Agreement adds $6.5
billion in community lending to First Citizens' longstanding
legacy of community support
N.C., Nov. 14, 2023 /PRNewswire/ -- First
Citizens Bank today announced an amendment to its existing
Community Benefits Plan agreement with the National Community
Reinvestment Coalition (NCRC) and its members that extends the
bank's longstanding community support to Northern California and Massachusetts following its March acquisition
of Silicon Valley Bank.
The additional commitment, which recognizes pre-existing Silicon
Valley Bank relationships, establishes a new $6.5 billion community financial target with the
- $2.25 billion in small business
- $3.6 billion in Community
Reinvestment Act (CRA) development lending and investing.
- $650 million in residential
mortgages to low- and moderate-income (LMI) borrowers and in
selected LMI census tracts.
First Citizens is also committing to $35
million in CRA grants or contributions, with $10 million of that sum dedicated to an
affordable home mortgage subsidy program.
The new commitment comes in addition to $3.1 billion that SVB had spent in furtherance of
its Community Benefits Plan prior to First Citizens' acquisition of
certain assets and liabilities of SVB from the Federal Deposit
Insurance Corporation (FDIC) in March. This new First Citizens
commitment also comes in addition to the $16
billion Community Benefits Plan that First Citizens
announced in February 2021. That plan
remains on track to meet its own financial targets.
Although First Citizens had no obligation to assume
responsibility for SVB's prior Community Benefits Plan, it agreed
to this addendum to further the bank's ongoing commitment to serve
the communities where it does business. Some other banks recently
acquired through FDIC receivership did not continue their Community
Benefits Plan targets.
In formulating the addendum, First Citizens, NCRC, Rise Economy,
The Greenlining Institute, the Massachusetts Affordable Housing
Alliance (MAHA) and Massachusetts Association of Community
Development Corporations (MACDC) worked together to identify the
initiatives of greatest impact to LMI communities.
"For its entire 125-year history, First Citizens Bank has taken
great pride in our continuing efforts to support clients, customers
and associates, as well as the communities in which we live and
work," said Frank B. Holding, Jr.,
chairman and CEO of First Citizens. "This addendum is a testament
to that ongoing commitment as we extend our legacy of giving back
to the cities and towns we serve, while also helping grow vibrant
and diverse communities and businesses."
"This agreement is a huge relief for the communities that stood
to lose out on new investments and programming when control of
Silicon Valley Bank was assumed by the FDIC in March – and a
testament to First Citizens' depth of commitment to the values we
share," said Jesse Van Tol, President and CEO of NCRC. "First
Citizens is honoring SVB's obligations where others might not have.
Their eagerness to listen to and learn from our members, backed
with this expansion of our previous community benefits agreement in
2021, should be an example to the industry. This is how you show
you're serious about uplifting the most neglected communities in
your service area."
"Silicon Valley Bank was an important component of the
California economy and is now
continuing to support the economy as a division of First Citizens
Bank. We at Rise Economy are pleased to have played a significant
role in ensuring that the bank's community investments, grants and
other forms of support will continue as well," said Paulina Gonzalez-Brito, Chief Executive Officer
of Rise Economy.
"We thank First Citizens Bank for this commitment to continue
Silicon Valley Bank's investments in LMI communities and households
in greater Boston and providing
new resources to assist first-time homebuyers, small businesses,
and nonprofits," said Symone
Crawford, Executive Director of the Massachusetts Affordable
Housing Alliance. "If we are to narrow the racial homeownership
gap, we need financial institutions to do more in programs like ONE
Mortgage and ONE+Boston. FCB's commitment is doing just that."
"In the wake of its acquisition of Silicon Valley Bank, First
Citizens Bank has a critical responsibility to maintain SVB's
commitments to equitably serve communities–particularly communities
of color that have historically been excluded from financial
services," said Debra Gore-Mann,
President and CEO of The Greenlining Institute. "The Greenlining
Institute is encouraged by the progress this agreement makes toward
that goal: investments in affordable and rental housing
alternatives, technical assistance for small businesses, a
people-based special purpose credit program, and grants for
BIPOC-led organizations are essential to quality of life in
communities of color. Now it's about implementation – and we look
forward to working with First Citizens to ensure these investments
reach communities of color."
"We look forward to working with First Citizens Bank as they
continue the commitments made by Silicon Valley Bank to support
community development in the Commonwealth," said Emily Haber, President and CEO of the
Massachusetts Association of Community Development Corporations.
"We are pleased that the bank recognizes the role that small
businesses play in the health and vitality of our Massachusetts communities and the critical
need to support development of affordable housing and access to
homeownership for Low and Moderate-Income residents."
After a competitive bidding process, First Citizens Bank
announced in March 2023 that it had
agreed to purchase out of FDIC receivership substantially all loans
and certain other assets and assume all customer deposits and
certain other liabilities of Silicon Valley Bridge Bank, N.A. This
represented only a portion of SVB as it existed prior to
Now operating as a division of First Citizens Bank, Silicon
Valley Bank has resumed serving some of the world's most innovative
companies and investors. SVB provides commercial and private
banking to individuals and companies in the technology, life
science and healthcare, private equity, venture capital and premium
wine industries. SVB operates in centers of innovation throughout
the United States, serving the
unique needs of its dynamic clients with deep sector expertise,
insights and connections.
About First Citizens Bank
First-Citizens Bank &
Trust Company helps personal, business, commercial and wealth
clients build financial strength that lasts. Headquartered in
Raleigh, N.C., and now celebrating
the 125th anniversary of its founding, First Citizens has built a
unique legacy of strength, stability and long-term thinking that
has spanned generations. First Citizens offers an array of general
banking services including a network of more than 500 branches and
offices in 30 states; commercial banking expertise delivering
best-in-class lending, leasing and other financial services coast
to coast; innovation banking serving businesses at every stage; and
a nationwide direct bank. Parent company First Citizens BancShares,
Inc. (NASDAQ: FCNCA) is a top 20 U.S. financial institution with
more than $200 billion in assets.
Discover more at firstcitizens.com. Member FDIC.
The National Community Reinvestment
Coalition is a network of organizations and individuals dedicated
to creating a nation that not only promises but delivers
opportunities for all Americans to build wealth and live well.
Learn more at ncrc.org.
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SOURCE First Citizens Bank