Keybank Receives 7th Consecutive OCC "Outstanding" Rating on Community Reinvestment Act Exam
Key's Alaska Partnerships Help Make Bank the Only One Among the 50 Largest to Achieve this Distinction
ANCHORAGE, Alaska, September 17, 2009 - 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.
"We have a responsibility to support the individuals, families and neighborhoods in Alaska," said Alaska District President Brian Nerland. "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."
Significant community achievements in the Alaska District that contribute to the "outstanding" rating include:
- KeyBank gave more than $1 million to local nonprofits from 2004-2008.
- Volunteerism: Key develops community partnerships that serve the needs of low- and moderate-income communities. Neighbors Make the Difference Day, which started in Alaska as a beach cleanup in 1993, has evolved into a bank-wide day of volunteerism in local neighborhoods. In 2009, more than 64 Key employees from the Alaska District volunteered.
- Key's commitment to supplier diversity is reflected in the fact that Key has spent $514,295.95 in contracts with minority and women business owners.
- KeyBank has financed 237 affordable housing units in the Alaska District.
- KeyBank supports events and organizations important to the Alaska District including: Alaska Federation of Natives, Junior Achievement of Alaska and YMCA.
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. The OCC assesses the CRA performance of a bank in an examination every three to four years, and Key's recent exam period covered January 1, 2003 through June, 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."
Key provides customized financial solutions for individuals earning low and moderate incomes, and works with women business owners, through a program called Key4Women, to provide access to capital, customized solutions, ongoing education, and networking opportunities. For its focus on serving the customer, Key was named a "Customer Service Champ" by BusinessWeek Magazine in 2009.
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 nonprofit organizations in 2008 alone.
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/.
About Alaska District
KeyBank operates 17 branches in the state of Alaska. Cleveland-based KeyCorp is one of the nation's largest bank-based financial services companies, with assets of approximately $98 billion. BusinessWeek magazine recently cited Key as the top-named bank in its Customer Service Champ 2009 edition, ranking us 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/.
Posted: September 17, 2009
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