SAN FRANCISCO, Oct. 6, 2021 – Banc of California, the California Reinvestment Coalition (CRC), and The Greenlining Institute announced today a $1.4 billion, five-year community benefits agreement that will increase financial resources to low- and moderate-income people and communities throughout California.
Under the agreement, Banc of California will institute several initiatives that expand its overall qualified CRA lending, investment, charitable contribution, supplier diversity, and related activities beginning in 2022. Banc of California, CRC and The Greenling Institute worked collaboratively to develop the plan in connection with Banc of California’s acquisition of Pacific Mercantile Bank.
The plan includes the following goals and commitments, among others, of the combined institution:
- Increase the bank’s community development lending commitment to $1.4 billion over 5 years, including $200 million for deed-restricted affordable housing and at least 50 percent targeted toward economic development efforts;
- Provide $125 million in community development investments over 5 years, which includes supporting nonprofit organizations, community land trusts and community efforts to acquire and preserve distressed assets. This includes equity equivalent investments of $1 million and capacity-building grants of $100,000 consistent with California’s SB 1079;
- Review of its policies, procedures and practices to see how they align with CRC’s Anti Displacement Code of Conduct and support the reduction of displacement of low-income people and people of color;
- Create at least one Special Purpose Credit Program with an aspirational target of $100 million committed to providing access to capital to underserved groups by race, ethnicity and/or gender. The Bank will consult with Greenlining and CRC members about the design and goals of the SPCP
In addition, the Bank committed to originating or purchasing $50 million in single-family mortgages in LMI communities in California, continuing to waive out-of-network surcharges for California public assistance recipients who use Electronic Benefits Transfer Cards (EBT), increasing its annual charitable contributions budget to no less than $1 million per year, doubling its sourceable procurement spend from 4 percent to 8 percent to diverse businesses, and meeting annually with CRC and Greenlining to review progress on the plan and continuing to work together to serve their various constituencies.
“We are pleased that Banc of California has continued its commitment to serving low- to moderate-income communities and communities of color in California,” said CRC Executive Director Paulina Gonzalez-Brito. “CRC members and the local communities played a critical role in our discussions with the bank. This agreement wields the potential to increase long-term wealth-building opportunities for California’s low-income communities. We look forward to seeing the lasting impacts of this agreement.”
“This agreement is a success for historically underserved California communities, and we applaud Banc of California’s leadership for its willingness to collaborate as well as its commitment to developing a plan that invests in and helps stabilize these communities,” said Debra Gore-Mann, President & CEO of The Greenlining Institute.
“Banc of California has a record of strong CRA performance and a commitment to serving communities throughout Southern California as reflected in our most recent CRA exam,” said John Sotoodeh, Banc of California’s Chief Operating Officer. “We remain committed to continuing and improving upon this record. This agreement reflects the benefits of collaboration and opportunity to better the communities we serve.”
The California Reinvestment Coalition
The California Reinvestment Coalition (CRC) is the largest statewide community reinvestment coalition in the country, with over 300 member organizations across California that provide services to tens of thousands of Californians. CRC members include affordable housing developers, community development financial institutions, housing counseling agencies, small business technical assistance providers, legal services agencies, and community-based organizations.
The Greenlining Institute
Founded in 1993, The Greenlining Institute envisions a nation where communities of color thrive and race is never a barrier to economic opportunity. Because people of color will be the majority of our population by 2044, America will prosper only if communities of color prosper. Greenlining advances economic opportunity and empowerment for people of color through advocacy, community and coalition building, research, and leadership development. We work on a variety of major policy issues because economic opportunity doesn’t operate in a vacuum. Rather than seeing these issues as being in separate silos, Greenlining views them as interconnected threads in a web of opportunity.
About Banc of California, Inc.
Banc of California, Inc. (NYSE: BANC) is a bank holding company with approximately $8.0 billion in assets and one wholly-owned banking subsidiary, Banc of California, N.A. (the “Bank”). The Bank has 35 offices including 30 full-service branches located throughout Southern California. Through our dedicated professionals, we provide customized and innovative banking and lending solutions to businesses, entrepreneurs and individuals throughout California. We help to improve the communities where we live and work, by supporting organizations that provide financial literacy and job training, small business support and affordable housing. With a commitment to service and to building enduring relationships, we provide a higher standard of banking. We look forward to helping you achieve your goals. For more information, please visit us at www.bancofcal.com.
Brian Maxey, email@example.com