East West Bank is considered a small bank compared to most of its competitors and thus cannot have the broad reach or impact of its larger competitors. For that reason, we choose to focus our CRA activities in areas that represent the most pressing needs of the communities we serve and that are in areas where we can make the most meaningful contribution.

General Focus – The Bank’s CRA philosophy is centered around three basic community reinvestment areas:  acceptable quality of life, small business lending and financial education.  The Bank is examined under the Interagency Large Institution CRA Procedures with the lending test weighted more heavily than the others.  

CRA Investments Focus

Acceptable quality of life, Small Business Credit, Financial Education

The Bank has identified housing as the primary area where, because of its expertise and local knowledge of the markets and needs, the Bank can make the greatest impact in its community development investments. 

When selecting investment opportunities, in addition to the purpose of the investment, the Bank considers how innovative or complex the investments are, the degree to which the investments are not routinely provided by private investors, and the impact of the investments in responding to identified community development needs.

Our primary investment focus includes:

Mortgage Backed Securities - Although a common CRA investment, EWB believes that, at least in the California assessment areas it serves, the availability of financing at fair rates for housing in LMI neighborhoods remains a critical community need.  These securities have a direct positive impact on the community when the purchases increase the amount of financing available.   For this reason, the Bank works directly with Fannie Mae and other similar entities that are chartered to help increase homeownership.  Purchasing from these entities frees up capital and room on their balance sheet to provide for more financing in LMI areas.   We believe that purchases from other banks or through brokers has less of an impact because they are merely moving around already-issued securities and do not provide assurance that the seller will replace the securities by providing new financing in LMI areas. 

Affordable Housing Tax Credit Investments - The Bank is an active lender in financing the construction of affordable housing through the use of tax credits.  EWB is one of the few banks of its size active in this area and has developed a market niche in being able to finance the smaller unit projects (under $25 million) that larger banks consider too small and complex in analysis and monitoring to be worth their attention.  EWB has used its expertise to make direct investments in this area because these projects are an extremely effective way to create high quality affordable rental housing.     

Other Investments we may consider:

• Housing finance bonds targeted to low-and moderate-income communities
• Investments in community development corporations
• Investments in small business development corporations (SBICs)
• Investments in New Market Tax Credits
• Municipal redevelopment bonds targeted to low- and moderate-income communities
• Investments or deposits in community development financial institutions
• Purchases of multifamily affordable housing revenue bonds

In addition, our investment strategy includes a targeted charitable giving program, which focuses on community-based organizations in our assessment areas that:

• provide and/or promote homeownership programs in the LMI community;
• offer health, financial, cultural and educational programs to the LMI community;
• offer leadership development programs to youths and adults in the LMI community;
• provide skill or vocational training programs;
• offer business management programs to small business owners;
• promote economic growth and employment in the local community; and
• focus on assisting new immigrants with their credit needs.