Investor Stories: Banks
Investing more than capital – JPMorgan Chase
JPMorgan Chase’s Community Development Group has always believed in strengthening the communities in which the bank does business. It has done so by increasing access to capital, providing leadership by example and leveraging the vast resources of JPMorgan Chase.
JPMorgan Chase first invested in TRF as part of the Collaborative Lending Initiative (CLI), a bank loan consortium created by TRF to finance large scale construction projects such as housing and community facilities.
“It was a wonderful opportunity for JPMorgan Chase to collaborate with other committed bank investors towards making a difference in the community,” explains Dudley Benoit, Vice President of JPMorgan Chase, adding, “TRF’s leadership in the field of community development finance made it a perfect partner.”
Prior to JPMorgan Chase’s involvement, TRF managed the administration of CLI which consisted of 22 separate credit facilities. The detailed administrative tasks also took a lot of time away from TRF’s real focus of making loans. As a large syndicator of loans, JPMorgan Chase was experienced in structuring as well as leading multi-bank syndicated facilities, and it was an expertise the bank willingly offered when it joined CLI. Today, JPMorgan Chase serves as the agent syndicator for both CLI and TRF’s Charter School Capital Access Program (CCAP), which together account for about $74 million in capital.
The bank has also extended its investments to include TRF’s private equity fund, Urban Growth Partners. Gloria H. Lee, Investment Officer at JPMorgan Chase, says, “Urban Growth Partners was a dynamic opportunity to continue our growing partnership with TRF.”
A national leader in community development finance, JPMorgan Chase’s contribution to TRF has been much more than just capital. “They have been an active, engaged investor, supporting us in ways that facilitate growth,” says Jeremy Nowak, TRF’s President and CEO. “This is a partnership that is still at its infancy and we are excited about its future.”
Strategic partnership fosters the regional economy – Citizens Bank and TRF
Citizens Bank, one of the 20 largest commercial banks in the United States, has been one of TRF’s most important banking partners.
The relationship began when in 2001 Citizens Bank purchased the retail, small business and certain middle market commercial banking businesses of Mellon Financial Corporation (including 121 banks in the greater Philadelphia region), with the intention of making a splash in the market.
In addition to reductions and eliminations of fees on banking products and offering a single morning of “free rides” on SEPTA to 350,000 commuters, Citizens Bank also initiated numerous economic-stimulus investments in the Philadelphia region, notably to TRF. Its investments in TRF have been generous and visionary.
Among its initial acts was a $6,050,000 investment in TRF, including $2 million for charter schools and community service centers; $3 million for large affordable housing loans; and $1 million to support TRF's core lending programs (economic development, community facilities, and housing).
Citizens also provided TRF with grant funds for technical assistance to TRF's small business customers and for pre-development costs for affordable housing projects. Within its own institutional structure, Citizens made internal loan capital available for TRF's small business customers. Citizens also engaged TRF technical assistance expertise for technical assistance to the bank’s small business loan applicants
“TRF is a terrific resource to the communities of Greater Philadelphia,” said Stephen D. Steinour, Chairman and CEO of Citizens Bank of Pennsylvania. “Citizens Bank is proud to enter into a partnership with this important community development group. This investment will help to stimulate the regional economy by fostering small business development, increased homeownership and capital investment that meets the needs of neighborhood educational groups and community centers.”