§ 25.30 Intermediate bank and savings association performance evaluation. ( a ) *Intermediate bank or savings association performance evaluation* — ( 1 ) *In general.* The appropriate Federal banking agency evaluates an intermediate bank's or savings association's record of helping to meet the credit needs of its entire community pursuant to the Retail Lending Test in § 25.22 and the Intermediate Bank and Savings Association Community Development Test as provided in paragraph (a)(2) of this section, unless an intermediate bank or savings association opts to be evaluated pursuant to the Community Development Financing Test in § 25.24.
( 2 ) *Intermediate Bank and Savings Association Community Development Test.* ( i ) An intermediate bank's or savings association's community development performance is evaluated pursuant to the following criteria: ( A ) The number and dollar amount of community development loans;
( B ) The number and dollar amount of community development investments;
( C ) The extent to which the bank or savings association provides community development services; and
( D ) The bank's or savings association's responsiveness through such community development loans, community development investments, and community development services to community development needs. The appropriate Federal banking agency's evaluation of the responsiveness of the bank's or savings association's activities is informed by information provided by the bank or savings association, and may be informed by the impact and responsiveness review factors described in § 25.15(b).
( ii ) The appropriate Federal banking agency considers an intermediate bank's or savings association's community development loans, community development investments, and community development services without regard to whether the activity is made in one or more of the bank's or savings association's facility-based assessment areas. The extent of the appropriate Federal banking agency's consideration of community development loans, community development investments, and community development services outside of the bank's or savings association's facility-based assessment areas will depend on the adequacy of the bank's or savings association's responsiveness to community development needs and opportunities within the bank's or savings association's facility-based assessment areas and applicable performance context information.
( b ) *Additional consideration* — ( 1 ) *Intermediate banks or savings associations evaluated pursuant to theIntermediate Bank and Savings Association Community Development Test.* The appropriate Federal banking agency may adjust the rating of an intermediate bank or savings association evaluated as provided in paragraph (a)(2) of this section from “Satisfactory” to “Outstanding” at the institution level where the bank or savings association requests and receives additional consideration for activities that would qualify pursuant to the Retail Services and Products Test in § 25.23.
( 2 ) *Intermediate banks or savings associations evaluated pursuant to the Community Development Financing Test.* The appropriate Federal banking agency may adjust the rating of an intermediate bank or savings association that opts to be evaluated pursuant to the Community Development Financing Test in § 25.24 from “Satisfactory” to “Outstanding” at the institution level where the bank or savings association requests and receives additional consideration for activities that would qualify pursuant to the Retail Services and Products Test in § 25.23, the Community Development Services Test in § 25.25, or both.
( 3 ) *Additional consideration for low-cost education loans.* Notwithstanding paragraphs (b)(1) and (2) of this section, an intermediate bank or savings association may request and receive additional consideration at the institution level for providing low-cost education loans to low-income borrowers pursuant to 12 U.S.C. 2903(d), regardless of the intermediate bank's or savings association's overall institution rating.
( c ) *Intermediate bank or savings association performance conclusions and ratings* — ( 1 ) *Conclusions.* The appropriate Federal banking agency assigns a conclusion for the performance of an intermediate bank or savings association evaluated pursuant to this section as provided in appendices C and E to this part. In assigning conclusions for an intermediate bank or savings association, the appropriate Federal banking agency may consider performance context information as provided in § 25.21(d).
( 2 ) *Ratings.* The appropriate Federal banking agency rates the performance of an intermediate bank or savings association evaluated under this section as provided in appendix D to this part.
[89 FR 7165, Feb. 1, 2024, as amended at 89 FR 7167, Feb. 1, 2024]