Orders Issued Under Bank Merger Act - Allfirst Financial Inc

Federal Reserve Bulletin, April, 2001 by Robert Dev. Frierson

Allfirst's distribution of branches and ATMs was considered by examiners to be reasonable and to serve all income-level areas of its assessment area. Twenty-six percent of Allfirst's branches and 29 percent of its nonbranch ATMs were in LMI census tracts. Branch openings and closings did not adversely effect accessibility by LMI individuals. In the City of Baltimore, ten of Allfirst's 14 branches are in LMI census tracts, and a bank branch operates within one mile of each of the LMI neighborhoods identified by MCCD in its comment. Examiners found that all branches offered a common set of traditional banking products and services.(10) During the CRA examination period, Allfirst also participated in 24 community development events in Baltimore and surrounding counties to promote home ownership and small business development.

A fair lending review of Allfirst conducted during the CRA examination period did not identify any violations of antidiscrimination laws and regulations. Examiners stated that the bank had an effective system in place to ensure compliance with fair lending laws and regulations.

C. Conclusion on CRA Performance

The Board has considered carefully the entire record of Allfirst's CRA performance, including MCCD's comments, Allfirst's response, Allfirst's most recent CRA performance examination, and supplemental information concerning Allfirst's housing-related lending and small business lending. Based on all the facts of record, the Board concludes that CRA considerations are consistent with approval of the proposal.

Other Considerations

The Board also has concluded that the factors it is required to consider under section 9 of the Act, including Allfirst's financial condition, the general character of its management, and the proposed exercise of corporate powers, are consistent with approval of these notices.(11)

Conclusion

Based on the foregoing and all the facts of record, the Board has determined that the notices should be, and hereby are, approved. The Board's approval is specifically conditioned on Allfirst's compliance with all commitments made in connection with the proposal. The commitments and conditions relied on by the Board are deemed to be conditions imposed in writing by the Board in connection with its findings and decision and, as such, may be enforced in proceedings under applicable law.

The Board's approval is subject to the establishment of the proposed branches within one year of the date of this Order, unless such period is extended by the Board or the Federal Reserve Bank of Richmond, acting pursuant to delegated authority, and to approval of the proposal by the appropriate state authorities.

By order of the Board of Governors, effective February 5, 2001.

(1.) Deposit and state ranking data are as of June 30, 2000.

(2.) 12 U.S.C. [sections] 2901 et seq.

(3.) See Interagency Questions and Answers Regarding Community Reinvestment, 64 Federal Register 23,618 and 23,641 (1999).

(4.) Allfirst, formerly The First National Bank of Maryland, converted from a national charter to a state charter in December 1998.