CATAWBA REGIONAL DEVELOPMENT CORPORATION 

Cacawba Regional Center 215 Hmpton Street 

P.O. Box 450 Tele. (803) 327.9044 

Rock Hill, South Carolina 29731 FAX (803) 327.1912 

TESTIMONY 

I CATAWBA REGIONAL PLANNING COUNCIL/ 

CATAWBA REGIONAL DEVELOPMENT CORPORATION 

ROCK HILL, SOUTH CAROLINA 

REGARDING 

NATIONSBANK CORPORATION 

BEFORE THE 

FEDERAL RESERVE BOARD OF SAN FRANCISCO HEARING 

SAN FRANCISCO, CALIFORNIA 
Thank you for this opportunity to testify on NationsBank’s behalf. 

I am Harold Shapiro, Executive Director of the Catawba Regional Planning Council and 

its affiliated Development Corporation. Our regional planning council is the council of 

governments for four counties and twenty-one towns and cities in the north central part 

of South Carolina. One of our four counties is within the Charlotte metropolitan area. 

The remaining three are relatively rural and poor. To put our region’s size in perspective, 

the approximate population of our largest county is 145,000 and our largest city 50,000. 

As a council of governments we provide a wide range of services Key among these is 

community and economic development in the form of research, planning, 

grantsmanship, project management and lending Lending is conducted primarily 

through our public, non-profit Development Corporation which uses resources such as the 

SBA 504 program, the EDA Revolving Loan Fund, and the Rural Development 

Intermediary Relending Program. Since 1985. our Development Corporation has made 

over 90 loans. totaling $16 million. Our borrowers have created over 1.000 jobs. 

My purpose today is to tell you about NationsBank’s support of our community and 

business lending activities. NationsBank’s involvement is varied. NationsBank is 

represented on our Development Corporation’s Board of Directors by Mr. Randall Imler. 

His credit analysis experience and his creative approach to community lending have been 

invaluable. 
In related activities, NationsBank has helped promote our lending services by providing 

funding for promotional materials. It has helped sponsor the first of a planned series of 

business seminars such as the one recently held to promote child care facilities in lowincome areas. NationsBank also has enabled us to start a successful community lending 

program. This program offers micro loans to low-income residents throughout the region 

for small business development and for homeowner repairs. 

Our community lending program began two years ago with a $400,000 three-percent 

interest loan from r\TationsBank. In a truly collaborative effort, its bankers and our staff 

developed a region wide lending strategy to serve the needs of low-income residents. 

These loan funds are available for use throughout our region’s communities regardless of 

whether NationsBank has a presence or not. 

While other banks may eventually participate in this community lending program, 

NationsBank was the first to commit. Of the other banks expressing interest. not one has 

come close to matching NationsBank’s funding. 

Our community lending program is successful. Loans range from $1 .OOO to lF50.000. To 

date, over one-third has been lent to help low-income residents establish businesses or 

make essential home repairs. Although these loans are open to all applicants meeting the 

low-income guidelines, all of our business loans to date have gone to minority or women 

owners. 
. 

Is NationsBank’s involvement in community and economic development unique to our 

own organization or area? We believe community participation is part of the bank’s 

overall corporate culture. In 1994 NationsBank bought out a prominent local bank. At 

the time, there was concern as to the extent of NationsBank’s commitment to local civic 

activities. Time has shown that its bankers have become prominently involved in 

numerous community and cultural causes. Also, in checking with some of our own 

counterparts within South Carolina, we have found that NationsBank is active in 

community and economic development lending in other areas within the state. 

. 

Our experience in working with NationsBank may have some wider implications, 

Although our agency is an independent entity with its own policy board and staff, we also 

are part of a nationwide voluntary network of similar organizations. Many of these have 

experience in operating revolving loan funds. These organizations generally have an indepth, practical understanding of local economic and community development needs. 

Rural areas of our country, in particular, rely heavily on such agencies to provide needed 

economic development assistance. including community and business public sector 

lending. I believe this network, represented through organizations such as the National 

Association of Development Organizations. would welcome the opportunity to assist 

national banking institutions in partnering with their community lending programs. 

In closing, I want to emphasize that our strong testament of support for NationsBank 

comes from the history of our working relationship. WC hope our example provides 

insight into NationsBank’s community lending activities. 
Thank you for the opportunity to make these comments. 
TESTIMONY OF 

CARLTON J. JENKINS 

AT THE HEARING OF THE FEDERAL RESERVE BANK OF SAN 

FRANCISCO ON 

PLANNED MERGER OF NATIONSBANK AND BANK OF 

AMERICA 

Jay 2% ,1998 

SAN FRANCISCO 

Carlton J. Jenkins 

President & CEO 

Founders National Bank of Los Angeles 

And Member, American Bankers Association, Independent Bankers 

Association of America, California Bankers Association, 

Western Independent Bankers 
I 

Thank you for allowing for the opportunity of my participation here today to 

address the Federal Reserve Bank of San Francisco on this very important topic. 

My name is Carlton J. Jenkins and I am here today in my capacity as President 

and CEO of Founders National Bank of Los Angeles. 

Our institution is one of only 3 African American owned financial institutions 

located in Los Angeles, California. 

Since our opening in 1991, our institution which serves primarily consumers and 

small businesses in the inner city areas of Los Angeles and surrounding 

communities, has grown into an institution serving over 17,000 accounthoIders 

through a 5 branch system encompassing $100 million in assets. 

I am here at the invitation of newest institutional ally NationsBank primarily 

and in support of our historical ally and strategic partner Bank of America. 

It is important to note for the purpose of this hearing that our institution is also 

member of the Western Independent Bankers Association, California Bankers 

Association, Independent Bankers Association of America, and the American 

Bankers Association as well as a past member of the National Bankers 

Association. 

I site these alliances because I want it understood that as a community banker, 

my testimony today is not meant to make appear deminus our institutional 

concerns about the disadvantageous impact this merger will have on institutions 

like ours relative to competition for loans and deposits, market place pricing of 

products, credit card monopolies, insurance and mutual fund product sales etct. 

I am here today recognizing that the positive nature of my testimony will 

undoubtedly fly in the face of the opposition to th_F merger raised by community 

groups, bank trade groups, community banks, etc., but I thought it important 

that the record reflects some of the positive experiences this institution has had in 

its historical dealings with BankAmerica as well as its most recent dealings with 

Nations Bank pre merger announcement. 

I feel this historical perspective is important because I believe it to be 

demonstrative of the kind of positive impact that a major bank’s CRA 

commitment when focused can have on minority banks and their ability to serve 

inner city communities. 
Additionally, I believe the commentary herein on our prospective relationship 

relative to Nations Bank evidences that kind of relationship that can and will 

undoubtedly occur as a result of the newest CRA commitment made by the 

Bankamerica/Nations Bank organization. 

BankAmerica has been an extremely significant participant in the growth and 

maturation of Founders National Bank since its opening in 1991. This, in spite of 

the fact that in several of our branch locations, we are clearly a competitive 

institution to them for both deposits and loans. 

BankAmerica has, through our long term relationship with their EVP Don 

Mullane and as a direct consequent of its CRA commitment here in Los Angeles 

assisted Founders National Bank of Los Angeles since 1991 by providing: 

1. $1.8 million loan to the bank’s shareholders to refinance initial debt 

incurred in starting the institution. 

2. $330,000 in new Tier 1 equity capital through its purchase of Preferred 

stock in Founders 

3. $700,000 in new Tier 2 equity capital through its issuance of 

subordinated debt. 

4. Assistance in the acquisition of 2 branch banking offices that it planned 

to close as a result of its merger with Security Pacific Bank. 

5. Assistance in analysis of asset/liability policies and investment 

strategies to maximize the bank’s overall profitability. 

Nations Bank, through the efforts of SW Beryl Basham (and before the merger 

was announced) has over the last several months been seriously evaluating its 

ability to provide Founders National Bank of Los Angeles the following: 

1. Access to the purchase of approximately $10 Million in Nations Bank 

consumer loans. 

2. Infrastructural support in areas such as training, marketing and 

computer automation systems and process analysis. 

3. Loan Participation Relationships ’ 

4. Private Banking Services 

5. Cash Management Services 

6. Credit card Services 

7. ATM related services 

The relationship with BankAmerica/Nations Bank and their respective 

representatives, EVP Don Mullane and SW Beryl Basham has been and is 

expected to continue to be exkemely beneficial to this growing minority owned 

financial institution and is a example of the kind of proactive involvement that is 
possible from major banks relative to small community based minority owned 

financial institutions. 

Mr. Mullane and most recently Ms. Basham on behalf of their respective 

institutions, have evidenced a genuine interest in providing the mentorship, 

access and institutional support critical to minority banking institutions on a 

going forward basis. 

Each of the components of these relationships provide minority banks with 

additional capital strength, earnings capacity and new products and delivery 

systems capabilities, thereby ensuring that inner city communities continue to 

have viable competitive and indigenous financial institutions as banking services 

provider options. 

Accordingly, I believe that the proposed merger offers unique new opportunities 

for minority banks around the country to create a new and powerful alliance and 

strategic partnership as a result of the bank’s newest CRA commitment to 

economic development and minority banking organizations.