| SouthState
Lending Disparities Triggered
CRA Protest But Fed OKs
Admitting Weak Carolinas
by
Matthew R. Lee,
Patreon Substack
SOUTH
BRONX / SDNY, Dec 13
–
When First Republic Bank
failed / was given to JP
Morgan Chase, a small list of
other regional banks came into
focus as in danger, banks
whose lending Inner City Press
and Fair Finance Watch had
been scrutinizing, even more
so that the 2023 data is out.
This week
Inner City Press filed with
the Fed, a timely first
comment on, the Applications
of SouthState Corporation to
merge with Independent Bank
Group, Inc., and Independent
Bank.
SouthState
in South Carolina in 2023 -
data not yet included in any
CRA exam - made 5013 mortgage
loans to whites, and only 228
loans to African Americans.
Meanwhile it denied only 670
applications from whites, and
fully 195 from African
Americans. SouthState should
be referred to
DOJ.
SouthState
in North Carolina in 2023 -
data not yet included in any
CRA exam - made 1334 mortgage
loans to whites, and only
FIFTY SEVEN loans to African
Americans. Meanwhile it denied
only 173 applications from
whites, and fully 20 from
African Americans.
SouthState
in Georgia in 2023 - data not
yet included in any CRA exam -
made 1176 mortgage loans to
whites, and only 318 loans to
African Americans. Meanwhile
it denied only 304
applications from whites, and
fully 88 from African
Americans.
Nationwide
in 2023, SouthState made 7798
mortgage loans to whites, and
only 947 loans to African
Americans. Meanwhile it denied
only 2491 applications from
whites, and fully 558 from
African Americans.
Why would
regulators even consider
approving its expansion?
On August 9,
SouthState submitted to the
Fed a response - that deals
only with Independent Bank.
On September 18,
the Fed asked SouthState
questions including "Confirm
that no consumer products or
community development programs
or services offered by either
organization will be
discontinued by the combined
organization as a result of
the proposed transaction,
other than those identified in
Confidential Exhibit 18 to the
application."
Inner City Press
has submitted a FOIA request
with the Fed for that
obviously CRA-material
Exhibits.
No thanks
to the Fed, Inner City Press
got the exhibit - SouthState
just withdrew its request for
confidential treatment, of
this: "CONFIDENTIAL
SouthState Bank, N.A.
Independent Bank
Discontinued Independent Bank
Products and Services
June 2024 SSC and IBTX
currently plan on
discontinuing Independent
Bank’s mortgage warehouse
program and selling its Shared
National Credits (SNC)
portfolio. Almost all
purchased SNCs are in
Independent Bank’s commercial
loan portfolio, with the
largest single industry
concentration in energy."
But there is more
being withheld. SouthState
filed on September 30: "Please
see Confidential Exhibit 1 to
the Confidential Appendix for
additional information on
branch actions SouthState may
plan to take that are
unrelated to the proposed
transaction."
On December 13
the Fed rubber stamped the
deal, even as it admitted it
is order poor performance in
South Carolina and poor
geographic distribution of
SouthState's loans in North
Carolina. This is today's Fed.
***
Your
support means a lot. As little as $5 a month
helps keep us going and grants you access to
exclusive bonus material on our Patreon
page. Click
here to become a patron.
Feedback:
Editorial [at] innercitypress.com
SDNY Press Room 480, front cubicle
500 Pearl Street, NY NY 10007 USA
Mail: Box 130222, Chinatown Station,
NY NY 10013
Reporter's mobile (and weekends):
718-716-3540
Other, earlier Inner City Press are
listed here,
and some are available in the ProQuest
service, and now on Lexis-Nexis.
Copyright 2006-2024 Inner City
Press, Inc. To request reprint or other
permission, e-contact Editorial [at]
innercitypress.com
|
,
