Citadel Credit Union Responds to DoJ Settlement and Bolsters Commitment to a Brighter Future for All
This agreement marks a pivotal moment in Citadel's journey, embracing the opportunity to reinforce its dedication to community and demonstrate its strong aspiration to ensure access to credit and financial services for every member of the communities it serves.
Citadel Credit Union President & CEO, Bill Brown commented: "As we look back at our history, this is a situation arising from what we weren't doing, rather than one of intentional acts. Banking has not been immune to the digital disruption that has swept across various industries for decades and Citadel's robust focus on our digital journey shifted our strategy away from new brick-and-mortar branches in recent years, which inadvertently impacted our ability to serve our region as broadly as we had planned. Philadelphia has always been, and remains, part of our growth plan, but the evolution of our business model led to us falling short of opening branches in Philadelphia as we had agreed to do when we expanded our charter.
While Citadel respectfully disagrees with the allegations regarding our lending practices, we view this settlement as a vital opportunity to enhance our commitment to proactive community engagement. We acknowledge that our efforts did not allow us to reach majority Black and Hispanic census tracts in Philadelphia. This settlement marks a significant milestone in our ongoing journey towards creating a more inclusive and equitable future for all communities in our service area. Our decision to resolve this matter reflects our dedication to focusing on the future and continuing to make a positive impact in all communities we serve. We remain committed to fulfilling our promises to Build Strength Together."
Under the terms of the settlement, among other things, Citadel has committed to:
Provide $6 million in mortgage loan subsidies over a 5-year period for majority Black and Hispanic census tracts in Philadelphia County;
$270,000 in additional focused marketing, advertising, consumer financial education and outreach;
$250,000 in community development partnerships;
Open 3 full-service branches in Philadelphia County within three years
Citadel President & CEO, Bill Brown, continued, "We intend to lean into the responsibility that comes with our growth and live up to our promise to help every community in our service area live their brightest future by inspiring them with guidance and tools to build financial strength. To demonstrate our commitment, we are proud to initiate new programs and expand existing ones to fulfill our promise to our members and communities."
Key initiatives Citadel is proud to announce today include:
Increasing its commitment to its philanthropic legacy through the appointment of a Vice President in a new role dedicated to Philanthropy and Community Engagement demonstrating its commitment to a purpose-built Citadel Cares program. The program, which was announced in July 2023, has been thoughtfully re-vamped to ensure continued alignment with Citadel values with refined new pillars:
Financial Literacy – focused on supporting financial education programs throughout our charter area.
Education – focused on partnering with programs who prepare students to thrive in the classroom.
Community & Economic Development – focused on strengthening the economic vitality in the regions through programs that support homeownership & housing, veteran, women and minority owned businesses.
Health & Wellness – focused on partnering with organizations that provide access to quality food and medical care for those in need.
The appointment of a Community Lending Officer this past August to identify, develop and build relationships to serve as a source for mortgage lending opportunities in majority-Black and Hispanic census tracts with a focus on Philadelphia.
Citadel is working to form new partnerships with organizations aligned with its values to further demonstrate its dedication to members and communities across Southeastern Pennsylvania, as it begins to replicate its philanthropic efforts that stemmed from its local roots to those it has demonstrated through its significant support in the fight against childhood cancer as well as various financial education events.
Citadel is also proudly nearing the launch of a Citadel Home Help Program designed to provide affordable products for prospective homebuyers in low to moderate income (LMI) census tracts.
Over the course of the past year since Brown joined Citadel, a new Senior Leadership Team has been assembled and is aligned on priorities and Citadel's future trajectory. Citadel Credit Union remains dedicated to living out its values of Innovation, Opportunity, Connection, Transparency, Security, and Respect in all it does. Citadel is proud of its history of giving and commitment to corporate responsibility, having supported dozens of organizations through over $500,000 in donations and thousands of volunteer hours of support annually, while also regularly offering community seminars and other financial wellness opportunities across its footprint. Nearly 25 years ago, Citadel created the Citadel Heart of Learning Awards program, which honors local teachers throughout its service area, and recently surpassed a milestone of $500,000 granted to deserving educators. With a name that promises a "fortress", or a place where people can turn to gain strength for a better future, Citadel looks forward to expanding its membership, helping to build better futures for all.