O LARGE BANK

O

Comptroller of the Currency Administrator of National Banks

Washington, DC 20219

LARGE BANK

Public Disclosure

November 2, 2008

Community Reinvestment Act Performance Evaluation

Chase Bank USA, N.A. Charter Number: 23160 200 White Clay Center Drive

Newark, DE 19711

Office of the Comptroller of the Currency

Large Bank Supervision 250 E Street, SW Mail Stop 6-1

Washington, DC 20219

NOTE:

This document is an evaluation of this institution's record of meeting the credit needs of its entire community, including low- and moderate-income neighborhoods, consistent with safe and sound operation of the institution. This evaluation is not, and should not be construed as, an assessment of the financial condition of this institution. The rating assigned to this institution does not represent an analysis, conclusion, or opinion of the federal financial supervisory agency concerning the safety and soundness of this financial institution.

Table of Contents

Charter Number: 23160

OVERALL CRA RATING ....................................................................................................................... 2

DEFINITIONS AND COMMON ABBREVIATIONS ........................................................................... 4

DESCRIPTION OF INSTITUTION ........................................................................................................ 8

SCOPE OF THE EVALUATION............................................................................................................ 9

FAIR LENDING OR OTHER ILLEGAL CREDIT PRACTICES REVIEW..................................... 10

CONCLUSIONS WITH RESPECT TO PERFORMANCE TESTS................................................. 11 LENDING TEST.................................................................................................................................. 11 INVESTMENT TEST.......................................................................................................................... 17 SERVICE TEST.................................................................................................................................. 20

APPENDIX A: SCOPE OF EXAMINATION.................................................................................... A-1

APPENDIX B: MARKET PROFILES FOR FULL-SCOPE AREAS ............................................ B-1

APPENDIX C: TABLES OF PERFORMANCE DATA .................................................................. C-1

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Chase Bank USA, N.A.

Overall CRA Rating

Charter Number: 23160

Institution's CRA Rating: This institution is rated Outstanding.

The following table indicates the performance level of Chase Bank USA, N.A. with respect to the Lending, Investment, and Service Tests:

Chase Bank USA, N.A. Performance Tests

Performance Levels

Lending Test* Investment Test Service Test

Outstanding

X

X

High Satisfactory

X

Low Satisfactory

Needs to Improve

Substantial Noncompliance

* The lending test is weighted more heavily than the investment and service tests when arriving at an overall rating.

The major factors that support this rating include:

? Excellent level of community development services through active employee participation in community organizations and programs, often in leadership roles. Many of these services are highly responsive to identified needs of the assessment area (AA).

? Excellent responsiveness to community development needs in the AA as well as the statewide and broader regional areas through qualified investments and grants. Overall, Chase USA made approximately $290 million in investments and grants in the current period while $232 million in prior period investments remain outstanding. These amounts represent nearly $100 million more in investments by the Bank as compared to the evaluation period for the prior examination.

? In addition to the Bank's investments in the AA and throughout the State of Delaware, the bank also invested in states making up its broader regional area that includes its AA. Current period investments totaled nearly $80 million while prior period investments, totaling nearly $60 million, continue to have a positive impact in the broader regional area with the potential to benefit the AA.

? Because Chase USA adequately met the community development investment needs in its AA, additional consideration was given to investment activities benefiting the broader regional area with no potential to benefit the AA. An additional $163 million in current period investments and $123 million in prior period investments were made in a broader regional area with no potential benefit to the specific AA. Many of these are investments in low-income housing tax credit projects. Affordable, low-income housing is an identified need both within the AA and the Bank's broader regional area.

? Excellent distribution of home mortgage loans and adequate distribution of small loans

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Chase Bank USA, N.A.

Charter Number: 23160

to businesses throughout the AA, including low- and moderate-income (LMI) geographies.

? Excellent home mortgage lending to borrowers of different income levels, including LMI borrowers.

? Good community development lending that is responsive to the community development needs of the AA as well as the broader statewide and regional areas. Proceeds from these loans were used to finance the construction of affordable housing units for LMI families and schools that primarily cater to LMI students from distressed school districts. In addition, funds were used to create programs for job training, early childhood development, and HIV/aids care for LMI individuals. This lending was considered, but was not strong enough to appreciably impact the overall lending test rating.

? In addition to the Bank's community development lending in the AA and throughout the State of Delaware, the bank also lent in states making up its broader regional area that includes its AA. Community development lending in the broader regional area with the potential to benefit the AA totaled nearly $140 million. An additional $126 million in community development lending was made in a broader regional area with no potential benefit to the specific AA.

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Chase Bank USA, N.A.

Charter Number: 23160

Definitions and Common Abbreviations

The following terms and abbreviations are used throughout this performance evaluation, including the CRA tables. The definitions are intended to provide the reader with a general understanding of the terms, not a strict legal definition.

Affiliate: Any company that controls, is controlled by, or is under common control with another company. A company is under common control with another company if the same company directly or indirectly controls both companies. A bank subsidiary is controlled by the bank and is, therefore, an affiliate.

Aggregate Lending: The number of loans originated and purchased by all reporting lenders in specified income categories as a percentage of the aggregate number of loans originated and purchased by all reporting lenders in the MA/assessment area.

Census Tract (CT): A small subdivision of metropolitan and other densely populated counties. Census tract boundaries do not cross county lines; however, they may cross the boundaries of metropolitan areas. Census tracts usually have between 2,500 and 8,000 persons, and their physical size varies widely depending upon population density. Census tracts are designed to be homogeneous with respect to population characteristics, economic status, and living conditions to allow for statistical comparisons.

Community Development (CD): Affordable housing (including multifamily rental housing) for low- or moderate-income individuals; community services targeted to low- or moderate-income individuals; activities that promote economic development by financing businesses or farms that meet the size eligibility standards of the Small Business Administration's Development Company or Small Business Investment Company programs (13 CFR 121.301) or have gross annual revenues of $1 million or less; or, activities that revitalize or stabilize low- or moderateincome geographies.

Effective September 1, 2005, the Board of Governors of the Federal Reserve System, Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation have adopted the following additional language as part of the revitalize or stabilize definition of community development. Activities that revitalize or stabilize-

(i) Low-or moderate-income geographies; (ii) Designated disaster areas; or (iii) Distressed or underserved nonmetropolitan middle-income geographies

designated by the Board, Federal Deposit Insurance Corporation, and Office of the Comptroller of the Currency, based ona. Rates of poverty, unemployment, and population loss; or b. Population size, density, and dispersion. Activities that revitalize and stabilize geographies designated based on population size, density, and dispersion if they help to meet essential community needs, including needs of low- and moderate-income individuals.

Community Reinvestment Act (CRA): the statute that requires the OCC to evaluate a bank's record of meeting the credit needs of its local community, consistent with the safe and

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