After nine months of back and forth, NCRC board members Elisabeth Risch of St. Louis Equal Housing and Community Reinvestment Alliance (SLEHCRA) and Woodstock President Dory Rand successfully negotiated a three-year, $3 billion CRA agreement with The PrivateBank and CIBC (a Canadian bank) in connection with CIBC’s application to the Chicago Fed to acquire PrivateBank. Shareholders voted to accept CIBC’s offer, and the Federal Reserve approved the acquisition, conditioned upon the commitments the bank made in its application. The banks submitted the agreement to the Fed and posted it on the bank’s website.

Some highlights of the agreement, called a Community Development Plan, include increased commitments in the Chicago and St. Louis areas to:

  • Establish two new branches in underserved communities in its Chicago CRA assessment area, including at least one located in a low-income census tract;
  • Originate an aggregate $900 million of small business loans;
  • Originate an aggregate $1 billion in residential mortgage loans throughout its CRA assessment areas, including $200 million in loans to underserved borrowers and communities;
  • Make at least $100 million in aggregate CRA-qualified investments;
  • Originate an aggregate $1 billion in Community Development loans throughout its CRA assessment areas; and
  • Contribute an aggregate $10 million in charitable donations, including at least $5.5 million in CRA-qualified charitable contributions, to its community partners.

As part of the Plan, The PrivateBank will establish a Community Leaders Council comprised of representatives of its community partners, including the Woodstock Institute and SLEHCRA, to meet semi-annually to discuss community needs, evaluate progress on the plans and goals and report on future community development plans.  The Community Leaders Council also will provide a forum for The PrivateBank to receive direct input and insights from community partners on opportunities to better meet the needs of its communities within the context of the Plan.

CRA—use or lose it!