public disclosure community reinvestment act …owned subsidiary of plainscapital corporation (pcc),...

PUBLIC DISCLOSURE

November 3, 2008

COMMUNITY REINVESTMENT ACT PERFORMANCE EVALUATION

PlainsCapital Bank RSSD 637451

5010 University Avenue Lubbock, Texas 79413

Federal Reserve Bank of Dallas 2200 North Pearl Street

Dallas, Texas 75201

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 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.

PlainsCapital Bank CRA Performance Evaluation Lubbock, Texas November 3, 2008

TABLE OF CONTENTS

I. INSTITUTION RATING Overall Rating ................................................................................................................1 Performance Test Ratings Table ....................................................................................1 Summary of Major Factors Supporting Rating ..............................................................2

II. INSTITUTION

Description of Institution ...............................................................................................3 Scope of Examination ....................................................................................................4 Conclusions with Respect to Performance Tests ...........................................................5

III. APPENDICES

Appendix A: Lubbock, Texas MSA Loan Distribution Tables ..................................32 Appendix B: Dallas-Fort Worth, Texas Area Loan Distribution Tables ....................41 Appendix C: Austin, Texas Area Loan Distribution Tables .......................................50 Appendix D: San Antonio, Texas Area Loan Distribution Tables .............................59 Appendix E: Glossary .................................................................................................69


1

INSTITUTION’S CRA RATING

INSTITUTION'S CRA RATING: PlainsCapital Bank is rated NEEDS TO IMPROVE.1 The following table indicates the performance level of PlainsCapital Bank with respect to the lending, investment, and service tests. Performance Test Ratings Table

PERFORMANCE LEVELS

PLAINSCAPITAL BANK

PERFORMANCE TESTS

Lending

Test*

Investment

Test

Service Test

Outstanding X

High Satisfactory X X

Low Satisfactory

Needs to Improve

Substantial Noncompliance

*Note: The lending test is weighted more heavily than the investment and service tests when arriving at an overall rating.

1 The initial analysis of the bank’s performance, as detailed herein, resulted in a satisfactory rating. During the CRA performance evaluation, however, the bank was found to be in substantive non-compliance with the Equal Credit Opportunity Act and the Fair Housing Act. As a result, the bank’s overall CRA rating was lowered from Satisfactory to Needs to Improve.


2

Summary of Major Factors Supporting Rating

• Finding of discrimination related to the mortgage loan pricing policies of PrimeLending, a wholly-owned subsidiary

• Excellent overall volume of lending – 16,444 loans for $2.3 billion • Overall lending performance is good as evidenced by the geographic and

borrower distribution of HMDA reportable loans in all assessment areas

• Excellent small business lending distribution in Lubbock

• A leader in originating community development loans to support revitalization and stabilization and affordable housing initiatives in its assessment areas, excluding DFW

• Excellent level of community development investments totaling $32 million throughout assessment areas

• Retail banking services are accessible to the varying geographies and individuals of different income levels in the bank’s assessment areas, while the level of community development services is limited


3

INSTITUTION DESCRIPTION OF INSTITUTION PlainsCapital Bank (PCB) is a $3.3 billion institution headquartered in the west Texas city of Lubbock, with banking operations in four major Texas metropolitan areas. The bank is a wholly owned subsidiary of PlainsCapital Corporation (PCC), an independent Texas financial services company offering commercial and private banking, trust and wealth management, treasury management, capital equipment leasing and residential mortgages. PlainsCapital Corporation owns 100% of the outstanding common stock of PCB; PCC Statutory Trusts I, II, III and IV; PlainsCapital Equity, LLC; and 61% percent of Hester Capital Management, LLC., Austin, Texas (Hester). Subsidiaries of PCB include PrimeLending, A PlainsCapital Company (Prime); PrimeLending Vent Management; PrimeLending Vent; Plains Financial Corporation; PlainsCapital Leasing LLC., PlainsCapital Security, LLC; PNB Aero Services, Inc; and PlainsCapital Insurance Services, LLC. PCB’s former mortgage subsidiary, PlainsCapital McAfee Mortgage was merged into Prime in 2006 and Momentum Funding was merged into Prime in 2007. At June 30, 2008, PCB reported total assets of approximately $3.3 billion, total loans of $2.8 billion, and shareholders’ equity of $318.7 million. The following table reflects the loan portfolio mix:

LOAN TYPE JUNE 30, 2008 $(000S)

% OF GROSS LOANS

Real Estate Other Construction & Land Development Commercial 1-4 Family 1st Liens

442,955 280,157 261,236

15.6 9.8 9.2

1-4 Family Construction Commercial Owner Occupied

205,557 180,282

7.2 6.3

Farm Land 1-4 Family 2nd Liens

70,251 39,905

2.5 1.4

Multifamily 24,254 0.8 1-4 Family Revolving 1,122 0.1 Total Real Estate 1,505,719 52.9 Commercial and Industrial 949,698 33.4 Agricultural 94,555 3.3 Consumer 33,464 1.2 State and Political 135,278 4.8 Lease Financing 126,677 4.5

GROSS LOANS 2,845,391 100.0* *Percentage might not equal 100 because of rounding.


4

PCB’s principal activities are centered in commercial lending, including commercial real estate lending, and mortgage loan origination and sales through Prime, its nonbank subsidiary mortgage company. The company offers FHA and VA loans with flexible loan programs and participates in a number of national down payment assistance programs to help low- and moderate-income (LMI) borrowers become homeowners. As of the examination date, PCB operated 29 retail branches in the following Texas metropolitan areas: twelve in the Lubbock MSA; twelve in the Dallas-Fort Worth-Arlington MSA; three in the Austin-Round Rock MSA; and two in the San Antonio MSA. There are no legal or financial impediments that would inhibit the bank’s ability to meet the credit needs of its communities, consistent with its business strategy, size, resources, and local economic climate. PCB received a Satisfactory rating at the previous CRA evaluation conducted by this Reserve Bank as of October 30, 2006. SCOPE OF EXAMINATION The institution was evaluated using the Interagency Examination Procedures for Large Retail Institutions, developed by the Federal Financial Institutions Examination Council. According to these procedures, HMDA, small business, and small farm lending activity reported by the bank from January 1, 2006 through December 31, 2007 were reviewed. The activity includes all loans originated and purchased by PCB and its affiliates, PrimeLending and Momentum Funding. Qualified community development loans and services are also considered for activities during the same period. All qualified investments made during the assessment period were considered, regardless of when made. HMDA loans were the largest product and received the greatest weight. The HMDA analysis is based on the total HMDA-reportable loans, rather than a product-by-product approach. Home purchase loans represent 86% of total HMDA loans and are the dominant product, which drives performance. This information pertains throughout the remainder of the evaluation, unless specifically noted otherwise. In order to evaluate the geographic distribution of loans, geographies were classified on the basis of the U.S. Census Bureau’s 2000 data. The distribution of loans to borrowers of different income levels was determined based on 2006 and 2007 median family income data as estimated by the U.S. Department of Housing and Urban Development (HUD). Area demographic data, Dun & Bradstreet (D&B) business data, and market aggregate information are used as proxies for demand when evaluating the bank’s performance. The assessment areas (AAs) reviewed using full review procedures were the Dallas-Fort Worth-Arlington MSA (DFW AA), the Lubbock MSA (Lubbock AA), and the Austin-Round Rock MSA (Austin AA). Limited review procedures were applied to the San Antonio MSA. The greatest weight was placed on the bank’s performance in the DFW AA because of the high concentration of lending and branch distribution in this area, followed by the Lubbock area. Austin and San Antonio were weighted less heavily due to the smaller percentage of lending volume and branch distribution in these areas. There have been no changes to the bank’s assessment areas since the previous evaluation.


5

Examiners met with five community contacts located throughout the assessment areas. The organizations specialize in economic development, small business development, affordable housing, and social services for LMI individuals. Contacts identified affordable housing, financial literacy programs, loans for small businesses, opportunities to serve on boards, flexible lending programs, and low-cost checking accounts as community priorities and areas of opportunity for local financial institutions’ participation. CONCLUSIONS WITH RESPECT TO PERFORMANCE TESTS LENDING TEST PCB’s overall performance under the lending test is High Satisfactory based on adequate distribution of loans, excellent lending activity, and strong community development lending, notably in the Lubbock, Austin, and San Antonio MSAs. The bank exhibits an overall adequate record of serving the credit needs of low-income individuals and small businesses. The level and impact of its community development lending complements the bank’s lending performance. Lending Activity: PCB’s lending levels reflect excellent responsiveness to the credit needs of its assessment areas. As noted in the table below, 16,444 loans for a total dollar volume of $2.3 billion were reported by PCB and its affiliates during the 2006 and 2007 review period. More than 11,000 of the total loans are HMDA loan originations reported by the bank’s affiliates. The total CRA reportable loan volume is down approximately 18% since the previous evaluation. Aggregate lenders also experienced a decrease in CRA reportable loans during this time period. In addition to its HMDA, small business and small farm lending, PCB helps to meet community credit needs by originating a significant number of consumer loans, with $33.5 million in its portfolio as of June 30, 2008. The bank’s lending volume is further substantiated by its net loan-to-deposit ratio of 85% as of the same date.

Summary of Lending Activity January 1, 2006 – December 31, 2007

Loan Type # % $(000s) % Home Improvement 143 -- $17,840 -- Home Purchase 10,821 -- $1,551,998 -- Multi-Family Housing 5 -- $8,794 -- Refinancing 1,608 -- $308,577 --Total HMDA related 12,577 76 $1,887,209 81Total Small Business related 3,574 22 $414,826 18Total Small Farm related 293 2 $30,091 1TOTAL LOANS* 16,444 100 $2,332,126 100

*Affiliate loans include only loans originated or purchased within the bank’s assessment areas. Assessment Area Concentration: The following table includes all loan data reported by the bank during the evaluation period for the categories noted. As required by examination procedures, the evaluation of the concentration of the institution’s loans inside its assessment


6

areas does not include affiliate lending in order to avoid penalizing the bank for loans made by its affiliates in markets not served by PCB’s retail branch network.

Lending Inside and Outside the Assessment Areas* Inside Outside # % $ (000s) % # % $ (000s) % Home Improvement 131 93.6 $11,946 68.0 9 6.4 $5,624 32.0 Home Purchase C i l

792 82.8 $99,301 81.9 165 17.2 $22,012 18.1 Multi-Family H i

3 60.0 $544 6.2 2 40.0 $8,250 93.8 Refinancing 51 86.4 $4,067 67.5 8 13.6 $1,958 32.5Total HMDA 977 84.2 $115,858 75.4 184 15.8 $37,844 24.6Total Small Business 3,128 87.5 $341,341 82.3 446 12.5 $73,485 17.7Total Small Farm 135 46.1 $10,428 34.7 158 53.9 $19,663 65.3TOTAL LOANS 4,240 84.3 $467,627 78.1 788 15.7 $130,992 21.9*Affiliate loans not included. As noted in the above chart, PCB originated or purchased 4,240 loans for almost $468 million inside its assessment areas during the review period. Eighty-four percent of the total volume and 78% of the total dollar amount of loans were made to borrowers living or operating businesses in the assessment areas. The tables in Appendices, on pages 32-68, contain additional information regarding assessment areas lending, including those loans originated by PCB’s affiliates. Geographic and Borrower Distribution: PCB has an overall good record of lending throughout the geographic areas and to borrowers of different income levels in its assessment areas. The bank’s HMDA, small business and small farm loans were distributed throughout the assessment areas with no conspicuous lending gaps. The distribution by borrower income reflects good penetration among customers of different income levels and businesses of different sizes. Small business lending performance was better in Lubbock and HMDA lending is notable in Austin. The bank’s home purchase lending to low- and moderate-income borrowers in the Austin area was excellent during 2007. Performance context issues in the separate assessment areas determined the overall conclusion. The facts and data supporting that conclusion are presented within the separate assessment area analyses. Community Development Lending: PCB is a leader in making community development loans with 23 loans totaling $78.6 million. The amount of community development loans originated by the bank was a significant increase (197%) from the $26.5 million at the last evaluation. Listed in the table below are total community development loans for each assessment area:


7

Area Number Amount Lubbock 16 $45,276,450DFW 1 $1,102,000Austin 4 $21,602,224San Antonio 2 $10,665,000Total 23 $78,645,674

A majority of the community development lending is in the Lubbock MSA where 16 loans totaling $45.3 million (57.5%) were originated. PCB is a leader in the provision of community development loans in the Lubbock AA, and exhibited strong performance in the Austin as well as San Antonio areas. The loans addressed vital needs for affordable housing, revitalization and stabilization of low- and moderate-income areas, and economic development and had a material impact on the communities the bank serves. Individual community development loans are discussed in the assessment area that they benefited. INVESTMENT TEST PCB’s investment test rating is Outstanding and represents a 41% increase in volume from the prior evaluation when investments totaled $22.5 million. Investments were dispersed throughout the assessment areas. The investments consist primarily of low-income housing tax credits (LIHTC) and targeted mortgage-backed securities. The investments are designed to create or rehabilitate housing units for low- and moderate-income people throughout the bank’s assessment areas. The overall dollar volume of new investment activity covering 2006 and 2007 totaled $18.4 million. The majority of investments (57.3%) are in the DFW assessment area, where $13 million are outstanding from the prior evaluation period. Additionally, a $1 million commitment in the Independent Bankers Capital Fund, which benefits all of its assessment areas, has $340,000 unfunded as of the evaluation period. Charitable donations/grants of $433,065 were made to various organizations throughout the four assessment areas; a substantial increase over the $93,000 that was contributed during the last evaluation period. Individual investments are more fully discussed under each assessment area. Listed below are total qualified investments/donations for each assessment area:

Area Bond Investments Donations/Grants Total

Prior Period Current Period $ % Lubbock $0 $2,360,000 $197,236 $2,557,236 8.0DFW $13,000,000 $5,000,000 $231,729 $18,231,729 57.3Austin $0 $6,393,310 $3,700 $6,397,010 20.1San Antonio $0 $4,286,000 $400 $4,286,400 13.5Statewide $340,000 $0 $0 $340,000 1.1Total $13,340,000 $18,039,310 $433,065 $31,812,375 100.0


8

While PCB does not offer many complex or innovative investments, the bank exhibits excellent responsiveness to community development needs and occasionally uses innovative investments to support community development initiatives. The bank is commended for making qualified investments in all of its assessment areas. SERVICE TEST The bank’s performance in providing retail banking and community development services is rated High Satisfactory. Branches and other delivery systems are accessible to the varying geographic and individual income levels in the bank’s assessment areas. The bank’s business hours and services do not vary in a way that inconveniences certain portions of its assessment areas, and the bank provides an adequate level of community development services that benefits its assessment areas. Retail Banking Services: PCB’s retail delivery systems are readily accessible in Lubbock and reasonably accessible to the geographies and individuals of different income levels in the DFW and Austin assessment areas. Its record of opening branches has not adversely affected the accessibility of its delivery systems to LMI individuals. The following table details the distribution of the bank’s retail branch delivery system. While not apparent in the table, several of the bank’s branches in Lubbock are immediately adjacent to moderate-income census tracts, and the branches are conveniently located throughout the city, providing a high level of retail banking services to the community.

DISTRIBUTION OF BRANCH DELIVERY SYSTEM AS OF NOVEMBER 3, 2008

MSA/AA

Deposits# Branches % of Rated

Area Deposits in MSA/AA

# of Bank Branches

% of Rated Area

Branches in MSA/AA*

Location of Branches by Income Level of Geographies

Low Mod Middle Upper Full-Review:

Lubbock 54% 12 41% 1 1 5 5 Dallas-Fort Worth 30% 12 41% 0 3 4 5

Austin 14% 3 10% 0 0 1 2 Limited-Review:

San Antonio 2% 2 7% 0 0 1 1 *Percentage might not add to 100 because of rounding #Deposits as of June 30, 2008 PCB’s ATM network includes multiple off-premises sites in the Lubbock area, as well as on-premises at most branch locations in each assessment area. Alternative delivery systems include banking by telephone, mail, and through the internet. A student loan center in the Lubbock area offers onsite computers and assistance with navigating the financial aid and loan application process to enable area students to obtain funding for higher education. The bank’s business hours are reasonable and do not vary in a way that inconveniences any portions of its assessment areas, and the extensive products and services offered include free checking and low-fee


9

accounts for students to provide reasonable banking alternatives for low- and moderate-income individuals in the communities it serves. Community Development Services: PCB provided a limited level of community development services throughout its assessment areas. The institution and its employees provide leadership and support for economic development, and social service and educational initiatives in its local communities. Bank management, directors, and employees serve in leadership roles in few organizations, providing financial expertise and technical advice to entities that are detailed in the individual assessment area discussions.

FAIR LENDING OR OTHER ILLEGAL CREDIT PRACTICES REVIEW During a consumer compliance examination conducted simultaneously with the CRA evaluation, substantive violations of the Equal Credit Opportunity Act and Fair Housing Act were identified. The violations represented a widespread practice of discrimination on a prohibitive basis at one bank subsidiary and caused the bank's CRA rating to be adjusted downward. The institution’s fair lending program did not effectively prevent the discriminatory credit practices. Bank management is implementing enhancements to strengthen its policies, procedures, training programs, and internal assessment efforts.


10

METROPOLITAN AREA (Full Review)

DESCRIPTION OF INSTITUTION’S OPERATIONS IN LUBBOCK, TEXAS MSA (31180) Located in the High Plains of west Texas, the Lubbock assessment area consists of the Lubbock MSA, which is comprised of Lubbock and Crosby counties. Lubbock County’s population was estimated at 267,211 in 2007, a seven percent increase since 2000. Eighty-three percent live in the city of Lubbock. Other municipalities include Idalou, Slaton, Shallowater, and Wolfforth. The estimated population of Crosby County, east of Lubbock, was 6,310. Crosbyton is the largest city and county seat. Other towns include Lorenzo and Ralls. As of the examination date, November 3, 2008, PCB operated 12 retail branches in the Lubbock assessment area, representing 41% of all retail branches in the bank’s combined assessment areas. PCB’s Lubbock area branches contained $1.2 billion in deposits at June 30, 2008, or 54% of the bank’s total branch deposits in its combined assessment areas. All of the bank’s branches in this assessment area are located in the city of Lubbock. PCB ranks first in deposit market share out of 24 FDIC-insured financial institutions operating in the Lubbock banking market. Total market deposits as of June 30, 2008 were $5.1 billion in 105 banking offices, with PCB holding a 22.6% market share in the MSA. City Bank and American State Bank, also based in Lubbock, hold 16.3% and 12.5%, respectively, of total deposits in the market. In addition to its retail banking services, PCB provides commodities brokerage services to facilitate the sale of cotton for local farmers. The bank’s cotton merchant business brokers sales of cotton to foreign and domestic textile companies directly, as well as through other merchants that facilitate the exporting of cotton crops. Demographic and economic information impacting the bank’s performance context are discussed below. Information was obtained from publicly available sources including the U.S. Department of Commerce’s Bureau of the Census, 2000; the U.S. Department of Labor; the U.S. Department of Housing and Urban Development; and the Texas Workforce Commission. Income - As of the 2000 census, there were 62,550 total families living in the Lubbock assessment area (AA). Overall, 21% of the families are low-income, 18% are moderate-income, 21% are middle-income, and 40% are upper-income families. The HUD-adjusted median family income for this assessment area was $48,500 in 2006 and $48,900 in 2007. Twelve percent of assessment area families live below the poverty level. The percentages of LMI families and poverty levels exactly mirror state averages. The assessment area contains 64 census tracts, with only one low-income, 21 moderate-income, 27 middle-income, and 15 upper-income geographies.


11

Housing - According to the 2000 census, there were 103,797 housing units in the assessment area. Less than one-half of one percent of owner-occupied housing units are located in the low-income census tract, 24% in moderate-income, 44% in middle-income, and 32% in upper-income census tracts. The homeownership rate is slightly below the state average of 58%, with 54% of Lubbock MSA housing units being owner-occupied, 37% rental, and 8% vacant. Almost 4% of the assessment area population lives in college dormitories, other group quarters, nursing homes and correctional institutions. Housing is more affordable than the state average. Lubbock’s 2007 median-priced home was $104,200 as compared to Texas at $147,500. Employment - Lubbock is the center of a 26-county regional trading area. The local economy is driven by the agricultural industry (primarily cotton) and Texas Tech University. Other major employers include Covenant Medical Hospital, the Lubbock ISD, University Medical Center, United Supermarkets, and the City of Lubbock. According to Dun & Bradstreet, there were approximately 11,631 business establishments in the assessment area as of June 2007, with 90% reporting gross annual revenues less than $1 million. Less than one percent of the businesses were located in the low-income census tract, 23.6% in moderate-income census tracts, 42.8% in middle-income census tracts, and 33.1% in upper-income census tracts. The MSA enjoys one of the state’s lowest 2007 annual average unemployment rates at 3.7%, below the state average of 4.4%. The chart on the following page details demographic information for the Lubbock assessment area obtained from the 2000 U.S. Census and 2007 Dun & Bradstreet data.


12

Assessment Area Demographics Assessment Area: Lubbock - Lubbock, Crosby

Families by Family Income

Families < Poverty Level as % of

Families by Tract

Families by Tract Income

Tract Distribution

Income Categories

# # # # %% %%Low-income 1 517 184 13,109 1.6 0.8 35.6 21.0

Moderate-income 21 17,527 4,143 11,164 32.8 28.0 23.6 17.8

Middle-income 27 26,917 2,687 12,973 42.2 43.0 10.0 20.7

Upper-income 15 17,589 705 25,304 23.4 28.1 4.0 40.5

Unknown-income 0 0 0 0 0.0 0.0 0.0 0.0

Total Assessment Area 64 62,550 7,719 12.3 62,550 100.0 100.0 100.0

VacantRentalOwner-Occupied

Housing Units by Tract Housing Types by Tract

# # # %% %%Low-income 2,340 147 1,348 845 0.3 6.3 57.6 36.1

Moderate-income 30,201 13,435 13,333 3,433 23.8 44.5 44.1 11.4

Middle-income 45,208 24,756 17,357 3,095 43.8 54.8 38.4 6.8

Upper-income 26,048 18,167 6,485 1,396 32.2 69.7 24.9 5.4

Unknown-income 0 0 0 0 0.0 0.0 0.0 0.0

Total Assessment Area 103,797 56,505 38,523 8,769 100.0 54.4 37.1 8.4

Revenue Not Reported

Over $1 Million

Less Than or = $1 Million

Total Businesses by Tract

Businesses by Tract & Revenue Size

# # # #% % % %Low-income 60 56 1 3 0.5 0.1 1.0 0.5

Moderate-income 2,741 2,404 253 84 23.0 29.1 28.3 23.6

Middle-income 4,976 4,466 374 136 42.7 43.0 45.8 42.8

Upper-income 3,854 3,539 241 74 33.8 27.7 24.9 33.1

Unknown-income 0 0 0 0 0.0 0.0 0.0 0.0

Total Assessment Area Percentage of Total Businesses:

100.0 100.0 100.0 100.0

90.0 7.5 2.6

11,631 10,465 869 297

Based on 2000 Census Information.


13

Community Contacts – Discussions with community leaders indicated the Lubbock economy was stable and fairly strong. The primary credit need in the community is for decent affordable housing. The area also needs public transportation. Contacts stated that financial institutions could provide much needed financial literacy which focused on becoming credit worthy and the home buying process. CONCLUSIONS WITH RESPECT TO PERFORMANCE TESTS IN LUBBOCK, TEXAS MSA LENDING TEST Commercial loans are the bank’s primary loan product in the Lubbock MSA and are weighted more heavily. Additionally, PCB’s community development lending efforts in the Lubbock assessment area significantly enhance its overall lending performance. Detailed information on the bank’s and aggregate lending performance in the Lubbock AA is located in Appendix A on pages 33-41. PCB’s performance under the lending test in the Lubbock assessment area is excellent, with an excellent volume of small business loans and good distribution of loans to businesses of different sizes. Lending levels in the Lubbock MSA reflect excellent responsiveness to assessment area credit needs. However, HMDA lending performance is adequate. Competition among financial service providers was intense, with 252 HMDA reporters originating and/or purchasing mortgage loans in this area during 2007. PCB was ranked 21st, with 1% of the market and Prime was 10th, for 2.6% of the market share. In 2006, the bank was ranked 16th, with 1.4% of the market share, with Prime ranked 10th, with 2.5% of the market share, out of 282 HMDA lenders reporting data. For 2006 and 2007, the top three reporters accounted for approximately 26% of the market share and included subprime lenders. Neither the bank nor aggregate lenders performed at or above the demographics for low- and moderate-income geographies or borrower income levels. Lending Activity: Lending levels in the Lubbock MSA are excellent. Forty-seven percent of PCB’s total reported small business, approximately 61% of small farm, as well as 7.4% of the bank’s total HMDA loans were made in the Lubbock AA. PCB originated 1,473 small business loans for $87 million, 911 HMDA loans for $100.4 million, and 82 small farm loans for $7.1 million in the Lubbock area during the review period. While overall HMDA and CRA-reportable loans have declined 19% in the Lubbock MSA, the bank’s community development lending has increased tremendously. PCB ranked fifth in total loan originations of 46 lenders reporting small business loans in the Lubbock MSA in 2006, and eighth of 52 lenders in 2007. In 2006, the bank originated 8.2% of all small business and 13.9% of small farm loans in the Lubbock MSA, and 6.5% of all small business and 13.5% of small farm loans in 2007. Geographic Distribution: The geographic distribution of the bank’s lending is good. For this analysis, the geographic distribution of the bank’s HMDA lending and small business lending


14

originations was compared to available demographic information. Performance context issues, such as the performance of other banks and the economic conditions were also considered. Lending in the low-income census tract is not weighted heavily in the analysis because less than one percent of the area families and less than one percent of the businesses are located in that census tract. However, the area is undergoing a major redevelopment project that commenced following the 2000 census. The majority of the bank’s lending activity in the low-income tract is discussed in the community development section. Small business lending in moderate-income census tracts at 16.3% in 2006 and 21.4% in 2007 is good. Although below the percentage of small businesses located in these census tracts at 24.5%, the 2007 aggregate small business lending at 16.6% in moderate-income census tracts is significantly below the bank’s as well as the percentage of small businesses located in these census tracts. Additionally, PCB originated four or 0.6% small business loans in the low-income census tract in 2007. Aggregate banks reported 25 or 0.2% small business loans in the low-income census tract in 2007. While not a major lending product for the bank, the geographic distribution of PCB’s small farm loans is adequate in the Lubbock MSA. PCB originated 6 out of 38 small farm loans in moderate-income census tracts (15.8%) in 2006. Total small farm lending increased to 44 loans in 2007, with eight or 18.2% in moderate-income census tracts compared to 10.6% for the aggregate. While no HMDA loans were originated in the low-income census tract, this is reasonable given less than one percent of the assessment area families reside in that census tract. PCB’s HMDA lending performance in moderate-income census tracts was adequate when compared to demographics and the performance of the aggregate lenders, particularly in light of the dominance of subprime lenders in the market. In addition, 24% of families with incomes below the poverty level live in moderate-income census tracts. Approximately 13% of the bank’s HMDA loans were originated in moderate-income census tracts in 2006; the distribution decreased to 9.4% in 2007. Aggregate lending was 13.9% in 2007. Both the aggregate lenders and PCB are performing considerably below the 24% of owner-occupied housing units located in moderate-income census tracts in the Lubbock assessment area. Distribution by Borrower Income and Revenue Size of the Business: PCB’s lending performance reflects good penetration among individuals of different income levels and businesses of different sizes. For this analysis, the distribution of HMDA lending across borrower income levels and small business lending across business revenue sizes was compared with available demographic information. Performance context issues were also considered, as well as the performance of other banks. The distribution of PCB’s small business loans by revenue size of the business and loan size is excellent. Of the 1,473 reportable loans to small businesses, 1,216 or 82.6% were originated to businesses with revenues of $1 million or less, which is less than the percentage of businesses in the Lubbock MSA that are considered small businesses at 90%. The 2006 data reflects 81.3% of PCB’s loans were made to businesses with $1 million or less in revenues. However, the bank’s


15

2007 loan distribution to small businesses increased to 83.9%, which substantially exceeds the aggregate reporters at 42.7%. Further, the distribution by loan size indicates PCB is doing a good job of making smaller dollar loans available to small business owners. Ninety-three percent of the bank’s 2006 small business loans were for amounts of $100,000 or less and 87.1% in 2007, compared to 95.8% for aggregate in 2007. PCB’s HMDA lending distribution by borrower income is adequate in the Lubbock AA. Census data indicates 21% of area families are low-income, 18% are moderate-income, and 12% live below the poverty level, making it difficult to qualify for loans without credit enhancement features. For the review period, 2.9% of PCB’s 911 HMDA loans were made to low-income borrowers and 9.7% were to moderate-income borrowers. In 2006, PCB made 3.4% of HMDA loans to low-income borrowers and 7.1% to moderate-income borrowers. In 2007, PCB made 2.2% of HMDA loans to low-income borrowers and 12.8% to moderate-income borrowers, while the aggregate made 4.3% to low-income borrowers and 14.6% to moderate-income borrowers. PCB’s distribution was slightly below the performance of aggregate HMDA reporters; however, it is reasonable given the previously mentioned performance context factors. PCB’s small farm loan distribution to farms of different sizes is adequate. Farms with $1 million or less in gross annual revenues received 76.3% of the bank’s loans in 2006 and 77.3% in 2007. This compares reasonably to the demographics of 96% small farms in the area, and the aggregate banks’ performance. Peer banks reported 82.2% of loans to small farms in 2007. Community Development Lending: PCB is a leader and demonstrates excellence in the origination of community development loans in the Lubbock MSA. The bank originated 16 community development loans totaling $45.3 million during the review period, an increase from $7.5 million during the prior evaluation. Since 2002, PCB has been the lead bank providing financing for the developer of one of the largest privately funded urban renewal projects in the nation. McDougal Corporation, in conjunction with the City of Lubbock, is working to revitalize the area’s only low-income census tract into a livable mixed-use community called Overton Park, which will serve as a link between Texas Tech University and downtown Lubbock. The 325-acre site located east of the university includes a commercial, mixed-use and/or high density residential area on the western segment, and a single-family residential neighborhood in the eastern portion of the development. Jobs created in the revitalization project include 475 new permanent jobs, as well as over 400 construction jobs for demolition, construction, engineering, and management. During the review period, a loan for $24.8 million was extended to construct a 285-room full-service luxury hotel and conference center, a public-private partnership. In addition to the 14 Overton Park project loans, PCB provided two loans totaling $9,340 to a local non-profit organization servicing the needs of low- and moderate-income children. PCB’s community development lending activities evidence its commitment to meeting the credit and economic development needs of the entire Lubbock community.


16

INVESTMENT TEST PCB’s qualified community development investments in the Lubbock assessment area increased substantially since the last evaluation and the performance is considered good. The bank now provides a significant level of qualified investments. Total investment activity for this assessment area increased from $31,000 to $2.6 million. PCB invested approximately $2.4 million in a FNMA pool targeted to affordable housing. Further $197,236 in qualified charitable grants and donations were made during this evaluation period. Although a part of the total qualified charitable grants and donations, the bank received two grants totaling $5,500 on behalf of Momentum Texas that was matched by the Federal Home Loan Bank for a total of $22,000. Covenant Foundation, Lubbock Area Foundation, Lubbock Economic Development Alliance, North & East Lubbock CDC, the Boys & Girls Club, and Lubbock Meals on Wheels, among others, were recipients of these funds. The bank makes occasional use of innovative and/or complex investments to support community development initiatives in this assessment area. This level of investment exhibits adequate responsiveness to credit and community development needs. Only 8.5% of total investments are in this assessment area, where 54% of deposits are maintained and 41% of branches are located. Given those factors, investments in this assessment area are adequate. SERVICE TEST PCB’s performance under the service test in the Lubbock assessment area is good. Systems for delivering retail banking services appear effective and are readily accessible to all portions of the assessment area, including low- and moderate-income areas. Business hours and services do not vary in a way that inconveniences its assessment area, particularly low- and moderate-income geographies and/or low- and moderate-income individuals. The bank also provides an adequate level of community development services for the Lubbock area. Retail Services: Retail delivery systems are readily accessible to all portions of the assessment area. PCB operates 12 full-service branches distributed throughout the city of Lubbock, one (8%) of which is located in a low-income census tract, one (8%) in a moderate-income census tract, five (42%) in middle-income, and five (42%) in upper-income census tracts. Several of the bank’s branches are immediately adjacent to moderate-income census tracts. Two branches were opened since the last evaluation. One of them is located within a senior assisted living center in a moderate-income census tract and the other branch is in an upper-income census tract. No branches have closed. This record of opening branches did not necessarily improve the accessibility of the bank’s delivery systems to the assessment area for low- and moderate-income individuals because access to the branch located in the assisted living center is restricted. In addition to alternative delivery systems such as bank by phone, mail and the Internet, PCB operates a student loan center in Lubbock, offering onsite computers and assistance with navigating the financial aid and loan application process to enable area students to obtain funding for higher education. There are two motor banks, one in a moderate-income census tract and one in an upper-income census tract. There are automated teller machines (ATMs) at every branch. PCB’s 15 stand-


17

alone ATMs are located in locations such as the Texas Tech University campus, Overton Hotel, a supermarket, a shopping center, and the Lubbock Airport. In the moderate-income census tracts, there are two deposit-taking off-premises ATMs and three cash-only ATMs. The ATM in northeast Lubbock is one of the few banking facilities serving this area. The geographic distribution of the off-site ATMs throughout the area is 7% low-, 33% moderate-, 33% middle-, and 27% upper-income census tracts. Products are virtually identical in all offices and business hours do not vary in a way that inconveniences certain portions of the assessment area. Standard branch hours are 8:30 a.m. to 4 p.m. Monday through Friday, with drive-through lanes generally open weekdays from 7:30 a.m. to 6 p.m. and 7:30 a.m. to noon on Saturdays. The branch located in the low-income census tract has expanded weekend hours from 9 a.m. to 4 p.m. on Saturdays and Sundays. The South Plains Mall branch, located in a middle-income census tract, offers expanded evening and weekend hours. The branch is open 9 a.m. to 5 p.m. Monday through Saturdays, and noon to 4 p.m. on Sundays. The new branch in the moderate-income census tract is open from 1 p.m. to 4 p.m. Monday through Friday. Community Development Services: The volume of community development services has decreased since the previous examination and is now at a limited level. Bank management and staff contribute their time and financial expertise to several organizations providing social and educational services to LMI people and promoting economic and community development in the area, including the following:

LISD Foundation for Excellence Texas Tech Chancellor’s Council Lubbock Chamber of Commerce Partners-in-Education City of Lubbock Covenant Health Systems United Way Programs and Allocations Committee Lubbock Reese Economic Development Authority

In addition to the foregoing, PCB management and staff contribute numerous volunteer hours to healthcare related initiatives that benefit individuals of varying income levels in the community and provide significant leadership and support to the area’s largest employer, Texas Tech University.


18

DESCRIPTION OF INSTITUTION’S OPERATIONS IN DALLAS-FORT WORTH-ARLINGTON, TEXAS MSA 19100 The Dallas-Fort Worth (DFW) assessment area consists of portions of the Dallas-Fort Worth-Arlington, Texas MSA, which encompasses the Dallas-Plano-Irving Metropolitan Division (Dallas MD) and the Fort Worth-Arlington MD (Fort Worth MD). PCB’s DFW AA includes Dallas, Collin, and Denton Counties in the Dallas MD and Tarrant and Parker Counties in the Fort Worth MD. The assessment area includes the most populous counties in the north Texas area known as the Metroplex, and contains some of the fastest growing suburban areas in the state. The total population of the five-county area was estimated at 5.5 million as of July 2007, an 18% overall increase since 2000. The table below provides further information by county.

County 2007 Population Estimate

% Increase Since 2000 Major Cities 2007 Annual

Unemployment Rate

Dallas 2,366,511 6.7% Dallas, Garland, Irving, Carrollton, Mesquite 4.6%

Tarrant 1,717,435 18.8% Fort Worth, Arlington, North Richland Hills 4.3%

Collin 730,690 48.6% Plano, McKinney, Allen, Frisco 3.9%

Denton 612,357 41.4% Denton, Lewisville, Flower Mound 3.9%

Parker 108,687 22.8% Weatherford 4.1%

As of the examination date, November 3, 2008, PCB operated 12 retail branches in the DFW assessment area, representing 44% of all retail branches in the bank’s combined assessment areas. The DFW area branches contained $642.6 million in deposits at June 30, 2008, or almost 43% of the bank’s total branch deposits in its combined assessment areas. PCB’s branches are located in the cities of Dallas, Fort Worth, Carrollton, Frisco, and Weatherford. PCB ranks 22nd in deposit market share out of 168 FDIC-insured financial institutions operating in the competitive north Texas banking market. The bank held 0.35% of the total market deposits as of June 2008. Countrywide Bank, N.A. ranked first in the DFW AA with 34% of total deposits, followed by Bank of America, N.A. with 20%, and JP Morgan Chase Bank, N.A. with 14%. Demographic and economic information impacting the bank’s performance context are discussed below. Information was obtained from publicly available sources including the U.S. Department of Commerce’s Bureau of the Census, 2000; the U.S. Department of Labor; the U.S. Department of Housing and Urban Development; and the Texas Workforce Commission. Income - According to the 2000 census, there are 1.1 million families in the assessment area, 8% of which live below the poverty level. Twenty-one percent of families are low-income, 18% are moderate-income, 20% are middle-income, and 41% are upper-income families. The median family incomes declined between 2006 and 2007. They are listed below:


19

MD HUD-Adjusted

Median Family Income 2006 2007

Dallas-Plano-Irving, TX (19124) $66,700 $63,200

Fort Worth-Arlington, TX (23104) $63,100 $60,500

The DFW AA contained 951 census tracts in 2000, including 9% low-income, 28.3% moderate-income, 32.3% middle-income, 30% upper-income census tracts, and 0.4% unknown-income census tracts. Low-income census tracts in the assessment area are primarily located in the cities of Dallas and Fort Worth. Housing - There were 1.8 million housing units in the area as of 2000, 55% of which were owner-occupied, 39% rental, and 6% vacant. A little more than 63% of housing units are single-family homes, 28% are five or more family units, 6% are 2-4 family units, and 3% are mobile homes. Three percent of owner-occupied housing units are located in low-income census tracts, 19% in moderate-income census tracts, 36% in middle-income, and 42% in upper-income census tracts. The median age of the housing stock is 22 years. In 2007, median home prices in the area ranged from $118,300 in Fort Worth, $161,300 in Dallas, to a high of $200,000 in Collin County. The state average median home price was $147,500. Employment - The DFW Metroplex is a major trade center and transportation hub, home to DFW Airport, Love Field, Alliance Airport, and American Airlines. Other industries include electronics manufacturing, data processing, retail trade, conventions and trade shows, education and health care. Major employers, in addition to the airline industry, include Lockheed Martin, Texas Instruments, EDS, JC Penney Co., Frito-Lay, Parkland Memorial Hospital, University of Texas Southwestern Medical Center, and the University of North Texas. According to 2007 Dun & Bradstreet data, 254,010 businesses are located in the DFW AA. Approximately 90% reported gross annual revenues less than or equal to $1 million. Slightly below 5% of businesses are located in low-income census tracts, 24.2% in moderate-income, 34% in middle-income, and 36.4% are in upper-income census tracts. The unemployment rates for the Dallas and Fort Worth MDs have been steadily declining since reaching annual average highs of 6.8% and 6.3% in 2003. According to the Texas Workforce Commission, the 2007 annual average unemployment rate for the Dallas MD stood at 4.4%, comparable to the state’s 4.4% average rate, while the annual average in Fort Worth was 4.3%. The following chart details demographic information for the DFW assessment area obtained from the 2000 U.S. Census and 2007 Dun & Bradstreet data.


20

Assessment Area Demographics Assessment Area: Dallas-Fort Worth-Arlington



Families by Tract


Tract Distribution

Income Categories

# # # # %% %%Low-income 86 74,541 22,527 241,360 9.0 6.3 30.2 20.5

Moderate-income 269 284,186 42,921 211,191 28.3 24.1 15.1 17.9

Middle-income 307 408,660 22,778 241,104 32.3 34.6 5.6 20.4

Upper-income 285 412,159 8,629 485,891 30.0 34.9 2.1 41.2

Unknown-income 4 0 0 0 0.4 0.0 0.0 0.0

Total Assessment Area 951 1,179,546 96,855 8.2 1,179,546 100.0 100.0 100.0



# # # %% %%Low-income 126,129 30,743 83,419 11,967 3.1 24.4 66.1 9.5

Moderate-income 451,310 195,199 228,798 27,313 19.5 43.3 50.7 6.1

Middle-income 655,452 357,267 263,388 34,797 35.7 54.5 40.2 5.3

Upper-income 584,087 418,818 135,847 29,422 41.8 71.7 23.3 5.0

Unknown-income 16 0 10 6 0.0 0.0 62.5 37.5

Total Assessment Area 1,816,994 1,002,027 711,462 103,505 100.0 55.1 39.2 5.7


Over $1 Million




# # # #% % % %Low-income 12,040 10,699 886 455 4.7 4.6 6.9 4.7

Moderate-income 61,460 53,414 6,151 1,895 23.4 32.1 28.6 24.2

Middle-income 86,325 77,692 6,406 2,227 34.0 33.4 33.6 34.0

Upper-income 92,494 85,091 5,390 2,013 37.3 28.1 30.4 36.4

Unknown-income 1,691 1,323 327 41 0.6 1.7 0.6 0.7


100.0 100.0 100.0 100.0

89.8 7.5 2.6

254,010 228,219 19,160 6,631



21

Community Contacts – Discussions with community leaders indicate that foreclosures rates are climbing and affordable housing is harder to obtain. Credit needs include smaller dollar business loans. In addition, access to credit for non-profit organizations is becoming harder. As in the Lubbock AA, contacts indicated financial literacy education is needed and believe that banks are uniquely qualified to provide this training. CONCLUSIONS WITH RESPECT TO PERFORMANCE TESTS IN DALLAS-FORT WORTH-ARLINGTON, TX MSA LENDING TEST Lending test performance in the Dallas-Fort Worth AA is good based on distribution of the bank’s HMDA as well as small business loans. HMDA reportable loans are the dominant credit product for PCB as well as in this assessment area and are given the greatest weight. Data supporting this analysis can be seen in detail in Appendix B on pages 42-50. Lending Activity: PCB’s lending levels in the Dallas-Fort Worth assessment area reflect excellent responsiveness to the credit needs of the community. Overall, 9,293 or 59.3% of the bank’s total loans were reported in this assessment area. PCB reported 7,981 HMDA loans in the DFW area during the review period, totaling approximately $1.3 billion. This is 64.4% of all HMDA reportable loans made by the bank and its affiliates. Competition among financial service providers was intense, with 893 HMDA reporters originating and/or purchasing mortgage loans in this area during 2007. PCB was ranked 116st, with 0.1% of the market and Prime was 14th, for 1.2% of the market share. In 2006, the bank was ranked 146th, with 0.1% of the market share, with Prime ranked 18th, or 1.0% of the market share, and Momentum was ranked 129th, with 0.1%, out of 908 HMDA lenders reporting data. For 2007, the top three reporters accounted for approximately 24% of the market share and included subprime lenders. For 2006, the top three reporters had 18% of the market and included subprime lenders. Neither the bank nor aggregate lenders performed at or above the demographics for low- and moderate-income geographies or borrower income levels. There were 1,264 small business loans totaling $179.1 million and 48 small farm loans totaling $2.6 million reported. Small business lending decreased in number volume by 15% between 2006 and 2007. PCB ranked 22 out of 220 lenders reporting small business loans in the assessment area in 2007. Small farm loans are not analyzed separately since they are an insignificant product in this urban market. Geographic Distribution: The geographic distribution of the bank’s lending for this assessment reflects good penetration throughout the assessment area. For this analysis, the geographic distribution of the bank’s HMDA lending and small business lending originations was compared to available demographic information. Performance context issues such as poverty level, population trends, and occupancy levels, as well as the performance of other banks were reviewed when assessing PCB’s performance.


22

For 2006 and 2007, the bank made 1% of its HMDA reportable loans in low-income census tracts. Although below the 6.3% of families that live in low-income census tracts and the 3.1% of owner-occupied housing units, it is closer to the level of lending by the market aggregate at 1.6% in 2007. In addition, 30% and 15%, of the families with incomes below the poverty level live in the low-income and moderate-income tracts, respectively. As a result, the bank’s ability to make home loans without special credit enhancements is limited. HMDA lending in moderate-income census tracts, at 6.5% and 6.7%, in 2006 and 2007 respectively, is significantly below the market aggregate at 11.7% in 2007, and below the 19.5% level of owner-occupied housing units. However, subprime lenders dominate the market and the bank’s share of loans is relatively small. Demographics indicate that 4.7% of area businesses are located in the low-income census tracts and 24.2% are in moderate-income census tracts. PCB originated 1.2% of its small business loans in low-income census tracts and 13.7% in moderate-income census tracts in 2006. Lending in low-income census tracts increased slightly to 1.4% and 15.5% in moderate-income census tracts in 2007. In 2007, aggregate reported 2.8% small business loans in low-income census tracts and 18.3% in moderate-income census tracts. PCB was below aggregate banks’ lending, as well as the percentage of businesses in low- and moderate-income census tracts. However, given the limited number of businesses located in low-income census tracts, the bank’s performance is good. In addition, the bank’s performance in moderate-income census tracts is reasonable when compared to the aggregate and its ranking in the assessment area. Distribution by Borrower Income and Revenue Size of the Business: PCB’s lending performance reflects adequate penetration among individuals of different income levels and businesses of different sizes. For this analysis, the distribution of HMDA lending across borrower income levels and small business lending across business revenue sizes was compared with available demographic information. Performance context issues such as Census and business data, as well as the performance of other banks were reviewed when assessing PCB’s performance. Census data indicates almost 21% of area families are low-income families, 18% are moderate-income and 8.2% live below the poverty level. For 2006 and 2007, the bank made 1.6% and 2.7%, respectively of its HMDA reportable loans to low-income borrowers. By comparison, aggregate banks made 4.4% of HMDA reportable loans to low-income families in 2007. Moderate-income borrowers received 10% and 12.4% of PCB’s HMDA reportable loans in 2006 and 2007, respectively. This performance was below the aggregate banks’ distribution of 15.1% in 2007 to borrowers with moderate-incomes. However, given that subprime lenders dominate the DFW AA, it is not expected that the bank can compete on a one-to-one basis and the level of lending is adequate. Approximately 90% of area businesses reported gross annual revenues less than or equal to $1 million. PCB made approximately 57% of its CRA reportable loans to small businesses in 2006 and 49.8% in 2007. While below the demographics, the performance was better than the aggregate which reported 39% to small businesses in 2007. Approximately 68% of the bank’s small businesses loans were for amounts of $100,000 or less, compared to approximately 97%


23

for the aggregate in 2007. However, the top lenders are credit card banks, usually making loans less than $100,000. Further, the bank’s lending focus is on “medium market businesses”, with gross annual revenues between $5 and $50 million. Community contacts indicate smaller dollar loans are in demand by small businesses and often more difficult to obtain. The bank supplements its level of lending to small businesses by incorporating community development services targeted to assisting small businesses and small business-related entities. Community Development Lending: The bank made few community development loans in this AA. It is understandable that competition exists in the market; however, there is a plethora of community development lending opportunities in the DFW assessment area. In addition, 44% of the bank’s retail branches are located here and a majority of loans are originated in this assessment area. PCB extended one community development loan totaling $1.1 million in the DFW area in 2006, with no community development loans originated in 2007. INVESTMENT TEST PCB made an excellent level of qualified community development investments and grants in the DFW assessment area. Total investment activity for the DFW AA is $18.2 million. Existing obligations consist of $13 million in low-income housing tax credit and GNMA bond obligations that financed three multifamily affordable housing projects targeted for low- and moderate-income families and/or geographies. A new investment of $5 million in FNMA bond obligations that financed a multifamily affordable housing project was made since the previous evaluation. Additionally, PCB made $231,722 in qualifying charitable grants and donations in the assessment area. While the bank makes no use of innovative and/or complex investments, the total dollar amount of qualified investments and grants is excellent. Responsiveness to credit and community development needs is also excellent. Approximately 61% of the bank’s total community development investments are in this market. SERVICE TEST The bank’s performance under this test is good. The delivery systems are accessible to all portions of the assessment area. Business hours and services do not vary in a way that inconveniences its assessment area. The bank provides a limited level of community development services to the DFW AA. Retail Services: The branch network is accessible to all portions of the area, and the record of opening branches has improved the accessibility of its delivery systems, particularly to LMI geographies and/or individuals. PCB operates 12 full-service branches in the MSA: three in moderate-income census tracts, four in middle-income, and five in upper-income census tracts. Thirteen ATMs are operated throughout the area, including two cash-only ATMs in moderate-income tracts at the Turtle Creek branch in Dallas and the downtown Fort Worth branch. The bank opened five branches in the DFW AA since the previous evaluation: the branch in


24

Arlington is in a moderate-income census tract, the two branches in Fort Worth are in middle-income census tracts and the two branches in Dallas are in upper-income census tracts. Products are virtually identical in all offices and business hours do not vary in a way that inconveniences certain portions of the assessment area. Standard branch hours are 8 a.m. to 4 p.m. or 5 p.m. Monday through Friday. The motor banks at all locations are open from 7:30 or 8 a.m. until 6 p.m. Monday through Friday and from 8 or 9 a.m. to 1 p.m. on Saturdays. Community Development Services: The volume of community development services has decreased since the previous examination and is now at a limited level. Bank management and staff serve in leadership roles and contribute their time and financial expertise to organizations providing social, health and educational services to LMI people; and promoting economic and community development in the area, including the following:

Friends of Fair Park Parker County Health Foundation Weatherford Economic Development Corporation Lighthouse for the Blind of Fort Worth Advisory Council Heroes for Children, Dallas Easter Seals North Texas United Community Centers, Inc. Senior Citizens Services of Greater Tarrant County


25

DESCRIPTION OF INSTITUTION’S OPERATIONS IN TRAVIS AND WILLIAMSON COUNTIES (portion of AUSTIN-ROUND ROCK, TEXAS MSA 12420) The Austin assessment area consists of two of the five counties that comprise the Austin-Round Rock, TX MSA: Travis and Williamson. The assessment area, located in the central Texas Hill Country, contains the state capital city of Austin, and the rapidly growing high tech center of Round Rock in Williamson County. Other Williamson County municipalities include the county seat of Georgetown, as well as Cedar Park, Taylor and Granger. The total population for the two-county assessment area was estimated at 1.3 million in 2007. This is approximately a 27% increase since the 2000 census. The Austin area, home to five universities including the University of Texas, is a leader in education with 40% of residents age 25 and over holding a bachelor’s degree or higher, significantly above the 26% national average. As of the examination date, November 3, 2008, PCB operated three retail branches in the Austin assessment area, representing 15% percent of all retail branches in the bank’s combined assessment areas. PCB’s Austin area branches contained $299 million in deposits at June 30, 2008, or 14% percent of the bank’s total branch deposits in its combined assessment areas. PCB operates two branches in Austin and one in Round Rock. Total market deposits as of June 30, 2008 were $18.9 billion in the 56 insured institutions operating 410 banking offices in Travis and Williamson Counties. PCB held 1.6% of the market deposits and ranked 10th in market share. The leading institutions in market share were Bank of America, N.A. (20.7%); JPMorgan Chase Bank, N.A. (14.3%); and Wells Fargo Bank, N.A. (14.0%). Demographic and economic information impacting the bank’s performance context are discussed below. Information was obtained from publicly available sources including the U.S. Department of Commerce’s Bureau of the Census, 2000; the U.S. Department of Labor; the U.S. Department of Housing and Urban Development; and the Texas Workforce Commission. Income - As of the 2000 census, there were 253,319 total families living in the Austin assessment area. Overall, 19% of the families are low-income, 18% are moderate-income, 22% are middle-income, and 41% are upper-income families. Less than 7% of assessment area families live below the poverty level. The 2006 and 2007 HUD-adjusted median family income for the Austin-Round Rock MSA is $69,600 and $69,300, respectively. The assessment area contains 227 census tracts, with 9% low-income, 25% moderate-income, 38% middle-income, and 28% upper-income geographies. Housing - There are 426,206 housing units in the assessment area. Fifty-four percent of housing units are owner-occupied. Rental units comprise 42% of all housing units, and 4% are vacant. Sixty-one percent of assessment area housing units are single-family, 27% are five or more family units, almost 8% are 2-4 family units, and 4% are mobile homes. The median age of the assessment area housing stock is 18 years. According to the National Association of Realtors, the median home price in Austin was $184,200 in 2007, compared to the state at $147,500 and national median of $217,800.


26

Employment - High-tech industry, state and local government, tourism, agribusiness, and education support the economy of the Austin-Round Rock MSA. While agriculture continues to be the primary industry in Williamson County, the area has experienced a high rate of growth due to its proximity to Austin’s high-tech corridor. Major area employers include Dell Computers, the University of Texas at Austin, IBM, Seton Healthcare Network, the city of Austin, and the state of Texas. Agricultural products include beef, livestock, sorghum, cotton, corn, and wheat. The labor force for the MSA totals over 800,000. Unemployment in the area has been on a decline from a high of 5.9% in 2003 to 3.7% in 2007. According to the 2007 Dun & Bradstreet data, the assessment area contains 62,631 business establishments, 90.6% of which reported gross annual revenues of $1 million or less. Approximately five percent of businesses are located in low-income census tracts, approximately 17% in moderate-income, 38% in middle-income, and approximately 41% in upper-income census tracts. Community Contacts – Discussions were held with community leaders. Contacts identified affordable housing, financial literacy programs, loans for small businesses, opportunities to serve on boards, flexible lending programs, and low-cost checking accounts as community priorities and areas of opportunity for local financial institutions’ participation. The following chart details demographic information for the Austin assessment area obtained from the 2000 U.S. Census and 2007 Dun & Bradstreet data.


27

Assessment Area Demographics Assessment Area: Austin-Round Rock - Travis/Williamson



Families by Tract


Tract Distribution

Income Categories

# # # # %% %%Low-income 20 14,509 3,513 48,208 8.8 5.7 24.2 19.0

Moderate-income 56 55,049 7,599 44,564 24.7 21.7 13.8 17.6

Middle-income 86 98,144 4,064 56,845 37.9 38.7 4.1 22.4

Upper-income 63 85,617 1,436 103,702 27.8 33.8 1.7 40.9

Unknown-income 2 0 0 0 0.9 0.0 0.0 0.0




# # # %% %%Low-income 34,714 6,874 26,408 1,432 3.0 19.8 76.1 4.1

Moderate-income 100,211 38,367 57,880 3,964 16.7 38.3 57.8 4.0

Middle-income 166,535 92,241 66,830 7,464 40.2 55.4 40.1 4.5

Upper-income 124,746 92,032 26,900 5,814 40.1 73.8 21.6 4.7

Unknown-income 0 0 0 0 0.0 0.0 0.0 0.0



Over $1 Million




# # # #% % % %Low-income 2,873 2,555 192 126 4.5 4.5 7.8 4.6

Moderate-income 10,549 9,464 773 312 16.7 18.1 19.4 16.8

Middle-income 23,803 21,572 1,619 612 38.0 37.8 38.0 38.0

Upper-income 25,337 23,094 1,692 551 40.7 39.5 34.2 40.5

Unknown-income 69 55 6 8 0.1 0.1 0.5 0.1


100.0 100.0 100.0 100.0

90.6 6.8 2.6

62,631 56,740 4,282 1,609



28

CONCLUSIONS WITH RESPECT TO PERFORMANCE TESTS IN AUSTIN-ROUND ROCK, TEXAS MSA LENDING TEST PCB’s overall performance under the lending test in Travis and Williamson Counties is good. Lending levels demonstrate adequate responsiveness to assessment area credit needs, and the geographic distribution of loans reflects good penetration throughout the assessment area. The rating is enhanced by a high level of community development loans that helped meet the community’s affordable housing needs. Further, competition among financial service providers is intense in the assessment area. HMDA reportable loans are the dominant credit product and are weighted more heavily. Data supporting this analysis can be seen in detail in Appendix C on pages 51-59. Lending Activity: PCB’s lending levels in the Austin assessment area reflect good responsiveness to the credit needs of the community. Overall, 2,395 or 15.4% of PCB’s total loans were reported in this assessment area. The bank reported 2,116 HMDA loans totaling $312.1 million. This is 17.1% of the total HMDA reportable loans made by the bank and its affiliates. HMDA lending decreased 30% in the Austin AA from 2006 to 2007. There were only 279 small business loans totaling $60.8 million and 4 small farm loans totaling $589,000 originated during this evaluation period. Small business lending decreased approximately 39% and small farm lending decreased 71% since the last evaluation, when 456 small business loans totaling $98 million and 14 small farm loans totaling $3 million was reported. PCB ranked 22 out of 130 lenders reporting small business loans in the assessment area in 2007. Small farm lending activity in this assessment area is minimal and is not analyzed. Geographic Distribution: The geographic distribution of the bank’s lending reflects good penetration throughout the assessment area. For this analysis, the geographic distribution of the bank’s HMDA lending and small business lending originations were compared to available demographic information. Performance context issues were also considered, as well as the performance of other banks. HMDA reportable lending in low-income census tracts at 2.3% in 2006 was slightly lower than the percentage of owner-occupied housing units at 3%. In 2007, HMDA reportable loans at 3.5% in low-income census tracts is above the percentage of owner-occupied housing units as well as the percentage of lending for aggregate lenders at 2.7%. The bank’s lending in moderate-income census tracts in 2006 was at 12.8%; however, it decreased in 2007 to 10.9%, as did the level of lending for aggregate lenders. Purchase money mortgage loans were the significant product and thus their decline influenced the overall numbers. Aggregate lenders reported 12.9% of HMDA reportable loans in moderate-income census tracts in 2007. PCB and the aggregate are below the 16.7% of owner-occupied housing units in moderate-income census tracts. The bank’s ranking at 114th, Prime’s ranking of 25th, and Momentum’s ranking at 142nd out of 572 reporters in 2007 indicates a very small market share for HMDA loans. Further, the market is dominated by subprime lenders. PCB and its mortgage affiliates had a combined market share of less than 1%.


29

PCB’s small business lending in low-income census tracts in the Austin AA at 5.6% and 5.9% in 2006 and 2007, respectively was higher than the percentage of small businesses located in these census tracts at 4.5%. The bank’s small business lending in moderate-income census tracts was at 14% and 19.9% in 2006 and 2007, respectively. Aggregate reported 3.2% in low- and 13.5% in moderate-income census tracts in 2007. PCB exceeded the aggregate percentage of small business lending in low- and moderate-income census tracts. Further, PCB’s percentage of small business lending substantially surpassed the 16.5% of small businesses in moderate-income census tracts in 2007. Distribution by Borrower Income and Revenue Size of the Business: PCB’s lending performance reflects good penetration among individuals of different income levels and businesses of different sizes. For this analysis, the distribution of HMDA lending across borrower income levels and small business lending across business revenue sizes was compared with available demographic information. Performance context issues were also considered, as well as the performance of other banks. Census data indicate 19% of area families are low-income, just under 18% are moderate-income and almost 7% live below the poverty level. In 2006, the bank reported 5.8% of its HMDA reportable loans to low- and 24.4% to moderate-income borrowers. In 2007, the bank reported 5.2% and 22% of HMDA reportable loans to low- and moderate-income borrowers, respectively; while aggregate lenders reported 3.8% and 15.7%, respectively. The percentage of lending to low-income borrowers was substantially lower than the percentage of low-income families, but the level of lending exceeded the percentage of families who were moderate income. However, 6.6% of families in the assessment area are below the poverty level. Additionally, the bank materially exceeded the aggregate in originating loans to low- and moderate-income borrowers. It is often difficult for families with incomes below the poverty level to qualify for residential real estate loans without flexible or innovative loan underwriting standards. Therefore, it is expected the volume of lending to these borrowers will be low. According to Dun & Bradstreet data, approximately 91% of area businesses reported gross annual revenues less than or equal to $1 million. For 2006, PCB made 47.6% of its CRA reportable loans to small businesses. PCB’s 2007 data reflects a decrease in loans to small businesses, with these loans representing 33.1% of CRA reportable loans, compared to 40.1% for aggregate banks, which reported an increase in lending over this same period. PCB’s percentage of loans in amounts of $100,000 or less at 51.1% is significantly below aggregate at 97.1%. The assessment area is dominated by credit card lenders which typically make small business loans in amounts less than $100,000. The bank’s focus is on “medium market businesses” with revenues of $5 to $50 million. As such, the performance is reasonable in light of its target businesses and competition. Community Development Lending: Given the level of competition in the market from multi-regional financial institutions, the bank made a relatively high level of community development loans. During the review period, PCB made three loans totaling $21.6 million. These loans were for the acquisition and interim construction of affordable homes in the Austin area.


30

INVESTMENT TEST Although there is competition, PCB made a significant level of qualified community development investments and grants in the Austin AA during the review period. Total investment activity for the Austin AA consists of $6.4 million in low-income housing tax credit FNMA bond obligations that financed a multifamily affordable housing project targeted for low- and moderate-income families. In addition, PCB made $1,100 in qualifying charitable donations in the assessment area. Investments totaled $4,200 in the prior evaluation period. The bank makes no use of innovative and/or complex investments to support community development initiatives in this assessment area. SERVICE TEST PCB’s performance under the service test in the Austin assessment area is adequate. Systems for delivering retail banking services are effective and are reasonably accessible to the geographies and individuals of different income levels in this assessment area. The record of opening branches has not adversely affected the accessibility of its delivery systems. No branches were closed during this review period in the assessment area. Services do not vary in a way that inconveniences its assessment area, particularly low- and moderate-income geographies and/or low- and moderate-income individuals. The bank provides few, if any community development services for the Austin area. Retail Services: Retail delivery systems are reasonably accessible to the geographies and individuals of different income levels in the assessment area. PCB operates two full-service branches and a motor bank in upper-income census tracts in Austin. The bank has two ATMs which are located at the motor bank and the downtown Austin branch. No branches were closed during the review period. Products are virtually identical in all offices and business hours do not vary in a way that inconveniences certain portions of the assessment area. While branch locations are not in all income level census tracts, they are reasonably accessible to all income levels. PCB’s use of alternative delivery systems, such as internet banking and bank by phone and mail, enhanced the distribution of banking services throughout the assessment area. Community Development Services: PCB provides few, if any community development services within the Austin assessment area. Bank management volunteered time and provided technical and financial expertise to Greenlights, with an officer serving on the redevelopment committee. This project is a major redevelopment undertaking in downtown Austin.


31

LIMITED SCOPE ASSESSMENT AREA CONCLUSIONS DESCRIPTION OF INSTITUTION’S OPERATIONS IN BEXAR COUNTY (portion of SAN ANTONIO, TEXAS MSA 41700) The San Antonio AA consists of Bexar County; one of eight counties that comprise the San Antonio MSA. The AA is located in south-central Texas. The population of Bexar County was estimated at 1.6 million in 2007; a 14% increase since the 2000 census. The city of San Antonio is the county seat. The population of San Antonio was estimated at 1.3 million in 2007, up approximately 18% since 2000. Of the 347,923 families in the AA 22% are low-income, 18% moderate-income, 20% middle-income, and 40% are upper-income. There are 278 census tracts in Bexar County, of which 4% are low-income, 41% are moderate-income, 29% are middle-income, 25% are upper-income and 1% are income unknown. As of June 30, 2008, PCB ranked 27th of 43 financial institutions in Bexar County. There were 353 banking offices in the county and market deposits totaled $43.5 billion. The leading institutions and their market share were as follows: USAA Federal Savings Bank (62.8%), Frost National Bank (8.6%), and Bank of America, N.A. (7.5%). The bank operates two branches in San Antonio: one in a middle-income tract and one in an upper-income tract. CONCLUSIONS WITH RESPECT TO PERFORMANCE TESTS IN BEXAR COUNTY PCB’s performance in the assessment area receiving a limited review is generally consistent with the overall performance in the full scope assessment areas. PCB’s market share and branch presence in the San Antonio market is limited, containing just 0.1% of the bank’s total deposits and 9.7% of its loans. Therefore, the following conclusion regarding performance did not weigh heavily in the overall rating. Facts and data reviewed, including performance and demographic information, can be found in Appendix D on pages 60-69.

ASSESSMENT AREA LENDING TEST INVESTMENT TEST SERVICE TEST

San Antonio Consistent Consistent Consistent


32

Appendix A Lubbock, Texas MSA

Loan Distribution Tables


33

2006 HMDA Loan Distribution Table Assessment Area: Lubbock MSA

Income Categories

HMDABy Tract Income By Borrower Income

# % $(000s) % # % $(000s) % Home Purchase

Low 0 0.0% 0 0.0% 12 3.2% 772 1.9% Moderate 41 11.0% 2,179 5.2% 28 7.5% 1,792 4.3% Low/Moderate Total 41 11.0% 2,179 5.2% 40 10.8% 2,564 6.2% Middle 135 36.3% 13,185 31.8% 75 20.2% 7,060 17.0% Upper 196 52.7% 26,160 63.0% 221 59.4% 28,822 69.4%Unknown 0 0.0% 0 0.0% 36 9.7% 3,078 7.4%Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 372 100.0% 41,524 100.0% 372 100.0% 41,524 100.0%

Refinance Low 0 0.0% 0 0.0% 1 1.2% 106 1.0% Moderate 11 12.8% 721 6.9% 6 7.0% 373 3.6% Low/Moderate Total 11 12.8% 721 6.9% 7 8.1% 479 4.6% Middle 34 39.5% 2,999 28.8% 18 20.9% 1,498 14.4% Upper 41 47.7% 6,691 64.3% 55 64.0% 7,635 73.3%Unknown 0 0.0% 0 0.0% 6 7.0% 799 7.7% Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 86 100.0% 10,411 100.0% 86 100.0% 10,411 100.0%

Home Improvement Low 0 0.0% 0 0.0% 4 10.8% 38 3.9% Moderate 10 27.0% 321 32.5% 1 2.7% 20 2.0%Low/Moderate Total 10 27.0% 321 32.5% 5 13.5% 58 5.9%Middle 9 24.3% 123 12.5% 5 13.5% 91 9.2% Upper 18 48.6% 543 55.0% 21 56.8% 723 73.3% Unknown 0 0.0% 0 0.0% 6 16.2% 115 11.7% Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 37 100.0% 987 100.0% 37 100.0% 987 100.0%

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% 99 100.0% 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% 99 100.0% Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 1 100.0% 99 100.0% 1 100.0% 99 100.0%

HMDA Totals Low 0 0.0% 0 0.0% 17 3.4% 916 1.7%Moderate 62 12.5% 3,221 6.1% 35 7.1% 2,185 4.1% Low/Moderate Total 62 12.5% 3,221 6.1% 52 10.5% 3,101 5.8% Middle 179 36.1% 16,406 30.9% 98 19.8% 8,649 16.3% Upper 255 51.4% 33,394 63.0% 297 59.9% 37,180 70.1% Unknown 0 0.0% 0 0.0% 49 9.9% 4,091 7.7% Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0%Total 496 100.0% 53,021 100.0% 496 100.0% 53,021 100.0%


34

Peer Group 2006 HMDA Loan Distribution Table

Assessment Area: Lubbock MSA

Income Categories


# % $(000s) % # % $(000s) % Home Purchase

Low 18 0.2% 2,143 0.2% 361 3.8% 20,699 2.2%Moderate 1,180 12.4% 68,148 7.3% 1,226 12.9% 87,909 9.5% Low/Moderate Total 1,198 12.6% 70,291 7.6% 1,587 16.7% 108,608 11.7% Middle 4,066 42.7% 348,450 37.6% 2,108 22.1% 183,652 19.8% Upper 4,266 44.8% 509,067 54.9% 4,695 49.3% 540,327 58.2%Unknown 1 0.0% 48 0.0% 1,141 12.0% 95,269 10.3%Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 9,531 100.0% 927,856 100.0% 9,531 100.0% 927,856 100.0%

RefinanceLow 0 0.0% 0 0.0% 111 4.7% 5,111 1.9% Moderate 424 17.8% 23,849 8.9% 251 10.5% 14,444 5.4% Low/Moderate Total 424 17.8% 23,849 8.9% 362 15.2% 19,555 7.3% Middle 1,096 45.9% 107,548 40.0% 409 17.1% 32,911 12.2%Upper 867 36.3% 137,293 51.1% 1,277 53.5% 175,149 65.2%Unknown 0 0.0% 0 0.0% 339 14.2% 41,075 15.3% Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 2,387 100.0% 268,690 100.0% 2,387 100.0% 268,690 100.0%

Home ImprovementLow 1 0.2% 10 0.1% 44 9.2% 1,098 6.2% Moderate 138 29.0% 4,149 23.4% 97 20.4% 2,757 15.6%Low/Moderate Total 139 29.2% 4,159 23.5% 141 29.6% 3,855 21.8%Middle 199 41.8% 6,733 38.0% 93 19.5% 3,074 17.3%Upper 138 29.0% 6,830 38.5% 231 48.5% 10,460 59.0% Unknown 0 0.0% 0 0.0% 11 2.3% 333 1.9% Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 476 100.0% 17,722 100.0% 476 100.0% 17,722 100.0%

Multi-Family Low 0 0.0% 0 0.0% 0 0.0% 0 0.0%Moderate 4 30.8% 3,217 15.6% 0 0.0% 0 0.0%Low/Moderate Total 4 30.8% 3,217 15.6% 0 0.0% 0 0.0%Middle 8 61.5% 12,454 60.2% 0 0.0% 0 0.0% Upper 1 7.7% 5,000 24.2% 0 0.0% 0 0.0% Unknown 0 0.0% 0 0.0% 13 100.0% 20,671 100.0% Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 13 100.0% 20,671 100.0% 13 100.0% 20,671 100.0%

HMDA TotalsLow 19 0.2% 2,153 0.2% 516 4.2% 26,908 2.2%Moderate 1,746 14.1% 99,363 8.0% 1,574 12.7% 105,110 8.5%Low/Moderate Total 1,765 14.2% 101,516 8.2% 2,090 16.8% 132,018 10.7% Middle 5,369 43.3% 475,185 38.5% 2,610 21.0% 219,637 17.8% Upper 5,272 42.5% 658,190 53.3% 6,203 50.0% 725,936 58.8% Unknown 1 0.0% 48 0.0% 1,504 12.1% 157,348 12.7% Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0%Total 12,407 100.0% 1,234,939 100.0% 12,407 100.0% 1,234,939 100.0%


35

2007 HMDA Loan Distribution Table Assessment Area: Lubbock MSA

Income Categories


# % $(000s) % # % $(000s) % Home Purchase

Low 0 0.0% 0 0.0% 7 2.4% 489 1.4% Moderate 27 9.2% 1,637 4.7% 39 13.3% 2,833 8.2% Low/Moderate Total 27 9.2% 1,637 4.7% 46 15.7% 3,322 9.6% Middle 118 40.3% 12,248 35.5% 41 14.0% 3,791 11.0% Upper 148 50.5% 20,594 59.7% 190 64.8% 25,401 73.7%Unknown 0 0.0% 0 0.0% 16 5.5% 1,965 5.7%Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 293 100.0% 34,479 100.0% 293 100.0% 34,479 100.0%

Refinance Low 0 0.0% 0 0.0% 2 2.1% 157 1.4% Moderate 9 9.4% 609 5.3% 13 13.5% 1,143 9.9% Low/Moderate Total 9 9.4% 609 5.3% 15 15.6% 1,300 11.3% Middle 23 24.0% 1,982 17.2% 10 10.4% 681 5.9% Upper 64 66.7% 8,912 77.5% 61 63.5% 8,795 76.5%Unknown 0 0.0% 0 0.0% 10 10.4% 727 6.3% Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 96 100.0% 11,503 100.0% 96 100.0% 11,503 100.0%

Home Improvement Low 0 0.0% 0 0.0% 0 0.0% 0 0.0% Moderate 3 11.5% 45 3.2% 1 3.8% 7 0.5%Low/Moderate Total 3 11.5% 45 3.2% 1 3.8% 7 0.5%Middle 12 46.2% 894 63.1% 2 7.7% 78 5.5% Upper 11 42.3% 478 33.7% 15 57.7% 1,073 75.7% Unknown 0 0.0% 0 0.0% 8 30.8% 259 18.3% Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 26 100.0% 1,417 100.0% 26 100.0% 1,417 100.0%

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 0 0.0% 0 0.0% 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% 0 0.0% 0 0.0% Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 0 0.0% 0 0.0% 0 0.0% 0 0.0%

HMDA Totals Low 0 0.0% 0 0.0% 9 2.2% 646 1.4%Moderate 39 9.4% 2,291 4.8% 53 12.8% 3,983 8.4% Low/Moderate Total 39 9.4% 2,291 4.8% 62 14.9% 4,629 9.8% Middle 153 36.9% 15,124 31.9% 53 12.8% 4,550 9.6% Upper 223 53.7% 29,984 63.3% 266 64.1% 35,269 74.4% Unknown 0 0.0% 0 0.0% 34 8.2% 2,951 6.2% Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0%Total 415 100.0% 47,399 100.0% 415 100.0% 47,399 100.0%


36



Income Categories

HMDA By Tract Income By Borrower Income

# % $(000s) % # % $(000s) % Home Purchase

Low 12 0.1% 1,334 0.1% 337 3.9% 20,667 2.2%Moderate 1,074 12.6% 74,136 8.1% 1,324 15.5% 104,080 11.3%Low/Moderate Total 1,086 12.7% 75,470 8.2% 1,661 19.5% 124,747 13.6%Middle 3,548 41.6% 328,657 35.8% 1,932 22.6% 180,954 19.7%Upper 3,898 45.7% 514,765 56.0% 4,316 50.6% 554,530 60.3%Unknown 0 0.0% 0 0.0% 623 7.3% 58,661 6.4% Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 8,532 100.0% 918,892 100.0% 8,532 100.0% 918,892 100.0%

RefinanceLow 1 0.0% 30 0.0% 99 4.7% 4,333 1.8%Moderate 369 17.6% 21,763 9.2% 245 11.7% 14,732 6.2%Low/Moderate Total 370 17.6% 21,793 9.2% 344 16.4% 19,065 8.0%Middle 835 39.8% 76,250 32.1% 363 17.3% 28,734 12.1% Upper 894 42.6% 139,390 58.7% 1,178 56.1% 165,566 69.7%Unknown 0 0.0% 0 0.0% 214 10.2% 24,068 10.1% Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 2,099 100.0% 237,433 100.0% 2,099 100.0% 237,433 100.0%

Home ImprovementLow 0 0.0% 0 0.0% 39 8.2% 727 4.1%Moderate 97 20.3% 2,379 13.5% 60 12.6% 1,214 6.9%Low/Moderate Total 97 20.3% 2,379 13.5% 99 20.8% 1,941 11.0% Middle 199 41.7% 4,956 28.2% 97 20.3% 2,917 16.6% Upper 181 37.9% 10,231 58.2% 264 55.3% 11,943 68.0%Unknown 0 0.0% 0 0.0% 17 3.6% 765 4.4% Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0%Total 477 100.0% 17,566 100.0% 477 100.0% 17,566 100.0%

Multi-FamilyLow 0 0.0% 0 0.0% 0 0.0% 0 0.0% Moderate 4 20.0% 10,890 33.7% 0 0.0% 0 0.0%Low/Moderate Total 4 20.0% 10,890 33.7% 0 0.0% 0 0.0% Middle 11 55.0% 18,530 57.3% 0 0.0% 0 0.0% Upper 5 25.0% 2,892 9.0% 0 0.0% 0 0.0%Unknown 0 0.0% 0 0.0% 20 100.0% 32,312 100.0%Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0%Total 20 100.0% 32,312 100.0% 20 100.0% 32,312 100.0%

HMDA TotalsLow 13 0.1% 1,364 0.1% 475 4.3% 25,727 2.1% Moderate 1,544 13.9% 109,168 9.1% 1,629 14.6% 120,026 10.0%Low/Moderate Total 1,557 14.0% 110,532 9.2% 2,104 18.9% 145,753 12.1% Middle 4,593 41.3% 428,393 35.5% 2,392 21.5% 212,605 17.6% Upper 4,978 44.7% 667,278 55.3% 5,758 51.7% 732,039 60.7%Unknown 0 0.0% 0 0.0% 874 7.9% 115,806 9.6%Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0%Total 11,128 100.0% 1,206,203 100.0% 11,128 100.0% 1,206,203 100.0%


37

2006 CRA Loan Distribution Table Assessment Area: Lubbock MSA

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 125 16.3% 5,295 14.1% 6 15.8% 836 18.9% Low/Moderate Total 125 16.3% 5,295 14.1% 6 15.8% 836 18.9% Middle 310 40.3% 14,963 39.9% 24 63.2% 2,986 67.5% Upper 334 43.4% 17,289 46.0% 8 21.1% 602 13.6% 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 769 100.0% 37,547 100.0% 38 100.0% 4,424 100.0%

By Revenue Total $1 Million or Less 625 81.3% 24,145 64.3% 29 76.3% 2,961 66.9% Over $1 Million 88 11.4% 11,415 30.4% 7 18.4% 1,173 26.5% Not Known 56 7.3% 1,987 5.3% 2 5.3% 290 6.6% Total 769 100.0% 37,547 100.0% 38 100.0% 4,424 100.0%

By Loan Size $100,000 or less 692 90.0% 15,682 41.8% 25 65.8% 1,195 27.0%$100,001 - $250,000 51 6.6% 8,655 23.1% 9 23.7% 1,732 39.2% $250,001 - $1 Million (Bus)-$500k (Farm) 26 3.4% 13,210 35.2% 4 10.5% 1,497 33.8% Over $1 Million (Bus)-$500k (Farm) 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 769 100.0% 37,547 100.0% 38 100.0% 4,424 100.0%

By Loan Size and Revenue $1 Million or Less $100,000 or less 581 93.0% 12,362 51.2% 21 72.4% 1,050 35.5%$100,001 - $250,000 31 5.0% 5,101 21.1% 6 20.7% 1,077 36.4%$250,001 - $1 Million (Bus)-$500k (Farm) 13 2.1% 6,682 27.7% 2 6.9% 834 28.2% Over $1 Million (Bus)-$500k (Farm) 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 625 100.0% 24,145 100.0% 29 100.0% 2,961 100.0%


38

Peer Group 2006 CRA Loan Distribution Table




Low 38 0.4% 1,425 0.8% 0 0.0% 0 0.0%Moderate 1,640 17.4% 38,176 21.4% 39 14.3% 1,575 10.0%Low/Moderate Total 1,678 17.8% 39,601 22.2% 39 14.3% 1,575 10.0%Middle 3,659 38.8% 64,974 36.4% 110 40.3% 6,800 43.2% Upper 3,718 39.5% 69,883 39.1% 115 42.1% 7,074 45.0% Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0% Tract Unknown 369 3.9% 4,177 2.3% 9 3.3% 285 1.8%Total 9,424 100.0% 178,635 100.0% 273 100.0% 15,734 100.0%

By Revenue Total $1 Million or Less 3,715 39.4% 91,683 51.3% 203 74.4% 12,500 79.4%

By Loan Size$100,000 or Less 9,144 97.0% 91,365 51.1% 228 83.5% 5,437 34.6% $100,001 - $250,000 159 1.7% 26,498 14.8% 32 11.7% 5,434 34.5% $250,001 - $1 Million (Bus)-$500k (Farm) 121 1.3% 60,772 34.0% 13 4.8% 4,863 30.9%Over $1 Million (Bus)-$500k (Farm) 0 0.0% 0 0.0% 0 0.0% 0 0.0%Total 9,424 100.0% 178,635 100.0% 273 100.0% 15,734 100.0%


39

2007 CRA Loan Distribution Table Assessment Area: Lubbock MSA



Low 4 0.6% 490 1.0% 0 0.0% 0 0.0% Moderate 151 21.4% 13,770 27.6% 8 18.2% 540 20.1%Low/Moderate Total 155 22.0% 14,260 28.6% 8 18.2% 540 20.1%Middle 263 37.4% 18,410 36.9% 27 61.4% 1,525 56.8%Upper 286 40.6% 17,173 34.5% 9 20.5% 622 23.1% 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 704 100.0% 49,843 100.0% 44 100.0% 2,687 100.0%

By RevenueTotal $1 Million or Less 591 83.9% 36,143 72.5% 34 77.3% 2,218 82.5% Over $1 Million 52 7.4% 11,804 23.7% 9 20.5% 461 17.2%Not Known 61 8.7% 1,896 3.8% 1 2.3% 8 0.3% Total 704 100.0% 49,843 100.0% 44 100.0% 2,687 100.0%

By Loan Size $100,000 or less 599 85.1% 14,505 29.1% 37 84.1% 1,418 52.8% $100,001 - $250,000 57 8.1% 10,038 20.1% 6 13.6% 869 32.3%$250,001 - $1 Million (Bus)-$500k (Farm) 48 6.8% 25,300 50.8% 1 2.3% 400 14.9%Over $1 Million (Bus)-$500k (Farm) 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 704 100.0% 49,843 100.0% 44 100.0% 2,687 100.0%

By Loan Size and Revenue $1 Million or Less $100,000 or less 515 87.1% 11,716 32.4% 28 82.4% 1,062 47.9% $100,001 - $250,000 44 7.4% 7,768 21.5% 5 14.7% 756 34.1% $250,001 - $1 Million (Bus)-$500k (Farm) 32 5.4% 16,659 46.1% 1 2.9% 400 18.0%Over $1 Million (Bus)-$500k (Farm) 0 0.0% 0 0.0% 0 0.0% 0 0.0%Total 591 100.0% 36,143 100.0% 34 100.0% 2,218 100.0%


40





Low 25 0.2% 275 0.1% 3 0.5% 54 0.1% Moderate 1,792 16.6% 48,031 18.4% 66 10.6% 5,199 12.8%Low/Moderate Total 1,817 16.8% 48,306 18.5% 69 11.1% 5,253 13.0% Middle 4,204 38.9% 96,981 37.1% 287 46.1% 18,938 46.8% Upper 4,451 41.2% 112,017 42.8% 260 41.7% 16,097 39.8% Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0%Tract Unknown 326 3.0% 4,409 1.7% 7 1.1% 178 0.4%Total 10,798 100.0% 261,713 100.0% 623 100.0% 40,466 100.0%


By Loan Size $100,000 or Less 10,349 95.8% 122,118 46.7% 509 81.7% 14,161 35.0%$100,001 - $250,000 257 2.4% 43,065 16.5% 76 12.2% 12,658 31.3%$250,001 - $1 Million (Bus)-$500k (Farm) 192 1.8% 96,530 36.9% 38 6.1% 13,647 33.7%Over $1 Million (Bus)-$500k (Farm) 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 10,798 100.0% 261,713 100.0% 623 100.0% 40,466 100.0%


41

Appendix B Collin, Dallas, Denton, Tarrant and Parker Counties (portion of Dallas-Ft. Worth-Arlington, Texas MSA)

Loan Distribution Tables


42

2006 HMDA Loan Distribution Table Assessment Area: Collin, Dallas, Denton, Tarrant and Parker Counties

(portion of Dallas-Fort Worth-Arlington MSA)

Income Categories


# % $(000s) % # % $(000s) % Home Purchase

Low 34 0.9% 3,795 0.7% 62 1.6% 5,106 1.0% Moderate 234 6.2% 21,735 4.2% 394 10.4% 34,275 6.6% Low/Moderate Total 268 7.1% 25,530 4.9% 456 12.0% 39,381 7.5% Middle 1,123 29.6% 121,961 23.4% 768 20.2% 75,564 14.5% Upper 2,406 63.3% 374,083 71.7% 2,188 57.6% 371,227 71.1%Unknown 1 0.0% 278 0.1% 386 10.2% 35,680 6.8%Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 3,798 100.0% 521,852 100.0% 3,798 100.0% 521,852 100.0%

Refinance Low 4 0.7% 519 0.5% 7 1.3% 521 0.5% Moderate 47 8.8% 3,844 3.6% 42 7.9% 4,282 4.0% Low/Moderate Total 51 9.6% 4,363 4.1% 49 9.2% 4,803 4.5% Middle 153 28.7% 20,700 19.5% 96 18.0% 10,569 10.0%Upper 330 61.8% 80,825 76.3% 343 64.2% 84,553 79.9%Unknown 0 0.0% 0 0.0% 46 8.6% 5,963 5.6% Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 534 100.0% 105,888 100.0% 534 100.0% 105,888 100.0%

Home Improvement Low 0 0.0% 0 0.0% 1 3.4% 30 1.2% Moderate 2 6.9% 122 5.0% 2 6.9% 122 5.0%Low/Moderate Total 2 6.9% 122 5.0% 3 10.3% 152 6.2%Middle 9 31.0% 580 23.7% 1 3.4% 27 1.1%Upper 18 62.1% 1,748 71.3% 19 65.5% 1,856 75.8% Unknown 0 0.0% 0 0.0% 6 20.7% 415 16.9% Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 29 100.0% 2,450 100.0% 29 100.0% 2,450 100.0%

Multi-FamilyLow 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 0 0.0% 0 0.0% 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% 0 0.0% 0 0.0% Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 0 0.0% 0 0.0% 0 0.0% 0 0.0%

HMDA Totals Low 38 0.9% 4,314 0.7% 70 1.6% 5,657 0.9%Moderate 283 6.5% 25,701 4.1% 438 10.0% 38,679 6.1% Low/Moderate Total 321 7.4% 30,015 4.8% 508 11.6% 44,336 7.0% Middle 1,285 29.5% 143,241 22.7% 865 19.8% 86,160 13.7% Upper 2,754 63.2% 456,656 72.5% 2,550 58.5% 457,636 72.6% Unknown 1 0.0% 278 0.0% 438 10.0% 42,058 6.7% Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0%Total 4,361 100.0% 630,190 100.0% 4,361 100.0% 630,190 100.0%


43


Assessment Area: Collin, Dallas, Denton, Tarrant and Parker Counties (portion of Dallas-Fort Worth-Arlington MSA)

Income Categories


# % $(000s) % # % $(000s) % Home Purchase

Low 4,455 1.7% 371,353 1.1% 11,826 4.4% 880,532 2.6% Moderate 29,757 11.2% 2,438,339 7.3% 44,239 16.6% 3,910,522 11.7%Low/Moderate Total 34,212 12.9% 2,809,692 8.4% 56,065 21.1% 4,791,054 14.3% Middle 96,974 36.4% 10,066,994 30.0% 57,336 21.5% 5,952,540 17.8%Upper 134,998 50.7% 20,634,074 61.6% 104,840 39.4% 17,297,398 51.6%Unknown 6 0.0% 1,007 0.0% 47,949 18.0% 5,470,775 16.3% Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 266,190 100.0% 33,511,767 100.0% 266,190 100.0% 33,511,767 100.0%

Refinance Low 1,403 2.2% 117,674 1.3% 3,697 5.8% 259,305 2.8%Moderate 10,140 16.0% 829,965 9.0% 9,521 15.0% 846,635 9.2%Low/Moderate Total 11,543 18.2% 947,639 10.3% 13,218 20.9% 1,105,940 12.0%Middle 22,205 35.1% 2,609,420 28.4% 12,113 19.1% 1,323,735 14.4%Upper 29,568 46.7% 5,639,785 61.3% 24,480 38.7% 4,869,501 52.9% Unknown 1 0.0% 25 0.0% 13,506 21.3% 1,897,693 20.6%Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 63,317 100.0% 9,196,869 100.0% 63,317 100.0% 9,196,869 100.0%

Home ImprovementLow 243 2.0% 9,372 1.5% 1,003 8.2% 30,382 4.8%Moderate 1,770 14.4% 68,299 10.8% 1,859 15.1% 65,135 10.3% Low/Moderate Total 2,013 16.4% 77,671 12.3% 2,862 23.3% 95,517 15.1%Middle 3,963 32.3% 168,483 26.7% 2,356 19.2% 84,951 13.5% Upper 6,295 51.3% 384,888 61.0% 6,392 52.1% 407,242 64.5% Unknown 0 0.0% 0 0.0% 661 5.4% 43,332 6.9%Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 12,271 100.0% 631,042 100.0% 12,271 100.0% 631,042 100.0%

Multi-FamilyLow 69 15.6% 123,914 6.7% 0 0.0% 0 0.0%Moderate 142 32.1% 442,732 24.0% 0 0.0% 0 0.0% Low/Moderate Total 211 47.7% 566,646 30.8% 0 0.0% 0 0.0% Middle 119 26.9% 579,649 31.5% 0 0.0% 0 0.0% Upper 111 25.1% 695,041 37.7% 0 0.0% 0 0.0% Unknown 1 0.2% 427 0.0% 442 100.0% 1,841,763 100.0% Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0%Total 442 100.0% 1,841,763 100.0% 442 100.0% 1,841,763 100.0%

HMDA TotalsLow 6,170 1.8% 622,313 1.4% 16,526 4.8% 1,170,219 2.6%Moderate 41,809 12.2% 3,779,335 8.4% 55,619 16.3% 4,822,292 10.7% Low/Moderate Total 47,979 14.0% 4,401,648 9.7% 72,145 21.1% 5,992,511 13.3%Middle 123,261 36.0% 13,424,546 29.7% 71,805 21.0% 7,361,226 16.3% Upper 170,972 50.0% 27,353,788 60.5% 135,712 39.7% 22,574,141 50.0% Unknown 8 0.0% 1,459 0.0% 62,558 18.3% 9,253,563 20.5%Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0%Total 342,220 100.0% 45,181,441 100.0% 342,220 100.0% 45,181,441 100.0%


44

2007 HMDA Loan Distribution Table Assessment Area: Collin, Dallas, Denton, Tarrant and Parker Counties


Income Categories


# % $(000s) % # % $(000s) % Home Purchase

Low 27 0.9% 3,655 0.7% 86 2.9% 7,989 1.6% Moderate 196 6.6% 21,447 4.4% 396 13.4% 43,503 8.9% Low/Moderate Total 223 7.5% 25,102 5.2% 482 16.3% 51,492 10.6% Middle 1,002 33.8% 131,978 27.1% 556 18.8% 66,699 13.7% Upper 1,740 58.7% 330,263 67.8% 1,699 57.3% 342,796 70.3%Unknown 0 0.0% 0 0.0% 228 7.7% 26,356 5.4%Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 2,965 100.0% 487,343 100.0% 2,965 100.0% 487,343 100.0%

Refinance Low 4 0.6% 845 0.6% 10 1.6% 836 0.6% Moderate 37 5.9% 4,709 3.6% 53 8.4% 6,146 4.7% Low/Moderate Total 41 6.5% 5,554 4.3% 63 10.0% 6,982 5.3% Middle 177 28.1% 28,410 21.8% 106 16.9% 15,125 11.6%Upper 411 65.3% 96,555 74.0% 434 69.0% 104,531 80.1%Unknown 0 0.0% 0 0.0% 26 4.1% 3,881 3.0% Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 629 100.0% 130,519 100.0% 629 100.0% 130,519 100.0%

Home Improvement Low 1 3.8% 65 3.6% 1 3.8% 32 1.8% Moderate 9 34.6% 556 30.7% 0 0.0% 0 0.0%Low/Moderate Total 10 38.5% 621 34.3% 1 3.8% 32 1.8%Middle 8 30.8% 507 28.0% 3 11.5% 102 5.6%Upper 8 30.8% 685 37.8% 11 42.3% 1,056 58.2% Unknown 0 0.0% 0 0.0% 11 42.3% 623 34.4% Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 26 100.0% 1,813 100.0% 26 100.0% 1,813 100.0%

Multi-FamilyLow 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 0 0.0% 0 0.0% 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% 0 0.0% 0 0.0% Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 0 0.0% 0 0.0% 0 0.0% 0 0.0%

HMDA Totals Low 32 0.9% 4,565 0.7% 97 2.7% 8,857 1.4%Moderate 242 6.7% 26,712 4.3% 449 12.4% 49,649 8.0% Low/Moderate Total 274 7.6% 31,277 5.0% 546 15.1% 58,506 9.4% Middle 1,187 32.8% 160,895 26.0% 665 18.4% 81,926 13.2% Upper 2,159 59.6% 427,503 69.0% 2,144 59.2% 448,383 72.4% Unknown 0 0.0% 0 0.0% 265 7.3% 30,860 5.0% Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0%Total 3,620 100.0% 619,675 100.0% 3,620 100.0% 619,675 100.0%


45



Income Categories


# % $(000s) % # % $(000s) % Home Purchase

Low 3,091 1.5% 332,709 1.1% 8,983 4.5% 704,604 2.4% Moderate 21,988 11.0% 2,118,264 7.1% 31,630 15.9% 3,193,352 10.7% Low/Moderate Total 25,079 12.6% 2,450,973 8.2% 40,613 20.4% 3,897,956 13.0%Middle 72,418 36.3% 9,015,813 30.1% 40,138 20.1% 4,849,437 16.2% Upper 101,980 51.1% 18,414,933 61.6% 91,834 46.0% 17,415,035 58.2% Unknown 46 0.0% 22,186 0.1% 26,938 13.5% 3,741,477 12.5% Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 199,523 100.0% 29,903,905 100.0% 199,523 100.0% 29,903,905 100.0%

Refinance Low 976 1.6% 94,904 1.0% 2,358 4.0% 167,134 1.7%Moderate 7,788 13.2% 712,844 7.4% 7,781 13.1% 719,670 7.5% Low/Moderate Total 8,764 14.8% 807,748 8.4% 10,139 17.1% 886,804 9.2% Middle 19,979 33.8% 2,596,813 27.0% 11,177 18.9% 1,293,120 13.4% Upper 30,447 51.4% 6,224,499 64.6% 28,487 48.1% 5,909,185 61.4% Unknown 1 0.0% 90 0.0% 9,388 15.9% 1,540,041 16.0% Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0%Total 59,191 100.0% 9,629,150 100.0% 59,191 100.0% 9,629,150 100.0%

Home Improvement Low 262 2.1% 9,043 1.4% 731 5.8% 18,944 2.9% Moderate 1,767 14.0% 65,517 10.1% 1,719 13.6% 54,197 8.4% Low/Moderate Total 2,029 16.1% 74,560 11.5% 2,450 19.4% 73,141 11.3% Middle 4,105 32.6% 172,792 26.7% 2,235 17.7% 79,964 12.3% Upper 6,471 51.3% 400,829 61.8% 7,320 58.1% 454,632 70.1% Unknown 0 0.0% 0 0.0% 600 4.8% 40,444 6.2%Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0%Total 12,605 100.0% 648,181 100.0% 12,605 100.0% 648,181 100.0%

Multi-Family Low 84 18.0% 145,806 7.8% 0 0.0% 0 0.0% Moderate 184 39.5% 469,205 25.1% 0 0.0% 0 0.0% Low/Moderate Total 268 57.5% 615,011 33.0% 0 0.0% 0 0.0% Middle 127 27.3% 679,665 36.4% 0 0.0% 0 0.0% Upper 71 15.2% 571,494 30.6% 0 0.0% 0 0.0%Unknown 0 0.0% 0 0.0% 466 100.0% 1,866,170 100.0%Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 466 100.0% 1,866,170 100.0% 466 100.0% 1,866,170 100.0%

HMDA Totals Low 4,413 1.6% 582,462 1.4% 12,072 4.4% 890,682 2.1% Moderate 31,727 11.7% 3,365,830 8.0% 41,130 15.1% 3,967,219 9.4% Low/Moderate Total 36,140 13.3% 3,948,292 9.4% 53,202 19.6% 4,857,901 11.6% Middle 96,629 35.6% 12,465,083 29.6% 53,550 19.7% 6,222,521 14.8% Upper 138,969 51.1% 25,611,755 60.9% 127,641 47.0% 23,778,852 56.6%Unknown 47 0.0% 22,276 0.1% 37,392 13.8% 7,188,132 17.1% Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 271,785 100.0% 42,047,406 100.0% 271,785 100.0% 42,047,406 100.0%


46

2006 CRA Loan Distribution Table Assessment Area: Collin, Dallas, Denton, Tarrant and Parker Counties




Low 8 1.2% 2,160 2.3% 0 0.0% 0 0.0% Moderate 94 13.7% 17,349 18.2% 0 0.0% 0 0.0% Low/Moderate Total 102 14.9% 19,509 20.4% 0 0.0% 0 0.0% Middle 218 31.9% 25,988 27.2% 7 77.8% 442 68.2% Upper 358 52.3% 49,786 52.1% 2 22.2% 206 31.8% Unknown 6 0.9% 274 0.3% 0 0.0% 0 0.0%Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0%Total 684 100.0% 95,557 100.0% 9 100.0% 648 100.0%

By RevenueTotal $1 Million or Less 389 56.9% 37,360 39.1% 7 77.8% 252 38.9% Over $1 Million 148 21.6% 36,990 38.7% 0 0.0% 0 0.0% Not Known 147 21.5% 21,207 22.2% 2 22.2% 396 61.1% Total 684 100.0% 95,557 100.0% 9 100.0% 648 100.0%

By Loan Size $100,000 or less 458 67.0% 18,562 19.4% 7 77.8% 138 21.3%$100,001 - $250,000 124 18.1% 22,184 23.2% 1 11.1% 160 24.7% $250,001 - $1 Million (Bus)-$500k (Farm) 102 14.9% 54,811 57.4% 1 11.1% 350 54.0% Over $1 Million (Bus)-$500k (Farm) 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 684 100.0% 95,557 100.0% 9 100.0% 648 100.0%

By Loan Size and Revenue $1 Million or Less $100,000 or less 304 78.1% 11,566 31.0% 6 85.7% 92 36.5%$100,001 - $250,000 50 12.9% 8,820 23.6% 1 14.3% 160 63.5% $250,001 - $1 Million (Bus)-$500k (Farm) 35 9.0% 16,974 45.4% 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 389 100.0% 37,360 100.0% 7 100.0% 252 100.0%


47





Low 7,015 3.0% 176,921 3.5% 5 0.7% 139 0.8%Moderate 45,295 19.3% 1,251,932 24.6% 79 11.6% 2,094 11.8%Low/Moderate Total 52,310 22.3% 1,428,853 28.1% 84 12.3% 2,233 12.6%Middle 73,307 31.2% 1,512,869 29.7% 309 45.2% 7,955 44.9%Upper 103,231 44.0% 2,050,875 40.3% 264 38.7% 7,065 39.9% Unknown 928 0.4% 33,912 0.7% 0 0.0% 0 0.0%Tract Unknown 4,906 2.1% 64,860 1.3% 26 3.8% 464 2.6%Total 234,682 100.0% 5,091,369 100.0% 683 100.0% 17,717 100.0%

By RevenueTotal $1 Million or Less 90,819 38.7% 2,250,695 44.2% 507 74.2% 10,809 61.0%

By Loan Size $100,000 or Less 227,398 96.9% 2,450,836 48.1% 647 94.7% 9,505 53.6% $100,001 - $250,000 3,559 1.5% 636,343 12.5% 28 4.1% 4,697 26.5% $250,001 - $1 Million (Bus)-$500k (Farm) 3,725 1.6% 2,004,190 39.4% 8 1.2% 3,515 19.8% Over $1 Million (Bus)-$500k (Farm) 0 0.0% 0 0.0% 0 0.0% 0 0.0%Total 234,682 100.0% 5,091,369 100.0% 683 100.0% 17,717 100.0%


48

2007 CRA Loan Distribution Table Assessment Area: Collin, Dallas, Denton, Tarrant and Parker Counties

(portion of Dallas-Fort Worth-Arlington MSA)\



Low 8 1.4% 762 0.9% 0 0.0% 0 0.0% Moderate 90 15.5% 19,241 23.0% 0 0.0% 0 0.0% Low/Moderate Total 98 16.9% 20,003 23.9% 0 0.0% 0 0.0% Middle 212 36.6% 26,795 32.1% 33 84.6% 1,600 81.4% Upper 267 46.0% 34,856 41.7% 6 15.4% 366 18.6% Unknown 3 0.5% 1,890 2.3% 0 0.0% 0 0.0%Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0%Total 580 100.0% 83,544 100.0% 39 100.0% 1,966 100.0%

By RevenueTotal $1 Million or Less 289 49.8% 23,710 28.4% 29 74.4% 1,477 75.1% Over $1 Million 131 22.6% 34,440 41.2% 2 5.1% 84 4.3% Not Known 160 27.6% 25,394 30.4% 8 20.5% 405 20.6% Total 580 100.0% 83,544 100.0% 39 100.0% 1,966 100.0%

By Loan Size $100,000 or less 394 67.9% 15,718 18.8% 34 87.2% 718 36.5%$100,001 - $250,000 93 16.0% 15,927 19.1% 3 7.7% 385 19.6% $250,001 - $1 Million (Bus)-$500k (Farm) 93 16.0% 51,899 62.1% 2 5.1% 863 43.9% Over $1 Million (Bus)-$500k (Farm) 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 580 100.0% 83,544 100.0% 39 100.0% 1,966 100.0%

By Loan Size and Revenue $1 Million or Less $100,000 or less 234 81.0% 8,483 35.8% 26 89.7% 489 33.1%$100,001 - $250,000 36 12.5% 5,858 24.7% 1 3.4% 125 8.5% $250,001 - $1 Million (Bus)-$500k (Farm) 19 6.6% 9,369 39.5% 2 6.9% 863 58.4% Over $1 Million (Bus)-$500k (Farm) 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 289 100.0% 23,710 100.0% 29 100.0% 1,477 100.0%


49





Low 7,257 2.8% 205,913 3.5% 13 1.6% 367 1.6%Moderate 46,831 18.3% 1,475,216 24.8% 97 11.7% 2,320 9.9%Low/Moderate Total 54,088 21.1% 1,681,129 28.3% 110 13.3% 2,687 11.4%Middle 79,319 31.0% 1,777,446 29.9% 368 44.3% 11,434 48.6%Upper 115,800 45.2% 2,359,886 39.7% 322 38.8% 8,754 37.2% Unknown 868 0.3% 35,116 0.6% 1 0.1% 82 0.3%Tract Unknown 6,052 2.4% 83,289 1.4% 29 3.5% 580 2.5%Total 256,127 100.0% 5,936,866 100.0% 830 100.0% 23,537 100.0%

By RevenueTotal $1 Million or Less 100,499 39.2% 2,388,949 40.2% 635 76.5% 15,332 65.1%

By Loan Size $100,000 or Less 247,734 96.7% 2,870,629 48.4% 774 93.3% 10,098 42.9% $100,001 - $250,000 4,035 1.6% 711,011 12.0% 34 4.1% 5,677 24.1% $250,001 - $1 Million (Bus)-$500k (Farm) 4,358 1.7% 2,355,226 39.7% 22 2.7% 7,762 33.0% Over $1 Million (Bus)-$500k (Farm) 0 0.0% 0 0.0% 0 0.0% 0 0.0%Total 256,127 100.0% 5,936,866 100.0% 830 100.0% 23,537 100.0%


50

Appendix C Travis and Williamson Counties

(portion of Austin-Round Rock, Texas MSA) Loan Distribution Tables


51

2006 HMDA Loan Distribution Table Assessment Area: Travis and Williamson Counties

(portion of Austin-Round Rock MSA)

Income Categories


# % $(000s) % # % $(000s) % Home Purchase

Low 28 2.4% 3,353 2.3% 68 5.8% 6,713 4.7% Moderate 149 12.7% 17,436 12.1% 298 25.4% 31,846 22.1%Low/Moderate Total 177 15.1% 20,789 14.4% 366 31.1% 38,559 26.8% Middle 590 50.2% 63,711 44.2% 268 22.8% 28,266 19.6%Upper 408 34.7% 59,548 41.3% 473 40.3% 68,396 47.5% Unknown 0 0.0% 0 0.0% 68 5.8% 8,827 6.1% Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 1,175 100.0% 144,048 100.0% 1,175 100.0% 144,048 100.0%

Refinance Low 1 1.6% 214 1.9% 5 7.8% 511 4.6% Moderate 7 10.9% 649 5.9% 6 9.4% 492 4.4%Low/Moderate Total 8 12.5% 863 7.8% 11 17.2% 1,003 9.0%Middle 24 37.5% 2,742 24.7% 9 14.1% 1,125 10.1% Upper 32 50.0% 7,482 67.5% 33 51.6% 7,478 67.4% Unknown 0 0.0% 0 0.0% 11 17.2% 1,481 13.4% Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 64 100.0% 11,087 100.0% 64 100.0% 11,087 100.0%

Home ImprovementLow 0 0.0% 0 0.0% 0 0.0% 0 0.0% Moderate 3 37.5% 162 6.7% 0 0.0% 0 0.0%Low/Moderate Total 3 37.5% 162 6.7% 0 0.0% 0 0.0% Middle 2 25.0% 1,998 83.1% 0 0.0% 0 0.0% Upper 3 37.5% 245 10.2% 5 62.5% 412 17.1% Unknown 0 0.0% 0 0.0% 3 37.5% 1,993 82.9% Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 8 100.0% 2,405 100.0% 8 100.0% 2,405 100.0%

Multi-Family Low 0 0.0% 0 0.0% 0 0.0% 0 0.0%Moderate 1 100.0% 389 100.0% 0 0.0% 0 0.0% Low/Moderate Total 1 100.0% 389 100.0% 0 0.0% 0 0.0% Middle 0 0.0% 0 0.0% 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% 389 100.0% Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0%Total 1 100.0% 389 100.0% 1 100.0% 389 100.0%

HMDA Totals Low 29 2.3% 3,567 2.3% 73 5.8% 7,224 4.6% Moderate 160 12.8% 18,636 11.8% 304 24.4% 32,338 20.5% Low/Moderate Total 189 15.1% 22,203 14.1% 377 30.2% 39,562 25.1% Middle 616 49.4% 68,451 43.3% 277 22.2% 29,391 18.6% Upper 443 35.5% 67,275 42.6% 511 40.9% 76,286 48.3% Unknown 0 0.0% 0 0.0% 83 6.7% 12,690 8.0%Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0%Total 1,248 100.0% 157,929 100.0% 1,248 100.0% 157,929 100.0%


52

Peer Group 2006 HMDA Loan Distribution Table Assessment Area: Travis and Williamson Counties


Income Categories


# % $(000s) % # % $(000s) % Home Purchase

Low 2,320 2.7% 239,115 2.0% 2,663 3.1% 240,986 2.0% Moderate 10,493 12.3% 1,116,665 9.4% 12,821 15.1% 1,304,860 11.0%Low/Moderate Total 12,813 15.1% 1,355,780 11.4% 15,484 18.2% 1,545,846 13.0% Middle 40,300 47.4% 4,622,062 38.9% 16,972 20.0% 1,979,961 16.7%Upper 31,907 37.5% 5,904,544 49.7% 37,034 43.6% 6,422,364 54.0% Unknown 0 0.0% 0 0.0% 15,530 18.3% 1,934,215 16.3% Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0%Total 85,020 100.0% 11,882,386 100.0% 85,020 100.0% 11,882,386 100.0%

RefinanceLow 477 3.3% 56,038 2.3% 715 5.0% 57,529 2.4% Moderate 2,432 16.9% 287,902 11.8% 2,224 15.5% 229,183 9.4% Low/Moderate Total 2,909 20.3% 343,940 14.1% 2,939 20.5% 286,712 11.8% Middle 5,763 40.1% 763,795 31.3% 2,784 19.4% 351,947 14.4% Upper 5,688 39.6% 1,329,253 54.5% 5,716 39.8% 1,325,640 54.4% Unknown 1 0.0% 327 0.0% 2,922 20.3% 473,016 19.4%Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0%Total 14,361 100.0% 2,437,315 100.0% 14,361 100.0% 2,437,315 100.0%

Home Improvement Low 66 2.4% 4,307 2.8% 184 6.7% 5,921 3.8% Moderate 388 14.0% 18,622 11.9% 501 18.1% 18,652 11.9% Low/Moderate Total 454 16.4% 22,929 14.7% 685 24.8% 24,573 15.7% Middle 1,079 39.1% 48,981 31.4% 586 21.2% 26,757 17.1% Upper 1,229 44.5% 84,257 54.0% 1,356 49.1% 94,115 60.3%Unknown 0 0.0% 0 0.0% 135 4.9% 10,722 6.9%Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0%Total 2,762 100.0% 156,167 100.0% 2,762 100.0% 156,167 100.0%

Multi-Family Low 26 19.5% 41,587 10.7% 0 0.0% 0 0.0%Moderate 44 33.1% 70,545 18.1% 0 0.0% 0 0.0% Low/Moderate Total 70 52.6% 112,132 28.8% 0 0.0% 0 0.0%Middle 49 36.8% 200,594 51.4% 0 0.0% 0 0.0%Upper 14 10.5% 77,251 19.8% 0 0.0% 0 0.0%Unknown 0 0.0% 0 0.0% 133 100.0% 389,977 100.0% Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 133 100.0% 389,977 100.0% 133 100.0% 389,977 100.0%

HMDA Totals Low 2,889 2.8% 341,047 2.3% 3,562 3.5% 304,436 2.0% Moderate 13,357 13.1% 1,493,734 10.0% 15,546 15.2% 1,552,695 10.4%Low/Moderate Total 16,246 15.9% 1,834,781 12.3% 19,108 18.7% 1,857,131 12.5%Middle 47,191 46.1% 5,635,432 37.9% 20,342 19.9% 2,358,665 15.9%Upper 38,838 38.0% 7,395,305 49.7% 44,106 43.1% 7,842,119 52.8% Unknown 1 0.0% 327 0.0% 18,720 18.3% 2,807,930 18.9% Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 102,276 100.0% 14,865,845 100.0% 102,276 100.0% 14,865,845 100.0%


53

2007 HMDA Loan Distribution Table Assessment Area: Travis and Williamson Counties


Income Categories


# % $(000s) % # % $(000s) % Home Purchase

Low 25 3.3% 3,035 2.3% 43 5.6% 4,219 3.3% Moderate 75 9.8% 11,035 8.5% 182 23.7% 21,658 16.7%Low/Moderate Total 100 13.0% 14,070 10.8% 225 29.3% 25,877 19.9% Middle 387 50.3% 51,646 39.8% 159 20.7% 22,746 17.5%Upper 282 36.7% 64,002 49.3% 325 42.3% 70,434 54.3% Unknown 0 0.0% 0 0.0% 60 7.8% 10,661 8.2% Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 769 100.0% 129,718 100.0% 769 100.0% 129,718 100.0%

Refinance Low 4 4.4% 756 3.6% 2 2.2% 267 1.3% Moderate 17 18.9% 1,912 9.0% 9 10.0% 1,234 5.8%Low/Moderate Total 21 23.3% 2,668 12.5% 11 12.2% 1,501 7.1%Middle 35 38.9% 6,124 28.8% 20 22.2% 2,668 12.5% Upper 34 37.8% 12,494 58.7% 53 58.9% 15,822 74.3% Unknown 0 0.0% 0 0.0% 6 6.7% 1,295 6.1% Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 90 100.0% 21,286 100.0% 90 100.0% 21,286 100.0%

Home ImprovementLow 1 12.5% 205 6.5% 0 0.0% 0 0.0% Moderate 2 25.0% 669 21.3% 0 0.0% 0 0.0%Low/Moderate Total 3 37.5% 874 27.8% 0 0.0% 0 0.0% Middle 1 12.5% 935 29.7% 0 0.0% 0 0.0% Upper 4 50.0% 1,335 42.5% 4 50.0% 1,335 42.5% Unknown 0 0.0% 0 0.0% 4 50.0% 1,809 57.5% Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 8 100.0% 3,144 100.0% 8 100.0% 3,144 100.0%


HMDA Totals Low 30 3.5% 3,996 2.6% 45 5.2% 4,486 2.9% Moderate 95 10.9% 13,672 8.9% 191 22.0% 22,892 14.8% Low/Moderate Total 125 14.4% 17,668 11.5% 236 27.2% 27,378 17.8% Middle 423 48.7% 58,705 38.1% 179 20.6% 25,414 16.5% Upper 320 36.9% 77,831 50.5% 382 44.0% 87,591 56.8% Unknown 0 0.0% 0 0.0% 71 8.2% 13,821 9.0%Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0%Total 868 100.0% 154,204 100.0% 868 100.0% 154,204 100.0%


54

Peer Group 2007 HMDA Loan Distribution Table Assessment Area: Travis and Williamson Counties


Income Categories


# % $(000s) % # % $(000s) % Home Purchase

Low 1,745 2.5% 228,007 2.0% 2,445 3.6% 241,881 2.1% Moderate 8,434 12.3% 1,110,968 9.8% 11,040 16.1% 1,313,073 11.6% Low/Moderate Total 10,179 14.9% 1,338,975 11.8% 13,485 19.7% 1,554,954 13.7% Middle 32,428 47.4% 4,444,799 39.3% 14,483 21.2% 1,983,382 17.5% Upper 25,840 37.8% 5,529,989 48.9% 30,872 45.1% 6,301,825 55.7%Unknown 0 0.0% 0 0.0% 9,607 14.0% 1,473,602 13.0% Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 68,447 100.0% 11,313,763 100.0% 68,447 100.0% 11,313,763 100.0%

Refinance Low 474 3.1% 66,478 2.3% 671 4.4% 58,713 2.0% Moderate 2,234 14.7% 289,506 10.1% 2,163 14.2% 245,212 8.5%Low/Moderate Total 2,708 17.8% 355,984 12.4% 2,834 18.6% 303,925 10.6% Middle 6,218 40.9% 926,776 32.2% 3,041 20.0% 424,123 14.7% Upper 6,295 41.4% 1,594,561 55.4% 7,065 46.4% 1,716,394 59.7% Unknown 0 0.0% 0 0.0% 2,281 15.0% 432,879 15.0% Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 15,221 100.0% 2,877,321 100.0% 15,221 100.0% 2,877,321 100.0%

Home Improvement Low 79 2.5% 4,020 1.8% 226 7.3% 7,991 3.7% Moderate 465 14.9% 27,587 12.7% 478 15.4% 19,128 8.8%Low/Moderate Total 544 17.5% 31,607 14.5% 704 22.6% 27,119 12.5% Middle 1,177 37.8% 61,818 28.4% 620 19.9% 31,856 14.7% Upper 1,390 44.7% 124,003 57.0% 1,670 53.7% 148,715 68.4% Unknown 0 0.0% 0 0.0% 117 3.8% 9,738 4.5% Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 3,111 100.0% 217,428 100.0% 3,111 100.0% 217,428 100.0%

Multi-Family Low 14 9.7% 84,284 13.6% 0 0.0% 0 0.0% Moderate 55 37.9% 155,067 25.1% 0 0.0% 0 0.0% Low/Moderate Total 69 47.6% 239,351 38.7% 0 0.0% 0 0.0% Middle 58 40.0% 279,469 45.2% 0 0.0% 0 0.0% Upper 18 12.4% 99,031 16.0% 0 0.0% 0 0.0% Unknown 0 0.0% 0 0.0% 145 100.0% 617,851 100.0% Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 145 100.0% 617,851 100.0% 145 100.0% 617,851 100.0%

HMDA Totals Low 2,312 2.7% 382,789 2.5% 3,342 3.8% 308,585 2.1% Moderate 11,188 12.9% 1,583,128 10.5% 13,681 15.7% 1,577,413 10.5% Low/Moderate Total 13,500 15.5% 1,965,917 13.1% 17,023 19.6% 1,885,998 12.6% Middle 39,881 45.9% 5,712,862 38.0% 18,144 20.9% 2,439,361 16.2% Upper 33,543 38.6% 7,347,584 48.9% 39,607 45.6% 8,166,934 54.4% Unknown 0 0.0% 0 0.0% 12,150 14.0% 2,534,070 16.9% Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0%Total 86,924 100.0% 15,026,363 100.0% 86,924 100.0% 15,026,363 100.0%


55

2006 CRA Loan Distribution Table Assessment Area: Travis and Williamson Counties









56


Assessment Area: Travis and Williamson Counties (portion of Austin-Round Rock MSA)

SMALL BUSINESS SMALL FARM


Low 2,000 3.2% 43,535 3.2% 5 1.6% 51 0.5%Moderate 8,861 14.1% 215,655 15.9% 39 12.2% 881 9.3%Low/Moderate Total 10,861 17.2% 259,190 19.1% 44 13.8% 932 9.9%Middle 22,841 36.2% 482,745 35.5% 174 54.4% 5,174 54.9%Upper 27,727 44.0% 592,944 43.6% 92 28.8% 3,211 34.1% Unknown 33 0.1% 747 0.1% 0 0.0% 0 0.0%Tract Unknown 1,593 2.5% 23,322 1.7% 10 3.1% 111 1.2%Total 63,055 100.0% 1,358,948 100.0% 320 100.0% 9,428 100.0%

By RevenueTotal $1 Million or Less 24,976 39.6% 629,047 46.3% 255 79.7% 7,121 75.5%

By Loan Size $100,000 or Less 61,128 96.9% 673,003 49.5% 301 94.1% 5,374 57.0% $100,001 - $250,000 985 1.6% 172,955 12.7% 14 4.4% 2,253 23.9% $250,001 - $1 Million (Bus)-$500k (Farm) 942 1.5% 512,990 37.7% 5 1.6% 1,801 19.1% Over $1 Million (Bus)-$500k (Farm) 0 0.0% 0 0.0% 0 0.0% 0 0.0%Total 63,055 100.0% 1,358,948 100.0% 320 100.0% 9,428 100.0%


57

2007 CRA Loan Distribution Table Assessment Area: Travis and Williamson Counties









58


Assessment Area: Travis and Williamson Counties (portion of Austin-Round Rock MSA)



Low 2,325 3.2% 52,244 3.3% 1 0.3% 20 0.2% Moderate 9,768 13.5% 223,794 14.1% 34 11.2% 640 7.8%Low/Moderate Total 12,093 16.7% 276,038 17.4% 35 11.5% 660 8.0%Middle 26,188 36.2% 566,311 35.7% 167 54.9% 5,542 67.3% Upper 32,026 44.3% 708,273 44.7% 90 29.6% 1,840 22.3% Unknown 25 0.0% 1,208 0.1% 0 0.0% 0 0.0% Tract Unknown 1,974 2.7% 33,320 2.1% 12 3.9% 196 2.4% Total 72,306 100.0% 1,585,150 100.0% 304 100.0% 8,238 100.0%


By Loan Size$100,000 or Less 70,202 97.1% 827,015 52.2% 283 93.1% 4,528 55.0% $100,001 - $250,000 1,006 1.4% 174,436 11.0% 20 6.6% 3,448 41.9%$250,001 - $1 Million (Bus)-$500k (Farm) 1,098 1.5% 583,699 36.8% 1 0.3% 262 3.2% Over $1 Million (Bus)-$500k (Farm) 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 72,306 100.0% 1,585,150 100.0% 304 100.0% 8,238 100.0%


59

Appendix D Bexar County

(portion of San Antonio, Texas MSA) Loan Distribution Tables


60

Assessment Area Demographics Assessment Area: San Antonio - Bexar



Families by Tract


Tract Distribution

Income Categories

# # # # %% %%Low-income 12 8,849 3,582 76,474 4.3 2.5 40.5 22.0

Moderate-income 114 132,499 28,927 63,068 41.0 38.1 21.8 18.1

Middle-income 79 97,944 8,434 70,323 28.4 28.2 8.6 20.2

Upper-income 70 108,631 3,113 138,058 25.2 31.2 2.9 39.7

Unknown-income 3 0 0 0 1.1 0.0 0.0 0.0




# # # %% %%Low-income 14,277 5,792 6,724 1,761 1.9 40.6 47.1 12.3

Moderate-income 197,946 103,264 80,732 13,950 34.5 52.2 40.8 7.0

Middle-income 154,252 80,264 64,725 9,263 26.8 52.0 42.0 6.0

Upper-income 154,793 109,816 37,580 7,397 36.7 70.9 24.3 4.8

Unknown-income 91 35 10 46 0.0 38.5 11.0 50.5



Over $1 Million




# # # #% % % %Low-income 1,345 1,151 150 44 2.3 3.9 2.7 2.4

Moderate-income 18,085 16,119 1,298 668 31.7 33.6 40.4 32.1

Middle-income 15,778 14,135 1,185 458 27.8 30.6 27.7 28.0

Upper-income 20,926 19,236 1,210 480 37.9 31.3 29.0 37.2

Unknown-income 173 145 24 4 0.3 0.6 0.2 0.3


100.0 100.0 100.0 100.0

90.2 6.9 2.9

56,307 50,786 3,867 1,654



61

2006 HMDA Loan Distribution Table Assessment Area: Bexar County

(portion of San Antonio MSA)

Income Categories


# % $(000s) % # % $(000s) % Home Purchase

Low 3 0.4% 273 0.3% 24 2.9% 1,854 1.8% Moderate 165 19.9% 14,812 14.7% 176 21.2% 17,457 17.3%Low/Moderate Total 168 20.2% 15,085 14.9% 200 24.1% 19,311 19.1% Middle 342 41.2% 37,144 36.8% 230 27.7% 24,528 24.3%Upper 321 38.6% 48,818 48.3% 342 41.2% 51,571 51.0% Unknown 0 0.0% 0 0.0% 59 7.1% 5,637 5.6% Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 831 100.0% 101,047 100.0% 831 100.0% 101,047 100.0%

Refinance Low 0 0.0% 0 0.0% 2 4.7% 123 1.8% Moderate 6 14.0% 694 10.2% 4 9.3% 287 4.2%Low/Moderate Total 6 14.0% 694 10.2% 6 14.0% 410 6.0%Middle 7 16.3% 491 7.2% 3 7.0% 304 4.5% Upper 30 69.8% 5,645 82.7% 30 69.8% 5,601 82.0% Unknown 0 0.0% 0 0.0% 4 9.3% 515 7.5% Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 43 100.0% 6,830 100.0% 43 100.0% 6,830 100.0%

Home ImprovementLow 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 0 0.0% 0 0.0% 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% 0 0.0% 0 0.0% Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 0 0.0% 0 0.0% 0 0.0% 0 0.0%


HMDA Totals Low 3 0.3% 273 0.3% 26 3.0% 1,977 1.8% Moderate 171 19.6% 15,506 14.4% 180 20.6% 17,744 16.4% Low/Moderate Total 174 19.9% 15,779 14.6% 206 23.6% 19,721 18.3% Middle 349 39.9% 37,635 34.9% 233 26.7% 24,832 23.0% Upper 351 40.2% 54,463 50.5% 372 42.6% 57,172 53.0% Unknown 0 0.0% 0 0.0% 63 7.2% 6,152 5.7%Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0%Total 874 100.0% 107,877 100.0% 874 100.0% 107,877 100.0%


62


Assessment Area: Bexar County (portion of San Antonio MSA)

Income Categories

By Tract Income By Borrower Income

# % $(000s) % # % $(000s) % Home Purchase

Low 340 0.5% 19,562 0.2% 1,823 2.6% 117,701 1.5%Moderate 10,113 14.3% 741,813 9.3% 8,323 11.8% 673,474 8.4%Low/Moderate Total 10,453 14.8% 761,375 9.5% 10,146 14.4% 791,175 9.9%Middle 19,628 27.8% 1,791,954 22.4% 14,776 21.0% 1,465,196 18.3%Upper 40,378 57.3% 5,425,417 67.9% 32,890 46.7% 4,469,535 56.0% Unknown 30 0.0% 6,283 0.1% 12,677 18.0% 1,259,123 15.8% Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 70,489 100.0% 7,985,029 100.0% 70,489 100.0% 7,985,029 100.0%

Refinance Low 191 1.2% 9,648 0.6% 938 6.1% 51,456 3.0%Moderate 4,134 26.8% 276,642 16.0% 2,221 14.4% 154,800 9.0%Low/Moderate Total 4,325 28.0% 286,290 16.6% 3,159 20.5% 206,256 11.9% Middle 4,068 26.4% 343,435 19.9% 2,977 19.3% 254,580 14.7% Upper 7,041 45.6% 1,097,664 63.5% 6,159 39.9% 914,623 52.9% Unknown 1 0.0% 33 0.0% 3,140 20.3% 351,963 20.4%Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0%Total 15,435 100.0% 1,727,422 100.0% 15,435 100.0% 1,727,422 100.0%

Home ImprovementLow 74 1.8% 1,707 1.0% 447 10.6% 10,022 5.9% Moderate 1,273 30.1% 38,743 22.9% 751 17.8% 20,793 12.3% Low/Moderate Total 1,347 31.9% 40,450 23.9% 1,198 28.4% 30,815 18.2% Middle 1,048 24.8% 35,884 21.2% 892 21.1% 28,587 16.9% Upper 1,830 43.3% 92,911 54.9% 2,035 48.2% 105,001 62.0% Unknown 0 0.0% 0 0.0% 100 2.4% 4,842 2.9%Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0%Total 4,225 100.0% 169,245 100.0% 4,225 100.0% 169,245 100.0%

Multi-Family Low 5 6.1% 1,241 0.5% 0 0.0% 0 0.0% Moderate 43 52.4% 80,512 32.2% 0 0.0% 0 0.0% Low/Moderate Total 48 58.5% 81,753 32.6% 0 0.0% 0 0.0% Middle 24 29.3% 80,385 32.1% 0 0.0% 0 0.0% Upper 10 12.2% 88,269 35.3% 0 0.0% 0 0.0%Unknown 0 0.0% 0 0.0% 82 100.0% 250,407 100.0%Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 82 100.0% 250,407 100.0% 82 100.0% 250,407 100.0%

HMDA Totals Low 610 0.7% 32,158 0.3% 3,208 3.6% 179,179 1.8%Moderate 15,563 17.2% 1,137,710 11.2% 11,295 12.5% 849,067 8.4% Low/Moderate Total 16,173 17.9% 1,169,868 11.5% 14,503 16.1% 1,028,246 10.1%Middle 24,768 27.4% 2,251,658 22.2% 18,645 20.7% 1,748,363 17.3%Upper 49,259 54.6% 6,704,261 66.2% 41,084 45.5% 5,489,159 54.2%Unknown 31 0.0% 6,316 0.1% 15,999 17.7% 1,866,335 18.4% Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0%Total 90,231 100.0% 10,132,103 100.0% 90,231 100.0% 10,132,103 100.0%


63

2007 HMDA Loan Distribution Table Assessment Area: Bexar County


Income Categories


# % $(000s) % # % $(000s) % Home Purchase

Low 5 1.1% 285 0.4% 17 3.7% 1,042 1.5% Moderate 87 19.0% 9,355 13.3% 82 17.9% 8,780 12.5%Low/Moderate Total 92 20.1% 9,640 13.7% 99 21.7% 9,822 14.0% Middle 142 31.1% 17,143 24.4% 123 26.9% 13,808 19.7%Upper 223 48.8% 43,375 61.8% 216 47.3% 44,475 63.4% Unknown 0 0.0% 0 0.0% 19 4.2% 2,053 2.9% Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 457 100.0% 70,158 100.0% 457 100.0% 70,158 100.0%

Refinance Low 2 3.4% 141 1.6% 3 5.2% 182 2.0% Moderate 14 24.1% 1,442 15.9% 6 10.3% 590 6.5%Low/Moderate Total 16 27.6% 1,583 17.4% 9 15.5% 772 8.5%Middle 12 20.7% 1,310 14.4% 12 20.7% 1,340 14.7% Upper 30 51.7% 6,202 68.2% 33 56.9% 6,550 72.0% Unknown 0 0.0% 0 0.0% 4 6.9% 433 4.8% Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 58 100.0% 9,095 100.0% 58 100.0% 9,095 100.0%

Home ImprovementLow 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 0 0.0% 0 0.0% 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% 0 0.0% 0 0.0% Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 0 0.0% 0 0.0% 0 0.0% 0 0.0%


HMDA Totals Low 7 1.4% 426 0.5% 20 3.9% 1,224 1.5% Moderate 101 19.6% 10,797 13.6% 88 17.1% 9,370 11.8% Low/Moderate Total 108 21.0% 11,223 14.2% 108 21.0% 10,594 13.4% Middle 154 29.9% 18,453 23.3% 135 26.2% 15,148 19.1% Upper 253 49.1% 49,577 62.6% 249 48.3% 51,025 64.4% Unknown 0 0.0% 0 0.0% 23 4.5% 2,486 3.1%Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0%Total 515 100.0% 79,253 100.0% 515 100.0% 79,253 100.0%


64



Income Categories


# % $(000s) % # % $(000s) % Home Purchase

Low 253 0.5% 16,541 0.2% 1,410 2.6% 99,425 1.3% Moderate 7,843 14.4% 701,687 9.3% 6,941 12.7% 668,757 8.9%Low/Moderate Total 8,096 14.8% 718,228 9.5% 8,351 15.3% 768,182 10.2% Middle 13,729 25.2% 1,529,240 20.2% 12,383 22.7% 1,496,069 19.8%Upper 32,732 60.0% 5,303,602 70.2% 25,455 46.6% 4,234,558 56.0% Unknown 12 0.0% 4,015 0.1% 8,380 15.4% 1,056,276 14.0%Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0%Total 54,569 100.0% 7,555,085 100.0% 54,569 100.0% 7,555,085 100.0%

RefinanceLow 145 0.9% 8,529 0.4% 749 4.8% 44,097 2.2% Moderate 3,589 22.9% 265,270 13.4% 2,168 13.9% 162,948 8.3% Low/Moderate Total 3,734 23.9% 273,799 13.9% 2,917 18.7% 207,045 10.5% Middle 4,003 25.6% 367,624 18.6% 3,109 19.9% 288,869 14.6% Upper 7,901 50.5% 1,330,474 67.5% 7,147 45.7% 1,154,249 58.5%Unknown 2 0.0% 514 0.0% 2,467 15.8% 322,248 16.3%Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 15,640 100.0% 1,972,411 100.0% 15,640 100.0% 1,972,411 100.0%

Home Improvement Low 49 1.1% 1,297 0.7% 384 8.8% 9,167 4.7% Moderate 1,217 27.9% 41,733 21.3% 745 17.1% 23,502 12.0% Low/Moderate Total 1,266 29.0% 43,030 22.0% 1,129 25.9% 32,669 16.7% Middle 1,129 25.9% 43,243 22.1% 937 21.5% 33,107 16.9%Upper 1,972 45.2% 109,696 56.0% 2,225 51.0% 125,634 64.1%Unknown 0 0.0% 0 0.0% 76 1.7% 4,559 2.3% Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0%Total 4,367 100.0% 195,969 100.0% 4,367 100.0% 195,969 100.0%

Multi-Family Low 4 4.8% 3,040 0.7% 0 0.0% 0 0.0% Moderate 34 40.5% 92,320 21.9% 0 0.0% 0 0.0%Low/Moderate Total 38 45.2% 95,360 22.7% 0 0.0% 0 0.0%Middle 25 29.8% 120,246 28.6% 0 0.0% 0 0.0%Upper 21 25.0% 205,112 48.8% 0 0.0% 0 0.0%Unknown 0 0.0% 0 0.0% 84 100.0% 420,718 100.0% Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 84 100.0% 420,718 100.0% 84 100.0% 420,718 100.0%

HMDA TotalsLow 451 0.6% 29,407 0.3% 2,543 3.4% 152,689 1.5%Moderate 12,683 17.0% 1,101,010 10.9% 9,854 13.2% 855,207 8.4%Low/Moderate Total 13,134 17.6% 1,130,417 11.1% 12,397 16.6% 1,007,896 9.9%Middle 18,886 25.3% 2,060,353 20.3% 16,429 22.0% 1,818,045 17.9% Upper 42,626 57.1% 6,948,884 68.5% 34,827 46.6% 5,514,441 54.4% Unknown 14 0.0% 4,529 0.0% 11,007 14.7% 1,803,801 17.8%Tract Unknown 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 74,660 100.0% 10,144,183 100.0% 74,660 100.0% 10,144,183 100.0%


65

2006 CRA Loan Distribution Table Assessment Area: Bexar County




Low 0 0.0% 0 0.0% 0 0.0% 0 0.0% Moderate 16 32.7% 2,032 29.6% 0 0.0% 0 0.0% Low/Moderate Total 16 32.7% 2,032 29.6% 0 0.0% 0 0.0% Middle 2 4.1% 1,050 15.3% 0 0.0% 0 0.0% Upper 31 63.3% 3,792 55.2% 1 100.0% 114 100.0% 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 49 100.0% 6,874 100.0% 1 100.0% 114 100.0%

By RevenueTotal $1 Million or Less 21 42.9% 3,647 53.1% 0 0.0% 0 0.0% Over $1 Million 25 51.0% 3,042 44.3% 1 100.0% 114 100.0% Not Known 3 6.1% 185 2.7% 0 0.0% 0 0.0% Total 49 100.0% 6,874 100.0% 1 100.0% 114 100.0%


By Loan Size and Revenue $1 Million or Less $100,000 or less 8 38.1% 274 7.5% 0 0.0% 0 0.0%$100,001 - $250,000 9 42.9% 1,523 41.8% 0 0.0% 0 0.0% $250,001 - $1 Million (Bus)-$500k (Farm) 4 19.0% 1,850 50.7% 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 21 100.0% 3,647 100.0% 0 0.0% 0 0.0%


66



Income Categories

SMALL BUSINESS SMALL FARM


Low 882 1.7% 32,509 2.5% 2 1.2% 29 0.4%Moderate 12,724 24.8% 355,486 27.2% 38 23.0% 1,763 25.3% Low/Moderate Total 13,606 26.5% 387,995 29.7% 40 24.2% 1,792 25.7% Middle 13,584 26.5% 337,319 25.8% 36 21.8% 1,165 16.7%Upper 23,295 45.4% 567,222 43.3% 81 49.1% 3,578 51.4% Unknown 103 0.2% 6,378 0.5% 1 0.6% 300 4.3% Tract Unknown 705 1.4% 9,663 0.7% 7 4.2% 126 1.8%Total 51,293 100.0% 1,308,577 100.0% 165 100.0% 6,961 100.0%


By Loan Size$100,000 or Less 49,055 95.6% 515,829 39.4% 148 89.7% 2,285 32.8% $100,001 - $250,000 1,102 2.1% 196,157 15.0% 10 6.1% 1,894 27.2%$250,001 - $1 Million (Bus)-$500k (Farm) 1,136 2.2% 596,591 45.6% 7 4.2% 2,782 40.0%Over $1 Million (Bus)-$500k (Farm) 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 51,293 100.0% 1,308,577 100.0% 165 100.0% 6,961 100.0%


67

2007 CRA Loan Distribution Table Assessment Area: Bexar County




Low 0 0.0% 0 0.0% 0 0.0% 0 0.0% Moderate 23 36.5% 2,138 30.0% 0 0.0% 0 0.0% Low/Moderate Total 23 36.5% 2,138 30.0% 0 0.0% 0 0.0% Middle 6 9.5% 737 10.3% 0 0.0% 0 0.0% Upper 34 54.0% 4,260 59.7% 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 63 100.0% 7,135 100.0% 0 0.0% 0 0.0%

By RevenueTotal $1 Million or Less 26 41.3% 3,659 51.3% 0 0.0% 0 0.0% Over $1 Million 37 58.7% 3,476 48.7% 0 0.0% 0 0.0% Not Known 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total 63 100.0% 7,135 100.0% 0 0.0% 0 0.0%


By Loan Size and Revenue $1 Million or Less $100,000 or less 16 61.5% 674 18.4% 0 0.0% 0 0.0%$100,001 - $250,000 7 26.9% 1,355 37.0% 0 0.0% 0 0.0% $250,001 - $1 Million (Bus)-$500k (Farm) 3 11.5% 1,630 44.5% 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 26 100.0% 3,659 100.0% 0 0.0% 0 0.0%


68



Income Category SMALL BUSINESS SMALL FARM


Low 901 1.6% 35,113 2.5% 1 0.5% 5 0.1%Moderate 13,728 24.5% 383,836 27.0% 48 24.9% 2,832 35.5%Low/Moderate Total 14,629 26.1% 418,949 29.5% 49 25.4% 2,837 35.5%Middle 14,340 25.6% 378,501 26.7% 32 16.6% 196 2.5%Upper 25,919 46.3% 603,814 42.5% 108 56.0% 4,842 60.6% Unknown 112 0.2% 6,188 0.4% 0 0.0% 0 0.0% Tract Unknown 951 1.7% 12,173 0.9% 4 2.1% 112 1.4%Total 55,951 100.0% 1,419,625 100.0% 193 100.0% 7,987 100.0%


By Loan Size$100,000 or Less 53,707 96.0% 609,267 42.9% 173 89.6% 2,667 33.4% $100,001 - $250,000 1,087 1.9% 193,566 13.6% 10 5.2% 1,673 20.9%$250,001 - $1 Million (Bus)-$500k (Farm) 1,157 2.1% 616,792 43.4% 10 5.2% 3,647 45.7% Over $1 Million (Bus)-$500k (Farm) 0 0.0% 0 0.0% 0 0.0% 0 0.0%Total 55,951 100.0% 1,419,625 100.0% 193 100.0% 7,987 100.0%


69

Appendix E

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/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 their physical size varies widely depending upon population density. Census tracts are designed to be homogeneous with respect to the 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 target 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, 2007, the Board of Governors of the Federal Reserve System, Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation 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, Federal Deposit Insurance Corporation, 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.


70

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 non-relatives 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 refinancing 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 household 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 other 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


71

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. Middle-income: Individual income that is at least 80 percent and less that 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.

public disclosure community reinvestment act …owned subsidiary of plainscapital corporation (pcc),...

Documents