PUBLIC DISCLOSURE Date of Evaluation: MARCH 09, 2015 COMMUNITY REINVESTMENT ACT PERFORMANCE EVALUATION Name of Depository Institution: UNIVEST BANK AND TRUST Co. Institution s Identification Number: 354310 Address: 14 NORTH MAIN STREET SOUDERTON, PENNSYLVANIA FEDERAL RESERVE BANK OF PHILADELPHIA TEN INDEPENDENCE MALL PHILADELPHIA, PENNSYLVANIA 19106 NOTE: This document is an evaluation of this institution s record of meeting the credit needs of its entire community, including low- and moderate-income neighborhoods, consistent with the safe and sound operation of the institution. This evaluation is not, nor should it be construed as, an assessment of the financial condition of this institution. The rating assigned to this institution does not represent an analysis, conclusion or opinion of the federal financial supervisory agency concerning the safety and soundness of this financial institution.
Table of Contents I. INSTITUTION RATING... 1 a. OVERALL RATING: SATISFACTORY... 1 b. PERFORMANCE TEST RATINGS TABLE... 1 C. SUMMARY OF MAJOR FACTORS SUPPORTING RATING... 1 II. INSTITUTION... 2 a. DESCRIPTION OF INSTITUTION... 2 b. SCOPE OF EXAMINATION... 9 C. CONCLUSIONS WITH RESPECT TO PERFORMANCE TESTS... 10 III. APPENDICES... 25 a. GLOSSARY... 26 b. HMDA LOAN DISTRIBUTION TABLES... 29 C. SMALL BUSINESS LOAN DISTRIBUTION TABLES... 33 d. ASSESSMENT AREA MAPS... 37
I. INSTITUTION RATING a. OVERALL RATING: SATISFACTORY The following table indicates the performance level of Univest Bank and Trust Co. with respect to the lending, investment, and service tests. b. PERFORMANCE TEST RATINGS TABLE PERFORMANCE LEVELS UNIVEST BANK PERFORMANCE TESTS Outstanding High Satisfactory X X Low Satisfactory Needs to Improve Lending Test* Investment Test Service Test Substantial Noncompliance *Note: The lending test is weighted more heavily than the investment and service tests when arriving at an overall rating. c. SUMMARY OF MAJOR FACTORS SUPPORTING RATING Major factors contributing to this rating include: a high percentage of the bank s loans are made inside its assessment area; the geographic distribution of loans reflects adequate penetration throughout the assessment area; the distribution of borrowers reflects adequate penetration among retail customers of different income levels and business customers of different sizes; the bank exhibits an adequate record of serving the credit needs of the most economically disadvantaged areas of its assessment area, low-income individuals, and very small businesses, consistent with safe and sound banking practices; the bank has made an excellent level of community development loans; the bank has a significant level of qualified community development investments and grants; and the bank is a leader in providing community development services. X 1
II. INSTITUTION a. DESCRIPTION OF INSTITUTION Univest Bank and Trust Co. (Univest), headquartered in Souderton, PA, is state-chartered as a full-service commercial bank. The bank offers a variety of consumer and commercial banking services through 34 branch locations in Bucks, Montgomery, and Philadelphia Counties in the Philadelphia-Camden-Wilmington, PA-NJ-DE-MD metropolitan statistical area (Philadelphia MSA). On January 1, 2015, Univest acquired Valley Green Bank, Philadelphia, PA, adding three fullservice branch locations in the city of Philadelphia. These branches operate as Valley Green Bank - A Division of Univest Bank & Trust Co. The table below details the locations of Univest s branches. Univest Bank and Trust Co. Retail Brank Distribution Full-Service Locations Metropolitan Area County Number of Branches Philadelphia-Camden-Wilmington MSA Bucks County 17 Philadelphia-Camden-Wilmington MSA Montgomery County 14 Philadelphia-Camden-Wilmington MSA Philadelphia County 3 Total Branches 34 As of December 31, 2014, Univest reported $2.2 billion in assets, of which nearly $1.63 billion, or 74, were loans. On a dollar-volume basis, 57 of loans were commercial loans (which included commercial mortgages and commercial and industrial loans), and 20 of loans were residential mortgage loans (which included closed-end and open-end residential mortgage loans and multifamily loans). The composition of the bank s loan portfolio is presented in the table below. LOANS as of 12/31/2014 $000 Commercial Mortgages 545,984 33.50 Commercial and Industrial Loans 382,910 23.49 Secured by Residential Properties (closed-end) 206,382 12.66 Obligations of States and Political Subdivisions 158,260 9.71 Lease Financing Receivables 118,460 7.27 Secured by Residential Properties (open-end) 108,971 6.68 Construction & Land Development 63,904 3.92 Consumer Loans 29,924 1.84 Multifamily Residential Properties 10,759 0.66 Other Loans 4,373 0.27 TOTAL $1,629,927 100.0 Source: December 31, 2014 Consolidated Reports of Condition and Income, Schedule RC-C. 2
DESCRIPTION OF ASSESSMENT AREA For purposes of the Community Reinvestment Act (CRA), Univest has designated one assessment area, which consists of Bucks, Montgomery, and Philadelphia Counties in Pennsylvania. Prior to its merger with Valley Green Bank on January 1, 2015, Univest did not operate any branches in Philadelphia County; however, the bank chose to add the county to its assessment area in October 2013 because of its lending profile and a desire to comply with the spirit and intent of the CRA. The bank s assessment area was determined to comply with the requirements of the CRA and does not arbitrarily exclude low- or moderate-income census tracts. The bank s asset size and financial condition indicate that it has the ability to effectively meet the credit needs of its assessment area. There are no legal or other impediments that would hamper the bank s ability to meet community credit needs. Philadelphia Metropolitan Division Boundaries Effective January 1, 2014, the Federal government s Office of Management and Budget (OMB) issued revised MSA boundary delineations which impacted the bank s assessment area. The Philadelphia metropolitan division (MD), which consisted of Bucks, Chester, Delaware, Montgomery, and Philadelphia Counties, was split into two MDs: the Montgomery County- Bucks County-Chester County, PA, MD and the Philadelphia, PA, MD, consisting of Delaware and Philadelphia Counties. 1 For purposes of this evaluation, the revised MSA boundaries apply to the analysis of loan data beginning in 2014. 2004 Metropolitan Division Boundaries According to 2010 Census data, there are 738 census tracts in the three county assessment area. Using the 2004 MSA boundaries, of the 738 census tracts, 142 were low-income tracts, 141 were moderate-income tracts, 212 middle-income, and 229 upper-income. There were an additional 14 tracts where the income levels were unknown. Of the 142 low-income tracts, 140 were located in Philadelphia and two were located in Norristown, Montgomery County. Further, of the 141 moderate-income census tracts, 112 were located in Philadelphia. The remaining 29 moderateincome tracts were located throughout Bucks and Montgomery Counties, with concentrations around Norristown, Pottstown, Bristol, and Bensalem. Forty percent of the assessment area s population resided within the low- and moderate-income census tracts. Of the total number of families in the assessment area, 26 were designated as low-income and 17 were moderate-income. Families living below the poverty level in the assessment area represented 11 of total families, compared to 9 of families living below the poverty level statewide. 1 Pursuant to 44 U.S.C. 3504(e)(3) and 31 U.S.C. 1l04(d) and Executive Order No. 10253 (June 11, 1951), the OMB delineates metropolitan statistical areas, metropolitan divisions, micropolitan statistical areas, and combined statistical areas for use in Federal statistical activities. 3
2014 Metropolitan Division Boundaries Using the 2014 revised OMB boundaries, of the total 738 census tracts, the assessment area comprises 71 low-income tracts, 195 moderate-income tracts, 272 middle-income tracts, 186 upper-income tracts, and 14 unknown-income tracts. Of the 71 low-income tracts, 61 were located in Philadelphia, with ten tracts located in the suburban towns of Norristown, Pottstown, Cheltenham, and Warminster. Of the 195 moderate-income tracts in the assessment area, 111 were located in Philadelphia. The remaining 84 moderate-income census tracts were located throughout Bucks and Montgomery Counties, with concentrations around Bensalem, Bristol, Bridgeport, Lansdale, Levittown, Norristown, Plymouth Meeting, Pottstown, Telford, Souderton, and Quakertown. The new boundaries show a shift in assessment area demographics: 36 of the population now lives in low- or moderate-income tracts. Of the total number of families in the assessment area, 24 are currently designated as low-income and 18 as moderate-income. Families living below the poverty level represented 11 of total families, compared to 9 of total families statewide. Further, there was a significant decrease in the number of low-income census tracts in the assessment area from 142 to 71 low-income tracts. In contrast, the number of moderate-income census tracts increased from 141 to 195. The OMB s revised boundaries show that, in Bucks and Montgomery Counties, 24 of the population lives in low- or moderate-income tracts, compared to 47 of the population in Philadelphia County. Of the total number of families in Bucks and Montgomery Counties, 19 were designated as low-income and 19 were moderate-income. In Philadelphia County, 30 of families were designated as low-income and 18 were moderateincome. Families living below the poverty level represented 4 of total families in Bucks and Montgomery Counties, compared to 20 of families in Philadelphia County. The following table details the relevant census tract changes between 2004 and 2014: Census Tract Income Level 2004 Boundaries Population () 2014 Boundaries Population () Low 142 20 71 9 Moderate 141 20 195 27 Middle 212 28 272 39 Upper 229 31 186 24 Unknown 14 1 14 1 Totals 738 100 738 100 ECONOMIC CHARACTERISTICS The bank s assessment area is located in the Delaware Valley region of southeastern Pennsylvania in the Philadelphia MSA. According to data obtained from Moody s Analytics, the overall strengths of Philadelphia s economy include the area s concentration of institutions of higher education, its prominence as a center for healthcare and medical research, a housing market that is largely in balance, and its well-developed port and airport. Weaknesses include relatively weak population growth and an old and aging infrastructure. 4
Education and health services represent the largest employment sector in the MSA, contributing over 23 of total jobs. Professional and business services are the second largest employment sector at 16, followed by government at 11. Major employers in Bucks County include Giant Food Stores, St. Mary Medical Center, Central Bucks School District, and Northtec. Montgomery County s top employers include Merck & Co., Sharp & Dohme Corporation; Abington Memorial Hospital; Main Line Hospitals; and the state government. The largest employers in Philadelphia County are the Federal Government, the City of Philadelphia, the University of Pennsylvania, and the School District of Philadelphia. Financial services and banking in the assessment area are highly competitive. Local community banks, primarily Susquehanna Bank and National Penn Bank, are strong competition for Univest. In addition, many national financial institutions, including Wells Fargo Bank, N.A.; PNC Bank, N.A.; Citizens Bank of Pennsylvania; and TD Bank, N.A., have a significant presence in the market. Unemployment rates in the MSA and the bank s assessment area declined during the evaluation period. Only Philadelphia County continued to exceed the statewide unemployment rate. The highest unemployment rates throughout the evaluation period were in Philadelphia County. The 2012, 2013, and 2014 area unemployment rates are presented in the following table. Locations Univest Bank and Trust Co. Assessment Area Unemployment Rates Annual 2012 () Annual 2013 () Annual 2014 () Bucks County 7.4 6.9 5.2 Montgomery County 6.8 6.3 4.6 Philadelphia County 10.7 10.0 8.0 Philadelphia MSA 8.5 7.8 6.1 Pennsylvania 7.9 7.4 5.8 United States 8.1 7.4 6.2 Unemployment data is from the Bureau of Labor Statistics. Rates are not seasonally adjusted. HOUSING According to 2010 Census data, the assessment area contained 1.2 million housing units, 59 of which were owner-occupied, 31 rental units, and 10 were vacant. In low-income census tracts, the owner-occupancy rate was 39, decreasing to 33 following the revised OMB boundaries. Rental housing accounted for 42 of housing, increasing to 48 with the revised boundaries. Vacant properties accounted for 19 of all housing located in low-income tracts both before and after the revised boundaries. In moderate-income census tracts, the owneroccupancy rate was 52, decreasing to 50 after the revised boundaries. Rental housing in moderate-income tracts accounted for 36 of all housing, increasing only slightly to 37 with the new boundaries. Vacant properties accounted for 12 of all housing in moderate-income tracts, increasing slightly to 13 under the new boundaries. The overall owner-occupancy rate in the MSA was 59, as compared to the statewide-occupancy rate of 63. 5
Single family units comprise 71 of the total housing units in the assessment area, while two-tofour family units comprise approximately 12, multifamily units comprise 16, and mobile homes just 1. The median age of the housing stock in the assessment area is 55 years, compared to a statewide median age of 50 years. The cost of housing in the assessment area, overall, is considered less affordable than housing in the state, as a whole. Based on 2010 census data, the median housing value for the assessment area was $231,317, compared to $159,300 for the state. BORROWER INCOME DATA For purposes of evaluating the distribution of loans to borrowers of different income levels, incomes were classified based upon annually adjusted median family income data made available by the U.S. Department of Housing and Urban Development (HUD). In 2012, the median family income for the Philadelphia MD was $79,200. In 2013, the adjusted median family income for the MD decreased to $76,400. The 2014 median family income reflects the OMB revised boundaries: the Montgomery County-Bucks County-Chester County MD had a median family income of $95,400, compared to the Philadelphia MD median income level of $54,200. The following table details median family income levels in 2012 and 2013 for the Philadelphia MSA, and the 2014 median family income for the Philadelphia MD and the Montgomery-Bucks-Chester Counties MD. Metropolitan Division Year HUD Adjusted Median Family Income Low Income (<50) Moderate Income (50-less than 80) Middle Income (80-less than 120) Upper Income (120 or Greater) Philadelphia 2012 $79,200 Less than $39,600 $39,600 - $63,359 $63,360 - $95,039 $95,040 or more Philadelphia 2013 $76,400 Less than $38,200 $38,200 - $61,119 $61,120 - $91,679 $91,680 or more Montgomery- Bucks-Chester 2014 $95,400 Less than $47,700 $47,700 - $76,319 $76,320 - $114,479 $114,480 or greater Counties MD Philadelphia- Delaware Counties MD 2014 $54,200 Less than $27,100 $27,100 - $43,359 $43,360 - $65,039 $65,040 or greater GEOGRAPHIC BUSINESS DATA The percentage of businesses located within designated census tracts is used as a proxy to estimate demand for small business credit within such census tracts. In the bank s assessment area, the percentage of businesses located in low- and moderate-income census tracts is significantly lower than the percentage of businesses in middle- and upper-income tracts. Based on 2013 business data provided by Dun and Bradstreet, 11 of businesses were located in low-income tracts in the bank s assessment area, and 14 were located in moderate-income tracts. The majority of businesses were located in middle-income (31) and upper-income (44) census tracts, and 1 of businesses were located in unknown-income tracts. Based on 2014 business data and the OMB boundary revisions, 5 of businesses were located in low-income tracts and 21 were located in moderate-income tracts. A total of 40 of businesses were located in middle-income tracts and 33 were in upper-income tracts. Assessment area demographics used in evaluating Univest s performance under the CRA are detailed in the following tables. 6
Income Categories Univest Bank and Trust Co. Assessment Area Demographics Bucks, Montgomery and Philadelphia Counties, PA 2012 Tract Distribution Families by Tract Income Families < Poverty Level as of Families by Tract Families by Family Income # # # # Low-income 142 19.2 118,667 17.3 41,139 34.7 180,031 26.3 Moderate-income 141 19.1 131,319 19.2 18,965 14.4 117,548 17.2 Middle-income 212 28.7 199,608 29.1 9,914 5.0 127,751 18.6 Upper-income 229 31.0 235,524 34.4 5,294 2.2 259,863 37.9 Unknown-income 14 1.9 75 0.0 44 58.7 0 0.0 Total Assessment Area 738 100.0 685,193 100.0 75,356 11.0 685,193 100.0 Housing Housing Types by Tract Units by Tract Owner-occupied Rental Vacant # # # # Low-income 254,229 98,870 13.6 38.9 107,598 42.3 47,761 18.8 Moderate-income 258,863 134,861 18.6 52.1 93,893 36.3 30,109 11.6 Middle-income 351,900 217,823 30.0 61.9 108,134 30.7 25,943 7.4 Upper-income 370,160 273,879 37.8 74.0 75,254 20.3 21,027 5.7 Unknown-income 495 41 0.0 8.3 348 70.3 106 21.4 Total Assessment Area 1,235,647 725,474 100.0 58.7 385,227 31.2 124,946 10.1 Businesses by Tract & Revenue Size Total Businesses by Tract Less Than or = $1 Over $1 Million Revenue Not Reported Million # # # # Low-income 19,128 11.3 16,948 11.3 1,017 8.8 1,163 17.0 Moderate-income 23,897 14.1 21,409 14.2 1,311 11.4 1,177 17.2 Middle-income 51,124 30.3 45,142 30.0 3,935 34.2 2,047 29.9 Upper-income 73,592 43.6 66,298 44.0 4,943 42.9 2,351 34.4 Unknown-income 1,232 0.7 831 0.6 303 2.6 98 1.4 Total Assessment Area 168,973 100.0 150,628 100.0 11,509 100.0 6,836 100.0 Percentage of Total Businesses: 89.1 6.8 4.0 7
Income Categories Univest Bank and Trust Co. Assessment Area Demographics Bucks, Montgomery and Philadelphia Counties, PA 2013 Tract Distribution Families by Tract Income Families < Poverty Level as of Families by Tract Families by Family Income # # # # Low-income 142 19.2 118,667 17.3 41,139 34.7 180,031 26.3 Moderate-income 141 19.1 131,319 19.2 18,965 14.4 117,548 17.2 Middle-income 212 28.7 199,608 29.1 9,914 5.0 127,751 18.6 Upper-income 229 31.0 235,524 34.4 5,294 2.2 259,863 37.9 Unknown-income 14 1.9 75 0.0 44 58.7 0 0.0 Total Assessment Area 738 100.0 685,193 100.0 75,356 11.0 685,193 100.0 Housing Housing Types by Tract Units by Tract Owner-occupied Rental Vacant # # # # Low-income 254,229 98,870 13.6 38.9 107,598 42.3 47,761 18.8 Moderate-income 258,863 134,861 18.6 52.1 93,893 36.3 30,109 11.6 Middle-income 351,900 217,823 30.0 61.9 108,134 30.7 25,943 7.4 Upper-income 370,160 273,879 37.8 74.0 75,254 20.3 21,027 5.7 Unknown-income 495 41 0.0 8.3 348 70.3 106 21.4 Total Assessment Area 1,235,647 725,474 100.0 58.7 385,227 31.2 124,946 10.1 Businesses by Tract & Revenue Size Total Businesses by Tract Less Than or = $1 Over $1 Million Revenue Not Reported Million # # # # Low-income 16,042 11.2 14,131 11.1 927 8.8 984 16.8 Moderate-income 20,109 14.0 17,907 14.1 1,206 11.5 996 17.0 Middle-income 43,772 30.5 38,398 30.2 3,597 34.2 1,777 30.3 Upper-income 62,557 43.6 56,015 44.1 4,515 42.9 2.027 34.6 Unknown-income 1,054 0.7 698 0.5 278 2.6 78 1.3 Total Assessment Area 143,534 100.0 127,149 100.0 10,523 100.0 5,862 100.0 Percentage of Total Businesses: 88.6 7.3 4.1 8
Income Categories Univest Bank and Trust Co. Assessment Area Demographics Bucks, Montgomery and Philadelphia Counties, PA 2014 Tract Distribution Families by Tract Income Families < Poverty Level as of Families by Tract Families by Family Income # # # # Low-income 71 9.6 52,089 7.6 21,798 41.8 165,990 24.2 Moderate-income 195 26.4 178,729 26.1 31,815 17.8 126,259 18.4 Middle-income 272 36.9 284,879 41.6 16,043 5.6 141,745 20.7 Upper-income 186 25.2 169,421 24.7 5,656 3.3 251,199 36.7 Unknown-income 14 1.9 75 0.0 44 58.7 0 0.0 Total Assessment Area 738 100.0 685,193 100.0 75,356 11.0 685,193 100.0 Housing Housing Types by Tract Units by Tract Owner-occupied Rental Vacant # # # # Low-income 114,633 37,895 5.2 33.1 54,491 47.5 22,247 19.4 Moderate-income 340,454 169,575 23.4 49.8 126,569 37.2 44,310 13.0 Middle-income 477,702 320,336 44.2 67.1 122,297 25.6 35,069 7.3 Upper-income 302,363 197,627 27.2 65.4 81,522 27.0 23,214 7.7 Unknown-income 495 41 0.0 8.3 348 70.3 106 21.4 Total Assessment Area 1,235,647 725,474 100.0 58.7 385,227 31.2 124,946 10.1 Businesses by Tract & Revenue Size Total Businesses by Tract Less Than or = $1 Over $1 Million Revenue Not Reported Million # # # # Low-income 7,245 5.2 6,215 5.0 591 5.5 439 8.0 Moderate-income 28,902 20.7 25,149 20.4 2,440 22.6 1,313 23.9 Middle-income 56,274 40.2 50,362 40.8 3,944 36.5 1,968 35.8 Upper-income 46,390 33.2 41,157 33.3 3,531 32.7 1,702 31.0 Unknown-income 1,020 0.7 662 0.5 289 2.7 69 1.3 Total Assessment Area 139,831 100.0 123,545 100.0 10,795 100.0 5,491 100.0 Percentage of Total Businesses: 88.4 7.7 3.9 Based on 2014 Dun and Bradstreet information and the 2014 OMB Boundaries. b. SCOPE OF EXAMINATION Univest was rated satisfactory at its previous CRA Evaluation performed by the Federal Reserve Bank of Philadelphia, dated August 13, 2012. The current evaluation of Univest s CRA performance covers the period from August 14, 2012, through March 9, 2015, in accordance with the Interagency Large Institution CRA Examination Procedures adopted by the Board of Governors. Loan products evaluated include: Home-purchase and home-improvement loans and the refinancing of such loans, collectively titled Home Mortgage Disclosure Act (HMDA) loans, reported by the bank for calendar years 2012 and 2013, and year-to-date September 30, 2014. Small business loans reported by the bank, pursuant to CRA, for calendar years 2012 and 2013, and year-to-date September 30, 2014. Univest s HMDA and small business loans were compared to the aggregate of all lenders in the bank s assessment area reporting home-mortgage loans pursuant to HMDA, and small business loans pursuant to the CRA. These data are reported annually and the most recent year for which information was available is 2013. 9
For purposes of evaluating the geographic distribution of loans by census tract type, census tracts were classified on the basis of 2010 U.S. Census data. The distribution of loans to borrowers of different income levels was based upon annually adjusted median family income data made available by HUD. Additionally, Univest s performance was evaluated in terms of the demographic and business context in which the bank operates. The market for home-mortgage lending in the bank s assessment area is highly competitive. Of the 640 lenders reporting real estate loans pursuant to the HMDA in the assessment area in 2013, Univest was the 13 th largest HMDA loan originator with 1.3 of all such loan originations and purchases. Wells Fargo Bank, N.A., was the top originator, with 18.2 of the market, followed by JP Morgan Chase Bank, N.A., with 6.4. Univest ranked highest among local banks. With respect to small business loans, the bank ranked 15 th among a total of 137 small business loan reporters in the assessment area. Univest ranked the highest of all local banks, with 1.3 of the market. The top three small business loan reporters were American Express Bank, FSB; Wells Fargo Bank, N.A.; and PNC Bank N.A. According to the FDIC s Summary of Deposits Report as of June 30, 2014, there were 78 institutions operating 885 branches in the bank s assessment area, with a total of $81.5 billion in deposits. Univest ranked 7 th, with 2.3 of the deposit market. Three superregional banks together hold almost 50 of the deposit market in Bucks, Montgomery, and Philadelphia Counties: Wells Fargo Bank, N.A., holds 23.7, PNC Bank, N.A., has 13; and Citizens Bank of Pennsylvania has 12.9. To gain a better perspective on community credit needs, the Federal Reserve conducted interviews with community representatives during the course of the evaluation. Community groups identified the need for affordable housing (for purchase and for rent), first-time homebuyer programs, an increased branch presence in underserved neighborhoods, and startup capital for small businesses. c. CONCLUSIONS WITH RESPECT TO PERFORMANCE TESTS LENDING TEST The lending test evaluates an institution s lending activities based on the following characteristics: Concentration of lending within its assessment area, including HMDA, small business, and small farm lending; Geographic distribution of loans, including loans originated in low- and moderate-income census tracts; Distribution of loans to borrowers of different income levels, including low- and moderateincome borrowers and small businesses; Overall responsiveness to the credit needs of highly economically disadvantaged areas, lowincome persons, and very small businesses; and Community development lending activities. Univest s performance under the lending test is high satisfactory. 10
Assessment Areas Concentration An analysis was performed to determine the volume of loans extended inside and outside of the bank s assessment area. The analysis consisted of an evaluation of Univest s HMDA loans and small business loans. The following table indicates that a high percentage of loans were made in the bank s assessment area. A total of 81 of HMDA loans reported by Univest during the evaluation period, and 76 of the aggregate dollar amount of HMDA loans reported, were extended in the bank s assessment area. With respect to small business loans, 89 of the number of small business loans and 79 of the aggregate dollar amount of loans were extended in its assessment area. Univest Bank & Trust Co. Lending Inside and Outside the Assessment Area Loan Types Inside Outside # $(000s) # $(000s) Home Improvement 690 91.5 $38,094 89.3 64 8.5 $4,587 10.7 Home Purchase - Conventional 833 73.7 $176,006 69.8 298 26.3 $76,114 30.2 Home Purchase FHA 124 73.8 $24,704 77.4 44 26.2 $7,199 22.6 Home Purchase VA 11 78.6 $2,761 82.2 3 21.4 $596 17.8 Multi-Family Housing 6 46.2 $2,498 20.6 7 53.8 $9,600 79.4 Refinancing 1,916 81.2 $385,263 79.1 444 18.8 $101,653 20.9 Total HMDA Loans 3,580 80.6 $629,326 75.9 860 19.4 $199,749 24.1 Small Business 1,400 88.6 $213,762 78.9 180 11.4 $57,122 21.1 Total Small Business Loans 1,400 88.6 $213,762 78.9 180 11.4 $57,122 21.1 TOTAL LOANS 4,980 82.7 $843,088 76.6 1,040 17.3 $256,871 23.4 Distribution of Loans by Borrower Income Level and Revenue Size of the Business An analysis of home-mortgage lending was conducted in conjunction with a review of the demographic and economic characteristics of the assessment area to determine the extent of lending to borrowers of different income levels and businesses of different sizes, given the demographics of the area. The distribution of borrowers reflects good penetration among borrowers of different income levels and businesses of different sizes. Home-Mortgage Lending Univest s home-mortgage lending profile reflects good penetration among borrowers of different income levels in the assessment area, including low- and moderate-income borrowers. For purposes of evaluating the distribution of loans to borrowers of different income levels, the respective percentages of low- and moderate-income families in the assessment area are used as proxies to estimate demand for home-mortgage credit. As noted previously, in reviewing the bank s 2012 and 2013 lending, 2010 Census data showed 26 of families were categorized as low-income and 17 were moderate-income. In reviewing the 2014 lending, 2010 Census data with 2014 MSA boundaries showed 24 of families within the assessment area were categorized as low-income and 18 were moderate-income. 11
Generally, the higher the percentages of low- and moderate-income families in an assessment area, the greater the demand for credit is among low- and moderate-income individuals and families within the assessment area. The evaluation of Univest s distribution of home-mortgage loans to borrowers of different income levels takes into consideration the fact that the bank is operating in a highly competitive market where it competes with many other financial institutions, both large and small. The evaluation also takes into account that the bank did not operate branches in Philadelphia County prior to its merger with Valley Green Bank on January 1, 2015; however, the bank included Philadelphia County in its assessment area beginning in October 2013, because of its lending profile and its desire to comply with the spirit and intent of the CRA. The following tables compare Univest s lending to aggregate lending levels over the time period reviewed, using median family income as a proxy for loan demand. Income Level Univest Bank & Trust Co. Bucks, Montgomery, and Philadelphia Counties Distribution of HMDA Loans by Borrower Income Level Families by Income Level 2010 Census Data Univest Lending Aggregate Comparison 2012 2013 Aggregate Lending Univest Lending Aggregate Lending Low 26.3 6.4 7.4 7.0 8.4 Moderate 17.2 19.2 16.5 20.0 16.7 Middle 18.6 25.3 21.1 23.4 20.4 Upper 37.9 43.5 41.2 45.2 41.7 Unknown 0.0 5.6 13.8 4.4 12.8 Total 100 100 100 100 100 Income Level Univest Bank & Trust Co. Bucks, Montgomery, and Philadelphia Counties Distribution of HMDA Loans by Borrower Income Level Families by Income Level 2010 Census Data 2014 MSA Boundaries Univest Lending Aggregate Comparison 2014 Aggregate Lending Low 24.2 13.7 N/A Moderate 18.4 26.0 N/A Middle 20.7 26.0 N/A Upper 36.7 32.5 N/A Unknown 0.0 1.8 N/A Total 100 100 100 *2014 aggregate lending data was not available at the time of the report. Lending to Low-Income Borrowers The distribution of borrowers reflects good penetration among low-income borrowers. Over the evaluation period, the bank made 280 home-mortgage loans to low-income borrowers in its assessment area. 12
2004 Metropolitan Division Boundaries 2010 Census data shows 26 of families within the assessment area were categorized as lowincome. In 2012, Univest s lending level of 6 to low-income borrowers in the assessment area was slightly below the aggregate lending level of 7, although both the bank and aggregate lending levels were well below the proxy of 26 for low-income families, indicating limited lending opportunities with low-income borrowers for all banks. Univest originated 9 of its home-purchase loans, 4 of refinance loans, and 12 of home-improvement loans to lowincome borrowers. The bank s performance was similar to the aggregate lending for all loan categories: home-purchase loans (11), refinance loans (5), and home-improvement loans (16). In 2013, Univest s lending to low-income borrowers in its assessment area was also good. The bank s lending to low-income borrowers, at 7, was only slightly below the aggregate lending level of 8. Both the bank and aggregate lending levels were, again, below the proxy of 26 for low-income families, indicating limited lending opportunities with low-income borrowers. Univest originated 7 of its home-purchase loans, 13 of its home-improvement loans, and 5 of its refinance loans to low-income borrowers in 2013. Bank performance was below 2013 aggregate lending for home-purchase loans (10), above the aggregate for home-improvement loans (7), and below the aggregate with respect to refinance loans (16). 2014 Metropolitan Division Boundaries 2010 Census data with 2014 MSA boundaries showed 24 of families within the assessment area were categorized as low-income. In reviewing Univest s 2014 lending distribution, 14 of the bank s lending was to low-income borrowers in the assessment area, which was double its lending levels in 2012 and 2013, but well below the proxy of 24 for low-income families. In 2014, Univest originated 14 of its home-purchase loans, 9 of refinance loans, and 17 of home-improvement loans to low-income borrowers. Aggregate lending levels for 2014 were not available for comparison at the time of the evaluation. Univest s lending to low-income borrowers over the evaluation period is considered good. In assessing the level of the bank s lending among low-income borrowers, the evaluation takes into consideration that the home-mortgage credit needs of such individuals and families can be a challenge to address through conventional loan products, presenting a significant obstacle to homeownership. Further, 49 of the assessment area s renters spent more than 30 of gross income for housing, making it difficult for renters, particularly low-income renters, to save the customary down payment and closing costs necessary to purchase a home. Lending to Moderate-Income Borrowers Although challenges and obstacles to homeownership also exist for moderate-income families and individuals, Univest s overall level of HMDA lending to moderate-income borrowers was good. Over the evaluation period, the bank made 739 home-mortgage loans to moderate-income borrowers in the assessment area. 13
2004 Metropolitan Division Boundaries 2010 Census data shows 17 of families within the assessment area were categorized as moderate-income. In 2012, Univest s lending level of 19 to moderate-income borrowers was higher than both the aggregate lending level and the proxy of moderate-income families, both at 17. In 2012, Univest originated 23 of its home-purchase loans, 18 of refinance loans, and 19 of home-improvement loans to moderate-income borrowers. The bank s performance is above the peer group s performance for home-purchase loans (22) and refinance loans (14), but below the aggregate performance for home-improvement loans (22). Univest s lending to moderate-income borrowers in 2013 was also good. The bank s overall lending to moderate-income borrowers was 20, remaining above both the aggregate lending level and proxy of 17. In 2013, Univest originated 23 of its home-purchase loans, 19 of its refinance loans, and 20 of home-improvement loans to moderate-income borrowers. Performance in 2013 exceeded the aggregate for home-purchase loans (20) and refinance loans (15), and was on par with the peer group for home-improvement loans (20). 2014 Metropolitan Division Boundaries 2010 Census data with 2014 MSA boundaries showed 18 of families within the assessment area were categorized as moderate-income. Univest s 2014 lending to moderate-income borrowers at 26 was well above the proxy of 18 of moderate-income families. In 2014, Univest originated 25 of its home-purchase loans, 29 of its refinance loans, and 26 of home-improvement loans to moderate-income borrowers. Aggregate lending levels for 2014 were not available for comparison at the time of the evaluation. Distribution of Loans by Revenue Size of Business An analysis of Univest s distribution of loans to businesses reflects adequate penetration among business customers of different sizes, including small businesses. For purposes of this evaluation, a small business loan is defined as a commercial loan with an origination amount of $1 million or less. Small business loans are further analyzed to identify those loans to businesses with gross annual revenues of $1 million or less, namely small businesses. The number of businesses operating in the bank s assessment area is used as a proxy to estimate demand for business credit in the assessment area. According to 2012 business data, 168,973 businesses operated in the assessment area, with 150,628 (or 89) designated as small businesses. In 2013, the number of businesses operating in the assessment area decreased to 143,534, with 127,149, or 89, designated as small businesses. In 2014, the number of businesses in the assessment area decreased again, totaling 139,831, with 123,545, or 88, designated as small businesses. In 2012, Univest originated 499 small business loans in the assessment area, aggregating $75.5 million. Of these loans, 25 were originated to small businesses. The bank s 2012 lending to small businesses was lower than the aggregate lending level of 40 to small businesses by all lenders in the assessment area. 14
In 2013, Univest originated 580 small business loans, aggregating $84.9 million, in the assessment area. Of these loans, 24 were extended to small businesses. This performance was lower than the 2013 aggregate lending level of 48 to small businesses. In 2014, the bank originated 321 small business loans, aggregating $53.4 million, in the assessment area. Of these loans, 27 were made to small businesses. Aggregate lending levels for 2014 were not available for comparison at the time of the evaluation. Small business loans were further analyzed to determine the extent of loans originated in an amount of $100 thousand or less, in that such loans generally address the borrowing needs of small businesses. Aggregate data for 2012 show that 93 of small business loans made in the assessment area were originated in amounts of $100 thousand or less. Univest originated 62 of its small business loans in amounts of $100 thousand or less. In 2013, 92 of all small business loans made in the assessment area were originated in an amount of $100 thousand or less, compared to 64 for Univest. In 2014, the bank originated 56 of its small business loans in amounts of $100 thousand or less in its assessment area. Aggregate lending levels for 2014 were not available for comparison at the time of the evaluation. Often the credit needs of small businesses can be addressed more effectively by alternative products. In an effort to address the credit needs of such borrowers in the bank s assessment area, Univest participates in several Small Business Administration (SBA) lending programs. According to data presented by Univest, the bank originated 52 SBA loans under the Preferred Lender Program, totaling $14.1 million, and 55 Express loans, totaling $5.1 million, during the evaluation period. Univest also made 12 SBA 504 loans, aggregating $6.9 million, to help provide financing for major fixed assets such as equipment or real estate, and 1 SBA CAPLines loan, in an amount of $750 thousand, which is designed to help small businesses meet their short-term and cyclical working capital needs. Additionally, the bank originated 2 SBA Small Loan Advantage program loans, aggregating $479 thousand, and 1 SBA Community Advantage 7(a) loan, totaling $1.7 million. Geographic Distribution of Loans Given the assessment area s demographics, the geographic distribution of loans reflects adequate penetration throughout the assessment area. Home Mortgage Lending The geographic distribution of home-mortgage loans was analyzed to determine the dispersion of loans among different census tracts within the assessment area. The overall analysis reflects adequate penetration throughout the assessment area. 15
As noted earlier, the percentage of owner-occupied housing units contained within designated census tracts is used as a proxy to estimate demand for residential mortgage credit within such tracts. Generally, the greater the number of owner-occupied residential dwellings in a census tract, the greater the demand for home-mortgage credit is in the tract. As noted previously, 2010 Census data showed 14 of the owner-occupied housing stock in the assessment area was located in low-income tracts and 19 was in moderate-income tracts. The majority of owneroccupied housing was located in middle-income (30) and upper-income (38) census tracts. 2010 Census data with 2014 MSA boundaries showed 5 of the owner-occupied housing stock was located in low-income census tracts and 23 was in moderate-income tracts. The majority of housing units were in middle-income (44) and upper-income tracts (27). Although HMDA and small business bank lending in low-income tracts in particular is very limited, the bank did not add Philadelphia County to its assessment area until October 2013. In fact, prior to its merger with Valley Green Bank on January 1, 2015, Univest did not operate any branches in Philadelphia County, where the vast majority of the low- and moderate-income tracts are located. A review of the assessment area demographics using 2004 OMB boundaries shows 142 low-income tracts, of which 140 were in Philadelphia. Using the 2014 boundaries, there were 71 low-income census tracts, 61 of which were in Philadelphia. As a result, Univest was challenged in making loans in low-income areas in the city of Philadelphia, which was taken into consideration in the evaluation of the geographic distribution. In an effort to address this deficiency, the bank acquired three branch offices in Philadelphia in early 2015. The tables below present Univest s HMDA loan distribution for 2012 and 2013, as well as 2014 lending as of September 30, in comparison to the applicable owner-occupied housing proxies and the aggregate lending levels in the assessment area. Income Level Univest Bank and Trust Co. Bucks, Montgomery, and Philadelphia Counties Geographic Distribution of HMDA Loans Owner-Occupied Units (2010 Census) Univest Lending Aggregate Comparison 2012 2013 Aggregate Lending Univest Lending Aggregate Lending Low 13.6 0.9 5.3 0.4 7.0 Moderate 18.6 2.7 12.4 3.5 14.9 Middle 30.0 40.6 31.8 43.0 31.9 Upper 37.8 55.8 50.5 53.2 46.2 Total 100 100 100 100 100 16
Income Level Univest Bank and Trust Co. Bucks, Montgomery, and Philadelphia Counties Geographic Distribution of HMDA Loans Owner-Occupied Units Univest Lending Aggregate Comparison 2014 Aggregate Lending Low 5.2 1.3 N/A Moderate 23.4 20.2 N/A Middle 44.2 62.4 N/A Upper 27.2 16.0 N/A Total 100 100 N/A *2014 aggregate lending data was not available at the time of the report. Lending in Low-Income Census Tracts Univest s lending in low-income census tracts within the assessment area was adequate. Over the evaluation period, the bank made 27 home-mortgage loans in low-income census tracts in its assessment area. 2004 Metropolitan Division Boundaries 2010 Census data showed 14 of owner-occupied housing units were located in the assessment area s low-income census tracts. In 2012, Univest s lending level of 1 of its loans in lowincome tracts in the assessment area was below both the aggregate lending level of 5 and the owner-occupied housing proxy of 14. In 2012, Univest originated 3 of its home-purchase loans, less than 1 of refinance loans, 1 of home-improvement loans, and 33 of its multifamily loans in low-income census tracts. The bank s performance is below the aggregate performance levels for home-purchase loans (8) and home-improvement loans (13), but above the aggregate level for refinance loans (4) and multifamily loans (19). In 2013, Univest s lending in low-income census tracts was adequate. The bank s lending in lowincome tracts in the assessment area at less than 1 was below both the aggregate lending level (7) and the owner-occupied housing proxy (14). Univest originated less than 1 of its homepurchase loans and refinance loans, and no home-improvement loans or multifamily loans, in low-income census tracts in 2013. The bank s performance is below the peer group s performance for home-purchase loans (9), refinance loans (6), home-improvement loans (13), and multifamily loans (19). 2014 Metropolitan Division Boundaries 2010 Census data with 2014 MSA boundaries showed 5 of owner-occupied housing units were located in low-income census tracts. The bank s 1 lending level in low-income tracts was below the proxy of 5 of housing. However, examiners noted that the revised MD boundaries in the Philadelphia MSA resulted in a 50 decrease in the number of low-income census tracts in the bank s assessment area and, despite the decrease, loan distribution in low-income tracts stayed about the same. 17
Univest s loan volume remained low in 2014. The bank originated 8 loans in low-income tracts in 2014, compared to 14 loans in low-income tracts in 2012, and 5 loans in 2013. Aggregate lending levels for 2014 were not available for comparison at the time of the evaluation. Lending in Moderate-Income Census Tracts Univest s lending in moderate-income census tracts in its assessment area was adequate. Over the evaluation period, the bank made 211 home-mortgage loans in moderate-income census tracts in the assessment area. 2004 Metropolitan Division Boundaries 2010 Census data showed 19 of owner-occupied housing units were located in the assessment area s moderate-income tracts. In 2012, Univest s lending level of 3 of loans in these tracts was well below both the aggregate lending level of 12 and the owner-occupied housing proxy of 19. In 2012, Univest originated 6 of its home-purchase loans, 2 of refinance loans, and 1 of its home-improvement loans in moderate-income census tracts. Univest made no multifamily loans in moderate-income tracts. The bank s performance is below the aggregate level performance for home-purchase loans (16), refinance loans (10), home-improvement loans (19), and multifamily loans (20). In 2013, Univest s lending in moderate-income tracts in its assessment area was adequate. The bank s 4 lending level in these tracts was well below both the aggregate lending level of 15 and the owner-occupied housing proxy of 19. Univest originated 5 of its home-purchase loans, 3 of refinance loans, and 3 home-improvement loans in moderate-income census tracts. The bank made no multifamily loans in moderate-income tracts in 2013. The bank s performance is below the aggregate levels for home-purchase loans (17), refinance loans (13), home-improvement loans (18), and multifamily loans (23). 2014 Metropolitan Division Boundaries 2010 Census data with 2014 MSA boundaries showed 23 of owner-occupied housing was located in moderate-income tracts. The bank s lending in moderate-income census tracts, at 20, was significantly higher than the previous years evaluated, and closer to the housing proxy of 23. Examiners noted an overall decrease in Univest s home-mortgage loan volume, although lending in moderate-income tracts increased over the evaluation period. Univest originated 120 loans in moderate-income tracts in 2014, compared to 44 loans in moderate-income tracts in 2012, and 47 loans in 2013. This increase is mainly attributed to the revised boundaries which resulted in a 38 increase in the number of moderate-income tracts in the bank s assessment area. Aggregate lending levels for 2014 were not available for comparison at the time of the evaluation. Small Business Lending The geographic distribution of Univest s small business loans reflects adequate dispersion throughout the assessment area, in the context of the assessment area s economic characteristics during the evaluation period. 18
The geographic distribution of businesses in the assessment area by census tract type is used as a proxy for small business loan demand. Generally, the greater the number of businesses located in a tract, the greater the demand for small business loans in the tract. Based on available business data, in both 2012 and 2013, 11 of businesses were located in the assessment area s lowincome census tracts and 14 were in moderate-income tracts. In 2014, with the 2014 MSA boundaries, 5 of businesses were located in low-income tracts and 21 were in moderate income tracts. The table on the following page presents Univest s small business lending distribution for 2012, 2013, and 2014 in comparison to applicable business proxies for each of the years evaluated, and the 2012 and 2013 aggregate lending levels in the assessment area. Census Tract Income Level Businesses By Tract Income Level 2012 Univest Bank and Trust Co. Bucks, Montgomery, and Philadelphia Counties Geographic Distribution of Small Business Loans Businesses By Tract Income Level 2013 Univest Lending Aggregate Comparison 2012 2013 Aggregate Lending Univest Lending Aggregate Lending Low 11.3 11.2 0.4 6.4 0.0 7.0 Moderate 14.1 14.0 1.6 10.3 0.9 10.8 Middle 30.3 30.5 38.9 30.3 46.9 30.3 Upper 43.6 43.6 59.1 49.3 52.2 49.3 Unknown 0.7 0.7 0.0 3.6 0.0 2.5 Total 100 100 100 100 100 100 Census Tract Income Level Univest Bank and Trust Co. Bucks, Montgomery, and Philadelphia Counties Geographic Distribution of Small Business Loans Businesses By Tract Income Level 2014 Univest Lending Aggregate Comparison 2014 Aggregate Lending Low 5.2 0.3 N/A Moderate 20.7 15.0 N/A Middle 40.2 74.5 N/A Upper 33.2 10.3 N/A Unknown 0.7 0.0 N/A Total 100 100 N/A *2014 aggregate lending data was not available at the time of the report. Lending in Low-Income Census Tracts Univest s 2012 lending in low-income census tracts was poor. The bank originated less than 1 of its small business loans in the assessment area s low-income census tracts. A review of the aggregate lending levels for 2012 show that 6 of all small business loans originated in the assessment area were made in low-income tracts. The bank s lending level in low-income tracts was lower than both the aggregate lending level and the business proxy of 11. 19
The bank s lending in low-income geographies in 2013 was also poor. Univest originated no small business loans in low-income census tracts. The aggregate lending level was 7 of loans and the applicable proxy was 11 of businesses in the assessment area s low-income census tracts. In 2014, Univest s lending to low-income census tracts was poor. Univest made less than 1 of its small business loans in low-income tracts, despite the fact that 5 of businesses operated in these tracts. Aggregate lending data was not available for comparison at the time of the evaluation. Lending in Moderate-Income Census Tracts In 2012, Univest s small business lending in moderate-income census tracts was adequate. The bank originated 2 of its small business loans in the assessment area s moderate-income tracts. A review of the aggregate lending levels for 2012 shows that 10 of all small business loans originated in the assessment area were made in these tracts. The bank s 2012 lending level in moderate-income tracts lagged both the aggregate lending level and the business proxy of 14. The bank s 2013 lending in moderate-income tracts was also adequate. Univest originated 1 of small business loans in moderate-income census tracts. This lagged both the aggregate lending level of 11 and the applicable proxy of 14. In 2014, Univest s lending in moderate-income census tracts was good. The bank originated 15 of its loans in moderate-income tracts, compared to the business proxy of 21. Examiners noted an overall decrease in Univest s small business loan volume, although lending in moderateincome tracts increased over the evaluation period. Univest originated 48 loans in moderateincome tracts in 2014, compared to just 8 loans in moderate-income tracts in 2012, and 5 loans in 2013. This increase can partly be attributed to the 38 increase in the number of moderateincome tracts in the bank s assessment area. Aggregate lending data was not available for comparison at the time of the evaluation. Community Development Lending Univest s overall community development lending is substantial. During the period evaluated, the bank made 25 community development loans, totaling $32 million. Of the 25 community development loans, 19 loans, totaling $3 million, were made inside its assessment area. Thirteen of the loans, totaling $2.6 million, supported affordable housing initiatives by providing approximately 374 units of affordable housing in the assessment area. The loans were originated for the purchase or rehabilitation of multifamily rental housing for low- and moderate-income households and senior citizens. An additional six loans, totaling $370 thousand, provided financing to organizations offering community development services in the bank s assessment area. 20
Univest made six community development loans, totaling $29.4 million, which support activities to revitalize and stabilize low- and moderate-income areas outside the bank s assessment area. The loans were made in the cities of Allentown and Bethlehem in the Allentown-Bethlehem- Easton MSA. The MSA is adjacent to Univest s assessment area and the bank operates a loan production office there. The six community development loans in the Allentown MSA are to revitalize and stabilize an economically depressed region in close proximity to its assessment area, including creating jobs for area residents inside Univest s assessment area. 2 The bank s overall level of community development lending is responsive to community needs because it supports a need for affordable rental housing in the Philadelphia suburban communities. Multiple community contacts conducted during the evaluation period identified affordable housing as a critical need in the assessment area due to comparatively high housing costs. Innovative and Flexible Lending The bank made additional efforts to support affordable housing initiatives in its assessment area by participating in the Community Lenders Community Development Corporation (Community Lenders). Community Lenders is a consortium of community banks, operating in Bucks, Montgomery, Delaware and Philadelphia Counties, which serves as a vehicle for community revitalization by financing and investing in housing and related community activities that address the needs of low- and moderate-income persons and areas. During the evaluation period, Univest participated in ten Community Lenders loans, with a participation share of $556 thousand. INVESTMENT TEST The investment test evaluates a financial institution s level of qualified investments that serve low- or moderate-income geographies or individuals, together with the innovativeness, complexity and responsiveness of such investments. For purposes of the CRA, the term qualified investment has been defined to include: a lawful investment, deposit, membership share, or grant, including a donation, or in-kind contribution of property, that has, as its primary purpose, community development. Qualified investments made prior to the previous evaluation, which are still outstanding, are considered under the test. Performance under the investment test is assessed as high satisfactory. Volume of Investment and Grant Activity Univest has a significant level of qualified community development investments and grants, occasionally in a leadership position. The bank s qualified investments totaled $4.8 million during the evaluation period. By dollar amount, 91 of those investments facilitate the availability of affordable housing in the assessment area. Almost 8 of investments went toward the provision of community services in the bank s assessment area and 1 to revitalizing and stabilizing low- and moderate-income communities. 2 The recent revitalization effort in downtown Allentown is the result of the creation of a state Neighborhood Improvement Zone (NIZ), which allows state tax revenues to be used to subsidize local development. Community groups mentioned the NIZ as an opportunity for banks to help recover Allentown s economically depressed downtown. 21
The largest of the bank s qualified investments were mortgage-backed securities, totaling $3.8 million, collateralized by mortgages to low- and moderate-income borrowers, or in low- and moderate-income census tracts, in the bank s assessment area. Univest s qualified investments also included grants, contributions, and in-kind donations to local organizations that routinely provide community and economic development services that benefit low- and moderate-income people and census tracts within its assessment area. During the period evaluated, the donations totaled $963 thousand. These donations include multiple inkind donations of office space to several organizations that provide community and economic development services benefiting low- and moderate-income people within the assessment area. Innovativeness or Complexity of Qualified Investment Univest makes occasional use of innovative investments to support community development initiatives. As an example, the bank provides office space to several area nonprofit groups to assist them in their provision of services to low- and moderate-income members of the community. Responsiveness to Credit and Community Development Needs Univest has demonstrated good responsiveness to credit and community development needs through the use of investments to support community development initiatives. The vast majority of the bank s qualified investments support affordable housing, a critical need identified through community interviews in the bank s assessment area. SERVICE TEST The service test evaluates the financial services provided by a financial institution using the following characteristics: the accessibility of delivery systems within an assessment area, including the distribution of an institution s branch offices and alternative delivery mechanisms; the impact of changes in branch locations upon low- and moderate-income census tracts or low- and moderate-income persons in the assessment area; the reasonableness of business hours and services in meeting assessment area needs; and the extent to which an institution provides community development services. Performance under the service test is assessed as outstanding in the assessment area. Accessibility of Delivery Systems Branch delivery systems, as well as alternative delivery systems such as automated teller machines (ATMs), telephone and online banking, are accessible to the bank s geographies and individuals of different income levels in the bank s assessment area. 22
As shown in the table below, Univest currently operates 34 full-service branches and, using the 2014 OMB boundaries, nine branches, or 27, are located in moderate-income tracts inside the bank s assessment area. There are no branches operating inside low-income census tracts. Univest Bank and Trust Co. Retail Branch Distribution 2014 Census Tract Type Number of Branches Percent Branches Population Percent Population Low-income 0 0.0 272,095 9.2 Moderate-income 9 26.5 787,620 26.7 Middle-income 18 52.9 1,156,388 39.2 Upper-income 7 20.6 722,037 24.5 Unknown-income 0 0.0 12,989 0.4 Totals 34 100 2,951,129 100 Univest operates a network of 43 ATMs which provide electronic access to banking services. Thirty-four of the ATMs are maintained at current branch locations, and nine cash-dispensing ATMs are at remote locations in Bucks, Chester, Montgomery, and Lehigh Counties. A total of 11 of the bank s ATMs are located in moderate-income tracts. Additionally, Univest is a member of both the STAR and Allpoint ATM networks which provide greater access to Univest customers. To supplement traditional banking services, Univest provides online banking services, telephone banking services, and a smart phone mobile banking application featuring remote deposit capture that is free of charge to all customers. In addition, bank customers can pay bills, open accounts and apply for loan products via the bank s website at www.univest.net. Univest s Main Street Banking initiative targets small business owners with financial needs of $250 thousand or less. These relationships are handled exclusively through the bank s branches to provide personalized customer services to small business owners. Changes in Branch Locations Univest s record of opening and closing branch offices has not adversely affected the accessibility of its delivery systems, particularly in low- and moderate-income census tracts, or to low- and moderate-income individuals. Since its last CRA evaluation, the bank has closed one branch, located in a middle-income census tract in Silverdale, Bucks County. Customer accounts were transferred to the Hilltown Branch, less than three miles away. Reasonableness of Business Hours and Services in Meeting Assessment Area Needs Services, including business hours, do not vary in a way that inconveniences certain portions of the assessment area, particularly low- and moderate-income census tracts or individuals. All of Univest s branches are full-service. The bank operates ATMs at all of its locations. 23
Bank Products Univest offers a deposit product that provides greater access to banking services for low- and moderate-income customers. The bank s Blue Checking Account is a consumer account with a $50 minimum opening deposit, no minimum daily balance requirement, and no monthly service fee. The bank also offers a Small Business Checking account for small businesses with limited transaction activity. The account offers 200 free items (checks paid, checks deposited, or ACH debits), with no monthly service charge and no minimum balance requirement. This account allows very small businesses access to bank services. Community Development Services Univest is a leader in providing community development services in its assessment area. The following are community development services that the bank has provided. A bank employee serves on the board of directors and another serves on the loan committee of Community Lenders. This organization provides financing for community redevelopment and revitalization projects in Bucks, Chester, Delaware, Lehigh, Montgomery, Northampton and Philadelphia Counties. Two bank employees serve on the board of directors of the Keystone Opportunity Center, an organization that provides social services to low- and moderate-income persons in Bucks and Montgomery Counties. Among the organization s services are a food pantry, homeless shelter, GED classes, and a housing assistance program. An employee serves on the local board, and provides financial and technical expertise to Habitat for Humanity, a non-profit organization that provides affordable housing to low- and moderate-income families. A bank employee serves on the Economic Restructuring Committee of Souderton-Telford Main Streets, a Pennsylvania Main Street program dedicated to the revitalization of the cities of Souderton and Telford. Bank employees serve on the boards of the Central Bucks Chamber of Commerce, Upper Perkiomen Valley Chamber of Commerce, Indian Valley Chamber of Commerce, and Upper Bucks Chamber of Commerce. Several bank employees participated in the American Bankers Association s Get Smart About Credit and Teach Children to Save Day programs. These programs teach financial literacy in elementary, middle, and high schools. Several of the participating schools serve primarily low- and moderate-income students in the Univest assessment area. FAIR LENDING OR OTHER ILLEGAL CREDIT PRACTICES The bank is in compliance with the substantive provisions of the anti-discrimination laws and regulations. No evidence of discriminatory or other illegal credit practices, inconsistent with helping to meet community credit needs, was identified. 24
III. APPENDICES 25
a. GLOSSARY Aggregate lending: The number of loans originated and purchased by all reporting lenders in specified income categories as a percentage of the aggregate number of loans originated and purchased by all reporting lenders in the metropolitan area or assessment area. Census tract: A small subdivision of metropolitan and other densely populated counties. Census tract boundaries do not cross county lines; however, they may cross the boundaries of metropolitan statistical areas. Census tracts usually have between 2,500 and 8,000 persons, and its physical size varies widely depending upon population density. Census tracts are designed to be homogeneous with respect to population characteristics, economic status, and living conditions to allow for statistical comparisons. Community development: All agencies have adopted the following language. Affordable housing (including multifamily rental housing) for low- or moderate-income individuals, community services targeted to low- or moderate-income individuals, activities that promote economic development by financing businesses or farms that meet the size eligibility standards of the Small Business Administration s Development Company or Small Business Investment Company programs (13 CFR 121.301) or have gross annual revenues of $1 million or less, or activities that revitalize or stabilize low- or moderate-income geographies. Effective September 1, 2005, the Board of Governors of the Federal Reserve System, Office of the Comptroller of the Currency, and the FDIC have adopted the following additional language as part of the revitalize or stabilize definition of community development. Activities that revitalize or stabilize: (i) low- or moderate-income geographies; (ii) designated disaster areas; or (iii) distressed or underserved nonmetropolitan middle-income geographies designated by the Board, FDIC, and Office of the Comptroller of the Currency, based on a. rates of poverty, unemployment, and population loss; or b. population size, density, and dispersion. Activities that revitalize and stabilize geographies designated based on population size, density, and dispersion if they help to meet essential community needs, including needs of low- and moderate-income individuals. Consumer loan(s): A loan(s) to one or more individuals for household, family, or other personal expenditures. A consumer loan does not include a home mortgage, small business, or small farm loan. This definition includes the following categories: motor vehicle loans, credit card loans, home equity loans, other secured consumer loans, and other unsecured consumer loans. 26
Family: Includes a householder and one or more other persons living in the same household who are related to the householder by birth, marriage, or adoption. The number of family households always equals the number of families; however, a family household may also include nonrelatives living with the family. Families are classified by type as either a married-couple family or other family, which is further classified into male householder (a family with a male householder and no wife present) or female householder (a family with a female householder and no husband present). Full-scope review: Performance under the lending, investment, and service tests is analyzed considering performance context, quantitative factors (for example, geographic distribution, borrower distribution, and total number and dollar amount of investments), and qualitative factors (for example, innovativeness, complexity, and responsiveness). Geography: A census tract delineated by the United States Bureau of the Census in the most recent decennial census. Home Mortgage Disclosure Act (HMDA): The statute that requires certain mortgage lenders that do business or have banking offices in a metropolitan statistical area to file annual summary reports of their mortgage lending activity. The reports include such data as the race, gender, and the income of applications, the amount of loan requested, and the disposition of the application (for example, approved, denied, and withdrawn). Home mortgage loans: Includes home purchase and home improvement loans as defined in the HMDA regulation. This definition also includes multifamily (five or more families) dwelling loans, loans for the purchase of manufactured homes, and refinancings of home improvement and home purchase loans. Household: Includes all persons occupying a housing unit. Persons not living in households are classified as living in group quarters. In 100 percent tabulations, the count of households always equals the count of occupied housing units. Limited-scope review: Performance under the lending, investment, and service tests is analyzed using only quantitative factors (for example, geographic distribution, borrower distribution, total number and dollar amount of investments, and branch distribution). Low-income: Individual income that is less than 50 percent of the area median income, or a median family income that is less than 50 percent, in the case of a geography. Market share: The number of loans originated and purchased by the institution as a percentage of the aggregate number of loans originated and purchased by all reporting lenders in the metropolitan area/assessment area. Metropolitan area (MA): A metropolitan statistical area (MSA) or a metropolitan division (MD) as defined by the Office of Management and Budget. A MSA is a core area containing at least one urbanized area of 50,000 or more inhabitants, together with adjacent communities having a high degree of economic and social integration with that core. A MD is a division of a MSA based on specific criteria including commuting patterns. Only a MSA that has a population of at least 2.5 million may be divided into MDs. 27
Middle-income: Individual income that is at least 80 percent and less than 120 percent of the area median income, or a median family income that is at least 80 percent and less than 120 percent, in the case of a geography. Moderate-income: Individual income that is at least 50 percent and less than 80 percent of the area median income, or a median family income that is at least 50 percent and less than 80 percent, in the case of a geography. Multifamily: Refers to a residential structure that contains five or more units. Other products: Includes any unreported optional category of loans for which the institution collects and maintains data for consideration during a CRA examination. Examples of such activity include consumer loans and other loan data an institution may provide concerning its lending performance. Owner-occupied units: Includes units occupied by the owner or co-owner, even if the unit has not been fully paid for or is mortgaged. Qualified investment: A qualified investment is defined as any lawful investment, deposit, membership share, or grant that has as its primary purpose community development. Rated area: A rated area is a state or multistate metropolitan area. For an institution with domestic branches in only one state, the institution s CRA rating would be the state rating. If an institution maintains domestic branches in more than one state, the institution will receive a rating for each state in which those branches are located. If an institution maintains domestic branches in two or more states within a multistate metropolitan area, the institution will receive a rating for the multistate metropolitan area. Small loan(s) to business(es): A loan included in loans to small businesses as defined in the Consolidated Report of Condition and Income (Call Report) and the Thrift Financial Reporting (TFR) instructions. These loans have original amounts of $1 million or less and typically are either secured by nonfarm or nonresidential real estate or are classified as commercial and industrial loans. However, thrift institutions may also exercise the option to report loans secured by nonfarm residential real estate as small business loans if the loans are reported on the TFR as nonmortgage, commercial loans. Small loan(s) to farm(s): A loan included in loans to small farms as defined in the instructions for preparation of the Consolidated Report of Condition and Income (Call Report). These loans have original amounts of $500,000 or less and are either secured by farmland, or are classified as loans to finance agricultural production and other loans to farmers. Upper-income: Individual income that is more than 120 percent of the area median income, or a median family income that is more than 120 percent, in the case of a geography. 28
b. HMDA LOAN DISTRIBUTION TABLES 29
2012 HMDA LOAN DISTRIBUTION TABLE BUCKS, MONTGOMERY AND PHILADELPHIA COUNTIES Income Categories By Tract Income HMDA By Borrower Income # $(000s) # $(000s) Home Purchase Low 9 2.8 1,990 2.9 27 8.5 2,367 3.5 Moderate 18 5.7 2,566 3.7 74 23.4 11,203 16.3 Low/Moderate Total 27 8.5 4,556 6.6 101 32.0 13,570 19.8 Middle 122 38.6 22,729 33.1 73 23.1 15,401 22.5 Upper 167 52.8 41,291 60.2 130 41.1 36,718 53.5 Unknown 0 0.0 0 0.0 12 3.8 2,887 4.2 Total 316 100.0 68,576 100.0 316 100.0 68,576 100.0 Refinance Low 2 0.2 174 0.1 45 4.3 4,406 2.0 Moderate 23 2.2 3,110 1.4 188 18.0 26,683 12.4 Low/Moderate Total 25 2.4 3,284 1.5 233 22.3 31,089 14.4 Middle 416 39.8 75,424 35.0 268 25.6 48,592 22.5 Upper 605 57.8 136,897 63.5 483 46.2 123,323 57.2 Unknown 0 0.0 0 0.0 62 5.9 12,601 5.8 Total 1,046 100.0 215,605 100.0 1,046 100.0 215,605 100.0 Home Improvement Low 2 0.8 88 0.5 32 12.1 967 5.5 Moderate 3 1.1 212 1.2 51 19.2 2,737 15.7 Low/Moderate Total 5 1.9 300 1.7 83 31.3 3,704 21.2 Middle 123 46.4 8,741 50.1 72 27.2 4,449 25.5 Upper 137 51.7 8,409 48.2 96 36.2 7,521 43.1 Unknown 0 0.0 0 0.0 14 5.3 1,776 10.2 Total 265 100.0 17,450 100.0 265 100.0 17,450 100.0 Multi-Family Low 1 33.3 203 25.3 0 0.0 0 0.0 Moderate 0 0.0 0 0.0 0 0.0 0 0.0 Low/Moderate Total 1 33.3 203 25.3 0 0.0 0 0.0 Middle 1 33.3 300 37.4 0 0.0 0 0.0 Upper 1 33.3 300 37.4 0 0.0 0 0.0 Unknown 0 0.0 0 0.0 3 100.0 803 100.0 Total 3 100.0 803 100.0 3 100.0 803 100.0 HMDA Totals Low 14 0.9 2,455 0.8 104 6.4 7,740 2.6 Moderate 44 2.7 5,888 1.9 313 19.2 40,623 13.4 Low/Moderate Total 58 3.6 8,343 2.8 417 25.6 48,363 16.0 Middle 662 40.6 107,194 35.4 413 25.3 68,442 22.6 Upper 910 55.8 186,897 61.8 709 43.5 167,562 55.4 Unknown 0 0.0 0 0.0 91 5.6 18,067 6.0 Total 1,630 100.0 302,434 100.0 1,630 100.0 302,434 100.0 30
2013 HMDA LOAN DISTRIBUTION TABLE BUCKS, MONTGOMERY AND PHILADELPHIA COUNTIES Income Categories By Tract Income HMDA By Borrower Income # $(000s) # $(000s) Home Purchase Low 2 0.5 417 0.5 24 6.6 2,936 3.7 Moderate 17 4.6 2,471 3.1 84 23.0 13,362 17.0 Low/Moderate Total 19 5.2 2,888 3.7 108 29.5 16,298 20.7 Middle 164 44.8 30,092 38.2 96 26.2 19,161 24.3 Upper 183 50.0 45,753 58.1 149 40.7 40,809 51.8 Unknown 0 0.0 0 0.0 13 3.6 2,465 3.1 Total 366 100.0 78,733 100.0 366 100.0 78,733 100.0 Refinance Low 3 0.4 271 0.2 38 5.2 3,948 2.7 Moderate 23 3.1 2,315 1.6 137 18.7 20,498 14.2 Low/Moderate Total 26 3.5 2,586 1.8 175 23.9 24,446 16.9 Middle 307 41.9 52,739 36.5 166 22.6 29,250 20.3 Upper 400 54.6 89,018 61.7 356 48.6 85,511 59.2 Unknown 0 0.0 0 0.0 36 4.9 5,136 3.6 Total 733 100.0 144,343 100.0 733 100.0 144,343 100.0 Home Improvement Low 0 0.0 0 0.0 33 12.8 859 6.0 Moderate 7 2.7 154 1.1 51 19.8 1,884 13.1 Low/Moderate Total 7 2.7 154 1.1 84 32.7 2,743 19.1 Middle 111 43.2 5,071 35.4 55 21.4 2,966 20.7 Upper 139 54.1 9,116 63.6 109 42.4 8,255 57.6 Unknown 0 0.0 0 0.0 9 3.5 377 2.6 Total 257 100.0 14,341 100.0 257 100.0 14,341 100.0 Multi-Family Low 0 0.0 0 0.0 0 0.0 0 0.0 Moderate 0 0.0 0 0.0 0 0.0 0 0.0 Low/Moderate Total 0 0.0 0 0.0 0 0.0 0 0.0 Middle 1 100.0 485 100.0 0 0.0 0 0.0 Upper 0 0.0 0 0.0 0 0.0 0 0.0 Unknown 0 0.0 0 0.0 1 100.0 485 100.0 Total 1 100.0 485 100.0 1 100.0 485 100.0 HMDA Totals Low 5 0.4 688 0.3 95 7.0 7,743 3.3 Moderate 47 3.5 4,940 2.1 272 20.0 35,744 15.0 Low/Moderate Total 52 3.8 5,628 2.4 367 27.0 43,487 18.3 Middle 583 43.0 88,387 37.2 317 23.4 51,377 21.6 Upper 722 53.2 143,887 60.5 614 45.2 134.575 56.6 Unknown 0 0.0 0 0.0 59 4.3 8,463 3.6 Total 1,357 100.0 237,902 100.0 1,357 100.0 237,902 100.0 31
2014 HMDA LOAN DISTRIBUTION TABLE BUCKS, MONTGOMERY AND PHILADELPHIA COUNTIES Income Categories By Tract Income HMDA By Borrower Income # $(000s) # $(000s) Home Purchase Low 4 1.4 482 0.9 41 14.3 5,386 9.6 Moderate 55 19.2 8,488 15.1 71 24.8 11,975 21.3 Low/Moderate Total 59 20.6 8,970 16.0 112 39.2 17,361 30.9 Middle 171 59.8 34,682 61.8 68 23.8 14,244 25.4 Upper 56 19.6 12,510 22.3 102 35.7 24,099 42.9 Unknown 0 0.0 0 0.0 4 1.4 458 0.8 Total 286 100.0 56,162 100.0 286 100.0 56,162 100.0 Refinance Low 4 2.9 325 1.3 12 8.8 1,238 4.9 Moderate 30 21.9 4,314 17.0 40 29.2 6,910 27.3 Low/Moderate Total 34 24.8 4,639 18.3 52 38.0 8,148 32.2 Middle 87 63.5 16,549 65.4 38 27.7 6,910 27.3 Upper 16 11.7 4,127 16.3 45 32.8 10,012 39.5 Unknown 0 0.0 0 0.0 2 1.5 245 1.0 Total 137 100.0 25,315 100.0 137 100.0 25,315 100.0 Home Improvement Low 0 0.0 0 0.0 28 16.7 736 11.7 Moderate 35 20.8 1,292 20.5 43 25.6 1,664 26.4 Low/Moderate Total 35 20.8 1,292 20.5 71 42.3 2,400 38.1 Middle 111 66.1 3,865 61.3 48 28.6 1,450 23.0 Upper 22 13.1 1,146 18.2 46 27.4 2,437 38.7 Unknown 0 0.0 0 0.0 3 1.8 16 0.3 Total 168 100.0 6,303 100.0 168 100.0 6,303 100.0 Multi-Family Low 0 0.0 0 0.0 0 0.0 0 0.0 Moderate 0 0.0 0 0.0 0 0.0 0 0.0 Low/Moderate Total 0 0.0 0 0.0 0 0.0 0 0.0 Middle 1 50.0 735 60.7 0 0.0 0 0.0 Upper 1 50.0 475 39.3 0 0.0 0 0.0 Unknown 0 0.0 0 0.0 2 100.0 1,210 100.0 Total 2 100.0 1,210 100.0 2 100.0 1,210 100.0 HMDA Totals Low 8 1.3 807 0.9 81 13.7 7,360 8.3 Moderate 120 20.2 14,094 15.8 154 26.0 20,549 23.1 Low/Moderate Total 128 21.6 14,901 16.7 235 39.6 27,909 31.4 Middle 370 62.4 55,831 62.7 154 26.0 22,604 25.4 Upper 95 16.0 18,258 20.5 193 32.5 36,548 41.1 Unknown 0 0.0 0 0.0 11 1.9 1,929 2.2 Total 593 100.0 88,990 100.0 593 100.0 88,990 100.0 32
c. SMALL BUSINESS LOAN DISTRIBUTION TABLES 33
2012 SMALL BUSINESS LOAN DISTRIBUTION TABLE BUCKS, MONTGOMERY AND PHILADELPHIA COUNTIES Income Categories SMALL BUSINESS SMALL FARM # $(000s) # $(000s) By Tract Income Low 2 0.4 1,024 1.4 0 0.0 0 0.0 Moderate 8 1.6 2,897 3.8 0 0.0 0 0.0 Low/Moderate Total 10 2.0 3,921 5.2 0 0.0 0 0.0 Middle 194 38.9 30,392 40.2 0 0.0 0 0.0 Upper 295 59.1 41,208 54.6 0 0.0 0 0.0 Unknown 0 0.0 0 0.0 0 0.0 0 0.0 Tract Unknown 0 0.0 0 0.0 0 0.0 0 0.0 Total 499 100.0 75,521 100.0 0 0.0 0 0.0 By Revenue Total $1 Million or Less 126 25.3 22,971 30.4 0 0.0 0 0.0 Over $1 Million 359 71.9 51,180 67.8 0 0.0 0 0.0 Not Known 14 2.8 1,370 1.8 0 0.0 0 0.0 Total 499 100.0 75,521 100.0 0 0.0 0 0.0 By Loan Size $100,000 or less 308 61.7 14,453 19.1 0 0.0 0 0.0 $100,001 - $250,000 105 21.0 17,939 23.8 0 0.0 0 0.0 $250,001 - $1 Million (Bus)- $500k (Farm) 86 17.2 43,129 57.1 0 0.0 0 0.0 Over $1 Million (Bus)-$500k (Farm) 0 0.0 0 0.0 0 0.0 0 0.0 Total 499 100.0 75,521 100.0 0 0.0 0 0.0 By Loan Size and Revenue $1 Million or Less $100,000 or less 68 54.0 3,756 16.4 0 0.0 0 0.0 $100,001 - $250,000 31 24.6 5,227 22.8 0 0.0 0 0.0 $250,001 - $1 Million (Bus)- $500k (Farm) 27 21.4 13,988 60.9 0 0.0 0 0.0 Over $1 Million (Bus) -$500k (Farm) 0 0.0 0 0.0 0 0.0 0 0.0 Total 126 100.0 22,971 100.0 0 0.0 0 0.0 34
2013 SMALL BUSINESS LOAN DISTRIBUTION TABLE BUCKS, MONTGOMERY AND PHILADELPHIA COUNTIES Income Categories SMALL BUSINESS SMALL FARM # $(000s) # $(000s) By Tract Income Low 0 0.0 0 0.0 0 0.0 0 0.0 Moderate 5 0.9 2,378 2.8 0 0.0 0 0.0 Low/Moderate Total 5 0.9 2,378 2.8 0 0.0 0 0.0 Middle 272 46.9 40,494 47.7 0 0.0 0 0.0 Upper 303 52.2 42,017 49.5 0 0.0 0 0.0 Unknown 0 0.0 0 0.0 0 0.0 0 0.0 Tract Unknown 0 0.0 0 0.0 0 0.0 0 0.0 Total 580 100.0 84,889 100.0 0 0.0 0 0.0 By Revenue Total $1 Million or Less 138 23.8 25,194 29.7 0 0.0 0 0.0 Over $1 Million 438 75.5 59,226 69.8 0 0.0 0 0.0 Not Known 4 0.7 469 0.6 0 0.0 0 0.0 Total 580 100.0 84,889 100.0 0 0.0 0 0.0 By Loan Size $100,000 or less 370 63.8 16,750 19.7 0 0.0 0 0.0 $100,001 - $250,000 119 20.5 21,181 25.0 0 0.0 0 0.0 $250,001 - $1 Million (Bus)- $500k (Farm) 91 15.7 46,958 55.3 0 0.0 0 0.0 Over $1 Million (Bus)-$500k (Farm) 0 0.0 0 0.0 0 0.0 0 0.0 Total 580 100.0 84,889 100.0 0 0.0 0 0.0 By Loan Size and Revenue $1 Million or Less $100,000 or less 75 54.3 3,311 13.1 0 0.0 0 0.0 $100,001 - $250,000 31 22.5 5,810 23.1 0 0.0 0 0.0 $250,001 - $1 Million (Bus)- $500k (Farm) 32 23.2 16,073 63.8 0 0.0 0 0.0 Over $1 Million (Bus) -$500k (Farm) 0 0.0 0 0.0 0 0.0 0 0.0 Total 138 100.0 25,194 100.0 0 0.0 0 0.0 35
2014 SMALL BUSINESS LOAN DISTRIBUTION TABLE BUCKS, MONTGOMERY AND PHILADELPHIA COUNTIES Income Categories SMALL BUSINESS SMALL FARM # $(000s) # $(000s) By Tract Income Low 1 0.3 210 0.4 0 0.0 0 0.0 Moderate 48 15.0 10,734 20.1 0 0.0 0 0.0 Low/Moderate Total 49 15.3 10,944 20.5 0 0.0 0 0.0 Middle 239 74.5 37,079 69.5 0 0.0 0 0.0 Upper 33 10.3 5,329 10.0 0 0.0 0 0.0 Unknown 0 0.0 0 0.0 0 0.0 0 0.0 Tract Unknown 0 0.0 0 0.0 0 0.0 0 0.0 Total 321 100.0 53,352 100.0 0 0.0 0 0.0 By Revenue Total $1 Million or Less 87 27.1 16,890 31.7 0 0.0 0 0.0 Over $1 Million 230 71.7 35,881 67.3 0 0.0 0 0.0 Not Known 4 1.2 581 1.1 0 0.0 0 0.0 Total 321 100.0 53,352 100.0 0 0.0 0 0.0 By Loan Size $100,000 or less 179 55.8 8,448 15.8 0 0.0 0 0.0 $100,001 - $250,000 83 25.9 14,800 27.7 0 0.0 0 0.0 $250,001 - $1 Million (Bus)- $500k (Farm) 59 18.4 30,104 56.4 0 0.0 0 0.0 Over $1 Million (Bus)-$500k (Farm) 0 0.0 0 0.0 0 0.0 0 0.0 Total 321 100.0 53,352 100.0 0 0.0 0 0.0 By Loan Size and Revenue $1 Million or Less $100,000 or less 47 54.0 2,215 13.1 0 0.0 0 0.0 $100,001 - $250,000 18 20.7 3,316 19.6 0 0.0 0 0.0 $250,001 - $1 Million (Bus)- $500k (Farm) 22 25.3 11,359 67.3 0 0.0 0 0.0 Over $1 Million (Bus) -$500k (Farm) 0 0.0 0 0.0 0 0.0 0 0.0 Total 87 100.0 16,890 100.0 0 0.0 0 0.0 36
d. ASSESSMENT AREA MAPS 37
ASSESSMENT AREAS 38