Orders issued under Bank Holding Company Act

Federal Reserve Bulletin, Summer, 2004 by Robert DeV. Frierson

JP Morgan Bank also was rated "outstanding" for its investment performance in light of its excellent record in the bank's assessment areas. Overall, JP Morgan Bank's significant portfolio of qualified investments and grants, totaling $1.1 billion, included $313 million in new investments since the previous examination. These investments focused on affordable housing, economic development, community services, and revitalization and stabilization projects. Examiners concluded that the bank's investments reflected excellent responsiveness to the most significant credit and community development needs in the bank's assessment areas. (40)

JP Morgan Bank received an "outstanding" rating on the service test in light of its performance in all assessment areas. In particular, examiners noted that its branches were readily accessible to all portions of the bank's assessment areas. Examiners reported that JP Morgan Bank opened and closed branches and automated teller machines ("ATMs") during the evaluation period, concluding that these changes did not adversely affect the overall accessibility of the bank's delivery network. In addition, examiners noted that extended morning, evening, and weekend hours were tailored to accommodate the convenience and needs of the assessment areas, particularly LMI areas. Examiners also noted that JP Morgan Bank offered multiple alternative delivery systems that enhanced the distribution of banking services, such as a network of 329 ATMs in which 28 percent were in LMI areas. Many of these ATMs feature instructions in Spanish, Korean, Chinese, French, Italian, Russian, or Portuguese. Examiners stated that JP Morgan Bank offered Chase Online Banking for Small Businesses, which allowed customers to view business and personal accounts together and pay employees electronically. In addition, they reported that JP Morgan Bank offered Ready Pay Electronic Transfer Accounts to provide people without bank accounts an opportunity to receive direct deposits of government payments.

New York. JP Morgan Bank received an "outstanding" rating under the lending test in its New York assessment area. (41) Examiners concluded that an analysis of the bank's lending activity, distribution of loans among borrowers of different income levels and businesses of different sizes, and community development loans demonstrated excellent performance with good geographic loan distribution. Specifically, examiners noted that the overall geographic distribution of HMDA-reportable and small business loans reflected good penetration in LMI geographies. Examiners also concluded that home purchase and refinance lending by JP Morgan Bank in LMI geographies generally exceeded the performance of the aggregate lenders (42) in low-income census tracts and moderate-income census tracts. In addition, examiners found that JP Morgan Bank's performance equaled or exceeded the performance of the aggregate lenders in home purchase and refinance lending to LMI borrowers.

Examiners also commented favorably on JP Morgan Bank's performance in small business lending, noting that the overall distribution of small business loans across different income-level geographies was good and that performance in LMI census tracts equaled or exceeded the aggregate lenders' performance. The distribution of loans to businesses of different sizes was considered excellent in light of the proportion of loans for $100,000 or less, the number of assessment area loans to businesses with gross annual revenues of $1 million or less, and JP Morgan Bank's performance relative to the aggregate lenders.