Spring. The City of Pittsburgh and Allegheny County. Allegheny Valley Bank of Pittsburgh. NorthWest Savings Bank. First Commonwealth

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1 Allegheny Valley Bank of Pittsburgh Bank of America Bank of New York Mellon Citizens Bank Dollar Bank ESB Bank Fidelity Savings Bank Fifth Third Bank First Commonwealth Huntington Bank Iron and Glass Bank First National Bank of Pennsylvania Laurel Savings Bank National City Bank NorthWest Savings Bank Parkvale Savings Bank PNC Bank Spring The City of Pittsburgh and PITTSBURGH COMMUNITY REINVESTMENT GROUP 1901 Center Avenue, Suite 200 Pittsburgh PA

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3 PITTSBURGH COMMUNITY REINVESTMENT GROUP Spring 2008 Financial Partner Analysis CITY OF PITTSBURGH AND ALLEGHENY COUNTY The Pittsburgh Community Reinvestment Group provides an annual analysis of the city and countywide mortgage lending patterns of its financial partners. The study is prepared using publicly available data and is designed to monitor the performance of the partner institutions in meeting their community investment requirements under the Community Reinvestment Act. The purpose of the study is to analyze and publicize the efforts of the partner institutions in meeting the needs of the communities that PCRG serves. Prepared by Jennifer A. Swartz Research Analyst PITTSBURGH COMMUNITY REINVESTMENT GROUP 1901 Centre Avenue, Suite 200 Pittsburgh, PA (412)

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5 Table of Contents Executive Summary 1 Inter-Bank Analysis 21 Bank Partner Analysis 37 City of Pittsburgh and 39 PCRG Financial Partners 47 Allegheny Valley Bank of Pittsburgh 55 Bank of America 65 Bank of New York Mellon 75 Citizens Bank 85 Dollar Bank 95 ESB Bank 105 Fidelity Savings Bank 115 Fifth Third Bank 125 First Commonwealth 135 First National Bank of Pennsylvania 145 Huntington Bank 155 Iron and Glass Bank 165 Laurel Savings Bank 175 National City Bank 185 NorthWest Savings Bank 195 Parkvale Savings Bank 205 PNC Bank 215 Appendix 225

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7 Executive Summary PITTSBURGH COMMUNITY REINVESTMENT GROUP 1901 Center Avenue, Suite 200 Pittsburgh PA

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9 Introduction The Pittsburgh Community Reinvestment Group prides itself on its partnerships with federallychartered financial institutions in. Through these partnerships, PCRG and its partner institutions work to meet the financial needs of all of the county s residents, including those of low/moderate incomes and minority races. Under the Community Reinvestment Act of 1977, these financial institutions are required to meet the credit needs of their host communities. PCRG financial partners often go above and beyond what is legally required of them. To be a PCRG financial partner is to make an outward commitment to fair lending practices, investment in low/moderate income and minority communities, diversification in products and services, and a genuine willingness to serve all populations within. PCRG acts as a bridge between financial institutions and communities. Open dialogue between lenders and community leaders is created through numerous program areas, in which residents and financiers discuss the best ways to supply capital to residents, businesses, and development organizations in underserved communities. This dialogue often leads to solutions that serve both the communities and lenders. As of January 1, 2008, PCRG is proud to have the following financial institutions as partners in their efforts to serve residents 1 : Allegheny Valley Bank of Pittsburgh First National Bank of Pennsylvania Bank of America Huntington Bank 2 Bank of New York Mellon 3 Iron and Glass Bank Citizens Bank 4 Laurel Savings Bank 5 Dollar Bank National City Bank ESB Bank NorthWest Savings Bank Fidelity Savings Bank Parkvale Savings Bank Fifth Third Bank PNC Bank First Commonwealth Financial Partner Group Performance Survey Trends in Market Share Market share analysis shows that PCRG Financial Partners 6 represent of the total market for applications in 2006, the base year for this analysis. 7 Of the 97,450 mortgage applications in 1 Please refer to Appendix for a complete list of PCRG members and partners. 2 Sky Bank was acquired by Huntington Bank in The data in this report is from 2006, so the lender groups are defined as Sky Bank but the name at the time of publication, 2008, is Huntington Bank. 3 Mellon Financial Corporation was acquired by Bank of New York in The data in this report is from 2006, so the lender groups are defined as Mellon Financial Corporation, but the name at the time of publication, 2008, is Bank of New York, Mellon. 4 The data in this report is from 2006, so the lender groups are defined as Citizens Bank of Pennsylvania, but the name at the time of publication, 2008, is Citizens Bank. 3 Laurel Savings Bank was acquired by First Commonwealth in Fall 2006, but it is included as separate entity in this report 6 Market share tables are located in the Inter-bank analysis section. 7 Lender groups for PCRG Financial Partners are defined as by the 2006 HMDA reporting Organizational Hierarchies from the National Information Center ( Refer to complete list of lender groups in Appendix. 3

10 8 in 2006, PCRG financial partners received 25,733 applications for a total of $1,725,808,000, a mere of application market share. The average loan size for PCRG partner institutions was $67,000 compared to s $94,000 average. Among PCRG financial partners, the market shares for white applicants, Hispanic or Latino applicants and upper income tracts are greater than the total market share for applications, The 19,313 applications from white applicants represent of the market share for this race in. Total loan amounts for this group also represent a higher than average market share, Hispanic or Latino applicants represent a application market share, but a lower than average total loan amount market share, Finally, upper income census tracts represent a application market share and total loan amount market share. Analysis of these groups shows that the white applicants and upper income census tracts dominate the market in mortgage applications and total loan amounts, but the Hispanic or Latino ethnicity closely follows them. Black or African American applicants and substantially minority tracts continue to be underrepresented in the mortgage market. Black or African Americans represent of the application market share for PCRG financial partners and a stunning of the total loan amounts. Substantially minority census tracts, defined as those that are composed of more than 50 minority populations, represent a application market share and a total loan amounts. Analysis shows that while the application market shares for these categories is only slightly less than the PCRG partner average, the market share for total loan amounts is 4.94 and 5.39, respectively, less than the average market shares. Trends in Application Counts had 97,450 mortgage applications in Of those applications, were for refinancing products compared to for conventional purchases, for home improvements and 3.42 for government purchases. As illustrated in Graph 1 below, total origination counts in decreased by from but only a 9.97 decrease from This significant decrease was not equally distributed between Low/Moderate and/or Substantially Minority (LMI/SM) and all other census tracts. From , application counts fell by for LMI/SM compared to only a decrease for all other census tracts. In , the between application counts for the different tracts increased, with LMI/SM rates decreasing by 9.97 while all other census tracts only decreased by All institutions, county averages and city averages in this study refer to the averages for all financial institutions, including sub prime lenders, in the county or city respectively. 4

11 Graph 1: Percentage Change in Application Counts for All Lenders in LMI/SM All Other Census Tracts Total Surprisingly, the percentage change in application counts for PCRG Partner Institutions is significantly different from the percentage changes in application counts for all lender institutions in. As illustrated in Graph 2 below, application counts did decrease by a total of 6.25 from , but the data illustrates that application counts among PCRG Partner institutions actually increased by from This indicates that PCRG financial partners were not only more successful at stemming their drop in application count than the average lender from but also that PCRG financial partners encouraged mortgage applications than other lenders from However, LMI/SM census tracts only increased applications counts by 1.51 compared to a increase for all other census tracts Graph 2: Percentage Change in Application Counts for PCRG Partner Institutions LMI/SM All Other Census Tracts Total Trends in Origination Shares Despite the fact that origination counts increased from for PCRG Financial Partners, the origination share as a percentage of all lenders origination share decreased steadily from 2004 to Table 1 illustrates that the origination share as a percentage of all lenders origination share decreased from in 2004 to in Analysis of the application counts, in Table 2, shows that PCRG Financial Partners received 25,743 total applications in 2006, which represents of the application count share for. Likewise, the origination shares for LMI/SM, 27.29, and all other census tracts, 29.58, are higher than the application account share, and respectively. 5

12 Table 1: PCRG Financial Partner Origination Share as a percentage of All Lenders Origination Share Low/Moderate and/or Substantially Minority Tracts All Other Tracts Total Table 2: PCRG Financial Partner Application Count Share as a percentage of All Lenders Application Count Share (2006) PCRG applications All applications Application Share LMI/SM 4,694 18, All Other Tracts 21,049 78, Total 25,743 97, Application Counts versus Origination Rates for All Lenders In 2006, a unique relationship existed: a decreasing application count coupled with increasing origination rates. Further analysis needs to be completed in order to determine whether the quality of applications increased during this time period or lending institutions originated more loans to less qualified consumers. Overall, in, the number of applications decreased by from but the originations increased by From application counts in decreased by 6.54 while originations increased by This relationship between increasing origination rates and decreasing application counts also impacted low income borrowers and substantially minority census tracts (those tracts with minority representation). Applications among low-income borrowers decreased by from and from , but originations increased by and respectively. Substantially minority census tracts experienced a increase in origination rates from and increase from but applications fell by and respectively for all lenders in. Table 3: Disparity Between Changes in Origination Rates and Application Counts Percentage Change in Percentage Change in Application Counts Origination Rate All Lenders PCRG Financial Partners Difference between Changes in Application Counts and Origination Rates (absolute value) PCRG Financial Partners, as a whole, did not show the same disparity between application counts and origination rates in From , application counts for PCRG Financial Partners in decreased by 6.25, and origination rates decreased by As stated earlier, PCRG Financial Partners showed a increase in application counts from , and origination rates increased by

13 The disparity does exist for low-income borrowers and substantially minority census tracts from , but not to the same extent as for All Lenders in. Applications among low-income borrowers decreased by 7.02 from , but originations increased by Substantially minority census tracts experienced a increase in origination rates from but applications fell by 8.85 for PCRG Financial Partners. Trends in Origination Distribution In 2006, of all originations made by PCRG financial partners were located in LMI/SM. Comparatively, of all originations for lending institutions in went to LMI/SM census tracts. Graphs 3 and 4 below illustrate that while origination distribution for the county has been increasing for LMI/SM census tracts, PCRG financial partners origination distribution to these census tracts decreased by 0.04 in This means that unequal distribution of mortgage originations is increasing slightly in but not necessarily amongst PCRG financial partners Graph 3: Origination Distribution for PCRG Financial Partners Graph 4: Origination Distribution for All Lenders in Low /Mod and/or Sub Minority All Other Census Tracts Low /Mod and/or Sub Minority All Other Census Tracts Ultimately, the unequal distribution of originations between census tracts for all lenders, including PCRG financial partner institutions, illustrates that the traditionally underserved census tracts remain underserved. This conclusion is further exemplified by calculating the percentage of applications by census tract. Ideally, the percentage of applications by census tract should equal the percentage of distribution of originations. LMI/SM census tracts filed 18,544 applications, of total applications, but those census tracts only received of the origination distribution. A similar controversy exists within PCRG financial institutions. LMI/SM census tracts filed 4,694 applications in 2006, of total applications for these institutions, but LMI/SM census tracts only received of the origination distribution. Trends in Origination Rate As a group, PCRG financial partners held a higher origination rate than the county average in all but four categories, which suggests PCRG partners exhibit a relatively stronger commitment to providing financial services to the conventionally underserved populations. All lenders in averaged an origination rate for loans intended for government purchases, but PCRG partners showed a origination rate for this category, as illustrated in 7

14 Graph 5 below. Similarly, of the 43 applications from borrowers of two or more minority races, averaged a origination rate, but PCRG partner institutions demonstrated a origination rate. Hispanic or Latino mortgage applicant in Allegheny County experienced a origination rate, but they confronted a 50 origination rate at PCRG partner institutions. Finally, of the four applications where tract income was not available, generated a 50 origination rate, while PCRG institutions received and denied one application. Graph 5: Categories where PCRG Financial Partners exhibit Origination Rates less than Average (2006) PCRG Financial Partners All Lenders Purchase - Government 2 or More Minority s Hispanic or Latino Tract Despite the fact that PCRG financial partners held lower origination rates in four categories, PCRG partners origination rates were 1.11 times larger than the county, by average. While this is impressive, it is a decrease from 2005, where PCRG partners origination rates were 1.30 times larger than the county average. Graph 6 illustrates that for LMI/SM census tracts PCRG financial partners origination rates averaged compared to a average origination rate for. For all census tracts, PCRG partners origination rates averaged compared to a origination rate average for. The disparity between the LMI/SM tracts and all other tracts can also be seen in Graph Graph 6: Origination Rate for PCRG Financial Partners versus All Lenders in (2006) Low/Mod and/or Sub Minority All Other Census Tracts Total 0.00 PCRG Financial Partners All Lenders Ideally, origination rates are consistent across tracts. However, all lenders in the county, including PCRG financial partners, held disparate origination rates between LMI/SM and all other tracts in While PCRG financial partners held a higher origination rate in LMI/SM tracts than the county average, the disparity across tracts experienced by PCRG financial partners in 2006 was greater than that experienced by the average lender. The disparity is calculated by subtracting the origination rate for LMI/SM tracts from all other tracts. PCRG partners disparity equals 18.2, while the county average equals Compared with 2005 data, PCRG financial partners disparities decreased by 3.12 but s disparity increased by

15 Graph 7: Origination Rates for PCRG Financial Partners versus All Lenders in LMI/SM Tracts ( ) PCRG Financial Partners All Lenders Graph 7 illustrates that both PCRG financial partners and Allegheny County on average experienced a decrease in the mortgage origination rate for LMI/SM census tracts in 2005, but the origination rates for these tracts increased again in 2006.Thus, PCRG financial partner institutions provided loans to these conventionally underserved populations at a higher rate than other institutions, but they were less successful in providing services equally to the different minority census tract. Conversely, not only provided mortgages to these populations at a lower rate on average than PCRG partners but also increased the level of inequality in the distribution of the loans in Origination/Denial Ratios As illustrated in Graph 8 to the right, analysis of origination/denial ratios show that PCRG Financial Partners are times more likely to originate conventional purchase mortgages than deny them, compared to an 8.12 ratio for all lenders in Graph 8: Origination / Denial Ratio by Purpose Purchase - Conventional Purchase - Government Home Improvement PCRG Financial Partners PCRG Financial Partners are also 2.33 times more likely to refinance mortgages than deny them, compared to a 1.32 ratio for all lenders in Refinancing Conclusion Analysis of the market shares for white applicants, Hispanic or Latino applicants and upper income tracts shows that the white applicants and upper income census tracts dominate the market in mortgage applications and total loan amounts for PCRG financial partner institutions, but the Hispanic or Latino ethnicity closely follows them. PCRG financial partners also exhibit higher than average origination rates for white applicants and upper income census tracts. Of the 41 categories outlined in standard summary reports, the percentages of applications by category for PCRG Financial Partners are greater than or equal to (within 0.50 above or below) the Allegheny County average in 27 categories. The specific breakdown is shown in graph 9. 9

16 Graph 9 - Comparing Categories Percentage of Application Counts by category for PCRG Financial Partners versus All Lenders PCRG Partners higher than average equal (within 0.5) 15 Avgerage higher than PCRG Partners Overall, PCRG partners origination rates were 1.11 times larger than the county, by average. While PCRG financial partners held a higher origination rate in LMI/SM tracts than the county average, the disparity across tracts experienced by PCRG financial partners in 2006 was greater than that experienced by the average lender. This indicates that PCRG financial partners tend to represent the minority census tracts better than other financial institutions in but the disparity among the lending still needs to be decreased. Financial Partner Group Performance Survey Allegheny Valley Bank of Pittsburgh Allegheny Valley Bank of Pittsburgh received 440 total applications in 2006, ranking 12 th in overall market share for amongst PCRG financial partners. The institution ranked 12 th and 11 th in market share for Black or African American applicants and Hispanic or Latino applicants respectively. It tied ESB Bank and Fifth Third Bank for the 10 th in market share, 0.21, for low income tracts. Finally, it ranked 11 th for market share for substantially minority tracts. The institution received 10 applications from Black or African Americans in in Its origination rate for these applicants was The county average origination rate for these applicants was The institution experienced a decrease in origination rates for these applicants from The county, on average, experienced a increase in its origination rate for these applicants during the same period. The institution received 63 applications from low-income applicants in in Its origination rate for these applicants was 38.10, which was a decrease from The county average origination rate for these applicants is The county, on average, experienced a increase in origination rates for these applicants in the same period. Allegheny Valley Bank of Pittsburgh received 104 applications from low/moderate income or substantially minority tracts in in 2006 and its origination rate was The county average origination rate for these tracts was Between 2004 and 2006, the institution experienced an change increase in the origination rate for these applicants. During the same time period, experienced a increase in origination rates for these tracts. 10

17 Bank of America Bank of America does not have a branch in, so it is important to note that the only HMDA lending reported in this study is attributed to loan line, internet or retail sales, which are not assessed by a regulator during a CRA exam. Based on the figures available for Bank of America, it received 994 applications from in 2006 and ranked 6 th in overall market share for amongst PCRG financial partners. The institution ranked 6 th and 4 th in market share for Black or African American applicants and Hispanic or Latino applicants respectively. It also ranked 6 th in market share for both low income tracts and substantially minority tracts. The institution received 32 applications from Black or African Americans in in Its origination rate for these applicants was The county average origination rate for these applicants was The institution experienced a increase in origination rates for these applicants from The county, on average, experienced a increase in its origination rate for these applicants during the same period. The institution received 48 applications from low-income applicants in in Its origination rate for these applicants was 60.42, which was a 4.57 increase from The county average origination rate for these applicants is The county, on average, experienced a increase in origination rates for these applicants in the same period. Bank of America received 121 applications from low/moderate income or substantially minority tracts in in 2006 and its origination rate was The county average origination rate for these tracts was Between 2004 and 2006, the institution experienced a change increase, and experienced a increase in origination rates for these tracts. Bank of New York Mellon 9 Mellon Financial Corporation ranked 17 th for total market share for mortgage applications again this year, but the institution sold Mellon Bank, N.A. s retail banking operations to Citizens Bank of Pennsylvania (a PCRG partner) in As distinguished from the other financial partners listed, Mellon Bank, N.A. is designated as a "wholesale bank" under the Community Reinvestment Act (CRA). A wholesale bank is not in the business of extending home mortgage, small-business, smallfarm or consumer loans to the general public. Therefore, Mellon N.A.'s mortgage originations are accommodations made to existing clients; and, the limited numbers of mortgage originations are consistent with its CRA designation. 10 Overall, it had 21 mortgage applications, representing 0.02 of the market share in. The institution received 0 applications from Black or African Americans in in 2006, so an origination rate is not applicable to this category. The county average origination rate for these applicants was The institution s percentage change in origination rates from 9 Mellon Financial Corporation was acquired by Bank of New York in The data in this report is from 2006, so the lender groups are defined as Mellon Financial Corporation, but the name at the time of publication, 2008, is Bank of New York, Mellon. 10 Definition of a wholesale bank available at 11

18 is not applicable because of insufficient data for this category. The county, on average, experienced a increase in its origination rate for these applications from The institution received 1 application from low-income applicants in in However, the origination rate for these applicants was The county average origination rate for these applicants is The institution did not experience any change in the origination rate for low-income applicants from The county, on average, experienced a increase in origination rates for these applicants in the same period. Mellon Financial Corporation received 0 applications from low/moderate income or substantially minority tracts in in 2006, which means origination rates are not applicable. The county average origination rate for these tracts was Between 2004 and 2006, experienced a increase in origination rates for these tracts. LMI/SM data for was unavailable for Mellon Financial Corporation during that time period. Citizens Bank 11 Citizens Bank of Pennsylvania received 6,482 applications in 2006 and decreased from ranking 1 st in overall market share among PCRG Financial Institutions in 2005 to ranking 2 nd in The institution ranked number one among PCRG financial partners in low income applicants, black or African American applicants, low income tracts, and substantially minority tracts. The institution received 543 applications from Black or African Americans in in Its origination rate for these applicants was The county average origination rate for these applicants was The institution experienced a increase in origination rates for these applicants from The county, on average, experienced a increase in its origination rate for these applicants during the same period. The institution received 1,100 applications from low-income applicants in in Its origination rate for these applicants was 30.82, which was a increase from The county average origination rate for these applicants is The county, on average, experienced a increase in origination rates for these applicants in the same period. Citizens Bank of Pennsylvania received 1,079 applications from low/moderate income or substantially minority tracts in in 2006 and its origination rate was The county average origination rate for these tracts was Between 2004 and 2006, the institution experienced a change increase, and experienced a increase in origination rates for these tracts. Dollar Bank Dollar Bank received 2,614 applications in 2006, and ranked 4 th in overall market share among PCRG Financial Institutions in both 2005 and The institution also ranked 4 th in nearly every 11 The data in this report is from 2006, so the lender groups are defined as Citizens Bank of Pennsylvania, but the name at the time of publication, 2008, is Citizens Bank. 12

19 market share category in this report for the second year in a row. The only exception is a decrease to ranking 5 th in market among Hispanic or Latino Applicants. The institution received 246 applications from Black or African Americans in in Its origination rate for these applicants was The county average origination rate for these applicants was The institution experienced a 6.32 decrease in origination rates for these applicants from The county, on average, experienced a increase in its origination rate for these applicants during the same period. The institution received 424 applications from low-income applicants in in Its origination rate for these applicants was 45.52, which was a 7.68 decrease from The county average origination rate for these applicants is The county, on average, experienced a increase in origination rates for these applicants in the same period. Dollar Bank received 473 applications from low/moderate income or substantially minority tracts in in 2006 and its origination rate was The county average origination rate for these tracts was Between 2004 and 2006, the institution experienced a change decrease, and experienced a increase in origination rates for these tracts. ESB Bank ESB Bank received 386 applications in 2006 and ranked 13 th in overall market share for Allegheny County. The institution increased in total market share rank from 14 th to 13 th. Specifically, the institution s rank increased from 13 th to 10 th for Black or African American applicants, 11 th to 9 th for Hispanic or Latino applicants, 16 th to 14 th in substantially minority tracts, and 16 th to 14 th for middle income applicants. The institution received 12 applications from Black or African Americans in in Its origination rate for these applicants was The county average origination rate for these applicants was The institution experienced an 8.33 decrease in origination rates for these applicants from The county, on average, experienced a increase in its origination rate for these applicants during the same period. The institution received 19 applications from low-income applicants in in Its origination rate for these applicants was 73.68, which was a increase from The county average origination rate for these applicants is The county, on average, experienced a increase in origination rates for these applicants in the same period. ESB Bank received 49 applications from low/moderate income or substantially minority tracts in in 2006 and its origination rate was The county average origination rate for these tracts was Between 2004 and 2006, the institution experienced a decrease, and experienced a increase in origination rates for these tracts. 13

20 Fidelity Savings Bank Fidelity Savings Bank received 795 applications in 2006 and increased from ranking 8 th in 2005 to ranking 7 th in overall market share for in The institution ranked 6 th in three different categories: white applicants, middle income applicants, and upper income tracts. Its highest ranking this year, 5 th, was for upper income applicants. It then ranked 10 th for low and moderate income tracts, low and moderate applicants, Hispanic or Latino applicants, and Black or African American applicants. The institution received 12 applications from Black or African Americans in in Its origination rate for these applicants was The county average origination rate for these applicants was Data for the origination rate for these applicants was unavailable, but the institution did experience a 100 decrease in origination rates for these applicants from The county, on average, experienced a increase in its origination rate for these applicants during the same period. The institution received 56 applications from low-income applicants in in Its origination rate for these applicants was 60.42, which was a 1.56 increase from The county average origination rate for these applicants is The county, on average, experienced a increase in origination rates for these applicants in the same period. Fidelity Savings Bank received 87 applications from low/moderate income or substantially minority tracts in in 2006 and its origination rate was The county average origination rate for these tracts was Between 2004 and 2006, the institution experienced a 1.04 decrease, and experienced a increase in origination rates for these tracts. Fifth Third Bank Fifth Third Bank increased in rank for total market share from 14 th to 9 th in While the institution retained a constant ranking in substantially minority tracts, low income tracts, and among Hispanic or Latino applicants, it increased dramatically in rank in every other category. For instance, the rank for moderate income applicants went from 14 th to 7 th and upper income applicants from 13 th to 7 th. Part of these changes can be explained by an increase of 421 applications in 2006, revealing a change in applications from 2005 to Despite this increase in applications, Fifth Third Bank only experience a 0.03 change in origination rates in the same period. Market share for Black or African American applicants increased from 13 th to 9 th while white applicant market share increased from 16 th to 9 th. The institution received 13 applications from Black or African Americans in in Its origination rate for these applicants was The county average origination rate for these applicants was The institution experienced a decrease in origination rates for these applicants from The county, on average, experienced a increase in its origination rate for these applicants during the same period. 14

21 The institution received 40 applications from low-income applicants in in Its origination rate for these applicants was 70.00, which was a increase from The county average origination rate for these applicants is The county, on average, experienced a increase in origination rates for these applicants in the same period. Fifth Third Bank received 53 applications from low/moderate income or substantially minority tracts in in 2006 and its origination rate was The county average origination rate for these tracts was Between 2004 and 2006, the institution experienced a 7.34 change increase, and experienced a increase in origination rates for these tracts. First Commonwealth First Commonwealth received 700 applications in 2006 and decreased from 6 th in overall market share in 2005 to 10 th in The most notable changes were for Black of African American applicants (6 th to 7 th ), middle income tracts (5 th to 6 th ), upper income tracts (8 th to 12 th ), and nonsubstantially minority tracts (5 th to 10 th ). These decreases are partially explained by a 266 fewer applications in 2006, a decrease in applications over one year. However, the institution experienced a 4.3 change increase in the origination rate. The institution received 23 applications from Black or African Americans in in Its origination rate for these applicants was The county average origination rate for these applicants was The institution experienced a decrease in origination rates for these applicants from The county, on average, experienced a increase in its origination rate for these applicants during the same period. The institution received 94 applications from low-income applicants in in Its origination rate for these applicants was 46.81, which was a 2.13 increase from The county average origination rate for these applicants is The county, on average, experienced a increase in origination rates for these applicants in the same period. First Commonwealth received 122 applications from low/moderate income or substantially minority tracts in in 2006 and its origination rate was The county average origination rate for these tracts was Between 2004 and 2006, the institution experienced a decrease, and experienced a increase in origination rates for these tracts. First National Bank of Pennsylvania First National Bank of Pennsylvania received 383 applications in 2006 and ranked 14 th in overall market share. The institution decreased from ranking 13 th in 2005 to 14 th in 2006, but it maintained a 7 th place ranking for low income tracts. While the institution decreased in overall ranking and among Black or African American applicants (12th to 14 th ), it increased for substantially minority tracts (16 th to 14 th ) and among low income applicants (11 th to 9 th ). The institution received 4 applications from Black or African Americans in in Its origination rate for these applicants was 25. The county average origination rate for 15

22 these applicants was The institution experienced a 50 decrease in origination rates for these applicants from The county, on average, experienced a increase in its origination rate for these applicants during the same period. The institution received 59 applications from low-income applicants in in Its origination rate for these applicants was 47.46, which was an increase from The county average origination rate for these applicants is The county, on average, experienced a increase in origination rates for these applicants in the same period. First National Bank of Pennsylvania received 67 applications from low/moderate income or substantially minority tracts in in 2006 and its origination rate was The county average origination rate for these tracts was Between 2004 and 2006, the institution experienced a 7.81 decrease, and experienced a increase in origination rates for these tracts. Huntington Bank 12 Sky Bank received 1,000 applications and increased in overall market share among PCRG Financial Institutions from ranking 7 th in 2005 to 4 th in The increase in rank appears to be for increased market share for white applicants (7 th to 5 th ) and upper income tracts (11 th to 10 th ). The institution received 49 applications from Black or African Americans in in Its origination rate for these applicants was The county average origination rate for these applicants was The institution experienced a increase in origination rates for these applicants from The county, on average, experienced a increase in its origination rate for these applicants during the same period. The institution received 149 applications from low-income applicants in in Its origination rate for these applicants was 48.32, which was a 4.72 decrease from The county average origination rate for these applicants is The county, on average, experienced a increase in origination rates for these applicants in the same period. Sky Bank received 236 applications from low/moderate income or substantially minority tracts in in 2006 and its origination rate was The county average origination rate for these tracts was Between 2004 and 2006, the institution experienced a decrease, and experienced a increase in origination rates for these tracts. Iron & Glass Bank Iron & Glass Bank received 182 applications in and ranked 16 th in total market share among PCRG Financial Partners in both 2005 and Despite staying constant in most of the market share rankings, the institution decreased in rank for moderate income tracts (13 th to 15 th ), middle income tracts (11 th to 15 th ), and middle income applicants (13 th to 15 th ). While mortgage originations for the institution remained fairly constant between 2005 and 2006, denials 12 Sky Bank was acquired by Huntington Bank in The data in this report is from 2006, so the lender groups are defined as Sky Bank but the name at the time of publication, 2008, is Huntington Bank. 16

23 increased dramatically. Starting in 2006, Iron & Glass Bank sold originations to the secondary mortgage market, wherein the secondary firms report the originations, not Iron & Glass. However, Iron & Glass Bank was responsible for reporting denials from those secondary firms, which dramatically increased their denial rates in The institution received 3 applications from Black or African Americans in in Its origination rate for these applicants was The county average origination rate for these applicants was Data for the origination rate for these applicants was unavailable, but the institution did experience a decrease in origination rates for these applicants from The county, on average, experienced a increase in its origination rate for these applicants during the same period. The institution received 22 applications from low-income applicants in in Its origination rate for these applicants was 54.55, which was a decrease from The county average origination rate for these applicants is The county, on average, experienced a increase in origination rates for these applicants in the same period. Iron & Glass Bank received 34 applications from low/moderate income or substantially minority tracts in in 2006 and its origination rate was The county average origination rate for these tracts was Between 2004 and 2006, the institution experienced a 9.75 decrease, and experienced a increase in origination rates for these tracts. Laurel Savings Bank 13 First Commonwealth Bank acquired Laurel Savings Bank in the fall of 2006, but the mortgage applications and originations for Laurel Savings Bank prior to the acquisition are analyzed in this report. In overall market share, the institution decreased from 12 th to 15 th. It decreased in ranking in nearly every category, but the most notable decreases were from 13 th to 16 th for middle income tracts, 10 th to 14 th for upper income tracts, and from 10 th to 15 th for non-substantially minority tracts. These decreases are partially related to the decrease in applications between 2005 and The institution received 0 applications from Black or African Americans in in 2006, so an origination rate is not applicable to this category. The county average origination rate for these applicants was The institution s percentage change in origination rates from is not applicable because of insufficient data for this category. The county, on average, experienced a increase in its origination rate for these applications from The institution received 18 applications from low-income applicants in in Its origination rate for these applicants was 61.11, which was a decrease from The county average origination rate for these applicants is The county, on average, experienced a increase in origination rates for these applicants in the same period. 13 Laurel Savings Bank was acquired by First Commonwealth in Fall 2006, but it is included as separate entity in this report 17

24 Laurel Savings Bank received 16 applications from low/moderate income or substantially minority tracts in in 2006 and its origination rate was The county average origination rate for these tracts was Between 2004 and 2006, the institution experienced a 3.38 decrease, and experienced a increase in origination rates for these tracts. National City Bank National City Bank received 6,484 applications in 2006 and ranked first in the overall market share for PCRG Financial Partners. National City ranked number one in nearly every market share category this year total market share; moderate, middle and upper income applicants; white applicants; Hispanic or Latino applicants; moderate, middle and upper income tracts; and nonsubstantially minority tracts. However, the most striking element of the data is that National City Bank represents all of the Preapproval denied applications in in 2006 a total or 14 Preapproved but denied mortgages. The institution received 358 applications from Black or African Americans in in Its origination rate for these applicants was The county average origination rate for these applicants was The institution experienced a decrease in origination rates for these applicants from The county, on average, experienced a increase in its origination rate for these applicants during the same period. The institution received 879 applications from low-income applicants in in Its origination rate for these applicants was 48.46, which was a decrease from The county average origination rate for these applicants is The county, on average, experienced a increase in origination rates for these applicants in the same period. National City Bank received 1,259 applications from low/moderate income or substantially minority tracts in in 2006 and its origination rate was The county average origination rate for these tracts was Between 2004 and 2006, the institution experienced a decrease, and experienced a increase in origination rates for these tracts. NorthWest Savings Bank NorthWest Savings Bank received 607 applications in 2006 and ranked 11 th in overall market share among PCRG Financial Institutions. The institution decreased in overall market share rank from 11 th in 2005 to 10 th in While the institution increased in ranking for Hispanic or Latino applicants (11 th to 7 th ) and substantially minority tracts (11 th to 9 th ), its rank decreased in nearly all of the remaining market share reports. Most notably, it fell from 10 th to 13 th for low income applicants, 9 th to 11 th for moderate income applicants and 11 th to 13 th for Black or African American applicants. The institution received 6 applications from Black or African Americans in in Its origination rate for these applicants was The county average origination rate for these applicants was The institution experienced an 8.33 decrease in origination 18

25 rates for these applicants from The county, on average, experienced a increase in its origination rate for these applicants during the same period. The institution received 38 applications from low-income applicants in in Its origination rate for these applicants was 84.21, which was a increase from The county average origination rate for these applicants is The county, on average, experienced a increase in origination rates for these applicants in the same period. NorthWest Savings Bank received 60 applications from low/moderate income or substantially minority tracts in in 2006 and its origination rate was 80. The county average origination rate for these tracts was Between 2004 and 2006, the institution experienced a change increase, and experienced a increase in origination rates for these tracts. Parkvale Savings Bank Parkvale Savings Bank received 101 applications and increased from ranking 9 th to 8 th in overall market share among PCRG Financial Partners in The institution showed the most improvement in overall origination rates. In 2005 it ranked sixth among PCRG financial partners for origination rate for LMI/SM tracts, 67.05, but in 2006, its origination rate increased to 72.28, ranking them fourth among PCRG financial partners. Parkvale Savings Bank s origination rate among all other census tracts also increased from in 2005 to in 2006, ranking it second among all PCRG financial partners. The institution received 22 applications from Black or African Americans in in Its origination rate for these applicants was The county average origination rate for these applicants was The institution experienced a increase in origination rates for these applicants from The county, on average, experienced a increase in its origination rate for these applicants during the same period. The institution received 82 applications from low-income applicants in in Its origination rate for these applicants was 65.85, which was an increase from The county average origination rate for these applicants is The county, on average, experienced a increase in origination rates for these applicants in the same period. Parkvale Savings Bank received 101 applications from low/moderate income or substantially minority tracts in in 2006 and its origination rate was The county average origination rate for these tracts was Between 2004 and 2006, the institution experienced a10.70 increase and experienced a increase in origination rates for these tracts. 19

26 PNC Bank 14 PNC Bank received 4,177 applications in 2006 and ranked 2 nd in overall market share among PCRG Financial Partners, but PNC Mortgage Company was not included in this analysis. PNC Bank acquired PNC Mortgage Company at the end of 2006, so while the acquisition increased the number of mortgages slightly, it is not reflected in this report. PNC Bank also ranked number one among PCRG financial partners in low income applicants, Black or African American applicants, low income tracts, and substantially minority tracts. The institution received 362 applications from Black or African Americans in in Its origination rate for these applicants was The county average origination rate for these applicants was The institution experienced a 6.85 increase in origination rates for these applicants from The county, on average, experienced a increase in its origination rate for these applicants during the same period. The institution received 644 applications from low-income applicants in in Its origination rate for these applicants was 36.18, which was a 9.04 decrease from The county average origination rate for these applicants is The county, on average, experienced a increase in origination rates for these applicants in the same period. PNC Bank received 831 applications from low/moderate income or substantially minority tracts in in 2006 and its origination rate was The county average origination rate for these tracts was Between 2004 and 2006, the institution experienced a decrease, and experienced a increase in origination rates for these tracts. 14 Note that when PNC Bank talks about its originations, it includes PNC Mortgage LLC, but that institution is not included in the definition of lender groups for this report. 20