(Source: Business Wire)The Office of the Comptroller of the Currency (OCC) has awarded San Francisco-based Union Bank, N.A., an "Outstanding" rating for surpassing the terms of the Community Reinvestment Act (CRA), which OCC-regulated institutions have been required to follow since the law was enacted in 1977. This is the second consecutive "Outstanding" rating the bank has received, demonstrating its sustained commitment to the low- and moderate-income (LMI) communities where it conducts business.

Furthermore, in granting Union Bank the rating, the OCC recognized the bank's leadership in community development lending, a core competency for which the bank has received national recognition. Examiners from the OCC reviewed the bank during June, July and August of 2009.

"We are honored to receive this rating from the OCC and be recognized for our unwavering commitment to underserved communities in our markets," said President and Chief Executive Officer Masaaki Tanaka. "We are pleased to receive the distinction for the second time, which helps validate and reinforce our ongoing efforts. Moving forward, we will continue to seek opportunities to make credit available in low- and moderate-income communities while maintaining the bank's commitment to safety and soundness."

The CRA was established in 1977 by Congress to encourage banks to meet the credit needs of all of its communities, whether low, moderate or high income neighborhoods. Additionally, the bank's credit and lending practices must be consistent with safe and sound operations. The factors that support this rating are:

An excellent level of community development lending that has a positive impact on the banks lending performance;

Lending levels that reflect a strong response to community credit needs;

Appropriate loan distribution to geographies and borrowers of different income levels;

An overall excellent level and nature of community development investments; and

A branch distribution that makes banking offices readily accessible to geographies and individuals of different income levels.

In 1995, Union Bank created a 10-Year Community Commitment pledging to contribute a minimum of 4.5 percent of its annual average assets to CRA-related loans and activities. In 2005, the bank renewed its commitment for another 10 years, increasing its pledge to 6.5 percent of average annual assets. Meanwhile, within the current review period, the U.S. entered a recession with California among the hardest hit regions in areas such as housing and unemployment. Thus, the demand on the bank to fulfill its commitment and assist in the recovery was profound.