§ 25.28 Assigned conclusions and ratings. ( a ) *Conclusions* — ( 1 ) *State, multistate MSA, and institution test conclusions and performance scores* — ( i ) *In general.* For each of the applicable performance tests pursuant to §§ 25.22 through 25.26 and 25.30, the appropriate Federal banking agency assigns conclusions and associated test performance scores of “Outstanding,” “High Satisfactory,” “Low Satisfactory,” “Needs to Improve,” or “Substantial Noncompliance” for the performance of a bank or savings association in each State and multistate MSA, as applicable pursuant to paragraph (c) of this section, and for the institution.
( ii ) *Small banks or savings associations.* The appropriate Federal banking agency assigns conclusions of “Outstanding,” “Satisfactory,” “Needs to Improve,” or “Substantial Noncompliance” for the performance of a small bank or savings association evaluated under the Small Bank and Savings Association Lending Test in § 25.29(a)(2) in each State and multistate MSA, as applicable pursuant to paragraph (c) of this section, and for the institution pursuant to § 25.29 and appendix E to this part.
( iii ) *Banks and savings associations operating under a strategic plan.* The appropriate Federal banking agency assigns conclusions for the performance of a bank or savings association operating under a strategic plan pursuant to § 25.27 in each State and multistate MSA, as applicable pursuant to paragraph (c) of this section, and for the institution in accordance with the methodology of the plan and appendix C to this part.
( 2 ) *Bank and savings association performance in metropolitan and nonmetropolitan areas.* Pursuant to 12 U.S.C. 2906, the appropriate Federal banking agency provides conclusions derived under this part separately for metropolitan areas in which a bank or savings association maintains one or more domestic branch offices and for the nonmetropolitan area of a State if a bank or savings association maintains one or more domestic branch offices in such nonmetropolitan area.
( b ) *Ratings* — ( 1 ) *In general.* The appropriate Federal banking agency assigns a rating for a bank's or savings association's overall CRA performance of “Outstanding,” “Satisfactory,” “Needs to Improve,” or “Substantial Noncompliance” in each State and multistate MSA, as applicable pursuant to paragraph (c) of this section, and for the institution, as provided in this section and appendices D and E to this part. The ratings assigned by the appropriate Federal banking agency reflect the bank's or savings association's record of helping to meet the credit needs of its entire community, including low- and moderate-income neighborhoods, consistent with the safe and sound operation of the bank or savings association.
( 2 ) *State, multistate MSA, and institution ratings and overall performance scores.* ( i ) For large banks or savings associations, intermediate banks or savings associations, small banks or savings associations that opt into the Retail Lending Test in § 25.22, and limited purpose banks or savings associations, the appropriate Federal banking agency calculates and discloses the bank's or savings association's overall performance score for each State and multistate MSA, as applicable, and for the institution. The appropriate Federal banking agency uses a bank's or savings association's overall performance scores described in this section to assign a rating for the bank's or savings association's overall performance in each State and multistate MSA, as applicable, and for the institution, subject to paragraphs (d) and (e) of this section.
( ii ) Overall performance scores are based on the bank's or savings association's performance score for each applicable performance test and derived as provided in paragraph (b)(3) of this section, as applicable, and appendix D to this part.
( 3 ) *Weighting of performance scores.* In calculating a large bank's or savings association's or intermediate bank's or savings association's overall performance score for each State and multistate MSA, as applicable, and the institution, the appropriate Federal banking agency weights the performance scores for the bank or savings association for each applicable performance test as provided in paragraphs (b)(3)(i) and (ii) of this section. ( i ) *Large bank or savings association performance test weights.* The appropriate Federal banking agency weights the bank's or savings association's performance score for the performance tests applicable to a large bank or savings association as follows: ( A ) Retail Lending Test, 40 percent;
( B ) Retail Services and Products Test, 10 percent;
( C ) Community Development Financing Test, 40 percent; and
( D ) Community Development Services Test, 10 percent.
( ii ) *Intermediate bank or savings association performance test weights.* The appropriate Federal banking agency weights the bank's or savings association's performance score for the performance tests applicable to an intermediate bank or savings association as follows: ( A ) Retail Lending Test, 50 percent; and
( B ) Intermediate Bank and Savings Association Community Development Test or Community Development Financing Test, as applicable, 50 percent.
( 4 ) *Minimum conclusion requirements* — ( i ) *Retail Lending Test minimum conclusion.* An intermediate bank or savings association or a large bank or savings association must receive at least a “Low Satisfactory” Retail Lending Test conclusion for the State, multistate MSA, or institution to receive, respectively, a State, multistate MSA, or institution rating of “Satisfactory” or “Outstanding.”
( ii ) *Minimum of “Low Satisfactory” overall facility-based assessment area and retail lending assessment area conclusion.* ( A ) For purposes of this paragraph (b)(4)(ii)(A), the appropriate Federal banking agency assigns a large bank or savings association an overall conclusion for each facility-based assessment area and, as applicable, each retail lending assessment area, as provided in paragraph g.2.ii of appendix D to this part.
( B ) Except as provided in § 25.51(e), a large bank or savings association with a combined total of 10 or more facility-based assessment areas and retail lending assessment areas in any State or multistate MSA, as applicable, or for the institution may not receive a rating of “Satisfactory” or “Outstanding” in that State or multistate MSA, as applicable, or for the institution, unless the bank or savings association receives an overall conclusion of at least “Low Satisfactory” in 60 percent or more of the total number of its facility-based assessment areas and retail lending assessment areas in that State or multistate MSA, as applicable, or for the institution.
( c ) *Conclusions and ratings for States and multistate MSAs* — ( 1 ) *States* — ( i ) *In general.* Except as provided in paragraph (c)(1)(ii) of this section, the appropriate Federal banking agency evaluates a bank or savings association and assigns conclusions and ratings for any State in which the bank or savings association maintains a main office, branch, or deposit-taking remote service facility.
( ii ) *States with rated multistate MSAs.* The appropriate Federal banking agency evaluates a bank or savings association and assigns conclusions and ratings for a State only if the bank or savings association maintains a main office, branch, or deposit-taking remote service facility outside the portion of the State comprising any multistate MSA identified in paragraph (c)(2) of this section. In evaluating a bank or savings association and assigning conclusions and ratings for a State, the appropriate Federal banking agency does not consider activities to be in the State if those activities take place in the portion of the State comprising any multistate MSA identified in paragraph (c)(2) of this section.
( iii ) *States with non-rated multistate MSAs.* If a facility-based assessment area of a bank or savings association comprises a geographic area spanning two or more States within a multistate MSA that is not identified in paragraph (c)(2) of this section, the appropriate Federal banking agency considers activities in the entire facility-based assessment area to be in the State in which the bank or savings association maintains, within the multistate MSA, a main office, branch, or deposit-taking remote service facility. In evaluating a bank or savings association and assigning conclusions and ratings for a State, the appropriate Federal banking agency does not consider activities to be in the State if those activities take place in any facility-based assessment area that is considered to be in another State pursuant to this paragraph (c)(1)(iii).
( iv ) *States with multistate retail lending assessment areas.* In assigning Retail Lending Test conclusions for a State pursuant to § 25.22(h), the appropriate Federal banking agency does not consider a bank's or savings association's activities to be in the State if those activities take place in a retail lending assessment area consisting of counties in more than one State.
( 2 ) *Rated multistate MSAs.* The appropriate Federal banking agency evaluates a bank or savings association and assigns conclusions and ratings under this part in any multistate MSA in which the bank or savings association maintains a main office, a branch, or a deposit-taking remote service facility in two or more States within that multistate MSA.
( d ) *Effect of evidence of discriminatory or other illegal credit practices* — ( 1 ) *Scope.* For each State and multistate MSA, as applicable, and the institution, the appropriate Federal banking agency's evaluation of a bank's or savings association's performance under this part is adversely affected by evidence of discriminatory or other illegal credit practices, as provided in paragraph (d)(2) of this section. The appropriate Federal banking agency considers evidence of discriminatory or other illegal credit practices described in this section by: ( i ) The bank or savings association, including by an operating subsidiary of the bank or savings association; or
( ii ) Any other affiliate related to any activities considered in the evaluation of the bank or savings association.
( 2 ) *Discriminatory or other illegal credit practices.* For purposes of paragraph (d)(1) of this section, discriminatory or other illegal credit practices consist of the following: ( i ) Discrimination on a prohibited basis, including in violation of the Equal Credit Opportunity Act (15 U.S.C. 1691 *et seq.*) or the Fair Housing Act (42 U.S.C. 3601 *et seq.*);
( ii ) Violations of the Home Ownership and Equity Protection Act (15 U.S.C. 1639);
( iii ) Violations of section 5 of the Federal Trade Commission Act (15 U.S.C. 45);
( iv ) Violations of section 1031 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (12 U.S.C. 5531, 5536);
( v ) Violations of section 8 of the Real Estate Settlement Procedures Act (12 U.S.C. 2601 *et seq.*);
( vi ) Violations of the Truth in Lending Act (15 U.S.C. 1601 *et seq.*);
( vii ) Violations of the Military Lending Act (10 U.S.C. 987);
( viii ) Violations of the Servicemembers Civil Relief Act (50 U.S.C. 3901 *et seq.*); and
( ix ) Any other violation of a law, rule, or regulation consistent with the types of violations in paragraphs (d)(2)(i) through (viii) of this section, as determined by the appropriate Federal banking agency.
( 3 ) *Agency considerations.* In determining the effect of evidence of discriminatory or other illegal credit practices described in paragraph (d)(1) of this section on the bank's or savings association's assigned State, multistate MSA, and institution ratings, the appropriate Federal banking agency will consider: ( i ) The root cause or causes of any such violations of law, rule, or regulation;
( ii ) The severity of any harm to any communities, individuals, small businesses, and small farms resulting from such violations;
( iii ) The duration of time over which the violations occurred;
( iv ) The pervasiveness of the violations;
( v ) The degree to which the bank or savings association, operating subsidiary, or affiliate, as applicable, has established an effective compliance management system across the institution to self-identify risks and to take the necessary actions to reduce the risk of noncompliance and harm to communities, individuals, small businesses, and small farms; and
( vi ) Any other relevant information.
( e ) *Consideration of past performance.* When assigning ratings, the appropriate Federal banking agency considers a bank's or savings association's past performance. If a bank's or savings association's prior rating was “Needs to Improve,” the appropriate Federal banking agency may determine that a “Substantial Noncompliance” rating is appropriate where the bank or savings association failed to improve its performance since the previous evaluation period, with no acceptable basis for such failure.