Fifth Third Achieves ‘Outstanding’ Community Reinvestment Act (CRA) Rating
January 10 2018 - 9:23AM
Business Wire
Fifth Third today announced that the Federal Reserve Bank of
Cleveland rated it “Outstanding” for CRA performance for its most
recent examination period: January 1, 2014 to June 30, 2016. The
Bank earned an ‘Outstanding’ rating on the Lending and Investment
tests and ‘High Satisfactory’ on the Service test resulting in an
overall ‘Outstanding’ rating.
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Greg Carmichael, president and CEO, Fifth
Third Bancorp (Photo: Business Wire)
The evaluation cited several reasons for Fifth Third’s overall
‘Outstanding’ rating. The Bank demonstrated an excellent
responsiveness to credit needs; distribution of loans among
borrowers of different income levels and businesses of different
revenue sizes; leadership in making community development loans and
investments; and leadership in providing community development
services.
During the exam period, Fifth Third:
- Extended nearly $7 billion to
developments in underserved communities in the form of loans ($5.9
billion) and investments ($980.5 million). Fifth Third’s
participation in commercial economic development projects stabilize
and revitalize neighborhoods and provide affordable housing.
- Provided investments of more than $567
million to support affordable housing units, designed for
individuals who earn less than 60 percent of the U.S. average
median income and low- and moderate-income areas located within the
Bank’s footprint.
- Distributed $27.3 million to nonprofit
community organizations through the Fifth Third Foundation and
Fifth Third Bancorp.
- Employees volunteered 118,861 hours of
service to low- and moderate-income individuals and in low- and
moderate-income communities.
The Community Reinvestment Act requires banks to meet the credit
needs of low- and moderate-income communities. The exam assesses
bank practices such as mortgage lending, small business lending,
community development lending and investments, bank services to
communities, and employee community involvement. For the overall
rating and three subcategories, banks are assigned one of four
ratings: Outstanding, Satisfactory, Needs to Improve or Substantial
Noncompliance.
In 2016, Fifth Third made a five-year, $30 billion community
commitment developed in conjunction with the National Reinvestment
Coalition (NCRC) to improve lives and the well-being of communities
throughout its geographic footprint. The plan outlined $30 billion
to be lent or invested in low- and moderate-income (LMI) borrowers
and in LMI communities through the year 2020. It included $11
billion in mortgage lending, $10 billion in small business lending,
and $9 billion in community development lending and investments
(CDLI). Additionally, it committed $154.8 million over five years
for Fifth Third Impact programming.
As of September 30, 2017, Fifth Third had delivered community
support of $13.5 billion against the $30 billion commitment,
results that were trending ahead of pace by nearly 28 percent. Full
year-two Commitment results will be reported in March 2018.
Fifth Third Bancorp is a diversified financial services company
headquartered in Cincinnati, Ohio. As of Sept. 30, 2017, the
Company had $142 billion in assets and operated 1,155 full-service
Banking Centers and 2,465 ATMs in Ohio, Kentucky, Indiana,
Michigan, Illinois, Florida, Tennessee, West Virginia, Georgia and
North Carolina. In total, Fifth Third provides its customers with
access to nearly 55,000 fee-free ATMs across the United States.
Fifth Third operates four main businesses: Commercial Banking,
Branch Banking, Consumer Lending and Wealth & Asset Management.
Fifth Third also has an 8.6 percent interest in Vantiv Holding,
LLC. Fifth Third is among the largest money managers in the Midwest
and, as of Sept. 30, 2017, had $348 billion in assets under care,
of which it managed $36 billion for individuals, corporations and
not-for-profit organizations through its Trust and Registered
Investment Advisory businesses. Investor information and press
releases can be viewed at www.53.com. Fifth Third’s common stock is
traded on the Nasdaq® Global Select Market under the symbol “FITB.”
Fifth Third Bank was established in 1858. Member FDIC.
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Fifth ThirdStacie Haas, 513-534-5113513-534-NEWS
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