TD Bank on Wednesday announced a five-year Community Benefits Plan that will provide an estimated $50 billion of impact to local communities across TD Bank’s expanded U.S. presence, following the approval and close of its planned acquisition of First Horizon Corp.
Developed in coordination with the National Community Reinvestment Coalition, the CBP will provide lending, philanthropy, banking access and other activities for the benefit of diverse and underserved communities.
“Banks have an important role in providing economic opportunity and supporting changes that help low- and moderate-income, diverse and underserved communities achieve their financial goals,” Leo Salom, CEO and president of TD Bank, said. “This is rooted in the belief that our business only does well when the people we serve are flourishing. Our Community Benefits Plan builds on TD Bank’s and First Horizon’s longstanding focus on our communities. We are excited to continue this focus in First Horizon markets as we move forward with combining our two organizations. Thank you to the NCRC and its member organizations for their collaboration and critical insight as we developed an effective plan that addresses the priorities and needs of the communities we serve.”
To identify areas of greatest need in communities across 22 states and Washington, D.C., the bank solicited feedback from NCRC leadership and nonprofit groups from both TD and First Horizon markets through months of consultation. TD will meet annually with the NCRC to discuss and measure progress on the elements of the plan.
“The deal we just signed will ensure that communities of need see tangible increases in resources and economic opportunity in their neighborhoods — as every bank merger is legally required and morally bound to do,” National Community Reinvestment Coalition CEO and President Jesse Van Tol said. “This agreement reflects the hard work of our members and the bank’s staff in numerous ways, including TD’s commitment to opening 25 new physical bank branches in marginalized communities — the largest such pledge to date by any of the 20-plus banks that have signed onto a community benefits agreement with NCRC members.”
The CBP extends TD and First Horizon’s shared commitment to positively impact social and economic outcomes in local markets and address financial inclusion across diverse communities, including Black, indigenous, minority, women, veteran and LGBTQ2+ individuals and their businesses, while also enhancing access to safe and affordable products and services.
The plan includes the following:
- 25 new stores in LMI and/or majority-minority communities;
- $21 billion in home lending to LMI and diverse borrowers;
- $7.75 billion in small business lending;
- $17.5 billion in community development loans and investments;
- $200 million in philanthropy through the TD Office of Charitable and Community Giving, which includes creating a $40 million TD New Horizon Foundation;
- The creation of a Community Development Financial Institutions/Minority Depository Institutions Impact Strategy, to provide lending and equity investments, with a total estimated impact of $1 billion;
- Increased spending with certified diverse suppliers in the U.S. by 50%; and
- Engagement and support of Historically Black Colleges and Universities.