At Bank of America, Community Development Banking is Now a Billion Dollar Enterprise.

SAN FRANCISCO--(BUSINESS WIRE)--Sept. 30, 1997--Bank of America's Community Development Banking group, created just seven years ago to finance small businesses and affordable housing in lower income communities, recently crossed the $1 billion threshold of loan outstandings.

"The success of this enterprise is simply amazing," said Donald A. Mullane, BofA's Director of Corporate Community Development. "It has grown because we have found ways to provide economic opportunity in communities which have historically struggled to obtain housing, jobs, education and other key resources. We can now use that knowledge to serve communities all around the nation."

Mullane noted that, going forward, the efforts of the Community Development Banking group will be part of Bank of America's commitment to lend at least $140 billion over the next ten years for community development purposes. It is the largest commitment of its kind ever made by a bank and represents an increase of more than ten-fold over BofA's previous commitment.

Community Banking at BofA began seven years ago with the establishment of Bank of America State Bank in California. Since then, it has become a nationwide enterprise, made up of the State Bank, now called Bank of America Community Development Bank, and the Community Development Division of BofA's Federal Savings Bank. BofA's Community Banking group now has offices in 37 cities from Alaska to Florida and is one of the largest community development banks in the country.

Together, these entities have developed a $1 billion portfolio of affordable housing and small business loans by partnering with public agencies such as the U.S. Small Business Administration, the U.S. Department of Housing and Urban Development, the U.S. Department of Agriculture and state and local government agencies, along with a wide variety of community-based non-profit organizations.

"In just seven years, Bank of America has made a significant contribution to community development efforts across America," said Paul S. Grogan, President and CEO of the Local Initiatives Support Corporation. "We're pleased to call BofA our partner and we look forward to working with them in the future."

The Community Banking group works to meet challenging community and lower-income credit needs through a wide variety of creative approaches and flexible lending products and partnerships.

These products and partnerships have made Bank of America a national leader in providing credit to lower income communities and borrowers as well as one of the nation's largest investors in low-income housing tax credits, providing critical equity to affordable housing projects.

"We are very proud of our accomplishments, and we are particularly proud of our people," said Mike Mantle, President of BofA's Community Development Bank. "They are an extremely dedicated, knowledgeable and creative group. When coupled with a bank like BofA with the resources and commitment to community development -- that's an awesome combination."

To achieve the $1 billion portfolio in loan outstandings, the Community Development Bank and its affiliates have made more than $2.7 billion in new community development loans, as well as more than $650 million in low-income housing tax credit investments.

Additionally, BofA is the largest SBA 504 lender in the West, providing access to capital for small businesses throughout the U.S. and creating jobs and opportunities for thousands of workers. BofA specializes in business loans and lines of credit under $100,000.

CONTACT: Bank of America

Bob Wynne, 415/953-3836