{"id":153227,"date":"2024-01-30T08:30:48","date_gmt":"2024-01-30T13:30:48","guid":{"rendered":"https:\/\/ncrc.org\/?p=153227"},"modified":"2024-01-29T15:59:15","modified_gmt":"2024-01-29T20:59:15","slug":"ncrc-and-first-financial-bank-announce-2-4-billion-community-benefits-agreement","status":"publish","type":"post","link":"https:\/\/ncrc.org\/ncrc-and-first-financial-bank-announce-2-4-billion-community-benefits-agreement\/","title":{"rendered":"NCRC And First Financial Bank Announce $2.4 Billion Community Benefits Agreement"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The National Community Reinvestment Coalition (NCRC) and First Financial Bank have entered into a new $2.4 billion, five-year Community Benefits Agreement (CBA), establishing goals for lending and investments to low- and moderate-income (LMI) clients and census tracts. The new agreement follows the successful conclusion of First Financial\u2019s previous CBA, during which it achieved 192% of its $1.75 billion goal in lending and investments for 2018-2023.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cFirst Financial exceeded the goals we set together in our previous CBA and agreed to continue this strategic collaboration by negotiating new commitments to low- and moderate-income communities,\u201d <\/span><b>said NCRC President and CEO Jesse Van Tol.<\/b><span style=\"font-weight: 400;\"> \u201cThese new commitments will directly improve the material conditions of under-resourced neighborhoods within the bank\u2019s footprint. Every bank should take notice and embrace the same collaborative approach that First Financial continues to take on these issues.\u201d\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Since 2016, NCRC has facilitated 30<\/span><a href=\"https:\/\/ncrc.org\/explainer-how-ncrc-brings-banks-and-local-leaders-together-for-community-benefits-agreements\/\"> <span style=\"font-weight: 400;\">community benefits agreements<\/span><\/a><span style=\"font-weight: 400;\"> with bank groups that committed more than $580 billion for mortgage, small business and community development lending, investments and philanthropy in LMI and under-resourced communities.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cOur new Community Benefits Agreement is a bold statement about how First Financial intends to continue its mission to improve lives and help communities thrive,\u201d <\/span><b>said Archie Brown, president and CEO of First Financial.<\/b><span style=\"font-weight: 400;\"> \u201cThese are neighborhoods where we live and work, and we are taking a leading role in helping our neighbors achieve goals and improve their financial wellbeing.\u201d\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">First Financial\u2019s goals under the CBA for 2024-2028 include:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">$700 million in mortgage lending, through the use of products providing greater access to LMI communities and borrowers, an intentional effort in rural communities, a commitment to community development mortgage loan officers and providing small-dollar mortgages and home improvement loans,\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">$600 million in small business lending through support of small business development corporations and business incubators, and microloans,\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">$1.075 billion in community development lending and investments in affordable housing, community services, revitalization and stabilization, and projects that create permanent jobs, which benefit LMI areas<\/span><span style=\"font-weight: 400;\">,\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">$18 million in philanthropy, targeting donations to organizations that create and preserve affordable housing and workforce development, plus those that provide housing counseling and promote financial and economic inclusion,\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">$9 million in branch distribution and access, with three new financial centers located in LMI communities,\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Commitment to a minimum source-able vendor spend of 25% with minority-owned business enterprises (MBE), women-owned business enterprises (WBE)<\/span><span style=\"font-weight: 400;\">,<\/span><span style=\"font-weight: 400;\"> disability-owned business enterprises (DBE) and veteran-owned businesses by 2028,\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">$1.2 million in marketing and communications to benefit clients and communities in LMI and majority minority census tracts (MMCT).\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">\u201cWe have much to accomplish under this new agreement and already have a head start working in many of these areas,\u201d said Roddell McCullough, chief corporate responsibility officer for First Financial. \u201cOur previous CBA was an incredible success, touching thousands of lives for the better. I am excited at the prospect of helping many more individuals, families and businesses in the next five years.\u201d\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The following NCRC member organizations also signed on to the new agreement:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">REBOUND, Inc.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Northwest Indiana Community Action<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Prosperity Indiana<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Legal Aid of Southeastern and Central Ohio<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Housing Partnership, Inc.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Housing Opportunities Made Equal of Greater Cincinnati<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Community Shelter Board<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Fair Housing Center of Central Indiana<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">River City Housing, Inc.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Working In Neighborhoods<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">County Corp.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">First Financial\u2019s commitment to the community over recent years was also validated when it achieved a rating of Outstanding from the Federal Reserve Board in 2021 for its performance under the Community Reinvestment Act (CRA). This rating, the highest available, came after a broad evaluation of First Financial\u2019s lending, investment and service levels from 2017-2020. The review specifically looked at First Financial\u2019s work that benefited customers who met income guidelines or resided in LMI census tracts.\u00a0<\/span><\/p>\n<h2 style=\"text-align: center;\"><b>Summary of the Community Benefits Plan Renewal Between the National Community Reinvestment Coalition and First Financial Bank<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Building on the success of its 2018 Community Benefits Plan (the \u201c2018 Plan\u201d), First Financial Bank will renew its commitments and under a new Community Benefits Plan and will lend or invest $2.4 billion to low- and moderate-income borrowers and communities over a five-year period from January 1, 2024 to December 31, 2028.\u00a0\u00a0<\/span><\/p>\n<h3><b>Mortgage Lending to Low- and Moderate-Income Borrowers and Communities<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h3>\n<p><b>Plan Commitment: $700 million over 5 years<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">First Financial Bank will lend $700 million to LMI borrowers and borrowers in majority minority census tracts, representing a 37% increase over First Financial Bank\u2019s 2018 Plan commitment. First Financial Bank also commits to the following mortgage lending sub-goals:\u00a0\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">$76 million in loans under $100,000 for LMI and majority minority census tracts, minority borrowers or borrowers with LMI;\u00a0 <\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">$<\/span><span style=\"font-weight: 400;\">208 million will target rural lending to support non-MSA census tracts; and\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">$296 million in lending to BIPOC or LMI borrowers and communities.\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">First Financial Bank will provide reports detailing mortgage lending in both dollar volume and loan units to Black, Latinx, Asian and LMI borrowers to its Community Advisory Board. First Financial Bank also commits to developing and implementing affordable products that assist with interest rates, continued homeownership, and home repairs\/maintenance to keep families in their homes.\u00a0<\/span><\/p>\n<h3><b>Small Business Lending<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h3>\n<p><b>Plan Commitment: $600 million over 5 years<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">First Financial Bank will lend $600 million to LMI borrowers and borrowers in majority minority census tracts, representing a 6.76% increase over First Financial Bank\u2019s actual small business lending volume for the prior five-year period (excluding PPP loans). In addition, First Financial Bank will modify its microlending program to provide access to flexible small business credit to all counties within its footprint.\u00a0<\/span><\/p>\n<h3><b>Community Development Lending and Investments<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h3>\n<p><b>Plan Commitment: $1.075 billion over 5 years<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">First Financial Bank commits to $1.075 billion for qualified community development loan and investment opportunities within the bank\u2019s assessment areas, more than doubling its 2018 Plan commitment.\u00a0<\/span><\/p>\n<h3><b>Philanthropy<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h3>\n<p><b>Plan Commitment: $18 million over 5 years<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">First Financial Bank will make $18 million in donations over the five-year plan period and will specifically target donations to organizations that create and preserve affordable housing and workforce development.\u00a0<\/span><\/p>\n<h3><b>Branch Distribution and Financial Services Access<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">First Financial Bank\u2019s committed to eight new branches in LMI neighborhoods in the 2018 Plan. Going forward, First Financial Bank commits to maintaining a minimum of 25% of its branches in LMI communities. In addition, First Financial Bank commits to developing and maintaining a small dollar loan product with flexible lending standards, with access to LMI individuals and to combat pay-day lenders.\u00a0<\/span><\/p>\n<h3><b>Marketing and Communications<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h3>\n<p><b>Plan Commitment: $1.2 million over 5 years<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Reflecting a key component of First Financial Bank\u2019s 2018 Plan success, First Financial Bank commits to targeting $1.2 million over the five-year plan period for marketing and promotions that aim to reach minority and LMI communities across the bank\u2019s footprint, a 20% increase over the prior plan commitment.\u00a0\u00a0<\/span><\/p>\n<h3><b>Supplier Diversity<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">In addition to the commitments above, First Financial Bank will maintain our Supplier Diversity commitment with a minimum source-able spend of 25% with diverse businesses (minority-owned, women-owned, veteran-<\/span> <span style=\"font-weight: 400;\">owned and disability-owned) compared to the prior commitment of 10%.\u00a0<\/span><\/p>\n<h3><b>Plan Governance<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">First Financial Bank will continue to work with the Community Advisory Board created under the 2018 Plan. NCRC will appoint 50% of the CAB members with meetings held twice annually, rotating locations throughout the bank\u2019s footprint. First Financial Bank will continue to provide quantitative and qualitative reporting in line with the reporting provided under the 2018 Plan. <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The new community benefits agreement with First Financial Bank builds on prior 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