First Tennessee Bank, Capital Bank Commit Nearly $4 Billion For Access To Financial Resources

In Underserved Communities In Southeast

Tuesday, April 10, 2018

First Tennessee Bank and Capital Bank, members of the First Horizon National Corp. family of companies, Tuesday announced a five-year, $3.95 billion community benefit plan to increase access to financial resources within low- to moderate-income communities in Florida, Georgia, Mississippi, North Carolina, South Carolina, Tennessee, Texas, and Virginia. 

The plan includes mortgage and small business lending, community development lending and investments, philanthropy, and spending with minority-owned suppliers and marketing firms. It also includes innovative methods to increase the convenience and physical access to financial services in low- to moderate-income communities.   

“Our company is dedicated to supporting the success of underserved individuals and strengthening communities across our footprint,” said Bryan Jordan, chairman and CEO of First Horizon National Corp. “We believe our new $4 billion investment will take our longstanding community commitment to the next level by spurring growth and sustainable economic development.” 

The community benefits plan, which is an agreement with the National Community Reinvestment Coalition and its community-based members across the Southeast, will run from 2018-2022. 

“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,” said NCRC president and CEO John Taylor. “We very much appreciate the strong collaboration demonstrated by the executive leadership of First Tennessee and Capital Bank.” 

The plan includes the following priorities and targets: 

Increasing home ownership: Fund $515 million in home purchase and rehabilitation mortgage lending to low- to moderate-income individuals and communities and to people of color and communities.

Building small business: Fund $1.9 billion in small business lending to businesses in low- to moderate-income areas and businesses with less than $1 million in gross annual revenue.

Fostering community development: Fund $1.5 billion in community development and multi-family lending and investments.

Strengthening communities: Fund $40 million in grants and philanthropy, including supporting workforce development, small business, housing counseling, Community Development Corporations, Community Development Financial Institutions, and funding financial literacy and education programs for youth, adults, and small business entrepreneurs. 

Supporting supplier diversity: Devote 3 to 6 percent of the bank’s supplier spending to minority-owned businesses.

Partnering with minority-owned marketing firms: Earmark a portion of the bank’s marketing budget to minority-owned firms.

Regional and national leaders applaud the agreement: 

“First Tennessee and Capital Bank in good faith have developed a community benefits plan that is meaningful and impactful," said Peter Skillern, executive director, Reinvestment Partners. "Reinvestment Partners looks forward to working with the bank as a leader in North Carolina."

“Considering the very significant needs of this region and the First Tennessee and Capital Bank markets, this agreement and the investments in it are a great down payment on meeting those needs,” Irvin Henderson, chairman, National Trust Community Investment Corporation. 

“HEED looks forward to working with First Tennessee on creating neighborhoods of choice and a just economy in their Mississippi markets,” Charles Harris, executive director, Housing Education & Economic Development. 

“The Memphis Housing Authority is excited to support the First Tennessee Community Benefit Plan," said Marcia Lewis, executive director, Memphis Housing Authority. "The populations we serve in Memphis are by definition low-income households who have not always had the ability to benefit from a true banking relationship. The Memphis Housing Authority feels this plan will provide them access to services that will build their self-sufficiency, independence from government assistance and improve their future.”

“SMASH is pleased to see that First Tennessee and Capital Bank have agreed to a CBA that will strengthen investment in low-income communities of color," said Adrian Madriz, project lead, SMASH Inc. "We look forward to working with them to make sure that this capital is used for equitable development, not gentrification."

“The Community Reinvestment Alliance of South Florida was very pleased to participate in this process with NCRC, First Tennessee and Capital Bank," said Cornell Crews, Jr., executive director, Community Reinvestment Alliance of South Florida. "We look forward to working together to continue improving our community.”

“I'm delighted about the commitments made by First Tennessee Bank and Capital Bank," said Glyndola Massenburg-Beasley, president Durham Regional Financial Center. "Incremental progress that addresses the divide between business community reinvestment and consumer needs is essential for the recovery of all economies. Durham Regional Financial Center looks forward to the social and economic benefits made available to our residents, businesses and minority institutions in Durham and surrounding counties.”

“Chattanooga Organized for Action is delighted to see these concrete steps and partnership agreed to by First Tennessee," said Michael Gilliland, Board chair, Chattanooga Organized for Action, Inc. "This is the first Community Benefits Agreement that applies to the Chattanooga area, and we hope it becomes a model of development and investment as our city grows. NCRC’s expertise has been invaluable, and they’ve helped grassroots organizations like ours learn how to be included in the process of community reinvestment.”

“First Tennessee Bank has been our staunch supporter for many years to provide financial dignity and empowerment to all people," said  John Hope Bryant, CEO and founder, Operation HOPE. "For example, through the bank’s partnership with Operation HOPE, it has set up HOPE Inside locations in bank branches, and senior executives have donated their time to work with us side-by-side. CEO Bryan Jordan has become a member of our executive board of directors, vice president Steve Swain is a member of our advisory board of directors, and senior vice president, David Fehrenbacher has joined our Midwestern board of directors. Now, with this nearly $4 billion commitment to helping the underserved, First Tennessee continues to pave the way for more people to achieve their financial goals.”


Tennessee Employment Surpasses Pre-Pandemic Levels

Tennessee Supreme Court Holds Education Savings Account Pilot Program Doesn't Violate Home Rule Amendment

Chattanooga Chamber Calendar Of Events May 23-27


Tennessee nonfarm employment has fully rebounded from the pandemic, surpassing pre-pandemic levels of employment with 45,500 more people holding jobs now than in February 2020. The Tennessee ... (click for more)

In an opinion released Wednesday, the Tennessee Supreme Court determined that, while two Tennessee county governments had standing to challenge the Education Savings Account Pilot Program (the ... (click for more)

May 25, Red Bank/Signal Mountain Council Meeting 8:30-9:30 a.m. Red Bank Community Center: 3653 Tom Weathers Dr. Our speaker this month will be Dan Reuter, Administrator of the Department ... (click for more)



Business

Tennessee Employment Surpasses Pre-Pandemic Levels

Tennessee nonfarm employment has fully rebounded from the pandemic, surpassing pre-pandemic levels of employment with 45,500 more people holding jobs now than in February 2020. The Tennessee Quarterly Business and Economic Indicators report issued by Secretary of State Tre Hargett’s office shows that state unemployment dropped to 3.2 percent, below the national rate of 3.6 ... (click for more)

Tennessee Supreme Court Holds Education Savings Account Pilot Program Doesn't Violate Home Rule Amendment

In an opinion released Wednesday, the Tennessee Supreme Court determined that, while two Tennessee county governments had standing to challenge the Education Savings Account Pilot Program (the “ESA Act”), the Act is not rendered unconstitutional by the Home Rule Amendment, article XI, section 9, of the Tennessee Constitution. In 2019, the Tennessee General Assembly enacted ESA ... (click for more)

Breaking News

Man, 25, Shot And Killed On 13th Avenue

A 25-year-old man was shot and killed on 13th Avenue early Friday morning. At approximately 12:45 a.m., Chattanooga Police responded to the 3600 block of 13th Avenue on a report of a person shot. Upon arrival, officers located a man suffering from apparent gunshot wounds and secured the scene. Hamilton County EMS responded and pronounced the victim deceased on ... (click for more)

Man Bowfishing On Nickajack Lake Dies When Boat Sinks

Ronnie D. Gholston, age 24, of Whitwell, along with two other men, were bowfishing Thursday evening on Nickajack Lake. Around 10:30 p.m. their 15-foot Lowe fishing boat started to take on water. The three men jumped into the water to swim to shore. As they swam, two men in the group observed that Mr. Gholston was no longer communicating with them. The two men swam to an island ... (click for more)

Opinion

Reaching Across The Aisle

What comes to mind when I hear the outcry of sore losers in a mayoral race in Hamilton County in 2022? What comes to my mind is we have had elected officials in this county dating back years who were applauded for being able to bring Republicans and Democrats together in a race for mayor, sheriff, commissioner, council person, Senator, or State Representative. So why now does ... (click for more)

Roy Exum: No Longer ‘Pure’

There was a time, in the not-so-distant past, when college athletics were pure. There was no transfer portal, where the disgruntled athletes could scoff at commitment, loyalty, and tradition in vain pursuit of the NFL. And there was no “name, image, and likeness” (NIL) where college-aged teenagers are now paid for endorsements, autographs, appearances, and the like. During this ... (click for more)