ST. LOUIS, Oct. 18, 2011 (GLOBE NEWSWIRE) -- Enterprise Financial Services Corp (Nasdaq:EFSC) and its banking subsidiary, Enterprise Bank & Trust, announced that it will be promoting and further expanding its consumer lending efforts in the City of St. Louis as well as low-income and majority minority neighborhoods in the St. Louis area. These activities are outlined in an agreement that Enterprise recently reached with the Metropolitan St. Louis Equal Housing Opportunity Council (EHOC). The agreement resolves allegations that Enterprise has not originated a sufficient number of residential mortgage loans for minority borrowers. The agreement, which was approved by the U.S. Department of Housing and Urban Development (HUD), does not find that Enterprise's previous lending practices violated federal or state law.
Peter Benoist, President and CEO of Enterprise Financial, commented, "We are very proud of our fair lending practices and record of community support at Enterprise. As a bank focused on serving the needs of privately held businesses and their owner families, we're not high-volume residential mortgage lenders. And while we typically don't advertise or promote residential mortgage products, we make those products available on an equal basis to all borrowers regardless of their race or national origin."
"At the same time, we are very active in supporting our community, including low and moderate-income areas, through our extensive commercial lending activities, community involvement and educational programs," continued Benoist. "We entered into this agreement, in the spirit of cooperation and because we support the principles of fair lending."
Enterprise Financial has been widely recognized as a leader in community development activities.
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Over the past three years, Enterprise Bank & Trust has invested more than one-half billion dollars in community development lending with loans ranging in size from $10,000 to $60 million. In an April 2011 letter to the FDIC, the St. Louis Equal Housing and Community Reinvestment Alliance noted, "We do want to acknowledge Enterprise Bank's strong performance in Community Development lending. They have an impressive portfolio of community development loans, grants and investments that are above the performance of their peer group."
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In late 2010, Enterprise was awarded a $35 million New Markets Tax Credit allocation by the U.S. Treasury Department to support projects involving disadvantaged small businesses, community facilities and difficult-to-finance real estate developments in low-income communities. Enterprise was one of only eighteen banks across the nation to receive an allocation.
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In December 2010, the Bank committed $1 million in support of the Central Bank of Kansas City, a minority-owned financial institution. The Bank's financial commitment to Central Bank provides funding for a variety of educational and loan programs aimed at minority communities.
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In October 2010, the Bank received the "Mayor's Award" from Mayor Francis G. Slay for its participation in a large development project in the City of St. Louis. The Mayor's Award is awarded to individuals, companies, and organizations that are catalysts for economic development in St. Louis, with emphasis on those who help expand economic development horizons.
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The Bank has partnered with the Small Business & Technology Development Center in a loan pool targeted to small businesses in the St. Louis area.
- Since 2003, the Company has offered Enterprise University, a comprehensive series of semi-annual workshops designed to help small businesses and their owners become more successful. Enterprise University workshops are available free of charge to small businesses, non-profit organizations and business leaders in all three of the Company's markets.
In addition to the Company's existing community development activities, it will be offering $1.5 million in discounted real estate loans to qualified borrowers. Also, it has agreed to establish a full-service branch at its Administrative Support Center at 1281 N. Warson Road, develop additional residential lending marketing and advertising programs targeted to qualified minority applicants and provide additional Enterprise University workshops, including a basic financial literacy course.
Enterprise Financial operates commercial banking and wealth management businesses in metropolitan St. Louis, Kansas City and Phoenix. Enterprise is primarily focused on serving the needs of privately held businesses, their owner families, executives and professionals.