Community Profile: Lancaster, PA, MA (Lancaster County)

Executive Summary

Demographics

According to the 2000 census, the Lancaster, PA MA had a population of 470,658, representing a 11.3 percent increase from 1990. The state of Pennsylvania’s population increased 3.4 percent during the same period.
The racial composition in 2000 was 91.5 percent white, 2.8 percent black, 5.7 percent of Hispanic origin, 1.4 percent Asian, 3.0 percent of other races, and 1.3 percent of people who reported two or more races.
The number of households was 172,560 and the number of families was 124,129.
The median age of Lancaster, PA MA residents was 36.1 years in 2000. The median age of the state of Pennsylvania’s residents was 38 years.
According to the 2000 census, in the Lancaster, PA MA 70.8 percent of the housing units were owner-occupied, compared with 71.3 percent for the state of Pennsylvania.
In 2000, 14.0 percent of the population of the Lancaster, PA MA was at least 65 years old, compared with 15.6 percent in the entire state.
While the white population declined 0.34 percent between 1990 and 2000 in Pennsylvania , it rose 8.2 percent in the Lancaster, PA MA.
The year-round vacancy rate in the Lancaster, PA MA was 3.7 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 conventional and government one- to four-unit residential mortgages were lowest for applications from low-income census tracts and increased by income category of census tract. Conventional loan approval rates were 50.0 percent from low-income tracts, 63.8 percent from moderate-income tracts, 73.4 percent from middle-income tracts, and 87.4 percent from upper-income tracts. Approval rates for government one- to four-unit residential mortgages were 62.5 percent, 77.8 percent, 88.9 percent, and 92.9 percent, respectively.
When sorted by applicant income, the approval rates for conventional home-purchase loans varied widely from 46.5 percent for low-income borrowers to 84.7 percent for upper-income borrowers. Approval rates for government loans increased as applicant income rose - 80.3 percent, 87.6 percent, 89.3 percent, and 91.4 percent, respectively.
In 2001, applications for the refinance of existing mortgages more than doubled from the 2000 figure of 8,961. Approval rates for refinance loans were lowest for low-income applicants (35.4 percent) and increased by income category of applicant to 63.8 percent for upper-income applicants. When sorted by census tract income, approval rates for refinance loans ranged from 24 percent for low-income tracts to 66.4 percent for upper-income tracts.
The volume of all HMDA activity in the Lancaster, PA MA declined approximately 16.5 percent for applications and 21.5 percent for originated loans from 1999 to 2000 but rose by approximately 42 percent and 58 percent, respectively, from 2000 and 2001.
In 2001, approval rates for home-improvement loans varied widely between applications from low- and moderate-income tracts (24.4 percent and 40.6 percent, respectively) and applications from middle- and upper-income census tracts (63.5 percent and 61.2 percent, respectively).
When sorted by applicant income, the approval rates for home-improvement loans ranged from 54 percent for low-income borrowers to 67.5 percent for upper-income borrowers.
For all HMDA-reportable applications, approval rates for whites decreased from 1999 to 1000 and increased from 2000 to 2001. Approval rates for blacks increased from 1999 to 2000 and from 2000 to 2001 while approval rates for Hispanics increased from 1999 to 2000 but decreased from 2000 to 2001. The approval rates for whites, blacks, and Hispanics were 71.9 percent, 49.9 percent, and 53.9 percent, respectively, in 1999; 69.2 percent, 51.3 percent, and 61.1 percent, respectively in 2000; and 77.3 percent, 59.9 percent, and 60.8 percent, respectively in 2001.
The percentage of all HMDA-reportable loans in the MA that were originated in LMI census tracts was 7 percent in 1999, 8.2 percent in 2000, and 6.1 percent in 2001. The percentage of all conventional one- to four-unit residential mortgages in the MA that were originated in LMI census tracts was 5.6 percent in 1999, and 2000, and 5 percent in 2001.
In 1999, 2000, and 2001, low- and moderate-income borrowers represented 28.1 percent, 29.8 percent, and 25.8 percent, respectively, of all reported HMDA originations for which income data were available.
In 1999, 2000, and 2001, financial institutions reported a total of 23,611 small-business loans originated in the Lancaster, PA MA. This represented $1,365,340,000 in financing. Approximately 48.9 percent of the loans over the three years were made to businesses with gross annual revenues of $1 million or less, and 86.5 percent of the loans were for $100,000 or less.
The percentage of all small-business loans in the Lancaster, PA MA that were originated in LMI census tracts was 7.5 percent in 1999, 6.7 percent in 2000, and 6.3 percent in 2001.
In 1999, 2000, and 2001, financial institutions reported a total of 2,907 small-farm loans originated in the Lancaster, PA MA. This represented $198,101,000 in financing. Approximately 91.4 percent of the loans over the three years were made to farms with gross annual revenues of $1 million or less, and 80.8 percent of the loans were for $100,000 or less.

Financial Institutions

In 2001, 321 lenders reported originating 19,922 HMDA-reportable loans totaling $1,801,676,000 in the Lancaster, PA MA. Fulton Bank, with 2,018 loans representing 10.1 percent of the market, had the most originations and also ranked first in total dollar amount with $146,696,000, representing 8.1 percent of the market.
In 2001, 125 lenders reported originating 1,027 HMDA-reportable loans totaling $56,008,000 in low- and moderate-income census tracts of the Lancaster, PA MA. Fulton Bank, with 114 loans representing 11.1 percent of the market, had the most originations and also ranked first in total dollar amount with $4,694,000, representing 8.4 percent of the market.
In 2001, 193 lenders reported originating 4,826 HMDA-reportable loans totaling $322,100,000 to low- and moderate-income borrowers in the Lancaster, PA MA. Fulton Bank, with 535 loans representing 11.1 percent of the market, had the most originations and also ranked first in total dollar amount with $29,897,000, representing 9.3 percent of the market.
In 2001, MBNA America, N.A., Delaware, with 1,582 loans representing 14.2 percent of the market, originated the most small-business loans in the Lancaster, PA MA. Fulton Bank ranked first in total dollar amount with $129,622,000, representing 20.5 percent of the market. The average loan size for GE Capital Financial, Inc. was $5,000; the average loan size for Fulton Bank was $135,000.
In 2001, Fulton Bank, with 271 loans representing 23 percent of the market, originated the most small-farm loans in the Lancaster, PA MA and also ranked first in total dollar amount with $23,357,000, representing 26.2 percent of the market.

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 includes Lancaster County in its service area. 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, and Lancaster County. For small-business and economic-development programs, the order is National, Pennsylvania, and Lancaster County.

Affordable Housing

Small Business and Economic Development

Maps

Last update: February 2004

Community Profile: Lancaster, PA, MA (Lancaster County)

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

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