U.S. Bancorp (NYSE:USB) has unveiled a $100B Community Benefits Plan that focuses on supporting equitable access to capital for low- and moderate-income communities and communities of color, the bank said Monday.
The bank developed the program in coordination with the National Community Reinvestment Coalition and the California Reinvestment Coalition as part of U.S. Bank's (USB) planned acquisition of MUFG Union Bank from Mitsubishi UFJ Financial Group (MUFG). It takes the U.S. Bank Access Commitment efforts and integrates existing community impact efforts from MUFG Union Bank. Most of the commitments, 60% of the total, will support efforts in California, the state most affected by the acquisition.
“Banks are the economic engines of our communities. As such, we can make meaningful and significant impacts in supporting the ability of low- and moderate-income ("LMI") communities and communities of color to access capital and build wealth," said U.S. Bank (USB) Chairman, President, and CEO Andy Cecere.
Commitments in the CBP are subject to the completion of full systems and staffing conversions to a unified bank platform, it added.
Before reaching a decision on closing any branch in an LMI area, the bank will analyze demographics of the neighborhood, consider community input, and consider alternatives to closure as well as alternative delivery options to minimize the impact of the closure, the company said.
The CBP will focus on basic components of community and economic development, including access to homeownership; small business access to capital and technical assistance; community development lending and investment, supplier diversity; and philanthropy and community service.