BMO Harris Bank (BMO) Announces More Than $40 Billion Community Benefits Plan
BMO has announced a Community Benefits Plan (CBP) with a commitment of over $40 billion to support local communities, particularly in California where $16 billion is allocated. This five-year plan builds on the BMO EMpower initiative and focuses on increasing home ownership and aiding small businesses, especially in low- to moderate-income neighborhoods. Key components include $7.5 billion for home mortgage lending and $16.5 billion for small business support. The strategy emphasizes equity and aims to address barriers faced by minority communities.
- Over $40 billion commitment to community support, including $16 billion for California.
- $7.5 billion for home mortgage lending, targeting communities of color.
- $16.5 billion in small business lending, focusing on minority-owned businesses.
- Partnership with over 85 community groups to shape the plan.
- The plan is subject to regulatory approvals and customary closing conditions.
- Underscores BMO's commitment to helping communities create sustainable change
- Addresses key barriers faced by minority businesses, communities, and families
- Builds on the progress of BMO EMpower, a
$5 billion commitment to an inclusive economic recovery launched in 2020
CHICAGO, Nov. 28, 2022 /PRNewswire/ - BMO today announced a Community Benefits Plan (CBP) that outlines a more than
The five-year plan was developed with input from over 85 community groups from across the country through listening sessions facilitated by the National Community Reinvestment Coalition and the California Reinvestment Coalition, the Alliance to Close the Racial Wealth Gap, a public meeting and written comments submitted to regulators. The plan reinforces BMO's focus on increasing home ownership and supporting the growth of small businesses in low- to moderate-income (LMI) neighborhoods and communities of color. It also strengthens these communities through investments and lending to support affordable housing and economic development as well as philanthropic giving.
"We want to thank all of the community groups that invested their time to meet with us and provide feedback that has helped shape this plan," said David Casper, U.S. CEO, BMO Financial Group. "We are committed to ongoing community engagement to realize the full potential of this plan."
The CBP continues and expands on the progress by both BMO and Bank of the West to promote economic growth and provide greater access to capital for all. The result is a bold plan that will increase investment and expand BMO's strategic partnerships in underserved communities. It's also an expansion of, and is incremental to, the BMO EMpower initiative, a
The more than
- Advancing Home Ownership:
$7.5 billion in home mortgage lending, including$5.1 billion for the State of California, to support LMI and minority homeowners. Key commitments and programs include: - More than 75 percent of home mortgage lending under the plan to people and communities of color
- The launch of a new Welcome Home Grant program in San Francisco and San Jose with over
$125 million in home mortgage lending - The creation of a
$3 million Native Community Housing Fund to support affordable housing on tribal trust lands - Growing Small Businesses:
$16.5 billion in small business lending, including$5.3 billion for the State of California, that will help jumpstart the growth of small businesses in underserved communities across BMO's footprint. Key commitments include: - Close to 60 percent of small business lending targeted to minority communities
- A
$200 million commitment to expand BMO's small business programs that support women, Black and Latinx-owned businesses, and a new program for Native American-owned businesses - Strengthening Communities:
$17.5 billion , including$6.1 billion for the State of California, in community development loans, investments, and other support for underserved communities to create greater opportunity for success. This commitment: - Includes
$12 billion in lending for affordable housing and economic development and$3 billion in investments in low-income housing and new market tax credits, CDFIs, CRA-qualified private equity and other loan funds - Creating a More Equitable Society: Over 50 percent of the plan is expected to benefit communities and borrowers of color to help close the racial wealth gap and advance a more inclusive society. Key commitments include:
- More than
$15 billion in small business and home mortgage lending to minority borrowers or in minority communities $325 million in special purpose credit programs for mortgage and small business lending designed for women and borrowers of color, including BMO's newly launched small business program for Native Americans
"We have a duty to continue addressing the barriers that disproportionately affect people of color and remain committed to creating more opportunities that achieve progress for all," Casper added. "Our Community Benefits Plan reflects our promise to ensure we have a strong combination of financial and community-driven investments that will create a more equitable society anywhere we do business. Eliminating barriers to inclusion while building a thriving economy and sustainable future is at the core of our Purpose to Boldly Grow the Good in business and life."
"BMO's commitment to work together with us and leading community groups was vital to creating a plan that drives significant impact to the communities served," said Jesse Van Tol, President and CEO, NCRC. "This community benefits plan is a substantial move in the right direction by addressing racial equity and access to capital in specific and tangible ways that will create more economic inclusion in the markets where BMO operates."
"We commend BMO leadership for its collaboration with the California Reinvestment Coalition (CRC) and our members over the last several months to put together an agreement that reflects the needs of California communities," said Paulina Gonzalez-Brito, CRC CEO. "Mergers must provide a clear public benefit. This agreement accomplishes this through increased investment and services in LMI communities and communities of color and increased lending to BIPOC-owned small businesses. We look forward to working with BMO as it implements this agreement over the next five years."
After closing, the combined organization will provide greater convenience, more product choice and increased community engagement through the following:
- Increased Convenience
- Over 1,000 branches and fee-free access to over 42,000 ATMs
- Five new financial services (FS) offices in underserved areas
- Maintaining Bank of the West branches, with no planned closures related to the transaction
- A strong, user-friendly digital platform
- Broader Array of Goods and Services for New Customers – enabling increased access to banking and real financial progress
- Retail products specifically designed to address the needs of LMI customers
- Reduced fees on many accounts
- Robust financial education resources
- Bank-funded down payment mortgage assistance programs
- Enhanced Community Engagement
- Community Advisory Council
- Annual meetings with key partners in new markets and neighborhoods
- Committed philanthropic funds for local organizations supporting affordable homeownership and small businesses
- Committed to new partnerships in our expanded footprint
With a focus on collaboration, learning, and innovation, BMO will continue to work with community partners to achieve sustainable solutions and shape the future together.
Serving customers for 200 years and counting, Bank of Montreal is a highly diversified financial services provider - the 8th largest bank, by assets, in North America. With total assets of
Certain statements in this press release are forward-looking statements. All such statements are made pursuant to the "safe harbor" provisions of, and are intended to be forward-looking statements under, the United States Private Securities Litigation Reform Act of 1995 and any applicable Canadian securities legislation. Forward-looking statements in this press release may include, but are not limited to, statements with respect to the expected closing of the Bank of the West acquisition, plans for the combined operations of BMO and Bank of the West, our strategies or future actions, our targets, commitments, plans, initiatives, activities and anticipated benefits with respect to the Community Benefits Plan, the results of, or outlook for, our operations, and include statements made by our management. Forward-looking statements are typically identified by words such as "will", "expect", "anticipate", "project", "plan", "commit", "target", "may", "forecast" and "could" or negative or grammatical variations thereof.
By their nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties, both general and specific in nature. There is significant risk that predictions, forecasts, conclusions or projections will not prove to be accurate, that our assumptions may not be correct, and that actual results may differ materially from such predictions, forecasts, conclusions or projections. We caution readers of this press release not to place undue reliance on our forward-looking statements, as a number of factors – many of which are beyond our control and the effects of which can be difficult to predict – could cause actual future results, benefits, conditions, actions or events to differ materially from the targets, expectations, estimates or intentions expressed in the forward-looking statements.
The future outcomes that relate to forward-looking statements may be influenced by many factors, including, but not limited to: the possibility that the Bank of the West acquisition does not close when expected or at all because required regulatory approvals and other conditions to closing are not received or satisfied on a timely basis or at all or are received subject to adverse conditions or requirements; the level of activity and expected or anticipated benefits under the Community Benefits Plan are not realized in the time frame anticipated or at all as a result of changes in general economic and market conditions, interest and exchange rates, monetary policy, laws and regulations (including changes to capital requirements) and their enforcement, and the degree of competition in the geographic and business areas in which BMO and Bank of the West currently operate; the ability to promptly and effectively integrate Bank of the West; and those other factors discussed in the Risks That May Affect Future Results section, and the sections related to credit and counterparty, market, insurance, liquidity and funding, operational non-financial, legal and regulatory, strategic, environmental and social, and reputation risk, in the Enterprise-Wide Risk Management section of the BMO 2021 Annual Report, as updated by the BMO Third Quarter 2022 Report to Shareholders, all of which outline certain key factors and risks that may affect our future results and our ability to anticipate and effectively manage risks arising from all of the foregoing factors.
We caution that the foregoing list is not exhaustive of all possible factors. Other factors and risks could adversely affect our results. Readers and others should carefully consider these factors and risks, as well as other uncertainties and potential events, and the inherent uncertainty of forward-looking statements. We do not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by the organization or on its behalf, except as required by law. The forward-looking information contained in this press release is presented for the purpose of assisting readers in understanding the anticipated benefits of the Community Benefits Plan and may not be appropriate for other purposes.
Media Contacts:
Scott Doll, Chicago – scott.doll@bmo.com
Lucas Seiler, Chicago – lucas.seiler@bmo.com
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SOURCE BMO Financial Group
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