CRAE_02853_19980706_60 by suchufp


									                              GENERAL INFORMATION

The Community Reinvestment Act (CRA) requires each federal financial supervisory
agency to use its authority when examining financial institutions subject to its
supervision, to assess the 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. Upon conclusion
of such examination, the agency must prepare a written evaluation of the
institution's record of meeting the credit needs of its community.

This document is an evaluation of the Community Reinvestment Act (CRA)
performance of Del Norte Federal Savings and Loan Association (Del Norte
Federal), prepared by the Office of Thrift Supervision, the institution's
supervisory agency, as of July 6, 1998. The agency rates the CRA performance
of an institution consistent with the provisions set forth in Appendix A to 12
CFR Part 563e.

INSTITUTION'S CRA RATING:   This institution is rated Satisfactory.

Del Norte Federal's loan to deposit ratio is reasonable. A majority of the
originated loans are in the assessment area. The distribution of loans to
individuals of different income levels is low, but reasonable and the geographic
distribution of loans reflects reasonable distribution in the institution's
assessment area.

No consumer complaints have been received since the previous examination of July
15, 1996.

Del Norte FS&LA
Del Norte, CO
July 6, 1998


Del Norte Federal provides banking, credit, and other services to individuals
within the community. The institution's home office is located in Del Norte,
Rio Grande County, Colorado. The mortgage products offered include conventional
fixed- and adjustable-rate mortgage loans secured by 1-4 family dwellings.
Loans with up to 90 percent loan-to-value are made without private mortgage
insurance. Other loans include consumer, home improvement, commercial real
estate, and savings account loans. At June 30, 1998, Del Norte Federal had total
assets of $13.2 million.

Presently, there are no known legal impediments or adverse economic conditions
that may interfere with the institution's ability to meet various community
credit needs.


Del Norte Federal has designated, as its assessment area, all of Rio Grande
County, Colorado. This area contains four Block Numbering Areas (BNAs), of which
two are defined as moderate-income and two as middle-income. It is noted,
however, that because of competition and limited resources, Del Norte Federal
traditionally and primarily originates loans in the Del Norte area. Very few
loans are granted in one moderate-income BNA, where the town of Monte Vista is
situated. The families in this BNA comprise approximately 56.0 percent of all
families in Rio Grande County. Del Norte Federal's assessment area does not
arbitrarily exclude any low- and moderate-income neighborhoods.

The population of the assessment area is approximately 11,000 with 3,033
families. The updated median-family income utilized in the analysis for the
assessment area for 1997 and 1998 was $38,700 and $39,000, respectively. For
comparative analysis, the 1996 Home Mortgage Disclosure Act (HMDA) Disclosure
Statement (most currently available) for all major lender in mortgage
originations was utilized.

The major employers for the assessment area include wholesale and retail trade,
services, and manufacturing.


The loan to deposit ratio is reasonable. For the 2-year period from July 1, 1996
to June 30, 1998, the average loan to deposit ratio was 72.9 percent.

A majority of the mortgage loans were granted in the institution's assessment
area. During the 18-month review period of January 1, 1997 to June 30, 1998,
the institution originated 42 mortgage loans totaling approximately $3.5
million, of which 35 ($3.0 million) or 83.3 percent were within the assessment

Del Norte FS&LA
Del Norte, CO
July 6, 1998

As shown below, the institution's distribution of loans to individuals of
different income levels is low, but reasonable.

    Income Levels        % of                      % of          % of Loans by
    of Borrowers         Families                  Loans         All Lenders (1)

    Low and Moderate      53.1 %                   25.7 %             23.2 %

    Middle                20.0 %                   17.1 %             24.6 %

    Upper                 26.9 %                   57.2 %             40.6 %

    Not Available                                                     11.6 %

    (1)     The information is from the 1996 HMDA Disclosure Statement on lenders
            that are subject to HMDA and originated mortgage loans in Rio Grande

As previously stated, the one moderate income BNA is located approximately 25
miles from the institution's office in a town with two thrift institutions or
branches as well as several commercial banks. Del Norte does not actively solicit
loans from that area.

One community contact stated that many low- and moderate-income families in the
Del Norte area are unable to obtain a mortgage loan due to insufficient income
and downpayment, and poor credit history. Additionally, the available housing
stock is very limited, with only 10 to 20 houses annually listed for sale and
most are in the $60,000 to $80,000 range.

The geographic distribution of loans indicates a reasonable dispersion in the
assessment area, as shown below:

    BNAs                           No.           No. Penetrated

    Moderate Income                      2                  17

    Middle Income                        1                  18

Based on a limited review, no violations of the substantive provisions of the
antidiscrimination laws and regulations were identified and no evidence of other
illegal practices were noted.


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