Community Profile: Allentown-Bethlehem-Easton, PA MA

Executive Summary

Demographics

According to the 2000 census, the Allentown-Bethlehem-Easton, PA MA had a population of 637,958, representing a 7.1 percent decrease from 1990. The state of Pennsylvania’s population increased 3.4 percent during the same period.
The racial composition in 2000 was 89.8 percent white, 3.0 percent black, 7.9 percent of Hispanic origin, 1.6 percent Asian, 4.1 percent of other races, and 1.5 percent of people who reported two or more races.
The number of households was 247,148, and the number of families was 169,596.
The median age of Allentown-Bethlehem-Easton, PA MA residents was 38.6 years in 2000. The median age of the state of Pennsylvania’s residents was 38 years.
According to the 2000 census, in the Allentown-Bethlehem-Easton, PA MA, 71.6 percent of the housing units were owner-occupied, compared with 71.3 percent for the state of Pennsylvania.
In 2000, 16.0 percent of the population of the Allentown-Bethlehem-Easton PA MA was at least 65 years old, compared with 15.6 percent in the entire state.
While the white population in Pennsylvania declined 0.34 percent between 1990 and 2000, it further declined almost 12 percent in the Allentown-Bethlehem-Easton, PA MA.
The year-round vacancy rate in the Allentown-Bethlehem-Easton, PA MA was 5.0 percent in 2000, compared with 6.2 percent for Pennsylvania.

HMDA and CRA Loan Data

In 2001, the approval rates for home purchase applications for government one- to four-unit residential mortgages were lowest for low-income applicants and highest for middle-income applicants. Approval rates for conventional one- to four-unit residential mortgages increased by applicant income. Conventional approval rates ranged from 48.6 percent for low-income applicants to 82.0 percent for upper-income applicants, and government approval rates ranged from 77.3 percent for low-income applicants to 88.1 percent for middle-income applicants.
In 2001, refinances of existing mortgages represented over half (56.4 percent) of all HMDA-reportable applications. When sorted by census tract income, approval rates for refinances ranged from 33.5 percent in moderate-income tracts to 60.7 percent in upper-income tracts.
The number of HMDA-reportable applications in the Allentown-Bethlehem-Easton, PA MA increased 43.4 percent from 2000 to 2001, while the number of loans made increased 62.1 percent.
For all HMDA-reportable applications, approval rates for whites were significantly higher than those for blacks and Hispanics for the period from 1999 to 2001. The approval rates for whites, blacks, and Hispanics were 66.1 percent, 43.4 percent, and 53.4 percent, respectively, in 1999; 63.1 percent, 45.1 percent, and 56.5 percent, respectively, in 2000; and 73.3 percent, 55.5 percent, and 62.1 percent, respectively, in 2001.
In 1999, 2000, and 2001, low- and moderate-income borrowers represented 29.1 percent, 31 percent, and 25.7 percent, respectively, of all reported HMDA originations for which income data were available.
In 1999, 2000, and 2001, financial institutions reported a total of 27,142 small-business loans were originated in the Allentown-Bethlehem-Easton, PA MA. This represented $1,181,579,000 in financing. Approximately 40.7 percent of the loans over the three years were made to businesses with gross annual revenues of $1 million or less, and 90.7 percent of the loans were for $100,000 or less.
In 1999, 2000, and 2001, financial institutions reported a total of 97 small-farm loans originated in the Allentown-Bethlehem-Easton, PA MA. This represented $7,258,000 in financing. Approximately 68 percent of the loans over the three years were made to farms with gross annual revenues of $1 million or less, and 75.3 percent of the loans were for $100,000 or less.
The percentage of all small-business loans in the Allentown-Bethlehem-Easton, PA MA that were originated in LMI census tracts was 12.1 percent in 1999, 10.7 percent in 2000, and 12.7 percent in 2001.
There were 41 small-farm loans originated in 1999, compared with 16 in 2000 and 40 in 2001.

Financial Institutions

In 2001, 350 lenders reported originating 28,580 HMDA-reportable loans totaling $2,650,167,000 in the Allentown-Bethlehem-Easton, PA MA. First Union National Bank, with 1,897 loans representing 6.6 percent of the market, had the most originations. Wells Fargo Home Mortgage ranked first in total dollar amount with $178,254,000, representing 6.7 percent of the market.
In 2001, 155 lenders reported originating 2,268 HMDA-reportable loans totaling $114,983,000 in low- and moderate-income census tracts of the Allentown-Bethlehem-Easton, PA MA. First Union National Bank, with 244 loans representing 10.8 percent of the market, had the most originations and also ranked first in total dollar amount with $11,886,000, representing 10.3 percent of the market.
In 2001, 221 lenders reported originating 6,942 HMDA-reportable loans totaling $413,192,000 to low- and moderate-income borrowers in the Allentown-Bethlehem-Easton, PA MA. First Union National Bank, with 477 loans representing 6.9 percent of the market, had the most originations. Mortgage America ranked first in total dollar amount with $27,941,000, representing 6.8 percent of the market.
In 2001, GE Capital Financial, Inc., with 2,007 loans representing 15.3 percent of the market, originated the most small-business loans in the Allentown-Bethlehem-Easton, PA MA. First Union National Bank ranked first in total dollar amount with $162,737,000, representing 30.1 percent of the market.
In 2001, there were a total of 40 small-farm loans representing $3,860,000 in financing in the Allentown-Bethlehem-Easton, PA MA.

Community Organizations

The MA has a number of nonprofit organizations devoted to affordable housing, economic development, and/or provision of social services to LMI households and families. Several of the organizations and their programs are outlined in CHAPTER IV.

Financing Programs

There are many public and private financing programs available for affordable housing and economic development that could be used in partnership to further goals for affordable housing and economic development. The programs are outlined more fully in CHAPTER V.

Chapter I: Demographics

Chapter II: HMDA and CRA Loan Data

Home Mortgage Disclosure Act (HMDA) Statement Data

An important source of information about financial institutions' lending patterns in a community is the Home Mortgage Disclosure Act (HMDA) statement. This report is submitted annually to the Federal Financial Institutions Examination Council (FFIEC) and is available to the public for each reporting institution. The types of loans that must be reported are home-purchase loans, for both owner-occupants and nonoccupants; refinancings; home-improvement loans; and loans for improvement and/or purchase of multifamily structures (five or more units). Depository institutions that had at least $32 million on December 31, 2001, and a home or branch office in an MA must file this report.

CRA Small-Business and Small-Farm Lending Data

Starting in 1996, the nation's financial institutions began reporting small-business and small-farm loans as part of their CRA disclosure statements required under the revised CRA regulations. While the information does not have the level of detail of the HMDA statements, it is an important source for understanding commercial lending activity in a community. The types of loans reported include all originations and purchases of commercial loans, lines of credit, and mortgages on nonresidential properties. The loans are reported by size, by geographic location, and for borrowers with annual revenues of $1 million or less. These categories of loans include those with guarantees, such as those provided by the SBA or USDA. Small-farm loans are reported in the same way.

Chapter III: Financial Institutions

Chapter IV: Community Organizations

This chapter provides summaries of nonprofit organizations devoted to affordable housing, economic development, and provision of social services. Each organization listed has a service area that includes part or all of the Lehigh Valley. Inclusion here does not represent an unqualified endorsement of these organizations by the Federal Reserve Bank of Philadelphia. Rather, it suggests that a financial institution seeking to conduct outreach into the community consider approaching these organizations to determine mutual areas of interest and activity.

They are arranged alphabetically by type of activity.

Affordable Housing

Economic Development

Social Services

Chapter V: Special Credit Enhancement/Financing Programs

This section of the profile contains a grid describing the many credit enhancement/financing programs available to area banks to provide financing for housing, small businesses, and economic development. The grid is divided into geographically specific and regionally applicable programs. For affordable-housing programs, the order is National, Pennsylvania, City of Allentown, and City of Bethlehem. For small-business and economic-development programs, the order is National, Pennsylvania, City of Allentown, City of Bethlehem, and City of Easton.

Affordable Housing

Small Business and Economic Development

Maps

Last update: February 2004

Community Profile: Allentown-Bethlehem-Easton, PA MA

Executive Summary

Demographics

HMDA and CRA Loan Data

Financial Institutions

Community Organizations

Financing Programs

Chapter I: Demographics

Chapter II: HMDA and CRA Loan Data

Home Mortgage Disclosure Act (HMDA) Statement Data

CRA Small-Business and Small-Farm Lending Data

Chapter III: Financial Institutions

Chapter IV: Community Organizations

Affordable Housing

Economic Development

Social Services

Chapter V: Special Credit Enhancement/Financing Programs

Affordable Housing

Small Business and Economic Development

Maps

Report Sections

Contact Us