Bank Agreements

In the past 5 years, CRC’s agreements with banks have resulted in $40 billion invested in California communities.

CRC’s approach to bank advocacy is based on clear and transparent research, analysis, and public benchmarks that are accountable to communities of color and low-income communities. These agreements with banks were negotiated with communities and community members at the table and resulted in commitments of between 10-20% of California deposits to be reinvested in local communities.

Our work with banks is guided by the Community Reinvestment Act. This infographic shows how communities use CRA to keep banks accountable and investing in their neighborhoods.

Community Reinvestment Act

The Community Reinvestment Act (CRA) is a federal law that is a response to redlining. CRA creates a duty for banks to reinvest in communities where they take deposits, including low and moderate income neighborhoods.

Flagstar Bank

The plan includes a commitment of $600 million over 5 years towards community development in San Bernardino County. This agreement, negotiated as part of Flagstar’s acquisition of Desert Community Bank, meets CRC’s gold standard for bank investments, lending, and services in communities of color and low-income communities.

Cathay Bank

The plan sets out goals for over $4 billion in loans, investments, and financial services to low and moderate income communities and communities of color over ten years across the geographic footprint of the combined bank, including Los Angeles and Orange Counties, portions of Riverside, San Bernardino, San Diego,…

Bank of Hope (BBCN and Wilshire Bank) CRA Agreement

The plan sets public goals for reinvestment in low- and moderate-income communities and communities of color totaling 10% of the bank’s statewide deposits in 2017, increasing to 12% by 2021, and 15% by 2025. Over a ten year period, this amounts to at least $8.1 billion worth of reinvestment…

City National CRA Agreement

The plan calls for the bank to achieve a minimum of $11 billion in cumulative qualified CRA activity during the next five years. This amount corresponds to the bank’s goal of reaching a level of qualified CRA activity equal to 15% of the bank’s normalized California deposits by 2021….

Mechanics Bank Agreement

Under the plan, Mechanics will work towards an annual amount of CRA qualified loans, investments and services provided within its service area that will equal at least 15% of its California deposits by 2019, as measured each year-end and excluding time deposits, and ensure that the distribution of its lending reflects the diversity of the population within its assessment areas.

Banc of California Agreement

The plan, designed as part of its acquisition of 20 Banco Popular branches, was announced by Banc of California in 2014. Bank leadership committed to investing in CRA activities equivalent to 20% of the bank’s deposits. The bank also committed to developing a checking account that meets SafeMoney standards…