CLEVELAND, Sept. 16 /PRNewswire-FirstCall/ -- The Office of the Comptroller of the Currency (OCC) has awarded KeyBank an "outstanding" rating for exceeding the terms of the Community Reinvestment Act (CRA). Enacted in 1977, the CRA requires banks to meet the credit needs of low- and moderate-income communities across America. Key is the only national bank among the 50 largest to be rated "outstanding" by the OCC seven review periods in a row.
KeyBank's CRA compliance was found to be outstanding through a rigorous year-long exam process that rates financial institutions in terms of lending, investment, and services practices. In making its assessment, the OCC evaluates mortgages, retail and small-business banking, and community development lending, investments and service. For both the overall rating and the three subcategories, banks are assigned one of the four statutory ratings: outstanding, satisfactory, need to improve, or substantial noncompliance. Key received an outstanding in all three subcategories. The OCC assesses the CRA performance of a bank in an examination every three to four years, and Key's recent exam covered January 1, 2003 through June 30, 2008.
"We are honored to receive this important national recognition," said Henry L. Meyer III, KeyCorp chairman and chief executive officer, "and we will continue delivering resources that help local people and projects succeed in urban areas, especially through our Community Development Banking segment and the KeyBank Foundation. The need to invest in our neighborhoods and reach out to underserved residents is more crucial than ever."
"As Cleveland's hometown bank since 1825, and the largest bank headquartered in Cleveland, we feel a special responsibility to support the individuals, families and neighborhoods in Northeast Ohio," said Cleveland District President Lisa Oliver. "We are committed to helping our neighborhoods remain vital, helping residents achieve financial stability and success, and helping businesses and nonprofits grow. The partnership with our neighbors is strong, and our CRA rating confirms that we are investing where it's needed most."
Up To 75% Return in 1 Hour. Make Easy Money on EZTrader. Simple & New Trading Arena
While the bank has concentrated on underserved areas for decades, in 2004, it honed its focus to bring banking services to low to moderate income (LMI) consumers, through a program called KeyBank Plus. Today, KeyBank Plus offers a full array of products and services beyond traditional banking, including: the cashing of government and payroll checks for low fees that are below industry standards, free financial education (13 courses called "Learn and Earn"), savings products, a credit repair service called "Loan Assist," money orders, a checkless checking account accessible with an ATM card called Checkless Access, and an array of mortgage products for first time homebuyers. KeyBank Plus, since its inception, has served more than 29,000 customers and processed 133,000 check cashing transactions, totaling $87 million.
Beyond an innovative approach to the consumer, KeyBank brings both debt and equity investments to commercial economic development projects to stabilize and revitalize neighborhoods and provide affordable housing. Those investments include construction lending, permanent financing, working capital lines, lines of credit, tax credit financing and equity investment. Through its Community Development Lending segment, Key has financed the construction of more than 79,000 affordable housing units, designed for individuals who earn less than 60 percent the average median income in the United States. Currently, Key has a total of $2.2 billion extended in underserved communities throughout its 14-state footprint.
"We have developed a business model that is both of service to the community and viable for us. We meet our compliance requirements, but then consistently aim to go beyond compliance to full commitment," said Bruce Murphy, president of Key's Community Development Banking segment. "In the end, we strike a balance between 'mission and margin'."
Other factors that led to Key's "outstanding" rating include Key's commitment to supplier diversity and focus on philanthropy. Key spends 14 percent of its overall vendor costs with minority- and women-owned businesses (M/WBEs), versus the industry average of 4 percent, and, since 2001, has spent more than half a billion dollars with M/WBEs. Through the KeyBank Foundation, KeyCorp distributed more than $18 million to nonprofits in 2008 alone.
Significant community achievements specific to Key's Cleveland District include:
-- KeyBank currently has more than $269 million in loans and more than $72 million in equity extended to local development projects. -- 9,500 individuals have benefitted from nontraditional bank products through KeyBank Plus. -- 9,555 individuals have taken Key's free financial education courses. -- In 2009, Key's free tax preparation day, Super Refund Saturday, helped return $797,056 in refunds to low- and moderate-income residents. -- From 2004-2008, KeyBank gave more than $19 million to local nonprofits. -- Neighbors Make the Difference Day, which started as a beach cleanup in 1993, has evolved into an annual bank-wide day of volunteerism in local neighborhoods. In 2009, more than 2,500 employees from the Cleveland area volunteered on this day. -- Key has financed 7,999 affordable housing units in the Cleveland District. -- Key spent more than $15 million with M/WBEs between 2004 and 2008. -- KeyBank is the top contributor to the United Way in Cleveland.
Beyond an innovative approach to the consumer, KeyBank brings both debt and equity investments to commercial economic development projects to stabilize and revitalize neighborhoods and provide affordable housing. Those investments include construction lending, permanent financing, working capital lines, lines of credit, tax credit financing and equity investment. Through its Community Development Lending segment, Key has financed the construction of more than 79,000 affordable housing units, designed for individuals who earn less than 60 percent the average median income in the United States. Currently, Key has a total of $2.2 billion extended in underserved communities throughout its 14-state footprint.
"We have developed a business model that is both of service to the community and viable for us. We meet our compliance requirements, but then consistently aim to go beyond compliance to full commitment," said Bruce Murphy, president of Key's Community Development Banking segment. "In the end, we strike a balance between 'mission and margin'."
Other factors that led to Key's "outstanding" rating include Key's commitment to supplier diversity and focus on philanthropy. Key spends 14 percent of its overall vendor costs with minority- and women-owned businesses (M/WBEs), versus the industry average of 4 percent, and, since 2001, has spent more than half a billion dollars with M/WBEs. Through the KeyBank Foundation, KeyCorp distributed more than $18 million to nonprofits in 2008 alone.
Significant community achievements specific to Key's Cleveland District include:
-- KeyBank currently has more than $269 million in loans and more than $72 million in equity extended to local development projects. -- 9,500 individuals have benefitted from nontraditional bank products through KeyBank Plus. -- 9,555 individuals have taken Key's free financial education courses. -- In 2009, Key's free tax preparation day, Super Refund Saturday, helped return $797,056 in refunds to low- and moderate-income residents. -- From 2004-2008, KeyBank gave more than $19 million to local nonprofits. -- Neighbors Make the Difference Day, which started as a beach cleanup in 1993, has evolved into an annual bank-wide day of volunteerism in local neighborhoods. In 2009, more than 2,500 employees from the Cleveland area volunteered on this day. -- Key has financed 7,999 affordable housing units in the Cleveland District. -- Key spent more than $15 million with M/WBEs between 2004 and 2008. -- KeyBank is the top contributor to the United Way in Cleveland.
No comments:
Post a Comment