BBVA Compass pledges $11 billion to community development

November 28, 2014

 

BBVA Compass made a strong pledge of support for low- and moderate income individuals and neighborhoods, announcing a five-year, $11 billion community development program as part of its promise to boost economic development across communities in its footprint.

Over the next five years, the bank will originate $2.1 billion in mortgage loans to low- and moderate-income (LMI) homebuyers and in LMI neighborhoods, $6.2 billion for small business lending, $1.8 billion for community development lending, and make $900 million in community development investments. The bank also plans to unveil new delivery channels, products and services for LMI individuals in 2015.

"BBVA Compass is a principled bank that is committed to building a better future for absolutely everyone in our communities — no exceptions,” said BBVA Compass Chairman and CEO Manolo Sánchez. “It’s good business sense, it’s responsible banking and it helps us connect in a meaningful way to the places where we put down stakes. We are committed to doing our part in a way that's as big as our vision for banking in the 21st century."

 

Related links

BBVA pledges more to the less affluent (Houston Chronicle)

BBVA Compass to roll out $11 billion community development program (AL.com)

BBVA Compass launching $11 billion community investment program (San Antonio Business Journal)

BBVA pledges $11B to community development (Birmingham Business Journal)

BBVA Directing $11B to Community Development (American Banker)

BBVA Compass ups loan ante (Birmingham Business Journal)

Groups respond to BBVA Compass’ $11B community development pledge (Birmingham Business Journal)

In an interview with AL.com reporter Kelly Poe, BBVA Compass Director of Corporate Responsibility and Reputation Reymundo Ocañas talked about the bank’s plans to present new delivery channels, products and services for low- to moderate-income individuals in 2015, including additional ATMs in low- to moderate-income areas and low-to no-cost checking accounts for qualified customers.

“What it’s going to mean is a really strong set of outcomes for low- to moderate- income neighborhoods and additional access and support for low- to moderate-income families,” he told Poe.

BBVA Compass vowed to focus on initiatives that support low- and moderate-income neighborhoods after its recent disclosure regarding its Community Reinvestment Act exam, which measures how well financial institutions are meeting the credit needs of the communities they serve. The bank disclosed in a Form 10-Q filing with the SEC in August that it expects its rating will limit its ability to make certain acquisitions and open new branches.

For more details on the bank’s five-year $11 billion commitment, click here to read the press release.


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