Press Room

FOR IMMEDIATE RELEASE

Contact: Tabitha J Lacy, Communications, HECA, 205-323-9888; 205-936-8326
At First American Bank, please contact LeDon Jones, 205-421-2211.

First American Bank joins HECA/Fund Partnership

BIRMINGHAM, Ala., March 14, 2006 -- First American Bank has become the first new institutional investor in the Housing Enterprise of Central Alabama and the Housing Fund of Central Alabama, HECA CEO Michele Jenkins-Utomi announced today.

First American joins the four founding investor institutions in this community-spirited joint venture whose aim is to significantly increase the supply of safe, decent, moderately priced housing: AmSouth Bank, Regions Bank, Compass Bank and New South Federal Savings Bank.

The Housing Enterprise of Central Alabama, LLC (HECA) is a community development lender that loans money to qualified private and non-profit developers of moderately priced housing. With First American’s investment, HECA’s loan fund has grown to $54 million.

“We look forward to working with HECA and the other investors involved in the partnership” said Robert B. Aland, First American Bank President -- Birmingham Region. “And we hope to make a significant impact on the availability and quality of affordable housing in the counties we serve here at First American Bank.”

The Housing Fund of Central Alabama (the Fund), HECA’s non-profit affiliate, works to increase the production of moderately priced housing by providing grants to non-profits for core-operating support on a limited basis, technical assistance, and programs related to capacity building. Through its grants, the Fund also supports ancillary services such as homebuyer training and credit counseling, which help to bolster the success and sustainability of communities.

The Fund also partners with HECA to provide gap financing to qualified non-profit and private developers. This may take the form of a grant, mezzanine debt or forgivable loan. This partnership capacity is unique in the region, and was purposeful on the part of the founders.

The Fund and HECA provide niche products and services as a means of meeting needs that are otherwise not being met in the private market, as well as act as advocates for affordable housing policies and efforts.  Loans can be structured to provide up to 100% project financing with limited recourse. Eligible projects include: single family housing or multi-family; acquisition and rehabilitation; new construction; and subdivision development.

 “First American is pleased to support our community through our partnership with such outstanding organizations as HECA and the Fund.  Their mission to provide housing opportunities to families and individuals with moderate means is perfectly aligned with First American’s community outreach initiatives” said LeDon Jones, Assistant Vice President, Community Development Officer at First American.

From the start, HECA’s founders viewed this as a collaborative effort that would continue to build momentum with the addition of new partners, Ms. Jenkins-Utomi said. “It has certainly been the vision of investor banks that by collectively bringing to bear greater, more focused resources, and leveraging these dollars, that we could truly address the housing needs of people of modest means. So we welcome First American Bank as the first new investor institution. And we encourage other banks and foundations to consider joining us in this vital mission,” she said.

First American Bank endeavors to invest a generous portion of its time and finances to assist the community in its progress. First American Bank (www.first-american.com) has $2.7 billion in assets and provides a broad range of innovative banking products and convenient services. Formerly National Bank of Commerce of Birmingham (NBC), NBC joined forces with its sister bank to unite under one name - First American Bank - in February 2005.  First American has 34 locations in Alabama including 16 in the Birmingham metro area.  It is the lead bank of the publicly traded Alabama National BanCorporation holding company, which has 10 bank subsidiaries in Alabama, Florida, and Georgia. 

HECA serves 12 counties in Central Alabama: Bibb, Blount, Calhoun, Chilton, Cullman, Etowah, Jefferson, St. Clair, Shelby, Talladega, Tuscaloosa and Walker.

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