Public Advocacy Center Touro Law School 225 Eastview Drive, Room 222 Central Islip, NY Phone Fax

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1 Public Advocacy Center Touro Law School 225 Eastview Drive, Room 222 Central Islip, NY Phone Fax May 17, 2017 Federal Reserve Bank of New York Ivan Hurwitz, Vice President 33 Liberty Street New York, New York Via Office of the Comptroller of the Currency Northeastern District Office Director for District Licensing 340 Madison Avenue, 5th Floor New York, NY OCC Control# 2017-NE Docket ID OCC Via RE: Sterling Bancorp s Proposed Acquisition of Astoria Financial Corporation (and Astoria Bank) To Whom It May Concern: Empire Justice Center, American Debt Resources, Central Islip Civic Council, Debt Counseling Corporation, Economic Opportunity Council of Suffolk, Inc., La Fuerza Unida, Long Island Housing Services, Inc., the Mortgage Foreclosure Clinic at Touro Law Center, and SafeGuard Credit Counseling Services, Inc., all with offices in Nassau and/or Suffolk Counties, are sending these comments about Astoria Bank and its proposed acquisition by Sterling Bancorp via Astoria Financial Corporation. As seen by Appendix A: Organizational Summaries, the above-named organizations have years of experience working with consumers, homeowners and small businesses in Nassau and/or Suffolk Counties. INTRODUCTION Astoria Bank is scheduled for a Community Reinvestment Act (CRA) exam that commences in June In light of that fact, we request an extension of the comment period until the CRA

2 exam has been completed. Advocates in New York need to have an opportunity to submit comments on Astoria s performance in underserved communities. Sterling Bank merged with three banks through In 2016, Sterling implemented a CRA Plan covering the period 2016 through The Plan described lending goals for the Bank and for its five Assessment Areas (AAs). The Plan has goals in the following categories and proposed increased lending in: The proportion of its mortgage loans to LMI [low-moderate income] borrowers and in LMI census tracts; The proportion of its multifamily loans in LMI census tracts; The number, amount, and variety of community development loans in its AAs; The proportion of small loans to businesses located in LMI census tracts and businesses with $1 million or less in revenues; The amount of qualified investments and grants that support community and economic development; and The amount and range of community development services provided annually through our branches and by executives and senior officers. 1 The Plan states, Sterling intends to build upon its existing CRA related activities to further strengthen our community reinvestment performance and to enhance our record of helping to meet the credit needs in the communities we serve. 2 Components of a Quality CRA Plan Sterling s Astoria merger application to the OCC, dated April 17, 2017, proposes to expand the CRA Plan through We urge the FRB and OCC to condition approval of the merger on an updated CRA plan with specific measurable goals developed in consultation with community advocates in Long Island. The goals should have measurable targets for the low-moderate income (LMI) community including but not limited to: Mortgage lending (home purchase, refinance and home improvement); Small business loans to businesses in LMI communities and businesses with gross annual revenues less than $1 million; Community development grants and investments; Bank branches; Serving the Limited English Population. 1 Sterling s CRA Plan can be found at: r2dy.pdf. 2 Ibid. 2

3 The application includes a progress report in Public Exhibit 9. The progress report has dollar totals for all loans from The report then breaks out the percentage of loans to various categories such as 1-4 family, multi-family, real estate and commercial loans. The percentage breakouts do not add up to 100% and we assume some categories are inclusive of others. We are therefore unable to determine a breakout of affordable mortgages by category, such as home purchase loans, refinance, and home improvement loans. We do not have information on the number, dollar amount or even percentage of total lending that went to LMI communities, nor is it possible to determine which geographies received the loans. Based on our reading of the current progress report described in the application, it would appear possible for Sterling to meet all of its goals in New York City (NYC) or other parts of New York State (NYS). Given the current information in the CRA plan and the progress report, Long Island (LI) could see a decline or even total disappearance of all LMI lending in affordable mortgages, small business lending, and community development investments. We are not suggesting that Sterling intends to exclude LI from its LMI lending and investments. However, we believe that the merger should be conditioned on specific measurable and independently verifiable goals. The CRA Plan must be revised to have targets for each AA, with sub categories within the AAs to ensure accountability. As New York and the country have recovered from the deep recession, the rate of housing price and economic recovery varies within NYS. There are disparities between NYC and LI. It is not enough to have LMI targets just aimed at LMI households. As incomes recover, LMI neighborhoods still struggle, even LMI households can and do choose to move to moderateincome neighborhoods. In light of that, it is imperative that there are specific lending goals for neighborhoods where the population is LMI and/or minority and/or has a significant number of immigrants. These lending targets should be broken out by each AA. The CRA Plan must include goals for Long Island and be commensurate with the size of bank deposits in Long Island. In 2016 the Empire Justice Center as Convener of the Greater Rochester Community Reinvestment Coalition (GRCRC) signed on to a Community Benefits Plan (CPB) when KeyBank acquired First Niagara. KeyBank is a regional bank with a footprint in multiple states. The CBP laid out specific lending targets by product for Buffalo, Rochester and Albany. These goals were based on specific measurable increases in lending using existing lending numbers as a baseline. 3 It is imperative that this merger be conditioned on independently measurable goals for home mortgages (broken out by home purchase, refinance, and home improvement), small business and community development lending, community development investments, and grants. These goals must be specific for Nassau and Suffolk counties and LI advocates must receive detailed breakouts of the LI goals by total numbers of loans and dollar 3 NCRC s summary of KeyBank s CBP can be found at: KeyBank s summary can be found at: 3

4 amounts prior to approval. In addition, Sterling must commit to sharing yearly outcomes that include numbers and dollar amount of these goals by each lending category both in its entire footprint and in LI. FRINGE BANKING AND CONSUMER LOAN PRODUCTS Introduction All New Yorkers must have access to mainstream financial institutions. Those institutions must provide access to safe and affordable products, including low cost bank accounts, small dollar loans, home repair loans, and auto loans. As banks have fled low and moderate-income neighborhoods and communities of color, they have been replaced by the fringe financial industry that charges predatory terms for check cashing, small dollar, and home repair loans. 4 African American and Latino borrowers and neighborhoods have historically been targeted for predatory home loans. While, thanks to Dodd-Frank and strong NYS laws, most predatory mortgage lending is currently shut down, borrowers and communities of color are now being targeted for higher cost consumer products. The providers of these products are often subject to little or no regulation and are adversely impacting the ability of Black and Latino families to save for a home, education, or retirement. Wealth is stripped from this community by check cashers, payday lenders, and auto dealers. A study by the New York Office of the Public Advocate found that a customer with an annual income of $17,000 pays $250 in check cashing fees instead of $60 to a bank for comparable services. 5 Consumers have to resort to rent-to-own stores instead of being able to obtain a small dollar loan to purchase an item at market price. Instead, they pay 3-4 times the cost of an item and, even then, have it repossessed if they miss a single payment. The lack of access to small dollar loans results in black communities being disproportionately sued for small, unpaid bills, which further impacts their credit scores and ability to obtain prime credit. Pro Publica s research on these lawsuits points to the lack of wealth in black communities as a contributing factor. Typical black households have a net worth of $11,000 vs $142,000 for white households. 6 The wealth gap between black and white families has increased since the Great Depression. 7 As housing prices have rebounded since the Great Recession in white Squires and O'Connor, Fringe Banking in Milwaukee: The Rise of Check Cashing Businesses and the Emergence of Two-Tiered Banking System. (1997) at 5,6, as cited by Saunders, The impact of Treasury's Proposed Regulation under the "EFT 99" Provisions of the Debt Collection Improvement Act of 1996 On the Poor, the Elderly and the Unbanked. " (1997) at note 13, at: on_improvement_act_97.pdf

5 neighborhoods, home equity has increased. Minority neighborhoods have not seen a similar rise in housing prices. 8 In light of these factors, safe affordable products are essential for those consumers. The products should be marketed to un- and underbanked consumers. The interest rate and fees charged should be commensurate with the true risk of making such loans. Two consumer loan products are some potential examples described: a closed-ended small dollar loan and a responsible auto loan. Small dollar loan Thirty percent of American households do not have the financial resources to meet an emergency and 44% do not have resources to meet a three-month emergency. In light of this, a closed-end small dollar loan product can help such families meet this need. ESL Federal Credit Union in Rochester, NY has introduced such a product for customers with direct deposit accounts and they have found it meets a true credit need. Auto loan Auto dealers upsell buyers of color, charging them higher interest rates than they qualify for given comparable credit scores. As of the Q3 2014, 39% ($336 billion) of the auto loan market was comprised of subprime borrowers. 9 Research and anecdotal evidence shows that many of these borrowers are at risk of being charged 24.98%, even when they could have qualified for lower interest rates. It has been shown that women and people of color are being given unaffordable and marked up credit when they shop for auto loans. While the Consumer Financial Protection Bureau (CFPB) is trying to impact these discriminatory pricing policies, it is being met with resistance. With inadequate public transportation and jobs moving to the suburbs, New Yorkers need affordable credit for used car loans. ASTORIA BANK S MORTGAGE LENDING IN NASSAU/SUFFOLK MSA and UNDERSERVED COMMUNITIES As Astoria Bank is undergoing its CRA exam, we examine the bank s mortgage lending performance in Long Island (Nassau/Suffolk MSA) and its low-moderate income communities and communities of color. Astoria Bank s Mortgage Lending Over Time and Compared to Peers In 2016, Astoria Bank ranked 8 th in depository market share with 54 offices and $5.37 billion in deposits (4.33% of all FDIC deposits) in the Nassau/Suffolk MSA market. (See FDIC Marketshare table, Table 1 in Appendix B.)

6 We look at a bank s lending performance over time as well as in comparison to its peers in a point in time. Since 2011 is the last year of the last CRA exam, we use that year as the baseline for the year-to-year comparison of the current exam period of We requested Astoria s 2016 HMDA LAR on April 11, 2016 and received the raw data on May 8 th, after our tables were complete. Therefore, this section looks at lending through 2015, the last year of the publicly available data. In addition to year-to-year lending, we examine Astoria s lending in relation to its peers, the other top depositories in the Nassau/Suffolk MSA, using the 2015 HMDA data. Astoria s Mortgage Lending, Total Mortgage Loans In 2015, Astoria originated a total of 255 loans in the Nassau/Suffolk MSA compared to 304 loans in 2011, representing a decrease of 16%. (See Table 2, Appendix B.) In comparison, in 2015 Astoria originated: 33 loans to Black and Hispanic households, an increase of 50 % from loans to low and moderate income households, a decrease of 20 % from loans in the low and moderate income census tracts, an increase of 20 % from loans in minority census tracts, an increase of 5 % from 2011 Astoria s high point of lending was in 2012, when it originated 495 loans. Its total lending has been lower in every category since Astoria increased the proportion of its lending going to most underserved areas between 2011 and 2015, while it decreased the proportion going to low and moderate income households. Of the 255 loans Astoria made in 2015, 13% were to Black and Hispanic households, compared to 7% in % were to low-moderate income households, compared to 40% in % were in low-moderate income census tracts, compared to 10% in % were in minority census tracts, compared to 7% in 2011 Astoria performed better than all financial institutions (AFI) in 2015 in its distribution of lending to some underserved categories (low-moderate income households and census tracts) while underperforming AFI in others (Black and Hispanic households and minority census tracts). Despite this, the total volume of loans made by Astoria in these underserved categories is exceedingly low. 6

7 The low numbers of loans made to Black and Hispanic households and in minority census tracts can, in part, be explained by the low number of applications from Black and Hispanic applicants, and the high denial rates of Black applicants. Of the 358 mortgage loan applications received in 2015: 72% were from White applicants (260) 6 % were from Black applicants (21) 8 % were from Hispanic applicants (30) 6 % were from Asian applicants (22) Of these applicants, Blacks had the highest proportion of denials at 24%, Asians had a 14% denial rate and Hispanics had a 7% denial rate. While not discussed here, see also Table 3 in Appendix B for Astoria s total dollar volume of lending from Home Purchase Loans In 2015, Astoria originated a total of 158 home purchase loans in the Nassau/Suffolk MSA compared to 139 loans in 2011, representing an increase of 14%. (See Table 4, Appendix B.) In comparison, in 2015 Astoria originated: 25 loans to Black and Hispanic households, an increase of 67% from loans to low and moderate income households, a decrease of 6% from loans in the low and moderate income census tracts, an increase of 56% from loans in minority census tracts, an increase of 29% from 2011 Astoria s high point of home purchase lending was in 2015, yet total volume at 158 loans is exceedingly low. Astoria had no consistent pattern of increase or decrease in the proportion of its lending to the minority and low to moderate income census tracts and households between 2011 and 2015, which could indicate that it made no proactive efforts to market to, or serve, these communities. Of the loans Astoria made in 2015, 16% were to Black and Latino households, compared to 11% in % were to low-moderate income households, compared to 47% in % were in low-moderate income census tracts, compared to 12% in % were in minority census tracts, compared to 10% in 2011 Astoria just underperforms all financial institutions (AFI) in some categories (Black and Hispanic households and minority census tracts) in the distribution of its lending while outperforming AFI in others (low-moderate households and census tracts). Still, the total volume of home purchase loans made by Astoria in these underserved categories is exceedingly low. 7

8 The low number of applications from, and high denial rates among, Black and Hispanic applicants could further explain reasons for the extremely low volume of lending to Blacks and Hispanics. Of the 192 home purchase loan applications Astoria received in 2015: 71% were from White applicants (137) 7% were from Black applicants (13) 10% were from Hispanic applicants (20) 7% were from Asian applicants (13) Blacks had the highest denial rate in 2015 at 15% and Hispanics had a 10% denial rate. In comparison, the denial rate among White applicants in 2015 was 8%, and the denial rate among Asian applicants was 0%. Mapping Astoria s Mortgage Lending Another way to look at lending is by mapping the number of loans by census tract and overlaying that with neighborhood demographics. As seen by the maps in Appendix C, we did this for Nassau and Suffolk County, mapping the total and home purchase lending of all HMDA reporters and the total lending of Astoria Bank. Due to Astoria s small lending volume, especially for home purchase lending (158 loans in Nassau/Suffolk, an average of 0.26 loans/census tract), we only mapped Astoria s total lending. Nassau County In 2015, there were 17,776 mortgage loans originated in Nassau County, an average of 62 loans per census tract. Figure 1 in Appendix C shows the total loan originations of all HMDA reporters by census tract and neighborhood demographics (tracts less than 80% of area median family income and tracts % non-white) for Nassau County. The map indicates that mortgage lending is generally spread throughout most of Nassau County, with tracts of average or above average lending (green and blue) throughout the county. Some sections of central, south central and northeastern Nassau County, however, are red, showing significantly less lending than the average. Also, most of the low-moderate income communities (less than 80% of area median family income) and/or communities of color (50-100% non-white) have lending that is below the county average (red and yellow tracts with hash marks). These areas include: Inwood, Hempstead, Uniondale, Roosevelt, Freeport and New Cassel. There were 9,951 home purchase originations in Nassau County in 2015, an average of 35 loans per census tract. Figure 2 in Appendix C shows the home purchase originations of all HMDA reporters by census tract and neighborhood demographics (tracts less than 80% of area median family income and tracts % non-white) for Nassau County. The pattern of home purchase lending in Nassau is similar to that of its total mortgage lending, as seen in Figure 1. There do appear to be few tracts with the least amount of lending (red tracts), and some of the tracts that were red or yellow in the total mortgage lending map are now yellow or green. This suggests that, as a whole, HMDA reporting lenders tend to work harder to reach out to low-moderate 8

9 income communities and communities of color with respect to home purchase loans than with refinance or home improvement loans. Overall, these maps suggest that mortgage lending is happening throughout most of Nassau County. However, Figure 3 of Astoria s total loan originations in 2015 shows huge areas where Astoria is not taking advantage of the opportunities for lending in Nassau County. In 2015, Astoria originated only 136 loans in Nassau County, for an average of 0.48 loans per census tract. The large areas of red on the map, indicating 0 loans, show that, in most areas of Nassau County, Astoria did no lending at all. Astoria made no loans in many low-moderate and/or communities of color, including Hempstead, Uniondale, Roosevelt, Inwood and New Cassel. Suffolk County In 2015, there were 18,961 mortgage loans originated in Suffolk County, an average of 59 loans per census tract. Figure 4 in Appendix C shows the total loan originations of all HMDA reporters by census tract and neighborhood demographics (tracts less than 80% of area median family income and tracts % non-white) for Western and Central Suffolk County. As with Nassau County, mortgage lending appears to be generally spread throughout western and central Suffolk County, with tracts of average or above average lending (green and blue) throughout the area. Some areas that are communities of color and low-moderate income areas obtained more loans than average (green areas), including Northampton, Flanders, North Bay Shore and parts of Huntington Station, North Amityville and Bay Shore. Other low-moderate income communities of color, however, had lending levels significantly or somewhat below average (red and yellow), including Brentwood, Central Islip and parts of Riverhead, Gordon Heights, Brookhaven and Bay Shore. There were 10,252 home purchase originations in Suffolk County in 2015, an average of 32 loans per census tract. Figure 5 in Appendix C shows the home purchase originations of all HMDA reporters by census tract and neighborhood demographics (tracts less than 80% of area median family income and tracts % non-white) for western and central Suffolk County. The pattern of home purchase lending in this part of Suffolk is similar to that of its total mortgage lending, as seen in Figure 4. The notable exceptions include Northampton and Flanders which are not above average in home purchase lending (yellow), and Bay Shore which is all above average in home purchase lending (green). Overall, these maps suggest that mortgage lending is happening throughout most of western and central Suffolk County. However, Figure 6 of Astoria s total loan originations in 2015 shows huge areas where Astoria is not taking advantage of the opportunities for lending in Suffolk County. In 2015, Astoria originated only 119 loans in Suffolk County, for an average of 0.37 loans per census tract. The large areas of red on the map, indicating 0 loans, show that, in many parts of western and eastern-central Suffolk County, Astoria did no lending at all. Astoria concentrated its lending in Gordon Heights and Mastic Beach, including their low-moderate income communities (green areas, some with hash marks), as well as in the middle-upper income areas (green, no hash marks) of central Suffolk County. Astoria made one or no loans in many low-moderate and/or communities of color, including Huntington Station, Wyandanch, Brentwood, Central Islip, North Bay Shore, East Patchogue, Brookhaven, Mastic, Riverhead, 9

10 Northampton and Flanders. Many of these communities had lending being done by other lenders (see Figures 4&5), so this was a missed opportunity by Astoria. Astoria s Mortgage Lending Compared to Its Peers As seen by Table 1 in Appendix B, in 2016 Astoria ranked eighth in deposits in the Nassau/Suffolk MSA, with 4.33% of the market. We will compare this ranking to how Astoria ranked compared to its peers with respect to its total mortgage lending and home purchase lending market share in Total Mortgage Lending Market Share First, we compared the total number of mortgages originated in 2015 among the top 12 banks in Nassau/Suffolk MSA with the largest deposits. These banks have branches and thus CRA obligations in the Nassau/Suffolk MSA. As seen in Table 5, Appendix B, Astoria originated a total of 255 mortgage loans in 2015, capturing less than 0.7% of the Nassau/ Suffolk MSA market. While Astoria s total lending market share is dramatically less than its depository market share of 4.33%, the bank s 7 th place in MSA mortgage lending among the top 12 depositories 10 is slightly better than its 8 th place 2016 depository ranking. Still, Astoria is at an alarmingly low pace of lending as compared to its depository market share. We would expect a bank s market share among various traditionally underserved communities to be at least that of the MSA market share. Astoria performed to this standard in the low-moderate income household and low-moderate income census tract markets, but did not meet this standard among Black and Hispanic households or in minority census tracts. In total number of loans to the different communities in the Nassau/Suffolk MSA, in 2016 Astoria captured: 0.6% of the Black and Hispanic household market, and ranked 6 th among the top 12 banks 1.0% of the low-moderate income household market, and ranked 6 th among the top 12 banks 0.7% of the low-moderate income census tract market, and ranked 7 th among the top 12 banks 0.5% of the minority census tract market, and ranked 6 th among the top 12 banks Together, the top 12 depositories only captured 23% of the Nassau/Suffolk total lending market, indicating that most loans are being originated by non-depository mortgage lenders and credit unions. These entities, which do not have CRA obligations, along with smaller depositories, captured the other 77% of the Nassau/Suffolk market. While not discussed here, see also Table 6 in Appendix B for how Astoria compared to its peers in 2015 with respect to its total dollar volume of mortgage lending. 10 Note that in Tables 5, 6 and 7 comparing the lending of the top depositories there are only 10 depositories in the tables. This is because, of the 12 depositories compared, 2 originated too few of loans to be included. Apple Bank for Savings made 0 loans in 2015, and Signature Bank made only 2. 10

11 Home Purchase Lending Market Share As seen in Table 7 in Appendix B, Astoria originated 158 home purchase loans in 2015, capturing 0.8% of the MSA s home purchase lending market. This makes Astoria the 7 th largest home purchase lender among the top 12 depositories in 2015, slightly better than its 8 th place depository market share ranking, but far short of its 4.33% depository market share. Astoria outperformed its MSA home purchase lending market share among low-moderate income households and in low-moderate income census tracts, but did slightly worse among Black and Hispanic households and in minority census tracts. In 2015, Astoria captured: 0.7% of the market among Black and Hispanic households, and ranked 6th among the top 12 banks 1.0% of the market among low-moderate income households, and ranked 6th among the top 12 banks 0.9% of the market in low-moderate income census tracts, and ranked 6th among the top 12 banks 0.7% of the market in minority census tracts, and ranked 6th among the top 12 banks Together, the top 12 depositories only captured 29% of the Nassau/Suffolk home purchase lending market, meaning that other lenders captured the other 71% of the market. As seen by Table 8 in Appendix B, only four of the top 12 depositories are among Nassau/Suffolk s top 20 home purchase lenders, and Astoria is not one of them. Most of top home purchase lenders are mortgage banks/companies and credit unions, which do not have CRA obligations. Conclusion: Astoria s Mortgage Lending We are pleased with Astoria s 2015 distribution of its lending among the various underserved communities as a whole in the Nassau/Suffolk MSA. Astoria exceeded the average distribution of its peers (Top 10 column in Top Banks tables) in every group in total loans and home purchase loans to Black and Hispanic households, to low-moderate income households, in low moderate income census tracts and in minority census tracts. However, we are very concerned with Astoria s extremely low lending volume during the entire exam period, as well as the low number of applications from Black and Latinos and the high denial rates of Black applicants. The bank s total loans and home purchase loans market share is less than 1% as compared to its 4.33% depository market share. As seen in the lending maps, mortgage lending is happening in many communities where Astoria has no presence. Clearly, Astoria needs to offer and provide more lending among Long Island s underserved communities and increase its outreach to communities of color. In fact, it needs to provide drastically more lending to all communities in the Nassau/Suffolk MSA. 11

12 ASTORIA BANK S SMALL BUSINESS LENDING As with mortgage lending, we look at a bank s small business lending performance over time as well as in comparison to its peers in a point in time. Since 2011 is the last year of the last CRA exam, we use that year as the baseline for the year-toyear comparison of the current exam period of We look at small business lending through 2015, the last year of the publicly available CRA small business lending data. In addition to year-to-year lending, we examine Astoria s lending in relation to its peers, the other top depositories in the Nassau/Suffolk MSA, using the 2015 CRA small business data. Astoria s Small Business Lending, Table 9 in Appendix B shows Astoria Bank s small business lending (number of loans and dollar volume of lending) from (Note: The CRA small business lending data shows that in 2015 Astoria made the exact number and dollar volume of loans (367/$37.18M) for the Nassau/Suffolk MSA and to businesses with GAR<$1M, as well as to businesses in low-moderate income census tracts and businesses with GAR<$1M in LMI tracts (75/$6.24M). It seems highly unusual that all of a bank s small business lending would go to businesses with GAR<$1M, so we recommend that this data be checked.) Number of Small Business Loans Astoria originated 367 small business loans in the Nassau/Suffolk MSA in 2015, an increase of 44% from As seen by the above referenced table, Astoria s small business lending increased at higher rates in all but one category of examined loan/business type. In 2015, Astoria made: 75 loans to businesses in low-moderate income census tracts, an increase of 92% from loans of $100,000 or less, an increase of 34% from loans of $100,000 or less to businesses in low-moderate income census tracts, an increase of 91% from loans to businesses with gross annual revenues under $1 million, an increase of 93% from loans to businesses with gross annual revenues under $1 million in low-moderate income census tracts, an increase of 188% from 2011 Between 2011 and 2015, Astoria increased the distribution of its loans to all but one (Loan amount <=$100,000) of the loan/business categories. Moreover, the proportion of Astoria s loans going to these categories in 2015 was significantly higher in all but one category (Loan amount 12

13 <=$100,000) than the average for all financial institutions. Of the 367 small business loans made by Astoria in 2015: 20% went to businesses in low-moderate income census tracts, compared to 15% for AFI 85% were of $100,000 or less, compared to 95% for AFI 18% were of $100,000 or less to businesses in low-moderate income census tracts, compared to 14% for AFI 100% were to businesses with gross annual revenues under $1 million, compared to 48% for AFI 20% were to businesses with gross annual revenues under $1 million in low-moderate income census tracts, compared to 7% for AFI Dollar Volume of Small Business Lending Astoria made $37.18 million in small business loans in the Nassau/Suffolk MSA in As seen in the above referenced table, this is 173% more than in Astoria s dollar volume of small business lending increased at lower rates in some categories, while it increased at higher rates in others. Still, Astoria s dollar volume lending in every category increased each year between 2013 and In 2015, Astoria s dollar volume of lending was: $6.24 million to businesses in low-moderate income census tracts, an increase of 77% from 2011 $12.71 million in loans of $100,000 or less, an increase of 92% from 2011 $2.37 million in loans of $100,000 or less to businesses in low-moderate income census tracts, an increase of 125% from 2011 $37.18 million to businesses with gross annual revenues under $1 million, an increase of 412% from 2011 $6.24 million to businesses with gross annual revenues under $1 million in low-moderate income census tracts, an increase of 204% from 2011 Due to these increases in lending, Astoria was able to meet or exceed the distribution for all financial institutions in 2015 in all but one category (Loan amount <=$100,000). Of the $37.18 in small business lending made by Astoria in 2015 in Nassau/Suffolk: 17% went to businesses in low-moderate income census tracts, compared to 16% for AFI 34% was lending of $100,000 or less, compared to 44% for AFI 6% was lending of $100,000 or less to businesses in low-moderate income census tracts, compared to 6% for AFI 100% went to businesses with gross annual revenues under $1 million, compared to 29% for AFI 17% went to businesses with gross annual revenues under $1 million in low-moderate income census tracts, compared to 4% for AFI 13

14 Astoria s Small Business Lending Compared to Peers As with the mortgage lending, we compare a bank s small business lending to its peers, the other depositories with the greatest market share in the Nassau/Suffolk MSA. Included in this letter is a table with the number of loans and dollar volume of small business lending for the top 11 banks that reported CRA small business loans in (See Table 10 in Appendix B.) As seen above in this letter, Astoria ranked eighth in deposit market share in the Nassau/Suffolk MSA in 2016 with 4.33% of the market. We use this information when comparing Astoria s small business lending with its peers. Number of Loans Market Share As seen in the above referenced table, in 2015 Astoria, with 367 loans, captured 0.4% percent of the small business lending market, making Astoria the 8th among the top 11 banks in Nassau/Suffolk in terms of number of small business loans. We are pleased to see that Astoria s market share in the various categories examined exceeded its overall market share in every category, and its ranking met or exceeded the bank s MSA ranking in all but one category. Still, Astoria s overall penetration with respect to small business loans was far below its depository market share of 4.33%. Compared to its overall small business loan market share of 0.4% in the Nassau/Suffolk MSA, Astoria had a market share of: 0.6% among businesses in low-moderate income census tracts, making Astoria 9th among the top 11 banks 0.4% in loans of $100,000 or less, making Astoria 8th among the top 11 banks 0.5% in loans of $100,000 or less to businesses in low-moderate income census tracts, putting Astoria 8th among the top 11 banks 0.9% among businesses with gross annual revenues under $1 million, putting Astoria 7th among the top 11 banks 1.3% among businesses with gross annual revenues under $1 million in low-moderate income census tracts, putting Astoria 7th among the top 11 banks Dollar Volume Lending Market Share In 2015, with $37 million in lending, Astoria captured 1.4% of the dollar volume of small business lending in Nassau/Suffolk, making it the 10th largest dollar volume lender among the top 11 banks in the Nassau/Suffolk MSA. (See the bottom half of above referenced table.) Astoria s dollar volume lending market share in the various categories examined met or exceeded its overall market share in all but one category, and its ranking met or exceeded the bank s MSA ranking and depository ranking in all but one category. We are pleased to see how well Astoria penetrated the smaller business market, those with gross annual revenues under $1 million; in particular those businesses located in low-moderate income census tracts. Its dollar volume lending market share here for exceeded its overall market share. 14

15 Compared to its overall small business dollar volume lending market share of 1.4% in the Nassau/Suffolk MSA, Astoria had a market share of: 1.5% among businesses in low-moderate income census tracts, making Astoria 10th among the top 11 banks 1.1% in lending of $100,000 or less, making Astoria 8th among the top 11 banks 1.4% in lending of $100,000 or less to businesses in low-moderate income census tracts, putting Astoria 9th among the top 11 banks 5.0% among businesses with gross annual revenues under $1 million, putting Astoria 7th among the top 11 banks 5.9% among businesses with gross annual revenues under $1 million in low-moderate income census tracts, putting Astoria 4th among the top 11 banks Conclusion: Astoria s Small Business Lending Astoria was able to substantially increase its small business lending between 2011 and 2015, particularly its dollar volume of lending. The bank also met or exceeded all financial institutions in the distribution of its loans/lending to most of the various categories. Despite these increases, when compared to the other top depositories in 2015, Astoria had a very small proportion of the small business loan markets and the dollar volume small business lending markets. The exception was its dollar volume of lending to businesses with gross annual revenues less than $1 million and to these businesses in low-moderate income census tracts, where the bank captured at least 5% of the market. 11 ASTORIA BANK S COMMUNITY DEVELOPMENT ACTIVITIES The Empire Justice Center reached out to local consumer advocates to describe both community credit needs and their own experiences with Astoria. Those responses are summarized below and included in Appendix D. Serving Spanish and Other People Who Are Limited English Proficient (LEP) Long Island has a large Latino/Immigrant population, many of whom are LEP. Long Island Housing Services, Inc. (LIHS) has seen the LEP community being disproportionately affected by the foreclosure-housing crisis. Although efforts have been made to assist the community, whenever possible, through housing assistance agencies and legal assistance providers, there is a continued presence of LEP consumers who do not understand the financial documents that they are presented for pre-purchase, post-purchase, or post-modification. While lenders may provide Spanish speaking customer representatives, there appears to be a lack of consistent communication regarding the status of modifications and the necessity of further 11 This conclusion could change if the 2015 small business lending numbers for businesses with GAR<$1M are found to be incorrect. 15

16 financial information. This lack of clarity continues to create confusion and ultimately the inability to qualify for a modification and/or leading to foreclosure filings. Efforts must continue to provide language access in financial documents that are given to future borrowers and/or homeowners. Additionally, educational outreach is necessary to educate the LEP community on the basics of the pre-purchase, post-purchase and/or post-modification. This outreach is critical because a lack of understanding may lead to foreclosure or re-default on modifications. Lastly, homeowners need to be better informed as to their rights in the process in response to legal actions brought by lenders and servicers. This will ensure there are effective interpreters available for each appearance in the case of LEP defendants who may be too timid or unaware not only of their right to professional interpreter at the foreclosure settlement parts, but also at stages where the borrowers or tenants in foreclosure require emergency assistance from the Courts. Lenders and servicers should also bear responsibility for providing accurately translated documents in the case of LEP consumers. The Central Islip Civic Council reports a good working relationship with Astoria. Central Islip Civic Council also works with LEP clients and 70% of their clients are Latino. They are also concerned about the apparent lack of bi-lingual Spanish speaking staff at specific Astoria branches in Hauppauge and Bay Shore. We encourage Sterling/Astoria to add/retain Spanish and other bilingual speaking staff at branches in neighborhoods with large immigrant communities. La Fuerza Unida has expressed concern about the inability of their Latino clients to obtain mortgage products from Astoria. A more detailed description of mortgage lending to Latinos is included above, in the Astoria Mortgage Lending section. As seen in Table 2, Appendix B, Astoria only received 30 applications from Latinos in In addition, La Fuerza Unida found Astoria unhelpful in providing basic information and extending a line-of-credit to the organization. La Fuerza Unida s concerns are attached in Appendix D. Fair Housing Violations in Lending From April 2015 to August 2016, Long Island Housing Services (LIHS) conducted audits of seven Long Island lending institutions utilizing matched pair testing for race and national origin. The lending institutions were chosen for audit testing based on LIHS analysis of HMDA data. 12 Throughout the audit period, 63 paired tests were conducted and four of the lenders are credit unions. Many of the tests revealed disparate treatment based on race and national origin by numerous lenders. LIHS found that 68% of the race audit tests revealed evidence of disparate treatment. Furthermore, 33% of the national origin audit tests revealed evidence of disparate 12 It is important to note that, as a provider of legal services for homeowners at risk of foreclosure through the support of the New York State Attorney General s Office Homeownership Protection Program (NYSOAG s HOPP) Legal Network, LIHS specifically selected audit subjects [lenders] with whom there were no pending matters to avoid any possible conflicts with represented parties. Therefore, the audit subjects are not necessarily those whose HMDA data suggested worst performance related to race and national origin lending practices. 16

17 treatment. Based on the audit testing, a HUD administrative complaint was filed in the middle of 2016 against one of the lenders, and currently negotiations towards settlement are pending. In addition, age and disability testing was conducted on an eighth lender based on an individual complaint. Affordable Mortgages and First Time Homebuyers According to Astoria s most recent CRA Performance Evaluation, dated December 2012, the bank offers a full menu of products and services. Primary credit products are one-to-four family residential mortgages and multi-family mortgages funded by locally gathered retail deposits and, to a lesser extent, borrowed funds. 13 Sterling s merger application proposes to serve the LMI population with Astoria and Sterling affordable mortgage products. Long Island advocates who work with first time home buyers have stressed the importance of retaining Astoria s products as a critical community need. The merger should be conditioned on Sterling introducing its LMI mortgage products including but not limited to Start Affordable Mortgage described in as page 16 of the application. Sterling should also retain the best features of Astoria mortgage products that have proved successful in serving Long Islands LMI communities. Sterling also originates mortgages through Freedom Mortgage. 14 LI advocates have also expressed concerns with Freedom Mortgage. We will share additional information regarding these concerns in the future. Astoria Bank has been very supportive of the programs and services of the Economic Opportunity Council of Suffolk, Inc. (EOC of Suffolk), specifically the promotion of selfsufficiency for low income individuals and families through homeownership, for over 16 years. The bank s continuous and generous financial support has been very valuable and used to offset the costs to administer the Federal Home Loan Bank of NY First Home Club program and to facilitate homebuyer education and financial literacy workshops. Many of EOC of Suffolk s low-income individuals and families would not have become first time homebuyers had they not enrolled in the First Home Club program with Astoria. Mortgage Servicing Issues LIHS is seeing mortgage servicers deny loan modifications to borrowers in cases where the nonparticipating co-borrower will not sign the agreement. In past years, modification was often still possible for the borrower, so long as the co-borrower executed a quitclaim deed and properly documented the basis for non-participation and provided proof of non-residence. The most common scenario where this issue presents is when the borrowers have divorced and for this reason, co-borrower cooperation is not always forthcoming. As more servicers move toward instituting this policy, divorced borrowers are increasingly impeded from getting their lives back

18 on track. Furthermore, this policy appears discriminatory in effect, as the majority of divorced borrowers seeking to modify the loan are women with children. This raises concerns related to prohibited gender/sex, marital status, and familial status discrimination. New York Legal Assistance Group (NYLAG) has frequently assisted clients involved in foreclosure proceedings commenced by Federal Astoria Savings Bank (hereinafter Astoria ). In providing clients with various legal services, NYLAG staff encountered several problems with both Astoria and/or their servicers. Two detailed case examples are attached in Appendix D. Investments in Long Island Community Development Financial Institutions Community Development Corporation of Long Island (CDCLI) Funding Corporation is a CDFI organized effort to promote equity investments, grants, and loans, which benefit targeted populations of low-income persons and others with negative equity or who lack adequate access to capital and credit. It makes available specialized loan products such as down payment assistance, home improvement loans, emergency repair loans, and second mortgages allowing Housing Choice Voucher holders to purchase a home, which is referred to as the Voucher Homeownership Program. Borrowed money is utilized in connection with their CDFI s Voucher Homeownership Program. The loan pool is a combination of bank loans, grants provided through NeighborWorks America (NWA), and unrestricted CDCLI cash. All other loan funds are comprised of NWA capital grants, bank grants, and unrestricted CDCLI cash. The products are not primary loans but secondary loans. As grant funds reduce, having low-interest funds available would permit continued lending to generally underserved clients. In addition, it would assist the CDFI to expand the programs and services available to areas of community need. For example, underbanked and/or underserved people tend to use other institutions for financial services (such as check cashing) often at very high rates. With available and affordable funds, the CDFI will have additional capacity to expand their services and address this need. Other Community Responses/Opportunities Hispanic Brotherhood has had a productive relationship with Astoria as a community partner in Rockville Centre. Astoria contributes to and attends their annual scholarship dinner. Astoria also hosts first time homebuyer workshops at their agency. CONCLUSION Given that Astoria is undergoing its CRA exam, we urge an extension of the comment period. We also request that the merger be conditioned upon an extension of Sterling s CRA Plan that can be independently verified by community advocates. Sterling must provide, in a timely manner, the most up-to-date public and non-public data to community advocates to verify measurable outcomes. 18

19 On May 11 th, the Board of Governors of the Federal Reserve (FRB) wrote to Sterling asking for additional information regarding serving community credit needs. We reiterate the FRB s concerns and request that the merger be conditioned on detailed replies to the FRB s questions that explain how those community credit needs will be met. Specifically, the merger must be conditioned on: Retaining all of Astoria s branches in Long Island Detailed information on Sterling s plan to reach out to and engage community advocates in identifying community credit needs Detailed information on serving those needs and reporting outcomes, as described in greater detail above Empire Justice Center and Sterling communicated via on May 16 th. In Sterling s reply , staff noted that they have arranged to talk with NCRC on May 18 th. Sterling staff also expressed a desire to meet with Empire Justice as soon as possible. We look forward to meeting with Sterling to discuss Long Island community credit needs. If you have any questions, please contact Ruhi Maker of Empire Justice Center at rmaker@empirejustice.org or Sincerely, Empire Justice Center American Debt Resources Central Islip Civic Council Debt Counseling Corporation Economic Opportunity Council of Suffolk, Inc. La Fuerza Unida Long Island Housing Services, Inc. Mortgage Foreclosure Clinic at Touro Law Center SafeGuard Credit Counseling Services, Inc. Cc: Signatories Vladimer Ortega, Sterling Bank, vortega@snb.com Cinnamon Chambers-Lewis, Astoria Bank, CChamberslewis@astoriabank.com Jesse Van Tol, NCRC, jvantol@ncrc.org 19

20 Signatories to This Letter Appendix A: Organizational Summaries Empire Justice Center is a statewide, multi-issue, multi-strategy public interest law firm with offices in Albany, Rochester, White Plains, Yonkers and Central Islip (Long Island). Empire Justice focuses on changing the systems within which poor and low income families live. With a focus on poverty law, Empire Justice undertakes research and training, acts as an informational clearinghouse, and provides litigation backup to local legal services programs and community based organizations. As an advocacy organization, we engage in legislative and administrative advocacy on behalf of those impacted by poverty and discrimination. As a non-profit law firm, we provide legal assistance to those in need and undertake impact litigation in order to protect and defend the rights of disenfranchised New Yorkers. American Debt Resources is a non-profit housing counseling and debt management agency offering services in Suffolk and Nassau Counties. For more information, visit Central Islip Civic Council, a non-profit, community based agency dedicated to improving the quality of life for all residents of Central Islip for the past 50 years. For more information, visit Debt Counseling Corporation (DCC) is a 501(c) 3 non-profit, committed to working to fulfill their mission of improving the financial situation of consumers through free financial education and counseling as well as through many programs including a Debt Management Program. For more information, visit Economic Opportunity Council of Suffolk, Inc. (EOC) is a not-for-profit 501(c) (3) and HUD approved housing counseling agency will mark EOC's 50th year of service in helping communities and individuals throughout Suffolk County sustain economic security and achieve self-sufficiency. For more information, visit La Fuerza Unida: Our mission is to enhance the social, literary educational cultural and economic conditions of the Hispanic-American and the low and moderate income community at large. For more information, visit Long Island Housing Services, Inc. is a private, non-profit HUD-qualified Fair Housing Enforcement Organization and a federally approved Housing Counseling Agency whose mission is the elimination of unlawful housing discrimination and promotion of decent and affordable housing through advocacy and education. For More information visit: Mortgage Foreclosure Clinic at Touro Law Center provides pro bono legal assistance to homeowners facing financial difficulties with respect to their mortgages. It provides advice and counsel, representation at settlement conferences, assistance with preparing pro-se answers and submitting modification packages. For more information visit: 20

21 SafeGuard Credit Counseling Services, Inc., a 501c (3) not for profit organization, has a mission to assist consumers in meeting and satisfying their fiscal responsibilities and reaching their financial goals through our ethical and highly successful financial literacy education, credit, bankruptcy and housing counseling programs. For more information, visit: Other Organizations: Community Development Corporation of Long Island (CDCLI) improves the lives of Long Islanders through affordable, quality and stable housing, while making an economic impact in their communities. For more information visit Hispanic Brotherhood of Rockville Center is a not-for-profit organization which provides a wide range of resettlement services including housing and employment counseling (including housing referrals and job placement), translation, immigration and legal assistance, naturalization and citizenship counseling, advocacy for individuals and groups in disputes such as tenant/landlord and employer/employee and emergency food. For more information, visit New York Legal Assistance Group (NYLAG) was founded in 1990 on the premise that lowincome individuals and families can improve their lives significantly if they are given access to the justice system. The agency uses the power of the law to protect the rights of the vulnerable, strengthen communities, and fight poverty. NYLAG provides free civil legal services in comprehensive practice areas. The agency's community-based model leverages 600 mutual referral relationships and 102 community offices that enable the delivery of holistic services in underserved neighborhoods throughout all five NYC boroughs and adjacent counties. In addition, NYLAG's Mobile Legal Help Center (MLHC), a law office and courtroom on wheels, helps to raise awareness and deliver services in isolated communities. 21

22 Appendix B: Tables Rank Table 1: Offices and Deposits of all FDIC-Insured Institutions Nassau & Suffolk Counties, NY Deposit Market Share Report Deposits as of: June 30, 2016 Selected Market: Nassau & Suffolk Counties, NY Outside of Inside of Market Market Institution Name CERT State Bank State/ No. of Deposits No. of Deposits Market (Hqtrd) Class Federal Offices $000 Offices $000 Share Charter 1 JPMorgan Chase Bank, National Association 628 OH N Federal ,129,245, ,939, % 2 Capital One, National Association 4297 VA N Federal ,720, ,070, % 3 Citibank, National Association 7213 SD N Federal ,964, ,110, % 4 Bank of America, National Association 3510 NC N Federal ,195,850, ,635, % 5 TD Bank, National Association DE N Federal ,604, % 6 New York Community Bank NY SB State ,225, ,419, % 7 HSBC Bank USA, National Association VA N Federal ,987, ,089, % 8 Astoria Bank NY SB Federal 34 3,775, ,371, % 9 Signature Bank NY NM State ,348, % 10 Apple Bank for Savings NY SB State ,702, % 11 The Bridgehampton National Bank 6976 NY N Federal ,743, % 12 The First National Bank of Long Island 7072 NY N Federal 4 187, ,438, % 13 Flushing Bank NY NM State 16 1,534, ,410, % 14 Wells Fargo Bank, National Association 3511 SD N Federal ,199, % 15 The Suffolk County National Bank of Riverhead 7278 NY N Federal 1 5, ,945, % 16 People's United Bank, National Association CT N Federal ,814, % 17 BankUnited, National Association FL N Federal ,993, ,398, % 18 Manufacturers and Traders Trust Company 588 NY SM State ,139, ,361, % 19 New York Commercial Bank NY NM State 20 1,187, ,312, % 20 Valley National Bank 9396 NJ N Federal ,244, ,144, % 21 Ridgewood Savings Bank NY SB State 28 2,958, ,138, % 22 The Dime Svgs. Bank of Williamsburgh NY SB State 18 2,857, ,071, % 23 Empire National Bank NY N Federal , % 24 Sterling National Bank NY N Federal 39 9,256, , % 25 Santander Bank, N.A DE N Federal ,625, , % 26 Investors Bank NJ SB State ,384, , % 27 Gold Coast Bank NY NM State , % 28 Esquire Bank, National Association NY N Federal , % 29 Hanover Community Bank NY NM State , % 30 American Community Bank NY NM State , % 31 First Central Savings Bank NY SB State 8 342, , % 32 Habib American Bank NY NM State 6 678, , % 33 Maspeth Federal Savings and Loan Association NY SB Federal 5 1,066, , % 34 BBCN Bank CA NM State 51 6,595, , % 35 Metropolitan Commercial Bank NY SM State 6 930, , % 36 Indus American Bank NJ NM State 4 178, , % 37 Beal Bank, SSB TX SB State 18 1,363, % 38 BNY Mellon, National Association 7946 PA N Federal 38 19,596, % 39 First Republic Bank CA NM State 71 51,161, % Number of Institutions in the Market: 39 TOTALS ,857,722, ,091, % 22

23 Table 2: Astoria Bank All Mortgage Loans Long Island (Nassau and Suffolk Counties), NY All Loan Originations (All 1st Lien loan originations on owner-occupied, 1-4 family, site-built units) # change % change # change % change Total MSA % % Black-Hispanic HH % 11 50% Low-Mod Income HH % % Low-Mod Income CT % 6 20% Minority CT % 1 5% AFI % of loans in: Black-Hispanic HH 7% 8% 8% 8% 13% 15% Low-Mod Income HH 40% 36% 38% 39% 38% 27% Low-Mod Income CT 10% 11% 10% 16% 14% 13% Minority CT 7% 7% 9% 6% 9% 12% Denials % White 12% 9% 10% 12% 13% Black 0% 21% 18% 21% 24% Hispanic 12% 8% 17% 0% 7% Asian 7% 13% 4% 8% 14% Applications by race White Black Hispanic Asian Race Unknown AFI: All Financial Institutions Notes: Includes home purchase, home improvement and refinance originations. Annual HMDA data from Prepared by: Empire Justice Center, 5/8/2017,

24 Table 3: Astoria Bank Total Dollar Volume Mortgage Lending Long Island (Nassau and Suffolk Counties), NY Total Dollar Volume Lending (in thousands) (For all 1st Lien loan originations on owner-occupied, 1-4 family, site-built units) # change % change # change % change Total MSA $ 92,963 $ 134,099 $ 92,138 $ 61,938 $ 74,665 $ 12,727 17% $ (18,298) -20% Black-Hispanic HH $ 4,548 $ 8,314 $ 5,756 $ 4,295 $ 8,508 $ 4,213 50% $ 3,960 87% Low-Mod Income HH $ 19,403 $ 27,311 $ 20,127 $ 15,997 $ 17,518 $ 1,521 9% $ (1,885) -10% Low-Mod Income CT $ 6,458 $ 9,354 $ 6,520 $ 7,995 $ 6,743 $ (1,252) -19% $ 285 4% Minority CT $ 3,932 $ 6,745 $ 6,311 $ 2,427 $ 5,111 $ 2,684 53% $ 1,179 30% AFI % of loans in: Black-Hispanic HH 5% 6% 6% 7% 11% 11% Low-Mod Income HH 21% 20% 22% 26% 23% 23% Low-Mod Income CT 7% 7% 7% 13% 9% 9% Minority CT 4% 5% 7% 4% 7% 7% AFI: All Financial Institutions Notes: Includes dollar volume of home purchase, home improvement and refinance originations. Annual HMDA data from Prepared by: Empire Justice Center, 4/26/2017,

25 Table 4: Astoria Bank Home Purchase Loans Long Island (Nassau and Suffolk Counties), NY Home Purchase Loan Originations (1st Lien home purchase loan originations on owner-occupied, 1-4 family, site-built units) # change % change # change % change Total MSA % 19 14% Black-Hispanic HH % 10 67% Low-Mod Income HH % -4-6% Low-Mod Income CT % 9 56% Minority CT % 4 29% AFI % of loans in: Black-Hispanic HH 11% 12% 10% 10% 16% 17% Low-Mod Income HH 47% 39% 44% 41% 39% 30% Low-Mod Income CT 12% 13% 12% 17% 16% 14% Minority CT 10% 7% 10% 5% 11% 12% Denials % White 7% 5% 10% 9% 8% Black 0% 17% 20% 20% 15% Hispanic 10% 0% 9% 0% 10% Asian 0% 9% 10% 14% 0% Applications by race White Black Hispanic Asian Race Unknown AFI: All Financial Institutions Notes: Annual HMDA data from Prepared by: Empire Justice Center, 5/8/2017,

26 Table 5: Top Banks Total Mortgage Originations 2015 Nassau and Suffolk Counties, NY (All 1st lien home purchase, home improvement and refinance loan originations on owner-occupied, 1-4 family, site built units) # Loans AFI Astoria BOA Bridgehampton Capital One Citigroup HSBC JPMC NY Cmty Bk TD Bk Wells Fargo Top 10 OFI MSA 36, , , ,924 8,372 28,355 Black/Hispanic HH MSA 5, ,580 Low-Mod HH MSA 9, ,017 7,847 Low-Mod Income CT 4, ,070 Minority CT 4, ,674 MARKETSHARE Astoria BOA Bridgehampton Capital One Citigroup HSBC JPMC NY Cmty Bk TD Bk Wells Fargo Top 10 OFI MSA 0.7% 2% 0% 1% 3% 0% 6% 1% 1% 8% 23% 77% Black/Hispanic HH MSA 0.6% 2% 0% 1% 3% 0% 3% 0% 0% 5% 15% 85% Low-Mod HH MSA 1.0% 2% 0% 2% 3% 0% 5% 0% 1% 6% 20% 80% Low-Mod Income CT 0.7% 2% 0% 1% 3% 0% 3% 0% 1% 6% 17% 83% Minority CT 0.5% 2% 0% 1% 3% 0% 4% 0% 0% 5% 15% 85% Loans as % of MSA TOTAL IN: AFI Astoria BOA Bridgehampton Capital One Citigroup HSBC JPMC NY Cmty Bk TD Bk Wells Fargo Top 10 OFI Black/Hispanic HH MSA 15% 13% 12% 0% 12% 11% 4% 8% 5% 6% 10% 10% 16% Low-Mod HH MSA 27% 38% 22% 13% 42% 25% 30% 23% 19% 23% 21% 24% 28% Low-Mod Income CT 13% 14% 11% 19% 14% 11% 7% 8% 11% 11% 10% 10% 14% Minority CT 12% 9% 10% 6% 9% 9% 7% 7% 7% 6% 8% 8% 13% AFI: All Financial Institutions OFI: Other Financial Institutions Notes: Two of the top 12 banks are not included here. Apple Bank for Savings made 0 loans in 2015 and Signature Bank made 2 loans. Prepared by: Empire Justice Center, 4/26/2017,

27 Table 6: Top Banks Aggregate Dollar Volume Lending, 2015 Nassau and Suffolk Counties, NY Aggregate Amount of Loans (000's) (For all 1st lien loan originations on owner-occupied, 1-4 family, site built units) Dollar volume of loans AFI Astoria BOA ridgehamptocapital One Citigroup HSBC JPMC NY Cmty Bk TD Bk Wells Fargo Top 10 OFI MSA $ 12,925,294 $ 74,665 $ 293,419 $ 9,167 $ 125,063 $ 549,651 $ 64,541 $ 874,697 $ 68,111 $ 159,773 $ 1,172,856 $ 3,391,943 $ 9,533,351 Black/Hispanic HH MSA $ 1,593,962 $ 8,508 $ 21,865 $ 13,516 $ 36,215 $ 1,593 $ 50,629 $ 2,877 $ 7,136 $ 88,869 $ 231,208 $ 1,362,754 Low-Mod HH MSA $ 2,211,679 $ 17,518 $ 28,344 $ 372 $ 33,854 $ 60,794 $ 8,914 $ 99,905 $ 8,567 $ 15,582 $ 119,478 $ 393,328 $ 1,818,351 Low-Mod Income CT $ 1,261,644 $ 6,743 $ 20,895 $ 1,807 $ 10,876 $ 32,205 $ 2,430 $ 42,859 $ 5,144 $ 12,417 $ 72,788 $ 208,164 $ 1,053,480 Minority CT $ 1,152,774 $ 5,111 $ 15,429 $ 232 $ 8,448 $ 25,624 $ 2,179 $ 39,803 $ 3,967 $ 4,392 $ 57,510 $ 162,695 $ 990,079 MARKETSHARE Astoria BOA ridgehamptocapital One Citigroup HSBC JPMC NY Cmty Bk TD Bk Wells Fargo Top 10 OFI MSA 1% 2% 0% 1% 4% 0% 7% 1% 1% 9% 26% 74% Black/Hispanic HH MSA 1% 1% 0% 1% 2% 0% 3% 0% 0% 6% 15% 85% Low-Mod HH MSA 1% 1% 0% 2% 3% 0% 5% 0% 1% 5% 18% 82% Low-Mod Income CT 1% 2% 0% 1% 3% 0% 3% 0% 1% 6% 16% 84% Minority CT 0% 1% 0% 1% 2% 0% 3% 0% 0% 5% 14% 86% Loans as % of MSA TOTAL IN: AFI Astoria BOA ridgehamptocapital One Citigroup HSBC JPMC NY Cmty Bk TD Bk Wells Fargo Top 10 OFI Black/Hispanic HH MSA 12% 11% 7% 0% 11% 7% 2% 6% 4% 4% 8% 7% 14% Low-Mod HH MSA 17% 23% 10% 4% 27% 11% 14% 11% 13% 10% 10% 12% 19% Low-Mod Income CT 10% 9% 7% 20% 9% 6% 4% 5% 8% 8% 6% 6% 11% Minority CT 9% 7% 5% 3% 7% 5% 3% 5% 6% 3% 5% 5% 10% AFI: All Financial Institutions OFI: Other Financial Institutions Notes: Two of the top 12 banks are not included here. Apple Bank for Savings made 0 loans in 2015 and Signature Bank made 2 loans. Prepared by: Empire Justice Center,

28 (1st lien home purchase loan originations on owner-occupied, 1-4 family, site built units) Table 7: Top Banks Home Purchase Originations 2015 Nassau and Suffolk Counties, NY # Loans AFI Astoria BOA Bridgehampton Capital One Citigroup HSBC JPMC NY Cmty Bk TD Bk Wells Fargo Top 10 OFI MSA 20, , ,165 5,796 14,407 Black/Hispanic HH MSA 3, ,923 Low-Mod HH MSA 6, ,292 4,728 Low-Mod Income CT 2, ,329 Minority CT 2, ,072 MARKETSHARE Astoria BOA Bridgehampton Capital One Citigroup HSBC JPMC NY Cmty Bk TD Bk Wells Fargo Top 10 OFI MSA 0.8% 2% 0% 1% 5% 0% 7% 1% 1% 11% 29% 71% Black/Hispanic HH MSA 0.7% 1% 0% 1% 3% 0% 3% 0% 0% 6% 16% 84% Low-Mod HH MSA 1.0% 1% 0% 2% 4% 0% 5% 0% 1% 7% 21% 79% Low-Mod Income CT 0.9% 2% 0% 1% 4% 0% 4% 0% 1% 8% 20% 80% Minority CT 0.7% 1% 0% 1% 3% 0% 4% 0% 1% 6% 17% 83% Loans as % of MSA TOTAL IN: AFI Astoria BOA Bridgehampton Capital One Citigroup HSBC JPMC NY Cmty Bk TD Bk Wells Fargo Top 10 OFI Black/Hispanic HH MSA 17% 16% 11% 0% 14% 11% 5% 8% 4% 7% 10% 10% 20% Low-Mod HH MSA 30% 39% 17% 22% 41% 23% 21% 22% 20% 25% 20% 22% 33% Low-Mod Income CT 14% 16% 12% 22% 15% 11% 8% 8% 11% 13% 10% 10% 16% Minority CT 12% 11% 8% 11% 9% 8% 10% 7% 6% 7% 7% 7% 14% AFI: All Financial Institutions OFI: Other Financial Institutions Notes: Two of the top 12 banks are not included here. Apple Bank for Savings and Signature Bank made 0 home purchase loans in Prepared by: Empire Justice Center,

29 Table 8: Home Purchase Loan Disposition by Top 20 Home Purchase Lenders and Astoria, 2015 Nassau-Suffolk Counties NY MSA (For 1st lien home purchase loans on owner-occupied 1-4 family site built homes) Additive Rank RespID RespName Applications Denial Rates Originations Marketshare Marketshare WELLS FARGO BK NA % % 10.7% FREEDOM MORTGAGE CORPORATION % % 19.9% JPMORGAN CHASE BK NA % % 26.9% BETHPAGE FCU % % 32.1% CITIBANK NA % % 37.0% BANK OF AMER NA % % 39.0% PLAZA HOME MORTGAGE, INC % % 40.9% VANGUARD FUNDING LLC % % 42.7% FLAGSTAR BK FSB % % 44.5% MB FNCL BK NA % % 46.2% LOANDEPOT.COM % % 47.9% HOMEBRIDGE FINANCIAL SERVICES % % 49.4% QUICKEN LOANS, INC % % 51.0% TEACHERS FCU % % 52.4% NEW PENN FINANCIAL LLC % % 53.8% MCS MORTGAGE BANKERS % % 55.2% UNITED MORTGAGE CORP % % 56.5% CAPITAL ONE NA % % 57.8% ENVOY MORTGAGE, LTD % % 59.1% FRANKLIN FIRST FINANCIAL, LTD % % 60.4% Total/Avg Top 20 Lenders % % 35 Combined affil. ASTORIA BK/FEDL MTG CORP % % 61.2% Total All HMDA Reporters % % 29

30 Number of Loans Table 9: Astoria Small Business Lending Long Island (Nassau & Suffolk Counties) # change % change # change % change Long Island Total % % Long Island in LMI CT % 36 92% Loan Amt <= $100, % 79 34% Loan Amt <= $100,000 in LMI CT % 31 91% Bus. w. GAR < $1 M % % Bus. w. GAR < $1 M in LMI CT % % Percentage of Long Island Loans In: AFI Long Island in LMI CT 15% 21% 19% 18% 20% 14.9% Loan Amt <= $100,000 92% 93% 90% 88% 85% 95.4% Loan Amt <= $100,000 in LMI CT 13% 18% 17% 16% 18% 14.1% Bus. w. GAR < $1 M 75% 40% 63% 55% 100% 47.7% Bus. w. GAR < $1 M in LMI CT 10% 9% 11% 11% 20% 6.9% Total Amount of Loans (Millions of Dollars) # change % change # change % change Long Island Total $13.61 $13.61 $16.50 $24.79 $37.18 $ % $ % Long Island in LMI CT $3.53 $3.53 $3.90 $5.08 $6.24 $ % $ % Loan Amt <= $100,000 $6.62 $6.62 $6.56 $9.06 $12.71 $ % $ % Loan Amt <= $100,000 in LMI CT $1.05 $1.05 $1.15 $1.33 $2.37 $ % $ % Bus. w. GAR < $1 M $7.26 $7.26 $5.90 $6.26 $37.18 $ % $ % Bus. w. GAR < $1 M in LMI CT $2.05 $2.05 $1.55 $1.72 $6.24 $ % $ % Percentage of Long Island $ Lending In: AFI Long Island in LMI CT 25.9% 25.9% 23.6% 20.5% 16.8% 16.4% Loan Amt <= $100, % 48.6% 39.7% 36.6% 34.2% 44.4% Loan Amt <= $100,000 in LMI CT 7.7% 7.7% 6.9% 5.4% 6.4% 6.4% Bus. w. GAR < $1 M 53.3% 53.3% 35.7% 25.3% 100.0% 28.5% Bus. w. GAR < $1 M in LMI CT 15.1% 15.1% 9.4% 6.9% 16.8% 4.1% AFI: All Financial Institutions; OFI: Other Financial Institutions; LMI CT: Low-Moderate Income Census Tracts; GAR: Gross Annual Revenue Prepared by: Empire Justice Center, 5/3/2017,

31 Number of Loans Table 10: Top 11 Banks Small Business Lending, 2015 Long Island (Nassau & Suffolk Counties) AFI Astoria BOA Bridgehampton Capital One Citigroup HSBC JPMC NY Cmty Bk Signature TD Bank Wells Fargo Top 10* Top 11 OFI Long Island Total 84, , ,458 6,136 1,221 12, ,096 1,412 45,002 45,238 39,732 Long Island in LMI CT 12, ,700 1, , ,022 7,074 5,597 Loan Amt <= $100,000 81, , ,956 6,075 1,015 11, ,834 1,328 42,751 42,830 38,224 Loan Amt <= $100,000 in LMI CT 11, ,600 1, , ,592 6,606 5,368 Bus. w. GAR < $1 M 40, , ,111 4, , ,384 20,419 20,145 Bus. w. GAR < $1 M in LMI CT 5, , ,350 3,360 2,539 Marketshare Astoria BOA Bridgehampton Capital One Citigroup HSBC JPMC NY Cmty Bk Signature TD Bank Wells Fargo Top 10* Top 11 OFI Long Island Total 0.4% 6.8% 0.4% 18.2% 7.2% 1.4% 14.3% 0.0% 0.3% 2.5% 1.7% 53.0% 53.2% 46.8% Long Island in LMI CT 0.6% 7.9% 0.8% 21.3% 8.0% 1.7% 11.7% 0.0% 0.4% 2.0% 1.5% 55.4% 55.8% 44.2% Loan Amt <= $100, % 6.6% 0.2% 18.5% 7.5% 1.3% 14.4% 0.0% 0.1% 2.3% 1.6% 52.7% 52.8% 47.2% Loan Amt <= $100,000 in LMI CT 0.5% 7.7% 0.4% 21.7% 8.4% 1.6% 11.7% 0.0% 0.1% 1.7% 1.4% 55.1% 55.2% 44.8% Bus. w. GAR < $1 M 0.9% 7.3% 0.4% 22.5% 11.7% 1.9% 0.4% 0.0% 0.1% 2.8% 2.4% 50.3% 50.3% 49.7% Bus. w. GAR < $1 M in LMI CT 1.3% 8.5% 0.7% 26.7% 12.9% 2.2% 0.4% 0.0% 0.2% 1.7% 2.3% 56.8% 57.0% 43.0% Percentage of Long Island Loans In: AFI Astoria BOA Bridgehampton Capital One Citigroup HSBC JPMC NY Cmty Bk Signature TD Bank Wells Fargo Top 10* Top 11 OFI Long Island in LMI CT 14.9% 20.4% 17.3% 29.1% 17.5% 16.5% 18.0% 12.1% 9.5% 22.0% 12.1% 13.0% 15.6% 15.6% 14.1% Loan Amt <= $100, % 85.0% 93.1% 48.3% 96.8% 99.0% 83.1% 96.1% 16.7% 33.5% 87.5% 94.1% 95.0% 94.7% 96.2% Loan Amt <= $100,000 in LMI CT 14.1% 17.7% 16.0% 12.3% 16.8% 16.3% 15.2% 11.5% 0.0% 5.9% 9.9% 12.2% 14.6% 14.6% 13.5% Bus. w. GAR < $1 M 47.7% 100.0% 51.6% 45.4% 58.9% 77.4% 63.1% 1.4% 16.7% 14.8% 53.8% 67.7% 45.3% 45.1% 50.7% Bus. w. GAR < $1 M in LMI CT 6.9% 20.4% 8.8% 12.0% 10.2% 12.4% 10.6% 0.2% 4.8% 4.2% 4.9% 9.5% 7.4% 7.4% 6.4% Total Amount of Loans (Millions of Dollars) AFI Astoria BOA Bridgehampton Capital One Citigroup HSBC JPMC NY Cmty Bk Signature TD Bank Wells Fargo Top 10* Top 11 OFI Long Island Total $2, $37.18 $ $87.21 $ $79.21 $ $ $18.22 $60.26 $ $76.49 $1, $1, $ Long Island in LMI CT $ $6.24 $43.02 $29.99 $70.95 $12.06 $22.62 $51.98 $1.13 $14.35 $23.96 $9.47 $ $ $ Loan Amt <= $100,000 $1, $12.71 $93.14 $8.74 $ $51.26 $52.27 $ $.55 $4.45 $45.12 $53.23 $ $ $ Loan Amt <= $100,000 in LMI CT $ $2.37 $13.97 $2.55 $36.72 $6.86 $9.61 $18.61 $.00 $.73 $6.13 $6.49 $ $ $61.16 Bus. w. GAR < $1 M $ $37.18 $48.37 $30.59 $ $37.67 $47.32 $25.93 $3.26 $15.87 $45.00 $41.32 $ $ $ Bus. w. GAR < $1 M in LMI CT $ $6.24 $5.49 $9.31 $15.39 $4.34 $9.39 $3.83 $.80 $5.67 $4.44 $5.75 $64.98 $70.64 $34.71 Marketshare Astoria BOA Bridgehampton Capital One Citigroup HSBC JPMC NY Cmty Bk Signature TD Bank Wells Fargo Top 10* Top 11 OFI Long Island Total 1.4% 9.2% 3.4% 16.3% 3.0% 4.6% 14.2% 0.7% 2.3% 5.6% 2.9% 61.4% 63.7% 36.3% Long Island in LMI CT 1.5% 10.1% 7.0% 16.7% 2.8% 5.3% 12.2% 0.3% 3.4% 5.6% 2.2% 63.7% 67.1% 32.9% Loan Amt <= $100, % 8.1% 0.8% 22.1% 4.4% 4.5% 13.5% 0.0% 0.4% 3.9% 4.6% 63.0% 63.4% 36.6% Loan Amt <= $100,000 in LMI CT 1.4% 8.5% 1.5% 22.2% 4.2% 5.8% 11.3% 0.0% 0.4% 3.7% 3.9% 62.5% 63.0% 37.0% Bus. w. GAR < $1 M 5.0% 6.5% 4.1% 15.4% 5.1% 6.4% 3.5% 0.4% 2.1% 6.1% 5.6% 58.1% 60.2% 39.8% Bus. w. GAR < $1 M in LMI CT 5.9% 5.2% 8.8% 14.6% 4.1% 8.9% 3.6% 0.8% 5.4% 4.2% 5.5% 61.7% 67.1% 32.9% Percentage of Long Island $ Lending In: AFI Astoria BOA Bridgehampton Capital One Citigroup HSBC JPMC NY Cmty Bk Signature TD Bank Wells Fargo Top 10* Top 11 OFI Long Island in LMI CT 16.4% 16.8% 17.9% 34.4% 16.8% 15.2% 19.1% 14.0% 6.2% 23.8% 16.6% 12.4% 17.0% 17.3% 14.8% Loan Amt <= $100, % 34.2% 38.8% 10.0% 60.3% 64.7% 44.1% 42.0% 3.0% 7.4% 31.2% 69.6% 45.6% 44.2% 44.7% Loan Amt <= $100,000 in LMI CT 6.4% 6.4% 5.8% 2.9% 8.7% 8.7% 8.1% 5.0% 0.0% 1.2% 4.2% 8.5% 6.5% 6.3% 6.5% Bus. w. GAR < $1 M 28.5% 100.0% 20.1% 35.1% 27.0% 47.6% 40.0% 7.0% 17.9% 26.3% 31.1% 54.0% 27.0% 27.0% 31.2% Bus. w. GAR < $1 M in LMI CT 4.1% 16.8% 2.3% 10.7% 3.6% 5.5% 7.9% 1.0% 4.4% 9.4% 3.1% 7.5% 4.1% 4.3% 3.7% AFI: All Financial Institutions; OFI: Other Financial Institutions; LMI CT: Low-Moderate Income Census Tracts Note: Signature Bank is included here because it made small business loans in 2015, even though it's not included in the mortgage lending tables. Top 10*: Does not include Signature. Prepared by: Empire Justice Center,

32 Appendix C: Mortgage Lending Maps Figure 1: Total Number Loan Originations of All HMDA Reporters by Census Tract and Neighborhood Demographics, Nassau County, 2015 (All 1st lien loans on owner-occupied 1-4 family site-built units) Total No. Loans (Avg/Census Tract) Nassau: 17,776 (62) Suffolk: 18,961 (59) Long Island: 36,727 (61) 32

33 Figure 2: Home Purchase Loans Originations of All HMDA Reporters by Census Tract and Neighborhood Demographics, Nassau County, 2015 (All 1st lien home purchase loans on owner-occupied 1-4 family site-built units) No. Home Purchase Loans (Avg/Census Tract) Nassau: 9,951 (35) Suffolk: 10,252 (32) Long Island: 20,203 (33) 33

34 Figure 3: Astoria Bank: Total Loan Originations by Census Tract and Neighborhood Demographics, Nassau County, 2015 (All 1st lien loans on owner-occupied 1-4 family site-built units) Astoria Total No. Loans (Avg/Census Tract) Nassau: 136 (0.48) Suffolk: 119 (0.37) Long Island: 255 (0.42) 34

35 Figure 4: Total Loan Originations of All HMDA Reporters by Census Tract and Neighborhood Demographics, Western & Central Suffolk County, 2015 (All 1st lien loans on owner-occupied 1-4 family site-built units) Total No. Loans (Avg/Census Tract) Nassau: 17,776 (62) Suffolk: 18,961 (59) Long Island: 36,727 (61) 35

36 Figure 5: Home Purchase Loans Originations of All HMDA Reporters by Census Tract and Neighborhood Demographics, Western & Central Suffolk County, 2015 (All 1st lien home purchase loans on owner-occupied 1-4 family site-built units) No. Home Purchase Loans (Avg/Census Tract) Nassau: 9,951 (35) Suffolk: 10,252 (32) Long Island: 20,203 (33) 36

37 Figure 6: Astoria Bank: Total Loan Originations by Census Tract and Neighborhood Demographics, Western & Central Suffolk County, 2015 (All 1st lien loans on owner-occupied 1-4 family site-built units) Astoria Total No. Loans (Avg/Census Tract) Nassau: 136 (0.48) Suffolk: 119 (0.37) Long Island: 255 (0.42) 37

38 Appendix D: Community Credit Needs and Experiences Additional Community Advocate Documentation Memo from La Fuerza Unida re: Astoria and La Fuerza Unida from Gita Rayavarapu, Esq. of New York Legal Assistance Group (NYLAG) 38

39 ASTORIA AND LA FUERZA UNIDA, INC. La Fuerza Unida, Inc. opened all of its accounts in Astoria Federal Savings Bank in By 2005 La Fuerza closed all of its accounts in Astoria except for one. That account is still active. La Fuerza began requesting CRA funding around 2008 and yearly we were granted $5,000. From 2012 to 2014 that amount was reduced to $2,500. We did not get any grant in 2015, 2016 and In 2012 La Fuerza requested a line of credit account from Astoria and it was denied under the argument that it needed a personal co-signer from anyone of the Board of Directors. Our assessment: - During the time of our relationship, besides been very conservative, Astoria was never friendly to our LEP clients, not knowing of any Latino client that was able to get a mortgage loan from Astoria. - Even though La Fuerza maintained a good relationship with branch manager, there seemed to be a disconnect between headquarters and branch manager who was unable to provide specific information about staff in charge of different bank areas such as economic development or CRA funding. - Headquarters were not cooperative to provide information about providing information who were the department heads or respond general questions. - Astoria was very aggressive to look for LEP clients to open accounts but not to respond to client credit needs. - Lastly, Astoria online service was more than a headache. 39