Source: https://www.ots.treas.gov/topics/consumers-and-communities/cra/12-cfr-part-25.html
Timestamp: 2019-10-14 16:47:46
Document Index: 747916471

Matched Legal Cases: ['art 25', 'art 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', 'art 25', '§ 25', '§ 25', '§ 25', 'art 28', '§ 25', 'art 203', '§ 25', '§ 226', '§ 203', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', 'art 203', 'art 203', 'art 203', 'arts 228', 'art 203', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', 'art 25', 'art 25']

12 C.F.R. Part 25 - Community Reinvestment Act (CRA) and Interstate Deposit Production Regulations | OCC
12 C.F.R. Part 25 - Community Reinvestment Act (CRA) and Interstate Deposit Production Regulations
The Interstate Deposit Production Regulations were amended effective October 1, 2002
[Editor's Note: The OCC published a final rule for technical amendments to § 25.12 of Subpart A – General, § 25.27 of Subpart B- Standards for Assessing Performance, § 25.41 and 25.42 of Subpart C – Records, Reporting, and Disclosure Requirements on March 28, 2005, 70 FR 15570, effective March 28, 2005.]
[Editor's Note: The OCC published a final rule amending § 25.12 of Subpart A – General, §§ 25.26 and 25.28 of Subpart B – Standards for Assessing Performance, and Appendix A to Part 25 – Ratings on August 2, 2005, 70 FR 44256, effective September 1, 2005.]
Subpart A–GeneralShow
§ 25.11 Authority, purposes, and scope.
(a) Authority and OMB control number–(1) Authority. The authority for subparts A, B, C, D, and E is 12 U.S.C. 21, 22, 26, 27, 30, 36, 93a, 161, 215, 215a, 481, 1814, 1816, 1828(c), 1835a, 2901 through 2907, and 3101 through 3111.
(c) Scope–(1) General. This part applies to all banks except as provided in paragraphs (c)(2) and (c)(3) of this section.
§ 25.12 Definitions.
(a) Affiliate means any company that controls, is controlled by, or is under common control with another company. The term "control" has the meaning given to that term in 12 U.S.C. 1841(a)(2), and a company is under common control with another company if both companies are directly or indirectly controlled by the same company.
(c) Assessment area means a geographic area delineated in accordance with § 25.41.
(e) Bank means a national bank (including a Federal branch as defined in part 28 of this chapter) with Federally insured deposits, except as provided in § 25.11(c).
(4) (4) Activities that revitalize or stabilize—
(i) Has not been reported or collected by the bank or an affiliate for consideration in the bank's assessment as a home mortgage, small business, small farm, or consumer loan, unless it is a multifamily dwelling loan (as described in appendix A to part 203 of this title); and
(3) Has not been considered in the evaluation of the bank's retail banking services under § 25.24(d).
(2) Credit card loan, which is a line of credit for household, family, or other personal expenditures that is accessed by a borrower's use of a "credit card," as this term is defined in § 226.2 of this title;
(l) Home mortgage loan means a "home improvement loan," "home purchase loan," or "refinancing" as defined in § 203.2 of this title.
(u) Small bank—(1) Definition. Small bank means a bank that, as of December 31 of either of the prior two calendar years, had assets of less than $1 billion. Intermediate small bank means a small bank with assets of at least $250 million as of December 31 of both of the prior two calendar years and less than $1 billion as of December 31 of either of the prior two calendar years.
(v) Small business loan means a loan included in "loans to small businesses" as defined in the instructions for preparation of the Consolidated Report of Condition and Income.
(w) Small farm loan means a loan included in "loans to small farms" as defined in the instructions for preparation of the Consolidated Report of Condition and Income.
(x) Wholesale bank means a bank that is not in the business of extending home mortgage, small business, small farm, or consumer loans to retail customers, and for which a designation as a wholesale bank is in effect, in accordance with § 25.25(b).
[60 FR 22178, May 4, 1995, as amended at 60 FR 66050, Dec. 20, 1995; 61 FR 21363, May 10, 1996; 70 FR March 28, 2005; 70 FR 44256 August 2, 2005]
Subpart B–Standards for Assessing PerformanceShow
[Source for Subpart B: 60 FR 22180, May 4, 1995, unless otherwise noted.]
§ 25.21 Performance tests, standards, and ratings, in general.
(1) Lending, investment, and service tests. The OCC applies the lending, investment, and service tests, as provided in §§ 25.22 through 25.24, in evaluating the performance of a bank, except as provided in paragraphs (a)(2), (a)(3), and (a)(4) of this section.
(2) Community development test for wholesale or limited purpose banks. The OCC applies the community development test for a wholesale or limited purpose bank, as provided in § 25.25, except as provided in paragraph (a)(4) of this section.
(3) Small bank performance standards. The OCC applies the small bank performance standards as provided in § 25.26 in evaluating the performance of a small bank or a bank that was a small bank during the prior calendar year, unless the bank elects to be assessed as provided in paragraphs (a)(1), (a)(2), or (a)(4) of this section. The bank may elect to be assessed as provided in paragraph (a)(1) of this section only if it collects and reports the data required for other banks under § 25.42.
(4) Strategic plan. The OCC evaluates the performance of a bank under a strategic plan if the bank submits, and the OCC approves, a strategic plan as provided in § 25.27.
(6) The bank's public file, as described in § 25.43, and any written comments about the bank's CRA performance submitted to the bank or the OCC; and
(c) Assigned ratings. The OCC assigns to a bank one of the following four ratings pursuant to § 25.28 and appendix A of this part: "outstanding"; "satisfactory"; "needs to improve"; or "substantial noncompliance" as provided in 12 U.S.C. 2906(b)(2). The rating assigned by the OCC reflects the bank'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.
(a) Scope of test. (1) The lending test evaluates a bank's record of helping to meet the credit needs of its assessment area(s) through its lending activities by considering a bank's home mortgage, small business, small farm, and community development lending. If consumer lending constitutes a substantial majority of a bank's business, the OCC will evaluate the bank's consumer lending in one or more of the following categories: motor vehicle, credit card, home equity, other secured, and other unsecured loans. In addition, at a bank's option, the OCC will evaluate one or more categories of consumer lending, if the bank has collected and maintained, as required in § 25.42(c)(1), the data for each category that the bank elects to have the OCC evaluate.
(c) Affiliate lending. (1) At a bank's option, the OCC will consider loans by an affiliate of the bank, if the bank provides data on the affiliate's loans pursuant to § 25.42.
(1) Will be considered, at the bank's option, if the bank reports the data pertaining to these loans under § 25.42(b)(2); and
§ 25.23 Investment test.
§ 25.24 Service test.
(d) Performance criteria–retail banking services. The OCC evaluates the availability and effectiveness of a bank's systems for delivering retail banking services, pursuant to the following criteria:
(1) The current distribution of the bank's branches among low-, moderate-, middle-, and upper-income geographies;
(e) Performance criteria–community development services. The OCC evaluates community development services pursuant to the following criteria:
§ 25.25 Community development test for wholesale or limited purpose banks.
(e) Benefit to assessment area(s)–(1) Benefit inside assessment area(s). The OCC considers all qualified investments, community development loans, and community development services that benefit areas within the bank's assessment area(s) or a broader statewide or regional area that includes the bank's assessment area(s).
§ 25.26 Small bank performance standards.
(a) Performance criteria —
(1) Small banks with assets of less than $250 million. The OCC evaluates the record of a small bank that is not, or that was not during the prior calendar year, an intermediate small bank, of helping to meet the credit needs of its assessment area(s) pursuant to the criteria set forth in paragraph (b) of this section.
(1) The bank's loan-to-deposit ratio, adjusted for seasonal variation and, as appropriate, other lending-related activities, such as loan originations for sale to the secondary markets, community development loans, or qualified investments;
FR 70 44256 August 2, 2005
(b) Data reporting. The OCC's approval of a plan does not affect the bank's obligation, if any, to report data as required by § 25.42.
(c) Plans in general–(1) Term. A plan may have a term of no more than five years, and any multi-year plan must include annual interim measurable goals under which the OCC will evaluate the bank's performance.
(f) Plan content–(1) Measurable goals. (i) A bank shall specify in its plan measurable goals for helping to meet the credit needs of each assessment area covered by the plan, particularly the needs of low- and moderate-income geographies and low- and moderate-income individuals, through lending, investment, and services, as appropriate.
(3) Satisfactory and outstanding goals. A bank shall specify in its plan measurable goals that constitute "satisfactory" performance. A plan may specify measurable goals that constitute "outstanding" performance. If a bank submits, and the OCC approves, both "satisfactory" and "outstanding" performance goals, the OCC will consider the bank eligible for an "outstanding" performance rating.
(g) Plan approval–(1) Timing. The OCC will act upon a plan within 60 calendar days after the OCC receives the complete plan and other material required under paragraph (e) of this section. If the OCC fails to act within this time period, the plan shall be deemed approved unless the OCC extends the review period for good cause.
[60 FR 22180, May 4, 1995, as amended at 60 FR 66050, Dec. 20, 1995]
§ 25.28 Assigned ratings.
(a) Ratings in general. Subject to paragraphs (b) and (c) of this section, the OCC assigns to a bank a rating of "outstanding," "satisfactory," "needs to improve," or "substantial noncompliance" based on the bank's performance under the lending, investment and service tests, the community development test, the small bank performance standards, or an approved strategic plan, as applicable.
(1) A bank that receives an "outstanding" rating on the lending test receives an assigned rating of at least "satisfactory";
(2) A bank that receives an "outstanding" rating on both the service test and the investment test and a rating of at least "high satisfactory" on the lending test receives an assigned rating of "outstanding"; and
(3) No bank may receive an assigned rating of "satisfactory" or higher unless it receives a rating of at least "low satisfactory" on the lending test.
(1) The OCC's evaluation of a bank's CRA performance is adversely affected by evidence of discriminatory or other illegal credit practices in any geography by the bank or in any assessment area by any affiliate whose loans have been considered as part of the bank's lending performance. In connection with any type of lending activity described in § 25.22(a), evidence of discriminatory or other credit practices that violate an applicable law, rule, or regulation includes, but is not limited to:
(2) In determining the effect of evidence of practices described in paragraph (c)(1) of this section on the bank's assigned rating, the OCC considers the nature, extent, and strength of the evidence of the practices; the policies and procedures that the bank (or affiliate, as applicable) has in place to prevent the practices; any corrective action that the bank (or affiliate, as applicable) has taken or has committed to take, including voluntary corrective action resulting from self assessment; and any other relevant information.
§ 25.29 Effect of CRA performance on applications.
(3) Under the Bank Merger Act (12 U.S.C. 1828(c) [Note added by Pub. L. 105-18, sec. 50004, 111 Stat. 212]), the merger or consolidation with or the acquisition of assets or assumption of liabilities of an insured depository institution; and
(e) Insured depository institution. For purposes of this section, the term "insured depository institution" has the meaning given to that term in 12 U.S.C. 1813.
Subpart C–Records, Reporting, and Disclosure RequirementsShow
[Source for Subpart C: 60 FR 22184, May 4, 1995, unless otherwise noted.]
(3) Home mortgage loans. If the bank is subject to reporting under part 203 of this title, the location of each home mortgage loan application, origination, or purchase outside the MSAs in which the bank has a home or branch office (or outside any MSA) in accordance with the requirements of part 203 of this title.
(c) Optional data collection and maintenance–(1) Consumer loans. A bank may collect and maintain in machine readable form (as prescribed by the OCC) data for consumer loans originated or purchased by the bank for consideration under the lending test. A bank may maintain data for one or more of the following categories of consumer loans: motor vehicle, credit card, home equity, other secured, and other unsecured. If the bank maintains data for loans in a certain category, it shall maintain data for all loans originated or purchased within that category. The bank shall maintain data separately for each category, including for each loan:
(d) Data on affiliate lending. A bank that elects to have the OCC consider loans by an affiliate, for purposes of the lending or community development test or an approved strategic plan, shall collect, maintain, and report for those loans the data that the bank would have collected, maintained, and reported pursuant to paragraphs (a), (b), and (c) of this section had the loans been originated or purchased by the bank. For home mortgage loans, the bank shall also be prepared to identify the home mortgage loans reported under part 203 of this title by the affiliate.
(i) Aggregate disclosure statements. The OCC, in conjunction with the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of Thrift Supervision, prepares annually, for each MSA or metropolitan division (including an MSA or metropolitan division that crosses a state boundary) and the nonmetropolitan portion of each state, an aggregate disclosure statement of small business and small farm lending by all institutions subject to reporting under this part or parts 228, 345, or 563e of this title. These disclosure statements indicate, for each geography, the number and amount of all small business and small farm loans originated or purchased by reporting institutions, except that the OCC may adjust the form of the disclosure if necessary, because of special circumstances, to protect the privacy of a borrower or the competitive position of an institution.
(b) Additional information available to the public–(1) Banks other than small banks. A bank, except a small bank or a bank that was a small bank during the prior calendar year, shall include in its public file the following information pertaining to the bank and its affiliates, if applicable, for each of the prior two calendar years:
(2) Banks required to report Home Mortgage Disclosure Act (HMDA) data. A bank required to report home mortgage loan data pursuant part 203 of this title shall include in its public file a copy of the HMDA Disclosure Statement provided by the Federal Financial Institutions Examination Council pertaining to the bank for each of the prior two calendar years. In addition, a bank that elected to have the OCC consider the mortgage lending of an affiliate for any of these years shall include in its public file the affiliate's HMDA Disclosure Statement for those years. The bank shall place the statement(s) in the public file within three business days after its receipt.
Subpart D–ReservedShow
At 60 FR 22189, May 4, 1995, subpart D, Transition Rules, consisting of § 25.51, was removed, effective July 1, 1997.
Subpart E–Prohibition Against Use of Interstate Branches Primarily for Deposit ProductionShow
§ 25.61 Purpose and scope.
§ 25.62 Definitions.
(f) Host state loan-to-deposit ratio generally means, with respect to a particular host state, the ratio of total loans in the host state relative to total deposits from the host state for all banks (including institutions covered under the definition of "bank" in 12 U.S.C. 1813(a)(1)) that have that state as their home state, as determined and updated periodically by the appropriate Federal banking agencies and made available to the public.
[Editor's Note: Final rule, 67 FR 38844, 38847-38848, June 6, 2002, amended paragraphs (b), (d), and (e) of § 25.62, redesignated (g) and (h) as (h) and (i), and added a new(g), effective Oct. 1, 2002; and technical correction to paragraph (d) of § 25.62, 67 FR 46842, July 17, 2002, effective Oct. 1, 2002.]
§ 25.63 Loan-to-deposit ratio screen.
(2) If the OCC determines that the bank's statewide loan-to-deposit ratio is less than 50 percent of the host state loan-to-deposit ratio, or if reasonably available data are insufficient to calculate the bank's statewide loan-to-deposit ratio, the OCC will make a credit needs determination for the bank as provided in § 25.64.
[Editor's Note: Final rule, 67 FR 38844, 38848, June 6, 2002, amended § 25.63(a), effective Oct. 1, 2002.]
§ 25.64 Credit needs determination.
§ 25.65 Sanctions.
[Source for subpart E: 62 FR 47728 (September 10, 1997)]
Appendix A to Part 25 - RatingsShow
(a) Ratings in general.
In assigning a rating, the OCC evaluates a bank's performance under the applicable performance criteria in this part, in accordance with Sec. 25.21, and Sec. 25.28, which provides for adjustments on the basis of evidence of discriminatory or other illegal credit practices.
A bank's performance need not fit each aspect of a particular rating profile in order to receive that rating, and exceptionally strong performance with respect to some aspects may compensate for weak performance in others. The bank's overall performance, however, must be consistent with safe and sound banking practices and generally with the appropriate rating profile as follows.
(b) Banks evaluated under the lending, investment, and service tests.
ending performance rating. The OCC assigns each bank's lending performance one of the five following ratings. [[Page 22187]]
Outstanding. The OCC rates a bank's lending performance "outstanding" if, in general, it demonstrates:
Excellent responsiveness to credit needs in its assessment area(s), taking into account the number and amount of home mortgage, small business, small farm, and consumer loans, if applicable, in its assessment area(s);
A substantial majority of its loans are made in its assessment area(s);
An excellent geographic distribution of loans in its assessment area(s);
An excellent distribution, particularly in its assessment area(s), of loans among individuals of different income levels and businesses (including farms) of different sizes, given the product lines offered by the bank;
An excellent record of serving the credit needs of highly economically disadvantaged areas in its assessment area(s), low- income individuals, or businesses (including farms) with gross annual revenues of $1 million or less, consistent with safe and sound operations;
Extensive use of innovative or flexible lending practices in a safe and sound manner to address the credit needs of low- or moderate-income individuals or geographies; and
It is a leader in making community development loans.
High satisfactory. The OCC rates a bank's lending performance "high satisfactory" if, in general, it demonstrates:
Good responsiveness to credit needs in its assessment area(s), taking into account the number and amount of home mortgage, small business, small farm, and consumer loans, if applicable, in its assessment area(s);
A high percentage of its loans are made in its assessment area(s);
A good geographic distribution of loans in its assessment area(s);
A good distribution, particularly in its assessment area(s), of loans among individuals of different income levels and businesses (including farms) of different sizes, given the product lines offered by the bank;
A good record of serving the credit needs of highly economically disadvantaged areas in its assessment area(s), low- income individuals, or businesses (including farms) with gross annual revenues of $1 million or less, consistent with safe and sound operations;
Use of innovative or flexible lending practices in a safe and sound manner to address the credit needs of low- or moderate- income individuals or geographies; and
It has made a relatively high level of community development loans.
Low satisfactory. The OCC rates a bank's lending performance "low satisfactory" if, in general, it demonstrates:
Adequate responsiveness to credit needs in its assessment area(s), taking into account the number and amount of home mortgage, small business, small farm, and consumer loans, if applicable, in its assessment area(s);
An adequate percentage of its loans are made in its assessment area(s);
An adequate geographic distribution of loans in its assessment area(s);
An adequate distribution, particularly in its assessment area(s), of loans among individuals of different income levels and businesses (including farms) of different sizes, given the product lines offered by the bank;
An adequate record of serving the credit needs of highly economically disadvantaged areas in its assessment area(s), low- income individuals, or businesses (including farms) with gross annual revenues of $1 million or less, consistent with safe and sound operations;
Limited use of innovative or flexible lending practices in a safe and sound manner to address the credit needs of low- or moderate-income individuals or geographies; and
It has made an adequate level of community development loans.
Needs to improve. The OCC rates a bank's lending performance "needs to improve" if, in general, it demonstrates:
Poor responsiveness to credit needs in its assessment area(s), taking into account the number and amount of home mortgage, small business, small farm, and consumer loans, if applicable, in its assessment area(s);
A small percentage of its loans are made in its assessment area(s);
A poor geographic distribution of loans, particularly to low- or moderate-income geographies, in its assessment area(s);
A poor distribution, particularly in its assessment area(s), of loans among individuals of different income levels and businesses (including farms) of different sizes, given the product lines offered by the bank;
A poor record of serving the credit needs of highly economically disadvantaged areas in its assessment area(s), low- income individuals, or businesses (including farms) with gross annual revenues of $1 million or less, consistent with safe and sound operations;
Little use of innovative or flexible lending practices in a safe and sound manner to address the credit needs of low- or moderate-income individuals or geographies; and
It has made a low level of community development loans.
Substantial noncompliance. The OCC rates a bank's lending performance as being in "substantial noncompliance" if, in general, it demonstrates:
A very poor responsiveness to credit needs in its assessment area(s), taking into account the number and amount of home mortgage, small business, small farm, and consumer loans, if applicable, in its assessment area(s);
A very small percentage of its loans are made in its assessment area(s);
A very poor geographic distribution of loans, particularly to low- or moderate-income geographies, in its assessment area(s);
A very poor distribution, particularly in its assessment area(s), of loans among individuals of different income levels and businesses (including farms) of different sizes, given the product lines offered by the bank;
A very poor record of serving the credit needs of highly economically disadvantaged areas in its assessment area(s), low- income individuals, or businesses (including farms) with gross annual revenues of $1 million or less, consistent with safe and sound operations;
No use of innovative or flexible lending practices in a safe and sound manner to address the credit needs of low- or moderate- income individuals or geographies; and
It has made few, if any, community development loans.
Investment performance rating. The OCC assigns each bank's investment performance one of the five following ratings.
Outstanding. The OCC rates a bank's investment performance "outstanding" if, in general, it demonstrates:
An excellent level of qualified investments, particularly those that are not routinely provided by private investors, often in a leadership position;
Extensive use of innovative or complex qualified investments; and
Excellent responsiveness to credit and community development needs.
High satisfactory. The OCC rates a bank's investment performance "high satisfactory" if, in general, it demonstrates:
A significant level of qualified investments, particularly those that are not routinely provided by private investors, occasionally in a leadership position;
Significant use of innovative or complex qualified investments; and
Good responsiveness to credit and community development needs.
Low satisfactory. The OCC rates a bank's investment performance "low satisfactory" if, in general, it demonstrates:
An adequate level of qualified investments, particularly those that are not routinely provided by private investors, although rarely in a leadership position;
Occasional use of innovative or complex qualified investments; and
Adequate responsiveness to credit and community development needs.
Needs to improve. The OCC rates a bank's investment performance "needs to improve" if, in general, it demonstrates:
A poor level of qualified investments, particularly those that are not routinely provided by private investors;
Rare use of innovative or complex qualified investments; and
Poor responsiveness to credit and community development needs.
Substantial noncompliance. The OCC rates a bank's investment performance as being in "substantial noncompliance" if, in general, it demonstrates:
Few, if any, qualified investments, particularly those that are not routinely provided by private investors;
No use of innovative or complex qualified investments; and
Very poor responsiveness to credit and community development needs.
Service performance rating. The OCC assigns each bank's service performance one of the five following ratings.
Outstanding. The OCC rates a bank's service performance "outstanding" if, in general, the bank demonstrates:
Its service delivery systems are readily accessible to geographies and individuals of [[Page 22188]] different income levels in its assessment area(s);
To the extent changes have been made, its record of opening and closing branches has improved the accessibility of its delivery systems, particularly in low- or moderate-income geographies or to low- or moderate-income individuals;
Its services (including, where appropriate, business hours) are tailored to the convenience and needs of its assessment area(s), particularly low- or moderate-income geographies or low- or moderate-income individuals; and
It is a leader in providing community development services.
High satisfactory. The OCC rates a bank's service performance "high satisfactory" if, in general, the bank demonstrates:
Its service delivery systems are accessible to geographies and individuals of different income levels in its assessment area(s);
To the extent changes have been made, its record of opening and closing branches has not adversely affected the accessibility of its delivery systems, particularly in low- and moderate-income geographies and to low- and moderate-income individuals;
Its services (including, where appropriate, business hours) do not vary in a way that inconveniences its assessment area(s), particularly low- and moderate-income geographies and low- and moderate-income individuals; and
It provides a relatively high level of community development services.
Low satisfactory. The OCC rates a bank's service performance "low satisfactory" if, in general, the bank demonstrates:
Its service delivery systems are reasonably accessible to geographies and individuals of different income levels in its assessment area(s);
To the extent changes have been made, its record of opening and closing branches has generally not adversely affected the accessibility of its delivery systems, particularly in low- and moderate-income geographies and to low- and moderate-income individuals;
It provides an adequate level of community development services.
Needs to improve. The OCC rates a bank's service performance "needs to improve" if, in general, the bank demonstrates:
Its service delivery systems are unreasonably inaccessible to portions of its assessment area(s), particularly to low- or moderate-income geographies or to low- or moderate-income individuals;
To the extent changes have been made, its record of opening and closing branches has adversely affected the accessibility its delivery systems, particularly in low- or moderate-income geographies or to low- or moderate-income individuals;
Its services (including, where appropriate, business hours) vary in a way that inconveniences its assessment area(s), particularly low- or moderate-income geographies or low- or moderate-income individuals; and
It provides a limited level of community development services.
Substantial noncompliance. The OCC rates a bank's service performance as being in "substantial noncompliance" if, in general, the bank demonstrates:
Its service delivery systems are unreasonably inaccessible to significant portions of its assessment area(s), particularly to low- or moderate-income geographies or to low- or moderate-income individuals;
To the extent changes have been made, its record of opening and closing branches has significantly adversely affected the accessibility of its delivery systems, particularly in low- or moderate-income geographies or to low- or moderate-income individuals;
Its services (including, where appropriate, business hours) vary in a way that significantly inconveniences its assessment area(s), particularly low- or moderate-income geographies or low- or moderate-income individuals; and
It provides few, if any, community development services.
Outstanding. The OCC rates a wholesale or limited purpose bank's community development performance "outstanding" if, in general, it demonstrates:
A high level of community development loans, community development services, or qualified investments, particularly investments that are not routinely provided by private investors;
Extensive use of innovative or complex qualified investments, community development loans, or community development services; and
Excellent responsiveness to credit and community development needs in its assessment area(s).
Satisfactory. The OCC rates a wholesale or limited purpose bank's community development performance "satisfactory" if, in general, it demonstrates:
An adequate level of community development loans, community development services, or qualified investments, particularly investments that are not routinely provided by private investors;
Occasional use of innovative or complex qualified investments, community development loans, or community development services; and
Adequate responsiveness to credit and community development needs in its assessment area(s).
Needs to improve. The OCC rates a wholesale or limited purpose bank's community development performance as "needs to improve" if, in general, it demonstrates:
A poor level of community development loans, community development services, or qualified investments, particularly investments that are not routinely provided by private investors;
Rare use of innovative or complex qualified investments, community development loans, or community development services; and
Poor responsiveness to credit and community development needs in its assessment area(s).
Substantial noncompliance. The OCC rates a wholesale or limited purpose bank's community development performance in "substantial noncompliance" if, in general, it demonstrates:
Few, if any, community development loans, community development services, or qualified investments, particularly investments that are not routinely provided by private investors;
No use of innovative or complex qualified investments, community development loans, or community development services; and
Very poor responsiveness to credit and community development needs in its assessment area(s).
(d) Banks evaluated under the small bank performance standards. The OCC rates the performance of each bank evaluated under the small bank performance standards as follows:
Eligibility for a satisfactory rating. The OCC rates a bank's performance "satisfactory" if, in general, the bank demonstrates:
A reasonable loan-to-deposit ratio (considering seasonal variations) given the bank's size, financial condition, the credit needs of its assessment area(s), and taking into account, as appropriate, lending-related activities such as loan originations for sale to the secondary markets and community development loans and qualified investments;
A majority of its loans and, as appropriate, other lending- related activities are in its assessment area(s);
A distribution of loans to and, as appropriate, other lending related-activities for individuals of different income levels (including low- and moderate-income individuals) and businesses and farms of different sizes that is reasonable given the demographics of the bank's assessment area(s);
A record of taking appropriate action, as warranted, in response to written complaints, if any, about the bank's performance in helping to meet the credit needs of its assessment area(s); and
A reasonable geographic distribution of loans given the bank's assessment area(s).
Eligibility for an outstanding rating. A bank that meets each of the standards for a "satisfactory" rating under this paragraph and exceeds some or all of those standards may warrant consideration for an overall rating of "outstanding." In assessing whether a bank's performance is "outstanding," the OCC considers the extent to which the bank exceeds each of the performance standards for a "satisfactory" rating and its performance in making qualified investments and its performance in providing branches and other services and delivery systems that [[Page 22189]] enhance credit availability in its assessment area(s).
Needs to improve or substantial noncompliance ratings. A bank also may receive a rating of "needs to improve" or "substantial noncompliance" depending on the degree to which its performance has failed to meet the standards for a "satisfactory" rating.
(e) Strategic plan assessment and rating--
Satisfactory goals. The OCC approves as "satisfactory" measurable goals that adequately help to meet the credit needs of the bank's assessment area(s).
Outstanding goals. If the plan identifies a separate group of measurable goals that substantially exceed the levels approved as "satisfactory," the OCC will approve those goals as "outstanding."
Rating. The OCC assesses the performance of a bank operating under an approved plan to determine if the bank has met its plan goals:
If the bank substantially achieves its plan goals for a satisfactory rating, the OCC will rate the bank's performance under the plan as "satisfactory."
If the bank exceeds its plan goals for a satisfactory rating and substantially achieves its plan goals for an outstanding rating, the OCC will rate the bank's performance under the plan as "outstanding."
If the bank fails to meet substantially its plan goals for a satisfactory rating, the OCC will rate the bank as either "needs to improve" or "substantial noncompliance," depending on the extent to which it falls short of its plan goals, unless the bank elected in its plan to be rated otherwise, as provided in Sec. 25.27(f)(4).
Appendix B to Part 25 - CRA NoticeShow
You may ask to look at any comments received by the Deputy Comptroller. You may also request from the Deputy Comptroller an announcement of our applications covered by the CRA filed with the Comptroller. We are an affiliate of (name of holding company), a bank holding company. You may request from the (title of responsible official), Federal Reserve Bank of __________ (address) an announcement of applications covered by the CRA filed by bank holding companies.