SOURCE: National Community Reinvestment Coalition

National Community Reinvestment Coalition

May 20, 2016 07:00 ET

Huntington Bank and National Community Reinvestment Coalition Announce $16.1 Billion Community Development Plan

WASHINGTON, DC--(Marketwired - May 20, 2016) - Today, in an agreement reached with the National Community Reinvestment Coalition (NCRC) and its community-based members and allies across the Midwest, Huntington Bancshares Inc. announced a commitment of $16.1 billion for community development, including lending and investments, over a five-year period.

Huntington's Community Development Plan, set to begin in 2017, includes mortgage and small business lending in low- and moderate-income (LMI) communities, community development lending and investments, a philanthropy program, and other services to increase access to financial services in LMI communities and communities of color, such as 10 new branch locations across its footprint.

"We commend Huntington for working with local community advocates to reach an agreement that will help many people in working class communities and communities of color build wealth," said NCRC President and CEO John Taylor. "This plan lays out activities that will produce the kind of significant public benefit that needs to be created when banking institutions merge. Commitments like this are only possible with strong leadership from the highest levels of institutions, and we applaud Huntington Chairman, President and CEO Stephen Steinour for his leadership in this process."

"With the merger of FirstMerit into Huntington, we think it is important to share our intentions in continuing to provide exceptional support and service to the communities where we live and work," said Stephen D. Steinour, chairman, president and chief executive officer of Huntington. "The strength and vitality of these communities and the people we serve are integral to our shared future. Huntington has a 150-year track record of investing in our communities and we will continue to do so as we expand."

"I commend NCRC and all of its members in Ohio for successfully working on a plan to invest in our state's cities and neighborhoods," said U.S. Senator Sherrod Brown. "These community organizations are strong and effective advocates for the people and communities that they represent."

The commitment covers locations in Ohio, Illinois, Indiana, Kentucky, Michigan, Pennsylvania and West Virginia that will be part of Huntington's extended footprint as part of its merger with FirstMerit Corporation, and was reached following meetings with NCRC and over 100 community-based organizations.

The Community Development Plan will:

  • Fund $5.7 billion in single-family mortgage lending in low- to moderate-income areas.
  • Fund $6.6 billion in small business lending including within low- to moderate-income areas.
  • Fund $3.7 billion in community development lending and investment targeting affordable housing access and community-based loan funds.
  • Fund $25 million of additional grants and philanthropy primarily targeting housing and small business credit service access.
  • Create $30 million in further economic impact through support including new branch locations within low- to moderate-income areas and/or majority minority areas; the addition of dedicated community mortgage loan officers; and the formation of a dedicated mortgage processing team to handle unique underwriting opportunities.

"Huntington Bank's commitment to Northeast Ohio is fortified with today's announced agreement," stated Lou Tisler, Executive Director of Neighborhood Housing Services of Greater Cleveland. "Huntington came to the table in good faith, with a focus on raising the bar of community responsibility and duty and succeeded."

"We at Community Legal Aid are proud to have been part of this process and the progress it represents," said Greg Sain, Staff Attorney/Litigation Coordinator at Community Legal Aid Services, Inc. "We look forward to the lending, investment, and banking services opportunities that this agreement with Huntington Bank represents for low- and moderate-income neighborhoods historically underserved in Akron and other affected communities in our service area."

"PCRG commends Chairman, President and CEO Steven Steinour's leadership for committing to a historic agreement that will bring enhanced benefits to Pittsburgh and other regions, and we look to this being standard protocol for other bank mergers to come," said Ernie Hogan, Executive Director of Pittsburgh Community Reinvestment Group (PCRG).

"The Huntington Bank community benefits agreement is a recognition of the importance of reinvesting in low-income communities," said Nate Coffman, Executive Director of Ohio CDC Association. "Their commitment is a strong step forward to address the challenges in underserved neighborhoods. Huntington's comprehensive approach that ranges from increasing capital and mortgages in low-income communities, to support for housing counseling, to bolstering partnerships with CDCs and community groups is a blueprint to comprehensive investment."

"The Human Relations Council is glad to be included in the process of advocating for additional resources for low- to moderate-income communities in Dayton, Ohio," said Catherine Crosby, Executive Director of the City of Dayton Human Relations Council. "The resources provided through public benefit agreements increases access to capital and technical assistance to small businesses, leading to job creation and retention, non-profit social service support, resources for affordable housing and many other opportunities to ensure community assets exist to stabilize vulnerable communities."

"Banks are stabilizing neighborhood institutions and when our neighbors see institutions like Huntington say 'yes' to investing in their community it empowers them," said Amelia Gibbon, Executive Director of the Friendly Center. "When individuals are looking for a home and they see institutions like Huntington they feel like it's the right place to grow their family."

"Far too often mergers and acquisitions result in less community investment and philanthropy in low- to moderate-income neighborhoods," said Calvin L. Holmes, President of Chicago Community Loan Fund. "With this merger, Chicago residents will see an increase in investments and grants above what the two institutions were providing. This is a big win for Chicago and a clear demonstration of Huntington's commitment to LMI neighborhoods."

"Low- and moderate-income communities and communities of color in Michigan will benefit from Huntington's commitment," said Maryellen Lewis, Treasurer of the Financial Justice Coalition of Southeast Michigan. "Community organizations are looking forward to working with the bank to meet these goals. We are glad that Huntington used this plan to build on previous philanthropic commitments to the state."

"This merger contributes to the continuing revitalization of Detroit through enhanced investment and by providing greater access to financial products and opportunities for residents and small businesses customized to their needs," said Hector Hernandez, executive director of Southwest Economic Solutions. "I was impressed by the inclusive and transparent nature of the merger discussions and the receptiveness to ideas that Southwest Solutions and other organizations proposed based on our firsthand knowledge of the economic needs in our community."

"The Huntington Bank agreement is going to help to rebuild Cincinnati's minority neighborhoods which have been devastated by foreclosures and by lack of capital investment in these neighborhoods and small businesses," said Barbara Busch, Executive Director of Working In Neighborhoods. "Through this agreement Huntington Bank has committed to provide Cincinnati with access to mortgage loans for minority borrowers. This can only be done through solid partnership with trusted nonprofits like NCRC and Working In Neighborhoods."

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 development.

Contact Information

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