KeyBank Receives Seventh Consecutive 'Outstanding' Rating from OCC on Community Reinvestment Act Exam
September 16 2009 - 1:31PM
PR Newswire (US)
Key is the Only Bank among 50 Largest to Achieve this OCC
Distinction 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." 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. About KeyCorp Cleveland-based KeyCorp is
one of the nation's largest bank-based financial services
companies, with assets of approximately $98 billion. BusinessWeek
Magazine named Key the top bank in its Customer Service Champ 2009
edition, ranking Key 11th out of the top-25 companies that include
many known for their customer service acumen. Key companies provide
investment management, retail and commercial banking, consumer
finance, and investment banking products and services to
individuals and companies throughout the United States and, for
certain businesses, internationally. For more information, visit
https://www.key.com/. DATASOURCE: KeyCorp CONTACT: Marylee Gotch of
KeyCorp, +1-216-689-5254, ; Key Media Newsroom:
http://www.key.com/newsroom Web Site: https://www.key.com/
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