As part of its commitment to investing in the communities it serves, Exelon arranged $123 million in credit lines with 33 community and minority-owned banks in Illinois, Pennsylvania, Maryland and New Jersey. The credit facility represents a $5 million increase and an addition of three new participating lenders from last year.
"Exelon's minority and community banking program, now in its tenth year, exemplifies our commitment to doing business with diverse suppliers," said Jonathan W. Thayer, executive vice president and CFO of Exelon. "We view our diverse communities as valued partners in our business. The individuals and businesses in those communities -- and the diverse perspectives they bring -- are essential to our success."
Unique to the energy industry, Exelon's minority and community banking program has grown substantially since its launch in 2003 with a $36 million credit facility from eight community banks. Administered by JP Morgan Chase since its inception, the program has more than tripled in credit facility size and more than quadrupled the number of participating banks.
The four lead credit arrangers for 2012 are the United Bank of Philadelphia, Seaway Bank and Trust Company and Riverside Community Bank in Illinois, and The Harbor Bank of Maryland. With the addition of Baltimore-based BGE and Constellation to the Exelon family of companies in 2012, Exelon has welcomed Baltimore-area banks Industrial Bank and The Harbor Bank of Maryland into the program. Wilmington Savings in the Philadelphia area also joined the program this year.
The minority and community banking program is mutually beneficial for Exelon and the participating banks. It provides Exelon subsidiaries Exelon Generation, PECO Energy, ComEd and BGE with additional sources of credit at competitive prices. At the same time, the program provides participating banks incremental business in the form of deposits -- and the increase in their assets helps the banks generate more business and provide more services to their communities.
"Having a relationship with a Fortune 100 company further strengthens our ability to serve our customers, which include small businesses and individuals in our community," said Joseph Haskins, Jr., chairman, president and CEO of The Harbor Bank of Maryland. "By doing business with community banks in Baltimore and other urban communities, Exelon is investing in the economies of the areas it serves."
The partnerships between Exelon and the community and minority banks go beyond the credit agreements. They also offer the banks an opportunity to expand their business with Exelon into other areas, as well as to seek business from other large companies. For example:
* Program participant AztecAmerica Bank now offers low-income community members the opportunity to purchase gift certificates for ComEd electricity service.
* Program participant Banco Popular has worked with Exelon employee volunteers to create educational opportunities for local students on managing personal finances.
As part of its business strategy to advance diversity and inclusion, Exelon maintains partnerships with minority- and women-owned investment firms as well. Exelon currently has approximately $900 million of pension and healthcare assets invested with 10 diverse investment firms. Since 2007, the company has included a minority-owned investment bank in each of its long-term capital market issuances.
Exelon has a demonstrated commitment to supplier diversity and has made it a critical part of the company's overall supply chain strategy. With the addition of Constellation and BGE to the Exelon family of companies, Exelon expects its corporate spending with certified minority- and women-owned businesses to be approximately $700 million annually.
Most Popular Stories
- Top Hispanic Tech Companies Push for the Top
- 5 Notable Hispanic Technology Executives
- Tesla's Alt-Energy Future Aims for Massive Lithium-Ion Battery Production
- FAA to Appeal Court Decision Allowing Commercial Drone Use
- Rand Paul Tops Presidential Straw Poll at Conservative PAC Conference
- California Establishes Center for Coffee Study
- New Chat App, Yik Yak, Causes Problems for Students
- Sunday Starts Daylight Saving Time
- Arriola Takes Charge at SoCalGas
- Obama Meets with Ukraine Prime Minister Wednesday