R-02-04RESOLUTION NO. R- 0 2 - 0 4
AUTHORIZING THE MAYOR TO SIGN AN AGREEMENT TO
PROVIDE BANKING SERVICES WITH FIRSTAR BANK
WHEREAS, the Village of Deerfield issued a request for proposals to provide banking services on
February 5, 2002; and
WHEREAS, three proposals were received from banks doing business within the Village on
February 15; and
WHEREAS, Village staff has analyzed the proposals and recommended that the banking services
described in the request for proposal be provided by Firstar Bank; and
WHEREAS, the President and Board of Trustees of the Village of Deerfield have determined that it
is in the best interests of the Village of Deerfield that the proposal by Firstar Bank to provide banking
services be accepted.
NOW, THEREFORE, BE IT RESOLVED BY THE PRESIDENT AND BOARD OF
TRUSTEES OF THE VILLAGE OF DEERFIELD, LAKE AND COOK COUNTIES, ILLINOIS,
in the exercise of its home rule powers, that the proposal of Firstar Bank to provide banking services for the
Village of Deerfield dated February 15, 2002, is hereby accepted.
BE IT FURTHER RESOLVED, that the Mayor is hereby authorized and directed to sign an
agreement, attached, to provide banking services with Firstar Bank.
ADOPTED this 4th day of March , 2002.
Dn�on+hnl Qoirlcn cwnncnn Wvl in !r, l
Treasury Management Services
Proposal
Prepared For
VILLAGE OF DEERFIELD
Presented To
MR ROBERT FIALKOWSKI
FINANCE DIRECTOR
Presented By
JAMES E. BELMONT, JR.
ASIF U KAHN
PETER J. SPECA
February 15, 2002
For competitive reasons, we respec�lly request that none of the material or data
contained in this proposal be duplicated, used, or disclosed in whole or in part
for any purpose other than to evaluate this bid.
FIRSTAR PROPOSAL FOR
VILLAGE OF DEERFIELD
TABLE OF CONTENTS
PROPOSAL FOR BANKING SERVICES
EXHIBIT A - PRICING
EXHIBIT A -1- ADDITIONAL INFORMATION REQUESTED
EXHIBIT A -2 - CALCULATIONS
EXHIBIT A -3 - REFERENCES AND QUALIFICATIONS
EXHIBIT B - EXCEPTION FORM
EXHIBIT C - COMMUNITY REINVESTMENT ACT
EXHIBIT F - AGREEMENT
CERTIFICATION
OTHER APPLICABLE PRICING
PRODUCT SHEETS
AVAILABILITY SCHEDULE
WIRE TRANSFER AGREEMENT
CRA SUPPORTING INFORMATION
FIRSTAR ANNUAL REPORTS (ONE COPY)
*FIRSTAR
Bank Without Boundaries
February 15, 2002
Mr. Robert Fialkowski
Finance Director
Village of Deerfield
850 Waukegan Road
Deerfield 11L 60015
Dear Mr. Fialkowski:
Firstar Bank is pleased to submit a response to this request for proposal for depository
and other banking services to the Village of Deerfield. We sincerely appreciate being
included among the banks receiving your request and believe we have the ability to
provide the quality of service your office expects and deserves.
Who are we? On February 27, 2001 — Firstar Corporation and U.S. Bancorp announced
the completion of their merger, creating the nation's 8�h largest financial services holding
company with assets in'excess of $160 billion.
Jerry A. Grundhofer, who served as president and chief executive officer of Firstar
Corporation, serves as president and chief executive officer of the new U.S. Bancorp.
John F. Grundhofer, former chairman, president, and chief executive office of U.S.
Bancorp will serve as chairman until his retirement at the end of 2002. The new U.S.
Bancorp is headquartered in Minneapolis and trades on the New York Stock Exchange
under the symbol "USB ".
Overall, the new U.S. Bancorp has approximately 10 million customers and 2,239
banking branches in 24 states. The new U.S. Bancorp:
Has a market capitalization of nearly $45 billion, ranking fifth.
Has the third largest branch network in the U.S.
Operates the fourth largest ATM network with 5,200 branded ATM's.
Ranks first in commercial card transactions and volume.
Ranks fourth in SBA lending.
Top three providers of Corporate Trust Services with $675B in corporate assets.
Ranks sixth in debt card purchase volume.
Is the fourth largest provider of home equity loans
Has $50B in mutual fund assets and $116B in other assets under management.
Our mission: The new U.S. Bancorp will continue the tradition of relentless pursuit of
building the best banking company in America. This banking organization, as its
predecessor, will deliver first -class financial products and guaranteed customer service
through our Five Star Service Guarantee. This program promises that core service
standards will be met every time and if not, we'll credit the Village's account with a
service guarantee award of up to $25.00.
A winning combination: Demonstrated through our people and our current customers,
the success of the Village of Deerfield's relationship with U.S. Bank resides with the
following named account executives.
Mr. James E. Belmont, Jr
Vice President
700 Deerfield Road
Deerfield IL 60015
Phone: 847 - 948 -6380
Fax : 847 - 945 -7150
Client references:
Mr. Brad Loscher
City of Springfield
Municipal Center West
300 South Seventh Street
Springfield, IL 62701 -1687
Phone: 217- 789 -2224
Fax: 217- 789 -2297
Mr. Asif U. Khan
Branch Manager
700 Deerfield Road
Deerfield IL 60015
Phone: 847 - 948 -6003
Fax :847- 945 -1216
Mr. Brian Barnes
City of Bloomington
109 East Olive Street
Bloomington, IL 61701
Phone: 309 - 434 -2233
Fax: 309 - 434 -2802
Mr. Peter J. Speca
Vice President
9575 W. Higgins Rd.
Rosemont IL 60018
Phone: 847 - 318 -6353
Fax :847- 696 -9437
Mr. Ron Hill
Town of Normal
100 East Phoenix Ave
Normal, IL 61761
Phone: 309 - 454 -9510
Fax: 309 - 454 -9609
As our proposal will reveal, it is the Bank's desire to assist the Village of Deerfield in
meeting their treasury management objectives by recommending the appropriate
technology and offering value -added services. We welcome a forum to discuss this
proposal further with your office. Thank you again for your consideration and the
opportunity to be your banking services provider. We appreciate the occasions on which
we have served your office in the past and look forward to your decision.
Respectfully submitted,
Mr. James E. Belmont, Jr.
Vice President
Firstar Bank
*FIRSTAR
Bank Without Boundaries
February 15, 2002
Mr. Robert Fialkowski
Finance Director
Village of Deerfield
850 Waukegan Road
Deerfield IL 60015
Dear Mr. Fialkowski:
Firstar Bank is pleased to submit a response to this request for proposal for depository and other
banking services to the Village of Deerfield. We have followed the preferred format as directed
by the Village and noted our exceptions in Exhibit B as requested. However, I wanted to call to
your attention a slightly different structure unique to Firstar that would more effectively utilize
your idle cash balances and minimize your service charges.
As you may know, Firstar is the primary bank for the State of Illinois Treasurer's Office and the
Illinois Public Treasurer's Investment Pool. Therefore, all of the Treasury Management tools
that you can use on a Firstar account can also be used for an Illinois Funds account.
We propose that your disbursement accounts (the General Disbursement Account and the Payroll
Account) be opened as Illinois Funds Accounts. When checks are written on these disbursement
accounts the funds can be transferred from your Firstar account with a simply PC application or
over the phone using an interactive response unit. Therefore, you would be able to receive actual
Illinois Funds interest rates on the idle balances in the disbursement accounts while maintaining
the depository relationship at Firstar were we could continue to process your over the counter
transactions and lockbox services.
Lastly, the compensating balance account could be eliminated because those balances could also
be held at the Illinois Funds and Firstar could direct debit your account for service charges on a
monthly or quarterly basis. Using this technique, our total proposed annual service charges
would decrease to approximately $10,000.00 and the balances invested in the Illinois Funds to
offset service charges would be $474,729.10 (based on the December interest rate of 2.066 %).
This is an advantage and structure only Firstar can offer and we hope you are able to seriously
consider this alternative proposal. Please call me directly with any questions or comments.
spectfully sub 'tted,
JIVAfE. Belmont, Jr.
Vice President
Firstar Bank
PROPOSAL FOR BANKING SERVICES
VILLAGE OF DEERFIELD
02/15/02
Proposal Submitted By:
Bank: Firstar Bank, N.A.
Address: 700 Deerfield Road, Deerfield 11L 60015
Telephone: (847) 948 -6003
Facsimile Number: (847) 945 -1216
This proposal contains all the information requested in the Request for Proposal, including the
following exhibits:
Exhibit A Consolidated Proposal Form
Exhibit A -1 Additional Information Requested
Exhibit A -2 Calculation Supporting "Balance Required to Support $1.00 of Services"
Exhibit A -3 Additional Bank Information
Exhibit B Exceptions to the Proposal
Sample Lockbox Agreement
Certification
Banks Audited Financial Statements for the previous two years (submit only one set)
James E. Belmont, Jr. Asif U. Kahn
Typed Name
Vice President Branch Manager
Title
Febni = 1512002
Date
1
VILLAGE OF DEERFIELD BANKING SERVICES
PROPOSAL FORM
EXHIBIT A
Bank: Firstar Bank, N.A.
Total Proposed $
Average Monthly Amount (Total =12) $
Balance Required to Support $1.00 of Services (Exhibit A -2) $
Required Monthly Compensating Balance $
2
02/15/021
Annual Service
Charges
$240.00
$282.00
$25.00
$575.00
$72.00
$480.00
120.00
N/A
$144.00
$192.00
$96.00
$144.00
$156.00
$180.00
$.24
$54.00
360.00
$660.00
$6,720.00
See
attached
$10,500.24
$875.02
$661.47
578,786.25
Estimated
Charge
Bank Depository Services
Annual Volume
Per Item
Account Maintenance (4 accounts)
48
5.00
Checks Paid
4,700
.06
Items Deposited (non - lockbox)
Drawn on Bank
500
.05
Foreign
11,500
.05
Number of Deposit Slips Processed
360
.20
Returned Checks - Charged to Account
120
4.00
Stop Payments
12
10.00
Bulk Coin Counting
52
N/A
Wire Transfers:
6.00
Incoming
24
Outgoing
24
8.00
ACH Transactions:
1,200
.08
Incoming
Outgoing
1,800
.08
Bank Transfers Between Accounts - Daily
52
3.00
Daily Balance Reporting - PC
260
N/A
Returned Checks Sorted
24
.01
FDIC Assessment per $1,000 ($500,000
balance). .027 per $1,000 per quarter
Other Services
PC Banking Software monthly maintenance
12
30.00
Lockbox Monthly Charge
12
55.00
Lockbox per item processed
21,000
.32
Other costs (itemize on separate attachment,
See
See
if necessary)
attached
attached
Total Proposed $
Average Monthly Amount (Total =12) $
Balance Required to Support $1.00 of Services (Exhibit A -2) $
Required Monthly Compensating Balance $
2
02/15/021
Annual Service
Charges
$240.00
$282.00
$25.00
$575.00
$72.00
$480.00
120.00
N/A
$144.00
$192.00
$96.00
$144.00
$156.00
$180.00
$.24
$54.00
360.00
$660.00
$6,720.00
See
attached
$10,500.24
$875.02
$661.47
578,786.25
VILLAGE OF DEERFIELD BANKING SERVICES
PROPOSAL FORM
EXHIBIT A -1
Additional Information Requested
02/15/02
1. The Village is interested in possible future receipt of scanned images of cleared checks
and other bank documents in an optical media format (CD or other). Please provide a brief
description of your bank's capabilities and services offered to this end. Provide a detailed
description of the bank's PC based banking software products. Please include common
features and functionality along with security features that will ensure protection of Village
assets.
Scanned Images of Cleared Checks
Firstar's IMAGE Archive and ImageView
...state -of -the -art sollware for storing and researching paid check images on CD -ROM coupled with the power of
internet access to intracycle images
Find checks quickly and speed your response time
Image Archive and ImageView help you respond quickly to payment inquiries from vendors, employees, and
customers. You can search for paid checks by any of the following:
■ check serial number
• amount
• account number
• paid date
Instantly access images that are crisp, clear, and easy to maneuver
In moments, you can bring a check on screen to look at signatures and endorsements, the bank of first deposit, and
MICR encoding.
• Turn the check over to view its back
• Zoom in on any area
• Rotate the entire image
• Print both the back and front of the check
• Copy and paste images into word processing documents
Take advantage of the additional benefits of ImageView intracycle access
Utilizing the internet, you can quickly and easily retrieve your paid check images between CD-
ROM creation cycles.
• Accelerate your paid check inquiries and improve your customer service response time
• Eliminate the need to request photocopies
• Search, view back and front of check, print, copy and paste into other documents
l
1
3
Reduce your storage costs
Storage of paid checks on CD -ROM eliminates the need to store physical items. Each CD -ROM holds up to
20,000 business -size check images.
We offer:
• Easy -to -use software you install right on your PC
• The ability to create a cumulative index that makes it easy to search across several statement cycles
• Monthly, bi- monthly, weekly or daily CD -ROM deliveries to coincide with your. Checking Account Statement
cycle or your Account Reconciliation cycle
• Readily available internet access compatible with Microsoft Internet Explorer or Netscape Navigator
Save on equipment and sorting fees
Image Archive software is Windows -based and uses standard PC hardware; you don't need to buy expensive
microfilm or microfiche research equipment. All checks are truncated at the bank, so there is no need for
expensive storage space to keep your paid checks.
Firstar's POSITIVE PAY
... enhanced fraud protection through an automated review of checks prior to payment
Help protect yourself from fraud with an automatic review of presented checks
Each day that checks are issued, you transmit a file to Firstar containing all register information for those items.
As checks are presented for payment, we compare them to the files you have provided. We pay all checks that
match the files and, by 10:30 a.m., produce an exception report listing any unmatched items.
Make informed decisions about exception items
After reviewing the unmatched or exception items report; you make a payment decision on each item. You then
advise us of your pay /no pay decision within the established timeframe. We pay the unmatched items you identify
for payment, return any remaining unmatched items, and adjust your account accordingly. If you do not notify us
by the deadline, we return all exception items.
Minimize the risk of unauthorized or altered checks
With automatic daily verification of checks presented for payment, checks that are unauthorized or that have
altered payment amounts are immediately brought to your attention. By using Positive Pay, you greatly reduce the
risk of fraud.
We offer:
• Positive Pay in conjunction with: Commercial Checking Accounts, Target Balance Accounts, Controlled
Disbursement, and Treasurer's Drafts
• The ability to view exception items through our Internet - accessible ONLINE BANKER® direct inquiry and
transaction services
PC Based Banking Software Products
Firstar's ONLINE BANKER® direct inquiry and transaction services
... a revolutionary platform providing Internet or private network access to account inquiry, transaction
origination, and report capabilities, all integrated into a single system
Manage your cash position by accessing all your accounts via the Internet
Firstar is among the first U.S. banks to introduce a reporting product that combines the power of Sun®
Microsystems JavaTM programming language with the convenience of Internet or private network access. There is
no complex Windows software to install. All you need is a compatible browser on your computer, and if you don't
have one, we'll give you one free.*
4
Perform your daily work through a single log -on to an integrated system
ONLINE BANKERS services integrate account inquiry, transaction origination, and report capabilities into one
system for both domestic and international accounts. Consolidated prior day reporting information is available for
all Firstar accounts as well as for accounts from other U.S. and international banks. We continue to expand the
system's capabilities to give you a single point of access for all your financial management needs.
We currently offer:
• Prior and current day information reporting
• Multi -bank, multi- currency reporting
• Online check inquiries together with stop payment initiations and confirmations
• ACH payment origination for ACH Corporate and ACH Personal Payments. This is ideal for low volume
automatic payment transactions (less than 50 per session) and can be used for payroll, tax, cash concentration
and corporate to corporate payments.
• Book transfer initiation
• Data download in BAI2 and comma separated variable formats
• Special reports, including Bank Statements, Analysis Statement, EDI, Deposit Returns, Loan Information, and
others
• Investment rate information
We are adding the ability to initiate:
• Domestic Wire transfers
• Loan Paydown and Drawdown
Subsequent phases will include:
• International Wire transfers
• Image delivery
• Cash forecasting
• International letters of credit
Customize your services and reports to meet your individual needs
ONLINE BANKER® services provide the flexibility for you to choose a comprehensive package or just those
specific services that meet your individual needs. And Firstar's system uses interactive Javarm programming
language to allow you to customize your reports.. Not only can you drill down to the level of transaction detail you
require, you can also move, sort, and select specific information.
Take advantage of the latest security technology
Firstar's ONLINE BANKER® services system protects your account information with the latest in technology,
including 128 bit encryption, SSLv3, individual client IDs and passwords, digital signatures, and optional Security
Dynamics® SecurID® tokens.
• Minimum hardware/software configuration to access the system via the Internet or Firstar's private network: 100 MHz Intel• Pentium* processor,
50 MB of available hard drive space, 32 MB of RAM, 28.8 baud modem, Microsoft® Windows 950 / Windows 980 / or Windows NT° operating
system, and Microsoft° Internet Explorer version 5.0 (or higher)
ONLINE BANKER® direct inquiry and transaction services is a registered trademark of Firstar Corporation. Intel and Pentium are registered
trademarks of Intel. MlcrosoR, Windows 95, Windows 98, Windows NT, and Internet Explorer are registered trademarks of Microsoft
Corporation. Security Dynamics and SecurID are registered trademarks of Security Dynamics Technologies, Inc. Sun is a registered trademark and
Java is a trademark of Sun Microsystems, Inc.
2. Provide descriptions of your bank's policy of handling daylight overdrafts.
The Wire Transfer Department will be alerted by their system as to when an
outgoing wire exceeds the available balance in the DDA and the Daylight
Overdraft Limit established for that customer. A wire transfer employee then
will identify the Firstar Bank that owns the account and then contact the
commercial customer service center or the Relationship Manager that services
that relationship. The individual receiving the call must then complete a daylight
overdraft wire transfer authorization form as evidence of the justification for the
wire's release and for audit purposes. Furthermore, the daylight overdraft limit
is aggregated with any and all other credit exposure to determine the level of
approval required Once approved, this limit is then established within the wire
system as being an acceptable overdraft limit
VILLAGE OF DEERFIELD BANKING SERVICES
PROPOSAL FORM
02/15/02
EXHIBIT A -2
CALCULATION SUPPORTING
"BALANCE REQUIRED TO SUPPORT $1.00 OF SERVICES"
365 - # of days in December
Earnings Credit Rate
Notes:
Banks should use the average Illinois Funds Money Market rate for the month of December, 2001
(2.066 %) plus 15 basis points (2.216 %) unless an exception to this rate is made in Exhibit B in
which case the average monthly Illinois Fund rate for December 2001 plus or minus the amount of
the stated exception should be used.
Please see the Exceptions section, Exhibit B for more information.
INFORMATION REGARDING THE EXHIBIT
The earnings allowance as described in the Request for Proposal is the ONLY allowance method
that will be accepted. Deviations from this method will be treated as exceptions, and should be
listed on Exhibit B.
7
VILLAGE OF DEERFIELD BANKING SERVICES
PROPOSAL FORM
EXHIBIT A -3
1. Attach a list of references pursuant to Section II -O.
Current Depository Customers
Mr. Brad Loscher Mr. Brian Barnes
City of Springfield City of Bloomington
Municipal Center West 109 East Olive Street
300 South Seventh Street Bloomington, IL 61701
Springfield, IL 62701 -1687 Phone: 309 - 434 -2233
Phone: 217 - 789 -2224 Fax: 309 - 434 -2802
Fax: 217- 789 -2297
Mr. Ron Hill
Town of Normal
100 East Phoenix Ave
Normal, IL 61761
Phone: 309 - 454 -9510
Fax: 309 - 454 -9609
02/15/02'
Previous Depository Customers: This customer was lost as a depository customer in a bid to
Amcore Bank. Not aware of other municipalities that has left in the last year.
Mr. Paul Christensen
Village of Fox Lake
301 South Route 59
Fox Lake IL 60020
Phone: 847-587-2151
Fax: 847 -587 -2337
2. Indicate the names below and attach the resumes of the designated account executive and
alternate.
Mr. James E. Belmont, Jr
Vice President
700 Deerfield Road
Deerfield IL 60015
Phone: 847 - 948 -6380
Fax : 847 - 945 -7150
Mr. Asif U. Khan
Branch Manager
700 Deerfield Road
Deerfield IL 60015
Phone: 847 - 948 -6003
Fax :847- 945 -1216
Mr. Peter J. Speca
Vice President
9575 W. Higgins Rd.
Rosemont IL 60018
Phone: 847 - 318 -6353
Fax: 847 - 696 -9437
Mr. James E. Belmont, Jr.
32 Years Banking Experience: 7 years as Private Banking Manager, 10 years as a Retail Banking
Manager, 5 years in Commercial Banking, and 5 years in Consumer Banking, 5 years in Bank
Operations.
Education: BBA, Finance Major, Loyola University, Chicago, Series 6 & 7 Mutual Funds and
Securities Sales, Series 63 Annuities, Certified Financial Planner Certificate.
91
Community Involvement: Treasurer, Executive Committee Deerfield, Bannockburn,
Riverwoods Chamber, Board Member, Past President Highland Park Sister Cities Foundation,
Member, Advisory Committee College of Lake County, 25 years as officer or board member of
various local organizations. ,
Mr. Asif U. Kahn
10 Years Banking Experience: Last two years have been with Firstar as a Branch Manager
Education: Bachelor of Science Degree
Community Involvement: Entire banking career has been spent in the Deerfield area. 10 years as
officer or board member of various local organizations.
Mr. Peter J. Speca
7 Years Banking Experience: 4 Years as a Portfolio Manager, 3 years as a Relationship Manager
in Government Banking Division. Current relationship manager for many large municipal
customers in Northern Illinois and Southeast Wisconsin.
Education: BS, Marquette University, MBA, Marquette University, JD, Creighton University.
Community Involvement: 7 years officer or board member of various local organizations
including Saint Joseph High School, Saint Mary's Grade School, and Treasurer's Management
Association. Also member of the Wisconsin Bar Association.
E
VILLAGE OF DEERFIELD BANKING SERVICES
PROPOSAL EXCEPTION FORM
02/15/02
EXHIBIT B
The bank wishes to take exceptions to the following items:
Section Item Estimated Costs
II.D Account Structure: Interest rate will not be based on the Illinois Funds Money Market
Rate. Rather, a rate of Fed Funds less 75 basis points will be paid. Currently this rate
equals 1.00% (1.75% Fed Funds less 75 basis points).
Expression in terms of the Illinois Public Treasurer's Investment Pool = December rate
less 106 basis points.
II.E Earnings Allowance will not based on the Illinois Funds Money
Market rate. Rather, the rate that the Village of Deerfield will
be paid is based upon 90% of the average non- interest bearing
collected balance.
The earnings credit rate is based upon the 13 week average T -bill
auction high rate, (2.31% in December) less a deduction of 53 basis points.
based on balances of $500,000. Therefore, the ECR for December would have been
1.78 %. This rate changes monthly and assumes collected balanced in excess of
$400,000.
Expression in terms of Illinois Public Treasurer's Investment Pool = December rate less
28.6 basis points.
Settlement on the account will have to take place at least once per year.
II. I The wire transfer agreement is not subject to negotiation.
II.M Lockbox Processing Exception: The bank will process the lockbox payments in a
Wholesale Lockbox environment which will not make use of the OCR line on the bills.
Therefore, any transmission or detail report will not capture this information.
10
VILLAGE OF DEERFIELD BANKING SERVICES
PROPOSAL FORM
02/15/02
EXHIBIT C
COMMUNITY REINVESTMENT ACT INFORMATION
1. Please provide your Corporate Headquarters (Parent) in Illinois CRA report of last
examination including rating and the period of time the rating occurs.
Please refer to the attached Community Reinvestment Act Performance
Evaluation for Firstar Bank ( survivng charter of Star Bank) dated July 6, 1998.
2. Please define the service area this rating applies to.
Please refer to the attached Community Reinvestment Act Performance
Evaluation for Firstar Bank ( survivng charter of Star Bank) dated July 6, 1998.
This is applicable to the entire Firstar Bank (surviving charter of Star Bank)
footprint as of 1998.
3. Please provide the CRA report of last examination for the branch(s) showing Deerfield as part
of its geographic area.
Please refer to the attached Community Reinvestment Act Performance
Evaluation for Firstar Bank (survivng charter of Star Bank) dated July 6, 1998.
Additionally, U.S. Bank's Illinois operations were independently evaluated in
1998 and received a Satisfactory rating. Report is attached
11
02/15/02
AGREEMENT
EXHIBIT F
This Agreement, made and entered into this 15TH day of February, 2002, by and between Firstar
Bank, N.A., having its place of business at 600 Deerfield Road, Deerfield IL 60015 , and the
Village of Deerfield, (hereinafter referred to as "the Village ") an Illinois municipal corporation:
WITNESSETH
Firstar Bank, N.A., having submitted a Proposal for providing certain banking services for the
Village pursuant to the specifications set forth within the proposal for banking services required
by the Village, and having been awarded a contract to provide this service, hereby accepts and
agrees to comply with the specifications set forth within the Banking Services Proposal dated
02/15/02. The parties therefore agree that the attached Cost Proposal(s) constitute the
"Agreement" between the parties.
IN WITNESS WHEREOF, Firstar Bank, N.A. has caused this Agreement to be executed in its
name by a corporate officer and the Village has caused same to be executed in its name by its
Village President, and its corporate seal to be h to affixed and attested, all being thereunto
duly authorized.
ATTEST:
ATTEST:
13
By: Vice President
Date:
of Deerfield, Illinois
Date: a- .5 -0ml-
CERTIFICATION
The undersigned, being an authorized representative of the Contractor, hereby certifies that the
Contractor is not barred form submitting a proposal for this contract as a result of a violation of
either Section 5/33E -3 or Section 5/33E -4 of Chapter 38 of the Illinois Compiled Statutes
concerning bid rigging, rotating, kickbacks, bribery, and interference with public contracts.
The undersigned hereby also certifies that the Contractor has adopted an anti - sexual harassment
policy in accordance with the Illinois Human Rights Act, as amended. The undersigned hereby
also certifies that the Contractor shall comply with all local, state, and federal safety standards.
The undersigned hereby also certifies that the Contractor is not delinquent in the payment of any
tax administered by the State of Illinois Department of Revenue, unless the amount and/or liability
is being properly contested in accordance with the procedures established by the appropriate
revenue act.
The undersigned hereby also certifies that this proposal is genuine and not collusive or sham; that
said Contractor has not colluded, conspired, connived, or agreed, directly or indirectly, with any
other Contractor or person, to put in a sham proposal or to refrain from submitting a proposal;
and has not in any manner, directly or indirectly, sought by agreement or collusion, or
communication or conference with any person, to fix the proposed price elements of said
proposal, or that of any other Contractor, or to secure any advantage against any other contractor
or any person interested in the proposed contract.
Dated at Firstar Bank, N.A.
this 15'' day of February 15, 2. /
By: 7
(signature)
Its: Vice President
(title)
James E. Belmont, Jr., being duly sworn, deposes and says that he /she is the Vice President of
Firstar Bank, N.A. and that the statement above is true and correct.
Subscribed and sworn before me this 15th day of February, 2002.
Notary public:
=PUBLIC,STATE SEAL"
My commission expires: ///1 �/�0 �-- INBERG
OF ILLINOIS t S I J�24�2002
14
Other Applicable Pricing
Wire Confirmations- Mailed
$1.25
Cash Deposited per bill
$.009
Check Sorting Monthly Maintenance
$15.00
ACH Transmission Fee -per file
$20.00
ACH Addendum
$.01
ACH Return
$5.00
Return Item Redeposited
$4.00
Return Item Special Handling maintenance
$25.00
Return Item Phone Notification per call
$5.00
Online Banker® per transaction
$.04
Online Banker® stop payment
$5.00
Foreign Items Deposited
$4.00
Foreign Items Returned
$20.00
Audit Confirmation
$20.00
Overdraft Item Paid
$29.00
Lockbox First Class Mail 251 — 1000
$60.00
Lockbox Daily Deposits
$1.25
Lockbox One time set up fee
$150.00
Uncollected Funds Usage Charge
Prime + 4%
Bulk Coin Counting assumes average usage.
WHOLESALE LOCKBOX
Firstar's WHOLESALE LOCKBOX
... a streamlined way to collect your customers' payments quickly and efficiently
Speed the collection of your customers' payments
Your customers mail their payments to you using one of Firstar's unique ZIP codes for wholesale remittance
processing. After picking up the mail, we sort it by lockbox number on high -speed equipment. Then we process
payments according to your instructions and deposit funds directly into your checking account. We return
processed invoices, check stubs, and check copies to you via first class mail or overnight commercial courier.
Eliminate the in -house costs and risks of processing your receipts
You no longer have to dedicate personnel to handling your daily collections and preparing you deposits. We
provide enhanced audit control by functioning as an independent third party with full responsibility to process and
deposit your customers' checks.
Take advantage of excellent mail times and aggressive funds availability
Firstar's prime locations in Chicago and St. Paul, unique ZIP codes, and frequent mail pick -ups enable us to begin
processing your payments as soon as possible to meet critical check clearing deadlines. We have begun processing
and depositing funds to your checking account each day before your office opens. Checks deposited through our
Wholesale Lockbox service receive a more aggressive availability schedule than items deposited at a teller window.
Deposits are timed throughout the day to meet check - clearing deadlines that are important for your specific
remittance mix.
We offer:
• Timely receivables information for credit decisions and accurate forecasts of balances
• Daily faxed or mailed reports on deposits
• Information on current and previous day lockbox deposits and float via Firstar's Internet - accessible ONLINE
BANKERS direct inquiry and transaction services
Benefit from Firstar's years of experience and low error rates
Firstar has provided remittance processing services since 1955 and currently processes over a million payments for
hundreds of clients each month. Our lockbox processing staff has many years of experience meeting the varied
processing requirements of our clients. We can manage peak payment volumes and still turn your daily
remittances into cash without sacrificing the high quality of our work for you. Our error rates, which we track
monthly as part of our overall quality management process, are extremely low.
Rest assured that readily accessible service is only a phone call away
As part of Firstar's Five Star Service Guarantee, our team of Commercial Service Representatives provides our
treasury management clients with toll -free access to assistance during normal business hours. Our well- trained
staff offers a single point of access for service inquiries and problem resolution. Firstar's team structure ensures
prompt, responsive service to all our clients.
Call now for WHOLESALE LOCKBOX services from Firstar, the Bank Without Boundaries. If you'd
like a streamlined way to collect your customers' payments from the Bank that guarantees its service, contact your
Firstar Relationship Manager or a Treasury Management Representative at 1- 800 - 252 -2622.
1 /00
STRATUS CARD
Firstar's STRATUS CARD
... ATM Debit Cards, maximizing direct depositfor all your employees.
Provide direct deposit access to all your employees.
Firstar's Stratus Card maximizes direct deposit to all employees by providing debit account access to the
"un- banked" population. Approximately, 25 million people are "un- banked." Many of these individuals
have credit issues. The Stratus Card offers a debit ATM/ POS (point -of -sale) account to everyone
regardless of credit history.
Reduce Your Payroll Costs.
Direct deposit will dramatically reduce payroll expenses while offering significant benefits to your
employees. Your company will realize up to 75% savings on payroll expense by eliminating paper checks,
postage or delivery charges, check fraud and account reconciliation charges. Companies also use Stratus
for termination pay.
Stratus accounts are funded with standard ACH transfers. Your company originates one ACH file to Firstar
and both standard direct deposit and Stratus Card accounts will be funded. We provide all processing,
servicing and support functions for Stratus ACH based accounts. Stratus Accounts are employee owned.
Your company will not incur any liability for the service and will not need to manage service activity
reports.
The Stratus Card is a direct deposit ATM account and a point -of -sale card in one. The Stratus Card is:
• Easy
♦ Applications are pre- approved. Account only requires direct deposit.
• Affordable '
Companies may choose between 'two fee schedules: Our bundled service - -The Stratus Card or The
Stratus PayCard-- transaction based service. Employers may subsidize a portion of the account expense
to encourage participation.
• Convenient
♦ Surcharge Free at 11,000 Firstar Bank & U.S. Bank locations
♦ Quick and easy access to cash 24 hours a day, 7 days a week
♦ Eliminates need to stand in long lines at the bank or check casher
♦ Offers the ability to pay bills through automatic payment programs
♦ Accepted at thousands of ATMs and Point -of -Sale terminals worldwide
♦ Joint & minor accounts available
• Secure
♦ FDIC insured
♦ Access to well - lighted, convenient ATMs and Point -of -Sale terminals
Benefit from Firstar's experience
Firstar has been offering direct deposit services for over 20 years and currently provides the service to
hundreds of clients nationwide. We have the expertise to accommodate applications of any size.
Rest assured that readily accessible service is only a phone call away
As part of Firstar's Five Star Service Guarantee, our team of Commercial Service Representatives provides
our treasury management clients with toll -free access to assistance during normal business hours. Our
well - trained staff offers a single point of access for service inquiries and problem resolution. Our well
trained, focused, multi - lingual customer care center provides real time answers to your employees
questions and issues. We also offer touch tone phone and Internet customer service.
Call now for Stratus Card from Firstar, the Bank Without Boundaries
If you'd like this cost - effective system for originating electronic payments and collections from the Bank
that guarantees its service, contact your Firstar Relationship Manager or a Treasury Management
Representative at 1- 800 - 252 -2622.
CORPORATE and PURCHASING CARDS
Firstar's CORPORATE and PURCHASING CARDS
... tools to reduce the costs and paperwork involved in small purchases and travel expenses
Reduce your costs
Issue a Visa/Mastercard Purchasing or Corporate Card to the employees you designate so they can make small dollar purchases
that would otherwise require the issuance of purchase orders and individual checks for payment. You set the appropriate limits
based on each employee's purchasing responsibilities. By using this card, you reduce the internal processing cost associated
with small - dollar purchases. Benefit from savings and increased productivity when you reduce the time involved in the
purchasing process, such as the accounts payable reconciliation. Industry studies confirm that a large majority of all corporate
transactions are for small dollar purchases, so these savings can be substantial.
Receive greater spending controls
Limits and controls on spending are automatic with the Purchasing Card, so you can eliminate time - intensive and manual
approval processes. You can set limits for individual accounts, limits on transaction size, and overall limits department by
department. These limits can be effective for a day, a week, or a billing period. You can also restrict card usage to only
purchases from vendors with preselected SIC codes.
Benefit from improved billing management
Periodic billing information can accommodate your specific needs and be assigned to specific cost centers, projects, or general
ledger accounts. This eliminates the need to allocate and key each transaction in your accounting system. Electronic billing
files can be transmitted or downloaded from a web -based reporting system, which eliminates the need to key enter the data.
We offer:
• A variety of centralized billing, general ledger interface, and payment options to meet your specific needs
• A memo statement provided to each individual account holder
• Monthly, bi- monthly, or weekly billing cycles
• The ability to determine the timing of the billing date
• Cards that can be customized with your name and logo to provide greater visibility for your company
• Electronic feeds to electronic expense reporting systems
Track purchases more easily with comprehensive reporting
The comprehensive reporting available enables you to track purchase volumes with vendors, generate 1099 information,
determine minority vendor status, and identify purchasing exceptions. You can use this information to negotiate better
discounts and determine any underpaid or overpaid sales taxes. You can also combine individual accounts with up to seven
levels of consolidation for management reporting purposes.
Get more convenience with corporate liability protection
Because VISA cards are accepted at over twelve million merchants, you can rely on them for nearly all purchases including fuel,
miscellaneous tools, and supplies. They also are increasingly accepted at a broader range of wholesalers, manufacturers, and other
business -to- business vendors. To protect your company from employee misuse of a card, corporate liability insurance is provided at
no additional cost. Your company is protected up to $15,000 for each employee.
Rest assured that readily accessible service is only a phone call away
As part of Firstar's Five Star Service Guarantee, our team of Commercial Service Representatives provides our treasury
management clients with toll -free access to assistance during normal business hours. Our well- trained staff offers a single point of
access for service inquiries and problem resolution. Firstar's team structure ensures prompt, responsive service to all our clients.
Call now for CORPORATE and PURCHASING CARDS from Firstar, the Bank Without Boundaries. If
you'd like tools to reduce the costs and paperwork involved in small purchases and travel expenses from the Bank that guarantees
its service, contact your Firstar Relationship Manager or a Treasury Management Representative at 1- 800 - 252 -2622.
1 /00
DecisionView image Positive Pay
Firstar's DECISIONVIEW Image Positive Pav
... enhanced fraud protection through an automated review of check images prior to payment
Help protect yourself from fraud with an automatic review of images of presented checks
Each day that checks are issued, you transmit a file to Firstar containing all register information for those items.
As checks are presented for payment, we compare them to the files you have provided. We pay all checks that
match the files and, by 10:30 a.m., produce an exception report listing any unmatched items.
Make informed decisions about exception items by reviewing check images
Each day, you access the Internet site for DecisionView and review your daily list of exceptions. After reviewing
that list, you have the option to view the image of the item to enhance your decision - making. Next, you make a
payment decision on each item and send the response back over the Internet. We pay the unmatched items you
identify for payment, return any remaining unmatched items, and adjust your account accordingly. If you do not
notify us by the deadline, we return all exception items.
Minimize the risk of unauthorized or altered checks
With automatic daily verification of checks presented for payment, checks that are unauthorized or that have
altered payment amounts are immediately brought to your attention. By using DecisionView, you greatly reduce
the risk of fraud.
We offer: ,
• DecisionView image positive pay in conjunction with:
Accounts, Controlled Disbursement, and Treasurer's Drafts
• The ability to view exception item detail and images via
electronically
Commercial Checking Accounts, Target Balance
the Internet and send decisions back to Firstar
Rest assured that readily accessible service is only a phone call away
As part of Firstar's Five Star Service Guarantee, our team of Commercial Service Representatives provides our
treasury management clients with toll -free access to assistance during normal business hours. Our well- trained
staff offers a single point of access for service inquiries and problem resolution. Firstar's team structure ensures
prompt, responsive service to all our clients.
Call now for POSITIVE PAY from Firstar, the Bank Without Boundaries
If you'd like enhanced fraud protection from the Bank that guarantees its service, contact your Firstar Relationship
Manager or a Treasury Management Representative at 1- 800 - 252 -2622.
7/01
FIRSTAR BANK ILLINOIS
COLLECTED FUNDS SCHEDULE
BUSINESS DEPOSITS
Effective 4/17/2000
MONDAY THROUGH FRIDAY DEPOSITS
Check Drawn On
Same Business Day
Firstar Bank * *
One Business Day
Chicago City
St. Louis City
Peoria Regional
Chicago Regional
St. Louis Regional
US Postal Money Orders
US Treasury Checks
US Savings Bonds
Two Business Days
Cincinnati City
Cleveland City
Columbus City
Des Moines City
Indianapolis City
Kansas City
Little Rock City
Louisville City
Memphis City
Milwaukee City
Minneapolis City
Nashville City
Omaha City
Federal Reserve
District or Bank*
0710, 2710
0810, 2810
0711,2711
0712, 2712
0719, 2719
0812, 2812
0815, 2815
0819, 2819
0865, 2865
0000 -0020
0000-0119
0000 -0800
0000 -0051
0000 -9000
0420, 2420
0410, 2410
0440, 2440
0730, 2730
0740, 2740
1010, 3010
0820, 2810
0830, 2830
0840, 2840
0750, 2750
0910, 2910
0960, 2960
0640, 2640
1040, 3040
Three Business Days
All other checks deposited unless otherwise indicated in the Schedule Notes.
Page 1 of 2
3541 -IL- OTC - business 03/00
SCHEDULE NOTES
City and Regional designations are consistent with those established by the Federal Reserve.
* * The Firstar Bank that houses your account
♦ Every day except Saturday, Sunday and federal holidays is considered a business day.
♦ Deposits are considered received if they are made on a business day before the Bank's
ledger credit cutoff. Deposits made on other days or after the ledger credit deadline will be
considered to be received on the next business day. Deposits made through a night
depository will be credited the next business day.
♦ Items drawn on banks located in Federal Reserve Districts closed for holidays will be
assigned one additional business day.
♦ Foreign items will be assigned five business days.
♦ Items unable to be machine processed will be assigned one additional business day.
♦ Deposited items returned-will be assigned one business day.
♦ This schedule is subject to change without notice.
14-I IRSTAR � `
Bank Without Boundaries
Page 2 of 2
3541 -IL- OTC - business 03/00
^J- �, R STA R
_Bank WifhoutBoundar•us
WIRE TRANSFER SERVICES MASTER
AGREEMENT
THIS TREASURY MANAGEMENT SERVICES
MASTER AGREEMENT (this "Agreement ") governs the
provision of certain treasury management services to
( "Customer ") by Firstar. As used in this Agreement,
" Firstar" means Firstar Bank, N.A. and any other banking
subsidiary of Firstar Corporation which provides' such
services to Customer.
1. Scope of Services.. Treasury management
services provided by Firstar to its customers include the
following:
Wire Transfer Services
PC Wire Transfer Services
This Agreement governs the provision of any of the
foregoing services together with such other treasury
management services as may be provided by Firstar to
Customer from time to time (each, a "Service "). Further
terms relating to a Service may be contained in "Terms and
Conditions" relating to such Service ( "Service Terms and
Conditions ") which follow herein. Service Terms .and
Conditions will be deemed accepted by Customer upon
provision by Firstar of the particular Service to Customer.
With respect to any Service being provided by Firstar to
Customer at the time this Agreement is entered into, unless
otherwise agreed, this Agreement and the relevant Service
Terms and Conditions shall prevail over any conflicting
provision of any prior agreement relating to that Service. In
the event of any conflict between this Agreement and any
Service Terms and Conditions, the Service Terms and
Conditions shall prevail with respect to the particular
Service. Any requests by Customer to initiate, add, change,
delete or supplement any of the Services Customer is using
or desires to use shall be.communicated in writing to Firstar,
unless Firstar in accordance with its normal business
practices agrees to accept the same by other means.
2. Representations and Warranties. Customer and
Firstar each represents and warrants to the other, as of the
date this Agreement is entered into and at the time any
Service is used or performed, that: (a) it is validly existing
and in good standing under the laws of the jurisdiction of its
organization; (b) it has all requisite power and authority to
execute and deliver, and to perform its obligations under,
this Agreement and each Service used or performed by it;
(c) this Agreement has been duly authorized and executed
by it and constitutes its legal, valid and binding obligation;
and (d) any consent or authorization of any governmental
authority or third party required to be obtained by it in
connection with this Agreement or any Service used or
performed by it• has been obtained. Firstar makes no
representation or warranty, express or implied, and
disclaims all warranties as to the merchantability, fitness for
a' particular purpose or suitability of any Services for
Customer, or as to the compatibility of Firstar''s software,
equipment or communication interfaces with those of
Customer. Customer represents and warrants to Firstar, and
agrees with Firstar, that the Services are not intended to and
shall not be used by Customer for personal, family or
household purposes.
3. Liability. Firstar will exercise ordinary care in
providing Services and will be responsible for any loss
sustained by Customer only to the extent such loss is caused
by Firstar's reckless or willful' misconduct. In no event shall
clerical errors or mistakes in judgments constitute failure to
exercise ordinary care, nor shall Firstar have any liability for
any indirect, incidental, consequential (including lost
profits), special or punitive damages, whether arising in
contract or in tort, and whether or not the possibility of such
damages was disclosed to or could have been reasonably
foreseen by Firstar. Under no circumstances shall Firstar be
responsible for any liability, loss or damage resulting from
any delay in performance of or failure to perform in
connection with any Service which is caused by interruption
of telephone, telefacsimile or communication facilities,
delay in transportation, equipment breakdown or mechanical
malfunction, electrical, power or computer failure,
accidents, fire, flood, explosion, theft, natural disaster or
other catastrophe, acts or failure to, act by Customer or any
third party, strikes or lockouts, emergency conditions, riots,
war, acts of government or other circumstances which are
unavoidable or beyond Firstax's control. Firstar shall not be
liable for failure to perform any of its obligations in
connection with any Service if such performance would
result in it being in breach of any law, regulation or
requirement of any governmental authority. If Firstar fails
to credit any of Customer's accounts utilized in connection
with any Service in accordance with the Service Terms and
Conditions applicable thereto as of the date such credit was
earned, upon discovery or notification of such error, Firstar
will properly credit such account, but Firstar shall not incur
any liability therefor, including any loss resulting from
failure by Customer to invest the amount of funds not
properly credited to the account.
4. Indemnification. Customer shall indemnify and
bold harmless Firstar and each of its directors, officers,
employees, agents, successors and assigns ( "Indemnitees ")
from and against all liability, loss and damage of any kind
(including attorneys' fees and other costs incurred in
connection therewith) incurred.by or asserted against such
Indemnitee in any way relating to or arising out of any
Service, by reason of any acts or omissions of Customer or
any third party or otherwise, except to. the extent such
liability,.loss or damage is caused by the gross negligence or
willful misconduct of • such Indemnitee (provided that
reliance, without further investigation, on any oral,
telephonic, electronic, written or other request, notice or
instruction believed in good faith to. have been given by
Customer will in no event constitute gross negligence or
willful misconduct on the part of such Indemnitee).
Firstar Wire Transfer Master Agreement: 1 page of 4
5. Payment. Customer shall compensate Firstar for
the performance of each Service in accordance with the
price schedule established by Firstar, which may be changed
by Firstar from time to time. Customer will be provided
with notice of any such change in accordance with Firstar's
normal business practices. The price schedule for each
Service will be deemed accepted by Customer upon
provision of such Service to Customer. Customer shall pay
any access, transfer, transmission and other charges
established by Firstar in providing each Service. Customer
shall also pay any sales, use or similar tax applicable to any
Service. If Firstar is required to pay any such taxes,
Customer shall reimburse Firstar therefor upon demand.
Customer shall also pay all attorneys' fees and other costs
and expenses Firstar may incur in collecting any fees or
other sums Customer may owe to Firstar in connection with
any Services. Firstar may collect any of the foregoing
amounts and any other amounts due by Customer to Firstar
hereunder or in connection with the provision of any
Services to Customer by debiting any of Customer's
accounts with Firstar, billing Customer, and/or setting off
against any amounts Firstar owes Customer, without any
obligation to give prior notice thereof to Customer. Firstar
shall also have the right to credit or debit any accounts of
Customer with Firstar to correct any processing irregularity
in connection with any Services.
6. Security Procedures and Communications.
Certain procedures, including the use of identification codes,
encryption, passwords, logon identifications, personal or
location identification numbers, repetitive codes, tokens
(including SecurlD® Tokens) and other security devices,
systems and software (the "Security Procedures "), designed
to verify the origination (but not errors in transmission or
content) of instructions, orders and other communications
(each, a "Communication ") sent by Firstar and Customer
may be used in connection with Services. Customer agrees
that any such mutually agreed -upon Security Procedures
shall be deemed commercially reasonable. Firstar shall not
be obligated to act on a Communication not transmitted in
accordance with the Security Procedures and may refuse to
act on any Communication where Firstar reasonably doubts
its authorization, contents, origination or compliance with
the Security Procedures. Firstar shall have no duty to
discover, and shall not be liable for, errors or omissions by
Customer. If Firstar complies with the Security Procedures
in respect of a Communication, Firstar shall be entitled to
act on that Communication and shall not be obligated to
verify the content of such Communication, establish the
identity of the person giving it, or await any confirmation
thereof, and Firstar shall not be liable for acting on, and
Customer shall be: bound by, any Communication sent in the
name of Customer, whether or not authorized. If Customer
selects certain Security Procedures to use in connection with
a Service and those Security Procedures provide less
protection against unauthorized transactions or activity than
other Security Procedures offered by Firstar in connection
with such Service, the Security Procedures selected by
Customer shall be deemed commercially reasonable to the
same extent as the Security Procedures offered by Firstar
that provide greater protection. Firstar reserves the right to
issue new Security Procedures and/or to cancel or change
any Security Procedures from time to time. Whenever the
Security Procedures include the assigning to Customer of
any - confidential password, logon identification,
identification code, personal or location identification
number, repetitive code, token or similar security device,
Customer shall not disclose such security device except to
employees or agents authorized to act for Customer in
connection with Services. Customer shall implement such
safeguards as are reasonably necessary to ensure the
confidentiality and integrity of such security devices, and
shall immediately notify Firstar if the confidentiality or
integrity of any such security device is breached or
threatened. Customer shall be solely responsible for the
safekeeping of such security devices and assumes all risk of
accidental disclosure or inadvertent use of such security
devices by any party whatsoever, whether such disclosure or
use is on account of Customer's negligence or deliberate acts
or otherwise. Firstar shall not be liable for any loss or
damage resulting from fraudulent, unauthorized or otherwise
improper use of any security devices.
7. Confidentiality. All user guides, manuals, data,
software, processes and other information provided to
Customer in connection with any Service and all fee and
pricing information with respect to the Services (the
"Information ") is the proprietary and confidential property
of Firstar and/or its relevant licensors or suppliers.
Customer agrees to use the Information only in the manner
specified by Firstar and in the ordinary course of Customer's
business, to retum it to Firstar upon termination of the
relevant Service, and to keep the Information confidential
and limit access thereto only to its agents and employees
who require access in the normal course of their duties,
except to the extent the Information is already in the public
domain or Customer is required to disclose the information
by law.
8. Intermediaries. Firstar may act on any
Communication and provide any Service using any payment
system or intermediary organization it reasonably selects.
Firstar's performance of Services is subject to the rules and
regulations of any such system or organization. Firstar may
engage third parties to provide Services. Firstar shall have
no obligation to disclose arrangements with third parties to
Customer or obtain Customer's consent thereto. Customer
authorizes the transfer of information relating to Customer
to agents of Firstar or Customer for use in connection with
Services or as required by law.
9. Equipment and Software. If any Service
requires equipment or software to be operated by Customer,
the provision "of the Service by Firstar shall be conditional
on the proper use and maintenance of such equipment or
software by Customer. If Firstar supplies equipment or
software, Firstar shall remain the owner of such equipment
or software, and Customer shall insure it, use it solely in the
manner specified by Firstar and in connection with the
relevant Service, not ternove or modify any name or
identifying mark on it, and return it to Firstar upon
termination of the Service.
Firstar Wire Transfer Master Agreement: 2 page of 4
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10. Advertising. Neither Customer nor Firstar shall
display any name, trademark or service mark of the other
without the prior written consent of the other. Customer
shall not--advertise or promote any Service without Firstar's
prior written consent.
11. Recordings and Records. Either Customer or
Firstar may produce telephonic or electronic recordings or
computer records, including e-mail and telefacsimile
transmissions, as evidence in any proceedings brought in
connection with any Service. Customer agrees to Firstar's
telephonic or electronic recording for security and quality of
Service purposes.
12. Notices. Any notice or other communication may
be sent by Firstar to Customer at Customer's postal, e-mail,
telefacsimile or other address provided by Customer to
Firstar, and Firstar may assume that any notice or
communication sent to Customer at any such address has
been received. by Customer, until Customer notifies Firstar
in writing of another address.
13. Accounts. All Services involving Customer's
accounts at Firstar are subject to Firstar's terms and
conditions of deposit accounts and availability schedules in
effect from time to time, provided that in the event of any
conflict between this Agreement and Firstar's terms and
conditions of deposit accounts, this Agreement shall prevail.
14. Extensions of Credit. Customer may be required
to have specified amounts of collected funds in its accounts
at Firstar in connection with particular Services. Firstar is
not obligated to extend credit to .Customer unless it has
specifically agreed to do so in a separate writing. If Firstar
extends credit to Customer by permitting overdrafts or use
of uncollected funds in Customer's accounts or otherwise,
the amount thereof shall be immediately due and payable,
together with interest thereon at a per annum fate
determined by Firstar from time to time, but not to exceed
the maximum rate permitted by law. If Firstar should
perform on behalf of Customer any Services that create an
overdraft or use of uncollected funds, such action shall not
establish a course of dealing between the parties that shall
require Firstar to perform any additional Services on behalf
of Customer that would create an overdraft or use of
uncollected funds. Firstar may without notice refuse to
honor any order for payment, transfer or withdrawal of
funds if such order would create an overdraft or use of
uncollected funds, notwithstanding that Firstar may have
previously allowed overdrafts or use of uncollected funds.
15. Discrepancies. Customer shall promptly notify
Firstar in writing of any error in connection with any Service
and any discrepancies between any records maintained by
Customer and any notice Customer receives from Firstar
with respect to any Service, and shall provide Firstar with
any information it may reasonably request in connection
therewith. Customer agrees that 14 days is a reasonable
time for Customer to notify Firstar of errors or
discrepancies, unless any other agreements, Service Terms
and Conditions, or laws, rules or regulations provide for a
shorter period.
16. Compliance. Customer shall comply with all
laws, rules and regulations in connection with Services,
Customer may choose Services to which the rules of the
National Automated Clearing House Association (NACHA)
are applicable. Customer agrees to be bound by such rules,
and agrees that no entries which violate United States law
may be initiated. Customer shall be responsible for and
shall fully indemnify Firstar for any and all fines and
assessments imposed on Firstar as a result of any infraction
or violation of such rules caused by or attributable to
Customer.
17. Disclosure. Customer acknowledges that Firstar
may have certain legal recordkeeping and reporting
requirements with respect to Services and consents to
Firstar's disclosure to govemmental authorities of
information concerning Customer and Services provided to
Customer which Firstar believes to be appropriate or
necessary to fulfill such Iegal requirements.
18. Fiduciary Status. Nothing contained herein or in
any Service Terms and Conditions shall be deemed to create
fiduciary status on the part of Firstar in connection with the
provision of any Services. The foregoing notwithstanding,
to the extent, if any, that Firstar is deemed to be a fiduciary
of Customer in providing any Services, neither this
Agreement nor any Service Terms and Conditions is
intended to, nor shall, relieve Firstar of any fiduciary
responsibility otherwise imposed on it by law.
19. Termination. Any Services may be terminated
by either party upon 30 days' prior written notice to the
other. Firstar may also terminate or suspend any Services
without notice to Customer if any of the following occurs:
(a) Customer becomes insolvent or files, or has filed against
it, any bankruptcy or other insolvency, reorganization,
liquidation or dissolution proceeding of any kind; (b) a
material adverse change occurs in Customer's business or
financial condition; (c) Firstar has reason to believe that
Customer has engaged in fraudulent or illegal activity; (d)
Customer fails to maintain balances in accounts sufficient to
cover overdrafts; (e) Customer violates the terms of this
Agreement, any Service Terms and Conditions or any
financing arrangement with Firstar, (f) Customer fails to
provide financial information reasonably requested by
Firstar; (g) Firstar determines it is impractical or illegal to
provide any' Services because of changes in laws,
regulations or rules; or (h) Firstar, in good faith, is unable to
satisfy itself that any Services have been properly authorized
by Customer. Notwithstanding any termination, the terms of
this Agreement and the Service Terms and Conditions shall
apply to all transactions which have been initiated prior to
termination.
20. Headings. Section headings in this Agreement
and the Service Terms and Conditions are for convenience
of reference only and do not constitute a part hereof or
thereof.
21. Binding Effect. This Agreement and the Service
Terris and Conditions shall bind and benefit the parties and
Firstar Wire Transfer Master Agreement: 3 page of 4
. ,::.�`:. \v. .1.... 1. :".. ..:' �::.:(. K`::.. h'.' i�:` �:•! h:::+.:. �i. �: 11: �t: N.:,.:::: 1...:: U:\.:] •:,vt,:.:ll:tl+:l�.t:`1:411t•.. ...f�a,. .,t..... ,.t, :. .t,.i .t.t ....f. t. .,•,t. ....:�.I:..h. .. :..., ,:�t�u :. ..... ..... .i.. �. t.... �... .. .It: ... t„ �\ Nt
their successors and assigns. None of the terms of this
Agreement or any Service Terms and Conditions may be
waived except as Firstar may consent in writing, and no
agreement with or representation made by any employee of
Firstar that is in conflict with this Agreement or any Service
Terms' and Conditions will be binding on Tirstar unless
contained in a written modification of this Agreement or
such Services Terms and Conditions signed by an authorized
officer of Firstar. Firstar may from time to time amend any
of the terms of this. Agreement or any Service Terms and
Conditions. Customer will be provided with notice of any
such amendment in accordance with Firstar's normal
business practices. By continuing to use any Service after
notice of such amendment, Customer shall be deemed to
have agreed to such amendment and shall be bound by this
Agreement or such' Service Terms and Conditions as so
amended. No delay on the part of Firstar in exercising any
right or power under this Agreement or any Service Terms
and Conditions shall operate as a waiver thereof, nor shall
any single or partial exercise of any right or power under
this Agreement or any Service Terms and Conditions
preclude further exercise thereof or the exercise of any other
right or power. The rights and remedies under this
Agreement and the Service Terms and Conditions are
cumulative and not exclusive of any rights or remedies
which Firstar would otherwise have.
22. Governing Law; Severability. Except to the
extent superseded by Federal law, the provision of Services
shall be governed by the laws of the state in which the
principal office of Firstar Corporation is located. Customer
agrees that the courts of such state shall have jurisdiction to
hear any dispute arising out of any Service and submits to
the jurisdiction of such courts. Any provision of this
Agreement or the Service Terms and Conditions which is
unenforceable shall be ineffective to the extent of such
provision, without invalidating the remaining provisions of
this Agreement or the Service Terms and Conditions. If
performance of any Services'would result in violation of any
law, regulation or governmental policy, this Agreement and
any applicable Service Terms and Conditions shall be
deemed amended to the extent necessary to comply
therewith.
23. Assignment. This Agreement may not be
assigned by Customer without Firstar's prior written consent.
Firstar may assign this Agreement without Customer's
consent.
24. Financial Accommodation. Customer and
Firstar agree that this Agreement and the Services constitute
an agreement to provide a "financial accommodation" as
defined in 11 U.S,C. §365.
25. Counterparts. This Agreement may be executed
in counterparts, each of which shall be deemed an original
and all of which taken together shall constitute one and the
same instrument.
26. Waiver of Jury Trial. CUSTOMER AND
FIRSTAR WAIVE ALL RIGHTS TO TRIAL BY JURY IN
ANY LITIGATION OR OTHER PROCEEDING ARISING
OUT OF OR RELATING TO THIS AGREEMENT OR
ANY SERVICES USED BY CUSTOMER.
IN WITNESS WHEREOF, this Agreement has
been executed and delivered by the parties.
By:_
Title:
Date:
By:
Title:
Date:
(Customer)
FIRSTAR BANK, N.A.
❑ Check this box and attach signature pages if any
affiliates of Customer are party to this Agreement.
Firstar Wire Transfer Master Agreement: 4 page of 4
Charter Number: 13405 r>
�.
CRA Rating for Illinois: Satisfactory
The Lending Test is rated: Out-standing
The Investment Test is rated: Outstanding
The Service Test is rated: Needs to Improve
The major factors that support this rating include:
<. USB has demonstrated excellent responsiveness to credit needs with an
excellent distribution of home mortgage loans to LMI geographies. We also
noted an excellent distribution of consumer loans by the income level of the
borrower. The distribution of loans to small businesses is also excellent, both in
terms of size of the business and by geography. USB also has a high volume of
community development loans in this assessment area.-
< USB has made an excellent dollar volume of investments in relation to the
bank's limited presence in this highly competitive market. USB took a leadership
role in one housing related initiative.
< USB's accessibility to individuals of different income levels or to LMI
geographies is poor because of the limited number of branches serving this
large, urban assessment area. USB does not have any branches in the low-
'income geographies and has only one branch .located in a moderate- income
tract.
Description of Institution's Operations in Illinois
USB has one assessment area within the State of Illinois. This consists of two
counties within the greater Chicago MSA #1600.
1 R;'
USB has seven offices and eighteen ATMs in the State of Illinois.
Refer to the Market Profiles for the State of Illinois in Appendix C for detailed
demographics and .other performance context information for this assessment area
that received a full -scope review.
Scope of Evaluation in Illinois
Because this is the only assessment area within the State of Illinois, it received a
full -scope review and formed the basis for the rating for the state. Refer to the
Scope of the Evaluation table in Appendix A for the names of the counties in this
assessment area.
_1
103
Charter Number: 13405
We considered information from community organizations and various members of
the community for this evaluation. Information obtained from these contacts is
included in the Market Profile section of Appendix C.
LENDING TEST
Conclusions for Areas Receiving Full -Scope Reviews
The bank's performance under the Lending Test in Illinois is rated "Outstanding."
Based on full -scope review, the bank's performance in the Chicago MSA is
excellent.
Lending Activity
Refer to Table 1 in the State of Illinois section of Appendix D for the facts and data
used to evaluate the bank's lending activity..
USB's lending record in Illinois represents an excellent responsiveness to the credit
needs of its assessment area, primarily through its small business lending. In
1998, among similarly "situated commercial banks in the assessment area, USB
reported among the highest volumes of small business lending. Of the bank's total
reportable loans in Illinois, a significant portion were CRA reportable (86% of the
number were small business).
In the Chicago MSA, USB's Illinois deposits rank the bank 39`h in size with a market
share of 0.4 %. In this MSA, the bank is the number seven lender for small
business purposes with a, market share of 3 %. The bank's residential lending
ranking in the MSA is not meaningful.
Lending competition in USB's assessment area is intense, with 287 CRA reporters
in the Chicago MSA. In addition, 974 local and national HMDA reporters were
identified in the assessment area. USB's home purchase loans accounted for 57%
of the number of 'home mortgage loans it originated in Illinois. USG's home
improvement loans accounted for 18% and home mortgage loans for refinance
purposes accounted for 24% of the home mortgage loans it originated in Illinois.
USB also made a significant number of consumer loans during the evaluation and
requested that we include this data in our, analysis. USB generated 37,442
consumer loans, which is significant in light of the strong competition in this
assessment area from banks, finance companies, and other financial institutions
31. that offer consumer loans. USB's ability to generate this volume of loans is also
favorable in light of a very limited physical presence in the assessment area.
USB's small farm lending was not material in Illinois. Accordingly, the bank's small
104
Charter Number: 13405
Refinance Loans
Overall, USB's distribution of home refinance loans is excellent. An analysis of the
bank's nominal market share is not meaningful to this evaluation.
USB's distribution of lending in the low- income areas of the Chicago MSA exceeded
the owner - occupied demographics of the areas.
USB's distribution of lending in the moderate - income areas of the Chicago MSA
significantly exceeded the owner - occupied demographics of the areas.
Sma// Loans to Businesses
Refer to Table 5 in the State of Illinois section of Appendix D for the facts and data
used to evaluate the geographic distribution of the bank's origination /purchase of
small loans to businesses.
USB's geographic distribution of small loans to businesses reflects an excellent
dispersion throughout its assessment area.
USB's distribution of le6ding in the low- income areas of the Chicago MSA
substantially meets the business demographics of the areas. In addition- ,y =USB,'s
market share in these low- income areas exceeded its overall market share. £.
USB's distribution of lending in the moderate - income areas of the Chicago MSA
exceeded the business demographics of the areas. In addition, the bank's market
share in the MSA's moderate- income areas exceeded its overall market share.
Small Loans to Farms
Refer to Table 6 in the State of Illinois section of Appendix D for the facts and data
used to evaluate the geographic distribution of the bank's origination /purchase of
small loans to farms.
As previously stated, the USB's lending to small farms was not analyzed. The
bank's small farm lending accounted for less than 1 % of its total lending in Illinois.
Consumer Loans
Refer to Table 14 in the State of Illinois section of Appendix D for the facts and
data used to evaluate the geographic distribution of the bank's consumer loan
originations and purchases. USB's geographic distribution of consumer auto,
•.
Charter Number: 13405
USB's distribution of lending to low- income borrowers in the Chicago MSA was
well below the family income demographics of the area even when considering the
area's level of families that live below the poverty level.
USB's distribution of lending'to moderate - income borrowers in the Chicago MSA
substantially exceeded the family income demographics of the area.
Home Improvement Loans
Overall, USB's distribution of home improvement loans to borrowers of different
income levels is adequate. An analysis of the bank's nominal market share is not
meaningful to this evaluation.
USB's distribution of lending to low- income borrowers in the Chicago MSA was
well below the family income demographics of the area even when considering the
area's level of families that live below the poverty level.
USB's distribution of lending to moderate - income borrowers in the Chicago MSA
was below the family income demographics of the area.
Refinance Loans
Overall, USB's distribution of home refinance loans to borrowers of different
income levels in the full-scope assessment area is excellent. An analysis-�of the
bank's nominal market share is not meaningful to.this evaluation.
USB's distribution of lending to low- income borrowers in the Chicago MSA was
below he family income demographics of the area. When considering the area's
level of� families that live below the poverty level, the bank's distribution slightly
exceeds the demographic comparator.
USB's distribution of lending to moderate - income borrowers in the Chicago MSA
significantly exceeded the area's family income demographics.
Small Loans to Businesses
Refer to Table 10 in the State of Illinois section of Appendix D for the facts and
data used to evaluate the borrower distribution of the bank's origination and
purchase of small loans to businesses.
USB's distribution of small business loans reflects good responsiveness to the
credit needs of smaller businesses in the full -scope assessment area. The bank's
loan distribution to small business borrowers substantially meets the small business
108
Y
t�
t
Charter Number: 13405
volume of CD loans. This level of CD lending had a positive impact on the overall
rating we assigned to the Lending Test. The number and dollar of volume of CD
loans are indicated on Table 1 of Appendix C. The dollar volume represents 14%
of the bank's Tier 1 capital that is attributed to this assessment area. Although we
noted some evidence of complexity associated with these loans, we did not identify
many instances of innovative or leadership characteristics. Largest examples
include:
• Providing a $3,000,000 loan to Community Investment Corporation (CIC).
Through the CIC's Resource Apartment Lending Program, C1C originates
mortgage loans secured by multi - family rental properties in the Chicago MSA.
The purpose of this program is to conserve and revitalize older neighborhoods
and LMI housing in the MSA.
• Providing a $1,300,000 revolving line of credit to a local construction company
for the construction and rehabilitation of various real estate projects in the MSA
that provide housing for LMI individuals.
• Advancing a $3,000,000 loan to the Chicago Equity Limited Fund to provide
necessary bridge financing to fund equity contributions to approved housing
projects with tax credits.
Product Innovation and Flexibility
Product innovation and flexibility had a neutral impact on the Lending Test rating in
the State of Illinois. USB has two flexible home mortgage loan programs called
Home Advantage and Home Partners. As previously discussed, these programs
provide flexible underwriting for LMI borrowers. In the Chicago Assessment Area,
the bank used these programs to originate 34 home purchase loans totaling $3.4
million and three home refinance loans totaling $280 thousand.
NVESTMENT TEST
Conclusions for Areas Receiving Full -Scope Reviews
The bank's performance under the Investment Test in Illinois is rated
"Outstanding." Based on a full -scope review, the bank's performance in its only
Illinois assessment area, the Chicago MSA, is excellent.
Refer to Table 12 in the State of Illinois section of Appendix D for the facts and
data used to evaluate the bank's level of qualified investments.
During the evaluation period, USB made 26 investments totaling $8.9 million in the
Chicago MSA. The volume of investments is very high relative to USB's size within
4
the market. Opportunities for investment within the MSA are plentiful (refer to the
110
is
0
Charter Number: 13405
Regarding the closure in the low- income geography, USB management attempted
unsuccessfully to make arrangements with the new lessor to retain its rented space
in the facility. Upon closure, the accounts at the closed office were consolidated at
a nearby USB office located within approximately two - and -a -half miles.
USB's hours and services offered in the Chicago assessment area are good. Office
hours and services are comparable among all locations regardless of the income
level of the geography. Saturday hours are offered at most USB offices. USB's
standard loan and deposit products are offered at all locations. USB's products
include low- minimum, no -fee checking or no- minimum, no -fee checking with the
election of pay /social security check direct deposit. USB offers credit lines starting
at $ 1,000.
USB's ATM network offers a limited alternative delivery system for delivering teller
based services to LMI geographies and to LMI individuals. The distribution of
USB's ATMs in LMI geographies is less than the distribution of the population living
in such geographies in the Chicago MSA. Other alternative delivery systems, such
as telephone and Internet banking, were not weighted significantly when drawing
conclusions because the bank did not provide data on how LMI individuals and
geographies are impacted by these services.
Community Development Services
USB's performance in providing CD services is adequate in the Chicago MSA.
While community development opportunities in the assessment area are formally
structured and abundant, the environment for such opportunities is extremely
competitive because of the city's stature as a national hub for commerce and the
presence of numerous financial institutions.
In the Chicago MSA; USB has focused its CD activities on affordable housing and
the housing needs of LMI individuals.. This focus addresses community
development needs that were expressed by community contacts. USB's CD
development activities have occasionally stretched outside of housing needs. CD
service highlights from this evaluation period include:
• Participation in twelve homebuyer training workshops.
® Board membership on one organization promoting affordable housing.
Provided technical assistance to a community development organization in
preparation for its possible expansion into the Chicago. area.
Provided technical assistance to two organizations that foster job training and
address employment issues for LMI people.
® Partnered with a women's group to sponsor a small business seminar targeted
at women and minority owned businesses.
112
Charter Number: 13405
State of Illinois Full -Scope Areas
Chicago, IL IVISA #1600 .
Demographic Information for Full -Scope Area: Chicago MSA
Low
Moderate
Middle
Upper
NA'
Demographic Characteristics
#
% of #
% of #
% of #
% of #
% of #
Geographies (Census Tracts /BNAs)
1,468
18.53%
23.16%
35.49%
21.25%
1.57%
Population by Geography
5,886,733
11.80%
21.75%
40.03%
26.39%
0.04%
Owner Occupied Housing by Geography
1.250,124
3.61%
14.32%
47.17%
34.91%
0.00%
Businesses by Geography
204,330
5.76%
13.92%
38.82%
39.83%
1.67%
Farms by Geography
2.221
1.49%
6.84%
43.85%
47.32%
0.50%
Family Distribution by Income Level
1,466,804
21.67%
17.68%
23.39%
37.26%
NA
Distribution of Low- and Moderate - Income
577,168
20.90%
30.61%
37.11%
11.38%
0.00%
Families throughout AA Geographies
Median Family Income - $42,758
Median Housing Value - $124,745
HUD Adjusted Median Family Income for 1999 - $63,800
Unemployment Rate - 3.82%
Households Below the Poverty Level - - - 11.53%
1 -1 ine nn category consists of geographies that have not been assigned an income classification.
Source: 1990 U.S. Census and 1999 HUD updated MFI.
The assessment area consists of Cook and DuPage Counties of the nine county
Chicago MSA #1600. Chicago is part of the third largest metropolitan area in the
United States. The city is considered a transportation hub and is a major economic,
business, entertainment, and cultural center for the upper Midwest. Major
employers in the area include finance, manufacturing, information technology,
health care, retail, and the arts. Wealth is concentrated in suburban areas north
and west of the city of Chicago, generally outside of the bank's designated
assessment area. The city itself has large pockets of poverty and has a significant
percentage of low- and moderate - income census tracts. This assessment area
meets the definition of the regulation and does not arbitrarily exclude LMI
geographies.
USB has seven offices and two cash dispensing and 16 deposit accepting ATMs
located within the assessment area. Within the assessment area, USB has
generated $532 million in deposits which resulted in a deposit market share of
0.39 %. Banks in this assessment area with the highest deposit market shares are
First National Bank of Chicago (15% deposit market share), LaSalle Bank NA
(10 %), Harris Trust & Savings Bank (7 %), LaSalle Bank FSB (6 %), and Northern
Trust Company (6 %). This information was obtained from the June 30, 1999 FDIC
Deposit Market Share Reports.
Appendix. C -26
r
I .
Charter Number: 13405
Chicago is considered a financial center for the Midwest. The assessment area is
highly banked. Within these two counties are 238 banks operating nearly 1,500
branch offices. This does not include credit unions or finance companies. Banking
competition is intense and somewhat fragmented. Five major commercial
exchanges also play a prominent role in the city's financial prominence. They are
the Chicago Board of Trade, the Chicago Mercantile Exchange, the Chicago Board
Options Exchange, the Mid - America Commodity Exchange, and the Midwest Stock
Exchange. These are some of the world's largest and most influential exchanges.
Chicago has a large, sophisticated network of community development
organizations. The neighborhood nonprofit groups .join together with formal, city-
wide organizations to promote community development activities. These include
providing a forum for public housing policy, economic development, job creation
and job training efforts, homelessness, and social service matters. Chicago also
has a highly developed infrastructure of community development financial
institutions, foundations, and university urban affairs and research programs.
Several activist organizations are headquartered in Chicago. All of these factors
combine to provide countless opportunities for public - private partnerships that
foster community development. Because of the knowledge that the activist groups
and community development organizations have with CRA, banks have an
established market for involvement and playing leadership roles in establishing more
community development activities.
Three non - contiguous areas make up Chicago's Empowerment Zone (EZ)
established by HUD in 1994. They are the near West Side, Pilsen /Little Village, and
the near South Side. In addition, the city and the state of Illinois have recognized
portions of the city as participants in non - designated Enterprise Communities (EC).
These include the communities of Englewood, Calumet, and the remainder of the
West Side. Although not recognized by federal authorities as an Enterprise
Community, the city and state's designation will allow these,.communities to share
in many of the same types of benefits available to EZ and EC areas.
We reviewed information provided by nine community contacts made in the city of
;^ Chicago during the last two years. These were contacts made by the OCC and
another regulatory agency. These contacts provided background information on the
economy, the condition of housing, the types of housing and small business loans
available, the availability of financial services, and the responsiveness of banks
within the assessment area. The most commonly cited need involved a request for
financial counseling and special programs for first -time homebuyers. Several
commented on the vast need for home improvement loans or home equity loans
that could be used for the rehabilitation and- restoration of the older housing stock
found in Chicago. Over one -third of Chicago households are experiencing some
type of housing problem including such factors as excessive cost burden, physical
defects in the structure, and overcrowding. Another identified need involved job
`? creation and small business loan programs that would also include technical
assistance for small business owners.
Appendix C -27
L.3 ,,j a."✓ii{j OW
MSAIAssessment Area
.v
.4< 1 M M W li.�J
Small Loans to Businesses
Small Loans to Farms
Community Development
Charter Number: 13405
Table 1. Lendinq Volume
LENDING VOLUME State: Illinois Evaluation Period: January 1, 1998 to December 31, 1999
MSAIAssessment Area
% of Rated
Area Deposits
in MSAIAA'
Home Mortgage
Small Loans to Businesses
Small Loans to Farms
Community Development
Total Reported Loans
% of Rated Area Loans
V) in AA
N
S (000's)
N
S (000's)
N
S (000's)
T7$
(000's)
#
S(000's)
Full Scope
Chicago MSA
100.00
372
32,894
2,415
74,140
5
1,047
5
8,450
2,797
116,531
100.00
Deposit Data as of June 30, 1999
Appendix D -61
0
M
Charter Number: 13405
Table 3. Geoarat)hic Distribution of Hnmp Imnrnuomant 1 --
Geographic Distribution: HOME IMPROVEMENT State: Illinois Evaluation Period: January 1, 1998 to December 31, 1999
MSAIAssessment Area
Low Income
Geographies
Moderate Income
Geographies
Middle Income
Geographies
Upper Income
Geographies
Overall
Market
Rank'
Market Share by Geography"
Total Home
Improvement Loans
% Owner
Occ Units
% USB
Loans
% Owner
Dec Units
% USB
Loans
% Owner
Occ Units
% USB
Loans
% Owner
Occ Units
% USB
loans
Overall
Low
Mod
Mid
Upp
N
% of
Total'
Full Scope
Chicago MSA
3.61
7.46
14.32
14.93
47.17
. 41.79
34.91
35.82
75
0.13
0.11
0.10
0.13
0.15
67
100.00
ti
Based on 1998 Aggregate HMDA Data Only. Market rank is for all income categories combined.
Home improvement loans originated and purchased in the MSAIAA as a percentage of all home improvement loans originated and purchased in the rated area.
Appendix D -63
_...,. .,«,. ,...n1 �.ws:ar1e 6ww..Gi.7 � $s:,1i�.a:;a{ '.e.. L±r t �€�„+.a', s w r k � r y �e � .`'\w �Ri� ti; r a,.. ", �_ �I Sf;. - t
c2+a. .& �C..w :':zLw; is "" Sr.. �.L...;. C.....:.i+�_ «t 101:1• lr: .a'iw::� �.,uz i3.:...:._i
Charter Number: 13405
Table 5. Geographic Distribution of Small Lnans to RIISinP_CCPC
Geographic Distribution: SMALL BUSINESS State: Illinois Evaluation Period: January 1, 1998 to December 31, 1999
MSAIAssessment Area
Low Income
Geographies
Moderate Income
Geographies
Middle Income
Geographies
Upper Income
Geographies
Overall
Market
Rank'
Market Share by Geography'
Total Small
Business Loans
% of
Businesses
% USB
Loans
% of
Businesses
% USB
Loans
% of
Businesses
% USB
Loans
% of
Businesses
% USB
Loans
Overall
Low
Mod
Mid
Upp
N
% of
Total"
Full Scope
Chicago MSA
5.76
4.68
13.92
1 15.82
38.82
1 44.47 39.83
34.45
7 2.90
3.33
4.16
3.20
2.14
2,415
1 100.00
Based on 1998 Aggregate Small Business Data Only. Market rank is for all income categories combined.
Small loans to businesses originated and purchased in the MSAIAA as a percentage of all small loans to businesses originated and purchased in the rated area.
Appendix D -65
;;�
�w!�'i ka:.'i4C
Charter Number: 13405
Table 7. Borrower Distribution of Home Purchase I oanc
Borrower Distribution: HMDA HOME PURCHASE State: Illinois Evaluation Period: January 1, 1998 to December 31, 1999
MSAIAssessment Area
Low Income Borrowers
Moderate Income
Borrowers
Middle Income
Borrowers
Upper Income
Borrowers
Overall
Market
Rank'
Market Share by Borrower Income'
Total Home
Purchase Loans
% of
Families
% USB
Loans"
% of
Families
% USB
Loans"
% of
Families
% USB
Loans"
% of
Families
% USB
Loans"
Overall
Low
Mod
Mid
Upp
#
% of
Total"'
Full Scope
Chicago MSA
21.67
7.08
17.68
32.55
23.39
29.25
37.26
30.66
210
0.04
0.03
0.07
0.07
0.04
212
100.00
Based on 1998 Aggregate HMDA Data Only. Market rank is for all income categories combined.
As a percentage of loans with borrower income information available.
Home purchase loans originated and purchased in the MSAIAA as a percentage of all home purchase loans originated and purchased in the rated area.
Appendix D -67
Charter Number: 13405
Table 10. Borrower Distribution of Small Loans to Businesses
Borrower Distribution: SMALL BUSINESS State: Illinois Evaluation Period: January 1, 1998 to December 31, 1999
Businesses With Revenues
of $1 million or less
% Distribution of loans by Original Amount Regardless
of Business Size
Market Share'
Total Small Loans to
Businesses
MSAIAssessment Area
% Business"
% USB Loans—
$ 100,000 or
less
> $ 100,000 to
$250,000
> $250,000 to
$500,000
All
Rev
$ 1 Million or Less
N
% of Total""
Full Scope
Chicago MSA
70.33
61.49
96.31
0.95
2.73
2.90
2.81
2,415
100.00
The market consists of all other Small Business reporters in USB's assessment area and is based on 1998 Aggregate Small Business Data only.
Businesses with revenues of $1 million or less as a percentage of all businesses.
"' Small loans to businesses with revenues of $1 million or less as a percentage of all loans reported as small loans to businesses. No information was available for 33.29% of small loans to businesses originated and purchased by USB in the
Chicago MSA.
Small loans to businesses originated and purchased in the MSAIAA as a percentage of all small loans to businesses originated and purchased in the rated area.
Appendix D -70
Charter Number: 13405
Table 12. Qualified Investments
QUALIFIED INVESTMENTS State:.11linois Evaluation Period: January 1, 1998 to December 31, 1999
MSAIAssessment Area
Prior Period Investments'
Current Period Investments
Total Investments
Unfunded Commitments"
N
$(000's)
N
$(000's)
a
$(000's)
% of Total
N
$(000's)
Full Scope
Chicago MSA
0
0
26
8,942
26
8,942
100.00
0
0
r
t
Prior Period Investments' means investments made in a previous evaluation period that remains outstanding.
"Unfunded Commitments" means legally binding commitments reported on Report of Condition Schedule L• "Off•Balance Sheet Items ".
pp (j Appendix D -72
Charter Number: 13405
Table .14. Geographic and Borrower Distribution of Consumer Loans (Optional)
Geographic and Borrower Distribution: CONSUMER LOANS State: Illinois Evaluation Period: January 1, 1998 to December 31, 1999
MSAIAssessment
Geographic Distribution
Borrower Distribution
Total Consumer
Loans
Low - Income
Geographies
Moderate - Income
Geographies
Middle - Income
Geographies
Upper Income
Geographies
Low - Income
Borrowers
Moderate Income
Borrowers
Middle - Income
Borrowers
Upper - Income
Borrowers
Area
% of
Pop'
% of
USB
Loans
% of
Pop*
% of
USB
Loans
% of
Pop'
% of
USB
Loans
% of
Pop'
% of
USB
Loans
% of
Hshlds
% of
USB
Loans
% of
Hshlds
% of'
USB
loans
% of
Hshlds
% of
USB
Loans
% of % of
Hshlds USB
Loans
% of
b Total"
Full Scope
Chicago MSA
11.80
3.16
1 21.75
1 12.99
40.03
, 39.17
1 26.39
44.65
24.87
20.63
16.33
1 30.07
20.58
1 26.62
1 38.23
22.68
1 37,442
1 100.00
t
The Percentage of the population in the MSAIAssessment area that resides in the geographies.
Consumer loans originated and purchased in the MSAIAA as a percentage of all consumer loans originated and purchased in the rated area.
Appendix D -74
M M M M M :: LBO
Comptroller of the Currency
Administrator of National Banks
Public Disclosure
July 6, 1998
MAR 2 0 2000
LARGE BANK PROCEDURES
Community Reinvestment Act
Performance Evaluation
Star Bank, N.A.
Charter Number: 24
425 Walnut Street
Cincinnati, Ohio 45202
Office of the Comptroller of the Currency
Large Bank Supervision
250 E Street, SW
Washington, D.C. 20219
NOTE: 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.
Comptroller of the Currency
Administrator of National Banks
Public Disclosure
July 6, 1998
MAR 2 0 2000
LARGE BANK PROCEDURES
Community Reinvestment Act
Performance Evaluation
Star Bank, N.A.
Charter Number: 24
425 Walnut Street
Cincinnati, Ohio 45202
Office of the Comptroller of the Currency
Large Bank Supervision
250 E Street, SW
Washington, D.C. 20219
NOTE: 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.
it Bank, N.A. CRA Public Disclosure
General Information
ie Community Reinvestment Act (CRA) requires each federal financial supervisory agency to use its
ithority when examining financial institutions subject to its supervision, to assess the institution's record
meeting the credit needs of its entire community, including low- and moderate - income (LNE)
:ighborhoods, consistent with safe and sound operation of the institution. Upon conclusion of such
:amination, the agency must prepare a written evaluation of the institution's record of meeting the credit
:eds of its community.
ais document is an evaluation of the CRA performance of Star Bank, National Association,
incinnati, Ohio (Star Bank) prepared by the Office of the Comptroller of the Currency, the
.stitution's supervisory agency, as of July 6, 1998. The agency evaluates performance in assessment
'ea(s), as they are delineated by the institution, rather than individual branches. This assessment area
�A) evaluation may include visits to some, but not necessarily all of the institution's branches. The
;ency rates the CRA performance of an institution consistent with the provisions set forth in Appendix A
12 C.F.R. Part 25.
1
j
$
i
1!
I
i
,r
r Bank, N.A.
Overall CRA Rating
CRA Public Disclosure
stitution's CRA Rating: This institution is rated Satisfactory.
e following table indicates the performance level of Star Bank with respect to the Lending,
iestment, and Service Tests:
Performance Levels
Star Bank
Performance Tests
Lending Test*
Investment Test
Service Test
Outstanding
High Satisfactory
X
X
X
Low Satisfactory
Needs to Improve
Substantial Noncompliance
*The Lending Test is weighted more heavily than the Investment and Service Tests when arriving at an overall rating.
ie major factors that support this rating include:
!nding Test
The bank's responsiveness to community credit needs is good considering the most pressing credit
needs in its assessment areas.
Lending performance in the State of Ohio is good. Overall lending performance is excellent in the
Cleveland- Lorain - Elyria, OH MSA, and with 16% of the bank's deposits that MSA represents the
bank's largest market area in Ohio. Lending in the remaining Ohio assessment areas is generally
adequate.
Lending performance in the Cincinnati, OH multistate MSA is excellent, particularly with its home
loan distribution in low- and moderate - income areas. There is also a high level of community
development loans in this assessment area.
Lending performance in Indiana is adequate for this small assessment area with just 3% of the
bank's deposits.
Lending performance in Kentucky is adequate. Small business lending performance is excellent in
the Owensboro MSA and in the Central Kentucky assessment area.
Lending performance in the Louisville, KY multistate MSA.is adequate. Small business lending is
good.
4
ank, N.A.
There are no unexplained gaps in geographic lending distribution.
CRA Public Disclosure
The bank offers two flexible and affordable home loan products for low- and moderate - income
borrowers, both under the bank's "Home Advantage Program (HAP) ". One product is for home
purchase, and the other is for home improvement. The program is available to certain borrowers,
primarily low- and moderate - income borrowers, based on county household income guidelines.
Also, the program provides for lower down payments and less stringent underwriting guidelines.
Under the HAP program, the bank approved 667 home purchase loans in 1997 totaling $37.8
million, and 286 home improvement loans totaling $1.3 million. These products are available in
most assessment areas.
Arnent Test
Investment activities. reflect good responsiveness to needs in the assessment areas and total
approximately $22.4 million in volume.
Investments in the Cincinnati, OH and Louisville, KY multistate MSAs reflect good and excellent
performance, respectively.
Investment levels are good in Ohio and adequate in Kentucky. However, the investments are
concentrated among a few assessment areas. In Indiana, performance is also adequate, but
opportunities for investment are limited.
ice Test
The bank provides a good level of services to its assessment areas. Services include traditional
branch delivery systems and alternative delivery systems, such as ATMs and banking by phone. In .
addition to their overall convenience to all customers, these alternative delivery systems are
available to those individuals who lack or cannot otherwise afford transportation to banking
facilities, and are a time /cost savings for small businesses with limited resources.
T he bank's delivery systems are accessible to all portions of its assessment areas. Services,
including business hours, meet the needs of the customers living in the bank's assessment areas,
including LMI geographies, and/or individuals. Changes in branch locations have not adversely
affected the availability of delivery systems within its assessment areas, and in some assessment
areas, the bank has opened branches in LMI geographies.
The bank provides a good level of community development services overall, and an excellent level
in the Cincinnati, OH multistate MSA. Community contacts indicate the bank is a community
development leader in the Cincinnati, OH multistate MSA. These contacts included governmental
officials who indicated the bank strongly influences the development of its communities, including
economically depressed geographies.
5
Star Bank, N.A.
CRA Public Disclosure
• The bank provides credit and financial counseling among other important services. Of particular
note is the bank's Loan-A -Thou program. These one -day neighborhood meetings provide
participants with the ability to apply for credit. The bank also maintains partnerships with a
number of organizations that provide technical assistance on financial matters, sponsor credit
counseling and home buyer workshops, and provide planning counseling to small businesses,
including first time or start-up small businesses. Overall community development services have
reached many individuals and small businesses, including those that are LMI, or those individuals
who live in economically depressed geographic areas. Community contacts specifically
highlighted the need for such services.
I
it Bank, N.A.
Description of Institution
CRA Public Disclosure
ar Bank, owned by Star Banc Corporation, is a multistate bank holding company with headquarters in
.ncinnati, Ohio. The bank has total assets of $13.9 billion as of March 31, 1998 and operates a branch
:twork throughout Ohio, and portions of Indiana and Kentucky. Star Bank is a full service financial
stitution that provides a wide range of consumer, commercial and trust financial products, including
:posit, credit, and investment services. While the holding company has operating subsidiaries that
:nerate loan activity, such as Star Banc Finance, the bank makes loans directly and has no operating
:bsidiaries that lend to the general public. There are no financial or legal impediments to the bank's
RA performance.
he table below shows, a significant portion (30.7 %) of the bank's loan portfolio consists of home
ortgages (1 -4 and multifamily), which we determined was a significant credit need within the bank's
:sessment area.
Perceatofioa
:.Portfoli o'
n
.......
.......... ...............:...............
io
:.::::::::::.:::::.::.::::: .::..::::::::::................ P ............................ ...........................,... .
'Averaae:Gross:Isoans::::;;
I Construction and Land Develooment Loans 1 4.8% 1
Loans Secured by Farmland 1 0.4%
Loans Secured by 1-4 family residential properties 27.3%
Loans Secured by multifamily residential properties 3.4%
Loans to Finance Agricultural Production 0.3%
Consumer Loans to Individuals (includes Credit Cards) 15.5%
I Commercial and Industrial Loans 1 23.0% 1
I Other Loans 1 25.3% 1
Recent Acquisitions
)n February 6, 1998, Star Banc completed the acquisition of Great Financial Corporation, Louisville,
,entucky. The acquisition added approximately $3.0 billion in assets, $1.9 billion in deposits and a
)ranch network of forty -three offices in Kentucky and two in Indiana. In late February, Star Bank revised
is assessment areas to incorporate Great Financial Corporation. Accordingly, the CRA activities of Great
. inancial Corporation are included in this Performance Evaluation, primarily in the discussion of new
assessment areas located in Kentucky and the Louisville, KY multistate MSA. However, since this
acquisition preceded the examination by a little more than a month, we did not weight heavily the
activities in these new assessment areas in the bank's component and overall CRA ratings.
7
it Bank, N.A. CRA Public Disclosure
Scope of Evaluation
RA Evaluation Period and Scope
.e examined the bank's CRA performance from our last examination dated June 30, 1996 to
larch 31, 1998. Unless noted in our analysis comments and data tables, the bank's performance
formation is primarily through March 31, 1998. Home lending data for the full years of 1996 and 1997
e used for presentation and analysis purposes. Also, bank reported 1997 small business and farm
ading data was used due to its reliability. Our.testing of bank reported 1996 data revealed some
accuracies. Aggregate 1996 market data for all reporting financial institutions was used in our
imparisons of home lending products and 1997 aggregate market data was used for comparisons of
iall business and small farm lending, as these were the most recent data available. Information relating
small farm lending was not considered in the rating of this institution, primarily because it is not a
;nificant part of the bank's business strategy. However, data relating to the bank's small farm lending
e included in Tables 6 and 11. The bank did not present consumer loan data for review, therefore, it was
>t considered in our analysis.
atings
nce Star Bank has branches in three states, we evaluated performance and assigned a state rating for
hio, Indiana and Kentucky. We also evaluated performance and assigned a rating for the Cincinnati, OH
id Louisville, KY multistate MSAs, as the bank had branches in two or more of the states within each of
ese MSAs. Performance in these two MSAs is not included in the State of Ohio or Kentucky ratings.
he bank's overall rating is a blend of the state and multistate MSA ratings. Performance in Ohio and the
incinnati, OH multistate MSA received the most weight in assigning the bank's overall rating because
.ese areas comprise 47% and 34% of bank deposits, respectively. Within each state, we gave greater
eight to those assessment areas where the bank had a larger market presence, considering such factors as
:posit levels.
election of Full -Scope Assessment Areas for Review
ank management identified 18 assessment areas in Ohio, Indiana, and Kentucky that include 13 MSAs.
chile we reviewed and analyzed the bank's performance in all assessment areas, the state ratings are
ised primarily on those assessment areas that received full -scope review. Of the bank's 18 assessment
,,,eas, we selected 7 for full -scope review. Five of these assessment areas were selected to provide better
sight of the bank's performance in each state, and include both MSA and non -MSA (rural) areas. In
;lecting these assessment areas, we desired a cross representation of the bank's assessment areas and
�nsidered such factors as the income levels of the assessment area's geographies, and the bank's market
-esence as reflected by its lending and deposit activity. The Cincinnati, OH and Louisville, KY
.ultistate MSAs were the remaining full -scope areas.
Dr these full -scope assessment areas, we verified and validated performance data, such as investment
:tivity, and conducted outreach activities, where possible, to determine assessment area needs and
)portunities. We also compared and analyzed bank performance activity to available demographic
9
Star Bank, N.A.
CRA Public Disclosure
information, such as the number of home mortgages originated by the bank in a particular assessment
area's various income geographies, primarily low and moderate, to the level of owner- occupied housing
units in these geographies. This allowed us to measure and evaluate the bank's performance in the
context of the particular circumstances present in each assessment area. Performance in the limited -scope
assessment areas was compared to the relative performance of the full -scope assessment areas.
The following table highlights the full- and limited -scope assessment areas. Full -scope assessment areas
represent a significant portion of the bank's operations, comprising 55% of the total geographies within
which the bank operates, 60% of the bank's branches, and 65% of its deposits. Deposit information for
June 30, 1998 is shown in the table as it was the most recent.
0
it Bank, N.A.
CRA Public Disclosure
10
.... .. .. .
StarBank Assessment:` Areas':::::::::: >:!
.........................
:':::
??'
Geographies
% LNII
Total
Deposits
% of Deposits
Assessment Areas:
Branches
(000's)
(6/30/98)
!iEi3eild�t>`•.E� '..Il!T.KY.. tti! ?:':' ?� >'< >>
:;;:.»:+.;.;;:::.::;•:;.;:::,: �:;,., �; s
358
0
22 /0
8 9
$3,621,279
0
34/0
:.;::?::.;:;,:;; : :.::::::.:::::.::..:::::.•::::.
1
33 o
22
-
$ 23, �3
o
9 0
X.
:................... ....................................
.. ...
...............................
Full Scope
Eastern Indiana
34 1
21% 1
14 1
$336,422
3%
;N1IJ . IC Y
Full Scope
MSA 5990 Owensboro
21
19%
7
$305,066
3%
Central Kentucky
40
8%
8
$239.270
2%
Limited Scope
MSA 2440 Evansville- Henderson
11
27%
1
$29,475
<1%
MSA 4280 Lexington
69
32%
4
$203,194
2%
Combined Non -urban AAs
24
4%
3
$47,854
<1%
Full Scope
MSA 1680 Cleveland - Lorain - Elyria
694
33%
52
$1,903,050
18%
Fayette County
7
29%
1
$76,127
1%
Limited Scope
MSA 0080 Akron
148
32%
17
$288,116
3%
MSA 1320 Canton - Massillon
75
27%
1
$32,665
<1%
MSA 1840 Columbus
300
36%
35
$995,854
9%
MSA 2000 Dayton - Springfield
244
28%
28
$553,929
5%
MSA 3200 Hamilton - Middletown
73
34%
16
$367,954
3%
MSA 3400 Huntineton- Ashland
14
21%
5 .
$172,933
2%
MSA 9320 Younestown- Warren
74
43%
1
$21,510
<1%
Combined Non-urban AAs
68
31%
19
$622,769
6%
10
Star Bank, N.A. CRA Public Disclosure
Community Contacts
During the examination, we made 19 community contacts. Those contacted included other regulatory
agencies and individuals and groups suggested by the bank. These contacts ranged from local
governmental agencies to small community- focused organizations. Also, we sent several letters to
community representatives to provide a broader range of outreach to the many communities the bank
serves. These letters solicited information on specific community needs and Star Bank's CRA
performance. The most predominant needs identified were for affordable housing, general consumer
loans, and small business loans. In terms of services, the contacts most frequently highlighted counseling
for new home buyers and credit counseling. The bank has developed credit products and community
development services to meet these needs, and we discuss the bank's success under the state and
multistate MSA comments.
11
Bank, N.A. CRA Public Disclosure
Fair Lending Review
e examined for compliance with the Equal Credit Opportunity Act (ECOA) and the Fair Housing Act
bsequent to this CRA examination. We reviewed the bank's policies and procedures and conducted
;ling to check for any areas of noncompliance. Our testing included a comparative file review of a
nple of various loan products. We tested for discrimination based on race or color, religion, national
gin, sex, marital status, age, receipt of income from any public assistance program, and the exercise of
y right under the Consumer Credit Protection Act. We specifically reviewed 295 conventional,
;idential real estate applications. The sample also included specialized home lending products, such as
)se loans originated under the bank's HAP, which has flexible underwriting standards. We focused on
rchase -money applications received between January 1, 1997 and March 30, 1998, and compared the
nk's underwriting practices between white and black applicants.
used on the sample of files reviewed, we did not detect discriminatory underwriting practices. The
ark's policies, internal controls and training are adequate to ensure ongoing compliance with fair lending
12
tar Bank, N.A.
CRA Public Disclosure
CINCINNATI, OH MULTISTATE MSA RATING
:RA Rating for the MSA:
The'Jending test is rated:
The investment test is rated:
The service test is rated:
Outstanding
Outstanding
High Satisfactory
Outstanding
[he major factors that support this rating include:
il The bank's variety of credit products is an excellent response to the credit needs of the assessment area.
P The bank's geographic distribution of home loans and small business loans show an excellent
penetration throughout the various geographies of the MSA.
The distribution of home loans to borrowers of different income levels is adequate to low - income
families, but excellent to moderate- income families.
9 The distribution of small business loans to businesses of different sizes is good.
• The level of community development lending is excellent.
The volume of qualified investments is good and responsive to the MSA's community development
needs.
The bank's delivery systems are accessible to all portions of the assessment area, including LMI areas,
i.: and the provision of community development services is excellent.
Description of Institution's Operations in the MSA
The bank's operations in this multistate MSA include the Ohio portion (Clermont, Hamilton, and Warren
:Counties), the Northern Kentucky portion (Boone, Campbell, Kenton and Pendleton Counties), and the
:Indiana portion (Dearborn County).
.he following table provides basic MSA demographic data by geography income level.
13
nk, N.A.
CRA Public Disclosure
LOUISVILLE, KY MULTISTATE MSA RATING
Rating for the MSA:
to lending test is rated:
ie investment test is rated:
ie service test is rated:
Satisfactory
Low Satisfactory
Outstanding
Low Satisfactory
iajor factors that support this rating include:
ae variety of credit products offered by the bank is an adequate response to the credit needs of the
[SA.
he geographic distribution of home loans is adequate, while the geographic distribution of small
lsiness loans is good.
he distribution of home loans to borrowers of different income levels is adequate, while the
istribution of small business loans to small businesses is excellent.
'he bank has an excellent volume of qualified investments that are responsive to community
.evelopment needs.
'he bank's delivery systems are accessible to all portions of the assessment area, including LMI areas.
ription of Institution's Operations in the MSA
bank's operations in this multistate MSA include the Kentucky portion (Jefferson County), and the
ana portion (Floyd County). These operations were acquired by Star Bank as a result of its February
3, acquisition of Great Financial Corporation, Louisville, Kentucky.
ordingly, the CRA activities of the former Great Financial Corporation are included in this
'ormance Evaluation, but these new assessment areas located in Kentucky and the Louisville, KY
tistate MSA have been under the management of Star Bank for less than sixty (60) days of the period
)mpasses by this examination.
following table provides basic demographic data concerning the NISA by income level of the
graphies.
21
Star Bank, N.A.
CRA Rating for Ohio:
The lending test is rated:
The investment test is rated:
The service test is rated:
OHIO STATE RATING
Satisfactory
High Satisfactory
High Satisfactory
High Satisfactory
The major factors that support this rating include:
• Overall, the bank's responsiveness to community credit needs is good.
CRA Public Disclosure
• Geographic distribution of home loans among the assessment areas is good.
• The overall distribution of home loans by borrower income level is generally adequate in connection
with low- income borrowers, but is excellent for moderate - income borrowers.
• The bank offers two flexible home loan products for low- and moderate - income borrowers, both under
the bank's HAP program.
• Overall, geographic distribution of small loans to businesses located in LMI geographies is adequate
among the assessment areas. The overall distributions of small loans to small businesses is good.
• The bank originated approximately $4.0 million in total qualified community development loans in
Ohio.
• Home and small business lending performance in the Cleveland- Lorain -Elyria MSA is excellent.
• Home and small business lending performance in the Akron MSA is stronger than the state's overall
lending performance. One community development loan totaling $322,000 was originated in this MSA
during the evaluation period.
• Home lending performance in the Canton - Massillon MSA is stronger, and small business lending is
consistent with the state's overall lending performance. This performance affects but does not change
the state's overall lending rating primarily because the bank had such a low volume of home and small
business lending in this area.
• In the Columbus, Dayton - Springfield and Huntington - Ashland MSA, home lending performance is
weaker than, and small business lending is consistent with the state's overall lending performance. One
qualified community development loan totaling $1.5 million was originated in the Dayton - Springfield
MSA.
• Overall, home and small business lending performance in the Hamilton - Middletown MSA and the non -
urban areas of Ohio, such as Fayette County, is weaker than the state's overall lending performance.
27
Star Bank, N.A.
INDIANA STATE RATING
CRA Rating for Indiana: Satisfactory
The lending test is rated: Low Satisfactory
The investment test is rated: Low Satisfactoa
The service test is rated: Low Satisfactory
The major factors that support this rating include:
CRA Public Disclosure
• The geographic distribution of home loans is good, and the distribution by borrower income level is
adequate.
• The bank offers two flexible home loan products for low- and moderate- income borrowers.
• The geographic distribution of small loans to businesses in low- and moderate - income areas is poor.
The distribution of loans to small businesses is good.
• There are no unexplained gaps in home and small business lending.
• The bank has a small level of qualified investments within its one assessment area in Indiana, but
opportunities for qualified investments are limited.
• ' The bank's services are readily accessible to all geographies in the bank's assessment area.
Description of Institution's Operation in Indiana
Excluding the Cincinnati, Ohio multistate MSA, and the Louisville, Kentucky multistate MSA the bank
has one assessment area in Indiana, a rural (non -urban) area in eastern Indiana, which includes the
counties of Fayette, Randolph, and Wayne. The state rating for Indiana is predicated on the bank's
performance in this area, which we reviewed in -depth (full scope analysis).
The following table highlights some important demographic data for the Indiana assessment area:
k, N.A.
CRA Public Disclosure
KENTUCKY STATE RATING
Rating for Kentucky:
he lending test is rated:
he investment test is rated:
he service test is rated:
Satisfactory
Low Satisfactory
Low Satisfactory
Low Satisfactory
tjor factors that support this rating include:
he bank is responsive to community credit needs.
►verall, the geographic distribution of home loans among the state's assessment areas is adequate.
'he distribution of home loans by borrower income level among the assessment areas is generally
dequate.
'he bank offers two flexible home loan products for low- and moderate - income borrowers, both
nder the bank's HAP program.
)verall, the geographic distribution of small loans to businesses among the state's assessment areas
adequate. Overall, the distribution of small loans to small businesses among the state's
.ssessment areas is excellent.
.ending performance is adequate in the Lexington and Owensboro MSAs, and the Central
Centucky assessment area which are the state's largest assessment areas by deposit levels. The
) erformance in these areas is consistent with the state's overall lending performance.
Tome lending performance in the Evansville- Henderson MSA is consistent with, while small
)usiness lending is weaker than, the state's overall lending performance.
overall lendiing performance in the non -urban areas of Kentucky is less than the state's overall
.ending performance.
The bank did not make any community development loans in the State. However, due to their size
and CRA reporting requirements, the bank reported some community development - related loans as
;mall loans to businesses and we considered them in our analysis of small business lending.
There are no unexplained gaps in home or small business lending.
T'he bank has made an adequate level of qualified investments within the State. These investments
are concentrated in the Lexington MSA. The volume in other assessments areas is relatively low.
The bank's services are accessible to all geographies in the state's assessment areas.
52
Bank, N.A. CRA Public Disclosure
APPENDIX A: Summary of Multistate Metropolitan Area
and State Ratings
State of Ohio
High Satisfactory
High Satisfactory
High Satisfactory
. Satisfactory
Cincinnati, OH Multistate
Outstanding
High Satisfactory
Outstanding
Outstanding
MSA
State of Indiana
Low Satisfactory
Low Satisfactory
Low Satisfactory
Satisfactory
State of Kentucky
Low Satisfactory
Low Satisfactory
Low Satisfactory
Satisfactory
Louisville, KY Multistate
Low Satisfactory
Outstandini
Low Satisfactory
Satisfactory
I MSA
`
:n.
4;.
lA