Community Reinvestment Act - Intermediate Small Bank PDF

XI. Community Reinvestment Act — Intermediate Small Bank Community Development Test Ratings Matrix— Intermediate Small Institutions Outstanding Satisfactory Needs to Improve Substantial Noncompliance The institution’s community development performance demonstrates excellent responsiveness to co...

XI. Community Reinvestment Act — Intermediate Small Bank Community Development Test Ratings Matrix— Intermediate Small Institutions Outstanding Satisfactory Needs to Improve Substantial Noncompliance The institution’s community development performance demonstrates excellent responsiveness to community development needs in its assessment area(s) through community development loans, qualified investments, and community development services, as appropriate, considering the institution’s capacity and the need and availability of such opportunities for community development in the institution’s assessment area(s) The institution’s community development performance demonstrates adequate responsiveness to community development needs in its assessment area(s) through community development loans, qualified investments, and community development services, as appropriate, considering the institution’s capacity and the need and availability of such opportunities for community development in the institution’s assessment area(s). The institution’s community development performance demonstrates poor responsiveness to community development needs in its assessment area(s) through community development loans, qualified investments, and community development services, as appropriate, considering the institution’s capacity and the need and availability of such opportunities for community development in the institution’s assessment area(s). The institution’s community development performance demonstrates very poor responsiveness to community development needs in its assessment area(s) through community development loans, qualified investments, and community development services, as appropriate, considering the institution’s capacity and the need and availability of such opportunities for community development in the institution’s assessment area(s). FDIC Consumer Compliance Examination Manual — September 2015 XI–3.7 XI. Community Reinvestment Act — Intermediate Small Bank state in which the institution has at least one branch and for each multi-state MSA in which the institution has branches in two or more states in accordance with step #6 below. To determine the relative significance of each MSA and the non-MSA area on the institution’s preliminary state rating, consider: Overall Intermediate Small Institution CRA Rating 1. 2. Group the analyses of the assessment areas examined by MSA and non-MSA areas within each state where the institution has branches. If an institution has branches in two or more states of a multi-state MSA, group the assessment areas that are in that MSA. 5 Summarize conclusions about the institution’s performance in each MSA and the non-MSA portion of each state in which an assessment area received a full scope review. If two or more assessment areas in an MSA or in the non-MSA portion of a state received full scope reviews, weigh the different assessment areas considering such factors as: a. The significance of the institution’s activities in each compared to the institution’s overall activities; b. The retail lending and community development opportunities in each; c. a. b. The retail lending and community development opportunities in each; c. 6. The importance of the institution in providing loans and community development activities to each, particularly in light of the number of other institutions and the extent of their activities in each; and 4. For assessment areas in MSAs and non-MSA areas that were not examined using these procedures, consider facts and data related to the institution’s lending and community development activities to ensure that performance in those assessment areas is not inconsistent with the conclusions based on the assessment areas which received full scope reviews. For institutions operating in only one multi-state MSA or one state, assign one of the four preliminary ratings – “Satisfactory,” “Outstanding,” “Needs to Improve,” or “Substantial Noncompliance”—in accordance with step 6 below. To determine the relative significance of each MSA and non-MSA area to the institution’s preliminary rating, consider: a. d. Demographic and economic conditions in each. 5. For other institutions, assign one of the four preliminary ratings—“Satisfactory,” “Outstanding,” “Needs to Improve,” or “Substantial Noncompliance”—for each 5 The reference to MSA may also reference MD. XI–3.8 “Satisfactory” if the institution’s performance is rated as “Satisfactory” in each test. b. “Needs to Improve” or “Substantial Noncompliance,” depending upon the degree to which the institution’s performance has failed to meet the standards for a “Satisfactory” rating on a test; or c. 7. “Outstanding” if the institution is rated an ”Outstanding” on both tests; or “Outstanding” on one test and the extent to which the institution meets or exceeds the “Satisfactory” criteria on the other test. For an institution with branches in more than one state or multi-state MSA, assign a preliminary rating to the institution as a whole taking into account the institution’s record in different states or multi-state MSAs by considering: a. The significance of the institution’s activities in each compared to the institution’s overall activities; b. The retail lending and community development opportunities in each; The significance of the institution’s activities in each compared to the institution’s overall activities The importance of the institution to each, particularly in light of the number of other institutions and the extent of their activities in each; and Consult the intermediate small institution ratings matrices (lending and community development) and information in work papers to assign a preliminary rating of: a. c. b. The retail lending and community development opportunities in each; c. The importance of the institution in each, particularly in light of the number of other institutions and the extent of their activities in each; and d. Demographic and economic conditions in each. d. Demographic and economic conditions in each. 3. The significance of the institution’s activities in each compared to the institution’s overall activities; The importance of the institution in providing loans to each, particularly in light of the number of other institutions and the extent of their activities in each; and d. Demographic and economic conditions in each. 8. Review the results of the most recent compliance examination and determine whether evidence of discriminatory or other illegal credit practices should lower the institution’s overall CRA rating or, if applicable, its CRA rating in any state or multi-state MSA. If evidence of discrimination or other illegal credit practices in any geography by the institution, or in any assessment area by any affiliate whose loans were FDIC Consumer Compliance Examination Manual — September 2015 XI. Community Reinvestment Act — Intermediate Small Bank considered as part of the institution’s lending performance, was found, consider: a. The nature, extent, and strength of the evidence of the practices; a. b. The policies and procedures that the institution (or affiliate, as applicable) has in place to prevent the practices; c. Any corrective action that the institution (or affiliate, as applicable) has taken, or has committed to take, including voluntary corrective action resulting from self-assessment; and d. Any other relevant information. 9. Assign a final rating for the institution as a whole and, if applicable, each state in which the institution has at least one branch and each multi-state MSA in which it has branches in two or more states, considering: a. The institution’s preliminary rating; and b. The institution’s most recent CRA Performance Evaluation; c. A map of each assessment area showing its boundaries and, on the map or in a separate list, the geographies contained within the assessment area; d. A list of the institution’s branches, branches opened and closed during the current and each of the prior two calendar years, their street addresses and geographies; e. b. Any evidence of discriminatory or other illegal credit practices. 10. Discuss conclusions with management. 11. Write an evaluation of the institution’s performance for the examination report and the public evaluation. 12. Prepare recommendations for a supervisory strategy and for matters that require attention or follow-up activities. Public File Checklist 1. There is no need to review each branch or each complete public file during every examination. In determining the extent to which the institution’s public files should be reviewed, consider the institution’s record of compliance with the public file requirements in previous examinations, its branching structure and changes to it since its last examination, complaints about the institution’s compliance with the public file requirements, and any other relevant information. 2. In any review of the public file undertaken, determine whether branches display an accurate public notice in their lobbies, a complete public file is available in the institution’s main office and at least one branch in each state, and the public file(s) in the main office and in each state contain: FDIC Consumer Compliance Examination Manual — September 2015 All written comments from the public relating to the institution’s CRA performance and any responses to them for the current and preceding two calendar years (except those that reflect adversely on the good name or reputation of any persons other than the institution); A list of services (loan and deposit products and transaction fees generally offered, and hours of operation at the institution’s branches), including a description of any material differences in the availability or cost of services between those locations; f. The institution’s loan-to-deposit ratio for each quarter of the prior calendar year; g. A quarterly report of the institution’s efforts to improve its record if it received a less than satisfactory rating during its most recent CRA examination; and h. HMDA Disclosure Statements for the prior two calendar years for the institution and for each non- depository affiliate the institution has elected to include in assessment of its CRA record, if applicable. 3. In any branch review undertaken, determine whether the branch provides the most recent public evaluation and a list of services generally available at its branches and a description of any material differences in the availability or cost of services at the branch (or a list of services available at the branch). Public Notice Determine that the appropriate CRA public notice is displayed as required by § 345.44 and Appendix B. XI–3.9