Banking

GreenState Credit Union pledges $500M toward racial equity efforts

GreenState Credit Union in North Liberty, Iowa, plans to invest $500 million in its communities during the next decade to help advance racial equality efforts in its home state.

Jeff Disterhoft, president and CEO of GreenState Credit Union

The $6.8 billion-asset institution said in a press release Monday that Iowa’s racial homeownership gap, or the difference between white and Black homeownership, is the sixth largest in the U.S., and the funds will be used to help bridge that gap.

GreenState’s pledge marks another way the credit union movement is attempting to address racial and social justice efforts in the country. Last week, Visions Federal Credit Union in New Jersey announced a $1 million grant that will be used in part to address racial justice.

“Since George Floyd’s death last summer, our organization has been reflecting on continued racial inequities in the communities we serve and the role we can play to build a better society,” said GreenState CEO Jeff Disterhoft. “To be sure, we will continue to lend to Iowans of all races and financial backgrounds. We recognize that as Iowa’s largest credit union, we have a special responsibility to address racial inequities head on.”

The credit union said the investment will include targeted mortgage lending with the possibility of closing cost or down payment assistance for qualifying members. It has also earmarked $20 million for targeted community investments, $9 million for racial, immigrant and refugee equity, along with another $6 million for affordable housing and financial inclusion.

GreenState earned roughly $78.2 million in the first three quarters of 2020, compared with $62.2 million for the same period in the prior year, according to National Credit Union Administration call report data.



 

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