FRBSF: Innovative CRA Programs Win Recognition

The Federal Reserve Bank of San Francisco

April 18, 2000

CONTACTS: Amy Stewart, FHLBSF
John Olson, FRBSF (415) 616-2605
(415) 974-2989

Innovative CRA Programs Win Recognition

SAN FRANCISCO, CA -- Four innovative Community Reinvestment Act (CRA) programs that have significant impact in their communities were chosen as the top winners in a competition sponsored by the Federal Home Loan Bank of San Francisco (FHLBSF) and the Federal Reserve Bank of San Francisco (FRBSF).

Held in conjunction with the FRBSFÌs Community Reinvestment Conference 2000, the competition drew more than 60 qualified entries from throughout the country. A panel of community development professionals judged the competition and selected the following winners in four categories: Bank One Arizona, based in Phoenix, for lending; Nevada Bank & Trust of Caliente, Nevada, for service; Cleveland, Ohio-based KeyBank for investment in Seattle; and both Commerce Bank of Washington and KeyBank for community development in Seattle.

"We received many outstanding submissions for these awards," said Jim Yacenda, vice president and community investment officer of FHLBSF. "It is our hope that by acknowledging the efforts of these financial institutions, we can enhance the success of community development programs across the country."

Joy Hoffmann Molloy, director of public information and community affairs for the FRBSF, added, "showcasing successful CRA programs and sharing best practices can help boost much-needed services and investment in low- and moderate-income communities."

The winners are:

Lending -- Bank One Arizona
Bank One Arizona, based in Phoenix, used Bank Enterprise Award funds from the Department of the Treasury to offer low-cost predevelopment loans to nonprofit affordable housing developers throughout Arizona. These loans have filled a critical credit need and have resulted in the creation of over 100 units of affordable housing.

Service -- Nevada Bank & Trust
Nevada Bank & Trust, based in Caliente, Nevada, opened a branch on the Duck Valley Indian Reservation in Owyhee, Nevada, to serve the credit needs of the Shoshone-Paiute Tribes. It is the only financial institution within 100 miles of the reservation. The bank leases space from the tribe and has helped create a credit co-op for tribal members.

Investment -- KeyBank
KeyBank, based in Cleveland, Ohio, worked closely with a consortium of financial institutions and Pioneer Human Services of Seattle, Washington, to establish Pioneer Social Ventures. This fund will be used to acquire businesses in which Pioneer will train and employ its clients. Pioneer Human Services provides rehabilitation, housing, job training, and employment for persons at the margins of society, particularly former substance abusers and ex-offenders.

Community Development -- Commerce Bank of Washington and KeyBank
Both Commerce Bank of Washington, based in Seattle, and Cleveland-based KeyBank are leading supporters of The Compass Center of Seattle, Washington. The Compass Center, a nonprofit organization that provides transitional housing and services to the homeless population, operates a WomenÌs Center, a Hygiene Center, and a Community Banking Program. Commerce Bank and KeyBank have supported these programs with loans, technical assistance, and charitable contributions.

Certificates of Merit were also awarded to Ronan State Bank of Ronan, Montana, for lending; BankPacific of the Northern Mariana Islands for lending; Union Bank of California for service; Wells Fargo for investment; and Santa Barbara Bank & Trust for community development.

Through its 260 member financial institutions, the Federal Home Loan Bank of San Francisco is instrumental in providing low-cost funding and other services that help community lenders promote homeownership and make loans that build neighborhoods and communities. The Bank also funds community investment programs that help members create affordable housing and that foster partnerships among lenders, housing developers, community organizations, and government agencies. With over $100 billion in assets, the Bank is the largest of the 12 banks in the Federal Home Loan Bank System. It serves and is owned by commercial banks, credit unions, savings institutions and industrial loan companies headquartered in Arizona, California, and Nevada.

The Federal Reserve Bank of San Francisco organizes a Community Reinvestment Conference every other year, bringing regulators, bankers, and community development professionals together to provide technical expertise, stimulate dialogue, and share innovative ideas -- all aimed at increasing investments in low- to moderate-income communities. The largest of 12 Banks throughout the Federal Reserve System, the FRBSF provides wholesale banking services to financial institutions in the nine western states through the head office in San Francisco and branch offices in Los Angeles, Portland, Salt Lake City, and Seattle. As the nation's central bank, the Federal Reserve System formulates monetary policy, serves as a bank regulator, administers consumer protection laws, and is fiscal agent for the U.S. government.

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Note: The full texts of all the award submissions are available at the Community Affairs section of the Federal Reserve Bank of San FranciscoÌs web site.