KeyBank rated ‘outstanding’ by federal currency officeWritten by Duane Ramsey | | email@example.com
KeyBank was awarded an “outstanding” rating from the Office of the Comptroller of Currency (OCC) for exceeding the terms of the Community Reinvestment Act (CRA) of 1977.
The CRA requires banks to meet the credit needs of low- and moderate-income communities in the U.S. KeyBank is the only national bank among the 50 largest to be rated “outstanding” by the OCC for seven review periods in a row.
“We’re honored and proud to receive our seventh straight outstanding rating for CRA,” said James Hoffman, president of KeyBank’s Michigan/Northwest Ohio District.
“It’s all due to the commitment we have to serve all geographic communities and income levels. We believe all banks have a responsibility of giving back to all the communities and keeping branches open in all the neighborhoods they serve.”
KeyBank’s CRA compliance was rated outstanding through a year-long exam process that rates financial institutions in terms of lending, investment, and services practices. The OCC evaluates mortgages, retail and small-business banking, and community development lending, investments and service for each banking company.
Hoffman said that KeyBank will continue to provide resources that help local people and projects through its Community Development Banking segment and the KeyBank Foundation.
KeyBank has lent nearly $36 million and invested more than $62 million in equity for local projects through its Community Development Lending program. It also has financed the construction of nearly 12,000 affordable housing units in its Michigan/Northwest Ohio district.
Bruce Murphy, president of Community Development Banking at Key, said the bank “meets its compliance requirements but then aims to go beyond compliance to full commitment, striking a balance between mission and margin.”
The KeyBank Foundation distributed more than $18 million dollars to nonprofit organizations, giving $3 million to non-profits in Michigan and Northwest Ohio from 2004 to 2008.
In 2009, 59 individuals took advantage of Key’s free tax preparation day in the local district with more than $116,000 in refunds returned to local residents, according to KeyBank.
More than 330 Key employees volunteered locally for the Neighbors Make The Difference Day in 2009, a bank-wide day of volunteerism in communities it serves.
Another factor leading to its outstanding rating is KeyBank’s commitment to supplier diversity reflected by the bank spending $1.2 million in contracts with minority- and women-owned businesses in this district from 2004 to 2008.
KeyBank spends 14 percent of its overall vendor costs with minority- and women-owned businesses compared to the industry average of four percent. It has spent more than half a billion dollars with those businesses since 2001, according to Key officials.
According to the OCC, banks are assigned one of the four statutory ratings of outstanding, satisfactory, need to improve, or substantial noncompliance. It assesses the CRA performance of banks in an examination every three to four years with Key’s recent exam period covering Jan. 1, 2003 through June, 2008.
Based in Cleveland, KeyCorp has assets of approximately $98 billion, according to the company. It provides investment management, retail and commercial banking, consumer finance, and investment banking products to individuals and companies across the U.S. For more information, visit www.key.com.