Essex County Asks Banks: How Are You Reinvesting In Our Towns?

ESSEX COUNTY, NJ — Essex County has several banks that it uses to deposit public funds. And once a year, their representatives are called to give more details about how they’re helping to boost the communities they’re located in.

How did they do for 2021? According to one Essex County commissioner: “I was pleased.”

Last month, the Essex County Board of County Commissioners held its annual Bank Review Program Committee Meeting (watch the video below). The meeting was chaired by District 3 Commissioner Tyshammie L. Cooper, and was attended by County Administrator Robert Jackson and representatives from the Essex County administration.

Representatives from Provident Bank, TD Bank, Valley Bank, Industrial Bank, PNC Bank, Investors Bank, Santander Bank, New York Community Bank, Wells Fargo and Connect One Bank were in attendance.

According to a news release from the commissioners:

“Prior to the meeting, in compliance with a 2015 Ordinance establishing Essex County’s Banking Community Reinvestment Act Review Program, all financial institutions that receive county funds are required to submit their annual Community Reinvestment Act (CRA) Data Submissions and CRA rating to the Board for review. The CRA report is used to assess a bank's record of providing service and lending activities to the community.”

During last month’s meeting, bank representatives gave a presentation on the programs they offer designed to benefit the residents of Essex County. They also answered direct questions from the board about their specific efforts to help the county’s small business and low-to-moderate income communities, including loan repayment assistance, foreclosure and eviction prevention and COVID-19 pandemic financial relief.

“I was pleased with the banks and the information they presented,” Cooper said after the meeting.

He added:

“The banks presented an overview of their actual lending and community development activities such as offering favorable loans to assist minority owned small businesses in low-to-moderate income neighborhoods, providing grants for affordable housing, and foreclosure prevention programs to help residents in danger of losing their homes, we needed to ensure that the banks that hold deposits on behalf of the county are properly servicing our communities. Each institution provided services that were unique to their organization. Some committed to lending policies to ensure that sizable loans go to underserved communities, whereas others have programs to provide down payment assistance for residents looking to purchase a home. In each instance, their answers showed they are making an effort to assist the residents of Essex County. I was especially proud that the number of foreclosures was greatly reduced compared to prior years.”

County officials have previously used their financial leverage with banks to promote social justice efforts in the region.

In 2018, officials announced that the county planned to withdraw all of its funds held with Wells Fargo – about $3.8 million – due to the bank’s alleged "predatory lending schemes and aggressive foreclosure practices."

• See related article: Essex County Kicks Wells Fargo To Curb, Withdraws $3.8M From Bank

Send local news tips and correction requests to eric.kiefer@patch.com

Sign up for Patch email newsletters. Learn more about posting announcements or events to your local Patch site.