Truist Foundation partners with Center for Disaster Philanthropy to provide over $20M in disaster recovery grants in Western North Carolina

Rhea-AI Summary

Truist Foundation has announced a partnership with the Center for Disaster Philanthropy to provide over $20 million in disaster recovery grants for Western North Carolina following Hurricane Helene's devastating impact in September 2024. The hurricane caused damage to over 250,000 homes across 39 counties, with economic impacts reaching $53 billion.

The initiative is part of Truist Cares for Western North Carolina, a three-year, $725 million commitment focusing on housing and small business recovery. The program includes new loan capital, impact capital from Truist Community Capital, and philanthropic giving. The Foundation will also provide grants to The Community Foundation of Western North Carolina's Emergency and Disaster Response Fund and the American Red Cross for long-term recovery programs.

Positive

• Commitment of $725 million over three years for disaster recovery
• Immediate allocation of $20 million in recovery grants
• Strategic partnership with established disaster relief organizations

Negative

• Significant exposure to disaster-affected regions with $53 billion in economic damage
• Long-term financial commitment may impact available resources for other initiatives

Insights

Financial Impact Analyst

The $20M disaster recovery grant commitment, while commendable from a social responsibility perspective, represents a minimal financial impact relative to Truist's $523B asset base. However, the broader $725M Truist Cares initiative warrants closer attention. This three-year commitment, including loan capital and impact investments, could generate meaningful returns through:

• Enhanced brand equity and customer loyalty in the affected 39-county region
• Potential interest income from new loan originations to small businesses and municipalities
• Risk mitigation by supporting the recovery of existing loan portfolios in the disaster-affected areas

The $53B economic impact from Hurricane Helene, affecting 250,000 homes, creates both risks and opportunities. The bank's strategic positioning through this initiative could strengthen its market presence in Western North Carolina while protecting its existing asset quality. The program's focus on long-term resiliency rather than just immediate relief suggests a well-thought-out approach to maintaining sustainable business relationships in the region.

Community Banking Specialist

This initiative demonstrates sophisticated community banking strategy. By channeling support through established partners like CDP and local community foundations, Truist is leveraging existing infrastructure to maximize impact efficiency. The three-pronged approach - combining lending, impact capital and philanthropic giving - reflects advanced understanding of disaster recovery economics:

• Small business lending maintains commercial client relationships and protects existing loan portfolios
• Housing support helps preserve mortgage book quality
• Infrastructure investment protects the broader economic ecosystem where Truist operates

The multi-year commitment structure is particularly noteworthy, as it addresses both immediate recovery needs and long-term community resilience. This approach typically yields stronger client retention rates and can create natural business expansion opportunities as communities rebuild. However, the immediate P&L impact will be minimal, with benefits materializing over the medium to long term through relationship deepening and market share growth.

Grants will support post-Hurricane Helene housing and small business recovery, long-term resiliency

CHARLOTTE, N.C., Jan. 15, 2025 /PRNewswire/ -- Truist Foundation today announced it will partner with Center for Disaster Philanthropy to provide over $20 million in disaster recovery grants in Western North Carolina as part of the Truist Cares for Western North Carolina initiative. Flooding in the aftermath of Hurricane Helene, which hit in September 2024, destroyed or damaged more than 250,000 homes across 39 counties in Western North Carolina with economic impacts reaching $53 billion. The grants will provide resources to help support and sustain critical housing and small business recovery and long-term resiliency in the region.

"Truist Foundation is dedicated to helping communities after disasters strike, and this collaboration represents a significant step forward in our effort to help Western North Carolina recover from the impacts of Hurricane Helene," said Lynette Bell, president of Truist Foundation. "By joining forces with Center for Disaster Philanthropy and other trusted partners, we can leverage our collective resources and expertise to address critical areas of need, including supporting families with rebuilding homes and entrepreneurs with restoring their businesses. Together, we are committed to making community-driven grants to create an even stronger, more resilient region."

Through the Truist Foundation Western North Carolina Recovery and Resiliency Fund, CDP will provide grants over the next several years to address medium- and long-term needs to help strengthen the region's housing and small businesses. Grantmaking decisions will be guided by CDP's assessment of damages as well as community capacity and unmet needs to support the area's recovery. Nonprofit organizations will be invited to apply for funding based on the results of CDP's assessments. To learn more or to submit a nonprofit organization interest form, click here.

"We are incredibly grateful to Truist Foundation for its commitment to the recovery needs of communities devastated by Hurricane Helene," said President and CEO of the Center for Disaster Philanthropy Patricia McIlreavy. "This significant investment in the people of Western North Carolina allows us to strategically support the long-term needs of the area through comprehensive solutions that address the many aspects of recovery so that survivors can rebuild stronger. In taking this approach, we also ensure that communities are better positioned to withstand the next disaster."

As part of the Truist Cares for Western North Carolina initiative, Truist Foundation will also provide significant grants to The Community Foundation of Western North Carolina for its Emergency and Disaster Response Fund, which will help nonprofits mitigate impacts of Hurricane Helene, and the American Red Cross for its long-term recovery program, which helps families and communities continue to rebuild in the months and years after disasters, including hurricanes. 

Truist Cares for Western North Carolina is a three-year, $725 million commitment to support critical small business, housing and infrastructure needs in Western North Carolina as communities impacted by Hurricane Helene recover and rebuild. The commitment includes new, dedicated loan capital for local small businesses, residents and municipalities from Truist Bank, impact capital from Truist Community Capital, philanthropic giving from Truist Foundation and additional on-the-ground humanitarian support from Truist teammates to help establish long-term resiliency in this devastated region. For more information on this initiative, visit Truist.com/TruistCares.

About Truist Foundation
Truist Foundation is committed to Truist Financial Corporation's (NYSE: TFC) purpose to inspire and build better lives and communities. The foundation, an endowed private foundation established in 2020 whose operating budget is independent of Truist Financial Corporation, makes strategic investments in a wide variety of nonprofit organizations centered around two focus areas: building career pathways to economic mobility and strengthening small businesses to ensure all communities have an equal opportunity to thrive. Embodying these focus areas are the foundation's leading initiatives — the Inspire Awards and Where It Starts. Learn more at Truist.com/Foundation.

About Truist
Truist Financial Corporation is a purpose-driven financial services company committed to inspiring and building better lives and communities. As a leading U.S. commercial bank, Truist has leading market share in many of the high-growth markets across the country. Truist offers a wide range of products and services through our wholesale and consumer businesses, including consumer and small business banking, commercial banking, corporate and investment banking, wealth management, payments and specialized lending businesses. Headquartered in Charlotte, North Carolina, Truist is a top-10 commercial bank with total assets of $523 billion as of Sept. 30, 2024. Truist Bank, Member FDIC. Learn more at Truist.com

View original content:https://www.prnewswire.com/news-releases/truist-foundation-partners-with-center-for-disaster-philanthropy-to-provide-over-20m-in-disaster-recovery-grants-in-western-north-carolina-302351821.html

SOURCE Truist Foundation

FAQ

How much is Truist Foundation (TFC) investing in Hurricane Helene recovery efforts?

Truist Foundation is providing over $20 million in disaster recovery grants, as part of a larger $725 million three-year commitment for Western North Carolina recovery efforts.

What is the economic impact of Hurricane Helene in Western North Carolina for TFC?

Hurricane Helene caused $53 billion in economic impacts and damaged or destroyed over 250,000 homes across 39 counties in Western North Carolina.

How will TFC distribute the Hurricane Helene recovery grants?

The grants will be distributed through partnerships with the Center for Disaster Philanthropy, The Community Foundation of Western North Carolina, and the American Red Cross.

What areas will TFC's disaster recovery grants focus on?

The grants will focus on housing and small business recovery, providing resources for rebuilding homes and restoring businesses, along with supporting long-term community resiliency.

How long is TFC's Western North Carolina recovery commitment?

The Truist Cares for Western North Carolina initiative is a three-year commitment running through 2027.