case 2:06-cv-00344-RL-PRC document 1 filed 10/13/06 page 1 of 15

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF INDIANA

UNITED STATES OF AMERICA, Plaintiff,
v. CENTIER BANK,
Defendant.

CIVIL ACTION NO.

- ~., ::c.:r

COMPLAINT The United States of America alleges: 1. This action is brought by the United States to enforce the provisions of Title VIII of the Civil Rights Act of 1968, the Fair Housing Act, as amended by the Fair Housing Amendments Act of 1988, 42 U.S.C. §§3601-3619, and the Equal Credit Opportunity
Act, 15 u.s.c. §§1691-1691f.
2. This Court has jurisdiction of this action pursuant to
28 u.s.c. §1345, 42 u.s.c. §3614, and 15 u.s.c. §1691(h). Venue
is appropriate pursuant to 28 U.S.C. §1391. 3. Defendant Centier Bank ("Centier" or "Bank") is an
Indiana-chartered full service bank headquartered in Whiting, Indiana, and doing business primarily in the State of Indiana. The Bank is a subsidiary of First Bancshares, Inc., a bank holding company incorporated in 1979 under the laws of the State of Indiana.
4. Centier offers the traditional services of a financial depository and lending institution, including the receipt of

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monetary deposits; the financing of residential housing, commercial, and consumer loans; and other types of credit transactions. Centier currently has total assets of approximately $1.5 billion and, as of June 30, 2004, over $1.1 billion in deposits. The Bank is one of the largest residential and small business lenders in the Gary, Indiana, metropolitan area. Centier is subject to the regulatory authority of the Federal Deposit Insurance Corporation ("FDIC").
5. The Bank is subject to the federal laws governing fair lending including the Fair Housing Act, the Equal Credit Opportunity Act, and the Community Reinvestment Act, 12 U.S.C. §§2901-2906, and the regulations promulgated under each of those statutes. The Fair Housing Act and the Equal Credit Opportunity Act prohibit financial institutions from discriminating on the basis of, inter alia, race, color, or national origin in their lending practices.
6. Centier Bank, which took that name in 1991, originated in 1895 as the Bank of Whiting and has been owned and managed by the same family since that time. By October 2004, Centier had grown to a network of thirty-eight branch offices located throughout Lake, Porter, La Porte, and Marshall counties in Indiana.
7. The Gary Primary Metropolitan Statistical Area (hereinafter "Gary PMSA"), as defined by the United States
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Census, encompassed the counties of Lake and Porter until 2004, when Jasper and Newton counties were added to the PMSA. For purposes of consistency, all references in this complaint to the Gary PMSA are to the former two-county definition.
8. Residential housing data for the Gary PMSA show significant historical patterns of racial and ethnic segregation. According to both 1980 and 1990 Census data, the Gary PMSA was the most segregated metropolitan area in the nation for AfricanAmericans, and it remained the second-most segregated PMSA for African-Americans in 2000. According to the 2000 Census, nearly 90% of the Gary PMSA's African-American residents, lived in the cities of Gary, Hammond, and East Chicago. In contrast, only 1.1% of the metropolitan area's African-American population lived in Porter County. In 2000, over 89% of the Gary PMSA's Hispanic residents lived in Lake County, with 59.3% of the area's total Hispanic population concentrated in the cities of Gary, Hammond, and East Chicago.
9. According to the 2000 Census, 48 of the Gary PMSA's 136 census tracts, 35%, have populations made up of a majority of minority residents. All of these majority-minority census tracts are located in Lake County, and 46 of the 48 are located in Gary, East Chicago, and Hammond. Those three cities are home to nearly 35% of the PMSA's total population, over 218,000 people, of whom 148,000 are African-American or Hispanic. In the 1990 census, 46
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of the PMSA's 121 census tracts, 38%, had populations made up of a majority of minority residents. See Maps attached as Exhibits 1 and 2.
10. In operating and expanding the scope of its business over time, Centier has acted to meet the credit needs, particularly with respect to residential and small business credit, of predominantly white residential census tracts (census tracts with a population greater than 50% non-Hispanic white) throughout the Gary PMSA and beyond, and has avoided serving the similar credit needs of majority-minority census tracts.
11. Over time, Centier has expanded its lending operations, particularly for the extension of credit for residential real estate-related transactions and small business purposes, to substantial portions of the Gary metropolitan area. In addition to enlarging the geographic scope of the area within which it extends such credit, a major component of the Bank's expansion has been the construction or acquisition of additional branch offices, which are designed both to better serve existing customers and to attract new customers for Centier's services and products.
12. Centier has engaged in a race- and national originbased pattern of locating or acquiring branch offices and determining what services to provide at each. It has located or acquired branch offices and chosen to provide varying levels of
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banking and lending services at them in a manner designed to serve fully the banking and credit needs of the residents of and small businesses located in majority white census tracts, but not those of residents of or businesses located in majority-minority census tracts.
13. By the end of the year 2001, Centier had 27 branch offices in the Gary metropolitan area. Not one of those 27 branches was located either in a majority-minority census tract or anywhere in the cities of Gary, East Chicago, or Hammond. See Map attached as Exhibit 3. Those 27 branches provided Centier's full range of banking and credit services to each community in which they were located.
14. In late 2002, under pressure from its federal regulator, the FDIC, Centier opened two branches in majority-minority census tracts. At that time, the Bank opened a "bricks and mortar" branch in the Miller area of Gary and an in-store super-market branch in East Chicago. Between that time and November 2005, Centier has opened nine additional branches, all in majority white census tracts, including an in-store supermarket branch opened in 2003 in the City of Hammond. See Map attached as Exhibit 4. Of all the communities in which Centier has branches, only East Chicago and Hammond are served by only an in-store supermarket branch without a "bricks and mortar" branch as well.
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15. The only Centier branches located in the cities of Gary, East Chicago, and Hammond are the two in-store supermarket branches and the Gary branch. None of those three branches provides on-site the full range of banking and lending services Centier offers. In addition, the two other Centier branches located closest to Gary, one in Hobart and one in Merrillville, are also in-store supermarket branches. See Map attached as Exhibit 5.
16. The unlawful consideration of race and national origin in Centier's business practices is also evident from its customer solicitation efforts, including its advertising and marketing practices. For example, the Bank has for years directed its radio advertising to stations that target "general audiences", although minority format radio stations exist in the Gary PMSA market. The Bank also consistently has directed its print media advertising to daily newspapers of general circulation and to neighborhood and suburban periodicals serving largely non-minority neighborhoods and suburbs in the Gary PMSA.
17. The unlawful consideration of race and national origin in the business practices of the Bank is also evident from the community service, or assessment area, boundaries that Centier established and maintained pursuant to the Community Reinvestment Act ("CRA") in the past. Pursuant to statutory direction, the Federal Reserve Board has promulgated regulations to implement
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the CRA, 12 C.F.R. §228 ("Reg BB"). Under Reg BB, as amended in 1997, a large bank's assessment area must generally consist of one or more metropolitan areas or contiguous political subdivisions, §228.41(b), unless that area would be extremely large, of unusual configuration, or divided by significant geographic barriers, §228.41(d). Reg BB further provides that, if a large bank's assessment area does not include entire political jurisdictions, its assessment area may_not reflect illegal discrimination. §228. 41 (e) . Centier' s assessment area historically did not include entire political subdivisions, such as the whole of the cities of Gary, East Chicago, or Hammond. The inclusion of those entire jurisdictions would not have created an assessment area which would have been extremely large, of unusual configuration, or divided by significant geographic barriers, the only exceptions specifically permitted by Reg BB.
18. Instead of defining its assessment area in accordance with Reg BB, Centier long circumscribed its lending area in the Gary PMSA to exclude most majority-minority neighborhoods, including having two geographically separate assessment areas for many years. Until late 1999, Centier's CRA assessment area included only three majority-minority census tracts from Gary, East Chicago, and Hammond, despite the fact that a large number of minority tracts were adjacent to the non-minority tracts included in the assessment area. See Map attached as Exhibit 6.
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That year, the FDIC informed the Bank that its assessment area violated the CRA and its regulations. Not until then, and until Centier's Chairman had asked the FDIC whether the inclusion of Gary, East Chicago, and Hammond in its assessment area would require the opening of branches there, did Centier expand its assessment area to include all of Lake County.
19. The policies and practices of Centier described in ~~10-18 above have achieved the Bank's objective of serving white communities and not minority communities, as further demonstrated by the Bank's actual residential and CRA small business lending activity over time.
20. Statistical analyses of Centier's residential real estate-related loan applications and originations for 2000-2004 show that each year Centier has served the credit needs of the residents of predominantly white census tracts of the Gary PMSA to a significantly greater extent than it has served the residential real estate-related credit needs of the residents of predominantly minority neighborhoods.
21. From 2000-2004, Centier generated 9,031 single-family residential loan applications in the Gary metropolitan area that were required to be reported to its regulator pursuant to the Home Mortgage Disclosure Act ("HMDA"), 28 U.S.C. §§2801-2810. Only 437, or 4.8%, were secured by residential property located in majority-minority census tracts. See Maps attached as Exhibit
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7. Of the 7,360 single-family (defined by HMDA as dwellings with 1-4 units) residential loans Centier originated in the Gary metropolitan area during those five years, only 248, or 3.4%, were secured by residential property located in majority-minority census tracts. According to the 2000 Census, 35% of the Gary PMSA's census tracts had a majority of minority residents and over 26% of the area's 1-4 unit residential housing stock is located in those census tracts.
22. In contrast, during this same time period, the aggregate of all Gary PMSA lending institutions reported that 16% of their residential real estate-related loan applications in the Gary PMSA were secured by residential property located in majority-minority census tracts. Similarly, during this time period, the aggregate of all lenders with branch offices in the Gary PMSA reported that 15.2% of their residential real estaterelated loan applications in the Gary PMSA were secured by residential property located in majority-minority census tracts. For both groups of lenders, the percentage of HMDA loan applications from majority-minority census tracts was more than three times higher than Centier's.
23. The geographic distribution of the dollar amounts of residential real estate-related loans funded by Centier also demonstrates the consistent racial and national origin division in its residential lending activities. From 2000 through 2004,
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Centier funded more than $740 million in single-family residential loans in the Gary PMSA. Only 1.65%, less than $12.3 million in such loans, went to majority-minority census tracts during this five year period.
24. The Bank's CRA small business loan originations for 2000-2004 show the same discriminatory pattern. During this time period, Centier has been one of the Gary area's largest CRA small business lenders; measured by dollar volume of loans, Centier has been the area's largest CRA small business lender during this time period. Of the 2,808 CRA small business loans Centier originated in the Gary PMSA from 2000 through 2004, 2,688 (95.7%) were made to businesses located in majority white census tracts, and only 120 (4.3%) to businesses in majority-minority tracts. See Maps attached as Exhibit 8. Measured by dollar volume, Centier originated more than $360 million in CRA small business loans during this five year period, but less than $21 million, 5.6%, went to businesses located in majority-minority census tracts. At present, approximately 20% of the Gary metropolitan area's businesses are located in majority-minority census tracts.
25. In contrast, during this time period, the aggregate of all Gary PMSA lending institutions reported that 11.6% of their CRA small business loans in the Gary PMSA were made to businesses located in majority-minority census tracts. This percentage figure is more than two and a half times that of Centier.
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26. The totality of Centier's policies and practices described herein constitute the redlining of majority-minority neighborhoods of the Gary PMSA for the defendant's lending business. The Bank's policies and practices are intended to deny and discourage, and have the effect of denying or discouraging, an equal opportunity to residents of and businesses located in minority neighborhoods, on account of the racial and/or national origin composition of those neighborhoods, to obtain residential real estate-related and/or small business credit. These policies and practices are not justified by business necessity or legitimate business considerations.
27. The defendant's actions as alleged herein constitute: a. Discrimination on the basis of race, color, and national origin in making available residential real estate-related transactions, in violation of the Fair Housing Act, 42 U.S.C. §3605 (a) ; b. The making unavailable or denial of dwellings to persons, because of race, color, and national origin, in violation of the Fair Housing Act, 42 U.S.C. §3604(a); c. Discrimination on the basis of race, color, and national origin in the terms, conditions, or privileges of the provision of services or facilities in connection with the sale or rental of dwellings, in violation of the Fair Housing Act, 42 U.S.C. §3604(b); and
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d. Discrimination against applicants with respect to credit transactions, on the basis of race, color, and national origin, in violation of the Equal Credit Opportunity Act, 15 U.S.C. §1691 (a) (1).
28. The defendant's policies and practices as alleged herein constitute:
a: A pattern or practice of resistance to the full enjoyment of rights secured by the Fair Housing Act, 42 U.S.C. §§3601 et seq., and the Equal Credit Opportunity Act, 15 U.S.C. §1691e(h); and
b. A denial of rights granted by the Fair Housing Act to a group of persons that raises an issue of general public importance.
29. Persons who have been victims of the defendant's discriminatory policies and practices are aggrieved persons as defined in 42 U.S.C. §3602(i) and as described in the Equal Credit Opportunity Act, 15 U.S.C. §1691(e) (i), and have suffered damages as a result of the defendant's conduct in violation of both the Fair Housing and the Equal Credit Opportunity Acts, as described herein.
30. The discriminatory policies and practices of the defendant were, and are, intentional and willful, and have been implemented with reckless disregard for the rights of residents of minority neighborhoods.
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WHEREFORE, the United States prays that the Court enter an ORDER that:
(1) Declares that the policies and practices of the defendant constitute a violation of the Fair Housing Act, 42 U.S.C. §§3601-3619, and the Equal Credit Opportunity Act,
15 u.s.c. §§1691-1691f;
(2) Enjoins the defendant, its agents, employees, and successors, and all other persons in active concert or participation with the defendant, from:
(A) Discriminating on account of race, color, or national origin in any aspect of their business practices; (B) Failing or refusing to take such affirmative steps as may be necessary to restore, as nearly as practicable, the victims of the defendant's unlawful practices to the position they would be in but for the dis-criminatory conduct; (C) Failing or refusing to take such affirmative steps as may be necessary to prevent the recurrence of any discriminatory conduct in the future and to eliminate, to the extent practicable, the effects of the defendant's unlawful practices, and providing policies and procedures to ensure all segments of its assessment area are served without regard to prohibited
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(3) Awards monetary damages to all the victims of the defendant's discriminatory policies and practices for the injuries caused by the defendant, pursuant to 42 U.S.C. §3614 (d) ( 1) (B) and 15 U.S. C. §1691e (h) ;
(4) Awards punitive damages to all the victims of the defendant's discriminatory policies and practices, pursuant to 42 U.S.C. §3614 (d) (1) (B) and 15 U.S.C. §1691e (h); and
(5) Assesses a civil penalty against the defendant in an amount authorized by 42 U.S.C. §3614 (d) (1) (C), in order to vindicate the public interest.
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The United States further prays for such additional relief as the interests of justice may require.

Alberto R. Gonzales Attorney General

Wan J. Kim

{QtB

Assistant Attorney General

Civil Rights Division

Steven H. Rosenbaum Chief, Housing and Civil
Enforcement Section
Donna M. Murph Deputy Chief
Burtis M. Doughe ty Anth y F. Archeval Attorneys U.S. Department of Justice Civil Rights Division Housing and Civil Enforcement
Section - NW Building 950 Pennsylvania Avenue, N.W. Washington, D.C. 20530 (202) 202-305-4066

 
 case 2:06-cv-00344-RL-PRC document 4 filed 10/16/06 page 1 of 33

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF INDIANA
HAMMOND DIVISION

UNITED STATES OF AMERICA, Plaintiff,
vs. CENTIER BANK,
Defendant.

) ) ) NO. 2:06-CV-344 ) ) ) ) ) )

CONSENT ORDER INTRODUCTION
This order is submitted jointly by the parties for the approval of and entry by the Court simultaneously with the filing of the United States’ complaint in this action. The order resolves the claims of the United States that Defendant, Centier Bank (“Centier” or “the Bank”), has engaged in a pattern or practice of conduct in violation of the Fair Housing Act (FHA), 42 U.S.C. §§ 3601-3619, and the Equal Credit Opportunity Act (ECOA), 15 U.S.C. §§ 1691-1691f, by discriminating on the basis of race, color, and national origin in the extension of residential real estate-related and small business credit in the Gary, Indiana, metropolitan area.
The United States contends that the Bank has avoided doing business in and serving the lending needs of majority minority

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census tracts in the Gary metropolitan area1. The complaint alleges that the Bank’s policies and practices have denied the residents of majority minority census tracts an equal opportunity to obtain residential real estate-related and small business financing because of the racial and ethnic composition of those tracts.
The Bank denies that it engaged in race or national origin discrimination in its branching, marketing, solicitation or extension of credit, or that any act or omission on its part as alleged in the Complaint filed by the United States, or in this Agreement, in any way violated either the Fair Housing Act or the Equal Credit Opportunity Act. Nevertheless, because the Bank is committed to providing for the credit needs of all businesses and individuals in Northwest Indiana, including the Cities of Gary, East Chicago, and Hammond, the Bank voluntarily consents to the entry of this Agreement. Moreover, through the specific activities articulated in this Agreement, the Bank affirms its strong commitment to be an industry leader in lending throughout Northwest Indiana.
1 For the purposes of this Order, the term “majority minority” or “minority” census tract is defined to mean a census tract whose population is more than 50% other than non-Hispanic white. The term “majority white” or “white” census tract is defined to mean a census tract whose population is more than 50% nonHispanic white. The minority census tracts, based on the 2000 Census, are listed on Exhibit A hereto.
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There has been no factual finding or adjudication with respect to any matter alleged by the United States. Accordingly, the execution of this Order is not, and is not to be considered as, an admission or finding of any violation of the FHA or the ECOA by the Bank. Rather, the parties have entered into this agreed Order to resolve voluntarily the claims asserted by the United States in order to avoid the risks and burdens of litigation. The parties agree that full implementation of the terms of this Order will provide a fair and reasonable resolution of the allegations of the United States in a manner consistent with the Bank’s legitimate business interests.
Under the provisions of this Order, the Bank has committed itself to a program designed to improve its performance in meeting the credit needs of residents of and small businesses located in majority minority census tracts. The Bank will ensure that its lending products and services are made available and marketed in majority minority census tracts on no less favorable a basis than in white residential areas. The Bank commits itself to take all reasonable, practicable actions, consistent with safety and soundness, to increase the level of its residential and small business lending in majority minority census tracts, with the ultimate objective of extending credit there at a level comparable to its lending in majority white census tracts. The remedial plan
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to achieve this objective, detailed in subsequent sections of this Order, includes the opening of new branches in majority minority census tracts (hereinafter referred to as “designated” areas or tracts), investment in those areas through subsidized loan offerings, targeted marketing programs, and expanded outreach and education efforts in those areas in order to remedy the effects of the Bank’s alleged discriminatory practices.
SUMMARY OF UNITED STATES’ ALLEGATIONS Centier Bank is an Indiana state-chartered bank head-quartered in Whiting, Indiana. It has approximately $1.5 billion in assets and deposits of over $1.1 billion, the second-largest deposit market share in the Gary metropolitan area. The Bank is primarily a residential real estate and small business lender, and has been one of the Gary area’s largest volume lenders in each category for at least the past five years. During the past 20 years, the Bank has expanded its business, including extending credit for residential real-estate related and small business transactions, to substantial portions of the Gary metropolitan area and beyond.2 From eleven branches in 1985, Centier has grown to its current network of forty branch offices
2 For the purposes of this Order, the term “Gary metropolitan area” means the counties of Lake and Porter.
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located throughout the Northwest Indiana region. The expansion of the Bank’s business has taken place in a metropolitan area with residential patterns extremely segregated both by race and national origin. The United States alleges that in operating and extending the scope of its business, Centier has acted to meet the residential and small business credit needs of predominantly white residential areas while avoiding serving the lending and credit needs of majority minority neighborhoods, most of which are located in the cities of Gary, East Chicago, and Hammond.
The United States alleges that Centier has engaged in a pattern of locating or acquiring branch offices outside of communities with a majority of African-American and/or Hispanic residents. By January 2001, Centier had 27 branch offices throughout the Gary metropolitan area, but none in a majority minority census tract. Not until late 2002 did the Bank open a branch in Gary. It subsequently opened two in-store supermarket branches in East Chicago and Hammond, but during the same period added seven more full-service branches in white suburban communities. The United States also alleges that none of the branches in Gary, East Chicago, or Hammond has offered the full range of lending services available at Centier’s full-service branches located in white suburban communities and that information
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about those services has not been readily available to prospective customers at those three branches.
The United States further alleges that Centier’s unlawful consideration of race and national origin in its business practices is demonstrated by its advertising and marketing practices. For years, the Bank has directed its print and radio advertising solely to “general audience” media, although minority format radio stations and newspapers with primarily minority readership exist in the Gary metropolitan area market.
Additionally, until 1999, Centier excluded nearly all the majority minority census tracts in the Gary metropolitan area from its assessment area, also known as its community service area, under the Community Reinvestment Act of 1977, 12 U.S.C. §§2901-2906 (CRA). This meant the exclusion of nearly all of the cities of Gary, East Chicago, and Hammond from that area. The Bank changed its assessment area boundaries to include all of those three cities only after the 1999 compliance examination conducted by its federal regulator, the Federal Deposit Insurance Corporation.
The United States also contends that statistical analyses of Centier’s residential and small business lending over the past five years (2000-2004) demonstrate that it has consistently served the credit needs of residents and owners of small businesses in majority white neighborhoods of the Gary area to a significantly
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greater extent than it has served the credit needs of the residents and owners of small businesses located in majority minority neighborhoods. During this five-year time period, only 4.8% of the residential loan applications Centier generated were secured by property located in majority minority census tracts – in a metropolitan area in which, according to the 2000 Census, 38% of the census tracts are majority minority tracts. By contrast, 18.4% of such applications generated by the aggregate of all lenders in the Gary metropolitan area during this time period were secured by property located in majority minority census tracts. Although Centier is one of the largest volume residential lenders in the Gary SMSA, fewer than 1% of its residential loan applications from 2000-2004 were secured by property located in majority minority census tracts. Of the $741.6 million in residential loans Centier originated over those five years, only 1.65%, $12.2 million, has involved property located in majority minority census tracts.
In summary, the United States contends that the Bank’s creditrelated policies and practices, taken as a whole, have been implemented with the purpose and effect of discriminating on the basis of race, color, and national origin in the extension of residential real estate-related and small business credit (a practice commonly referred to as redlining), thereby denying residents and owners of small businesses in majority minority
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census tracts in the Gary metropolitan area equal access to credit, in violation of both the FHA and the ECOA.

THE BANK’S RESPONSE TO UNITED STATES’ ALLEGATIONS

Centier Bank denies the United States’ allegations and

maintains that at all times it conducted its lending in compliance

with the letter and spirit of the fair lending laws and in a non-

discriminatory manner.

Centier acknowledges that it is a

relatively new entrant into the cities of Gary, East Chicago and

Hammond. From the time Centier’s first branch opened in Highland,

Indiana, in 1963 and for more than twenty years thereafter, Centier

was prohibited by Indiana law from branching into cities in which

resided the home office of another banking institution. This

restriction included the cities of Gary, East Chicago and Hammond.

Centier was able to grow through the acquisition of other banks in

the 1980s, after which it aggressively sought to make loans,

primarily to small businesses serving the Northwest Indiana steel

industry.

Due to the steel belt recession in the 1980s, Northwest

Indiana’s economy declined precipitously. The steel and real

estate industries were particularly impacted by this decline,

resulting in losses to Centier due to its strategy of making loans

to steel-related businesses and a lack of capability on the part of -8-

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local businesses and residents to support loans. This economic downturn has persisted over the past twenty (20) years. The Federal Reserve Board has chronicled an increase in unemployment in Lake County in recent years: a precipitous drop in manufacturing jobs from 1991-1999 after the loss of over 60,000 steel-related manufacturing jobs in the 1980s, and the bankruptcies of two major steel-producing companies in 2001, resulting in additional layoffs.3
Centier maintains that the long-standing presence of certain other banks in Gary, East Chicago and Hammond coupled with the severe economic downturn occurring just as Indiana’s branching restrictions eased in the 1980s and continuing until today, has made it difficult for Centier to gain a significant market share of loans in the Gary, East Chicago and Hammond loan markets. Because other banks had the opportunity to develop a major share of the loan market prior to the time Centier was permitted entry into those markets, and the economy of the area has restricted the number of households that can afford to service a mortgage, Centier’s loan opportunities in those three cities have been limited. Nonetheless, Centier has sought to branch into the Gary, East Chicago and Hammond markets, expending considerable effort to
3 Robin Newberger & Marina Plavnik, Federal Reserve Bank of Chicago, Gary Indiana Metropolitan Statistical Area: MSA Profile and Investment Opportunities (December 2001).
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open additional branches, particularly in Gary, since 1999 and eventually opening branches in Gary and East Chicago in late 2002 and a branch in Hammond in late 2003. It continues to strive to originate loans in these communities.
In summary, while Centier acknowledges that its percentage of loans originated in majority minority census tracts is less than the aggregate percentage of such loans on the part of all banks in the area, it has never intended such an outcome and has never deliberately discriminated against any individuals, groups, or areas based on race or national origin. Rather, it was prevented by circumstances from making inroads into the market in these areas and has recently sought to develop a banking presence in those areas.
PROACTIVE INITIATIVES BY CENTIER PRECEDING ENTRY OF CONSENT DECREE The United States recognizes that Centier Bank has already undertaken initiatives to help meet the credit needs of the residents in majority minority neighborhoods in Gary, East Chicago, and Hammond. In 2002 and 2003, prior to the United States’ investigation, Centier opened branches in each of those three (3) cities. In addition, Centier has taken other steps since receiving notice of the United States’ investigation and subsequently
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proposed lawsuit. Those actions include, but are not limited to, the following:

!

In July 2006, Centier hired a Vice President and Director

of Community Lending who is an African-American with

significant experience in loan origination in the Gary,

East Chicago and Hammond markets. He is assisted by two

additional loan originators, one who is African-American

and one who is Hispanic and fluent in Spanish. These

latter two individuals are now located in the Gary

branch. The Hispanic loan originator will later be

located in an expanded East Chicago branch of Centier.

!

Centier’s Community Relations Coordinator and its

Hispanic loan originator have provided financial literacy

and home ownership instruction.

!

In partnership with Freddie Mac, Centier has provided

funding to the Consumer Credit Counseling Service of

Indiana to provide assistance to residents of lower-

income neighborhoods in Lake County, Indiana, in

obtaining affordable housing.

!

Centier has collaborated with Neighborhoods, Inc. to

originate home improvement loans in Hammond as well as

other low to moderate income areas, with reduced interest -11-

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rates and a loan origination fee paid to Neighborhoods, Inc.

!

Centier has collaborated with the City of Gary Department

of Community Development, offering a special reduced

interest rate on home improvement loans in Gary, and has

marketed its services to first time home buyers through

the Department as well as conducting first time home

buyer seminars.

The United States agrees that these initial efforts represent positive steps to address issues which are the subject of the United States’ complaint. These actions are hereby incorporated by reference into the marketing and outreach plan described below.

REMEDIAL ORDER
General Nondiscrimination Injunction 1. Centier Bank, including all of its officers, employees,
agents, representatives, assignees, and successors in interest, and all those in active concert or participation with any of them, is hereby enjoined from engaging in any act or practice which discriminates on the basis of race, color, or national origin in any aspect of a residential real estate-related transaction in violation of the Fair Housing Act, 42 U.S.C. §§3604 and 3605, or in
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any aspect of a credit transaction in violation of the Equal Credit Opportunity Act, 15 U.S.C. §1691(a)(1). This prohibition includes, but is not limited to: the selection of sites for and the provision of services at branch offices; marketing; the definition of an assessment area under the Community Reinvestment Act; and the determination of geographic areas in which loan applications are solicited or funded, except to remedy the violations alleged by the United States.
2. Centier shall take the actions necessary to ensure that the Bank offers and provides all persons with an equal opportunity to apply for and obtain credit, regardless of the predominate race, color, or national origin of the area in which a person lives, or the area in which the property securing the loan or the small business is located. Those actions include, but are not limited to, the remedial actions specified in this Order.
General Principles 3. The Bank shall take all reasonable, practicable steps
consistent with safety and soundness, including, but not limited to, those specified below, to ensure that all types of credit it offers - including residential and CRA small business loan products - are made available and marketed in majority minority census tracts on no less favorable a basis than in majority white census
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tracts so that all persons throughout the Gary metropolitan area will have an equal opportunity to access and obtain credit from the Bank.
4. This Order requires the Bank to take these actions to remedy Centier’s alleged discrimination. The Bank retains the discretion to take any additional actions it believes are appropriate to achieve the goals of this Order and shall provide written notice to the United States thirty (30) days prior to implementation of any such additional actions during the term of this Order.
Lending Initiatives Community Reinvestment Act Assessment Area 5. In late 1999, the Bank revised its CRA assessment area to
include all of the Gary MSA, then defined to include the whole of Lake and Porter counties.4 The Bank agrees to continue to include the entirety of those two counties in its CRA assessment area. Nothing in this Order precludes the Bank from expanding its CRA assessment area in the future in a manner consistent with the provisions of the CRA and its implementing regulations.
4 Since that time, the Bank has further expanded its assessment area.
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Additional Branch Locations and Services 6. Centier’s residential lending and, to a lesser extent, its CRA small business lending, have been generated primarily by the activities of loan officers based in branch offices. The Bank shall evaluate future opportunities for expansion, whether by acquisition or opening new offices, in a manner consistent with achieving the remedial goals of this Order. 7. Within nine (9) months of the entry of the Consent Order, Centier will expand its current East Chicago, Indiana, in-store supermarket office to include two (2) private offices and a conference room. This branch is located in a majority-Hispanic census tract. From the time the expansion is completed, through the term of the Consent Order, Centier will place at least one full-time residential lender at this office, fully trained in all aspects of home mortgage and home equity lending. This lender’s training will also encompass the fair lending obligations of banks under the Fair Housing Act, the Equal Credit Opportunity Act, and the Community Reinvestment Act. Centier will offer its full range of banking and residential lending services at this branch. Further, this branch will provide access to small business lending services and expertise comparable to that provided at its branches in majority white census tracts. The Bank will also provide at
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least one employee at this branch who is fluent in Spanish and is fully trained to handle lending transactions.
8. The Bank shall open or acquire at least two (2) additional full-service branch offices located in the designated areas. These new branches will provide the complete range of services typically offered at the Bank’s full-service branches in the suburban areas of Lake and Porter Counties. These lending services encompass, but are not limited to: (a) the full range of residential lending services, including a full-time on-site residential lending officer; and (b) both information about business lending options and access to a business lending specialist comparable to that provided at the Bank’s branches located in majority white census tracts. The Bank shall promptly evaluate possible locations in the designated tracts for these two new branches and shall present its proposals for the new branches to the United States for its review and approval, which shall not be unreasonably withheld, within six (6) months of the date of entry of this Order for the first and within eighteen (18) months for the second.
9. Centier will make all reasonable efforts, subject to local government and regulatory approval, to open or acquire a new branch in a majority African-American census tract within eighteen (18) months of the entry of the Consent Order. Centier will place at least one full-time residential lender at this office, fully
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trained in all aspects of home mortgage and home equity lending. This lender’s training will also encompass the fair lending obligations of banks under the Fair Housing Act, the Equal Credit Opportunity Act, and the Community Reinvestment Act. The branch will offer the full range of banking and residential lending services offered by Centier. Further, the branch will provide access to small business lending services and expertise comparable to that provided at the Bank’s branches in majority white census tracts.
10. Centier will make all reasonable efforts, subject to local government and regulatory approval, to open or acquire a second new branch in a majority African-American census tract within twenty-four (24) months of the entry of this Order. Centier will place at least one full-time residential lender at this office, fully trained in all aspects of home mortgage and home equity lending. This lender’s training will also encompass the fair lending obligations of banks under the Fair Housing Act, the Equal Credit Opportunity Act, and the Community Reinvestment Act. The branch will offer the full range of banking and residential lending services offered by Centier. Further, the branch will provide access to small business lending services and expertise comparable to that provided at the Bank’s branches in majority white census tracts.
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11. To meet the target dates for the opening of these new branches, the Bank shall act as quickly as possible to obtain any required local or state governmental permits and approvals and to seek the approval of its federal regulator, currently the Federal Deposit Insurance Corporation.
12. The Bank shall ensure that its existing Gary branch offers the full range of banking and residential lending services offered by Centier. Further, the branch will provide access to small business lending services and expertise, comparable to that provided at the Bank’s full-service branches located in majority white census tracts. The Bank shall also ensure the ready availability of complete information concerning access to the full range of its banking and lending services at its existing in-store branch located in Hammond, comparable to that information provided at the Bank’s in-store branches located in majority white census tracts. The Bank shall further ensure that these comparable levels of service and information will be provided at all future branches in Gary, Hammond and East Chicago.
13. Nothing in this Order precludes the Bank from opening or acquiring additional branch offices in the designated census tracts or elsewhere. Nor does any provision of this Order require the Bank to consult with the United States regarding its opening or
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acquisition of any other branches or offices except as required by law.
Staff 14. For the duration of this Order, Centier shall continue to employ a full-time Director of Community Lending, whose primary responsibilities will include overseeing the development of the Bank’s lending in the designated census tracts and compliance with the provisions of this Order. The Director will supervise the activities of loan officers regarding the solicitation and origination of loans in the designated census tracts, including the special loan programs identified in this Order; coordinate the Bank’s involvement in community lending initiatives and outreach programs; serve as a resource to lending staff to encourage and develop more lending within the designated census tracts; ensure the training of the staff at all branch offices (both existing and new) in the designated tracts in all aspects of the Bank’s lending processes; and report directly to the Bank’s Board of Directors on the progress of these initiatives at least quarterly, including recommending changes in these programs to increase their effectiveness. At least one bank employee who is fluent in Spanish and has been fully trained to handle lending transactions will be available at the newly-expanded branch office in East Chicago.
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This person, a current loan officer already identified by Centier for this purpose, shall be responsible for developing community lending initiatives and outreach programs to attract customers from and serve the lending needs of the Hispanic communities.
15. The Bank shall provide periodic training to all employees and agents with significant involvement in residential and CRA small business lending to ensure that their activities are conducted in a nondiscriminatory manner. This training shall encompass their fair lending obligations under the FHA, the ECOA, their obligations under the CRA, and their responsibilities under this Order. Such training shall be conducted by Centier’s Director of Community Lending, Manager of Mortgage and Consumer Lending, and training and education staff. In addition, within fifteen (15) days of the entry of this Order, the Bank shall provide to all such employees an explanation and copies of the applicable provisions of this Order, and allow an opportunity for such employees to have any questions concerning the Order answered.
Advertising and Outreach 16. The Bank shall expand its marketing, advertising, and outreach programs to improve its performance in meeting the credit needs of the residents and businesses in majority minority census tracts in the Gary metropolitan area.
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17. The Bank shall spend a minimum of $375,000 on the targeted advertising and marketing campaign described in paragraphs (a)-(d) below over the term of this Order. This program shall be specifically targeted to generate significant additional numbers of applications for all types of its credit products from qualified residents and small businesses in majority minority census tracts. This program shall include, at a minimum, the following components:
(a) Print Media. During each year of this Order, in addition to any other print advertising, the Bank shall advertise in at least one print medium specifically directed to African-American readers and at least one print medium directed to Hispanic readers. These advertisements, viewed in their entirety over the course of a year, shall include the Bank’s full range of principal credit products, including any special products or services made available as part of this Order.5 The Bank retains the discretion to determine the size, content, and frequency of such advertising subject to the standards set forth above. In Spanish or other foreign language publications, the text of the majority of the advertisements shall be in the language commonly used by the readers of such publications. The Bank may choose to expand this
5 The Bank need not include every credit product it offers in each advertisement, but must include in this targeted advertising over the course of a year the Bank’s principal products and all special credit products or programs available under the terms of this Order.
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targeted advertising in additional print media directed to AfricanAmerican, Hispanic, or other minority readers.
(b) Radio. During each year of this Order, the Bank shall place radio advertisements on at least two minority-oriented Garyarea radio stations, at least one whose programming is oriented toward African-American listeners and one oriented toward Hispanic listeners. The radio advertising, viewed in its entirety over the course of a year, shall include the Bank’s full range of principal loan products, including any special products or services made available under this Order. The Bank retains the discretion to determine the content and frequency of such radio spots subject to the standards set forth above and to place such advertising on additional minority-oriented stations.
The parties acknowledge that the Bank has already begun frequent advertising in media targeted to African-American and Hispanic audiences.
(c) Promotional Materials. The Bank shall create point-ofdistribution materials, such as posters and brochures, targeted toward the subject areas to advertise products and services it offers, including any special loan products or services made available pursuant to this Order. These materials shall be published in English, Spanish, and any other foreign languages commonly used in the Gary metropolitan area. The Bank shall place
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or display these promotional materials in its branch offices and additional, appropriate distribution locations throughout the designated census tracts.
(d) Direct Mailings. The Bank also may utilize direct mailing to advertise the new branch locations and/or the loan program required by this Order to residents and small businesses in the designated census tracts, so long as those mailings are not targeted exclusively or primarily at existing customers.
(e) All of the Bank’s print advertising and promotional materials shall contain an equal housing opportunity logotype, slogan, or statement. All of the Bank’s radio and television advertisements shall include the audible statement “Equal Opportunity Lender” or “Prestamista que provee igualdad de oportunidad al préstamo” [Spanish translation].
(f) In addition to the targeted efforts described in subparagraphs (a)-(d), during the term of this Order, the Bank will conduct a minimum of six (6) outreach programs per year for real estate brokers and agents, developers, and public or private entities doing business in majority minority census tracts, to inform them of the products and services the Bank offers, including those detailed in this Order, and to otherwise develop business relationships with them. These programs shall be offered at
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locations reasonably convenient to the business operations of the attendees.
Credit Needs Assessment 18. Within two (2) months of the entry of this Order, the Bank shall begin an assessment of the residential real estaterelated and small business credit needs of the Gary area’s majority minority census tracts. This assessment shall include, but not be limited to: (a) analysis of the most recent available demographic and socioeconomic data about those census tracts; (b) evaluation of the residential and small business credit needs of and corresponding lending opportunities in majority minority census tracts; (c) consideration of how the Bank’s residential and small business lending operations can serve the remedial goals of this Order; and (d) thorough review of the availability of relevant federal, state, and local governmental programs and evaluation of how participation in each of them would assist in achieving the remedial goals of this Order. The Bank may retain outside parties to provide expert analysis and assistance in performing this assessment. 19. In accomplishing this assessment, Bank representatives shall also meet with representatives of at least six (6) Gary metropolitan area community organizations significantly involved in
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promoting fair lending, home ownership, or residential or small business development in majority minority census tracts. The Bank may also meet with representatives of any other appropriate entities in conducting this needs assessment.
20. The Bank shall present to counsel for the United States a written report of this special credit needs assessment, together with recommendations, if any, for actions beyond those specified in this Order to be taken to meet those needs, not later than six (6) months after the entry of this Order.
21. For the term of this Order, the Bank shall meet annually with community organizations as part of an ongoing credit needs assessment and evaluation of its business plan, in order to better meet the residential and small business credit needs of the residents and small businesses in the designated census tracts.

Consumer Education

22.

The parties acknowledge that financially educated

consumers are essential to the remedial goal of sustained increases

in the Bank’s residential and small business lending in majority

minority census tracts in the Gary metropolitan area. To help

identify and develop qualified loan applicants from majority

minority census tracts, the Bank shall invest a minimum of $500,000

over the term of this Order to provide credit counseling, financial -25-

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literacy, business planning, and other related educational programs targeted at the residents and small businesses in these areas.6 The parties acknowledge that Centier has engaged in providing such educational programs since late 2004.
The Bank shall allocate a minimum of one-half of this $500,000 to sponsor such programs offered by community or governmental organizations engaged in fair lending work. Such programs shall also be offered where appropriate in Spanish and any other foreign languages commonly used in the Gary area’s majority minority census tracts.
SATISFACTION OF UNITED STATES’ CLAIMS FOR MONETARY RELIEF 23. In addition to the monetary commitments detailed above, Centier will invest a minimum of $3.5 million over the duration of this Order in the special financing program described below for residential and CRA small business loans.7 When combined with the other financial commitments described herein, this special lending
6 Reasonable costs associated with the development and implementation of this consumer education initiative may be included in the calculation of the amount invested by the Bank. 7 With respect to the Bank’s home mortgage subsidy program, no loan originated under this program shall exceed the conforming loan limit applicable to Fannie Mae and Freddie Mac, as determined annually by the Federal Housing Finance Board (currently $417,000).
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program will satisfy fully the claims of the United States for damages and other monetary relief in this case.
24. Through this special financing program for these categories of loans, the Bank will offer qualified residents and businesses (for CRA small business loans) in majority minority census tracts loan products at interest rates and/or on terms that are more advantageous to the applicant than it would normally provide.
25. The Bank will subsidize each covered transaction by one or more of the following means: an interest rate below that which the Bank would normally charge, down payment or closing cost grants or assistance, or other financial aid.8 Under this special financing program, the Bank may provide one or more of the following forms of financial assistance to any qualified applicant:
8 For purposes of this Order, the loan subsidy amount calculation will be the reduction in the monthly payment from the standard monthly payment based on the borrower’s qualifications which result from the interest rate reduction the borrower receives (amortized over the full term of the loan) times the number of monthly payments for the time periods as set forth below for various loan types:
(a) First mortgages at 7.5 years; (b) Home equity loans and lines of credit at 5 years; and, (c) Small business and community development loans at the term of the note (generally 1 to 5 years).
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(a) a loan for a home purchase, refinancing, or home improvement at an interest rate a minimum of 1/2 of a percentage point (50 basis points) below the otherwise prevailing rate, provided that if the prevailing rate (APR) for any such loan exceeds 8% at any time during the term of this Order, the interest rate subsidy shall be a minimum of 1%, and if the prevailing APR exceeds 9% at any time during the term of this Order, the subsidy shall be a minimum of 1.5%;
(b) a home purchase loan at the Bank’s prevailing prime interest rate for a conventional fixed-interest rate mortgage to a borrower who would ordinarily not qualify for such rates for reasons including, for example, the lack of required credit quality, income, or down payment;
(c) a direct grant of a minimum of 2% of the loan amount, up to a maximum of 3% for the purpose of down payment assistance; or (d) closing cost assistance in the form of a direct grant of a minimum of $500.00 and a maximum of $1,000.00.
26. The Bank retains the discretion to offer more than one, or all, of the foregoing forms of financial assistance to qualified applicants on an individual basis as it deems appropriate under the unique factual circumstances of a particular application. The Bank will exercise this discretion in a manner which maximizes the likelihood that it will originate a loan to a qualified applicant,
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consistent with applicable underwriting guidelines and safety and soundness standards.
27. The Bank shall have discretion to provide the loan subsidy among its residential and CRA small business loan products. However, the Bank shall use its best efforts to implement this subsidy program in a manner such that, of the total dollar volume of loans each year subsidized by this special program, at least 25% are CRA small business loans.
28. Although all residents or businesses in any of the designated census tracts may be eligible for assistance under this special financing program, the Bank shall take appropriate steps to promote an equitable distribution of these investment funds among all the designated census tracts.
29. No provision of this Order, including this special financing program commitment, requires the Bank to make any unsafe or unsound loan. During the term of this Order, the Bank shall assess the effectiveness of this special financing program in achieving its remedial goal and shall recommend to the United States any changes it reasonably believes are necessary and appropriate to increase its effectiveness.
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EVALUATING AND MONITORING COMPLIANCE 30. For the duration of this Order, Centier shall retain all records relating to its obligations hereunder, including its residential and small business lending activities, as well as its advertising, outreach, branching, special programs, and other compliance activities as set forth herein. The United States shall have the right to review and copy such records upon request. 31. The Bank shall provide to counsel for the United States the data it submits to the Federal Financial Institutions Examination Council (FFIEC) pursuant to the Home Mortgage Disclosure Act and the Community Reinvestment Act. The data will be provided in the same format in which it is presented to the FFIEC within thirty (30) days of its submission to the FFIEC each year for the duration of this Order, including the record layout. 32. In addition to the submission of any other plans or reports specified in this Order, Centier shall make an annual report to the United States on its progress in fulfilling the goals of this Order. Each such report shall provide a complete account of the Bank’s actions to comply with each requirement of this Order during the previous year, an objective assessment of the extent to which each quantifiable obligation was met, an explanation of why any particular component fell short of meeting its goal for that year, and any recommendations for additional actions to achieve the
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goals of this Order. The Bank shall submit this report each year for the term of this Order within forty-five (45) days of the anniversary of the date of the entry of this Order. In addition, the Bank shall attach to the annual reports representative copies of training material and advertising and marketing materials disseminated pursuant to this Order.
ADMINISTRATION 33. The requirements of this Order shall be in effect for five (5) years, except as specified below. The Order shall terminate: (a) three months after the submission of the Bank’s fifth annual report to the United States; or (b) if the Bank has not invested $3.5 million in its special financing program in five (5) years from the date of entry of this Order, three months after the submission of the Bank’s final annual report to the United States that demonstrates the fulfillment of that obligation. It shall only be extended further upon motion of the United States to the Court, for good cause shown. 34. Any time limits for performance fixed by this Order may be extended by mutual written agreement of the parties. Other modifications to this Order may be made only upon approval of the Court, by motion by either party. The parties recognize that there may be changes in relevant and material factual circumstances
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during the term of this Order which may impact the accomplishment

of its goals. The parties agree to work cooperatively to discuss

and attempt to agree upon any proposed modifications to this Order

resulting therefrom.

35. In the event that any disputes arise about the

interpretation of or compliance with the terms of this Order, the

parties shall endeavor in good faith to resolve any such dispute

between themselves before bringing it to this Court for

resolution. The United States agrees that if it reasonably

believes that the Bank has violated any provision of this Order, it

will provide the Bank written notice thereof and give it sixty (60)

days to resolve the alleged violation before presenting the matter

to this Court. In the event of either a failure by the Bank to

perform in a timely manner any act required by this Order or an act

by the Bank in violation of any provision hereof, the United States

may move this Court to impose any remedy authorized by law or

equity, including attorneys’ fees and costs.

36. Centier’s compliance with the terms of this Order shall

fully and finally resolve all claims of the United States relating

to the Bank’s alleged violation of the fair lending laws by means

of discriminating on the basis of race, color, or national origin,

as alleged in the Complaint in this action, including all claims

for equitable relief and monetary damages and penalties. -32-

Each

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party to this Consent Order shall bear its own costs and attorney's fees associated with this litigation.
37. The Court shall retain jurisdiction for the duration of this Consent Order to enforce the terms of the Order, after which time the case shall be dismissed with prejudice.

DATED: October 16, 2006

/s/RUDY LOZANO, Judge United States District Court

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 case 2:06-cv-00344-RL-PRC document 10 filed 01/05/10 page 1 of 2

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF INDIANA
HAMMOND DIVISION

UNITED STATES OF AMERICA, Plaintiff,
v. CENTIER BANK,
Defendant.

) ) ) NO. 2:06-CV-344 ) ) ) ) ) ) )

ORDER GRANTING MOTION TO AMEND CONSENT ORDER

This matter is before the Court on the Joint Motion to Amend

Consent Order, filed by the parties on January 4, 2010. The Court,

having considered the Joint Motion to Amend Consent Order, now

finds that the Motion is meritorious and should be GRANTED.

It is therefore ORDERED that Paragraph 12 of the Order entered

on October 16, 2006 (the “Consent Order”) shall be amended to read

as follows:

“12.

The Bank shall ensure that its existing Gary branch

offers the full range of banking and residential lending

services offered by Centier. Further, the branch will provide

access to small business lending services and expertise,

comparable to that provided at the Bank’s full-service

branches located in majority white census tracts. The parties

agree that the Bank may, for legitimate nondiscriminatory

business reasons, close its existing Hammond branch, located

at 6525 A Columbia Avenue, at the expiration of its lease for

that site. To replace that branch, the Bank shall open a new

full-service, free-standing branch located in a majority-

minority census tract in Hammond. This new branch shall be

opened not later than April 30, 2011, subject to the Bank’s

ability, based on its best efforts, to identify and secure a

case 2:06-cv-00344-RL-PRC document 10 filed 01/05/10 page 2 of 2

site that meets the requirements of this Order and to obtain necessary approval from its federal regulator. Upon its opening and thereafter, the staff of that new branch shall include a full-time mortgage originator. The new branch shall provide banking and residential lending services comparable to those provided in its branches located in predominantly white census tracts. Further, this branch shall provide access to small business lending information, services, and expertise comparable to that provided at its branches in predominantly white census tracts. In addition, during the time period between the closing of its Columbia Avenue branch and the opening of its new Hammond branch, the Bank shall maintain a drive-up ATM machine at the Columbia Avenue site. The Bank shall keep the United States timely informed of the progress of its efforts to acquire a site for the new Hammond branch agreeable to the United States and to its federal regulator. The parties agree that the term of this Consent Order may be extended if necessary to ensure the opening of this proposed new Hammond branch before the Order’s termination.”

DATED: January 5, 2010

/s/RUDY LOZANO, Judge United States District Court

 
 case 2:06-cv-00344-RL-PRC document 15 filed 03/05/12 page 1 of 1

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF INDIANA
HAMMOND DIVISION

UNITED STATES OF AMERICA, Plaintiff, vs. CENTIER BANK, Defendant.

) ) ) ) ) NO. 2:06-CV-344 ) ) ) )

ORDER

This matter is before the Court on the Agreed Motion to Dismiss, filed by the parties on February 29, 2012. After due consideration, this motion is GRANTED. Accordingly, the Consent Order entered in this case on October 16, 2006, as subsequently amended, is TERMINATED and this case is DISMISSED with prejudice.

DATED: March 5, 2012

/s/RUDY LOZANO, Judge United States District Court

 
 Case: 2:06-cv-344 As of: 09/26/2012 09:25 PM EDT 1 of 3
CASREF, TERMED
U.S. District Court Northern District of Indiana [LIVE] USDC Northern Indiana (Hammond)
CIVIL DOCKET FOR CASE #: 2:06−cv−00344−RL−PRC

United States of America vs Centier Bank Assigned to: Judge Rudy Lozano Referred to: Magistrate Judge Paul R Cherry Cause: 42:405 Fair Housing Act
Plaintiff United States of America

Date Filed: 10/13/2006 Date Terminated: 11/20/2007 Jury Demand: None Nature of Suit: 443 Civil Rights: Accomodations Jurisdiction: U.S. Government Plaintiff
represented by Burtis M Dougherty United States Department of Justice Civil Rights Division Housing and Civl Enforcement Section 950 Pennsylvania Avenue NW Washington, DC 20530 202−305−4066 Fax: 202−514−1116 LEAD ATTORNEY ATTORNEY TO BE NOTICED
Donna M Murphy US Department of Justice − Was/DC/950 950 Pennsylvania Avenue NW − G Street Washington, DC 20530 202−514−1775 Fax: 202−514−1116 Email: donna.murphy2@usdoj.gov LEAD ATTORNEY ATTORNEY TO BE NOTICED
Steven H Rosenbaum US Department of Justice − Was/DC/950 950 Pennsylvania Avenue NW − G Street Washington, DC 20530 202−514−4713 Fax: 202−514−1116 LEAD ATTORNEY ATTORNEY TO BE NOTICED
Wan J Kim US Department of Justice − Was/DC/CRD/HCE/7044 Housing and Civil Enforcement Section Civil Rights Division 1800 G Street Room 7044 Washington, DC 20004 202−514−2151 Fax: 202−514−0293 LEAD ATTORNEY ATTORNEY TO BE NOTICED

V. Defendant Centier Bank

represented by Bryan Steven Strawbridge Krieg DeVault LLP − Ind/IN One Indiana Square Suite 2800 Indianapolis, IN 46204−2079

Case: 2:06-cv-344 As of: 09/26/2012 09:25 PM EDT 2 of 3
317−238−6313 Fax: 317−636−1507 Email: bstrawbridge@kdlegal.com LEAD ATTORNEY ATTORNEY TO BE NOTICED
Matthew C Branic Indiana Attorney General's Office − IAG/302 Indiana Government Center South 302 W Washington Street 5th Floor Indianapolis, IN 46204−2770 317−234−6685 Fax: 317−232−7979 TERMINATED: 06/09/2010 LEAD ATTORNEY ATTORNEY TO BE NOTICED

Date Filed 10/13/2006 10/13/2006 10/16/2006 10/16/2006
11/20/2007
02/27/2008 02/27/2008 02/29/2008 01/04/2010 01/05/2010 06/08/2010 06/08/2010 06/09/2010

# Docket Text
1 COMPLAINT against Centier Bank, filed by United States of America. (Attachments: # 1 Exhibits 1 through 8 # 2 Civil Cover Sheet)(sda, ) (Entered: 10/13/2006)
2 EMERGENCY UNOPPOSED MOTION for Entry of Consent Order by United States of America. (sda, ) (Entered: 10/13/2006)
3 ORDER granting USA's Unnopposed 2 Motion for Entry of Consent Order. By separate order entered this date, the Court will enter the consent order. Signed by Judge Rudy Lozano on 10/16/06. (sda, ) (Entered: 10/16/2006)
4 CONSENT ORDER entered. The Court shall retain jurisdiction for the duration of this Consent Order to enforce the terms of the Order, after which time the case shall be dismissed. Signed by Judge Rudy Lozano on 10/16/06. (sda, ) (Entered: 10/16/2006)
5 ORDER that this matter is before the Court sua sponte. The Court DIRECTS the Court Clerk to mark this action closed for statistical purposes and ORDERS that the Court shall retain jurisdiction for the duration of the Consent Order in the event a dispute arises that requires Court resolution. This order shall not prejudice the rights of the parties to this litigation. Signed by Judge Paul R Cherry on 11/20/07. (sda) (Entered: 11/21/2007)
6 NOTICE of Appearance by Matthew C Branic on behalf of Centier Bank (Branic, Matthew) (Entered: 02/27/2008)
7 Joint MOTION to Amend/Correct 4 Order Agreed Motion to Amend Consent Order by Defendant Centier Bank. (Branic, Matthew) (Entered: 02/27/2008)
8 ORDER GRANTING 7 Motion to Amend Consent Order. Signed by Judge Rudy Lozano on 2/29/2008. (rmn) (Entered: 02/29/2008)
9 Joint MOTION to Amend/Correct 4 Order by Plaintiff United States of America, Defendant Centier Bank. (Branic, Matthew) (Entered: 01/04/2010)
10 ORDER GRANTING 9 Motion to Amend Consent Order. Signed by Judge Rudy Lozano on 01/05/2010. (rmn) (Entered: 01/05/2010)
11 NOTICE of Appearance by Bryan Steven Strawbridge on behalf of Centier Bank (Strawbridge, Bryan) (Entered: 06/08/2010)
12 MOTION to Substitute Attorney Bryan S. Strawbridge for Matthew C. Branic by Defendant Centier Bank. (Strawbridge, Bryan) (Entered: 06/08/2010)
13 ORDER granting 12 Motion for Substitution of Counsel and ORDERS that the appearance of Attorney Matthew C Branic is hereby WITHDRAWN. Signed by Magistrate Judge Paul R Cherry on 6/9/2010. (rmn) (Entered: 06/09/2010)

Case: 2:06-cv-344 As of: 09/26/2012 09:25 PM EDT 3 of 3

02/29/2012 03/05/2012

14 Joint MOTION to Dismiss by Defendant Centier Bank, Plaintiff United States of America. (Strawbridge, Bryan) (Entered: 02/29/2012)
15 ORDER granting 14 Motion to Dismiss. Accordingly, the Consent Order entered in this case on October 16, 2006, as subsequently amended, is TERMINATED and this case is DISMISSED with prejudice. Signed by Judge Rudy Lozano on 3/5/2012. (rmn) (Entered: 03/06/2012)

 
 FOR IMMEDIATE RELEASE FRIDAY, OCTOBER 13, 2006 WWW.USDOJ.GOV

CRT (202) 514-2007 TDD (202) 514-1888

Justice Department Reaches Settlement with Centier Bank Regarding Alleged Discrimination in Lending
WASHINGTON – The Justice Department today announced that Centier Bank of Whiting, Ind., will invest more than $4.3 million and open new branches in minority neighborhoods in the northwestern portion of the state, to resolve allegations that it engaged in a pattern of discrimination on the basis of race and national origin.

The Justice Department alleges that Centier violated the Fair Housing Act and the Equal Credit Opportunity Act by unlawfully failing to market and provide its lending products and services on an equal basis to predominately African American and Hispanic neighborhoods in the cities of Gary, East Chicago and Hammond—a practice known as redlining.

The Justice Department and Centier reached a consent order, which was filed in conjunction with the complaint in federal district court in Hammond, Ind. Under the agreement, which remains subject to court approval, Centier is prohibited from discriminating on the basis of race, color, or national origin in any aspect of a residential real estate-related or credit transaction.

“All Americans should be able to access the financial markets without fear of unlawful discrimination,” said Wan J. Kim, Assistant Attorney General for the Civil Rights Division. “We will continue to vigorously enforce the federal laws that prevent discrimination in credit and lending services. We commend Centier for working cooperatively with the Justice Department in reaching an appropriate resolution of this case.”

Under the settlement, Centier will open new offices and expand existing operations in the previously excluded areas. The bank will also invest $3.5 million in a special financing program and spend at least $875,000 for consumer financial education, outreach to potential customers, and promotion of its products and services in these previously excluded areas.
Centier cooperated fully with the Department’s investigation into its lending practices and agreed to settle this matter without contested litigation. Centier is an Indiana-chartered full service bank, and one of the largest residential and small business lenders in the Gary, Ind., metropolitan area.

This case resulted from an investigation conducted by the Civil Rights Division of the Department of Justice. A copy of the consent decree as well as additional information about fair lending enforcement by the Department of Justice can be obtained from the Justice Department website at http://www.usdoj.gov/crt/housing.
Since Jan. 1, 2001, the Division has filed 213 cases under the Fair Housing Act and the Equal Credit Opportunity Act.

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