Bank Agreements

Over the past six years, CRC’s agreements with banks have resulted in more than $50 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.

$11 Billion Silicon Valley Bank Community Benefits Plan, 2021

California Reinvestment Coalition, The Greenlining Institute and Silicon Valley Bank (SVB) established an $11 billion, five-year Community Benefits Plan as part of the bank’s acquisition of Boston Private Bank. Under the plan, SVB would support lending and investing in the areas of small business, community development, affordable housing, and charitable giving starting in January 2022 through December 2026.Of that $11 billion, $9 billion is earmarked for California.

$16 Billion First Citizens Bank Community Benefits Plan, 2021

Starting in 2021 and ending in 2025, First Citizens Bank will support lending and investing in the areas of affordable housing, small business and community development in low- and moderate-income communities and neighborhoods of color. The five-year, $16 billion plan will follow the completion of the proposed merger of First Citizens BancShares, Inc. (“First Citizens”), the parent company of First Citizens Bank, and CIT Group Inc. (“CIT”).

$9.5 Billion Mechanics Bank Community Benefits Agreement, 2020

Starting on Jan 1, 2020 and continuing until Dec 31, 2024, Mechanics Bank will work toward an annual level of CRA qualified loans, investments, and services equal to 15% of the bank’s California deposits. The plan includes goals for community development investments, investment in affordable housing, small business lending, home ownership, supplier diversity and philanthropy.

$7.5 Billion CIT Bank Community Benefits Agreement, 2019

The plan supports CIT Bank’s announced acquisition of Mutual of Omaha Bank and provides commitments for investments in low and moderate-income neighborhoods of color in the areas of small business, affordable housing and community development, as well as expanded banking services in low income communities and neighborhoods of color.

$100+ Million CIT/OneWest HUD Conciliation Agreement, 2019

In its agreement with CRC, CIT will institute several initiatives that expand opportunities for Southern Californian communities of color to gain equal access to home mortgage loans, down payment assistance, financial education and other community development efforts. Such initiatives include opening a new branch and offering Federal Housing Administration (FHA) and non-jumbo loans to communities of color, as well as providing subsidies to eligible borrowers to purchase, refinance or improve their homes. In addition, the company will provide and promote language access services for home loan borrowers and translate branch mortgage marketing materials into Spanish.

$600 Million Flagstar Bank Community Benefits Agreement, 2017

The plan includes a commitment of $600 million over five 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.

$4 Billion Cathay Bank Community Benefits Agreement, 2016

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,…

$8 Billion Bank of Hope Community Benefits Agreement, 2016

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…

$11 Billion City National Community Benefits Agreement, 2015

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….

$2.5 Billion Mechanics Bank Community Benefits Agreement, 2015

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.

$10 Billion Banc of California Community Benefits Agreement, 2014

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…