*********ASO News************
News on ASO after the bell today.
biz.yahoo.com
Tuesday July 20, 6:35 pm Eastern Time
Company Press Release
SOURCE: AmSouth Bancorporation
AmSouth/First American Announce New Community Development Corporation and $3.5 Billion Commitment
BIRMINGHAM, Ala., July 20 /PRNewswire/ -- AmSouth Bancorporation (NYSE: ASO - news) and First American Corporation today announced plans to create a new AmSouth Community Development Corporation (AmSouth CDC), along with a five-year, $3.5 billion commitment for serving the needs of small businesses, low-to-moderate-income families and communities, and helping non-profit organizations that are focused on developing stronger communities.
The new entity, modeled after First American's successful Community Development Corporation, will serve the states covered by AmSouth's franchise once AmSouth has completed its planned acquisition of First American.
''AmSouth and First American have independently demonstrated our commitment to serving all segments of our markets and actively supporting efforts to further develop our communities,'' said Stephen A. Yoder, executive vice president and general counsel for AmSouth Bancorporation. ''The creation of the AmSouth CDC and the significant five-year commitment we are making are evidence that we plan to continue and expand our community development programs as a combined company.
Yoder expressed appreciation to several organizations that provided input during the development of the plan. These organizations include, in Alabama, the Alabama New South Coalition, Southern Christian Leadership Conference, Birmingham Urban League, Fair Housing Center of Northern Alabama, Birmingham Community Development Corporation, Community Service Programs of West Alabama, Inc., and the NAACP. In Florida, the organizations include St. Petersburg Neighborhood Housing Services, Inc., Tampa Bay Community Development Corporation and the Tampa Bay Community Reinvestment Corporation. In Tennessee, the organizations include the Chattanooga Neighborhood Enterprises, Inc., Knox Housing Partnership, Economic Venture, Housing Development Corporation of the Clinch Valley, Affordable Housing Resources, Tennessee Network for Community Economic Development, Woodbine Community Organization, Nashville Housing Fund, and the Tennessee minority Supplier Development Council. ''Our continued relationship with these community partners is critical to the success of this initiative,'' Yoder said.
The five-year, $3.5 billion commitment is based on the strong historic performance of AmSouth and First American. Over the past two years, the two banks loaned over $2.8 billion to small businesses of which $697 million were loaned to small businesses located in low-to-moderate-income areas. In addition AmSouth and First American provided $572 million in housing-related loans to families with low-to-moderate incomes and $348 million to families living in low-to-moderate-income areas.
Both banks were evaluated for CRA performance in 1998 and received ''high satisfactory'' lending test evaluations from their respective primary regulators.
The five-year commitment is broken down as follows: $2 billion in small business loans and $1.5 billion in housing-related loans to low-to-moderate- income families and/or geographies.
''Just as important as our combined commitment to community development through lending is the commitment we are making to support the non-profit organizations that are critical to our communities' overall growth and development,'' said Doug Jackson, executive vice president and chief compliance officer for First American.
Programs of the new CDC that will extend beyond lending include:
-- An annual community leaders forum in the combined company's major
markets bringing together bank leaders and non-profit organizations
from across the service area to get input on needs from the non-profit
organizations, provide information to community organizations on the
bank's community investment activities and provide assistance to non-
profit leaders through workshops and seminars to help them better
manage their organizations.
-- A comprehensive home ownership counseling program for consumers,
including topics such as building good credit or repairing poor credit
and responsibilities of home ownership. These would be provided
through partnerships with local non-profit organizations and directly
by the bank's mortgage lending and community development staff.
-- Expanded technical assistance programs for non-profit organizations to
help with initiatives in affordable housing, small business development
and other community development activities.
-- Community development project investments for small business
development, housing-related non-profit organizations, down payment
assistance programs, low-income housing tax credits and corporate
financial contributions.
Both banks have also offered and will continue providing lending programs for small businesses and consumer loan programs that make home ownership more affordable for low-to-moderate-income families. These products and services range from portfolio affordable mortgage and home improvement products to FHA, VA and state housing agency loan programs such as the Tennessee Housing Development Agency, the Alabama Housing Finance Authority, and the Alabama Multi-Family Loan Consortium programs. Most of these programs offer flexible financing and terms to assist low-to-moderate-income families obtain affordable housing.
AmSouth Bancorporation and First American Corporation announced in June an agreement for AmSouth to acquire First American. Pending shareholder and regulatory approval, the combined company, to be called AmSouth, will have 690 branches and 1,350 ATMs in Alabama, Tennessee, Florida, Mississippi, Georgia, Louisiana, Kentucky, Virginia and Arkansas. The combined company will continue to serve low-to-moderate-income customers and communities through direct contact with our community lenders, small business lenders and community development coordinators.
SOURCE: AmSouth Bancorporation
dawg
|
