Presentation by: Paul H. Olson Community Bank President Northeast Arizona Wells Fargo Bank Arizona, N.A. 211 North Leroux Street Flagstaff, AZ 86001 928-774-5031 paul.h.olson@wellsfargo.com Vision of Wells Fargo & Company To satisfy all of our customers' financial needs and help them succeed financially. Values Our product is service Our value added is financial advice and Our competitive advantage is our people Vision of Wells Fargo & Company To satisfy all of our customers' financial needs and help them succeed financially. Wells Fargo Native American Communities Wells Fargo's Community Bank 23-state territory contains 90% of federally-recognized tribes and a majority of the Native American population of the U.S. Wells Fargo has relationships with 40 tribes in 10 states Wells Fargo has more stores on Indian Reservation than any other financial services company The Native American Banking Services group creates jobs and economic opportunities through lending and investments on tribal lands Wells Fargo's Retail Network in Native American Communities Wells Fargo has 17 banking locations on Indian Reservation lands Alaska 1 stores Arizona 6 stores Colorado 1 store New Mexico 2 stores South Dakota 2 stores Utah 4 stores Wyoming 1 store These stores serve predominantly low- and moderate-income areas In most cases, these are the only banks serving these reservations Native American Communities in Arizona Native American population: 192,202 = 5.2% of state Navajo Nation largest tribe in U.S. (175,000) 6 stores on the Navajo Nation 5 Traditional Stores Window Rock, AZ Chinle, AZ Kayenta, AZ Tuba City, AZ Shiprock, N.M. 1 In Store, Bashas' Supermarket Pinion, AZ Source: 1990 Census Why Bank on the Navajo Nation? Navajo Initiatives Expanded our banking facilities (4 new buildings) Participation in Decision Making: Community Advisory Board Employees are Navajo Small Business Development Loan Commitment for Mortgage and Consumer Credit Needs Assessment CARE: Education Program for chapter houses and schools KEY: Financial Education for community and employees LIFT: Low Income Flexible Terms Window Rock Where we are today Northeast AZ numbers only 44 Employees $1.2mm Personnel Expense $5mm of Commercial commitments Financially viable stores Open More Branches? Closest current WF location to prospective area Normally we look for areas with high economic growth Low HH growth Number of competitors Can't use normal financial model or time frame Our goal is to Partner with a tribe Politics usually gets in the way Maturity of governance is key Format: Prefer stand alone buildings Don't be concerned with sovereignty Wells Fargo Involvement with Arizona Native American Organizations Wells Fargo has the most stores on Native American reservations (6 stores) Participating lender in National One-Stop Mortgage Program WFHM Approved HUD 184 Lender Focus on Native American loans through Wells Fargo's Commercial Banking Group Employee and/or Financial Support: Native Americans for Community Actions, Inc. National Center for American Indian Enterprises Arizona Native American Economic Coalition Northeast Native American Initiatives Navajo Partnership for Housing; $100m grant in `01 Fort Defiance Housing Authority; $10m grant in `01 Navajo Housing Services; $10m grant in `00 Presidents Housing Task Force Indigenous Community Enterprises Northern Arizona University: College of Business Administration: retain students Indigenous Studies: Governance Training Summer Intern Program Twilight Dawn, $10m grant in `00 Higher Ed Scholarships annually of $5m Native American Mortgage Lending Challenges Goal: Provide mortgages eligible for the secondary market Laws Tribal sovereignty - each tribe unique Government Policies Obtaining home site leases Bureau of Indian Affairs approval/recordation process - multiple offices Secondary Market Streamlined mortgage approval process Homebuyers Club - culturally sensitive credit counseling EDUCATION This took 7 years to achieve on the Navajo Nation Wells Fargo Home Mortgage, Inc. WFHM operates the leading mortgage lending network in the country WFHM funds approximately one of every 11 homes financed annually in the United States WFHM Emerging Markets team specializes in identifying the opportunities for home lending and services to underserved markets, especially Native Americans WFHM is the leading home purchase lender on tribal trust land Placed a HMC in Window Rock Wells Fargo - HUD 184 Leader Wells Fargo Home Mortgage is the leading national provider of HUD 184 mortgage loans as well as the largest producer specifically on trust lands Congress created the HUD Section 184 Indian Home Loan Guarantee Program in 1992, which authorized HUD to guarantee loans made by private lenders to Native Americans The 184 Program is unique because it requires approval from two different government entities since the land being mortgaged or encumbered is held in trust by the federal government Resources for the Small Business Market Wells Fargo launched the Resource Center for Small Business Owners in June 2000 (wellsfargo.com/biz) Comprehensive web site that offers information, access to banking product applications, and use of on- and off-line banking services Financial education content incorporated throughout the site Arizona Native American Economic Coalition Northern Arizona University Small Business Center Summary To satisfy all of our customers' financial needs and help them succeed financially. My bank will only be as strong as the community I serve.