March 16, 2010
Community Reinvestment Commitment of Northeast Bank
Northeast Bank is committed to serving the credit needs of the communities in which we do business. It is our policy to respond to all creditworthy segments of our market. We believe that doing so is basic to good business practice and to the Bank’s long-term vitality.
In pursuing this commitment, we will ensure that we comply with the letter and spirit of the Community Reinvestment Act (CRA). We recognize that this requires us to take a proactive approach to determining and meeting community needs, including those of creditworthy low and moderate income areas and individuals.
Our Community
Northeast Bank has offices in Minneapolis, Columbia Heights, and Coon Rapids and defines its local community as all of Hennepin and Anoka counties, encompassing full census tracts where necessary.
Corporate Community Reinvestment Act Policy
We wish to operate the Bank profitably and to maintain a base from which increased earnings can be realized in the future. We are limited by the factors of liquidity, risk, flexibility, and customer considerations.
The Board of Directors and senior management of Northeast Bank recognize the need for commitment to the spirit and letter of the Community Reinvestment Act (CRA). The Board of Directors has appointed a CRA Committee to implement and review CRA-related activities. The Board of Directors also reviews and approves the CRA Policy on an annual basis.
Ascertainment of Community Needs
As a corporate citizen and leader in the business community, Northeast Bank has a consistent and ongoing practice of outreach to determine the needs of the local community.
Officers of the Bank are expected to call on businesses to promote bank products and services and determine community needs.
Management of the Bank is kept informed of the credit needs of the community through personal association with organizations. Members of the Board of Directors and Officers of the Bank are actively involved in the following organizations:
| Organizations |
| American Bankers Association |
| American Refugee Committee |
| Anoka Area Chamber of Commerce |
| Anoka Hennepin Technical College Foundation |
| Anoka Ramsey Community College Foundation |
| Ballet of the Dolls |
| Catholic Eldercare |
| City of Brooklyn Park |
| Columbia Heights Beautification Committee |
| Columbia Heights Public Schools Superintendent’s Advisory Council |
| Columbia Heights Sister Cities |
| Coon Rapids Lions Club |
| Coon Rapids Rotary |
| Crestview Foundation |
| East Minneapolis Exchange Club |
| East Side Neighborhood Service, Inc. |
| Emma B. Howe YMCA |
| Habitat for Humanity |
| Hamline University |
| Hennepin County Human Resources Board |
| Metro North Chamber of Commerce |
| Minneapolis Children's Hospital Cleft Palate Clinic |
| Minneapolis Economic Development Company |
| Minneapolis Regional Chamber of Commerce |
| MN Bankers Association Human Resource Board |
| National Association of Women Business Owners |
| North Community YMCA |
| Northeast Community Development Corporation |
| Northeast Minneapolis Chamber of Commerce |
| Northeast Minneapolis Kiwanis |
| Northern Star Council - Three Rivers District |
| Ramsey Rotary |
| RISE, Inc. |
| Southern Anoka County Community Assistance (SACA) |
| The Broadway School |
| Three Rivers District/Northern Star Council |
| Twin City North Chamber of Commerce |
| United Way Board |
| United Way/Anoka County Steering Committee |
| Vision Loss Resources |
| Waite Park Elementary School |
| Walter C. Rasmussen-Northeast Bank Foundation |
| Wings of Africa |
Officers also maintain a continuing liaison with the Housing and Redevelopment Authorities of the cities of Minneapolis, Columbia Heights, Fridley, Blaine, and Coon Rapids.
Outreach and Marketing Programs
The Marketing Committee oversees development and implementation of a marketing plan to reach all groups in the community. The marketing plan is achieved through advertising in local community newspapers and through participation in community events. For small business lending, officers maintain an ongoing schedule of calls to area businesses and participate in community business events.
Credit Offered By Northeast Bank
Loans are a desirable and profitable means of employing shareholder and depository funds. Management believes that a properly administered lending policy, combined with prudent loan administration, will result in a strong loan portfolio. It is our belief that Bank profits will not be significantly affected by the assumption of reasonable business risk. A no-loss loan policy would be too restrictive and would inhibit future growth.
All loans are offered in a manner that is consistent with safe and sound banking practices. The Bank does not discriminate against credit applications on the basis of race, color, religion, national origin, handicap, sex, marital status, familial status (having children under the age of 18), age (provided the applicant has the capacity to enter into a binding contract), or because all or part of the applicant’s income is derived from public assistance programs or because the applicant resides in, or is affiliated with, what is considered to be a low or moderate income area.
A few examples of our community development lending are:
- Loans are made to development companies to purchase homes from HUD to renovate and resell to low/moderate income families.
- The Minneapolis Community Planning and Economic Development Agency (CPED) partners with Northeast Bank to provide financing for land, buildings, production equipment, renovation, and working capital. Loan programs that the Bank is currently active in include the 2% Commercial Loan Program and the Capital Acquisition Program (CAL). The Micro Loan Program for very small businesses in target neighborhoods (loans up to $25,000) is available through the Minneapolis Consortium of Community Developers in cooperation with the CPED.
- Loans are made to non-profits and other social service agencies for programs, housing and redevelopment.
Deposit Services
Northeast Bank offers a range of deposit products.
We have structured a checking and savings account specifically to meet the basic banking needs of our low income customers as follows:
- Our lifeline checking account has no minimum balance requirement with no more than 6 debits to the account during a statement cycle. If balance falls below $200 and more than 6 debits occur during the statement cycle, regular fees will apply.
Our savings account has a $50 minimum balance requirement to avoid a maintenance fee.
