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The Color of Money

Day one, chart one


Ranking banks on black vs. white loans

Comparing lending to middle-income neighborhoods


Published May 1, 1988, Page A1

Copyright 1988, The Atlanta Journal-Constitution


Black-White

Rank

Institution

Loan ratio

1.

Citizens Trust Bank *

All black

2.

Mutual Federal Savings and Loan *

11:1

3.

First Federal Savings and Loan

1:2

4.

Liberty Federal Savings and Loan

1:2

5.

DeKalb Federal Savings and Loan

1:2

6.

Trust Company Bank

1:3

7.

Anchor Savings Bank

1:3

8.

California Federal Savings and Loan

1:3

9.

Georgia Federal Savings and Loan

1:4

10.

C&S Bank

1:5

11.

Fulton Federal Savings and Loan

1:5

12.

Decatur Federal Savings and Loan

1:7

13.

Home Federal Savings and Loan

1:8

14.

First American Bank

1:10

15.

First Atlanta Bank

1:14


* Black-owned institution

Sources: Home Mortgage Disclosure Act reports by financial institutions, 1985-86; U.S. Bureau of the Census, 1980; Atlanta Regional Commission census update, 1987.


How the rankings were determined:

Each lender's service rate -- home-purchase loans per owner-occupied structure -- was calculated for comparable white and black areas. The ratio shown here is the black rate divided by the white rate. For example, Mutual Federal was 11 times as likely to make a home loan to a household in a black area as in a white area. First Atlanta was 14 times as likely to make a home loan to a household in a white area as a black area.

Loans were counted only in stable neighborhoods. Loans were excluded in high-growth areas, as measured by an increase of more than 10 percent since 1970 in single-family housing; declining areas, as measured by any decrease in single-family housing; and purely commercial areas, as measured by census tracts with fewer than 500 owner-occupied homes. If these loans had been included, the disparities for most lenders would have been greater.

All loan figures are an average for 1985-86. Deposit figures are for 1986. Black areas are those that are at least 80 percent black.

Loan figures for banks, with the exception of C&S, do not include mortgage companies owned by banks. Other banks declined to provide this information. Without those numbers, First Union Bank and Bank South did not report enough loans for service rates to be calculated. http://PowerReporting.com/images/classic.gif

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