Regulators from the OCC analyzed Wachovia’s lending, investing and service activities for the period of Oct. 1, 2000 to June 30, 2003. The merger of First Union National Bank and Wachovia Corp. occurred during this time.
“I’m proud that we earned the highest possible rating for our active involvement in the community” said Ken Thompson, Chairman and CEO. “Our goal is for every community where Wachovia operates to be better because we are there. This rating is the result of our ongoing commitment to creating shared success with our community partners.”
The Community Reinvestment Act was enacted in 1977 to encourage banks to meet the credit needs of all segments of their communities. The act requires that the OCC assess national banks’ distribution of loans, investments and services, particularly in low- and moderate-income communities. The OCC also considers a bank’s community involvement activities when determining its rating.
In its report, the OCC lauded Wachovia for:
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Its high levels of community development lending. During the assessment period, Wachovia supplied more than $3.3 billion in community development loans.
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Its extensive use of Low Income Housing Tax Credits (LIHTC). LIHTC are complex investments that provide equity financing for affordable housing projects. Uniquely, Wachovia makes LIHTC investments directly, rather than through third party intermediaries.
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Its leadership role in the creation of the Section 8 Rental Housing Choice Voucher Program, which allows low-income families to apply Section 8 rental vouchers toward mortgage payments for up to 15 years. Wachovia partnered with Fannie Mae to develop and pilot this innovative mortgage program, which seeks to increase homeownership among low-income families.
“At Wachovia, we recognize that community development is really about people -- people who need a safe place to call home, a job to support their family and the financial know-how to build wealth, said Mike Rizer, Wachovia’s Director of Community Relations. “This ‘Outstanding’ rating confirms that our approach yields results.”
In 2004, Wachovia:
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Provided $25 billion in community loans and investments to revitalize neighborhoods.
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Helped an average of 475 lower-income families buy a home each week.
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Originated almost $25 billion in mortgage loans, with nearly $6 billion in loans directly benefiting lower-income families and neighborhoods.
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Became the Number One small business lender in our markets, with $9.7 billion in loans.
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Received the Fannie Mae Community Lending Hero award for leadership and creativity in addressing low- and moderate-income homeownership issues.
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Provided $11 million in community development grants and in-kind donations.
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Worked with 176 community mortgage partners to provide homeownership counseling and mortgages to more than 1,000 first-time homebuyers.
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Invested $223 million in equity to create more than 5,000 affordable rental-housing units.
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Pledged more than $75 billion over five years in community loans and investments to serve communities affected by the SouthTrust merger.
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Helped more than 77,000 entrepreneurs grow or expand their businesses.
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Created a new $2 million technical assistance program for minority-owned small businesses.
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Helped create more than 1,000 jobs in lower-income communities by lending $124 million to finance New Markets Tax Credit projects.
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Trained more than 10,000 lower-income families and individuals in PC, Internet and money management skills through our financial literacy program. Employee volunteers partnered with community groups to offer classes in English and Spanish.
ABOUT WACHOVIA
Wachovia Corporation (NYSE:WB) is one of the largest providers of financial services to retail, brokerage and corporate customers, with retail operations from Connecticut to Florida and west to Texas, and retail brokerage operations nationwide. Wachovia had assets of $506.8 billion, market capitalization of $80.3 billion and stockholders’ equity of $46.5 billion at March 31, 2005. Its four core businesses, the General Bank, Capital Management, Wealth Management, and the Corporate and Investment Bank, serve 13 million household and business relationships primarily through 3,277 offices in 15 states and Washington, D.C. Its full-service retail brokerage firm, Wachovia Securities, LLC, also serves clients through 693 offices in 49 states and five Latin American countries. Our Corporate and Investment Bank serves clients primarily in 10 key industry sectors nationwide. Global services are offered through 33 international offices. Online banking and brokerage products and services also are available through Wachovia.com.
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