Los Angeles Bank Provides CRA Relief to Banks Nationwide

EAST LOS ANGELES, Calif.--(Business Wire)--
Pan American Bank (Los Angeles) today announced its Minority-Owned Bank Deposit
Program. The Program provides Community Reinvestment Act credit to banks across
the country through FDIC-insured deposits at the Bank. The Program also provides
favorable returns relative to Federal funds transactions.

"Although the headlines over the past year have focused on the financial woes of
the banking industry, regulators expect the significant percentage of able banks
to continue to comply with regulatory requirements, including the Community
Reinvestment Act," said Pan American Bank President and CEO Jesse Torres. "Today
banks are hesitant to make traditional community development investments. And
that`s where our Minority-Owned Bank Deposit Program meets the CRA needs of
banks across the country. A $250,000 CD account with our bank is fully
FDIC-insured and provides the depositing bank with credit under the CRA`s
investment test."

Pan American Bank`s Minority-Owned Bank Deposit Program is based upon the 1992
provision that was added to the Community Reinvestment Act that provides
favorable consideration to banks that make deposits and other forms of
investments in minority-owned banks. According to the 1992 provision to the CRA,
federal bank and thrift regulatory agencies, when evaluating a bank`s CRA
performance, must consider as a factor deposits, capital investments, loan
participations and other activities undertaken by the institution in cooperation
with minority-owned financial institutions, provided that these activities help
meet the credit needs of the local communities in which the minority-owned
institutions are chartered.

"Pan American Bank serves a very important niche - the low- and moderate-income
Latino populations in Los Angeles and Orange counties. We provide the necessary
coaching and counseling that this segment requires and which larger institutions
are unable or unwilling to provide," said Torres. "However, through our
Minority-Owned Bank Deposit Program, larger or mainstream banks can share the
credit by establishing a CD with us."

Pan American Bank`s program is available to financial institutions nationwide.
In January 2006, the four federal bank and thrift regulatory agencies issued an
interagency letter that reaffirmed the CRA statutory intent by stating that
financial institution investments (including deposits) in minority-owned banks
will receive favorable CRA consideration, even if the minority-owned institution
is not located in the assessment area of the investing institution.

Originally established in 1964 as Pan American National Bank, Pan American Bank,
a minority-owned bank headquartered in East Los Angeles, serves the needs of the
low- and moderate-income Latino community in Los Angeles and Santa Ana. Founded
by former U.S. Treasurer Romana Acosta Banuelos, the Bank has stayed true to its
mission of serving the working class Latino community.

Pan American Bank
Jesse Torres, 323-264-3310
JTorres@PanAmericanBank.US

Copyright Business Wire 2009