Community Development


Community Reinvestment Act

Approved by Corporate Compliance Committee of the Board of Directors - September 11, 2009.

 

Policy

The Community Reinvestment Act (CRA) was created in 1977, per title VIII of the Housing and Community Development Act. Its purpose is to encourage banks to determine and help meet the needs of individual communities, including the needs of low- and moderate-income neighborhoods in those communities. The board of director perceives the nature and scope of the Community Reinvestment Act to be an effort on the part of government to encourage banks to make credit available to the local community, including low- and moderate-income individuals as well as small or minority businesses, without compromising sound credit judgment. The CRA assessment area, internal management structure, assessment of community credit needs, marketing efforts, products and services offered, and documentation guidelines are critical in compliance with the Community Reinvestment Act. This policy statement summarizes the board of directors' position to deal fairly with all individuals of our community.

All directors, officers, and employees are encouraged to participate in community development activities. These activities include attending local community development workshops and community development-related conferences, participating in credit counseling programs, taking part in home-buyer programs that benefit low- and moderate-income areas, and involving management and staff in community development organizations. Possible options will be investigated.

Specific CRA policy guidelines include the following: 

  • The bank will actively solicit comments from all segments of its community regarding lending, investment, and service opportunities. The bank will also actively solicit information about the market's demographics and any challenges, opportunities, or potential roadblocks to development.
  • The board of directors will ensure that the bank makes every effort to provide the types of products and services its community needs, consistent with sound credit judgment. As part of this effort, directors will review at least annually the distribution of its loan applications by the income level of the geography and by the income level of the borrower.
  • The bank will regularly review the distribution of its loan applications inside vs. outside its assessment area and will take timely action to ensure that a reasonable high percentage of its loans are originated within its community.
  • The bank will ensure a good distribution of its loans to individuals of different income levels and businesses of different sizes.
  • The bank will use flexible and innovative lending practices in a safe and sound manner to address the credit needs of low- and moderate-income individuals and geographies.
  • The bank will conduct periodic training to employees regarding the Community Reinvestment Act.

Embraced by all of the major businesses within Cadence Bank N.A. we focus on six key areas:

  • Small Business ownership. Small businesses are the economic engines of our local communities and Cadence Bank loans and investments are helping small businesses contribute to economic revitalization across our five state footprint.
  • Small Farm ownership. Cadence Bank provides loans for small farms that contribute to economic revitalization across our five state footprints.
  • Mortgage Lending for Affordable Housing. Safe, comfortable housing is a critical need in communities everywhere and Cadence Bank is making it a reality for low- and moderate income and minority individuals and families across our five state footprints.
  • Community and Economic Development. Creating meaningful, long-term partnerships is key to revitalizing neighborhoods in rural and urban low-income areas and elsewhere. We partner with non-profits, community developers and others to promote neighborhood revitalization through loans, grants and direct investments.
  • Service. By partnering with community partners and organizations employees and directors help provide and find solutions to meet the long-term needs of our rural and urban communities. They volunteer countless hours of their time providing necessary resources for these organizations. 
  • Investment. Providing program related investments and grants to organizations that will impact rural and urban communities.

 For more information, contact Bill Stemmler, Cadence Bank CRA Community Development Officer, at 901-312-4763.