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Banks to invest $3.95 billion in underserved communities

Staff Report //April 11, 2018//

Banks to invest $3.95 billion in underserved communities

Staff Report //April 11, 2018//

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First Tennessee Bank and Capital Bank, subsidiaries of First Horizon National Corp., are investing $3.95 billion as part of a five-year plan to increase access to financial resources in low- to moderate-income communities in eight states including South Carolina.

The plan will focus on increasing home ownership through $515 million in home purchase and rehabilitation mortgage lending and building small businesses through $1.9 billion in lending to organizations with less than $1 million in annual revenue. Other priorities include $1.5 billion in community development funding and $40 million in community grants and philanthropic spending.

The banks will also devote 3 to 6% of supplier spending to minority-owned businesses and earmark a portion of marketing budgets to minority-owned firms.

“Our company is dedicated to supporting the success of underserved individuals and strengthening communities across our footprint,” Bryan Jordan, chairman and CEO of First Horizon National Corp., said in a news release. “We believe our new investment will take our long-standing community commitment to the next level by spurring growth and sustainable economic development.”

The community benefits plan, an agreement with the National Community Reinvestment Coalition, also targets communities in North Carolina, Florida, Georgia, Mississippi, Tennessee, Texas and Virginia. It will run from 2018 to 2022.

“First Tennessee Bank and Capital Bank have been actively engaged in meaningful conversations with our members to ensure that they are well-positioned to meet the needs of underserved communities,” NCRC president and CEO John Taylor said. “We very much appreciate the strong collaboration demonstrated by the executive leadership of First Tennessee and Capital Bank.”

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