Fifth Third Bancorp today announced continued strong progress
against its five-year Community Commitment. As of December 31,
2018, the Bank had delivered $20.3 billion under the plan, which is
68 percent* of the total commitment and puts Fifth Third on pace to
deliver the Commitment ahead of its scheduled completion in
2020.
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Fifth Third Bancorp has delivered $20.3
billion under its five-year Community Commitment plan. (Graphic:
Business Wire)
The Community Commitment was first announced in 2016 as a $27.5
billion plan over five years. Later that year, it was increased to
$30 billion upon consultation with more than 200 community groups
and the National Community Reinvestment Coalition (NCRC). In 2018,
the Bank expanded the commitment to $32 billion in consideration of
its planned expansion in Chicago as a result of the merger with MB
Financial, which closed March 22, 2019.
The $20.3 billion delivered under the Commitment has directly
benefitted the communities served by Fifth Third through mortgage
lending, especially in low- and moderate-income (LMI) communities;
small business lending and investments; and community development
loans and investments. It also has supported Fifth Third Impact
initiatives, including philanthropy, housing and small
business-related investments, financial empowerment programming,
branches and staffing, and inclusion and supplier diversity.
“It’s important for us to report our annual progress under the
Commitment to the communities we serve,” said Greg D. Carmichael,
chairman, president and chief executive officer of Fifth Third
Bancorp. “Not only does it hold us accountable to the promises
we’ve made, but it also gives us the opportunity to share how our
collaboration with community organizations and partners is having a
real impact in people’s lives. We are pleased with our delivery of
$20.3 billion in community support over the last three years, and
look forward to continuing our progress.”
Mortgage: $8 Billion
Fifth Third has delivered $8 billion in mortgage lending since
2016, an impact partly due to the success of the Bank’s Down
Payment Assistance program, which provides up to $3,600 in down
payment funding to LMI borrowers, or to potential homeowners making
a purchase in a LMI census tract.1 The DPA program has helped over
1,800 homeowners achieve the American dream since 2017. One such
homeowner was Ken White, a married father of four in eastern
Michigan, who had always dreamed of having a home with a backyard
for his family. But he struggled to save for a down payment. The
DPA program helped White purchase a home in 2018.
Small Business: $5.6
Billion
The Bank has delivered $5.6 billion in small business lending
under the Commitment. The Bank is a U.S. Small Business
Administration (SBA) preferred lender. These loans make a distinct
impact in the community, as a SBA loan funded in Chicago last year
led to the opening of Lake Immediate Care and Clinic. The clinic is
a medical practice that is both a primary and urgent care. The
community, which didn’t have a primary care services provider at
the time, today serves 8,000 people.
The Bank also provides capital and technical assistance to small
businesses, especially those that are minority- and women-owned and
which often face a funding gap when trying to expand. Fifth Third
has invested millions of dollars in Entrepreneur of Color funds
designed to address that gap in Chicago and Detroit, and provided
the initial startup funding of $1.2 million for a new $3 million
Cincinnati Access Fund. In addition, Fifth Third underwrote the
technical services and made referrals to the fund.
Community Development Lending &
Investments (CDLI): $6.6 Billion
Fifth Third has funded $6.6 billion in community development
lending and investments since 2016, including $611.4 million in
affordable lending and revitalization projects through the Fifth
Third Community Development Corporation (CDC). Fifth Third financed
a major project in Illinois to improve and sustain neighborhood
life in a Chicago LMI community through grocery retail centers,
medical office buildings and education facilities. Fifth Third
provided financing for the Woodlawn Jewel Foods and Osco Pharmacy
Grocery Store. Additionally, the Bank supported OhioGuidestone in
Cleveland with a community development loan, investments and
volunteer service. OhioGuidestone delivers its Bridges Out of
Poverty and YouthBuild programs to expose LMI students to
experiences and lifestyles away from poverty.
The Fifth Third CDC invests in projects that revitalize
communities, create affordable housing and restore historic
buildings. In 2018, the CDC invested $246 million across the Bank’s
footprint, including five investments representing $56.3 million in
Cincinnati. The CDC also announced a $5 million investment in the
Cincinnati Development Fund to further housing redevelopment in
underserved neighborhoods, such as the renovation of the Sanctuary
at St. Michael’s complex in Cincinnati’s Lower Price Hill. The
renovations involved five historic structures and more than 46,000
square feet of classroom and event space. The CDC also joined with
the Ohio Capital Corporation last year for the grand opening of
Abington, Race and Pleasant, a project in which five vacant and
blighted buildings were turned into affordable housing and
commercial space in an urban, LMI neighborhood.
Fifth Third Impact Initiatives and
Programming:
Fifth Third has made $64.5 million in grants since 2016
under the Community Commitment. This includes $3 million in
Strengthening Our Communities grants from the Fifth Third
Foundation in 2018. The Strengthening Our Communities funding
included $1.2 million to help entrepreneurs grow their business and
create jobs, helped 2,000 people through neighborhood
revitalization projects, 8,500 people with workforce development
and financial education services, and 4,870 people with economic
development programs like technical assistance and small business
micro lending. In addition, it included $700,000 for affordable
housing and $1.1 million to deliver community financial empowerment
programs.
Programming included Summer of Dreams, a comprehensive 10-week
program for K-12 homeless students in Central Florida. Fifth Third
invests $45,000 annually to the program, which provides two free
meals and snacks each day, weekend food packs, enriching academic
activities, field trips, tutoring and mentoring, financial
empowerment and a backpack full of school supplies. More than 1,100
students participate each year at 36 sites in Orange, Seminole and
Osceola counties, and Fifth Third has supported Summer of Dreams
for seven years.
Through its Commitment, the Bank forms collaborations with
national, regional and local organizations to meet specific
community needs and improve lives. In 2018, Fifth Third expanded
capacity with community leaders through workforce development and
career development programs through the National Association for
the Advancement of Colored People. It also delivered financial
empowerment programs to community members at every age and stage of
life, including our new high school program, Fifth Third Finance
Academy, and VITA tax preparation services to low-income community
members via our Empowerment Mobile, or eBus. Fifth Third’s Supplier
Diversity spend was $77.4 million in 2018, a 55 percent increase
over 2017. Also in 2018, the Bank partnered with a construction
company to sponsor “The Pitch,” a platform for small businesses to
compete for contracts, mentoring and monetary prizes.
More about year three of the Community Commitment will be
available in the 2018 Corporate Social Responsibility Report, which
will be available next month at 53.com
Fifth Third Bancorp is a diversified financial services company
headquartered in Cincinnati, Ohio and the indirect parent company
of Fifth Third Bank, an Ohio-chartered bank. As of December 31,
2018, Fifth Third had $146 billion in assets and operated 1,121
full-service Banking Centers and 2,419 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
52,000 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, 2018,
had $356 billion in assets under care, of which it managed $37
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. Member FDIC.
*Sixty-eight percent is calculated as a percentage of $30
billion. The $2 billion expansion of the Commitment to $32 billion
began in 2019.
1To be eligible for the down payment assistance of 3% of the
home's purchase price, up to $3,600, the property must be in one of
the following eligible states: MI, IN, IL, KY, TN, OH, WV, NC, GA,
FL and either located in a low Income Census Tract or borrower must
meet the low income limit threshold based on the qualifying income
per FFIEC website. Down payment assistance may be taxable as income
and reported to the IRS. Consult your tax advisor. Not available
with all loan products. Loans are subject to credit review and
approval. Fifth Third Bank, 38 Fountain Square Plaza, Cincinnati,
OH 45263, NMLS# 403245, Equal Housing Lender.
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Stacie
Haas513/534-5113Stacie.Haas@53.com
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