| CRA
Challenge to Peoples Security Bank FNCB
Results in FDIC Fair Lending Condition
By Matthew
Russell Lee, Patreon Maxwell
Book
SOUTH BRONX, July
12 – The FDIC on July 12
imposed a fair lending
condition on banks Inner City
Press / Fair Finance Watch
challenged last November:
"Fair Finance
Watch has been reviewing
Peoples Security Bank and
Trust Company and FNCB Bank
including their 2022 HMDA data
not taken into account in any
CRA exam and finds it
troubling. In
Pennsylvania in 2022, Peoples
Security Bank and Trust
Company made 532 HMDA-reported
loans to whites - and only
FOUR to African Americans,
while denying five
applications. FNCB
Bank in Pennsylvania in 2022
made 247 HMDA-reported loans
to whites - and only ONE to an
African Americans, while
denying three applications. A
referral should be made to the
DOJ for fair lending
violations."
At that time, the
FDIC wrote: "Matthew
Lee, Esquire Executive
Director Inner City Press/Fair
Finance Watch P.O. Box 20047
New York, New York 10017 Dear
Mr. Lee: We received your
e-mail dated November 10,
2023, regarding the
application for Peoples
Security Bank and Trust
Company to merge with FNCB
Bank. We reviewed your
correspondence in accordance
with the guidelines of 12
C.F.R. Section 303.2(c) and
303.2(l), and we consider it a
protest... Any future comments
should be sent to the
applicant and to this office."
The bank's outside counsel
Troutman Pepper
responded. But now in
July 2024:
"Dear Mr. Lee:
We are writing to
inform you that the
FDIC approved
Peoples Security
Bank and Trust
Company’s
application to merge
with FNCB
Bank. As part
of the application
review process,
we
investigated the
issues you raised in
your e-mail dated
November 10, 2023,
and after
conducting our
own analysis, the
FDIC approved the
application with
conditions... In the
course of reviewing
public input on the
application, the
FDIC received an
adverse
comment from a
protester that was
considered a CRA
protest. The
CRA protest was
critical of
Peoples Security
Bank and Trust
Company’s and FNCB
Bank’s home mortgage
lending
efforts to
Black applicants in
Pennsylvania and
asserted that the
lack of lending was
discriminatory
and should be
referred to the
Department of
Justice... After a
careful review of
the concerns, the
FDIC decided to
approve the
application with
the following
condition.
This condition will
help ensure Peoples
Security Bank and
Trust Company
meets the home
mortgage lending
needs of the Black
population in its
assessment
areas. Within
30 days of
consummation, adopt
a Fair Lending
Action Plan deemed
acceptable by the
FDIC to
address low levels
of home mortgage
applications from,
and lending to,
Black applicants and
borrowers, and
in majority-minority
areas, and provide
the New York
Regional Office with
quarterly, written
updates on its
progress under the
plan."
Watch
this site.
***
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