NEW YORK, Nov. 1, 2019 /PRNewswire/ -- CIT Group Inc. (NYSE: CIT) today announced a community benefits plan developed in collaboration with the California Reinvestment Coalition (CRC) and the National Community Reinvestment Coalition (NCRC) that builds on the combined work of its banking subsidiary CIT Bank, N.A. (CIT Bank) and that of Mutual of Omaha Bank. 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.
Lending and investments would total $7.75 billion over the 2020 to 2023 period and align with the combined retail branch footprint in Arizona, California, Colorado, Florida, Hawaii, Kansas, Nebraska, Nevada and Texas.
Key elements of the community benefits plan include the following goals:
- $6.5 billion of community lending and investments in California, where CIT Bank has $15 billion in deposits from individuals and businesses and the largest concentration of retail branches, to support $2.5 billion in single family lending, $1.42 billion of multi-family lending, $780 million of small business lending, $1.8 billion of community development lending and investments, and $25 million of charitable grants with a focus on initiatives that support affordable housing, economic development and financial education and wellbeing.
- Adding a retail branch in California, which will serve low and moderate-income customers in a neighborhood of color.
- Reviewing CIT Bank's policies, procedures and practices to determine alignment with CRC's Anti Displacement Code of Conduct and agreeing to discuss with CRC and community groups the role the bank can play in reducing involuntary displacement of low and moderate-income individuals and people of color.
- $1.25 billion of community investments, lending and grants in Arizona, Colorado, Florida, Hawaii, Kansas, Nebraska, Nevada and Texas, where Mutual of Omaha Bank's branches are located.
"Contributing to strong and vibrant communities where we live, work and do business is core to our mission, and this community benefits plan solidifies our path as we build on the work that CIT Bank and Mutual of Omaha Bank do today to support small businesses, affordable housing, homeownership, access to credit and financial education," said CIT Chairwoman and Chief Executive Officer Ellen R. Alemany. "This plan reflects the ongoing dialogue we have had with NCRC, CRC and approximately 90 individual community organizations throughout the combined banks' footprint to ensure that our efforts make a meaningful difference and help to build thriving neighborhoods."
"After five years of working with our members and partners to ensure that the bank meets the housing and community development needs of California communities, CRC and our members are pleased to reach this historic agreement with CIT. We welcome CIT's commitment to increase long term wealth building opportunities for California's low-income communities. With this commitment, CIT will have a new branch in a low income and neighborhood of color, develop and market affordable and safe loan and account products, and support economic development. We look forward to working with CIT to make these commitments a reality in the coming years," said Paulina Gonzalez-Brito, executive director of the CRC.
"The bank's leadership has shown their business savviness and commitment to low- and moderate-income borrowers and people of color by working with us and CRC to produce this agreement that will be a benefit for both the bank and the community," said Jesse Van Tol, CEO of NCRC. "We look forward to furthering our work with the bank as it implements the plan."
In August, CIT announced it had entered into an agreement for its Pasadena-based bank CIT Bank, N.A. to acquire Mutual of Omaha Bank. CIT Bank has 64 retail bank branches in Southern California that operate under the OneWest Bank brand, and Mutual of Omaha Bank has 26 retail bank branches across several states. Upon completion of the transaction, CIT would have 90 branches across nine states.
CIT is a leading national bank focused on empowering businesses and personal savers with the financial agility to navigate their goals. CIT Group Inc. (NYSE: CIT) is a financial holding company with over a century of experience, approximately $50 billion in assets as of Sept. 30, 2019, and operates a principal bank subsidiary, CIT Bank, N.A. (Member FDIC, Equal Housing Lender). The company's commercial banking segment includes commercial financing, real estate financing, equipment financing, factoring and railcar financing. CIT's consumer banking segment includes its national online bank, CIT Bank, and a Southern California branch bank, OneWest Bank, a division of CIT Bank, N.A. Discover more at cit.com/about.
About the California Reinvestment Coalition
The California Reinvestment Coalition builds an inclusive and fair economy that meets the needs of communities of color and low-income communities by ensuring that banks and other corporations invest and conduct business in our communities in a just and equitable manner.
NCRC and its grassroots member organizations create opportunities for people to build wealth. We work with community leaders, policymakers and financial institutions to champion fairness in banking, housing and business. NCRC was formed in 1990 by national, regional and local organizations to increase the flow of private capital into traditionally underserved communities. NCRC has grown into an association of more than 600 community-based organizations in 42 states that promote access to basic banking services, affordable housing, entrepreneurship, job creation and vibrant communities for America's working families. Learn more at: www.ncrc.org
SOURCE CIT Group Inc.