6/16/21
Crain’s Detroit Business
By Nick Manes
- Detroit commitment part of $40 billion initiative
- Community Plan to focus on business and personal lending, racial social equity
- Huntington completed TCF Bank acquisition last week
Fresh off its acquisition of TCF Financial Corp., Huntington Bank on Wednesday announced a lending pledge for minority businesses and individuals that includes a $1 billion commitment to Detroit and Wayne County.
The $1 billion in metro Detroit and $11 billion for Michigan as a whole is part of a larger $40 billion effort by the Detroit- and Columbus, Ohio-based Huntington to “help improve financial opportunities for the consumers, businesses and communities it serves, with a focus on affordable housing, small business loans and increased capital to historically disadvantaged and low- to moderate-income communities,” according to a news release.
“We recognize the crucial need for change, and the unique position our bank is in to strengthen individuals, businesses and communities,” Huntington Bank Chairman Gary Torgow, who was previously chairman of TCF, said in the release. “We are proud that our combined bank is leaning in to help business owners, new homeowners and others create wealth and pursue their dreams.”
The Community Plan announced by Huntington, now the 25th largest bank in the country with more than $170 billion in assets, has four key pillars, according to the release:
- Racial and Social Equity: As part of the $40 billion commitment, the bank will allocate $16 billion of the Community Plan to minority borrowers and communities to advance meaningful and systemic change.
- Consumer and Home Lending: Huntington will adopt an affordable housing and consumer lending goal of $24 billion, of which $12 billion is committed to meeting the needs of minority and under-resourced populations.
- Small Business: Huntington will expand its Small Business lending programs into its new footprint and commit $10 billion over five years, $2 billion of which will focus on lending to minority-owned businesses or businesses operating in majority-minority communities.
- Community Development Lending and Investing: The bank will commit $6.5 billion in loans and investments to enhance programs and services that foster equity in areas including but not limited to affordable housing, small business financing and community services that provide food security, financial empowerment and workforce development. Of the $6.5 billion, $2 billion will focus on minority initiatives in these areas. In addition, Huntington will continue its philanthropic giving and other support as part of the 2021 Community Plan.
“Huntington and TCF already have shown their dedication to Detroit by pledging $10 million to the Strategic Neighborhood Fund. So, we are especially proud that the new combined bank chose our city to make such an important announcement about its national Community Plan,” Detroit Mayor Mike Duggan said in the release. “Building Huntington’s co-headquarters in Detroit and furthering support of the region with another $1 billion pledge to the city and Wayne County is evidence of the bank’s deep-rooted commitment to our residents, businesses and communities.”
Prior to the TCF acquisition, which closed last week, Huntington in September announced a $5 billion lending initiative in Michigan.
“As a growing bank dedicated to supporting the people, businesses and communities throughout our expanded footprint, we recognize the responsibility we have to help improve economic opportunity for those we serve,” Steve Steinour, chairman, president and CEO of Huntington Bancorp. Inc., the holding company for the bank, said in the release.
“Our purpose of looking out for people guides us to be a catalyst for positive change and to ensure under-resourced consumers and businesses have the access to capital, affordable housing and other resources to achieve their goals and to pursue their dreams. Our recently completed merger with TCF Financial Corporation enables us to renew and strengthen our commitment to improving the financial stability and quality of life for people in our local communities.”
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