Truist receives "Outstanding" Community Reinvestment Act rating

Rhea-AI Summary

Truist Financial Corporation has received an "Outstanding" rating from the Federal Deposit Insurance Corporation for its Community Reinvestment Act performance during the examination from Jan. 1, 2017, to Dec. 31, 2019. The company originated nearly 40,000 mortgage loans worth $9.6 billion, funded over 26,600 affordable housing units, and issued 1,773 loans totaling $6.3 billion. Truist aims to lend or invest $60 billion to low- and moderate-income communities through its Community Benefits Plan, achieving significant targets in both mortgage lending and philanthropic efforts.

Positive

• Achieved an "Outstanding" CRA rating from the FDIC.
• Originated nearly 40,000 mortgage loans totaling $9.6 billion.
• Created or rehabilitated over 26,600 affordable housing units.
• Issued 1,773 loans totaling $6.3 billion in community development lending.
• Provided $1.8 billion in CRA-qualified investments and philanthropic giving.
• Exceeded targets in the Community Benefits Plan, achieving 110% mortgage lending and 328% philanthropic goals.

Negative

• None.

CHARLOTTE, N.C., April 6, 2021 /PRNewswire/ -- Truist received the highest possible overall rating of "Outstanding" from the Federal Deposit Insurance Corporation for its most recent Community Reinvestment Act (CRA) examination period.   

"Truist's community development lending provides capital that impacts community and socioeconomic needs," said Chairman and Chief Executive Officer Kelly S. King. "Since our previous evaluation, we've identified and responded to community needs by financing essential infrastructure, community health care, affordable housing, disaster recovery, and revitalization and stabilization efforts. We're committed to doing our part to create equitable and thriving communities."

During the examination period of Jan. 1, 2017, to Dec. 31, 2019, Truist:

• Originated nearly 40,000 mortgage loans totaling $9.6 billion to support flexible or innovative product offerings to first-time or low- or moderate-income (LMI) homebuyers.
• Provided funding to create or rehabilitate more than 26,600 affordable housing units, recognizing affordable housing is a crucial community need throughout its markets.
• Established itself as a leader in community development lending, issuing 1,773 loans totaling $6.3 billion.
• Provided $1.8 billion in CRA-qualified investments and philanthropic giving to inspire and build better lives and communities.

Looking ahead, the company's Community Benefits Plan continues to deliver on its 2019 commitment to lend or invest $60 billion to LMI borrowers and in LMI and minority communities from 2020 to 2022. Truist achieved 110% of mortgage lending and 328% of philanthropic targets for the Community Benefits Plan year-end 2020 goal. 

The plan is a concrete example of Truist's commitment to supporting investment in heritage BB&T and SunTrust communities after completing the merger. The $60 billion three-year commitment includes:

• $31 billion for home purchase mortgage loans to LMI borrowers, LMI geographies, minority borrowers and/or majority-minority geographies.
• $7.8 billion for lending to small businesses and to support the growth of businesses with revenues less than $1 million.
• $17.2 billion in community development lending to support affordable housing development and small business growth lending to nonprofits that support the LMI community.
• $3.6 billion in CRA-qualified investments and philanthropy of which $120 million will be designated for CRA-qualified philanthropic giving.

Additionally, Truist plans to further the legacy institutions' commitment to underserved neighborhoods by seeking to open at least 15 new branches in LMI and/or majority-minority communities across its markets.

The CRA encourages banks to help meet the credit needs of communities in which they operate, including low- and moderate-income neighborhoods, consistent with safe and sound banking operations.

About Truist
Truist Financial Corporation (NYSE: TFC) is a purpose-driven financial services company committed to inspiring and building better lives and communities. Formed by the historic merger of equals of BB&T and SunTrust, Truist has leading market share in many high-growth markets in the country. The company offers a wide range of services including retail, small business and commercial banking; asset management; capital markets; commercial real estate; corporate and institutional banking; insurance; mortgage; payments; specialized lending; and wealth management. Headquartered in Charlotte, North Carolina, Truist is the sixth-largest commercial bank in the U.S. with total assets of $509 billion as of December 31, 2020. Truist Bank, Member FDIC. Learn more at Truist.com.

Contact: 
Audria Belton
media@truist.com

View original content:http://www.prnewswire.com/news-releases/truist-receives-outstanding-community-reinvestment-act-rating-301262296.html

SOURCE Truist Financial Corporation

FAQ

What does Truist's outstanding CRA rating indicate about its performance?

Truist's outstanding CRA rating indicates exceptional performance in community development lending and commitment to socioeconomic needs.

How much has Truist invested in affordable housing?

Truist has invested in creating or rehabilitating over 26,600 affordable housing units.

What is Truist's Community Benefits Plan commitment?

Truist's Community Benefits Plan commits to lending or investing $60 billion to low- and moderate-income communities from 2020 to 2022.

How many mortgage loans did Truist originate during the CRA examination period?

During the CRA examination period, Truist originated nearly 40,000 mortgage loans totaling $9.6 billion.

What percentage of its Community Benefits Plan targets did Truist achieve by 2020?

Truist achieved 110% of mortgage lending and 328% of philanthropic targets for its Community Benefits Plan by year-end 2020.