Investing in our communities

Transcription

1 Investing in our communities

2 Charles Schwab Bank is committed to investing in the communities in which we work and live, and to helping people take ownership of their financial futures. Our commitment to supporting our local communities is guided by the Schwab principles of service, collaboration, innovation, and client loyalty to create and preserve sustainable outcomes that promote economic security. The Bank s Community Development Group (CDG) oversees our Community Reinvestment Act program, which serves the credit needs of the communities in which we operate, including low- and moderate-income neighborhoods, consistent with safe and sound operations. Our thoughtful program offers loans, investments, grants and services that support affordable housing, small business and sustainable job creation, and financial education. By collaborating with some of the most innovative and dedicated community partners, we are creating financial security and stability for under-resourced families and helping transform historically marginalized communities in California and Nevada. Since its inception in 2004, Charles Schwab Bank has invested, lent and granted nearly $1.8 billion to underserved communities, including: $1 billion to affordable housing $46 million to small business and job creation $7.5 million to financial education and other causes $734 million home mortgage loans to low- and moderate-income households SALE 2

3 Pathways to entrepreneurship The Bank supports the creation of sustainable jobs and businesses through our robust Community Development Financial Institution (CDFI) lending platform. CDFIs are specialized mission-driven financial intermediaries that take a market-based approach to delivering new sources of capital into lower-income and underserved neighborhoods that have historically lacked access to conventional financing. We actively seek CDFI partners that are pioneering innovation in the small business lending industry. In 2015, the Bank provided a $10 million loan used to support the micro and small business lending activities of the award-winning and innovative Opportunity Fund, a leading microfinance provider in California. Opportunity Fund believes that access to credit and a reason to save build pathways to entrepreneurship and education that break the cycle of poverty. In 2016, the Opportunity Fund: Lent $65 million in 2,188 new small business loans Created and sustained 31,494 jobs through its small business lending program Lent $31 million in community based real estate projects Granted $1 million in matching funds for 500 new savings accounts for low-income students pursuing a college degree Founded in 1994, Opportunity Fund helps residents of underserved communities by driving economic mobility and building stronger communities through entrepreneurship, education, and sound financial habits. Opportunity Fund is a California nonprofit corporation and CDFI whose mission is to create and sustain jobs and businesses by providing micro and small business loans and matched savings programs to low-income entrepreneurs and businesses located in low- and moderateincome areas that cannot qualify for traditional bank loans. 3

4 Seeding savings for youth Since day one, the Bank has been committed to making investing more accessible and promoting financial literacy to help people take ownership of their futures. The Bank s commitment to helping youth establish good financial habits led to a partnership with MyPath, a San Francisco-based nonprofit that incorporates savings, banking and creditbuilding pathways to help under-resourced youth open bank accounts and establish savings plans. Since 2011, the Bank has funded $265,000 in grants to MyPath, including $45,000 in two seed grants to further expand the program beyond the San Francisco Bay Area to communities in Reno and Las Vegas, Nevada. MyPath also received two Bank-sponsored grant awards totaling $52,000 through a Federal Home Loan Bank of San Francisco competitive grant program to establish the infrastructure to further scale online financial education opportunities in Reno and Las Vegas. In 2016 MyPath: Served 4,500 youth Partnered with 50+ employment partners and six credit unions Operating in eight cities in Missouri, Nevada, Washington, and California Helped 96% of youth participants reach their savings goal Youth participants saved 34% of their income 4

5 Creating affordable housing opportunities A high priority for the Bank is addressing the persistent lack of affordable housing, particularly in high cost areas. Even properties originally created to assist and house lowincome renters can become unaffordable over time after affordability covenants, made in connection with the property s development, expire. As a result, long-time lower income residents are slowly displaced and families are forced to seek new housing, often in places far from their support network and places of employment. This cycle occurs repeatedly over time, particularly in gentrifying neighborhoods in our nation s cities. To both create and preserve affordable housing for lower income populations, the Bank seeks out innovative investments that deliver on our commitment to the communities in which we live and work, such as our investment in Housing Partnership Equity Trust (HPET). In 2016, the Bank invested $10 million in HPET, a mission-driven private Real Estate Investment Trust. Formed in 2013 by 12 of the nation s strongest nonprofit affordable housing developers, HPET creates a perpetual capital source that can compete with for-profit investors to purchase multifamily residential properties. These nonprofit developers have always had an advantage due to their local market knowledge and presence, and having the Bank s capital available for rapid deployment helps them purchase properties that are located near jobs, schools, transportation, and other critical community services. Following the purchase, HPET commits to maintaining long-term affordability and provides services to tenants to expand educational opportunities, provide financial security, and offer access to health and wellness resources. To date, HPET has invested $67 million in 12 multifamily residential properties, providing 2,600 homes for low-income families. The Housing Partnership Equity Trust has enabled nonprofit affordable housing developers to: Provide affordable housing to 2,600 families Purchased 12 multifamily residential properties Secured 14 investors Invested $67 million into preserving affordable housing opportunities 5

6 Brokerage Products: Not FDIC Insured No Bank Guarantee May Lose Value Charles Schwab Bank and Charles Schwab & Co., Inc. are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation. Brokerage products offered by Charles Schwab & Co., Inc. are not insured by the FDIC, are not deposits or obligations of Charles Schwab Bank, and are subject to investment risk, including the possible loss of principal invested. Charles Schwab & Co., Inc. does not solicit, offer, endorse, negotiate, or originate any mortgage loan products and is neither a licensed mortgage broker nor a licensed mortgage lender. Deposit and other lending products and services are offered by Charles Schwab Bank, Member FDIC and an Equal Housing Lender. Charles Schwab Bank is not acting or registered as a securities broker-dealer or investment advisor. Charles Schwab & Co., Inc. is an equal opportunity and affirmative action employer committed to diversifying its workforce. All applicants are considered without regard to race, color, religion, sex, sexual orientation, gender identity, national origin, age, disability, protected veteran status, or based on any individual s status in any group or class protected by applicable federal, state or local law. The Charles Schwab Corporation provides a full range of securities, brokerage, banking, money management, and financial advisory services through its operating subsidiaries. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. ( Schwab ), Member SIPC, offers investment services and products, including Schwab brokerage accounts. Its banking subsidiary, Charles Schwab Bank (member FDIC and an Equal Housing Lender), provides deposit and lending services and products. Schwab Advisor Services serves independent investment advisors and includes the custody, trading, and support services of Schwab. Independent investment advisors are not owned, affiliated with, or supervised by Schwab. Schwab Retirement Plan Services, Inc provides recordkeeping and related services with respect to retirement plans. The Charles Schwab Foundation is a 501(c)3 nonprofit, private foundation that is not part of Charles Schwab & Co., Inc. or its parent company, the Charles Schwab Corporation Charles Schwab & Co., Inc. All rights reserved. Member SIPC. IAN (1217-7A8L) MKT (12/17)