First Tennessee Bank and Capital Bank commit nearly $4 Billion to broaden access to financial resources in underserved communities in Southeast

First Tennessee Bank and Capital Bank,  members of the First Horizon National Corp. (NYSE:FHN) family of companies, today announced a five-year, $3.95 billion community benefit plan to increase access to financial resources within low- to moderate-income (LMI) 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 (NCRC) and its community-based members across the Southeast, will run from 2018 to 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 (CDC), Community Development Financial Institutions (CDFI), 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.  Reinvestment Partners looks forward to working with the bank as a leader in North Carolina,” Peter Skillern, Executive Director, Reinvestment Partners.


“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.  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,” Marcia Lewis, Executive Director, Memphis Housing Authority.


“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. We look forward to working with them to make sure that this capital is used for equitable development, not gentrification” Adrian Madriz, Project Lead, SMASH Inc.


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


“I'm delighted about the commitments made by First Tennessee Bank and Capital Bank. 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,” Glyndola Massenburg-Beasley, President Durham Regional Financial Center.


“Chattanooga Organized for Action is delighted to see these concrete steps and partnership agreed to by First Tennessee. 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,” Michael Gilliland, Board Chair, Chattanooga Organized for Action, Inc.


“First Tennessee Bank has been our staunch supporter for many years to provide financial dignity and empowerment to all people. 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.” John Hope Bryant, CEO and Founder, Operation HOPE.