Cheltenham Township is closing its two remaining Citizens Bank accounts after facing pressure regarding the bank’s financing of companies that run detention facilities, The Philadelphia Inquirer reported.
According to the Associated Press, last week the bank announced “plans to wind down its financial relationship with two private prison companies that have been government contractors under the Trump administration to help run immigration detention centers, bowing to public pressure from advocates and left-leaning city governments.”
On July 17, Citizens Bank published a statement titled “Citizens Comments on Certain Client Relationships“. An excerpt:
Over the past year, we have been targeted by several activist groups regarding our relationships with two private prison operators, CoreCivic and The GEO Group. To date, we have refrained from commenting directly given our commitment to maintaining client privacy. However, given recent developments, we feel it is appropriate to comment at this time.
GEO has been a client of the bank since 2018, and CoreCivic has been a client since 2011. Among the services these companies offer is the operation of prisons under service contracts with the federal and various state governments. This includes contracting with U.S. Immigration and Customs Enforcement to operate detention facilities for those individuals scheduled for deportation. Both companies also own various facilities in addition to their service contracts.
The statement goes on to say that bank officials “determined that it is now appropriate to exit the credit facilities for these clients. This is a business decision based on changed commercial circumstances and does not reflect any change in our view regarding these companies’ business models or operations.”
“Citizens has been disappointed that the activists have dragged it into what is largely a political matter. Public characterizations of Citizens by activist groups, including as it relates to our commitment to immigrants and to communities, do not reflect who we are or the record we have built. Citizens is deeply committed to serving our customers, colleagues, and communities,” the statement says. “The activists have not recognized that it is against bank regulation to deny banking services to individuals and to lawful businesses based on political or religious considerations, a practice referred to as ‘debanking.'”
Around $9 million will be allocated from Citizens Bank to Santander Bank after months of lobbying by local residents, The Inquirer said, noting that township’s tax collector, Melvin Pitts, said he is also closing his office’s four Citizens accounts. Bank statements from May showed roughly $3 million between three of the four accounts.
Lauren Walter, the township’s public information officer, said Cheltenham’s primary accounts were already at Santander.
“The Cheltenham Township Board of Commissioners has committed to divest all Township accounts from Citizens Bank,” commissioner Matt Areman wrote in a statement. “While the Board remains committed to protecting taxpayer resources and maintaining sound fiscal stewardship, we also believe that where we choose to do business is an expression of our community’s values.”
A community group called East Cheltenham CARES was an impetus for divestment, The Inquirer said. Other local groups such as Cheltenham Immigration Response urged the township to adopt an immigrant “Welcome Policy” last October.
Local Citizens Bank locations exist at 139 S Easton Road in Glenside, 8250 Old York Road in Elkins Park, 1601 The Fairway in Jenkintown, 835 Bethlehem Pike in Flourtown, 3905 Welsh Road in Willow Grove, and 763 Huntingdon Pike in Huntingdon Valley.
Last month, the Cheltenham School District Board of School Directors adopted a resolution which addresses federal immigration law enforcement on school grounds.
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