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TIAA-CREF Makes $22 Million Deposit with ShoreBank and ShoreBank Pacific-Leading Community Development and Environmental Banks

TIAA-CREF Makes $22 Million Deposit with ShoreBank and ShoreBank Pacific-Leading Community Development and Environmental Banks

Published 01-10-07

Submitted by TIAA-CREF

NEW YORK, January 10, 2007-TIAA-CREF, the leading provider of retirement savings products and services in the academic, medical and cultural fields, today announced the placement of $22 million through multiple Certificates of Deposit, (CD’s) with ShoreBank and ShoreBank Pacific, subsidiaries of ShoreBank Corporation. ShoreBank is America’s first and largest community development bank with assets of $1.8 billion, and one of the few banks in the country that offers "socially responsible" accounts in which funds are earmarked for community redevelopment.

"Many of our clients are looking for investments that offer competitive returns, that are also socially responsible," said Scott Budde, Managing Director and head of TIAA-CREF’s Social & Community Investment Department. "We have found an attractive investment opportunity with ShoreBank, which last year made $400 million in community development loans towards stimulating economic development and catalyzing positive social change."

"TIAA-CREF’s recent deposit is the largest single CD transaction we have had at ShoreBank and ShoreBank Pacific," said Ron Grzywinski, Chairman, and co-founder of ShoreBank Corporation. "Together we will demonstrate what can be accomplished when the mechanisms of capital are harnessed for a social purpose while offering competitive financial returns."

The investment with ShoreBank is the most recent example of TIAA-CREF’s commitment to social and community investing. In May 2006, the organization formed a Social & Community Investing Department to develop new socially oriented products, oversee the screening methodology of socially screened funds, formulate policies around key social issues and manage community investment programs.

In September 2006, TIAA-CREF announced the creation of a $100 million Global Microfinance Investment Program to invest in selected Microfinance Institutions worldwide, the first investment of its kind by a major institutional investor.

The Department also works closely with TIAA-CREF’s asset management organization to enhance TIAA-CREF’s existing socially screened funds, develop new socially screened investment options and implement a series of community investment programs.

The CREF Social Choice fund, initially developed in the 1980s, has grown into the world's largest social screened investment fund for individual investors.

Since its inception in 1973, ShoreBank has expanded to include locations in Chicago, Detroit, and Cleveland. ShoreBank Pacific, chartered in 1997, is headquartered in Ilwaco, Washington. ShoreBank provides individuals, nonprofits, foundations and small businesses with financing and information to develop affordable housing, community centers, and small businesses while encouraging energy-saving "green" design to protect vital natural resources, lower energy costs and add comfort and value.

To support these economic opportunities, ShoreBank relies on foundations, individuals, and other financial institutions that support its commitment to community development to deposit money for a FDIC insured, competitive rate of return. The bank then loans the funds to its customers that are earmarked for community development in underserved communities.

The funding source for the investment with ShoreBank is assets invested in TIAA Traditional, a guaranteed fixed annuity account with nearly $160 billion and 2.3 million investors. TIAA-CREF was able to make a large placement with ShoreBank with the help of the Certificate of Deposit Account Registration Service (CDARS). CDARS, a service of Promontory Interfinancial Network, was created in 2002 to help small banks compete more effectively with large money centers institutions. CDARS offers clients up to $30 million in Federal Deposit Insurance Corporation, (FDIC) coverage and disperses these deposits among several different banks. Small community banks, like ShoreBank, join the CDARS network to "pool" their $100,000 FDIC coverage limits to attract larger depositors.

About ShoreBank and ShoreBank Pacific:

ShoreBank, America’s first and leading community development and environmental bank, serves Chicago’s South and West Sides; the East Side of Detroit and neighborhoods throughout Cleveland. Since its inception in 1973, ShoreBank has provided individuals and businesses with access to a wide range of financial resources and innovative services that stimulate economic development and catalyze positive social change. For more information please visit, www.sbk.com

About Promontory Interfinancial Network, and CDARS:

Promontory Interfinancial Network was founded by key banking and bank regulator executives in 2002. Based in Washington D.C., Promontory was created to help small banks compete more effectively with large money center institutions. Large banks, because of their size, normally have a significant funding advantage over smaller community banks. However, CDARS can offer clients up to $30 million in FDIC coverage to attract larger investors. Promontory offers a range of products and services with CDARS being the most prominent. For more information please visit, www.promnetwork.com

About TIAA-CREF:

TIAA-CREF is a national financial services organization with more than $390 billion in combined assets under management (9/30/06) and the leading provider of retirement services in the academic, research, medical and cultural fields. TIAA-CREF’s Social and Community Investing Department was formed in May 2006 to increase the Investment Management area’s focus on several aspects of socially responsible investing. Further information can be found at http://www.tiaa-cref.org.

TIAA-CREF Individual & Institutional Services, LLC, and Teachers Personal Investors Services, Inc., distribute securities products. Teachers Insurance and Annuity Association (TIAA), New York, NY issues annuities.

Contacts:

Brian Berg-ShoreBank
773.420.4664
Brian_Berg@SBK.com
C37586

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TIAA-CREF

TIAA-CREF

TIAA-CREF is a national financial services organization with more than $380 billion in combined assets under management (6/30/06) and the leading provider of retirement services in the academic, research, medical and cultural fields.

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