The initial year of First National Bank of Omaha’s “First in the Community” program was a success on all fronts. The numbers are not yet totaled on the second year, 2017, but all indications are those trends will continue. Thus, the Nebraska-based bank is now accepting program proposals from grant seekers interested in helping low- to moderate-income families or communities with housing, neighborhood revitalization or strengthening of the economy.
Beginning in 2016, First National Bank committed to pouring a total of $85 million and 100,000 employee volunteer hours over the next five years into the communities it serves, located across seven states.
“We’ve been proactively investing in our community since our inception,” said Alec Gorynski, vice president of community development and corporate philanthropy. “… It’s always been an element of our identity, but we recognized that the true way to have an impact is to have a strategy, to have some focus.”
That focus pinpointed four categories: stable housing, neighborhood revitalization, strong local economies, and individual financial wellness and education. The last of those is addressed through a grant cycle later in the year, while the other three are tangible, interconnected aspects. First National Bank had tried addressing them in the past, but had not properly tracked any metrics before the program’s launch.
“Is this doing our communities any good? Is this doing us any good?” Gorynski remembered asking rhetorically. “If you invest in your industry in some way, if you invest in something that produces a social impact in alignment with your industry, it creates a better environment for you to operate in. We recognized that.”
The first year of First National Bank’s efforts created 4,054 jobs at 63 new businesses, and built, rehabilitated or financed 1,076 new homes. Those both fit in line with the five-year goals of creating 25,000 jobs and working with 5,000 homes.
Most of this effort is not altruistic, nor does Gorynski intend to imply it is. Some of the $85 million goes toward philanthropic efforts, but much of it is distributed through “impact investments.”
“We use our balance sheet to make investments that generate both a social and a financial return to the bank,” he said. “We’re taking risks or providing investments in ways we wouldn’t have normally. We see how those kinds of investments, high-dollar volume, have more potential for impact.”
An unexpected perk to the push has been its resonance with First National Bank employees. The effort to aid communities has led to increased profits for the $21 billion bank. “We were very intentional about how we demonstrate that when you do this work, when you underwrite loans, it produces profits,” Gorynski said. “Those profits allow us to do these things.
“That was something we didn’t anticipate, and it’s really galvanized our employees around this element of our purpose.”
The five-year plan will last through 2020 in Colorado, Illinois, Iowa, Kansas, Nebraska, South Dakota and Texas.
To submit a proposal, visit firstnational.com/community before Feb. 12.