Fifth Third Bank, National Association, announced today that it
would invest $100 million in projects that support community
development through four Opportunity Zone fund partners. The first
two partners were announced at a 9:00 AM press conference at the
national headquarters of Local Initiatives Support Corporation
(LISC). The National Equity Fund, an affiliate of LISC, and Raymond
James will be the first two partners to identify and structure
investments meeting the Bank’s criteria. The remaining two partners
will be announced in Chicago on Monday, Jan. 27.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20200124005309/en/
Byna Elliott, chief enterprise
responsibility officer, Fifth Third Bank; Maurice A. Jones, LISC
president and CEO; Catherine Cawthon, Fifth Third CDC president;
and Jesse Van Tol, CEO National Community Reinvestment Coalition
discuss Fifth Third's $100M investment in projects that support
community development through four Opportunity Zone fund partners.
(Photo: Business Wire)
The funds will be used to develop projects in low-income urban
and rural communities across the Bank’s 10-state footprint. This
investment represents one of the largest made by an institution
with a social impact investment strategy in Opportunity Zones.
“We are committed to forging impactful partnerships that deliver
community revitalization,” said Greg D. Carmichael, chairman,
president & CEO, Fifth Third Bank. “We are proud to use this
innovative approach to ensure our capital will serve the
communities that are most in need.”
“This long-term investment in Opportunity Zones is a call to
action for communities to partner with institutions that are
aligned with making a social investment,” said Byna Elliott, chief
enterprise responsibility officer. “Building affordable and
middle-income housing, increasing capital for small businesses and
workforce development programs benefits all of our community
stakeholders.”
Designed to spur long-term private sector investment into
economic development and job creation in economically distressed
communities, Opportunity Zones were established as part of the 2017
Tax Cut and Jobs Act to promote investment and development in a
significant number of qualified low-income census tracts.
Investment projects will need to satisfy the following Fifth Third
social impact criteria:
- Located in a qualified Opportunity Zone
- Public welfare investment eligible
- Project will be developed by an experienced, credit-worthy
sponsor
- Located in an MSA where Fifth Third has determined community
need under the CRA
- Actionable before the end of June 2020
- Expected to generate a positive economic return
- Offers opportunities to expand relationships with the bank
Fifth Third is committing $25 million to the NEF Fifth Third
Opportunity Zone Fund I LLC and $25 million to the Raymond James
Opportunity Zone Fund IV. The remaining $50 million will be
committed to two other partners. The funds will be used in three
key investment categories: affordable housing; workforce housing
and other community priorities for multifamily development; and
certain non-residential or mixed-use real estate serving a
particular community need, as well as projects that contribute to
local job and business growth.
“We are excited to help Fifth Third break new ground in
Opportunity Zones with a strategy that prioritizes local impact
along with a reasonable financial return,” said Maurice A. Jones,
LISC president and CEO. “Not only does this capital help LISC’s
affiliate NEF fuel housing for working families, but it also
features a novel approach that will represent the best intent of
the Opportunity Zone incentive.”
Fifth Third Opportunity Zone investment projects that are
currently being considered include the redevelopment of affordable
and workforce housing with a minimum of 51% of the units targeted
to families with income at or below 80% of the area median income;
forming a partnership with a housing authority organization to
bring a grocery store to a food desert; investment in neighborhoods
that are part of larger strategic growth initiatives in various
cities; community centers for public housing residents and creating
a commercial kitchen for use by small business entrepreneurs.
The first projects from the Fifth Third Opportunity Zone
investments should be announced by June 30, 2020.
About Fifth Third
Bancorp
Fifth Third Bancorp is a diversified financial services company
headquartered in Cincinnati, Ohio, and the indirect parent company
of Fifth Third Bank, National Association, a federally chartered
institution. As of December 31, 2019, Fifth Third had $169 billion
in assets and operated 1,149 full-service banking centers and 2,481
ATMs with Fifth Third branding in Ohio, Kentucky, Indiana,
Michigan, Illinois, Florida, Tennessee, West Virginia, Georgia and
North Carolina. In total, Fifth Third provides its customers with
access to approximately 53,000 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 is among the largest money managers in the
Midwest and, as of December 31, 2019, had $413 billion in assets
under care, of which it managed $49 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. Deposit
and Credit products are offered by Fifth Third Bank, National
Association. Member FDIC.
About LISC and NEF
With residents and partners, LISC forges resilient and inclusive
communities of opportunity across America – great places to live,
work, visit, do business and raise families. Since 1979, LISC has
invested more than $20 billion to build or rehab 400,500 affordable
homes and apartments and develop 66.8 million square feet of
retail, community and educational space. Founded in 1987 by LISC,
NEF is a leading investor in affordable housing currently managing
more than $15 billion of investments in more than 110,000 units for
affordable housing across the country. To learn more, visit
www.lisc.org and www.nefinc.org.
About Raymond James Tax Credit
Funds
Raymond James Tax Credit Funds is a wholly owned subsidiary of
Raymond James Financial, Inc. (NYSE-RJF). Since 1969, subsidiaries
of RJF have been among the leading syndicators of affordable
housing. Raymond James Tax Credit Funds has raised more than $8.75
billion in equity for more than 1,990 properties across the United
States since the inception of the tax credit program in 1986. For
more information, visit rjtcf.com.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200124005309/en/
Danielle Jones (Media Relations) Danielle.Jones@53.com |
513-534-0162
Chris Doll (Investor Relations) Christopher.Doll@53.com |
513-534-2345
Fifth Third Bancorp (NASDAQ:FITB)
Historical Stock Chart
From Mar 2024 to Apr 2024
Fifth Third Bancorp (NASDAQ:FITB)
Historical Stock Chart
From Apr 2023 to Apr 2024