Huntington commits $20B to communities

Huntington Bancshares is making a $20 billion commitment to the Midwest communities it serves.

The bank announced Tuesday a fiveyear initiative to provide home, smallbusiness and other loans meant to help low- to moderate-income people.

The effort builds on the $16.1 billion, five-year program that Huntington launched in 2016 and completed early.

The difference now is that Huntington is rolling out the initiative in the middle of a pandemic that has put the economy in recession and has jacked up unemployment.

The bank could have waited a year, but Steve Steinour, the bank’s chairman, president and CEO, said homeowners and small businesses need help now.

“The pandemic is happening, there’s the recession, people are hurting,” Steinour said. “Our colleagues (have been saying) we have to do more. The stuff we can do can make a big difference. We can do more of it.’’

The new program divides the commitment into three categories: $7.6 billion for businesses; $7.5 billion to boost home ownership by minority and lowto moderate-income borrowers; and $4.9 billion in community-development lending and investment targeting access to affordable housing and community-based loan funds.

Huntington, already a major lender to small businesses, says the $7.6 billion will be geared toward businesses owned by minorities, women and veterans. Huntington also will invest in business planning and educational programs for business owners.

The home-lending initiative will help first-time home buyers and current homeowners refinance to take advantage of low interest rates or finance home improvements. The programs are meant to support minority and low-tomoderate income borrowers.

The $4.9 billion for community programs will support efforts in affordable housing, food security, workforce development and social equity. The programs will help seniors, veterans and others, Steinour said.

The new initiative was greeted warmly by Jesse Van Tol, executive director of the National Community Reinvestment Coalition, a nonprofit made

up of community leaders, policymakers and financial institutions to champion fairness and end discrimination in lending, housing and business. The coalition worked with Huntington on its 2016 program and the program launched Tuesday.

“They fulfilled (the 2016) plan early. Much to their credit, they decided to renew, which they didn’t have to do,” he said.

Van Tol said he wondered if Huntington could even do more than what it announced, but given the economy right now he understands why Huntington has set goals it has.

“If the economy improves, maybe they’ll be back here in three years,” he said.

Van Tol gave credit to the bank and Steinour for its effort when it comes to serving minorities and lower-income consumers.

“Huntington has really prioritized and a found a way to profitably serve people of more modest means,” he said.

Steinour said the bank expects to announce more detailed programs in coming weeks and months.

Laying out the program over five years will help Huntington teams plan and set goals, Steinour said.

“In my mind, all it is is good business or if we giving back, we’re giving back to people who really need it,’’ Steinour said. mawilliams@dispatch.com @Bizmarkwilliams