Bank of America Community Deve ...

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Bank of America Community Development Lending Exceeds $85 Billion

More than $40 million in loans and investments every business hour

SB Informer
Tuesday, May 23, 2006; 01:49 AM

WASHINGTON - Bank of America announced that it loaned and invested $85.1 billion in 2005 for community development nationwide. The volume of lending and investing equaled more than $40 million delivered every business hour in 2005. The bank reported the first-year results of its 10-year, $750 billion goal for community development lending and investment.

"Our role as a national leader in community development is to provide the financial resources that empower people and organizations to create positive change in underserved neighborhoods," said Kenneth D. Lewis, chairman and chief executive officer of Bank of America. "We believe, very simply, that it is these people and organizations working together that build strong communities, and that our company does well when we strengthen all the communities we serve."

Bank of America announced the $750 billion lending and investment goal in January 2004, prior to the merger of Bank of America and FleetBoston. The 10- year goal includes $500 billion for affordable housing, $125 billion for small business, $50 billion for economic development and $75 billion for consumer loans.

"We take our responsibility to create economic opportunity very seriously," Lewis said. "Through our loans and investments for affordable housing and home ownership, small business, and economic development, we help lay the foundations for individuals and families to reach financial self- sufficiency and for communities to build economic vitality."

Bank of America loaned and invested $37.2 billion for affordable housing and home ownership in 2005. This amount includes loans and investments to finance the construction of multi-family rental and single-family for-sale affordable housing as well as mortgage lending for low- and moderate-income and minority homebuyers.

The bank provided more than $33.2 billion in mortgages to low- and moderate-income borrowers, minority borrowers and borrowers in low-and moderate-income census tracts. Some 61 percent of this mortgage lending - more than $20 billion - went to minority borrowers.

The first year total for small business lending was $17.7 billion. More than 83 percent of the small business loans ($14.7 billion) were for loans or lines of credit of less than $1 million or for government-guaranteed loans. In addition, in 2005, Bank of America was the top provider of SBA-guaranteed loans in the U.S.

In 2005, consumer lending to low- and moderate-income borrowers, and student loans, totaled more than $24.2 billion. The bank provided more than 2.5 million auto, home improvement, and home equity loans. This includes home- related loans for borrowers earning below the median income and auto and consumer loans for borrowers with an annual household income at or below 80 percent of median income. Student loans accounted for 37 percent, or $9 billion, of the total.

Bank of America loaned and invested nearly $6 billion in 2005 for economic development. The amount includes loans and investments that create jobs, revitalized infrastructure, pools of capital and other opportunities in low- and moderate-income, underserved or disadvantaged communities. The bank works closely with community-based nonprofit institutions and other intermediaries to leverage these investments.

"As an organization that works with resident-led, community-based development organizations in the transformation of distressed communities and neighborhoods, LISC has seen first-hand the power of Bank of America in leveraging local market results," said Michael Rubinger, president, Local Initiatives Support Corporation, a long-term national alliance partner with the bank. "We are pleased to have been able to partner with the bank to help fuel that transformation."

Funding for economic development in 2005 included investing in financial intermediaries such as ACCION USA and Opportunity Finance Network. These organizations re-lend to and invest in small businesses, often with micro- loans as small as $500.00.

"The numbers we report today quantify progress toward our goal and fulfill our commitment to accountability," said Monica McDaniel, Bank of America community development executive. "But the numbers are just tools for benchmarking results. The real measure is the impact these loans and investments are having on the lives of our neighbors in the communities where we do business."

For decades, Bank of America has been committed to acquiring, building and rehabilitating affordable housing. The bank has the oldest and largest bank- owned community development corporation as a subsidiary in the country and one of the most extensive teams of community development bankers of any financial institution. In 2005, Bank of America financed, developed or rehabilitated more than 24,000 units of housing, including affordable housing and mixed- income housing in low-and moderate-income neighborhoods.

As part of the $750 billion goal, Bank of America has also earmarked $25 billion to stimulate affordable housing, job creation, and economic opportunity in rural markets and Indian Country. In 2005, nearly 300,000 loans and investments totaling more than $3.9 billion were made in rural and Indian Country communities.

Bank of America

Bank of America is one of the world's largest financial institutions, serving individual consumers, small and middle market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk-management products and services. The company provides unmatched convenience in the United States, serving more than 54 million consumer and small business relationships with more than 5,700 retail banking offices, more than 16,700 ATMs and award-winning online banking with more than 19 million active users. Bank of America is the No. 1 overall Small Business Administration (SBA) lender in the United States and the No. 1 SBA lender to minority-owned small businesses. The company serves clients in 175 countries and has relationships with 98 percent of the U.S. Fortune 500 companies and 79 percent of the Global Fortune 500. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.

http://www.bankofamerica.com/