Community Profile: Johnstown, PA, MA (Cambria/Somerset Counties)

Executive Summary

Demographics

Cambria County

According to the 2000 census, Cambria County had a population of 152,598, representing a 6.4 percent decrease from 1990. The state of Pennsylvania’s population increased 3.4 percent during the same period.
The racial composition in 2000 was 95.8 percent white, 2.8 percent black, 0.9 percent of Hispanic origin, 0.4 percent Asian, 0.4 percent of other races, and 0.6 percent of people who reported two or more races.
The number of households was 60,531, and the number of families was 40,615.
The median age of Cambria County residents was 41.2 years in 2000. The median age of the state of Pennsylvania’s residents was 38 years.
According to the 2000 census, in Cambria County, 74.8 percent of the housing units were owner-occupied, compared with 71.3 percent for the state of Pennsylvania.
In 2000, 19.7 percent of the population of Cambria County was at least 65 years old, compared with 15.6 percent in the entire state.
While the white population in Pennsylvania declined only 0.34 percent between 1990 and 2000, it declined 7.8 percent in Cambria County.
The year-round vacancy rate in Cambria County was 7 percent in 2000, compared with 6.2 percent for Pennsylvania.

Somerset County

According to the 2000 census, Somerset County had a population of 80,032, representing a 2.3 percent increase from 1990. The state of Pennsylvania's population increased 3.4 percent during the same period.
The racial composition in 2000 was 97.4 percent white, 1.6 percent black, 0.7 percent of Hispanic origin, 0.2 percent Asian, 0.4 percent of other races, and 0.4 percent of people who reported two or more races.
The number of households was 31,222, and the number of families was 22,044.
The median age of Somerset County residents was 40.2 years in 2000. The median age of the state of Pennsylvania's residents was 38 years.
According to the 2000 census, in Somerset County, 78.1 percent of the housing units were owner-occupied, compared with 71.3 percent for the state of Pennsylvania.
In 2000, 18 percent of the population of the Somerset County was at least 65 years old, compared with 15.6 percent in the entire state.
The white population in Pennsylvania declined 0.34 percent between 1990 and 2000 but increased 0.08 percent in Somerset County.
The year-round vacancy rate was 5.9 in Somerset County in 2000, compared with 6.2 percent for Pennsylvania.

HMDA and CRA Loan Data

In 2001, the approval rates for applications for government one- to four-unit residential mortgages were lowest for moderate-income applicants. Government approval rates ranged from 76.1 percent for moderate-income applicants to 90.8 percent for upper-income applicants. Conventional approval rates increased by income, ranging from 29 percent for low-income applicants to 73 percent for upper-income applicants. Overall, 62 percent of applicants for conventional residential mortgages were approved, and 85.5 percent of applicants for government residential mortgages were approved.
When sorted by census tract income, approval rates for government one- to four-unit residential mortgages were 85.7 percent in moderate-income, 83.9 percent in middle-income, and 91.6 percent in upper-income census tracts (there were no applications from low-income tracts). Corresponding approval rates for conventional one- to four-unit residential mortgages were 41.7 percent, 60.7 percent, 59.3 percent, and 79.4 percent, respectively.
There was a 41 percent increase in all HMDA lending from 2000 to 2001. The bulk of the increase was in refinanced loans.
From 2000 to 2001, refinances of existing mortgages increased by 124 percent. Approval rates for refinances varied widely by applicant income -- low income was 27.6 percent, moderate income was 34.2 percent, middle income was 39.5 percent, and upper income was 54.4 percent. When sorted by census tract income, approval rates for refinances also varied widely. Approval rates by census tract income were 15.4 percent in low-income tracts, 27.6 in moderate-income tracts, 43.6 percent in middle-income tracts, and 60.2 percent in upper-income tracts.
For all HMDA-reportable loans combined, the approval rates declined from 1999 to 2000, but rose again in 2001. In 1999, the approval rate was 58.9 percent; in 2000, it was 50.8 percent; and in 2001, it was 53.7 percent. The approval rates for refinanced loans, following the same pattern, were 49 percent in 1999, 34.8 percent in 2000, and 44.5 percent in 2001.
In 1999, 2000, and 2001, low- and moderate-income borrowers represented 20.3 percent, 22.3 percent, and 18.4 percent, respectively, of all reported HMDA originations.
For 1999, 2000, and 2001, financial institutions reported a total of 8,291 small-business and 209 small-farm loans originated in the Johnstown, PA MA. This represented $322,657,000 in financing. Approximately 46.8 percent of the loans over the three years were made to businesses and farms with gross annual revenues of $1 million or less, and 91.6 percent of the loans were for $100,000 or less.
The number of small-business loans of $100,000 or less increased from 1999 to 2001 (1,448 in 1999, 3,043 in 2000, and 3,116 in 2001).
The percentage of all small-business loans in the Johnstown, PA MA that were originated in low-or moderate-income census tracts was 7.3 percent in 1999, 7.9 percent in 2000, and 10 percent in 2001.
From 1999 to 2001, the total number of small-business loans originated in the MA increased from 1,661 to 3,356, and the total dollar amount increased from $85,962,000 to $113,677,000.

Financial Institutions

In 2001, 214 lenders reported originating 7,824 HMDA-reportable loans totaling $404,292,000 in the Johnstown, PA MA. Promistar Bank, with 1,206 loans representing 15.4 percent of the market, had the most originations and also ranked first in total dollar amount with $43,284,000, representing 10.7 percent of the market.
In 2001, 50 lenders reported originating 225 HMDA-reportable loans totaling $6,375,000 in low- and moderate-income census tracts of the Johnstown, PA MA. Promistar Bank, with 31 loans representing 13.8 percent of the market, had the most originations and also ranked first in total dollar amount with $648,000, representing 10.2 percent of the market.
In 2001, 107 lenders reported originating 1,468 HMDA-reportable loans totaling $43,321,000 to low- and moderate-income borrowers in the Johnstown, PA MA. Promistar Bank, with 224 loans representing 15.3 percent of the market, had the most originations and also ranked first in total dollar amount with $5,123,000, representing 11.8 percent of the market.
In 2001, GE Capital Financial, Inc., with 473 loans representing 13.7 percent of the market, originated the most small-business loans in the Johnstown, PA MA. Somerset Trust Company ranked first in total dollar amount with $24,405,000, representing 21.3 percent of the market.
In 2001, Somerset Trust Company, with 54 loans representing 63.5 percent of the market, originated the most small-farm loans in the Johnstown, PA MA and also ranked first in total dollar amount with $1,294,000, representing 38.2 percent of the market.

Community Organizations

The MA has a number of nonprofit organizations devoted to affordable housing and/or provision of social services to LMI households and families. The organizations and their programs are outlined in CHAPTER IV.

Financing Programs

The MA has a number of nonprofit organizations devoted to affordable housing and/or provision of social services to LMI households and families. The organizations and their programs are outlined in CHAPTER V.

Chapter I: Demographics

Chapter II: Home Mortgage Disclosure Act (HMDA) Statement Data

An important source of information about financial institutions' lending patterns in a community is the Home Mortgage Disclosure Act (HMDA) statement. This report is submitted annually to the Federal Financial Institutions Examination Council (FFIEC) and is available to the public for each reporting institution. The types of loans that must be reported are home-purchase loans, for both owner-occupants and nonoccupants; refinancings; home-improvement loans; and loans for improvement and/or purchase of multifamily structures (five or more units). Depository institutions that had at least $32 million on December 31, 2001, and a home or branch office in an MA must file this report.

CRA Small-Business and Small-Farm Lending Data

Starting in 1996, the nation's financial institutions began reporting small-business and small-farm loans as part of their CRA disclosure statements required under the revised CRA regulations. While the information does not have the level of detail of the HMDA statements, it is an important source for understanding commercial lending activity in a community. The types of loans reported include all originations and purchases of commercial loans, lines of credit, and mortgages on nonresidential properties. The loans are reported by size, by geographic location, and for borrowers with annual revenues of $1 million or less. These categories of loans include those with guarantees, such as those provided by the SBA or USDA. Small-farm loans are reported in the same way.

Chapter III: Financial Institutions

Chapter IV: Community Organizations

Chapter V: Special Credit Enhancement/Financing Programs

Public-Private Partnership Financing Programs This section of the report contains a grid describing the many credit enhancement/financing programs available to area banks to provide financing for housing, small businesses, and economic development.

Affordable Housing

Small Business and Economic Development

Maps

Last update: February 2004