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CHEMICAL BANK UPS COMMUNITY DEVELOPMENT COMMITMENT TO $1 BILLION; EXCEEDS FIRST YEAR GOAL BY $180 MILLION

 NEW YORK, April 14 /PRNewswire/ -- Chemical Banking Corporation (NYSE: CHL) today announced that it far exceeded its first year community development commitment for new loans and grants in low- and moderate-income areas in its marketplace and, therefore, is increasing its five-year goal from $750 million to $1 billion.
 In 1992, the first year of its five-year commitment, Chemical extended $330 million vs. a planned $150 million in new loans and grants to traditionally underserved areas of New York, New Jersey and Texas.
 This total amount was specifically designated for affordable home mortgages, low-income housing and commercial development, commercial loans to very small businesses and grants to community-based, not-for- profit organizations in economically underserved communities. This focused commitment does not include many other loans the bank makes, including unsecured consumer installment loans, auto loans, credit cards, student loans, overdraft checking privileges and commercial lending to companies with more than $1 million in sales, located in underserved areas. For example, in New York state alone, Chemical typically originates each year approximately $300 million in loans to larger businesses in low- and moderate-income communities.
 The 1992 total of $330 million is broken down for low- and moderate- income areas of New York, New Jersey and Texas by the following categories:
 -- Housing and commercial development, $111.2 million: This translates into financing for nearly 2,700 units of housing in low- and moderate-income areas, including multifamily rental housing, affordable home ownership opportunities and commercial revitalization projects.
 -- Home mortgages in low- and moderate-income communities and special income-limited affordable mortgage products, $118.6 million: This money provided approximately 1,500 affordable home mortgage loans for individuals and families who would not otherwise have been able to own their own homes. Chemical Bank New York committed $10 million to hold mortgage loans on the books of the bank that would not be saleable in the secondary market. In 1992, $4.6 million in loans were closed and an additional $3.9 million in commitments were made against the $10 million. For 1993, this special program has been increased to $20 million.
 -- Commercial loans to businesses with sales under $1 million located in economically underserved areas and SBA guaranteed loans including startup loans and loans to non-profits, $95.5 million: Through this initiative, Chemical assisted more than 1,000 small businesses and non-profit agencies.
 -- Grants, $4.2 million: This translates into grants to over 1,000 community development organizations that provide services ranging from substance abuse programs to housing development.
 In addition, Chemical's total corporate contributions included $10.2 million to other non-profits, including sponsorships such as the March of Dimes and major gifts, such as to the United Negro College Fund and to various United Ways, which provide a wide range of services to the communities Chemical serves.
 In 1992, the bank made a special outreach effort to communities in upstate New York. As a result of this effort, over $350,000 was contributed to upstate non-profit organizations in the form of housing opportunities awards, competitive grants, special events and contributions. Communities that benefited from these contributions include Albany, Binghamton, Elmira, Utica, Rochester and Buffalo.
 "Exceeding our first-year goal by such a large margin clearly illustrates Chemical's commitment and leadership in reinvesting in the traditionally underserved neighborhoods in our marketplace," said John F. McGillicuddy, chairman and CEO. "With our expanded commitment of $1 billion, plus the dedication of our staff and the open channels of communication with the community groups with whom we have been working, we have the structure in place to maintain our leadership role in the economic future of the communities we serve."
 In 1992, the total of $330 million was broken down state by state as follows (millions):
 Texas Chemical
 Commerce Bank
 Chemical Bank Bancshares New Jersey Total
 Housing and commercial
 development $83.0 $19.1 $9.1 $111.2
 Home mortgages 77.0 21.0 20.6 118.6
 Commercial loans 37.1 51.9 6.5 95.5
 Grants 3.0 0.9 0.3 4.2
 Total 200.1 92.9 36.5 329.5
 Following are several examples of projects and customers thC?hemical's com mi ent has helped in achieving what otherwise might not have been possible:
 Providing Affordable Mortgages to Families
 An African-American single parent of two children, ages 5 and 11, was losing her rent-subsidized housing in New Jersey because her annual income of $29,136 was too high to qualify. She decided to try to purchase a home and, after being turned down for a mortgage by another lending institution, she was referred to Chemical Bank New Jersey and its Affordable Mortgage product by the developer of the housing she wished to purchase. In 1992, she received a commitment from Chemical Bank New Jersey to purchase a home in Paterson, N.J. Her dreams of owning a house in a safer neighborhood for her children have come true and as an extra bonus, her future mortgage payments will be less than the unsubsidized rent she would have been paying had she continued to live where she was previously.
 Providing Construction Financing for Affordable Housing
 In 1992, Chemical Bank provided $14 million in financing for the construction of Melrose Court, a 265-unit townhouse condominium complex in the South Bronx. Chemical's commitment covers 50 percent of the financing for the project and it increases Chemical's total financing of affordable housing in underserved areas of the Bronx to nearly $100 million since 1985. These two- and three-bedroom residences, with an average sale price of $64,000, will be affordable to families with annual household incomes beginning at $24,000. Melrose Court, which will be completed in 1993, is one of the largest homeownership developments currently being built in New York City, under the Housing Preservation and Development/New York City Housing Partnership New Homes Program.
 Helping Small Businesses to Grow
 A minority-owned laundromat that opened in 1972 has grown into one of the largest employers in the "Hispanic 500" with more than 600 entry level and semi-skilled workers, through the hard work, dedication and entrepreneurial spirit of the family that owns it and the help of Texas Commerce Bank - El Paso. TCB - El Paso provided the necessary funds for working capital and equipment acquisition to build the small laundromat into a garment finishing plant with the capacity of 30,000 garment units a week by 1982. In 1990, with the laundry's capacity at 100,000 units, TCB began helping the laundromat construct a building that would be self-sufficient in water and sewage. That project and its financing were completed in 1992 and currently the plant is operating at the maximum capacity of 225,000 units per week. The owner was nominated by TCB and selected for El Paso Small Business Consortium's Small Business Entrepreneur of the Year in 1991. He also received the Texas SBA Entrepreneur Award in 1991.
 -0- 4/14/93
 /CONTACT: Judy Walsh of Chemical Banking Corporation, 212-270-2914/
 (CHL)


CO: Chemical Banking Corporation ST: New York IN: FIN SU:

PS-CK -- NY032 -- 5658 04/14/93 11:31 EDT
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