City of Boston 2015 Linked Deposit Banking Report to the Mayor

Disclaimer

Theinformationpresentedinthesereportsisnot,norshoulditbeconstruedas,anassessmentofthefinancialconditionofthesubjectinstitutions.Neitherdoesanyreportrepresentananalysis,conclusion,oropinionoftheTreasuryDepartmentorBankIQconcerningthesafetyandsoundnessofafinancialinstitution.Thedatapresented in the reports has been compiled from a number of federal regulatory and state regulatoryagencies.Thedatasocompiledmaynotnecessarilyreflectcurrentactivitybecauseofdelaysresultingfromthetimerequiredtocollect,tabulate,andpublishthedata.WhiletheCityandBankIQbelievethattheyhaveusedthemostrecentdataavailableinthepreparationofthesereports,becauseofreportingdelays,thedatacontainedhereinmaynotreflectcurrentcircumstances.Additionally,statisticaldataareapproximationsandgeneralizationssubjecttovarioussourcesoferrorinherentinthestatisticalprocess,andmayberevisedonthebasisofadditionaldata.Thedatacontainedhereindescribepastactivityandarenotpresentedwithaviewtopredictingfutureresultseitherinparticularcategoriesoringeneral.ThesourcesusedbytheCityandBankIQtocompilethedata,whicharecitedherein,shouldbecheckedtoensurethatthedatahavenotbeenamendedorrevisedsubsequenttothedatehereof.

PreparedAugust2018byBankIQ

Coverphotos:©2000, Photos To Go

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ABOUT THIS DOCUMENT ThisExecutiveSummaryprovidesahigh‐levelbriefoftheCityofBoston2016LinkedDepositBankingReporttotheMayor.ThisdocumentcontainsanintroductiontotheoveralllendingenvironmentinBostonin2016;asummaryofthetrendsimpactinglendingandhousinginBostonin2016;andsummaryoverviewsofthe18banksreviewedindetailinthefullreport.

Thisdocumentoffersonlyabriefprécisofthe2016LinkedDepositBankingReport.Thefullreportprovidesin‐depthdataandanalysisoftheperformanceofBoston’sbanksinmeetingthecommunity’slendingneeds,includingbank‐by‐bankanalysisfor18banks;ananalysisofsmallbusinesslendinginBoston;andHMDAloaninformationbycensustractinSuffolkCounty.

Newtothe2016reportareCommerceBank&TrustofWorcester,MassachusettsandPeople’sUnitedBankofBridgeport,Connecticut.Becausethesebanksarenotpartofthehistoricaldatacontainedinthisreport,dataforthesebanksarenotpartofthe“TrendAnalysis”formortgageinformation.Datafortheseinstitutionsisincludedinthe“SmallBusinessTrend”sectionofthisExecutiveSummary(pages3and4).

CONTENTS 

ExecutiveSummary2016 p.1

BostonMortgageLendingTrends2016 p.3

SummaryInformationbyBank p.5

AboutBankIQ p.16

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About This Report Since1999,BankIQhaspreparedtheLinkedDepositBankingReporttotheMayor,whichreportsannuallyontheresidentiallending,smallbusinesslending,andcommunitydevelopmentpracticesofthegroupofbankseligibletoprovidebankingservicestotheCityofBoston.

ThereportwascreatedinaccordancewithCityofBostonMunicipalCoderequirementsthatanyinstitutionwishingtocontractwiththeCitytoprovidebankingservicesortobecomeacitydepositoryshallannuallydiscloseinformationonitsloanactivityandcommunitydevelopmentparticipationandservices.

ThisreportisintendedtoassistCityofficialsastheycomparetheactivitiesandperformanceofbanksinordertohelpensurethatCitymoniesareinvestedininstitutionsthatcontributepositivelytotheBostoncommunity.  

CRA and HMDA Legislation and Reporting Foreachbankcoveredinthisreport,theLinkedDepositBankingReporttotheMayorincludesratings,information,andanalysisdrawnfromtheinstitution’smostrecentCRAperformanceevaluation.ThereportalsodrawsonrecentHMDAdatatoprovideanoverviewoflendingratesandpatternsforeachofthebankscoveredinthereport,aswellasaggregateperformanceforallreportingfinancialinstitutionsintheBostonMSA.

TheCommunityReinvestmentAct(CRA)providesaframeworkforfinancialinstitutions,stateandlocalgovernments,andcommunityorganizationstojointlypromotebankingservicestoallmembersofacommunity,includingthoseinlow‐andmoderate‐incomeneighborhoods,thatareconsistentwithsafeandsoundbankingoperations.TheCRArequiresthateachinsureddepositoryinstitution'srecordinhelpingmeetcommunitycreditmustbeevaluatedperiodicallyandmadeavailabletothepublic.

TheHomeMortgageDisclosureAct(HMDA)requiresmanyfinancialinstitutionstomaintain,report,andpubliclydiscloseinformationaboutmortgageapplicationsreceivedandtheinstitution’sactiononthoseapplications.TheActalsorequiresmostlenderstoidentifytherace,sex,andincomeofloanapplicantsandborrowers.ThedatareportedunderHMDAareintendedtoenablegovernmententitiesandthepublicatlargetodeterminewhetherfinancialinstitutionsareservingthehousingneedsoftheircommunities,aswellastoaidinidentifyingpossiblediscriminatorylendingpatterns. 

Additional Sources TheLinkedDepositBankingReporttotheMayorutilizesinformationdrawnfromCRAperformanceevaluationsandHMDAdatawithadditionaldetailsfrombanks’

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websites,annualreports,newsreleases,andotherpublications.ThereportalsoincludesdatafromtheFFIECInstitutionDirectoryandtheMassachusettsOfficeofConsumerAffairs&BusinessRegulation,DivisionofBanks.  

Covered Banks The2016LinkedDepositBankingReporttotheMayorcontainsinformationon2016mortgagelendingratesandpatternsforeachofthefollowing18banks:

BankofAmerica,N.A. BNYMellon,N.A. BlueHillsBank BostonPrivateBank&TrustCompany CathayBank CenturyBankandTrustCompany CitizensBank,N.A.(formerlyRBSCitizens,N.A.) CommerceBank&Trust(addedin2016report) CommonwealthCooperativeBank EastBostonSavingsBank EasternBank JPMorganChaseBank,N.A. OneUnitedBank People’sUnitedBank.N.A.(added2016report) RadiusBank(formerlyFirstTradeUnionBank) SantanderBank,N.A.(formerlySovereignBank) TDBank,N.A. WebsterBank,N.A.

Foreachbank,thereportpresentsageneraloverviewofthebank’ssize,staffing,andoperations,aswellasdetailedinformationonCRAratingsandrelatedcommunitylending,investment,service,anddevelopmentactivities.Eachbank’sprofileconcludeswithaseriesofchartsandgraphsthatprovideadditionaldetailsonthebank’slendingactivitiesfor2016.

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State of Banking in the City of Boston 

2016 Foreclosure Update 

Inthedecadesincethefinancialcrisis,MassachusettshasenactedlegislationincludingtheexpansionoftheCommunityReinvestmentActtoincludenon‐bankMortgageCompanies,andaseriesoflawsaimedatreducingforeclosuresandgrantinggreaterprotectionstohomeowners.Attheheightoftheforeclosurecrisisin2008,mortgageforeclosurepetitionsinBostonnumberedmorethan2,000.Whilethesehistoricallyhighnumbersarebehindus,in2016,comparedto2015,Bostonsawanincreaseof84%inright‐to‐curenoticessenttomortgageborrowersfromlendinginstitutionsandanincreaseinforeclosuresalesto80from47.1Someattributetheincreasetotheregulationsimplementedinresponsetothemortgagecrisisthataddedasmuchastwoyearstotheforeclosureprocess,therebyaddingbacklognumberstonewfilings.InMassachusetts,forexample,61%ofallloansactivelyinforeclosureasoftheendof2016wereoriginatedbetween2004and2008.2

Lending to Minorities and Low‐ and Moderate‐Income Borrowers 

In2016,Bostonwasamongonlyfivecitieswhichaccountedfor43.9%ofallloanstoblacksinMassachusetts.3Since2012non‐FHAloanstoblackandLatinoborrowershavesteadilyincreased.Atthesametime,theoverallshareofFHAhomeloanstoblackswas35%and39%toLatinos,whileonly7%forwhites.DenialratesforblackandLatinoborrowersfornon‐FHAloanswasmuchhigherthatthecorrespondingdenialratesforwhites.InBoston,thedenialratefornon‐FHAloanswas16.6%forblacks,9.5%forLatinosand4.7%forwhites.4

1www.mass.gov2www.attomdata.com.3ChangingPatternsXXIV.4Ibid

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OverallforBoston,theshareofloanstolow‐andmoderate‐incomeborrowershasdeclinedto16.2%in2016fromitshighof36.3%in2009.5Alow‐incomefamilyintheassessmentareaisafamilywithanincomeof$50,000orlower.Theseborrowersareunlikelytoqualifyforamortgageunderconventionalunderwritingstandards,especiallyconsideringthe2016medianhousingvalueofmorethan$450,000insidetheassessmentarea.*FHAloansareloansinsuredbytheFederalHousingAdministration.Whileareasonableoptionforthoseunabletoobtainaconventionalloan,FHAloansaretypicallycostlierandcanindicatealackofavailabilityofconventionalloans.6

Mortgage Lending Trends 20167 

The16bankscoveredinthisreportoriginatedapproximately342moreHMDAMortgageLoansin2016thanin2015.Thisrepresentsa13%increaseover2015.Originationshaddecreasedbetween2015and2014followingathree‐yearperiodofcontinuedgrowth.

Theproportionofapplicationsthatresultedinoriginationsbetween2016

and2015wasroughlyequalhoweverthisnumberhasincreasedsteadilyfrom70%in2010to77%in2016.

Mortgageapplicationsbyminorityapplicantshaveheldsteadysince2007as

apercentageoftotalapplications,ataround30%.

Theloanoriginationrateforminorityapplicantshasrisensteadilyfrom65%in2010to74%in2015and73%in2016.Thispercentagecontinuestobelessthantheoriginationratefromallapplicantswhichwasof77%in2016.

Thenumberoflow‐incomeHMDAmortgageapplicationsremainedsteady

from2008to2013,with1200to1500applicationseachyear,beforedroppingslightlyin2014to1,040and1033in2015.Thisnumberrosein2016to1093.

Theoriginationrateforlow‐incomemortgageapplicationsrosefrom57%in

2007to65%in2015and68%in2016,butstilllagswellbehindthe78%aggregateoriginationrate.

5Ibid.6ChangingPatternsXXIV.7MortgageTrendinformationdoesnotfactorindataforCommerceBank&TrustandPeople’sUnitedBank,sincethesebankswereaddedtothereportin2016,datapriorisunavailable.

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The16banksprofiledinthisreportreceived15%ofthemortgageapplicationssubmittedinBostonin2016,andmade15%oftheoriginationsbynumber.

Small Business Lending Trends 20168 

ThetotalnumberofsmallbusinessloansoriginatedinSuffolkCountyincreasedfrom19,448in2015to22,452in2016.Smallbusinessloandollarsalsoincreased,from$710millionin2015to$835millionin2016.

2016sawhigherproportionsofloanstolow‐,moderate‐,andmiddle‐income

censustractswithalowerproportionextendedinupper‐incomecensustracts.

The13banksprofiledinthisreportoriginated$395millioninsmallbusiness

loansinBostonin2016,totaling47.3%ofthetotalsmallbusinessloandollarsoriginatedinthearea.

ThepercentageoftotalBoston‐areasmallbusinessloandollarsoriginatedby

thebanksprofiledinthisreportdeclinedfrom2011to2015,from53%ofallsmallbusinessloandollarsto44%.In2016,thepercentageincreasedto47.3%.

8Seethe2016SmallBusinessLinkedDepositBankingReporttotheMayorforthelistofCRA‐reportedSmallBusinessLenderscontainedinthisreport.Ofthe18bankscovered,13havereportedSmallBusinessdata.

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Bank of America, N.A. BankofAmericaisa$2.2trillionfull‐serviceinterstatebankheadquarteredinCharlotte,NorthCarolina.BankofAmericaservices57millionconsumerandsmallbusinessrelationships.Communitydevelopmentinitiativesareamajorfocusofthebank,particularlyinitsroleasadeveloperofaffordablehousing.Thebankmaintainsapproximately4,600retailbranches.

Overall CRA Rating for Boston MSA (2011): OUTSTANDING 

Lending Test Rating for Boston MSA: HIGH SATISFACTORY BankofAmericaisnationallyrecognizedasaleaderinprovidingloansforaffordablehousing.Thebank’slendingperformanceintheBostonMSAwasratedHighSatisfactory,anddisplayedgooddistributionofloansamonggeographiesandofborrowersofdifferentincomelevelsthroughoutitsassessmentareas.However,forhomepurchaseloans,thepercentagesofthebank’sloanstoLMIindividualsarebelowthepercentageofthesefamiliesintheassessmentarea.

Investment Test Rating for Boston MSA: OUTSTANDING Overall,BankofAmerica’sinvestmentactivityreflectedexcellentresponsivenessintheassessmentareas.ThebankdemonstratedsignificantleadershipinitsqualifiedinvestmentactivitiesduringtheCRAassessmentperiod.

Service Test Rating for Boston MSA: OUTSTANDING BankofAmericaprovidedanexcellentlevelofcommunitydevelopmentservicesduringtheCRAassessmentperiod.Thebank’sprovisionofretailservicesshowedexcellentresponsivenesstothebankingneedsofgeographiesandindividualsofdifferentincomelevels.

BankofAmericaoriginated475homemortgageloansinBostonin2016,including11low‐incomeloans,makingitoneofthebiggesthomemortgagelendersinBoston.Thebankoriginated3488smallbusinessloansin2016,totaling$85.5million—10.2%oftotalsmallbusinessloandollarsinSuffolkCounty.

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Blue Hills Bank BlueHillsBankisafull‐servicecommunitybankheadquarteredintheHydeParkneighborhoodofBoston.Thebank’sassetstotal$2.5billion.In2015,loanssecuredbyone‐tofour‐familyresidentialpropertiesmadeup50.8%ofthebank’sloanportfolio.

Overall CRA Rating (2015): SATISFACTORY  

Lending Test Rating: SATISFACTORY BlueHillsBank’soveralllendingvolumeduringtheCRAreviewperiodreflectedadequateresponsivenesstoassessment‐areacreditneeds.Thebank’shomemortgagelendingdisplayedadequateresponsivenesstotheneedsoflow‐andmoderate‐incomeborrowers.

Investment Test Rating: OUTSTANDING BlueHillsBankmadeanexcellentlevelofqualifiedcommunitydevelopmentinvestmentsandgrantsduringthereviewperiod.

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Service Test Rating: HIGH SATISFACTORY TheCRAevaluationfoundthatthebank’sservicedeliverysystemswereaccessibletoessentiallyallportionsofthebank’sassessmentarea.BlueHillsBankprovidesarelativelyhighlevelofcommunitydevelopmentservices.

BlueHillsBankoriginated287homemortgageloansinBostonin2016,including8low‐incomeloans.Thebankoriginated18smallbusinessloansin2016,totaling$5.5millionor0.7%oftotalsmallbusinessloandollarsinSuffolkCounty.

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BNY Mellon, N.A. BNYMellon,N.AisaninterstatebankheadquarteredinPennsylvania.Wealthmanagementisthecorebusinessofthebank,whichconductslimitedlendingactivitiesprimarilyasanaccommodationtotheirwealthmanagementandprivatebankingcustomers.Loanssecuredbyone‐tofour‐familyresidentialproperties($5.8billion)madeup49%ofthebank's$15.2billionnetloansandleases.In2016,BNYMellonhadtotalassetsof$24.4billion.

Overall CRA Rating for Massachusetts (2013): OUTSTANDING Duringtheassessmentperiod,BNYMellondemonstratedaveryhighlevelofCommunityDevelopmentloans,services,andqualifiedinvestmentsinrelationtoitscapacityandopportunities,giventhehighlycompetitiveCommunityDevelopmentenvironmentintheassessmentareaduringtheevaluationperiod.Thebankdemonstratedrareuseofinnovativeorcomplexcommunitydevelopmentinvestments,loans,andservices.Finally,thebankalsodemonstratedadequateresponsivenesstocreditandcommunitydevelopmentneedsintheassessmentarea.Severalcommunitydevelopmentloans,qualifiedinvestments,andcommunitydevelopmentservicesprovidedaffordablehousingtargetedtolow‐andmoderate‐incomeindividuals,whichwereindirectresponsetoidentifiedcommunityneeds.

In2016,BNYMellonoriginated48HMDAloansinBoston.Nolow‐incomeloanswereoriginatedbythebankin2016.

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Boston Private Bank & Trust Company BostonPrivateBankisa$7.8billionwealthmanagementandprivatebankingcompanyheadquarteredinBoston.Althoughestablishedasawealthmanagementcompany,thebankhasdevelopedastrongcommunitybankingorientationandhasdemonstratedapositivecommitmenttothecommunitiesinwhichitoperates.

Overall CRA Rating for Massachusetts (2014): OUTSTANDING 

Lending Test Rating for Massachusetts: HIGH SATISFACTORY BostonPrivateBank’slendingactivityduringtheCRAevaluationperiodreflectedgoodresponsivenesstotheassessmentarea’screditneedsandwasbetterthanthebank’soverallLendingTestperformance.Duringtheassessmentperiod,thebankachievedgood

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dispersionofhomemortgageloansthroughouttheassessmentarea,particularlyinlow‐andmoderate‐incometracts.Thebankmadeextensiveuseofinnovativeandflexiblelendingprogramstohelplower‐incomeindividualsachievehomeownership.BostonPrivateBankisaleaderinfundingcommunitydevelopmentloansintheassessmentarea.

Investment Test Rating for Massachusetts: OUTSTANDING BostonPrivateBankhadasignificantlevelofcommunitydevelopmentinvestmentsduringtheevaluationperiod.Thebank’squalifiedinvestmentsdemonstratedanexcellentresponsivenesstotheassessmentarea’screditandcommunitydevelopmentneeds.Inaddition,thebankmadeextensiveuseofinnovativeorcomplexinvestmentstosupportcommunitydevelopmentinitiatives.

Service Test Rating for Massachusetts: HIGH OUTSTANDING Duringtheassessmentperiod,thebank’sperformanceundertheServiceTestwasstrongerthanoverallperformance.Membersofthebank’sstaffareextensivelyinvolvedincommunitydevelopmentactivities.Thebank’ssystemsfordeliveringretailbankingserviceswerereasonablyaccessibletoessentiallyallportionsoftheassessmentarea.

In2016BostonPrivateBankoriginated169HMDAmortgagesinBoston,including11low‐incomeHMDAloans.BostonPrivateBankoriginated93smallbusinessloansinBostonin2016foratotalof$35.4million,or4.2%ofallsmallbusinessloandollarsinBoston.

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Cathay Bank CathayBankisan$14.5billioncommercialbankheadquarteredinLosAngeles,California.ThebankprimarilyoperatesinCaliforniamarketswithaconcentrationofChinese‐Americanindividualsandbusinesses,andisprimarilyacommerciallender.CathayBankoperatesonebranchinMassachusetts;thebank’sMassachusettsactivitiesaccountforonlyaminorportionofoverallactivities.

Overall CRA Rating for Massachusetts (2016): SATISFACTORY 

Lending Test Rating for Massachusetts: LOW SATISFACTORY CathayBank’slendinglevelsduringtheCRAevaluationperiodreflectedanadequateresponsivenesstoBoston’screditneeds,thoughthebank’slevelofhomemortgagelendinginBostonwasconsistentlylow.ThegeographicdistributionofsmallbusinessloansreflectspoorpenetrationthroughouttheBostonassessmentarea.

Investment Test Rating for Massachusetts: OUTSTANDING CathayBankhadanexcellentlevelofqualifiedcommunitydevelopmentinvestmentsandgrantsinBostonduringthereviewperiod.CathayBankmadeorhelpqualifiedinvestmentstotaling$12.7millionduringthereviewperiod.Thebankmakesextensiveuseofcomplexinvestmentstosupportcommunitydevelopmentinitiatives,includingaffordablehousing.

Service Test Rating for Massachusetts: LOW SATISFACTORY Giventhebank’slimitedpresenceinMassachusetts,CathayBankprovidedanadequatelevelofqualifiedcommunitydevelopmentservicesinBostonduringtheassessmentperiod.Asignificantmajorityofthebank’scommunitydevelopmentservicesduringthistimefocusedoncommunityservicestolow‐andmoderate‐incomeindividuals.

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CathayBank’sHMDAlendinglevelsincreasedin2016,to29totalloansoriginatedfromsevenloansoriginatedin2015.Thebank’slow‐incomelendingduringthisperiodremainedatzerofor2014,2015and2016.CathayBankoriginatedsevensmallbusinessloansinBostonin2016foratotalof$2.2millioninsmallbusinessloandollars.

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Century Bank and Trust Company CenturyBankisa$4.5billioncommercialbankheadquarteredinMedford,Massachusetts.CenturyBankoperates28branchesin19Massachusettscitiesandtowns.In2016,one‐tofour‐familyresidentialmortgagesaccountedfor23%ofthebank’snetloansandleases.

Overall CRA Rating (2014): HIGH SATISFACTORY  

Lending Test Rating: HIGH SATISFACTORY DuringtheCRAevaluationperiod,CenturyBank’slendingactivityreflectedgoodresponsivenesstocreditneedsinitsassessmentarea,consideringthesizeoftheinstitutionandthelevelofcompetitionwithintheassessmentarea.CenturyBank’sloansreflectedgoodpenetrationamongindividualsofdifferentincomelevels,includinglow‐andmoderate‐income.Thebankalsomadearelativelyhighlevelofcommunitydevelopmentloans.

Investment Test Rating: HIGH SATISFACTORY ThelevelofqualifiedinvestmentsmadebyCenturyBankissignificantlyhigherthanthepreviousexamination.ThebankhadasignificantlevelofqualifiedcommunitydevelopmentinvestmentsduringtheCRAevaluationperiod;however,thebankonlyoccasionallyusesinnovativeand/orcomplexinvestmentstosupportcommunitydevelopmentinitiatives.

Service Test Rating: HIGH SATISFACTORY CenturyBankeffectivelydeliversretailbankingandcommunitydevelopmentservices,includingfinancialexpertiseforcommunitydevelopmentgroups,withintheassessmentarea.Thebank’sservicedeliverysystemswerereadilyaccessibletoessentiallyallportionsoftheassessmentareaduringtheevaluationperiod.

In2016,CenturyBankoriginated29HMDAloansinBoston,comparedto36originatedin2015.Thebankoriginatedtwolow‐incomeHMDAloansinBostonin2016,consistentwithhistoricallendinglevels.CenturyBankoriginated67smallbusinessloansinBostonin2016,totaling$13.9million.

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Citizens Bank, N.A. (Formerly RBS Citizens, N.A.) CitizensBankisa$147billionfull‐servicebankheadquarteredinProvidence,RhodeIsland.Thebank’sprimaryfocusisretailbanking,withanemphasisonmortgageandconsumerlending.CitizensBank’slargestmarketistheBoston‐Cambridge‐QuincyMultistateMetropolitanArea(MMA).

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Overall CRA Rating for Boston MSA (2012): SATISFACTORY WithintheBostonMSAtheCRAevaluationfocusedontheBoston‐QuincyMetropolitanDivision(MD),whichiscomprisedofSuffolk,Norfolk,andPlymouthcounties.

Lending Test Rating for Boston MSA: HIGH SATISFACTORY CitizensBank’slendingactivityintheBoston‐QuincyMetropolitanDivisionduringtheevaluationperiodwasexcellent.Thebank’sdistributionofhomemortgageloanstolow‐andmoderate‐incomegeographiesandborrowerswasconsideredgood,aswasdistributionofsmallbusinessloans.

Investment Test Rating for Boston MSA: HIGH SATISFACTORY Thebank’sperformanceintheBoston‐QuincyMetropolitanDivisionduringthereviewperiodwasconsideredgood.Asubstantialmajorityofthedollarvolumeofthebank’sinvestmenttransactionswasfocusedonaffordablehousing,aprimarycreditneedinthearea.ThebankalsomakescharitablegrantstoBostonorganizationsworkingoncommunityrevitalization.

Service Test Rating for Boston MSA: OUTSTANDING CitizensBank’sperformanceintheBoston‐QuincyMetropolitanDivisionduringtheCRAassessmentperiodwasconsideredexcellent.Thebank’sservicedeliverysystemswereaccessibletogeographiesandindividualsofdifferentincomelevels,andthebankprovidedanexcellentlevelofcommunitydevelopmentservices.

CitizensBankoriginated371HMDAloansinBostonin2016,including16low‐incomeHMDAloans.Thebank’slevelofHMDAlendingincreasedfrom295originationsis2015.CitizensBankhashistoricallybeenamongthetopSBAlendersinMassachusetts,andrankedamongthetop10in2015,whenitoriginated565smallbusinessloansinBoston,totaling$34.8million.Thisrepresents4.2%oftotalsmallbusinessloandollarsinBoston.

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Commerce Bank & Trust CommerceBank&Trustisa$2.2billioncommercialbankheadquarteredinWorcester,Massachusetts.ThebankoperatesthreebranchesinBostonandin2016wasprimarilyacommerciallender.In2017CommerceBank&TrustwasacquiredbyBerkshireHillsBancorp,Inc.andpendingfinalizationoftheacquisitionin2018retainsthenameCommerceBank.ThisreportandthemostrecentCRAdocumentprovideanoverviewofthepre‐acquisitionorganization.

Overall CRA Rating (2014): SATISFACTORY DuringtheCRAevaluationperiod,CommerceBankhadanadequaterecordofhelpingtomeetthecreditneedsofitsassessmentarea,includinglow‐andmoderate‐incomeneighborhoods.

Lending Test Rating: SATISFACTORY CommerceBankdidnotentertheBostonassessmentuntilitsacquisitionofMercantileinAugust2012.Giventhelimitedtimeinthearea,smallnumberofbranches(three),andlevelofcompetition,theperformanceintheBostonassessmentareareflectsadequateresponsiveness.

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Investment Test Rating: SATISFACTORY TheSatisfactoryratingisforthecombinedassessmentareasincludingtheBostonandWorcesterMetropolitanStatisticalAreas.CommerceenteredtheBostonassessmentareaastheresultoftheacquisitionofMercantileBankinAugust2012.Asdescribedinthe2014CRAevaluationareviewoftheBank’squalifiedinvestmentsin2013and2014revealednoinvestmentsandthelevelofqualifiedinvestmentswasdescribedaspoor.

Service Test Rating: HIGH SATISFACTORY TheBankmaintainsthreebranchesandfourATMsinBoston.Twobranchesarelocatedinlow‐incomecensustractsandonebranchislocatedinamoderate‐incomecensustract.

CommerceBank&Trust’slendinglevelsincreasedfrom2015to2016.In2015,thebankoriginatednoHMDAloans,ascomparedto2in2016.Thebankoriginatednolow‐incomeHMDAloansin2016.Thebankoriginated221smallbusinessloansin2016inBoston,totaling$62.6millionor7.5%ofthetotalbusinessloandollarsintheBostonarea.

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Commonwealth Cooperative Bank CommonwealthCooperativeBankisa$183millionstate‐charteredcooperativebankheadquarteredinBoston,Massachusetts.ThebankoperatesthreebranchesinBoston,andisprimarilyaresidentiallender.

Overall CRA Rating (2017): SATISFACTORY DuringtheCRAevaluationperiod,CommonwealthCooperativeBankhadareasonablerecordofhelpingtomeetthecreditneedsofitsassessmentarea,includinglow‐andmoderate‐incomeneighborhoods.

Lending Test Rating: NOT RATED 

Investment Test Rating: NOT RATED 

Service Test Rating: NOT RATED CommonwealthCooperativeBank’slendinglevelsincreasedfrom2015to2016.In2016,thebankoriginated22HMDAloans,ascomparedto7in2015.Thebankoriginatednolow‐incomeHMDAloansin2016.No2015HMDA‐reportablesmallbusinessloandatawasavailableforCommonwealthCooperativeBank.

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East Boston Savings Bank EastBostonSavingsBankisa$4.3billionMassachusetts‐charteredbankheadquarteredinEastBoston.Attheendof2016,thebank’sone‐tofour‐familyresidentialloanstotaled$575.8millionor15%oftotalnetloansandleases.

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Overall CRA Rating (2017): SATISFACTORY 

Lending Test Rating: HIGH SATISFACTORY Overall,thebankshowedgoodresponsivenesstoassessmentareacreditneeds.Thebank’slendinginlow‐incomecensustractsincreasedbynumberandoverallpercentagein2016

Investment Test Rating: SATISFACTORY EastBostonSavingsBankhasanadequatelevelofqualifiedinvestments,althoughitrarelyusesinnovativeorcomplexinitiatives.Investmentsprovidedadequateresponsivenesstocreditandcommunitydevelopmentneedsintheassessmentarea.

Service Test Rating: HIGH SATISFACTORY EastBostonSavingsBank’sdeliverysystemsareaccessiblethroughoutitsassessmentarea,anditsrecordofopeningandclosingbranchesduringtheevaluationperiodimprovedaccessibility,particularlyinlow‐andmoderate‐incomeneighborhoods.Duringtheexaminationperiod,thebankopenedfournewbranchesatthefollowinglocations:twoinBostonandtwoinBrookline.Inaddition,thebankstarteditsmobilebranchin2016.Thebankhasnotclosedanyretailbranchessincethelastevaluation.

EastBostonSavingsBankoriginated94HMDAloansinBostonin2016,andnolow‐incomehomemortgageloans.Thebankoriginated41smallbusinessloansin2016inBoston,totaling$23.4million.

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Eastern Bank  EasternBank,foundedin1818,istheoldestandlargestmutualbankintheUnitedStates.Thebankhas$9.8billioninassetsandisheadquarteredinBoston.27.4%ofthebank’sloanportfolioiscomprisedofone‐tofour‐familyresidentialmortgages.

Overall CRA Rating (2014): OUTSTANDING 

Lending Test Rating: HIGH SATISFACTORY EasternBank’slendingreflectedgoodresponsivenesstothecreditneedsoftheassessmentarea.Withintheevaluationperiod,thebankoriginated87.5%ofhomemortgagesand94.7%ofsmallbusinessloanswithintheassessmentarea.Thebankexhibitedagoodrecordofservingthecreditneedsofthemosteconomicallydisadvantagedareasandlow‐incomeindividualswithinitsassessmentarea.EasternBankwasMassachusetts’number‐oneSBAlenderin2015.

Investment Test Rating: OUTSTANDINGThebank’squalifiedcommunitydevelopmentinvestmentsanddonationsreflectanexcellentlevelofresponsivenesstothecreditandcommunitydevelopmentneeds.Thebankhastakenaleadershiproleinmakinginvestmentsthroughinnovativeandcomplexmeansnotroutinelyprovidedbyotherinvestors.

Service Test Rating: OUTSTANDING TheBank’sServiceTestperformanceisrated“Outstanding.”Deliverysystemsarereadilyaccessibletoessentiallyallportionsoftheassessmentarea,andservicesaretailoredinawaythatwouldnotinconveniencetheneedsoftheassessmentarea,particularlythelow‐

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andmoderate‐incomegeographiesandindividuals.EasternBankisaleaderinprovidingcommunitydevelopmentservices.

In2016,EasternBankoriginated220HMDAloansinBoston.Thebankoriginatedeightlow‐incomeloansin2016.EasternBankwasamajorsmallbusinesslenderinBostonin2016,with663smallbusinessloanstotaling$93.9million,or11.2%ofallsmallbusinessloandollarsinBoston.

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JPMorgan Chase Bank, N.A. JPMorganChaseBankhasover$2.1trillioninassetsandisoneofthelargestoriginatorsandservicersofhomemortgagesinthecountry.ThebankhasoneofthelargestbranchnetworksintheUnitedStates,thoughitsretailpresenceinMassachusettsisminimal.

Overall CRA Rating (2011): SATISFACTORY JPMorganChaseBank’smostrecentCRAreview,conductedin2011,didnotevaluatethebank’sactivitiesinMassachusetts.Ratingsareprovidedforreferenceonly.

Lending Test Rating: HIGH SATISFACTORY 

Investment Test Rating: OUTSTANDING 

Service Test Rating: HIGH SATISFACTORY In2016,thebankoriginated398HMDAloansandfourlow‐incomeloansinBoston.Althoughthebankisthenation’sfourth‐largestU.S.SmallBusinessAdministration(SBA)lender,its2016smallbusinesslendinginBostonwaslimitedto45smallbusinessloanstotaling$2.1million,or0.2%oftotalsmallbusinessloandollarsinBoston.

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OneUnited Bank OneUnitedBankisaminority‐owned,commerciallycharteredfinancialinstitutionwithcurrentassetsof$654.9million.HeadquarteredinBoston,thebankmaintainsbranchesinMassachusetts,Florida,andCalifornia.Thebank’slendinginMassachusettsandFloridahasbeenextremelylimited,however.

Overall CRA Rating for Massachusetts (2016): NEEDS TO IMPROVE 

Lending Test Rating for Massachusetts: NEEDS TO IMPROVE TheCRAevaluationfoundthatOneUnitedBankdidnotadequatelymeetthecreditneedsoftheMassachusettsassessmentarea.Theevaluationindicatedthatduringtheassessmentperiod,thebank’sperformanceintheMassachusettsassessmentareareflectedapoorpenetrationamongindividualsofdifferingincomelevels.

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Community Development Test Rating for Massachusetts: SATISFACTORY OneUnitedBank’soverallcommunitydevelopmentperformancedemonstratesadequateresponsivenesstocommunitydevelopmentneedsintheBostonarea,primarilythroughqualifieddonationsandcommunitydevelopmentserviceswithanemphasisonfinancialliteracy.

In2016,OneUnitedBankoriginatednoHMDAloansintheBostonMSA.Thebankoriginatednolow‐incomeHMDAloansinBoston.No2016HMDA‐reportablesmallbusinessloandatawasavailableforOneUnitedBank.

People’s United Bank, N.A 

People’sUnitedBank,headquarteredinBridgeport,Connecticut,isasubsidiaryofPeople’sUnitedFinancial,Inc.,adiversifiedfinancialservicescompanywithover$40.2billioninassetsatthecloseofbusinessin2016.

Overall CRA Rating for Boston MSA (2013): NEEDS TO IMPROVE People’sUnitedBankreceiveditsmostrecentCRAratingin2013.Whilethebank’soverallCRAratingwasSatisfactorytheratingfortheBostonMetropolitanStatisticalAreawasNeedstoImprove.People’sbankfirstenteredtheBostonmarketwiththeacquisitionofButlerBankin2010.

Lending Test Rating for Boston MSA: LOW SATISFACTORY People’sUnitedBank’slendingperformanceintheBostonmetropolitanstatisticalareawasratedLowSatisfactory.By2016thelendingactivityintheBostonmetropolitanstatisticalareahadincreasedsubstantially.

Investment Test Rating Boston MSA: SUBSTANTIAL NON‐COMPLIANCE Thebank’sperformanceunderthe2013CRAevaluationInvestmentTestinBostonMetropolitanStatisticalAreaisrated“SubstantialNoncompliance”.However,Sincethe2013CRAevaluationPeople’sUnitedBankhasexpandeditsMassachusettspresenceincharitablegiving,lendingandCommunityDevelopment.

Service Test Rating Boston MSA: LOW SATISFACTORY Thebank’sbranchdistributionin2012and2013wasgood.Brancheswereaccessibletoessentiallyallportionsoftheassessmentareas.Thepercentageofbranchesinmoderate‐incomegeographiesexceededthepercentageofpopulationinthosegeographies.Thebankdidnothavebranchesinlow‐incomegeographies.

In2016,People’sUnitedBankoriginated192HMDAloansinBostonofwhich3werelow‐incomeloans.AsthisisthefirstyearPeople’sUnitedbankisincludedinthisreport,historicaldataisnotavailable.Thebankoriginated52smallbusinessloansin2016inBoston,totaling$6.2millionor0.7%ofloansintheBostonMSA.

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Radius Bank (Formerly First Trade Union Bank) RadiusBankisa$946.5millionfull‐servicebankheadquarteredinBostonwithclientsnationwide.In2016,one‐tofour‐familyresidentialmortgagesmadeup25%ofitslendingportfolio.InOctober2014,thebankchangeditsnametoRadiusBank.ItwasformerlyknownasFirstTradeUnionBank.

Overall CRA Rating for Massachusetts (2014): SATISFACTORY 

Lending Test Rating for Massachusetts: SATISFACTORY Thebank’sdistributionofloansduringtheevaluationperiodreflectedreasonablepenetrationamongindividualsofdifferentincomelevelsandbusinessesofdifferentsizes.

Community Development Test Rating for Massachusetts: SATISFACTORY RadiusBank’scommunitydevelopmentperformanceduringtheassessmentperioddemonstratedadequateresponsivenesstocommunityneedsthroughloans,investments,andservices.Thebank’scommunitydevelopmentinvestmentsandserviceswereconsideredsatisfactory.

In2016,RadiusBankoriginated4HMDAloansinBostonofwhich1wasalow‐incomeloan.No2015smallbusinessloandatawasavailableforFirstTradeUnionBank.

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Santander Bank, N.A.  With$83.1billioninassets,SantanderBankisoneofthecountry’stopretailbanksbydeposits,offeringabroadspectrumofproductsandservicesforpersonal,business,commercialandcorporatebankingcustomers.SantanderBankisthearmthroughwhichSantanderU.S.carriesoutbankingintheUnitedStates.SantanderU.S.ispartoftheSantanderGroup,aninternationalbankinggroupfoundedin1857.In2012,thebankconvertedfromathrifttoanationalbank,andin2013itchangeditsnamefromSovereignBanktoSantanderBank.

Overall CRA Rating for Boston MSA (2013): SATISFACTORY 

Lending Test Rating for Boston MSA: HIGH SATISFACTORY Thebank’sperformanceintheBostonMetropolitanDivisiondemonstratesgoodlevelsoflendingwithgoodresponsivenesstotheassessmentarea’screditneeds.Theuseofuniqueorflexiblelendingprogramsinthisassessmentareawaslimitedduringtheevaluationperiod.SantanderBank’scommunitydevelopmentlendinghadaneutraleffectonthe2013rating.

Investment Test Rating for Boston MSA: NEEDS TO IMPROVE SantanderBank’sInvestmentTestratingfortheCRAevaluationperiodwasLowSatisfactoryforitsnationalactivities,andNeedstoImproveforitsBostonMSAcommunitydevelopmentinvestmentactivities.InvestmentTestperformanceintheBostonMetropolitanDivisionisverypoor.

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Service Test Rating for Boston MSA: LOW SATISFACTORY SantanderBankprovidedapoorlevelofcommunitydevelopmentservicesinBostonduringthereviewperiod.ParticipationinlocalorganizationsincludesleadershippositionswithinthoseorganizationswitheightemployeesintheMetropolitanDivisionservingasboardorcommitteemembersfortenCommunityDevelopmentorganizations.

In2015,theBankoriginated462HMDA‐reportableloansinBoston,including23low‐incomeHMDAloans.No2015HMDA‐reportablesmallbusinessloandatawasavailableforSantanderBank.

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TD Bank, N.A. TDBankisa$246.4billionnationalbank,oneofthe10largestbanksintheU.S.ThebankiswhollyownedbytheToronto‐DominionBankofCanada,oneofthelargestfinancialservicescompaniesinNorthAmerica.Thebankoperates1,270retailbranchesin15statesandtheDistrictofColumbia.

Overall CRA Rating for Boston MSA (2013): OUTSTANDING 

Lending Test Rating for Boston MSA: HIGH SATISFACTORY TDBank’slendingperformanceduringtheCRAreviewperiodisgood.Thebank’soverallleveloflendingactivitywasgood,combinedwithgoodborrowerdistributionandgoodgeographicdistributionforallproductswiththeexceptionofhomerefinanceloansinlow‐incomegeographies.Thebank’shighlevelofcommunitydevelopmentlendingsignificantlyimpacteditslendingrating.

Investment Test Rating for Boston MSA: OUTSTANDING TDBank’soverallinvestmentperformanceduringtheassessmentperiodwasexcellent.Thebank’sperformancewasconsistentlyexcellentthroughoutitsassessmentareasbasedonvolumeofinvestmentsandonmeetingtheneedsofthecommunity.Thebank’svolumeofqualifiedinvestmentswasalsoexcellent.

Service Test Rating for Boston MSA: HIGH SATISFACTORY Duringtheevaluationperiod,TDBankhadexcellentdistributionofbranchesandprovidedagoodlevelofcommunitydevelopmentservicesinBoston.Thebank’scommunitydevelopmentservicesmetabroadrangeofidentifiedneedsinBoston,includinghomemortgageeducationandsocialservicesforlow‐andmoderate‐incomefamilies.

In2016,TDBankoriginated72HMDAloansinBostonofwhich5werelow‐incomeHMDAloans.TDBankisaSmallBusinessAdministrationPreferredLender.Thebankoriginated183smallbusinessloansin2016inBoston,foratotalof$25.1millioninsmallbusinessloandollars.

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Webster Bank, N.A. WebsterBankisamidsizeinterstatebankwith$24.6billioninassets.HeadquarteredinWaterbury,Connecticut,themajorityofthebank’sbusinessinMassachusettstakesplacein

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theBoston‐QuincyMetropolitanDivision(MD),whichaccountsfor91.5%oftotaldepositsinMassachusetts.

Overall CRA Rating for Massachusetts (2014): SATISFACTORY 

Lending Test Rating for Massachusetts: HIGH SATISFACTORY WebsterBank’sBoston‐arealendingduringtheCRAreviewperiodwasconsideredgood.Thebank’shigh‐levelperformanceinoriginatinghomemortgageloansandsmallbusinessloanswascommensuratewithitslimitedpresenceinthestate.Thebank’sBoston‐arealendingwasespeciallystrongconsideringthesignificantcompetitioninthearea.

Investment Test Rating for Massachusetts: OUTSTANDING Thebank’sInvestmentTestperformanceintheBostonMetropolitanDivisionwasconsideredexcellent.InvestmentsmadeduringtheCRAevaluationperiodsupportaffordablehousing.Thebank’sgrantsanddonationsduringthistimefocusedonaffordablehousing,economicdevelopment,communityservicesforlow‐andmoderate‐incomeindividuals,andcommunityrevitalizationandstabilizationefforts.

Service Test Rating for Massachusetts: HIGH SATISFACTORY WebsterBank’sbranchdistributionintheassessmentareawasconsideredgoodinlightofthebank’sratherlimitedpresenceinthearea.Brancheswereaccessibletogeographiesandindividualsofdifferentincomelevels.Thebank’sperformanceinprovidingcommunitydevelopmentservicesintheBostonassessmentareawasconsideredadequate.

WebsterBank’sHMDAlendinginBostonincreasedfrom2014to2016,from114loansin2014to223loansin2016.Thebank’slow‐incomelendingincreased,with2loansin2014and3loansineachof2015and2016.Thebankoriginated37smallbusinessloansinBostonin2016,totaling$6.4million.

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BankIQ 120CoolidgeStreet

Brookline,MA02446‐5808jnoble@bankiq.com

BankIQpreparedthisdocumentfortheCityofBoston.

Withovertwenty‐fiveyears’GovernmentBankingexperience,BankIQisanindependent,woman‐ownedandoperatedbusiness.BankIQspecializesincollecting,analyzing,preparing,anddocumentingFinancialServicesinformationforthePublicSector.

Forfurtherinformation,contactusviaemailatjnoble@bankiq.com