TD Bank in Toronto has pledged $50 billion to underserved communities as part of a community benefits plan tied to its pending purchase of First Horizon in Memphis, Tenn.
TD Bank said in a press release that it worked with the National Community Reinvestment Coalition to create the five-year plan.
“Banks have an important role in providing economic opportunity and supporting changes that help low- and moderate-income, diverse and underserved communities achieve their financial goals,” Leo Salom, TD Bank’s president and CEO, said in the release. “This is rooted in the belief that our business only does well when the people we serve are flourishing.”
TD Bank pledged to open at least 25 new branches and 25 ATMs in either low- and moderate-income communities or majority-minority markets. There will be no merger-related First Horizon branch closures.
TD Bank also pledged $21 billion for mortgages for borrowers in underserved markets. The bank agreed to hire more diverse mortgage loan officers and provide affordable retail products and services.
The plan also includes about $7.8 billion of small business loans in underserved communities, including rural markets. TD Bank also agreed to provide $17.5 billion in community development loans and other investments to support economic development and affordable housing projects.
The agreement also includes $200 million in Community Reinvestment Act-related philanthropy through the TD Office of Charitable and Community Giving. The among includes $40 million for the TD New Horizon Foundation, which focuses on the Memphis market.