TD Bank commits $20B to 3-year Community Impact Plan

Originally published by NJBIZ January 26, 2024.

On Jan. 24, TD Bank unveiled a new, three-year, $20 billion Community Impact Plan to support lending, philanthropy and banking access in diverse and underserved communities across 15 states and Washington, D.C.

Developed with the National Community Reinvestment Coalition, the plan is a smaller-scale outline than the five-year, $50 billion vision TD Bank announced in February 2023. That version was contingent on a $13.4 billion planned merger with First Horizon Corp., which was called off in May 2023.

A representative for TD Bank – which has its U.S. headquarters in Cherry Hill – told NJBIZ that the financial institution still “felt strongly that we wanted to uphold our community commitment and we were thoughtful in crafting the Community Impact Plan so that our impact will be of a similar scale, just in a smaller geography and in three years.”

In a statement, TD President and CEO Leo Salom said, “One of our primary objectives as a purpose-driven bank is to help power economic opportunities that help low- and moderate-income (LMI), diverse and underserved communities achieve their financial goals. Our Community Impact Plan is designed to achieve that vital role as we build on TD’s long-term community focus.”

NCRC President and CEO Jesse Van Tol applauded TD’s “continued commitment to the values and principles that have guided our conversations to date and look forward to more strong collaboration in future.”

The TD representative told NJBIZ that Garden State “nonprofits, businesses and homebuyers could all be impacted by the plan, though there aren’t specific targets for states.”

Highlights of the new Community Impact Plan include:

• $10 billion in residential loans and liquidity to the residential lending market
  TD said this includes first-time homebuyer and home equity loans for LMI and minority borrowers, and in LMI and majority-minority census tracts, including the Philadelphia area. 

• An estimated $2.8 billion in credit to small businesses
  Qualified businesses will have less than $1 million in annual revenue, with a focus on minority- and women-owned businesses and those in LMI areas. TD Bank said it will create a lending Special Purpose Credit Program for small businesses that are registered Minority Business, women-owned or veteran-owned enterprises.

• $7.5 billion in community development loans and other investments 
  This funding will support economic development activities and affordable housing projects, such as special rental housing for veterans or LGBTQ seniors.

• $70 million in Community Reinvestment Act-related philanthropy
  This will be in addition to its annual giving, with 75% of all funds supporting diversely led organizations. 

• 15 new locations
  TD Bank said it will seek to open the new stores in LMI and/or majority-minority markets, subject to any regulatory approvals. These sites will include dedicated space that can be used for financial education workshops or nonprofit meetings. 

Additional initiatives of the Community Impact Plan include continued support of Community Development Financial Institutions (CDFIs)/Minority Depository Institutions (MDIs) through nearly $320 million in lending, investments and grants; increase spending with certified diverse suppliers by 25%; reaching 54,000 participants through TD-led financial literacy and fraud prevention programs; continued support of Historically Black Colleges and Universities (HBCUs); and establishing a Community Advisory Board to guide the plan’s strategy.

“Every bank should set ambitious goals for supporting underserved communities. And we’re pleased to provide strategic insights to advance this strategy. Those efforts can only be effective if they are informed by the input of community leaders like NCRC and our members. TD listened and then delivered this new Community Impact Plan to help ensure its investments and programs are aligned to community needs,” Van Tol said.

From left: Staci Berger, president and CEO, the Housing & Community Development Network of New Jersey; Robert Curley, regional president, Pennsylvania/New Jersey Metro, TD Bank; and Leila Amirhamzeh, director of community reinvestment, New Jersey Citizen Action, at the press conference announcing the organizations’ $2 billion Community Reinvestment Act Agreement. – MATTHEW FAZELPOOR

In August 2023, TD Bank, New Jersey Citizen Action and the Housing & Community Development Network of New Jersey announced a three-year Community Reinvestment Act Agreement, where the financial institution committed to invest more than $2 billion in affordable mortgage, community development, small business lending, and affordable consumer products and services across the state, particularly in underserved communities.

“As a lifelong resident of New Jersey, I’m especially proud of what we’re accomplishing today,” Robert Curley, regional president of Pennsylvania/New Jersey Metro for TD Bank, said at that time. “At TD Bank, we believe we have a responsibility to give back to the communities we serve and to make sure that when we give back, our efforts create a real impact for all communities.”