Citizens Bank Severs Lending Ties With Private Prison Operators CoreCivic and GEO Group

Citizens Bank announced July 17 that it will terminate lending relationships with CoreCivic and GEO Group, two of the largest private prison operators in the United States that manage immigration detention facilities under federal contract. The Rhode Island-based financial institution attributed the decision to shifts in the companies’ capital requirements following federal government plans to purchase certain detention facilities, rather than to months of activist pressure demanding the bank sever those ties.

GEO Group has maintained a banking relationship with Citizens since 2018, while CoreCivic became a client in 2011, according to the bank’s statement. Both corporations operate correctional facilities under federal and state contracts, including agreements with U.S. Immigration and Customs Enforcement to manage detention centers housing individuals pending deportation. The companies also own and operate independent facilities beyond their contracted operations.

Citizens Bank stated that recent federal acquisitions of correctional facilities have substantially reduced CoreCivic and GEO Group’s financing needs and altered their operational funding models. The bank stressed this business rationale drove the decision and rejected characterizations that activist pressure influenced the choice, while acknowledging it had faced sustained campaigns from advocacy groups urging clients and municipalities to withdraw support.

In response, CoreCivic stated the company maintains “the strongest financial position in the company’s history” and operates as “a lawful business” serving government partners across federal, state and local levels under administrations of both parties over four decades. The company emphasized its focus on delivering quality services and safe operations for government partners.

Citizens Bank countered activist criticism by highlighting its community commitments, including partnerships with 140 nonprofits serving immigrant communities, over 265,000 employee volunteer hours annually, staff participation on more than 1,000 nonprofit boards, and $2 billion in community development financing for affordable housing and economic development initiatives.