending and investment (CDLI) that will include investments into housing tax credit programs, Opportunity Zone investments, economic empowerment and social justice initiatives, as well as loans and investments to CDFIs.

“We appreciate the leadership and commitment of PNC Bank to collaborate with us and our members to develop the largest-to-date community benefits plan,” said NCRC CEO Jesse Van Tol. “This plan is a significant commitment by one of the largest banks in the nation to increase investments, services and loans for low- and moderate-income communities and neighborhoods of color. It’s rewarding and makes me hopeful when institutions and communities can come together like this to make a meaningful commitment that’s intended to have a lasting impact on lives, families and neighborhoods.”

Under the plan, the bank also committed to increase its spending with diverse suppliers by 20%, while also increasing the number of suppliers of color the bank works with over the plan’s four-year period. PNC will also form a sixteen-member Community Advisory Council that will meet semi-annually to review and discuss PNC’s progress towards the goals and objectives of this plan, as well as emerging areas of community need during the plan period.

“For over three decades, I have been fond of saying, ‘Banks are our neighborhoods’ best hope.’ The PNC plan directly responds to that hope,” said NCRC President and Founder John Taylor. “It will provide a much-needed influx of investment into critical programs that improve affordable housing, mortgage lending, small business development and economic development projects for low- and moderate-income people and neighborhoods coast-to-coast. This plan would have been impossible without the clear and unwavering commitment of PNC CEO Bill Demchak and other executive leadership at the bank, as well as the critical role our local community members played in our discussions with the bank.”

“As a Main Street bank, we believe that our success will be proportional to the prosperity we help create for our stakeholders,” said PNC chairman, president and CEO Bill Demchak. “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.”

NCRC Member Quotes:

“The Birmingham Business Resource Center and Building Alabama Reinvestment have had a long and productive relationship with BBVA. While our city and state are losing a valued corporate headquarters, we see this plan as strong evidence that PNC will make good on their commitments to community needs as well as fostering economic empowerment and racial equity. We look forward to forging a deeper relationship with PNC as we eagerly look to partner with them to help the bank achieve its goals. We are optimistic that PNC will take a leadership role in helping seed change in our state. Their acquisition of BBVA makes the 5th largest U.S bank and the third largest deposit holder in Alabama. Therefore, we expect them to not only live up to the commitments outlined in the plan, but to engage other major stakeholders, leading them to action.” Bob Dickerson, Executive Director of Birmingham Business Resource Center and Building Alabama Reinvestment, and NCRC Board Chairperson

“Looking forward to working with PNC in Colorado. There is a lot of need in our State, and we expect PNC to be a critical partner in the work that needs to get done.” Aaron Miripol, President, Urban Land Conservancy and NCRC Board Member.

“Now, maybe more than ever, it is important that all of Milwaukee’s residents have access to financial services, including fairly-priced home loans and small business loans. We look forward to working with PNC to increase lending and investments serving low- and moderate-income populations in our area.” Bethany Sanchez, Senior Administrator, Metropolitan Milwaukee Fair Housing Council and NCRC Immediate Past Chairperson.

“The City of Toledo welcomes the opportunity to enhance our partnership with PNC. We appreciate the ongoing discussions with Bill McDonnell, the Toledo Regional President, regarding product development and resources to support the needs of Toledoans and look forward to those conversations leading to increased investment in Toledo neighborhoods and to diverse small and microbusinesses in the area.” Catherine Crosby, Chief of Staff, City of Toledo and NCRC Secretary of the board.

“I am proud to join NCRC and PNC in this new community benefits plan that strengthens PNC’s commitment to communities of color. I look forward to working together with PNC to address affordable housing and access to capital for small businesses in support of the communities we serve.” David Adame, President and CEO of Chicanos Por La Causa and NCRC Board Member.

“On behalf of the St. Louis Equal Housing and Community Reinvestment Alliance, our coalition is pleased to support PNC’s community benefits plan. We are especially pleased to see commitments around addressing appraisal gaps in communities of color, supporting community-based organizations especially those led by people of color, and increasing branches in low-and moderate-income communities. Lending disparities and access to financial services continue to exist in St. Louis, and we’re happy to see PNC step up to address these issues. We look forward to working closely with PNC Bank and other NCRC members to see these commitments fulfilled.” Elisabeth Risch, Assistant Director, Metropolitan St. Louis Equal Housing and Opportunity Council and NCRC Board Member

“Pittsburgh Community Reinvestment Group and its 60 members commend PNC’s CEO William Demchak and NCRC’s CEO Jesse Van Tol’s leadership resulting in the PNC Community Benefits Plan. We look forward to working with PNC in Pittsburgh, as well with our NCRC family across the country, to provide economic opportunities and advance the diversity and inclusion it will bring to all of our communities.” Ernie Hogan, Executive Director, PCRG and NCRC Board Vice Chairperson.

This merger moves PNC into the upper tier of banking and this plan moves PNC into the upper tier of community reinvestment. I congratulate the leadership of the bank and the leadership of the community advocates, throughout the footprint, that weighed in on needs and looked for real solutions to real problems.” Irvin Henderson, President, Henderson & Company and NCRC Board Member.

“The Northwest Indiana Reinvestment Alliance has had a long-standing relationship with PNC Bank and we look forward to expanding opportunities and programs that will provide an even better way of life for the residents of Lake County Indiana and South Cook County Illinois.” Jean Ishmon, President/CEO, Northwest Indiana Reinvestment Alliance and NCRC Board Vice Chairperson.

“The California Reinvestment Coalition and The Greenlining Institute applaud NCRC’s leadership and staff for this plan, which we believe creates win-win opportunities for our communities and for PNC. Both CRC and Greenlining, as well as our members, are pleased to have worked with NCRC to develop this community benefits plan. If it were not for NCRC and its members, this plan would not have been possible. We look forward to PNC establishing and meeting ambitious lending and investment benchmarks that will create stability and wealth building opportunities for California’s diverse homebuyers, renters, small businesses and communities.” Kevin Stein, Deputy Director, California Reinvestment Coalition and NCRC Board Member; Adam Briones, Director of Economic Equity, The Greenlining Institute, and Rawan Elhalaby, Senior Economic Equity Program Manager, The Greenlining Institute.

“There is a great deal of work to do to close the racial and ethnic disparities in small business and mortgage lending throughout Maryland, particularly in Baltimore. With this Community Benefits Plan, PNC is committing to increasing lending to disinvested communities, homeowners, and small business owners. MCRC and our partners look forward to working with PNC on the implementation of the Community Benefits Plan in Maryland.” Marceline White, Executive Director, Maryland Consumer Rights Coalition and NCRC Board Member.

“PNC listened and responded to the concerns of community leaders in Texas and throughout their footprint. Particularly proud of how PNC has committed to meeting the unique needs of the Texas border region, as well as a commitment for safe consumer loans that can compete with predatory payday lenders. This plan is a strong example of how the merger process should work, with a bank meeting with local organizations and NCRC members that know their communities best to set goals for what the expanded bank can do for the underserved.” Matt Hull, Executive Director, Texas Association of Community Development Corporations and NCRC Board Member.

“Great to see a Pennsylvania-based bank step up to the plate and join forces with community-based organizations around the country to foster inclusive economic development.” Will Gonzalez, Executive Director, Ceiba and NCRC Board Member.

“Community Action Agencies along with non-profits across the country work tirelessly to promote self-sufficiency for those living in poverty in America. Benefit plans such as this will provide much needed resources to these Highly Marginalized Populations (HMP’s) by offering opportunities for equity, parity and inclusion, thus fulfilling their American Dream. We look forward to working with PNC in addressing the future of these communities.” Bernita Sims, Executive Director, Welfare Reform Liaison Project, Inc.

“This PNC program is an important commitment to housing and community development. The work of PNC with NCRC and many participating local organizations will have a lasting impact on low- and moderate-income communities throughout the PNC footprint.” Bruce Dorpalen, Executive Director, National Housing Resource Center.

“The Community Reinvestment Alliance of South Florida is pleased to have participated in this process with PNC. We look forward to working with PNC in a partnership that helps them reach their goals for additional loans and investments, and brings significant benefit to South Florida.” Cornell Crews Jr., Executive Director, Community Reinvestment Alliance of South Florida.

“United South Broadway Corporation looks forward to dialogue with PNC on the unique lending needs of New Mexico’s most vulnerable residents.” Diana Dorn-Jones, Executive Director, United South Broadway Corporation.

“We are certainly delighted to get to the finish line on this one. A lot of hard work went into crafting the final plan, and as a result, there are many opportunities to address a host of issues plaguing our overlooked, underserved, and underinvested communities. Many of these important initiatives lead with growing economic development via small businesses, as well as affordable housing developers leading revitalization efforts led by people of color. Congratulations to PNC/BBVA, NCRC and its membership. We’re looking forward to working with you all on the change to come.” Don Patterson, President, REVA Development Corporation.

“We are excited!!! We are looking forward to working with PNC for the benefit of the residents of the Lake Region of Palm Beach County, Florida.” Dorothy Walker, Executive Director, We Help Communities 2 Develop Corporation.

“We look forward to a new era of community banking and collaborative opportunities between NCRC members and PNC Bank.” Frentzie Glover, CEO, Bainbridge Group Inc.

“YWCA Southeast Wisconsin is heartened by this plan because it creates measurable goals and a process for ongoing collaboration and accountability. Changing the way we all do business is an important step in building a more equitable future for all.” Ginny Finn, President & CEO, YWCA Southeast Wisconsin.

“Catalyst Miami is glad to join our fellow NCRC member organizations in support of PNC’s Community Benefits Plan. We look forward to working with PNC and our NCRC partners in the implementation phase of the plan as well as in future collaborations to create the kind of opportunities that can help make all members of our communities safe and prosperous.” Gretchen Beesing, CEO, Catalyst Miami.

“Affordable Housing Centers of Pennsylvania is appreciative of the collaboration that has taken place between PNC Bank and the members of NCRC. This plan is the first step in the journey to transform communities that have historically lacked access to capital. Banks play a central role in the revitalization and transformation of neighborhoods and through this plan, PNC’s commitment to invest in people of color and low- and moderate-income communities, makes me hopeful.” Kenneth Bigos, Executive Director, Affordable Housing Centers of Pennsylvania.

“National NeighborWorks Association applauds the commitment of PNC to the numerous communities that their footprint touches, with this commitment memorialized in the negotiated community benefits plan and the upcoming merger. PNC has had an incredible, positive impact on our member organizations and the communities they serve. We look forward to even greater results and successes through the implementation of the plan and the upcoming merger, to affordable housing and community development.” Lou Tisler, Executive Director,  National NeighborWorks Association.

“Pima County Community Land Trust looks forward to partnering with PNC to ensure that our community has access to financial products and services that will help to increase, preserve and sustain affordable housing opportunities.” Maggie Amado Tellez, Executive Director, Pima County Community Land Trust.

“We’re pleased to see the reinvestment commitments for PNC’s footprint, especially their hometown of Pittsburgh. An $88 billion investment throughout their footprint will prove powerful. Addressing appraisal gap issues, increasing recruitment from HBCU’s, increasing charitable investments – it’s in there. By PNC digging deeper to deliver on special products for creative community needs such as land trusts, new affordable housing strategies, and increased focus on Black communities and communities of color, PNC responded to many needs of NCRC’s broad membership.” Marimba Milliones, President & CEO, Hill Community Development Corporation.

“PNC Bank’s growth is considerable with the acquisition of BBVA. The precedent-setting community benefits plan with NCRC is recognition of the critical importance that financial institutions can and must act to combat entrenched income and racial inequalities across our country. The $88 billion plan holds tremendous promise to fuel opportunity in communities that need it the most.” Nate Coffman, Executive Director, Ohio CDC Association.

“With this plan, PNC has proven they are focused on the needs of the communities they are a part of. We applaud PNC’s commitment to work together to make our communities stronger.” Nathan Minerd, Executive Director of the NeighborWorks Collaborative of Ohio.

“We, as a local community organization, look forward to PNC fulfilling its commitment by funding & working with grassroots community organizations.” Phyllis Logan, Executive Director, Universal Housing Solutions CDC.

“PNC Bank has been a valued partner of New Jersey Citizen Action for over 25 years. We believe that as banks get bigger they have an obligation to get better. We are confident that the new bank will continue to have a positive impact on lending, service provision, and investment in New Jersey’s low- and moderate-income communities. For this reason, we support this merger and look forward to working with what will become one of the largest national banks in the country.” Phyllis Salowe-Kaye, Executive Director, New Jersey Citizen Action.

“Southwest Neighborhood Housing Services Inc. embraces and looks forward to partnering up with PNC in providing financial resources serving the underserved population and opening doors for families seeking the American Dream of Homeownership.” Robert Garcia, Executive Director, Southwest Neighborhood Housing Services.

“I am so pleased to see this commitment to low- and moderate-income and BIPOC communities. PNC has made a significant commitment to supporting Black and other minority and women-owned businesses. It is important to remember that lending, especially small business lending, is not a one size fits all proposition and that focusing on regional and local conditions is important as we move towards the new normal.” Stella Adams, Owner/CEO, S J Adams Consulting.

“We are pleased to see PNC collaborate with NCRC to develop a comprehensive plan for community development. The process of developing the plan provided an additional opportunity for additional considerations from PNC through their conversations and negotiations with NCRC and member organizations. We look forward to working with PNC to improve our communities.” Stephen Torsell, Executive Director, Homes on the Hill, CDC.

“PNC’s comprehensive approach demonstrates its commitment to work with the community to create more equitable outcomes for those traditionally shut out from economic opportunity and financial services.” Tate Hill, Executive Director, Access Plus Capital

Organizations Supporting The Community Benefits Plan:


Access Plus Capital 

Acts Housing

Affordable Housing Centers of Pennsylvania

African Diaspora Directorate

Alabama NAACP

ANDP

Bainbridge Group Inc.

Berks Latino Workforce Development Corp.

Birmingham Business Resource Center

Building Alabama Reinvestment

California Reinvestment Coalition

Catalyst Miami

Ceiba

Central Baptist Community Development Corporation

Centre for Homeownership & EDC

Chicanos Por La Causa

City Ministry Network 

City of Toledo

Coalition for Non Profit Housing and Economic Development

Community Action Association of Alabama

Community Action Partnership of North Alabama, Inc.

Community Legal Services of Mid-Florida

Community Reinvestment Alliance of South Florida

County Corp

Fair Housing Center of Northern Alabama

Fair Housing Center of Southwest Michigan

FAU smartWISE Community Reinvestment Coalition of Hamilton County

Florida Alliance for Community Solutions

Friends of the African Union

Georgia Advancing Communities Together, Inc.

Greater Cincinnati Microenterpise Initiative

Greater Philadelphia Hispanic Chamber of Commerce

Havenwoods Neighborhood Partnership

Henderson & Company

Hill Community Development Corporation

Homes on the Hill, CDC

Housing Options & Planning Enterprises 

Maryland Consumer Rights Coalition

Metropolitan Milwaukee Fair Housing Council

Metropolitan St. Louis Equal Housing and Opportunity Council

Moorish Science Temple of America #5

My Project USA

NACEDA

National Association of American Veterans

National Housing Counseling Agency

National Housing Resource Center

National NeighborWorks Association

Neighborhood Concepts, Inc.

Neighborhood Housing Services of South Florida, Inc.

NeighborWorks Collaborative of Ohio

New Jersey Citizen Action

Norris Square Community Alliance

Northwest Indiana Reinvestment Alliance

Nueva Esperanza, Inc 

Ohio CDC Association

Pima County Community Land Trust

Pittsburgh Community Reinvestment Group

Prestamos CDFI

Rebirth Inc

Reinvestment Partners

REVA Development Corporation

Revitalize Milwaukee

S J Adams Consulting

Southern Dallas Progress Community Development Corporation

Southwest Economic Solutions

Southwest Neighborhood Housing Services

Spanish American Civic Association

St. Louis Equal Housing and Community Reinvestment Alliance 

St. Petersburg Neighborhood Housing Services, Inc. dba Neighborhood Home Solutions

Texas Association of Community Development Corporations

The Greenlining Institute

United Communities Southeast Philadelphia

United South Broadway Corporation

Universal Housing Solutions CDC

Urban Economic Development Association of Wisconsin (UEDA)

Urban Land Conservancy

U SNAP BAC Non Profit Housing Corporation

Washington Area Community Investment Fund (Wacif)

We Help Communities 2 Develop Corporation.

Wealth Watchers

Welfare Reform Liaison Project, Inc.

Working In Neighborhoods

YWCA Southeast Wisconsin

About NCRC

NCRC and its grassroots member organizations create opportunities for people to build wealth. We work with community leaders, policymakers and financial institutions to champion fairness in banking, housing and business. NCRC was formed in 1990 by national, regional and local organizations to increase the flow of private capital into traditionally underserved communities. NCRC has grown into an association of more than 600 community-based organizations in 42 states that promote access to basic banking services, affordable housing, entrepreneurship, job creation and vibrant communities for America’s working families. Learn more at: www.ncrc.org

For media inquiries, please contact:

Alyssa Wiltse
Media Manager, NCRC
awiltse@ncrc.org
202-393-8309

####

Summary of the Community Benefits Plan between the National Community Reinvestment Coalition and PNC Bank

PNC will lend or invest $88 billion to underserved borrowers and communities over a four-year period from 2022 through 2025.

Mortgage Lending to the Underserved

Community Benefits Commitment:    $47 billion over 4 years

PNC commits to mortgage goals for people of color, borrowers with LMI, census tracts that are majority people of color, and LMI census tracts, that all represent double-digit increases from the previous combined lending of PNC and BBVA to each of these categories. To achieve this, PNC is committing to increase its participation in public down payment assistance programs, expanding and establishing new relationships with housing counseling organizations, collaborating with housing agencies and nonprofits to promote mortgage product innovation, and continuing to regularly review the terms and features of PNC’s home lending products for opportunities to expand access to homeownership. PNC will also work with regulators, elected officials, appraisal organizations, and community organizations to identify and advance solutions to appraisal gap issues, which can be a barrier for home lending in communities of color, and especially Black and Latinx communities.

Small Business Lending

Community Benefits Commitment:     $26.5 billion over 4 years

PNC commits to goals for small businesses and small farms, businesses in census tracts that are majority people of color, and for businesses in LMI census tracts. PNC will increase the availability of technical assistance for LMI-, minority and women-owned small businesses, expand the activities of PNC’s Minority Business Development Group that leverages alternative lending options for LMI and minority business owners, and increase PNC’s financial support for Community Development Financial Institutions (CDFIs). PNC will also support the implementation of the small business reporting requirements of Section 1071 of the Dodd-Frank Act in a timely and appropriate manner.

Community Development Lending and Investment (CDLI)

Community Benefits Commitment:        $14.5 billion over 4 years

Included in the $14.5 billion is a commitment for $4 billion in LIHTC and NMTC investments, $1.5 billion in Opportunity Zone investments, economic empowerment, and social justice efforts, and $400 million in loans and investments for CDFIs. PNC will work with CDFIs to offer needed microloans for small businesses, increase investment capital and grants to CDFIs and other entities that provide technical assistance to startup businesses, and help impacted communities address problems created by vacant properties. PNC also plans to utilize impactful tools to advance neighborhood revitalization and the preservation of affordable housing, particularly in gentrifying areas and neighborhoods threatened by predatory investors, including a willingness to finance more complex deals such as the acquisition of property for land banks and land trusts.

Philanthropy

Community Benefits Commitment:        $500 million over 4 years

PNC will provide at least $10 million in annual charitable support for Individual Development Account programs, and national and local housing counseling and small business technical assistance agencies, and at least $5 million in grants to support capacity building at community organizations. Other priorities include support for non-profit business incubators that support BIPOC entrepreneurs, women, and immigrants, maintaining or increasing the current levels of philanthropic support provided to community groups in Birmingham by PNC and BBVA in recognition of the history of Birmingham as the headquarters city of BBVA, and for the first time PNC will provide resources to community organizations seeking to assist states, such as Pennsylvania, in fully utilizing the federal SNAP benefits for workforce development projects. PNC will also work to develop a process for tracking how much of its philanthropic support is provided to non-profit community organizations that are led by people of color so that PNC can better monitor and increase its philanthropic support to these organizations.

Supplier Diversity

PNC plans to substantially increase its spending with diverse suppliers by at least 20 percent and expand the number of its diverse supplier relationships over the Plan Period. PNC will leverage its Supplier Diversity Program and, in consultation with the Advisory Council and NCRC, develop a plan to achieve these goals. PNC will report out on PNC’s relationships and spending with African American-, Latinx-, Asian-American-, women- and veteran-owned businesses.

Local Implementation

Representatives from PNC’s local Regional President, Community Development Banking (“CDB”) and Client & Community Relation Director (“CCRD”) organizations will meet with local community organizations, including local NCRC member organizations, at least semi-annually to discuss specific ways to advance the goals outlined in this Plan through initiatives that benefit the local community. These meetings will identify community development opportunities in the region and local community needs, and discuss potential ways that PNC can partner with local organizations to help meet those needs. PNC will provide NCRC the contact information for PNC’s Regional Presidents, CDB and CCRDs to help facilitate this ongoing dialogue.

Plan Accountability

PNC will form a sixteen-member Community Advisory Council that will meet semi-annually to review and discuss PNC’s progress towards the goals and objectives of this Plan, as well as emerging areas of community need during the Plan Period. PNC will provide regular reports to the Council and NCRC on its progress under this Plan, and this will include information on PNC’s home lending, small business lending, community development lending and investments and philanthropic activity on both a national and state-by-state basis. In addition, PNC will host an annual Community Leadership Symposium to discuss community development needs and how PNC can best help meet those needs. The first annual Symposium will include a session devoted to racial equity and effective ways for promoting racial equity and financial inclusion.

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Redlining and Neighborhood Health

Before the pandemic devastated minority communities, banks and government officials starved them of capital.

Lower-income and minority neighborhoods that were intentionally cut off from lending and investment decades ago today suffer not only from reduced wealth and greater poverty, but from lower life expectancy and higher prevalence of chronic diseases that are risk factors for poor outcomes from COVID-19, a new study shows.

The new study, from the National Community Reinvestment Coalition (NCRC) with researchers from the University of Wisconsin–Milwaukee Joseph J. Zilber School of Public Health and the University of Richmond’s Digital Scholarship Lab, compared 1930’s maps of government-sanctioned lending discrimination zones with current census and public health data.

Table of Content

  • Executive Summary
  • Introduction
  • Redlining, the HOLC Maps and Segregation
  • Segregation, Public Health and COVID-19
  • Methods
  • Results
  • Discussion
  • Conclusion and Policy Recommendations
  • Citations
  • Appendix

Complete the form to download the full report: