Hi folks: I need your help before the San Francisco Fed's conference. We're going to discuss best practices and biggest challenges during my session.

Can you share with me your worst challenge in regards to CRA and the one thing you think you do that really rocks when it comes to your CRA program? Pretty please?

Greatest challenge:

This bank was established 5 years ago by folks who were dissatisfied with the level of service the big banks (including their own employers) were providing to good customers. The niche we carved out is exceptional quality service to small-to-mid-size businesses & professionals (like doctors, dentists, lawyers).

So now we're approaching large-bank status - end of this year - and we're struggling with our product line. Are we adequately serving the lower end of the economic spectrum?

Couple this with our willingness to capitalize on opportunities - we saw a bank merger locally that displaced some really good people. So we opened a branch about 18 months ago in the middle of downtown Grand Rapids Michigan, in a moderate income tract. The branch is in leased space, and we don't even have outside signage.

And it's somewhat in contrast to our overall strategy. Stated simply, we prefer not to open a whole bunch of branch offices. In fact, I'd expect that over time, the new branch will spin off into its own bank.

Those that know of us perceive us as the bank of the rich. Those that don't know of us - don't know of us. So how do we change those perceptions without shooting our CRA foot off?

Best things we did:

We recognized that we'd need help, so we hired a CRA person with 12+ years of experience (me). We're also opening a formal, standalone, non-leased branch later this year in that market - still in the mod tract. We're starting an outreach program for community leaders & nonprofits. And we recognize that we really didn't consider CRA when pouncing on this branching opportunity.

We have a LOT of work to do, but we have a great staff that's willing to do whatever it takes. Feel free to use us as a poster child for how not to enter a new market as a small institution - provided you share any suggestions!