12 CFR Part 345 — Community Reinvestment

PART 345—COMMUNITY REINVESTMENT Authority: 12 U.S.C. 1814-1817, 1819-1820, 1828, 1831u, 2901-2908, 3103-3104, and 3108(a). Source: 89 FR 7205, Feb. 1, 2024, unless otherwise noted. Subpart A—General § 345.11 Authority, purposes, and scope. (a) Authority. (b) Purposes. et seq. (1) Establishes the framework and criteria by which the FDIC assesses a bank's record of responding to the credit needs of its entire community, including low- and moderate-income neighborhoods, consistent with the safe and sound operation of the bank; and (2) Provides that the FDIC takes that record into account in considering certain applications. (c) Scope General. (2) Insured State branches. (3) Certain special purpose banks. § 345.12 Definitions. Link to an amendment published at 89 FR 7206, Feb. 1, 2024. For purposes of this part, the following definitions apply: Affiliate Affordable housing Area median income (1) The median family income for the MSA (as defined in this section), if an individual, family, household, or census tract is located in an MSA that has not been subdivided into metropolitan divisions, or for the metropolitan division, if an individual, family, household, or census tract is located in an MSA that has been subdivided into metropolitan divisions; or (2) The statewide nonmetropolitan median family income, if an individual, family, household, or census tract is located in a nonmetropolitan area. Assets Bank Branch Census tract Closed-end home mortgage loan Combination of loan dollars and loan count (1) The ratio calculated using loans measured in dollar volume; and (2) The ratio calculated using loans measured in number of loans. Community development Community Development Financial Institution (CDFI) means an entity that satisfies the definition in section 103(5)(A) of the Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 4702(5)) and is certified by the U.S. Department of the Treasury's Community Development Financial Institutions Fund as meeting the requirements set forth in 12 CFR 1805.201(b). Community development investment Community development loan Community development services (1) Support community development, as described in § 345.13; and (2) Are related to the provision of financial services, which include credit, deposit, and other personal and business financial services, or services that reflect a board member's or an employee's expertise at the bank or affiliate, such as human resources, information technology, and legal services. Consumer loan (1) Automobile loan, (2) Credit card loan, (3) Other revolving credit plan, (4) Other consumer loan, County Deposit location (1) For banks that collect, maintain, and report deposits data as provided in § 345.42, the address on file with the bank for purposes of the Customer Identification Program required by 31 CFR 1020.220 or another documented address at which the depositor resides or is located. (2) For banks that do not collect, maintain, and report deposits data as provided in § 345.42, the county of the bank facility to which the deposits are assigned in the FDIC's Summary of Deposits. Depository institution Deposits (1) For banks that collect, maintain, and report deposits data as provided in § 345.42, deposits (2) For banks that do not collect, maintain, and report deposits data as provided in § 345.42, deposits Digital delivery system Distressed or underserved nonmetropolitan middle-income census tract (1) A nonmetropolitan middle-income census tract is designated as distressed if it is in a county that meets one or more of the following criteria: (i) An unemployment rate of at least 1.5 times the national average; (ii) A poverty rate of 20 percent or more; or (iii) A population loss of 10 percent or more between the previous and most recent decennial census or a net population loss of five percent or more over the five-year period preceding the most recent census. (2) A nonmetropolitan middle-income census tract is designated as underserved if it meets the criteria for population size, density, and dispersion that indicate the area's population is sufficiently small, thin, and distant from a population center that the census tract is likely to have difficulty financing the fixed costs of meeting essential community needs. The criteria for these designations are based on the Urban Influence Codes established by the U.S. Department of Agriculture's Economic Research Service numbered “7,” “10,” “11,” or “12.” Evaluation period Facility-based assessment area High Opportunity Area Home mortgage loan Income level includes: (1) Low-income, (i) For individuals, families, or households, income that is less than 50 percent of the area median income; or (ii) For a census tract, a median family income that is less than 50 percent of the area median income. (2) Moderate-income, (i) For individuals, families, or households, income that is at least 50 percent and less than 80 percent of the area median income; or (ii) For a census tract, a median family income that is at least 50 percent and less than 80 percent of the area median income. (3) Middle-income, (i) For individuals, families, or households, income that is at least 80 percent and less than 120 percent of the area median income; or (ii) For a census tract, a median family income that is at least 80 percent and less than 120 percent of the area median income. (4) Upper-income, (i) For individuals, families, or households, income that is 120 percent or more of the area median income; or (ii) For a census tract, a median family income that is 120 percent or more of the area median income. Intermediate bank Large bank Large depository institution Limited purpose bank Loan location. (1) A consumer loan is located in the census tract where the borrower resides at the time that the borrower submits the loan application; (2) A home mortgage loan or a multifamily loan is located in the census tract where the property securing the loan is located; and (3) A small business loan or small farm loan is located in the census tract where the main business facility or farm is located or where the borrower will otherwise apply the loan proceeds, as indicated by the borrower. Low-cost education loan Low-income credit union (LICU Low-Income Housing Tax Credit (LIHTC) Major product line Majority automobile lender Metropolitan area Metropolitan division Military bank Minority depository institution (MDI) means: (1) For purposes of activities conducted pursuant to 12 U.S.C. 2907(a), “minority depository institution” as defined in 12 U.S.C. 2907(b)(1); and (2) For all other purposes: (i) “Minority depository institution” as defined in 12 U.S.C. 2907(b)(1); (ii) “Minority depository institution” as defined in section 308 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) (12 U.S.C. 1463 note); or (iii) A depository institution considered to be a minority depository institution by the appropriate Federal banking agency. For purposes of this paragraph (2)(iii), “appropriate Federal banking agency” has the meaning given to it in 12 U.S.C. 1813(q). Mission-driven nonprofit organization MSA Multifamily loan Multistate MSA Nationwide area Native Land Area means: (1) All land within the limits of any Indian reservation under the jurisdiction of the United States, as described in 18 U.S.C. 1151(a); (2) All dependent Indian communities within the borders of the United States whether within the original or subsequently acquired territory thereof, and whether within or without the limits of a State, as described in 18 U.S.C. 1151(b); (3) All Indian allotments, the Indian titles to which have not been extinguished, including rights-of-way running through the same, as defined in 18 U.S.C. 1151(c); (4) Any land held in trust by the United States for tribes or Native Americans or tribally-held restricted fee land; (5) Reservations established by a State government for a tribe or tribes recognized by the State; (6) Any Native village, as defined in 43 U.S.C. 1602(c), in Alaska; (7) Lands that have the status of Hawaiian Home Lands as defined in section 204 of the Hawaiian Homes Commission Act, 1920 (42 Stat. 108), as amended; (8) Areas defined by the U.S. Census Bureau as Alaska Native Village Statistical Areas, Oklahoma Tribal Statistical Areas, Tribal-Designated Statistical Areas, or American Indian Joint-Use Areas; and (9) Land areas of State-recognized Indian tribes and heritage groups that are defined and recognized by individual States and included in the U.S. Census Bureau's annual Boundary and Annexation Survey. New Markets Tax Credit (NMTC) Nonmetropolitan area Open-end home mortgage loan Operating subsidiary, Other delivery system Outside retail lending area Persistent poverty county Product line (1) Closed-end home mortgage loans; (2) Small business loans; (3) Small farm loans; and (4) Automobile loans, if a bank is a majority automobile lender or opts to have its automobile loans evaluated pursuant to § 345.22. Remote service facility Reported loan (1) A home mortgage loan or a multifamily loan reported by a bank pursuant to the Home Mortgage Disclosure Act, as implemented by 12 CFR part 1003; or (2) A small business loan or a small farm loan reported by a bank pursuant to § 345.42. Retail banking products Retail banking services Retail lending assessment area Retail Lending Test Area Small bank Small business Small business loan Small farm Small farm loan State Targeted census tract (1) A low-income census tract or a moderate-income census tract; or (2) A distressed or underserved nonmetropolitan middle-income census tract. Tribal government Women's depository institution (WDI) § 345.13 Consideration of community development loans, community development investments, and community development services. As provided in paragraph (a) of this section, a bank may receive consideration for a loan, investment, or service that supports community development as described in paragraphs (b) through (l) of this section. (a) Full and partial credit for community development loans, community development investments, and community development services Full credit. (i) Majority standard. (A) The loan, investment, or service supports community development under one or more of paragraphs (b) through (l) of this section; and (B)( 1 ( 2 ( 3 ( 4 ( 5 ( 6 ( 7 (ii) Bona fide intent standard. (A) The housing units, beneficiaries, or proportion of dollars necessary to meet the majority standard are not reasonably quantifiable pursuant to paragraph (a)(1)(i) of this section; (B) The loan, investment, or service has the express, bona fide intent of community development under one or more of paragraphs (b) through (l) of this section; and (C) The loan, investment, or service is specifically structured to achieve community development under one or more of paragraphs (b) through (l) of this section. (iii) MDI, WDI, LICU, or CDFI. (iv) LIHTC. (2) Partial credit. (b) Affordable housing. (1) Rental housing in conjunction with a government affordable housing plan, program, initiative, tax credit, or subsidy. (2) Multifamily rental housing with affordable rents. (i) For the majority of units, the monthly rent as underwritten by the bank, reflecting post-construction or post-renovation changes as applicable, does not exceed 30 percent of 80 percent of the area median income; and (ii) One or more of the following additional criteria are met: (A) The housing is located in a low- or moderate-income census tract; (B) The housing is located in a census tract in which the median income of renters is low- or moderate-income and the median rent does not exceed 30 percent of 80 percent of the area median income; (C) The housing is purchased, developed, financed, rehabilitated, improved, or preserved by any nonprofit organization with a stated mission of, or that otherwise directly supports, providing affordable housing; or (D) The bank provides documentation that a majority of the housing units are occupied by low- or moderate-income individuals, families, or households. (3) One-to-four family rental housing with affordable rents in a nonmetropolitan area. (4) Affordable owner-occupied housing for low- or moderate-income individuals. (5) Mortgage-backed securities. (i) Are home mortgage loans made to low- or moderate-income individuals; or (ii) Are loans that finance multifamily affordable housing that meets the requirements of paragraph (b)(1) of this section. (c) Economic development. (1) Government-related support for small businesses and small farms. (i) Loans, investments, and services other than direct loans to small businesses and small farms. (A) Small Business Investment Company (13 CFR part 107); (B) New Markets Venture Capital Company (13 CFR part 108); (C) Qualified Community Development Entity (26 U.S.C. 45D(c)); or (D) U.S. Department of Agriculture Rural Business Investment Company (7 CFR 4290.50). (ii) Direct loans to small businesses and small farms. (A) Size eligibility standard. (B) Purpose test. (2) Intermediary support for small businesses and small farms. (3) Other support for small businesses and small farms. (d) Community supportive services. (1) Are conducted with a mission-driven nonprofit organization; (2) Are conducted with a nonprofit organization located in and serving low- or moderate-income census tracts; (3) Are conducted in a low- or moderate-income census tract and targeted to the residents of the census tract; (4) Are offered to individuals at a workplace where the majority of employees are low- or moderate-income, based on U.S. Bureau of Labor Statistics data for the average wage for workers in that particular occupation or industry; (5) Are provided to students or their families through a school at which the majority of students qualify for free or reduced-price meals under the U.S. Department of Agriculture's National School Lunch Program; (6) Primarily benefit or serve individuals who receive or are eligible to receive Medicaid; (7) Primarily benefit or serve individuals who receive or are eligible to receive Federal Supplemental Security Income, Social Security Disability Insurance, or support through other Federal disability assistance programs; or (8) Primarily benefit or serve recipients of government assistance plans, programs, or initiatives that have income qualifications equivalent to, or stricter than, the definitions of low- and moderate-income as defined in this part. Examples include, but are not limited to, the U.S. Department of Housing and Urban Development's section 8, 202, 515, and 811 programs or the U.S. Department of Agriculture's section 514, 516, and Supplemental Nutrition Assistance programs. (e) Revitalization or stabilization In general. (i) Are undertaken in conjunction with a plan, program, or initiative of a Federal, State, local, or tribal government or a mission-driven nonprofit organization, where the plan, program, or initiative includes a focus on revitalizing or stabilizing targeted census tracts; (ii) Benefit or serve residents, including low- or moderate-income individuals, of targeted census tracts; and (iii) Do not directly result in the forced or involuntary relocation of low- or moderate-income individuals in targeted census tracts. (2) Mixed-use revitalization or stabilization project. (i) The criteria in paragraph (e)(1) of this section are met; and (ii) More than 50 percent of the project is non-residential as measured by the percentage of total square footage or dollar amount of the project. (f) Essential community facilities. (1) Are undertaken in conjunction with a plan, program, or initiative of a Federal, State, local, or tribal government or a mission-driven nonprofit organization, where the plan, program, or initiative includes a focus on benefitting or serving targeted census tracts; (2) Benefit or serve residents, including low- or moderate-income individuals, of targeted census tracts; and (3) Do not directly result in the forced or involuntary relocation of low- or moderate-income individuals in targeted census tracts. (g) Essential community infrastructure. (1) Are undertaken in conjunction with a plan, program, or initiative of a Federal, State, local, or tribal government or a mission-driven nonprofit organization, where the plan, program, or initiative includes a focus on benefitting or serving targeted census tracts; (2) Benefit or serve residents, including low- or moderate-income individuals, of targeted census tracts; and (3) Do not directly result in the forced or involuntary relocation of low- or moderate-income individuals in targeted census tracts. (h) Recovery of designated disaster areas In general. (i) Are undertaken in conjunction with a disaster plan, program, or initiative of a Federal, State, local, or tribal government or a mission-driven nonprofit organization, where the plan, program, or initiative includes a focus on benefitting or serving the designated disaster area; (ii) Benefit or serve residents, including low- or moderate-income individuals, of the designated disaster area; and (iii) Do not directly result in the forced or involuntary relocation of low- or moderate-income individuals in the designated disaster area. (2) Eligibility limitations for loans, investments, or services supporting recovery of a designated disaster area. (ii) The FDIC will consider loans, investments, and services that support recovery from a designated disaster under this paragraph (h)(2) for 36 months after a Major Disaster Declaration, unless that time period is extended by the Board, the FDIC, and the OCC. (i) Disaster preparedness and weather resiliency. (1) Are undertaken in conjunction with a plan, program, or initiative of a Federal, State, local, or tribal government or a mission-driven nonprofit organization, where the plan, program, or initiative includes a focus on benefitting or serving targeted census tracts; (2) Benefit or serve residents, including low- or moderate-income individuals, in targeted census tracts; and (3) Do not directly result in the forced or involuntary relocation of low- or moderate-income individuals in targeted census tracts. (j) Revitalization or stabilization, essential community facilities, essential community infrastructure, and disaster preparedness and weather resiliency in Native Land Areas. (2) Revitalization or stabilization activities in Native Land Areas are defined consistent with paragraph (e) of this section, but specifically: (i) Are undertaken in conjunction with a plan, program, or initiative of a Federal, State, local, or tribal government or a mission-driven nonprofit organization, where the plan, program, or initiative includes an explicit focus on revitalizing or stabilizing Native Land Areas and a particular focus on low- or moderate-income households; (ii) Benefit or serve residents in Native Land Areas, with substantial benefits for low- or moderate-income individuals in Native Land Areas; and (iii) Do not directly result in the forced or involuntary relocation of low- or moderate-income individuals in Native Land Areas. (3) Essential community facilities, essential community infrastructure, and disaster preparedness and weather resiliency activities in Native Land Areas are defined consistent with paragraphs (f), (g), and (i) of this section, respectively, but specifically: (i) Are undertaken in conjunction with a plan, program, or initiative of a Federal, State, local, or tribal government or a mission-driven nonprofit organization, where the plan, program, or initiative includes an explicit focus on benefitting or serving Native Land Areas; (ii) Benefit or serve residents, including low- or moderate-income individuals, in Native Land Areas; and (iii) Do not directly result in the forced or involuntary relocation of low- or moderate-income individuals in Native Land Areas. (k) Activities with MDIs, WDIs, LICUs, or CDFIs. (l) Financial literacy. § 345.14 Community development illustrative list; Confirmation of eligibility. (a) Illustrative list Issuing and maintaining the illustrative list. (2) Modifying the illustrative list. (ii) If the Board, the FDIC, and the OCC determine that a loan or investment is no longer eligible for community development consideration, the owner of the loan or investment at the time of the determination will continue to receive community development consideration for the remaining term or period of the loan or investment. However, these loans or investments will not be considered eligible for community development consideration for any new purchasers of that loan or investment after the agencies make a determination that the loan or investment is no longer eligible for community development consideration. (b) Confirmation of eligibility Request for confirmation of eligibility. (2) Determination of eligibility. (A) Information that describes and supports the request; and (B) Any other information that the FDIC deems relevant. (ii) The Board, the FDIC, and the OCC expect and are presumed to jointly determine eligibility of a loan, investment, or service under paragraph (b)(2)(i) of this section to promote consistency. Before making a determination under paragraph (b)(2)(i) of this section, the FDIC consults with the Board and OCC regarding the eligibility of a loan, investment, or service. (iii) The FDIC may impose limitations or requirements on a determination of the eligibility of a loan, investment, or service to ensure consistency with this part. (3) Notification of eligibility. § 345.15 Impact and responsiveness review of community development loans, community development investments, and community development services. (a) Impact and responsiveness review, in general. (b) Impact and responsiveness review factors. (1) Benefits or serves one or more persistent poverty counties; (2) Benefits or serves one or more census tracts with a poverty rate of 40 percent or higher; (3) Benefits or serves one or more geographic areas with low levels of community development financing; (4) Supports an MDI, WDI, LICU, or CDFI, excluding certificates of deposit with a term of less than one year; (5) Benefits or serves low-income individuals, families, or households; (6) Supports small businesses or small farms with gross annual revenues of $250,000 or less; (7) Directly facilitates the acquisition, construction, development, preservation, or improvement of affordable housing in High Opportunity Areas; (8) Benefits or serves residents of Native Land Areas; (9) Is a grant or donation; (10) Is an investment in projects financed with LIHTCs or NMTCs; (11) Reflects bank leadership through multi-faceted or instrumental support; or (12) Is a new community development financing product or service that addresses community development needs for low- or moderate-income individuals, families, or households. Subpart B—Geographic Considerations § 345.16 Facility-based assessment areas. (a) In general. (b) Geographic requirements for facility-based assessment areas. (2) Except as provided in paragraph (b)(3) of this section, each of a bank's facility-based assessment areas must consist of a single MSA, one or more contiguous counties within an MSA, or one or more contiguous counties within the nonmetropolitan area of a State. (3) An intermediate bank or a small bank may adjust the boundaries of its facility-based assessment areas to include only the portion of a county that it reasonably can be expected to serve, subject to paragraph (c) of this section. A facility-based assessment area that includes a partial county must consist of contiguous whole census tracts. (c) Other limitations on the delineation of a facility-based assessment area. (1) May not reflect illegal discrimination; and (2) May not arbitrarily exclude low- or moderate-income census tracts. In determining whether a bank has arbitrarily excluded low- or moderate-income census tracts from a facility-based assessment area, the FDIC takes into account the bank's capacity and constraints, including its size and financial condition. (d) Military banks. (e) Use of facility-based assessment areas. § 345.17 Retail lending assessment areas. (a) In general. (2) A large bank is not required to delineate retail lending assessment areas for a particular calendar year if, in the prior two calendar years, the large bank originated or purchased within its facility-based assessment areas more than 80 percent of its home mortgage loans, multifamily loans, small business loans, small farm loans, and automobile loans if automobile loans are a product line for the large bank as described in paragraph II.a.1 of appendix A to this part. (3) If, in a retail lending assessment area delineated pursuant to paragraph (c) of this section, the large bank did not originate or purchase any reported loans in any of the product lines that formed the basis of the retail lending assessment area delineation pursuant to paragraph (c)(1) or (2) of this section, the FDIC will not consider the retail lending assessment area to have been delineated for that calendar year. (b) Geographic requirements for retail lending assessment areas. (i) The entirety of a single MSA (using the MSA boundaries that were in effect as of January 1 of the calendar year in which the delineation applies), excluding any counties inside the large bank's facility-based assessment areas; or (ii) All of the counties in the nonmetropolitan area of a State (using the MSA boundaries that were in effect as of January 1 of the calendar year in which the delineation applies), excluding: (A) Any counties included in the large bank's facility-based assessment areas; and (B) Any counties in which the large bank did not originate any closed-end home mortgage loans or small business loans that are reported loans during that calendar year. (2) A retail lending assessment area may not extend beyond a State boundary unless the retail lending assessment area consists of counties in a multistate MSA. (c) Delineation of retail lending assessment areas. (1) At least 150 closed-end home mortgage loans that are reported loans in each year of the prior two calendar years; or (2) At least 400 small business loans that are reported loans in each year of the prior two calendar years. (d) Use of retail lending assessment areas. § 345.18 Outside retail lending areas. (a) In general Large banks. (2) Intermediate or small banks. (i) The bank opts to have its major product lines evaluated in its outside retail lending area; or (ii) In the prior two calendar years, the bank originated or purchased outside the bank's facility-based assessment areas more than 50 percent of the bank's home mortgage loans, multifamily loans, small business loans, small farm loans, and automobile loans if automobile loans are a product line for the bank, as described in paragraph II.a.2 of appendix A to this part. (b) Geographic requirements of outside retail lending areas In general. (i) The bank's facility-based assessment areas and retail lending assessment areas; and (ii) Any county in a nonmetropolitan area in which the bank did not originate or purchase any closed-end home mortgage loans, small business loans, small farm loans, or automobile loans if automobile loans are a product line for the bank. (2) Component geographic area. § 345.19 Areas for eligible community development loans, community development investments, and community development services. The FDIC may consider a bank's community development loans, community development investments, and community development services provided outside of its facility-based assessment areas, as provided in this part. § 345.20 [Reserved] Subpart C—Standards for Assessing Performance § 345.21 Evaluation of CRA performance in general. (a) Application of performance tests and strategic plans Large banks. (2) Intermediate banks In general. (ii) Intermediate banks evaluated under § 345.24. (iii) Additional consideration. (3) Small banks In general. (ii) Small banks evaluated under the Retail Lending Test. (A) The FDIC evaluates the small bank using the same provisions used to evaluate intermediate banks pursuant to the Retail Lending Test in § 345.22. (B) The FDIC evaluates the small bank for the evaluation period preceding the bank's next CRA examination pursuant to the Retail Lending Test in § 345.22 and continues evaluations under this performance test for subsequent evaluation periods until the bank opts out. If a small bank opts out of the Retail Lending Test in § 345.22, the FDIC reverts to evaluating the bank pursuant to the Small Bank Lending Test in § 345.29(a)(2), starting with the evaluation period preceding the bank's next CRA examination. (iii) Additional consideration. (4) Limited purpose banks In general. (ii) Additional consideration. (5) Military banks In general. (ii) Evaluation approach for military banks operating under § 345.16(d). (6) Banks operating under a strategic plan. (b) Loans, investments, services, and products of operating subsidiaries and other affiliates In general. (2) Loans, investments, services, and products of operating subsidiaries. (3) Loans, investments, services, and products of other affiliates. (i) The affiliate is not independently subject to the CRA. (ii) The bank collects, maintains, and reports data on the loans, investments, services, or products of the affiliate as provided in § 345.42(d). (iii) Pursuant to the Retail Lending Test in § 345.22, if a bank opts to have the FDIC consider the closed-end home mortgage loans, small business loans, small farm loans, or automobile loans that are originated or purchased by one or more of the bank's affiliates in a particular Retail Lending Test Area, the FDIC will consider, subject to paragraphs (b)(3)(i) and (ii) of this section, all of the loans in that product line originated or purchased by all of the bank's affiliates in the particular Retail Lending Test Area. (iv) Pursuant to the Retail Lending Test in § 345.22, if a large bank opts to have the FDIC consider the closed-end home mortgage loans or small business loans that are originated or purchased by any of the bank's affiliates in any Retail Lending Test Area, the FDIC will consider, subject to paragraphs (b)(3)(i) and (ii) of this section, the closed-end home mortgage loans or small business loans originated by all of the bank's affiliates in the nationwide area when delineating retail lending assessment areas pursuant to § 345.17(c). (v) Pursuant to the Community Development Financing Test in § 345.24, the Community Development Financing Test for Limited Purpose Banks in § 345.26, the Intermediate Bank Community Development Test in § 345.30(a)(2), or pursuant to an approved strategic plan in § 345.27, the FDIC will consider, at the bank's option, community development loans or community development investments that are originated, purchased, refinanced, or renewed by one or more of the bank's affiliates, subject to paragraphs (b)(3)(i) and (ii) of this section. (c) Community development lending and community development investment by a consortium or a third party. (1) The bank must collect, maintain, and report the data pertaining to the community development loans and community development investments as provided in § 345.42(e), as applicable; (2) If the participants or investors choose to allocate community development loans or community development investments among themselves for consideration under this section, no participant or investor may claim a loan origination, loan purchase, or investment for community development consideration if another participant or investor claims the same loan origination, loan purchase, or investment; and (3) The bank may not claim community development loans or community development investments accounting for more than its percentage share (based on the level of its participation or investment) of the total loans or investments made by the consortium or third party. (d) Performance context information considered. (1) Any information regarding a bank's institutional capacity or constraints, including the size and financial condition of the bank, safety and soundness limitations, or any other bank-specific factors that significantly affect the bank's ability to provide retail lending, retail banking services and retail banking products, community development loans, community development investments, or community development services; (2) Any information regarding the bank's past performance; (3) Demographic data on income levels and income distribution, nature of housing stock, housing costs, economic climate, or other relevant data; (4) Any information about retail banking and community development needs and opportunities provided by the bank or other relevant sources, including, but not limited to, members of the community, community organizations, State, local, and tribal governments, and economic development agencies; (5) Data and information provided by the bank regarding the bank's business strategy and product offerings; (6) The bank's public file, as provided in § 345.43, including any written comments about the bank's CRA performance submitted to the bank or the FDIC and the bank's responses to those comments; and (7) Any other information deemed relevant by the FDIC. (e) Conclusions and ratings Conclusions. (2) Ratings. (f) Safe and sound operations. § 345.22 Retail lending test. Link to an amendment published at 89 FR 7206, Feb. 1, 2024. (a) Retail Lending Test In general. (2) Automobile loans. (b) Methodology overview Retail Lending Volume Screen. (2) Retail lending distribution analysis. (3) Retail Lending Test recommended conclusions. (4) Retail Lending Test conclusions. (5) Exceptions No major product line. (ii) Banks that lack an acceptable basis for not meeting the Retail Lending Volume Threshold. (c) Retail Lending Volume Screen Retail Lending Volume Threshold. (2) Banks that meet or surpass the Retail Lending Volume Threshold in a facility-based assessment area. (3) Banks that do not meet the Retail Lending Volume Threshold in a facility-based assessment area Acceptable basis factors. (A) The bank's dollar volume of non-automobile consumer loans; (B) The bank's institutional capacity and constraints, including the financial condition of the bank; (C) The presence or lack of other lenders in the facility-based assessment area; (D) Safety and soundness limitations; (E) The bank's business strategy; and (F) Any other factors that limit the bank's ability to lend in the facility-based assessment area. (ii) Banks that have an acceptable basis for not meeting the Retail Lending Volume Threshold in a facility-based assessment area. (iii) Banks that lack an acceptable basi for not meeting the Retail Lending Volume Threshold in a facility-based assessment area Large banks. ( 1 ( 2 ( 3 ( 4 (B) Intermediate or small banks. ( 1 ( 2 ( 3 ( 4 (d) Scope of Retail Lending Test distribution analysis Product lines evaluated in a Retail Lending Test Area. (i) Closed-end home mortgage loans in a bank's facility-based assessment areas and, as applicable, retail lending assessment areas and outside retail lending area; (ii) Small business loans in a bank's facility-based assessment areas and, as applicable, retail lending assessment areas and outside retail lending area; (iii) Small farm loans in a bank's facility-based assessment areas and, as applicable, outside retail lending area; and (iv) Automobile loans in a bank's facility-based assessment areas and, as applicable, outside retail lending area. (2) Major product line standards Major product line standard for facility-based assessment areas and outside retail lending areas. (ii) Major product line standards for retail lending assessment areas. (A) Closed-end home mortgage loans are a major product line in any calendar year in the evaluation period in which the bank delineates a retail lending assessment area based on its closed-end home mortgage loans as determined by the standard in § 345.17(c)(1); and (B) Small business loans are a major product line in any calendar year in the evaluation period in which the bank delineates a retail lending assessment area based on its small business loans as determined by the standard in § 345.17(c)(2). (e) Retail Lending Test distribution analysis. (1) Distribution analysis in general Distribution analysis for closed-end home mortgage loans, small business loans, and small farm loans. (ii) Distribution analysis for automobile loans. (2) Categories of lending evaluated Geographic distributions. (A) Low-income census tracts; and (B) Moderate-income census tracts. (ii) Borrower distributions. (A) Low-income borrowers; (B) Moderate-income borrowers; (C) Businesses with gross annual revenues of $250,000 or less; (D) Businesses with gross annual revenues greater than $250,000 but less than or equal to $1 million; (E) Farms with gross annual revenues of $250,000 or less; and (F) Farms with gross annual revenues greater than $250,000 but less than or equal to $1 million. (3) Geographic distribution measures. (i) Geographic Bank Metric. (ii) Geographic Market Benchmark. (iii) Geographic Community Benchmark. (4) Borrower distribution measures. (i) Borrower Bank Metric. (ii) Borrower Market Benchmark. (iii) Borrower Community Benchmark. (f) Retail Lending Test recommended conclusions In general. (2) Geographic distribution supporting conclusions Geographic distribution supporting conclusions for closed-end home mortgage loans, small business loans, and small farm loans. (ii) Geographic distribution supporting conclusions for automobile loans. (3) Borrower distribution supporting conclusions Borrower distribution supporting conclusions for closed-end home mortgage loans, small business loans, and small farm loans. (ii) Borrower distribution supporting conclusions for automobile loans. (4) Development of Retail Lending Test recommended conclusions Assignment of performance scores. (ii) Combination of performance scores. (A) Combines the performance scores for each supporting conclusion for each major product line into a product line score; and (B) Calculates a weighted average of product line scores across all major product lines. (iii) Retail Lending Test recommended conclusions. (g) Additional factors considered when evaluating retail lending performance. (1) Information indicating that a bank purchased closed-end home mortgage loans, small business loans, small farm loans, or automobile loans for the sole or primary purpose of inappropriately enhancing its retail lending performance, including, but not limited to, information indicating subsequent resale of such loans or any indication that such loans have been considered in multiple depository institutions' CRA evaluations, in which case the FDIC does not consider such loans in the bank's performance evaluation; (2) The dispersion of a bank's closed-end home mortgage lending, small business lending, small farm lending, or automobile lending within a facility-based assessment area to determine whether there are gaps in lending that are not explained by performance context; (3) The number of lenders whose home mortgage loans, multifamily loans, small business loans, and small farm loans and deposits data are used to establish the applicable Retail Lending Volume Threshold, geographic distribution market benchmarks, and borrower distribution market benchmarks; (4) Missing or faulty data that would be necessary to calculate the relevant metrics and benchmarks or any other factors that prevent the FDIC from calculating a Retail Lending Test recommended conclusion. If unable to calculate a Retail Lending Test recommended conclusion, the FDIC assigns a Retail Lending Test conclusion based on consideration of the relevant available data; (5) Whether the Retail Lending Test recommended conclusion does not accurately reflect the bank's performance in a Retail Lending Test Area in which one or more of the bank's major product lines consists of fewer than 30 loans; (6) A bank's closed-end home mortgage lending, small business lending, small farm lending, or automobile lending in distressed or underserved nonmetropolitan middle-income census tracts where a bank's nonmetropolitan facility-based assessment area or nonmetropolitan retail lending assessment area includes very few or no low- and moderate-income census tracts; and (7) Information indicating that the credit needs of the facility-based assessment area or retail lending assessment area are not being met by lenders in the aggregate, such that the relevant benchmarks do not adequately reflect community credit needs. (h) Retail Lending Test performance conclusions and ratings Conclusions In general. (ii) Retail Lending Test Area conclusions. (A) Facility-based assessment areas with no major product line. (B) Facility-based assessment areas in which a bank lacks an acceptable basis for not meeting the Retail Lending Volume Threshold. (2) Ratings. § 345.23 Retail services and products test. (a) Retail Services and Products Test In general. (2) Main offices. (3) Exclusion. (b) Retail banking services Scope of evaluation. (i) Branch availability and services. (ii) Remote service facility availability. (iii) Digital delivery systems and other delivery systems. (A) The FDIC considers the digital delivery systems and other delivery systems of the following banks: ( 1 ( 2 (B) For a large bank that had assets less than or equal $10 billion as of December 31 in either of the prior two calendar years and that operates at least one branch, the FDIC considers the bank's digital delivery systems and other delivery systems at the bank's option. (2) Branch availability and services. (i) Branch distribution. (A) Branch distribution metrics. (B) Benchmarks. ( 1 ( 2 ( 3 ( 4 (C) Additional geographic considerations. ( 1 ( 2 ( 3 (ii) Branch openings and closings. (iii) Branch hours of operation and services. (A) The reasonableness of branch hours in low- and moderate-income census tracts compared to middle- and upper-income census tracts, including, but not limited to, whether branches offer extended and weekend hours. (B) The range of services provided at branches in low-, moderate-, middle-, and upper-income census tracts, respectively, including, but not limited to: ( 1 ( 2 ( 3 ( 4 (C) The degree to which branch-provided retail banking services are responsive to the needs of low- and moderate-income individuals, families, or households in a bank's facility-based assessment areas. (3) Remote service facility availability. (i) Remote service facility distribution. (A) Remote service facility distribution metrics. (B) Benchmarks. ( 1 ( 2 ( 3 (C) Additional geographic considerations. ( 1 ( 2 ( 3 (ii) Access to out-of-network ATMs. (4) Digital delivery systems and other delivery systems. (i) The range of retail banking services and retail banking products offered through digital delivery systems and other delivery systems; (ii) The bank's strategy and initiatives to serve low- and moderate-income individuals, families, or households with digital delivery systems and other delivery systems as reflected by, for example, the costs, features, and marketing of the delivery systems; and (iii) Digital delivery systems and other delivery systems activity by individuals, families or households in low-, moderate-, middle-, and upper-income census tracts as evidenced by: (A) The number of checking and savings accounts opened each calendar year during the evaluation period digitally and through other delivery systems in low-, moderate-, middle-, and upper-income census tracts; (B) The number of checking and savings accounts opened digitally and through other delivery systems and that are active at the end of each calendar year during the evaluation period in low-, moderate-, middle-, and upper-income census tracts; and (C) Any other bank data that demonstrates digital delivery systems and other delivery systems are available to individuals and in census tracts of different income levels, including low- and moderate-income individuals, families, or households and low- and moderate-income census tracts. (c) Retail banking products evaluation Scope of evaluation. (i) Credit products and programs. (ii) Deposit products. (A) For large banks that had assets greater than $10 billion as of December 31 in both of the prior two calendar years; and (B) For large banks that had assets less than or equal to $10 billion as of December 31 in either of the prior two calendar years, the FDIC considers a bank's deposit products only at the bank's option. (2) Credit products and programs. (i) Facilitate home mortgage and consumer lending targeted to low- or moderate-income borrowers; (ii) Meet the needs of small businesses and small farms, including small businesses and small farms with gross annual revenues of $250,000 or less; (iii) Are conducted in cooperation with MDIs, WDIs, LICUs, or CDFIs; (iv) Are low-cost education loans; or (v) Are special purpose credit programs pursuant to 12 CFR 1002.8. (3) Deposit products. (i) Availability of deposit products responsive to the needs of low- and moderate-income individuals, families, or households. (A) Low-cost features, including, but not limited to, deposit products with no overdraft or insufficient funds fees, no or low minimum opening balance, no or low monthly maintenance fees, or free or low-cost check-cashing and bill-pay services; (B) Features facilitating broad functionality and accessibility, including, but not limited to, deposit products with in-network ATM access, debit cards for point-of-sale and bill payments, and immediate access to funds for customers cashing government, payroll, or bank-issued checks; or (C) Features facilitating inclusivity of access by individuals without banking or credit histories or with adverse banking histories. (ii) Usage of deposit products responsive to the needs of low- and moderate-income individuals. (A) The number of responsive deposit accounts opened and closed during each year of the evaluation period in low-, moderate-, middle-, and upper-income census tracts; (B) In connection with paragraph (c)(3)(ii)(A) of this section, the percentage of responsive deposit accounts compared to total deposit accounts for each year of the evaluation period; (C) Marketing, partnerships, and other activities that the bank has undertaken to promote awareness and use of responsive deposit accounts by low- and moderate-income individuals, families, or households; and (D) Optionally, any other information the bank provides that demonstrates usage of the bank's deposit products that have features and cost characteristics responsive to the needs of low- and moderate-income individuals, families, or households and low- and moderate-income census tracts. (d) Retail Services and Products Test performance conclusions and ratings Conclusions. (2) Ratings. § 345.24 Community development financing test. (a) Community Development Financing Test In general. i.e., (2) Allocation. (b) Facility-based assessment area evaluation. (1) Bank Assessment Area Community Development Financing Metric. (2) Benchmarks. (i) Assessment Area Community Development Financing Benchmark. (ii) MSA and Nonmetropolitan Nationwide Community Development Financing Benchmarks. (B) For each of a bank's facility-based assessment areas within a nonmetropolitan area, the Nonmetropolitan Nationwide Community Development Financing Benchmark measures the dollar volume of community development loans and community development investments that benefit or serve nonmetropolitan areas in the nationwide area for all large depository institutions compared to deposits located in nonmetropolitan areas in the nationwide area for all large depository institutions. (C) The FDIC calculates the MSA and Nonmetropolitan Nationwide Community Development Financing Benchmarks pursuant to paragraph II.c of appendix B to this part. (3) Impact and responsiveness review. (c) State evaluation. (1) Component one—weighted average of facility-based assessment area performance conclusions in a State. (2) Component two—State performance. (i) Bank State Community Development Financing Metric. (ii) Benchmarks. (A) State Community Development Financing Benchmark. (B) State Weighted Assessment Area Community Development Financing Benchmark. (iii) Impact and responsiveness review. (d) Multistate MSA evaluation. (1) Component one—weighted average of facility-based assessment area performance in a multistate MSA. (2) Component two—multistate MSA performance. (i) Bank Multistate MSA Community Development Financing Metric. (ii) Benchmarks. (A) Multistate MSA Community Development Financing Benchmark. (B) Multistate MSA Weighted Assessment Area Community Development Financing Benchmark. (iii) Impact and responsiveness review. (e) Nationwide area evaluation. (1) Component one—weighted average of facility-based assessment area performance in the nationwide area. (2) Component two—nationwide area performance. (i) Bank Nationwide Community Development Financing Metric. (ii) Community Development Financing Benchmarks. (A) Nationwide Community Development Financing Benchmark. (B) Nationwide Weighted Assessment Area Community Development Financing Benchmark. (iii) Bank Nationwide Community Development Investment Metric. (iv) Nationwide Community Development Investment Benchmark. (B) The Nationwide Community Development Investment Benchmark measures the dollar volume of community development investments that benefit or serve all or part of the nationwide area, excluding mortgage-backed securities, of all large depository institutions that had assets greater than $10 billion as of December 31 in both of the prior two calendar years compared to deposits located in the nationwide area for those depository institutions, calculated pursuant to paragraph II.n of appendix B to this part. (v) Impact and responsiveness review. (f) Community Development Financing Test performance conclusions and ratings Conclusions. (2) Ratings. § 345.25 Community development services test. (a) Community Development Services Test In general. (2) Allocation. (b) Facility-based assessment area evaluation. (1) The number of community development services attributable to each type of community development described in § 345.13(b) through (l); (2) The capacities in which a bank's or its affiliate's board members or employees serve ( e.g., (3) Total hours of community development services performed by the bank; (4) Any other evidence demonstrating that the bank's community development services are responsive to community development needs, such as the number of low- and moderate-income individuals that are participants, or number of organizations served; and (5) The impact and responsiveness of the bank's community development services that benefit or serve the facility-based assessment area, as provided in § 345.15. (c) State, multistate MSA, or nationwide area evaluation. (1) Component one—weighted average of facility-based assessment area performance in a State, multistate MSA, or nationwide area. (2) Component two—evaluation of community development services outside of facility-based assessment areas. (d) Community Development Services Test performance conclusions and ratings Conclusions. (2) Ratings. § 345.26 Limited purpose banks. (a) Bank request for designation as a limited purpose bank. (b) Performance evaluation In general. (2) Additional consideration Community development services. (ii) Additional consideration for low-cost education loans. (c) Community Development Financing Test for Limited Purpose Banks In general. i.e., (2) Allocation. (d) Facility-based assessment area evaluation. (1) Consideration of the dollar volume of the limited purpose bank's community development loans and community development investments that benefit or serve the facility-based assessment area; and (2) A review of the impact and responsiveness of the limited purpose bank's community development loans and community development investments that benefit or serve a facility-based assessment area, as provided in § 345.15. (e) State or multistate MSA evaluation. (1) Component one—facility-based assessment area performance conclusions in a State or multistate MSA. (2) Component two—State or multistate MSA performance. (f) Nationwide area evaluation. (1) Component one—facility-based assessment area performance. (2) Component two—nationwide area performance. (i) Limited Purpose Bank Community Development Financing Metric. (ii) Community Development Financing Benchmarks. (A) Nationwide Limited Purpose Bank Community Development Financing Benchmark. (B) Nationwide Asset-Based Community Development Financing Benchmark. (iii) Limited Purpose Bank Community Development Investment Metric. (iv) Nationwide Asset-Based Community Development Investment Benchmark. (B) The Nationwide Asset-Based Community Development Investment Benchmark measures the dollar volume of community development investments that benefit or serve all or part of the nationwide area, excluding mortgage-backed securities, of all depository institutions that had assets greater than $10 billion as of December 31 in both of the prior two calendar years, compared to assets for those depository institutions, calculated pursuant to paragraph III.e of appendix B to this part. (v) Impact and responsiveness review. (g) Community Development Financing Test for Limited Purpose Banks performance conclusions and ratings Conclusions. (2) Ratings. § 345.27 Strategic plan. (a) Alternative election. (1) The FDIC has approved the plan pursuant to this section; (2) The plan is in effect; and (3) The bank has been operating under an approved plan for at least one year. (b) Data requirements. (c) Plans in general Term. (2) Performance tests in plan. (ii) Consistent with paragraph (g) of this section, a bank's plan may include optional evaluation components or eligible modifications and additions to the performance tests that would apply in the absence of an approved plan. (3) Assessment areas and other geographic areas Multiple geographic areas. (ii) Geographic areas not included in a plan. (4) Operating subsidiaries and affiliates Operating subsidiaries. (ii) Affiliates Optional inclusion of other affiliates' loans, investments, services, and products. (B) Joint plans. (C) Allocation. ( 1 ( 2 (d) Justification and appropriateness of plan election Justification requirements. e.g., (i) Optional evaluation components pursuant to paragraph (g)(1) of this section; (ii) Eligible modifications or additions to the applicable performance tests pursuant to paragraph (g)(2) of this section; (iii) Additional geographic areas pursuant to paragraph (g)(3) of this section; and (iv) The conclusions and ratings methodology pursuant to paragraph (g)(6) of this section. (2) Justification elements. (i) Why the bank's business model is outside the scope of, or inconsistent with, one or more aspects of the performance tests that would apply in the absence of an approved plan; (ii) Why an evaluation of the bank pursuant to any aspect of a plan in paragraph (d)(1) of this section would more meaningfully reflect a bank's record of helping to meet the credit needs of its community than if it were evaluated under the performance tests that would apply in the absence of an approved plan; and (iii) Why the optional performance components and eligible modifications or additions meet the standards of paragraphs (g)(1) and (2) of this section, as applicable. (e) Public participation in initial draft plan development In general. (i) Informally seek suggestions from members of the public while developing the plan; (ii) Once the bank has developed its initial draft plan, formally solicit public comment on the initial draft plan for at least 60 days by: (A) Submitting the initial draft plan for publication on the FDIC's website and by publishing the initial draft plan on the bank's website, if the bank maintains one; and (B)( 1 2 ( 2 (iii) Include in the notice required under paragraph (e)(1)(ii) of this section a means by which members of the public can electronically submit and mail comments to the bank on its initial draft plan. (2) Availability of initial draft plan. (f) Submission of a draft plan. (1) Proof of notice publication and a description of its efforts to seek input from members of the public, including individuals and organizations the bank contacted and how the bank gathered information; (2) Any written comments or other public input received; (3) If the bank revised the initial draft plan in response to the public input received, the initial draft plan as released for public comment with an explanation of the relevant changes; and (4) If the bank did not revise the initial draft plan in response to suggestions or concerns from public input received, an explanation for why any suggestion or concern was not addressed in the draft plan. (g) Plan content. (1) Applicable performance tests and optional evaluation components. (i) The retail lending needs of its facility-based assessment areas, retail lending assessment areas, and outside retail lending area that are covered by the plan. A bank that originates or purchases loans in a product line evaluated pursuant to the Retail Lending Test in § 345.22 or originates or purchases loans evaluated pursuant to the Small Bank Lending Test in § 345.29(a)(2) must include the applicable test in its plan, subject to eligible modifications or additions specified in paragraph (g)(2) of this section. (ii) The retail banking services and retail banking products needs of its facility-based assessment areas and at the institution level that are covered by the plan. (A) A large bank that maintains delivery systems evaluated pursuant to the Retail Services and Products Test in § 345.23(b) must include this component of the test in its plan, subject to eligible modifications or additions specified in paragraph (g)(2) of this section. (B) A large bank that does not maintain delivery systems evaluated pursuant to the Retail Services and Products Test in § 345.23(b) may include retail banking products components in § 345.23(c) and accompanying annual measurable goals in its plan. (C) A bank other than a large bank may include components of retail banking services or retail banking products and accompanying annual measurable goals in its plan. (iii) The community development loan and community development investment needs of its facility-based assessment areas, States, or multistate MSAs, as applicable, and the nationwide area that are covered by the plan. Subject to eligible modifications or additions as provided in paragraph (g)(2) of this section: (A) A large bank must include the Community Development Financing Test in § 345.24 in its plan. (B) An intermediate bank must include either the Community Development Financing Test in § 345.24 or the Intermediate Bank Community Development Test in § 345.30(a)(2) in its plan. (C) A limited purpose bank must include the Community Development Financing Test for Limited Purpose Banks in § 345.26 in its plan. (D) A small bank may include a community development loan or community development investment component and accompanying annual measurable goals in its plan. (iv) The community development services needs of its facility-based assessment areas served by the bank that are covered by the plan. (A) A large bank must include the Community Development Services Test in § 345.25 in its plan, subject to eligible modifications or additions as provided in paragraph (g)(2) of this section, for each facility-based assessment area where the bank has employees. (B) A bank other than a large bank may include a community development services component and accompanying annual measurable goals in its plan. (2) Eligible modifications or additions to applicable performance tests Retail lending. ( 1 ( 2 (B) For a bank the FDIC would otherwise evaluate pursuant to the Retail Lending Test in § 345.22: ( 1 ( 2 1 ( 3 (ii) Retail banking services and retail banking products. (B) A large bank may modify the Retail Services and Products Test by removing a component of the test. (C) A large bank may assign specific weights to applicable components in paragraph (g)(2)(ii)(A) of this section in reaching a Retail Services and Products Test conclusion. (D) A bank other than a large bank may include retail banking services or retail banking products component(s) and accompanying annual measurable goals in its plan. (iii) Community development loans and community development investments. (B) A bank may specify using assets as an alternative denominator for a community development financing metric if it better measures a bank's capacity. (C) A bank may specify additional benchmarks to evaluate a community development financing metric. (D) A small bank may include community development loans, community development investments, or both, and accompanying annual measurable goals in its plan. (iv) Community development services. (B) A bank other than a large bank may include a community development services component and accompanying annual measurable goals in its plan. (v) Weights for assessing performance across geographic areas. (vi) Test weights. (A) A bank may request an alternate weighting method for combining performance under the applicable performance tests and optional evaluation components. In specifying alternative test weights for each applicable test, a bank must emphasize retail lending, community development financing, or both. Alternative weights must be responsive to the characteristics and credit needs of a bank's assessment areas and public comments and must be based on the bank's capacity and constraints, product offerings, and business strategy. (B) A bank that requests an alternate weighting method pursuant to paragraph (g)(2)(vi)(A) of this section must compensate for decreasing the weight under one test by committing to enhance its efforts to help meet the credit needs of its community under another performance test. (3) Geographic coverage of plan. (ii) If a large bank is no longer required to delineate a retail lending assessment area previously identified in the plan as a result of not meeting the required retail lending assessment area thresholds pursuant to § 345.17, the FDIC will not evaluate the bank for its performance in that area for the applicable years of the plan in which the area is no longer a retail lending assessment area. (iii) A bank that includes additional performance evaluation components with accompanying annual measurable goals in its plan must specify the geographic areas where those components and goals apply. (4) Confidential information. (5) “Satisfactory” and “Outstanding” performance goals. (6) Conclusions and rating methodology. (i) Conclusions. (ii) Ratings. (h) Draft plan evaluation Timing. (2) Public participation. (i) The public's involvement in formulating the draft plan, including specific information regarding the members of the public and organizations the bank contacted and how the bank collected information relevant to the draft plan; (ii) Written public comments and other public input on the draft plan; (iii) Any response by the bank to public input on the draft plan; and (iv) Whether to solicit additional public input or require the bank to provide any additional response to public input already received. (3) Criteria for evaluating plan for approval. (A) The extent to which the plan meets the standards set forth in this section; and (B) The extent to which the plan has adequately justified the need for a plan and each aspect of the plan as required in paragraph (d) of this section. (ii) The FDIC evaluates a plan under the following criteria, as applicable, considering performance context information pursuant to § 345.21(d): (A) The extent and breadth of retail lending or retail lending-related activities to address credit needs, including the distribution of loans among census tracts of different income levels, businesses and farms of different sizes, and individuals of different income levels, pursuant to §§ 345.22, and 345.29, as applicable; (B) The effectiveness of the bank's systems for delivering retail banking services and the availability and responsiveness of the bank's retail banking products, pursuant to § 345.23, as applicable; (C) The extent, breadth, impact, and responsiveness of the bank's community development loans and community development investments, pursuant to §§ 345.24, 345.26, and 345.30, as applicable; and (D) The number, hours, and types of community development services performed and the extent to which the bank's community development services are impactful and responsive, pursuant to §§ 345.25 and 345.30, as applicable. (4) Plan decisions Approval. (ii) Denial. (A) The Agency determines that the bank has not provided adequate justification for the plan and each aspect of the plan as required pursuant to paragraph (d) of this section; (B) The FDIC determines that evaluation under the plan would not provide a more meaningful reflection of the bank's record of helping to meet the credit needs of the bank's community; (C) The plan is not responsive to public comment received pursuant to paragraph (e) of this section; (D) The FDIC determines that the plan otherwise fails to meet the requirements of this section; or (E) The bank fails to provide information requested by the FDIC that is necessary for the FDIC to make an informed decision. (5) Publication of approved plan. (i) Plan amendment Mandatory plan amendment. (i) Impedes its ability to perform at a satisfactory level under the plan, such as financial constraints caused by significant events that impact the local or national economy; or (ii) Significantly increases its financial capacity and ability to engage in retail lending, retail banking services, retail banking products, community development loans, community development investments, or community development services referenced in an approved plan, such as a merger or consolidation. (2) Elective plan amendment. (3) Requirements for plan amendments Amendment explanation. (A) The material change in circumstances necessitating the amendment; or (B) Why it is necessary and appropriate to amend its plan in the absence of a material change in circumstances. (ii) Compliance requirement. (j) Performance evaluation under a plan In general. (2) Goal considerations. (i) The degree to which the goal was not met; (ii) The importance of the unmet goals to the plan as a whole; and (iii) Any circumstances beyond the control of the bank, such as economic conditions or other market factors or events, that have adversely impacted the bank's ability to perform. (3) Ratings. [89 FR 7205, Feb. 1, 2024; 89 FR 22069, Mar. 29, 2024] § 345.28 Assigned conclusions and ratings. (a) Conclusions State, multistate MSA, and institution test conclusions and performance scores In general. (ii) Small banks. (iii) Banks operating under a strategic plan. (2) Bank performance in metropolitan and nonmetropolitan areas. (b) Ratings In general. (2) State, multistate MSA, and institution ratings and overall performance scores. (ii) Overall performance scores are based on the bank'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. (i) Large bank performance test weights. (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 performance test weights. (A) Retail Lending Test, 50 percent; and (B) Intermediate Bank Community Development Test or Community Development Financing Test, as applicable, 50 percent. (4) Minimum conclusion requirements Retail Lending Test minimum conclusion. (ii) Minimum of “Low Satisfactory” overall facility-based assessment area and retail lending assessment area conclusion. (B) Except as provided in § 345.51(e), a large bank 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 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 States In general. (ii) States with rated multistate MSAs. (iii) States with non-rated multistate MSAs. (iv) States with multistate retail lending assessment areas. (2) Rated multistate MSAs. (d) Effect of evidence of discriminatory or other illegal credit practices Scope. (i) The bank, including by an operating subsidiary of the bank; or (ii) Any other affiliate related to any activities considered in the evaluation of the bank. (2) Discriminatory or other illegal credit practices. (i) Discrimination on a prohibited basis, including in violation of the Equal Credit Opportunity Act (15 U.S.C. 1691 et seq. 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. (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 FDIC. (3) Agency considerations. (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, 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. § 345.29 Small bank performance evaluation. (a) Small bank performance evaluation In general. (2) Small Bank Lending Test. (i) The bank's loan-to-deposit ratio, adjusted for seasonal variation, and, as appropriate, other retail and community development lending-related activities, such as loan originations for sale to the secondary markets, community development loans, or community development investments; (ii) The percentage of loans and, as appropriate, other retail and community development lending-related activities located in the bank's facility-based assessment areas; (iii) The bank's record of lending to and, as appropriate, engaging in other retail and community development lending-related activities for borrowers of different income levels and businesses and farms of different sizes; (iv) The geographic distribution of the bank's loans; and (v) The bank's record of taking action, if warranted, in response to written complaints about its performance in helping to meet credit needs in its facility-based assessment areas. (b) Additional consideration Small banks evaluated pursuant to the Small Bank Lending Test. (i) Making community development investments; (ii) Providing community development services; and (iii) Providing branches and other services, digital delivery systems and other delivery systems, and deposit products responsive to the needs of low- and moderate-income individuals, families, or households, residents of low- and moderate-income census tracts, small businesses, and small farms. (2) Small banks that opt to be evaluated pursuant to the Retail Lending Test in § 345.22. (3) Additional consideration for activities with MDIs, WDIs, and LICUs, and for providing low-cost education loans. (c) Small bank performance conclusions and ratings Conclusions. (2) Ratings. § 345.30 Intermediate bank performance evaluation. (a) Intermediate bank performance evaluation In general. (2) Intermediate Bank Community Development Test. (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 provides community development services; and (D) The bank's responsiveness through such community development loans, community development investments, and community development services to community development needs. The FDIC's evaluation of the responsiveness of the bank's activities is informed by information provided by the bank, and may be informed by the impact and responsiveness review factors described in § 345.15(b). (ii) The FDIC considers an intermediate bank'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 facility-based assessment areas. The extent of the FDIC's consideration of community development loans, community development investments, and community development services outside of the bank's facility-based assessment areas will depend on the adequacy of the bank's responsiveness to community development needs and opportunities within the bank's facility-based assessment areas and applicable performance context information. (b) Additional consideration Intermediate banks evaluated pursuant to the Intermediate Bank Community Development Test. (2) Intermediate banks evaluated pursuant to the Community Development Financing Test. (3) Additional consideration for low-cost education loans. (c) Intermediate bank performance conclusions and ratings Conclusions. (2) Ratings. § 345.31 Effect of CRA performance on applications. (a) CRA performance. (1) The establishment of a domestic branch or other facility with the ability to accept deposits; (2) The relocation of the bank's main office or a branch; (3) The merger, consolidation, acquisition of assets, or assumption of liabilities; and (4) Deposit insurance for a newly chartered financial institution. (b) New financial institutions. (c) Interested parties. (d) Denial or conditional approval of application. Subpart D—Records, Reporting, Disclosure, and Public Engagement Requirements § 345.42 Data collection, reporting, and disclosure. Link to an amendment published at 89 FR 7206, Feb. 1, 2024. (a) Information required to be collected and maintained Small business loans and small farm loans data. (i) A unique number or alpha-numeric symbol that can be used to identify the relevant loan file; (ii) An indicator for the loan type as reported on the bank's Call Report or Report of Assets and Liabilities of U.S. Branches and Agencies of Foreign Banks, as applicable. (iii) The date of the loan origination or purchase; (iv) The loan amount at origination or purchase; (v) The loan location, including State, county, and census tract; (vi) An indicator for whether the loan was originated or purchased by the bank; (vii) An indicator for whether the loan was to a business or farm with gross annual revenues of $250,000 or less; (viii) An indicator for whether the loan was to a business or farm with gross annual revenues greater than $250,000 but less than or equal to $1 million; (ix) An indicator for whether the loan was to a business or farm with gross annual revenues greater than $1 million; and (x) An indicator for whether the loan was to a business or farm for which gross annual revenues are not known by the bank. (2) Consumer loans data automobile loans Large banks. (ii) Intermediate or small banks. (iii) Data collected and maintained. (A) A unique number or alpha-numeric symbol that can be used to identify the relevant loan file; (B) The date of the loan origination or purchase; (C) The loan amount at origination or purchase; (D) The loan location, including State, county, and census tract; (E) An indicator for whether the loan was originated or purchased by the bank; and (F) The gross annual income relied on in making the credit decision. (3) Home mortgage loans. (ii) If a large bank is not subject to reporting under 12 CFR part 1003 due to the location of its branches, but would otherwise meet the Home Mortgage Disclosure Act (HMDA) size and lending activity requirements pursuant to 12 CFR part 1003, the bank must collect and maintain, in electronic form, as prescribed by the FDIC, until the completion of the bank's next CRA examination in which the data are evaluated, the following data, for each closed-end home mortgage loan, excluding multifamily loans, originated or purchased during the evaluation period: (A) A unique number or alpha-numeric symbol that can be used to identify the relevant loan file; (B) The date of the loan origination or purchase; (C) The loan amount at origination or purchase; (D) The location of each home mortgage loan origination or purchase, including State, county, and census tract; (E) The gross annual income relied on in making the credit decision; and (F) An indicator for whether the loan was originated or purchased by the bank. (4) Retail banking services and retail banking products data Branches and remote service facilities. (A) Location of branches, main offices described in § 345.23(a)(2), and remote service facilities. Location information must include: ( 1 ( 2 ( 3 ( 4 ( 5 ( 6 (B) An indicator for whether each branch is full-service or limited-service, and for each remote service facility whether it is deposit-taking, cash-advancing, or both; (C) Locations and dates of branch, main office described in § 345.23(a)(2), and remote service facility openings and closings, as applicable; (D) Hours of operation of each branch, main office described in § 345.23(a)(2), and remote service facility, as applicable; and (E) Services offered at each branch or main office described in § 345.23(a)(2) that are responsive to low- and moderate-income individuals, families, or households and low- and moderate-income census tracts. (ii) Digital delivery systems and other delivery systems data In general. (B) Required data. ( 1 ( 2 ( i ( ii (C) Optional data. (iii) Data for deposit products responsive to the needs of low- and moderate-income individuals, families, or households In general. (B) Required data. ( 1 ( 2 1 (C) Optional data. (5) Community development loans and community development investments data. (B) An intermediate bank that opts to be evaluated under the Community Development Financing Test in § 345.24 must collect and maintain in the format used by the bank in the normal course of business, until the completion of the bank's next CRA examination in which the data are evaluated, the data listed in paragraph (a)(5)(ii) of this section for community development loans and community development investments originated, purchased, refinanced, renewed, or modified by the bank during the evaluation period. (ii) Pursuant to paragraphs (a)(5)(i)(A) and (B) of this section, a bank must collect and maintain, on an annual basis, the following data for community development loans and community development investments: (A) General information on the loan or investment: ( 1 ( 2 ( 3 ( 4 ( i ( ii ( iii ( iv 4 ii (B) Community development loan or community development investment information: ( 1 ( 2 ( 3 ( 4 e.g., (C) Indicators of the impact and responsiveness, including whether the community development loan or community development investment: ( 1 ( 2 ( 3 ( 4 ( 5 ( 6 ( 7 ( 8 ( 9 ( 10 ( 11 ( 12 (D) Specific location information, if applicable: ( 1 ( 2 ( 3 ( 4 ( 5 ( 6 (E) Allocation of the dollar amount of the community development loan or community development investment to geographic areas served by the loan or investment: ( 1 ( 2 (F) Other information relevant to determining that the community development loan or community development investment meets the standards pursuant to § 345.13. (6) Community development services data. (i) Community development services information as follows: (A) Date of service; (B) Number of board member or employee service hours; (C) Name of organization or entity; (D) The type of community development described in § 345.13(b) through (l); (E) Capacity in which a bank's or its affiliate's board member or employee serves ( e.g., (F) Indicators of the impact and responsiveness, including whether the community development service: ( 1 ( 2 ( 3 ( 4 ( 5 ( 6 ( 7 ( 8 ( 9 ( 10 (ii) Location information as follows: (A) Location list. (B) Geographic-level. (7) Deposits data. (b) Information required to be reported Small business loan and small farm loan data. (i) With an amount at origination of $100,000 or less; (ii) With an amount at origination of greater than $100,000 but less than or equal to $250,000; (iii) With an amount at origination of greater than $250,000; (iv) To businesses and farms with gross annual revenues of $250,000 or less (using the revenues relied on in making the credit decision); (v) To businesses and farms with gross annual revenues greater than $250,000 but less than or equal to $1 million (using the revenues relied on in making the credit decision); (vi) To businesses and farms with gross annual revenues greater than $1 million; and (vii) To businesses and farms for which gross annual revenues are not known by the bank. (2) Community development loans and community development investments data. 1 1 5 (3) Deposits data. (ii) A bank that reports deposits data pursuant to paragraph (b)(3)(i) of this section for which a deposit location is not available must report these deposits at the nationwide area. (c) Data on operating subsidiaries. (d) Data on other affiliates. (e) Data on community development loans and community development investments by a consortium or a third party. (f) Assessment area data Facility-based assessment areas. (2) Retail lending assessment areas. (g) CRA Disclosure Statement. (1) For each county with a population of 500,000 persons or fewer in which the bank reported a small business loan or a small farm loan: (i) The number and dollar volume of small business loans and small farm loans reported as originated or purchased located in low-, moderate-, middle-, and upper-income census tracts; (ii) A list grouping each census tract according to whether the census tract is low-, moderate-, middle-, or upper-income; (iii) A list showing each census tract in which the bank reported a small business loan or a small farm loan; (iv) The number and dollar volume of small business loans and small farm loans to businesses and farms with gross annual revenues of $250,000 or less; and (v) The number and dollar volume of small business loans and small farm loans to businesses and farms with gross annual revenues greater than $250,000 but less than or equal to $1 million; (2) For each county with a population in excess of 500,000 persons in which the bank reported a small business loan or a small farm loan: (i) The number and dollar volume of small business loans and small farm loans reported as originated or purchased located in census tracts with median income relative to the area median income of less than 10 percent, equal to or greater than 10 percent but less than 20 percent, equal to or greater than 20 percent but less than 30 percent, equal to or greater than 30 percent but less than 40 percent, equal to or greater than 40 percent but less than 50 percent, equal to or greater than 50 percent but less than 60 percent, equal to or greater than 60 percent but less than 70 percent, equal to or greater than 70 percent but less than 80 percent, equal to or greater than 80 percent but less than 90 percent, equal to or greater than 90 percent but less than 100 percent, equal to or greater than 100 percent but less than 110 percent, equal to or greater than 110 percent but less than 120 percent, and equal to or greater than 120 percent; (ii) A list grouping each census tract in the county, facility-based assessment area, or retail lending assessment area according to whether the median income in the census tract relative to the area median income is less than 10 percent, equal to or greater than 10 percent but less than 20 percent, equal to or greater than 20 percent but less than 30 percent, equal to or greater than 30 percent but less than 40 percent, equal to or greater than 40 percent but less than 50 percent, equal to or greater than 50 percent but less than 60 percent, equal to or greater than 60 percent but less than 70 percent, equal to or greater than 70 percent but less than 80 percent, equal to or greater than 80 percent but less than 90 percent, equal to or greater than 90 percent but less than 100 percent, equal to or greater than 100 percent but less than 110 percent, equal to or greater than 110 percent but less than 120 percent, and equal to or greater than 120 percent; and (iii) A list showing each census tract in which the bank reported a small business loan or a small farm loan; (3) The number and dollar volume of small business loans and small farm loans located inside each facility-based assessment area and retail lending assessment area reported by the bank and the number and dollar volume of small business loans and small farm loans located outside of the facility-based assessment areas and retail lending assessment areas reported by the bank; and (4) The number and dollar volume of community development loans and community development investments reported as originated or purchased inside each facility-based assessment area, each State in which the bank has a branch, each multistate MSA in which a bank has a branch in two or more States of the multistate MSA, and nationwide area outside of these States and multistate MSAs. (h) Aggregate disclosure statements. (i) Availability of disclosure statements. https://www.ffiec.gov (j) HMDA data disclosure In general. (2) Data to be published on the FDIC's website. (i) The number and percentage of originations and applications of the large bank's home mortgage loans by borrower or applicant income level, race, and ethnicity; (ii) The number and percentage of originations and applications of aggregate mortgage lending of all lenders reporting HMDA data in the facility-based assessment area and as applicable, the retail lending assessment area; and (iii) Demographic data of the geographic area. (3) Announcement of data publication. (4) Effect on CRA conclusions and ratings. § 345.43 Content and availability of public file. Link to an amendment published at 89 FR 7207, Feb. 1, 2024. (a) Information available to the public. (1) All written comments received from the public for the current year (updated on a quarterly basis for the prior quarter by March 31, June 30, September 30, and December 31) and each of the prior two calendar years that specifically relate to the bank's performance in helping to meet community credit needs, and any response to the comments by the bank, if neither the comments nor the responses contain statements that reflect adversely on the good name or reputation of any persons other than the bank or publication of which would violate specific provisions of law; (2) A copy of the public section of the bank's most recent CRA performance evaluation prepared by the FDIC. The bank must include this copy in the public file within 30 business days after its receipt from the FDIC; (3) A list of the bank's branches, their street addresses, and census tracts; (4) A list of branches opened or closed by the bank during the current year (updated on a quarterly basis for the prior quarter by March 31, June 30, September 30, and December 31) and each of the prior two calendar years, their street addresses, and census tracts; (5) A list of retail banking services (including hours of operation, available loan and deposit products, and transaction fees) generally offered at the bank's branches and descriptions of material differences in the availability or cost of services at particular branches, if any. A bank may elect to include information regarding the availability of other systems for delivering retail banking services (for example, mobile or online banking, loan production offices, and bank-at-work or mobile branch programs); (6) A map of each facility-based assessment area and, as applicable, each retail lending assessment area showing the boundaries of the area and identifying the census tracts contained in the area, either on the map or in a separate list; and (7) Any other information the bank chooses. (b) Additional information available to the public Banks subject to data reporting requirements pursuant to § 345.42. https://www.ffiec.gov (2) Banks required to report HMDA data HMDA Disclosure Statement. https://www.consumerfinance.gov/hmda (ii) Availability of bank HMDA data. (3) Small banks. (4) Banks with strategic plans. (5) Banks with less than “Satisfactory” ratings. (c) Location of public information. (1) For banks that maintain a website, all information required for the bank's public file under this section must be maintained on the bank's website. (2) For banks that do not maintain a website: (i) All the information required for the bank's public file must be maintained at the main office and, if an interstate bank, at one branch office in each State; and (ii) At each branch, the following must be maintained: (A) A copy of the public section of the bank's most recent CRA performance evaluation and a list of services provided by the branch; and (B) Within five calendar days of the request, all the information that the bank is required to maintain under this section in the public file relating to the facility-based assessment area in which the branch is located. (d) Copies. (e) Timing requirements. § 345.44 Public notice by banks. A bank must provide in the public area of its main office and each of its branches the appropriate public notice set forth in appendix F to this part. Only a branch of a bank having more than one facility-based assessment area must include the bracketed material in the notice for branch offices. Only a bank that is an affiliate of a holding company must include the next to the last sentence of the notices. A bank must include the last sentence of the notices only if it is an affiliate of a holding company that is not prevented by statute from acquiring additional depository institutions. § 345.45 Publication of planned examination schedule. The FDIC publishes on its public website, at least 30 days in advance of the beginning of each calendar quarter, a list of banks scheduled for CRA examinations for the next two quarters. § 345.46 Public engagement. (a) In general. (b) Submission of public comments. [email protected] https://www.fdic.gov/resources/bankers/community-reinvestment-act/cra-regional-contacts-list.html (c) Timing of public comments. (d) Distribution of public comments. Subpart E—Transition Rules § 345.51 Applicability dates and transition provisions. (a) Applicability dates In general. (2) Specific applicability dates. (i) On January 1, 2026, §§ 345.12 through 345.30, 345.42(a), 345.43, and 345.44; the data collection and maintenance requirements in § 345.42(c) through (f); and appendices A through F to this part become applicable. (ii) On January 1, 2027, § 345.42(b) and (g) through (i) and the reporting requirements in § 345.42(c) through (f) become applicable. (iii) Rules during transition period. (b) HMDA data disclosures. (c) Consideration of bank activities. (2) Notwithstanding paragraph (c)(1) of this section, in assessing a bank's CRA performance, the FDIC will consider any loan or investment that was eligible for CRA consideration at the time that the bank entered into a legally binding commitment to make the loan or investment. (d) Strategic plans New and replaced strategic plans. (2) Existing strategic plans. (e) First evaluation under this part on or after February 1, 2024. [89 FR 7205, Feb. 1, 2024; 89 FR 22069, Mar. 29, 2024] Appendix A to Part 345—Calculations for the Retail Lending Test Link to an amendment published at 89 FR 7207, Feb. 1, 2024. This appendix, based on requirements described in §§ 345.22 and 345.28, includes the following sections: I. Retail Lending Volume Screen II. Retail Lending Test Distribution Metrics—Scope of Evaluation III. Geographic Distribution Metrics and Benchmarks IV. Borrower Distribution Metrics and Benchmarks V. Supporting Conclusions for Major Product Lines Other Than Automobile Lending VI. Supporting Conclusions for Automobile Lending VII. Retail Lending Test Conclusions—All Major Product Lines VIII. Retail Lending Test Weighting and Conclusions for States, Multistate MSAs, and the Institution I. Retail Lending Volume Screen The FDIC calculates the Bank Volume Metric and the Market Volume Benchmark for a facility-based assessment area and determines whether the bank has met or surpassed the Retail Lending Volume Threshold in that facility-based assessment area. a. Bank Volume Metric. 1. Summing, over the years in the evaluation period, the bank's annual dollar volume of loans included in the Bank Volume Metric ( i.e., volume metric loans 2. Summing, over the years in the evaluation period, the bank's annual dollar volume of deposits in the facility-based assessment area. For a bank that reports deposits data pursuant to § 345.42(b)(3), the bank's annual dollar volume of deposits in a facility-based assessment area is the total of annual average daily balances of deposits reported by the bank in counties in the facility-based assessment area for that year. For a bank that does not report deposits data pursuant to § 345.42(b)(3), the bank's annual dollar volume of deposits in a facility-based assessment area is the total of deposits assigned to facilities reported by the bank in the facility-based assessment area in the FDIC's Summary of Deposits for that year. 3. Dividing the result of paragraph I.a.1 of this appendix by the result of paragraph I.a.2 of this appendix. Example A-1: volume metric loans volume metric loans b. Market Volume Benchmark. benchmark depository institution 1. Summing, over the years in the evaluation period, the annual dollar volume of volume benchmark loans. The annual dollar volume of volume benchmark loans is the total dollar volume of all home mortgage loans, multifamily loans, small business loans, and small farm loans in the facility-based assessment area in that year that are reported loans originated by benchmark depository institutions. 2. Summing, over the years in the evaluation period, the annual dollar volume of deposits for benchmark depository institutions in the facility-based assessment area. The annual dollar volume of deposits for benchmark depository institutions in the facility-based assessment area is the sum across benchmark depository institutions of: (i) for a benchmark depository institution that reports data pursuant to § 345.42(b)(3) or 12 CFR 25.42(b)(3) or 228.42(b)(3), the total of annual average daily balances of deposits reported by that depository institution in counties in the facility-based assessment area for that year; and (ii) for a benchmark depository institution that does not report data pursuant to § 345.42(b)(3) or 12 CFR 25.42(b)(3) or 228.42(b)(3), the total of deposits assigned to facilities reported by that depository institution in counties in the facility-based assessment area in the FDIC's Summary of Deposits for that year. 3. Dividing the result of paragraph I.b.1 of this appendix by the result of paragraph I.b.2 of this appendix. Example A-2: c. Retail Lending Volume Threshold. Example A-3: Bank Volume Metric (20%) > Retail Lending Volume Threshold [(40%) × 0.3 = 12%] II. Retail Lending Distribution Metrics—Scope Of Evaluation a. Retail Lending Test Areas evaluated. 1. Large banks exempt from evaluation in retail lending assessment areas. i. The sum, over the prior two calendar years, of the large bank's home mortgage loans, multifamily loans, small business loans, small farm loans, and automobile loans if automobile loans are a product line for the large bank, originated or purchased in its facility-based assessment areas; divided by ii. The sum, over the prior two calendar years, of the large bank's home mortgage loans, multifamily loans, small business loans, small farm loans, and automobile loans if automobile loans are a product line for the large bank, originated or purchased overall. Example A-4: 2. Small banks and intermediate banks evaluated in outside retail lending areas. i. The bank opts to have its major product lines evaluated in its outside retail lending area; or ii. The following ratio exceeds 50 percent, based on the combination of loan dollars and loan count as defined in § 345.12: A. The sum, over the prior two calendar years, of the bank's home mortgage loans, multifamily loans, small business loans, small farm loans, and automobile loans if automobile loans are a product line for the bank, originated or purchased outside of its facility-based assessment areas; divided by B. The sum, over the prior two calendar years, of the bank's home mortgage loans, multifamily loans, small business loans, small farm loans, and automobile loans if automobile loans are a product line for the bank, originated or purchased overall. b. Product lines and major product lines. 1. Major product line standard for facility-based assessment areas and outside retail lending areas. i. The sum, over the years of the evaluation period, of the bank's loans in the product line originated or purchased in the facility-based assessment area or outside retail lending area; divided by ii. The sum, over the years of the evaluation period, of the bank's loans in all product lines originated or purchased in the facility-based assessment area or outside retail lending area. iii. If a bank has not collected, maintained, or reported loan data on a product line in a facility-based assessment area or outside retail lending area for one or more years of an evaluation period, the product line is a major product line if the FDIC determines that the product line is material to the bank's business in the facility-based assessment area or outside retail lending area. 2. Major product line standard for retail lending assessment areas. (i) Closed-end home mortgage loans are a major product line in any calendar year in the evaluation period in which the bank delineates a retail lending assessment area based on its closed-end home mortgage loans as determined by the standard in § 345.17(c)(1); and (ii) Small business loans are a major product line in any calendar year in the evaluation period in which the bank delineates a retail lending assessment area based on its small business loans as determined by the standard in § 345.17(c)(2). 3. Banks for which automobile loans are a product line. i. If a bank's automobile loans are a product line (either because the bank is a majority automobile lender or opts to have its automobile loans evaluated pursuant to § 345.22), automobile loans are a product line for the bank for the entire evaluation period. ii. A bank is a majority automobile lender if the following ratio, calculated at the institution level, exceeds 50 percent, based on the combination of loan dollars and loan count as defined in § 345.12: A. The sum, over the two calendar years preceding the first year of the evaluation period, of the bank's automobile loans originated or purchased overall; divided by B. The sum, over the two calendar years preceding the first year of the evaluation period, of the bank's automobile loans, home mortgage loans, multifamily loans, small business loans, and small farm loans originated or purchased overall. III. Geographic Distribution Metrics and Benchmarks The FDIC calculates the Geographic Bank Metric, the Geographic Market Benchmark, and the Geographic Community Benchmark for low-income census tracts and for moderate-income census tracts, respectively, as set forth in this section. For each facility-based assessment area, retail lending assessment area, and component geographic area of the bank's outside retail lending area, the FDIC includes either low-income census tracts or moderate-income census tracts ( i.e., designated census tracts a. Calculation of Geographic Bank Metric. 1. Summing, over the years in the evaluation period, the bank's annual number of originated and purchased loans in the major product line in designated census tracts in the Retail Lending Test Area. 2. Summing, over the years in the evaluation period, the bank's annual number of originated and purchased loans in the major product line in the Retail Lending Test Area. 3. Dividing the result of paragraph III.a.1 of this appendix by the result of paragraph III.a.2 of this appendix. Example A-5: i.e., In the moderate-income census tracts within FBAA-1, the bank originated and purchased 30 small farm loans (year 1), 20 small farm loans (year 2), and 10 small farm loans (year 3) (a total of 60 small farm loans). In FBAA-1, the Geographic Bank Metric for small farm loans in moderate-income census tracts would be 60 divided by 250, or 0.24 (equivalently, 24 percent). b. Calculation of Geographic Market Benchmarks for facility-based assessment areas and retail lending assessment areas. 1. Summing, over the years in the evaluation period, the annual number of reported loans in the major product line in designated census tracts in the facility-based assessment area or retail lending assessment area originated by all lenders. 2. Summing, over the years in the evaluation period, the annual number of reported loans in the major product line in the facility-based assessment area or retail lending assessment area originated by all lenders. 3. Dividing the result of paragraph III.b.1 of this appendix by the result of paragraph III.b.2 of this appendix. Example A-6: Lenders that report small farm loan data originated 100 small farm loans (year 1), 100 small farm loans (year 2), and 100 small farm loans (year 3) in moderate-income census tracts within FBAA-1. The sum of the annual numbers of originated small farm loans in moderate-income census tracts within FBAA-1 is therefore 300. The Geographic Market Benchmark for small farm loans in moderate-income census tracts within FBAA-1 would be 300 divided by 1,000, or 0.3 (equivalently, 30 percent). c. Calculation of Geographic Community Benchmarks for facility-based assessment areas and retail lending assessment areas. 1. For closed-end home mortgage loans, the FDIC calculates a Geographic Community Benchmark for low-income census tracts by: i. Summing, over the years in the evaluation period, the annual number of owner-occupied housing units in low-income census tracts in the facility-based assessment area or retail lending assessment area. ii. Summing, over the years in the evaluation period, the annual number of owner-occupied housing units in the facility-based assessment area or retail lending assessment area. iii. Dividing the result of paragraph III.c.1.i of this appendix by the result of paragraph III.c.1.ii of this appendix. 2. For closed-end home mortgage loans, the FDIC calculates a Geographic Community Benchmark for moderate-income census tracts by: i. Summing, over the years in the evaluation period, the annual number of owner-occupied housing units in moderate-income census tracts in the facility-based assessment area or retail lending assessment area. ii. Summing, over the years in the evaluation period, the annual number of owner-occupied housing units in the facility-based assessment area or retail lending assessment area. iii. Dividing the result of paragraph III.c.2.i of this appendix by the result of paragraph III.c.2.ii of this appendix. 3. For small business loans, the FDIC calculates a Geographic Community Benchmark for low-income census tracts by: i. Summing, over the years in the evaluation period, the annual number of non-farm businesses in low-income census tracts in the facility-based assessment area or retail lending assessment area. ii. Summing, over the years in the evaluation period, the annual number of non-farm businesses in the facility-based assessment area or retail lending assessment area. iii. Dividing the result of paragraph III.c.3.i of this appendix by the result of paragraph III.c.3.ii of this appendix. 4. For small business loans, the FDIC calculates a Geographic Community Benchmark for moderate-income census tracts by: i. Summing, over the years in the evaluation period, the annual number of non-farm businesses in moderate-income census tracts in the facility-based assessment area or retail lending assessment area. ii. Summing, over the years in the evaluation period, the annual number of non-farm businesses in the facility-based assessment area or retail lending assessment area. iii. Dividing the result of paragraph III.c.4.i of this appendix by the result of paragraph III.c.4.ii of this appendix. 5. For small farm loans, the FDIC calculates a Geographic Community Benchmark for low-income census tracts by: i. Summing, over the years in the evaluation period, the annual number of farms in low-income census tracts in the facility-based assessment area. ii. Summing, over the years in the evaluation period, the annual number of farms in the facility-based assessment area. iii. Dividing the result of paragraph III.c.5.i of this appendix by the result of paragraph III.c.5.ii of this appendix. 6. For small farm loans, the FDIC calculates a Geographic Community Benchmark for moderate-income census tracts by: i. Summing, over the years in the evaluation period, the annual number of farms in moderate-income census tracts in the facility-based assessment area. ii. Summing, over the years in the evaluation period, the annual number of farms in the facility-based assessment area. iii. Dividing the result of paragraph III.c.6.i of this appendix by the result of paragraph III.c.6.ii of this appendix. 7. For automobile loans, the FDIC calculates a Geographic Community Benchmark for low-income census tracts by: i. Summing, over the years in the evaluation period, the annual number of households in low-income census tracts in the facility-based assessment area. ii. Summing, over the years in the evaluation period, the annual number of households in the facility-based assessment area. iii. Dividing the result of paragraph III.c.7.i of this appendix by the result of paragraph III.c.7.ii of this appendix. 8. For automobile loans, the FDIC calculates a Geographic Community Benchmark for moderate-income census tracts by: i. Summing, over the years in the evaluation period, the annual number of households in moderate-income census tracts in the facility-based assessment area. ii. Summing, over the years in the evaluation period, the annual number of households in the facility-based assessment area. iii. Dividing the result of paragraph III.c.8.i of this appendix by the result of paragraph III.c.8.ii of this appendix. Example A-7: In moderate-income census tracts within FBAA-1, there were 400 non-farm businesses (year 1), 300 non-farm businesses (year 2), and 300 non-farm businesses (year 3) (a total of 1,000 non-farm businesses). The Geographic Community Benchmark for small business loans in moderate-income census tracts within FBAA-1 would be 1,000 divided by 4,000, or 0.25 (equivalently, 25 percent). d. Calculation of Geographic Market Benchmarks for the outside retail lending area. 1. Calculating a benchmark for each category of designated census tracts and each major product line within each component geographic area as described in § 345.18(b) using the formula for the Geographic Market Benchmark described in paragraph III.b of this appendix with the component geographic area in place of the facility-based assessment area or retail lending assessment area, as applicable. 2. Calculating the weighting for each component geographic area and major product line as the percentage of the bank's loans in the major product line originated or purchased in the outside retail lending area that are within the component geographic area, based on loan count. 3. Calculating the weighted average benchmark for the outside retail lending area using the component geographic area benchmarks in paragraph III.d.1 of this appendix and associated weightings in paragraph III.d.2 of this appendix. e. Calculation of Geographic Community Benchmarks for the outside retail lending area. 1. Calculating a benchmark for each category of designated census tracts and each major product line within each component geographic area as described in § 345.18(b) using the formula for the Geographic Community Benchmark described in paragraph III.c of this appendix with the component geographic area in place of the facility-based assessment area or retail lending assessment area, as applicable. 2. Calculating the weighting for each component geographic area and major product line as the percentage of the bank's loans in the major product line originated or purchased in the outside retail lending area that are within the component geographic area, based on loan count. 3. Calculating the weighted average benchmark for the outside retail lending area using the component geographic area benchmarks in paragraph III.e.1 of this appendix and associated weightings in paragraph III.e.2 of this appendix. IV. Borrower Distribution Metrics and Benchmarks The FDIC calculates the Borrower Bank Metric, the Borrower Market Benchmark, and the Borrower Community Benchmark for each category of borrowers ( i.e., designated borrowers For closed-end home mortgage loans, the FDIC calculates these metrics and benchmarks for each of the following designated borrowers: (i) low-income borrowers; and (ii) moderate-income borrowers. For small business loans, the FDIC calculates these metrics and benchmarks for each of the following designated borrowers: (i) businesses with gross annual revenues of $250,000 or less; and (ii) businesses with gross annual revenues greater than $250,000 but less than or equal to $1 million. For small farm loans, the FDIC calculates these metrics and benchmarks for each of the following designated borrowers: (i) farms with gross annual revenues of $250,000 or less; and (ii) farms with gross annual revenues greater than $250,000 but less than or equal to $1 million. For automobile loans, the FDIC calculates these metrics and benchmarks for each of the following designated borrowers: (i) low-income borrowers; and (ii) moderate income borrowers. To evaluate small banks and intermediate banks without data collection, maintenance and reporting requirements, the FDIC will use data collected by the bank in the ordinary course of business or through sampling of bank loan data. a. Calculation of Borrower Bank Metric. 1. Summing, over the years in the evaluation period, the bank's annual number of originated and purchased loans in the major product line to designated borrowers in the Retail Lending Test Area. 2. Summing, over the years in the evaluation period, the bank's annual number of originated and purchased loans in the major product line in the Retail Lending Test Area. 3. Dividing the result of paragraph IV.a.1 of this appendix by the result of paragraph IV.a.2 of this appendix. Example A-8: i.e., In FBAA-1, the bank also originated and purchased 12 closed-end home mortgage loans to moderate-income borrowers (year 1), 5 closed-end home mortgage loans to moderate-income borrowers (year 2), and 13 closed-end home mortgage loans to moderate-income borrowers (year 3) (a total of 30 closed-end home mortgage loans to moderate-income borrowers). In FBAA-1, the Borrower Bank Metric for closed-end home mortgage loans to moderate-income borrowers would be 30 divided by 100, or 0.3 (equivalently, 30 percent). b. Calculation of Borrower Market Benchmarks for facility-based assessment areas and retail lending assessment areas. 1. Summing, over the years in the evaluation period, the annual number of reported loans in the major product line to designated borrowers in the facility-based assessment area or retail lending assessment area originated by all lenders. 2. Summing, over the years in the evaluation period, the annual number of reported loans in the major product line in the facility-based assessment area or retail lending assessment area originated by all lenders. 3. Dividing the result of paragraph IV.b.1 of this appendix by the result of paragraph IV.b.2 of this appendix. Example A-9: Lenders that report closed-end home mortgage loans originated 100 loans (year 1), 75 loans (year 2), and 25 loans (year 3) to moderate-income borrowers. The sum of the annual numbers of originated closed-end home mortgage loans to moderate-income borrowers within FBAA-1 is therefore 200. The Borrower Market Benchmark for closed-end home mortgage loans to moderate-income borrowers in FBAA-1 would be 200 divided by 1,000, or 0.2 (equivalently, 20 percent). c. Calculation of Borrower Community Benchmarks for facility-based assessment areas and retail lending assessment areas. 1. For closed-end home mortgage loans, the FDIC calculates a Borrower Community Benchmark for low-income borrowers by: i. Summing, over the years in the evaluation period, the annual number of low-income families in the facility-based assessment area or retail lending assessment area. ii. Summing, over the years in the evaluation period, the annual number of families in the facility-based assessment area or retail lending assessment area. iii. Dividing the result of paragraph IV.c.1.i of this appendix by the result of paragraph IV.c.1.ii of this appendix. 2. For closed-end home mortgage loans, the FDIC calculates a Borrower Community Benchmark for moderate-income borrowers by: i. Summing, over the years in the evaluation period, the annual number of moderate-income families in the facility-based assessment area or retail lending assessment area. ii. Summing, over the years in the evaluation period, the annual number of families in the facility-based assessment area or retail lending assessment area. iii. Dividing the result of paragraph IV.c.2.i of this appendix by the result of paragraph IV.c.2.ii of this appendix. 3. For small business loans, the FDIC calculates a Borrower Community Benchmark for non-farm businesses with gross annual revenues of $250,000 or less by: i. Summing, over the years in the evaluation period, the annual number of non-farm businesses with gross annual revenues of $250,000 or less in the facility-based assessment area or retail lending assessment area. ii. Summing, over the years in the evaluation period, the annual number of non-farm businesses in the facility-based assessment area or retail lending assessment area. iii. Dividing the result of paragraph IV.c.3.i of this appendix by the result of paragraph IV.c.3.ii of this appendix. 4. For small business loans, the FDIC calculates a Borrower Community Benchmark for non-farm businesses with gross annual revenues greater than $250,000 but less than or equal to $1 million by: i. Summing, over the years in the evaluation period, the annual number of non-farm businesses with gross annual revenues greater than $250,000 but less than or equal to $1 million in the facility-based assessment area or retail lending assessment area. ii. Summing, over the years in the evaluation period, the annual number of non-farm businesses in the facility-based assessment area or retail lending assessment area. iii. Dividing the result of paragraph IV.c.4.i of this appendix by the result of paragraph IV.c.1.ii of this appendix. 5. For small farm loans, the FDIC calculates a Borrower Community Benchmark for farms with gross annual revenues of $250,000 or less by: i. Summing, over the years in the evaluation period, the annual number of farms with gross annual revenues of $250,000 or less in the facility-based assessment area. ii. Summing, over the years in the evaluation period, the annual number of farms in the facility-based assessment area. iii. Dividing the result of paragraph IV.c.5.i of this appendix by the result of paragraph IV.c.5.ii of this appendix. 6. For small farm loans, the FDIC calculates a Borrower Community Benchmark for farms with gross annual revenues greater than $250,000 but less than or equal to $1 million: i. Summing, over the years in the evaluation period, the annual number of farms with gross annual revenues greater than $250,000 but less than or equal to $1 million in the facility-based assessment area. ii. Summing, over the years in the evaluation period, the annual number of farms in the facility-based assessment area. iii. Dividing the result of paragraph IV.c.6.i of this appendix by the result of paragraph IV.c.6.ii of this appendix. 7. For automobile loans, the FDIC calculates a Borrower Community Benchmark for low-income borrowers by: i. Summing, over the years in the evaluation period, the annual number of low-income households in the facility-based assessment area. ii. Summing, over the years in the evaluation period, the annual number of households in the facility-based assessment area. iii. Dividing the result of paragraph IV.c.7.i of this appendix by the result of paragraph IV.c.7.ii of this appendix. 8. For automobile loans, the FDIC calculates a Borrower Community Benchmark for moderate-income borrowers by: i. Summing, over the years in the evaluation period, the annual number of moderate-income households in the facility-based assessment area. ii. Summing, over the years in the evaluation period, the annual number of households in the facility-based assessment area. iii. Dividing the result of paragraph IV.c.8.i of this appendix by the result of paragraph IV.c.8.ii of this appendix. Example A-10: There were 350 moderate-income families (year 1), 400 moderate-income families (year 2), and 450 moderate-income families (year 3) (a total of 1,200 moderate-income families). The Borrower Community Benchmark for closed-end home mortgage loans to moderate-income families in FBAA-1 would be 1,200 divided by 4,000, or 0.3 (equivalently, 30 percent). d. Calculation of Borrower Market Benchmark for the outside retail lending area. 1. Calculating a benchmark for each category of designated borrowers and each major product line within each component geographic area as described in § 345.18(b) using the formula for the Borrower Market Benchmark described in section IV.b of this appendix with the component geographic area in place of the facility-based assessment area or retail lending assessment area, as applicable. 2. Calculating the weighting for each component geographic area and major product line as the percentage of the bank's loans in the major product line originated or purchased in the outside retail lending area that are within the component geographic area, based on loan count. 3. Calculating the weighted average benchmark for the outside retail lending area using the component geographic area benchmarks in paragraph IV.d.1 of this appendix and associated weightings in paragraph IV.d.2 of this appendix. e. Calculation of Borrower Community Benchmarks for the outside retail lending area. 1. Calculating the benchmark for each category of designated borrowers and each major product line within each component geographic area as described in § 345.18(b) using the formula for the Borrower Community Benchmark described in paragraph IV.c of this appendix with the component geographic area in place of the facility-based assessment area or retail lending assessment area, as applicable. 2. Calculating the weighting for each component geographic area and major product line as the percentage of the bank's loans in the major product line originated or purchased in the outside retail lending area that are within the component geographic area, based on loan count. 3. Calculating the weighted average benchmark for the outside retail lending area using the component geographic area benchmarks in paragraph IV.e.1 of this appendix and associated weightings calculated in paragraph IV.e.2 of this appendix. V. Supporting Conclusions for Major Product Lines Other Than Automobile Lending The FDIC evaluates a bank's Retail Lending Test performance in each Retail Lending Test Area by comparing the bank's distribution metrics to sets of performance ranges determined by, as applicable, the market and community benchmarks, as described in this section. a. Supporting conclusions for categories of designated census tracts and designated borrowers. Table 1 to Appendix A—Retail Lending Test Categories of Designated Census Tracts and Designated Borrowers Major product line Designated census tracts Designated borrowers Closed-End Home Mortgage Loans Low-Income Census Tracts Low-Income Borrowers. Moderate-Income Census Tracts Moderate-Income Borrowers. Small Business Loans Low-Income Census Tracts Non-farm businesses with Gross Annual Revenues of $250,000 or Less. Moderate-Income Census Tracts Non-farm businesses with Gross Annual Revenues Greater than $250,000 but Less Than or Equal to $1 million. Small Farm Loans Low-Income Census Tracts Farms with Gross Annual Revenues of $250,000 or Less. Moderate-Income Census Tracts Farms with Gross Annual Revenues Greater than $250,000 but Less Than or Equal to $1 million. b. Geographic distribution performance ranges. 1. The performance threshold for an “Outstanding” supporting conclusion is the lesser of either: i. The product of 1.0 times the Geographic Community Benchmark; or ii. The product of 1.15 times the Geographic Market Benchmark. The “Outstanding” performance range is all potential values of the Geographic Bank Metric equal to or above the “Outstanding” performance threshold. 2. The performance threshold for a “High Satisfactory” Retail Lending Test supporting conclusion is the lesser of either: i. The product of 0.8 times the Geographic Community Benchmark; or ii. The product of 1.05 times the Geographic Market Benchmark. The “High Satisfactory” performance range is all potential values of the Geographic Bank Metric equal to or above the “High Satisfactory” performance threshold but below the Outstanding performance threshold. 3. The performance threshold for a “Low Satisfactory” supporting conclusion is the lesser of either: i. The product of 0.6 times the Geographic Community Benchmark; or ii. The product of the 0.8 times the Geographic Market Benchmark. The “Low Satisfactory” performance range is all potential values of the Geographic Bank Metric equal to or above the “Low Satisfactory” performance threshold but below the High Satisfactory performance threshold. 4. The performance threshold for a “Needs to Improve” supporting conclusion is the lesser of either: i. The product of 0.3 times the Geographic Community Benchmark; or ii. The product of 0.33 times the Geographic Market Benchmark. The “Needs to Improve” performance range is all potential values of the Geographic Bank Metric equal to or above the “Needs to Improve” performance threshold but below the “Low Satisfactory” performance threshold. 5. The “Substantial Noncompliance” performance range is all potential values of the Geographic Bank Metric below the “Needs to Improve” performance threshold. c. Geographic distribution supporting conclusions and performance scores. Conclusion Performance score Outstanding 10 High Satisfactory 7 Low Satisfactory 6 Needs to Improve 3 Substantial Noncompliance 0 d. Borrower distribution performance ranges. 1. The performance threshold for an “Outstanding” supporting conclusion is the lesser of either: i. The product of 1.0 times the Borrower Community Benchmark; or ii. The product of 1.15 times the Borrower Market Benchmark. The “Outstanding” performance range is all potential values of the Borrower Bank Metric equal to or above the “Outstanding” performance threshold. 2. The performance threshold for a “High Satisfactory” supporting conclusion is the lesser of either: i. The product of 0.8 times the Borrower Community Benchmark; or ii. The product of 1.05 times the Borrower Market Benchmark. The “High Satisfactory” performance range is all potential values of the Borrower Bank Metric equal to or above the “High Satisfactory” performance threshold but below the Outstanding performance threshold. 3. The performance threshold for a “Low Satisfactory” supporting conclusion is the lesser of either: i. The product of 0.6 times the Borrower Community Benchmark; or ii. The product of 0.8 times the Borrower Market Benchmark. The “Low Satisfactory” performance range is all potential values of the Borrower Bank Metric equal to or above the “Low Satisfactory” performance threshold but below the High Satisfactory performance threshold. 4. The performance threshold for a “Needs to Improve” supporting conclusion is the lesser of either: i. The product of 0.3 times the Borrower Community Benchmark; or ii. The product of 0.33 times the Borrower Market Benchmark. The “Needs to Improve” performance range is all potential values of the Borrower Bank Metric equal to or above the “Needs to Improve” performance threshold but below the “Low Satisfactory” performance threshold. 5. The “Substantial Noncompliance” performance range is all potential values of the Borrower Bank Metric below the “Needs to Improve” performance threshold. e. Borrower distribution supporting conclusions and performance scores. Conclusion Performance score Outstanding 10 High Satisfactory 7 Low Satisfactory 6 Needs to Improve 3 Substantial Noncompliance 0 VI. Supporting Conclusions for Automobile Lending a. Supporting conclusions for categories of designated census tracts and designated borrowers. Table 2 to Appendix A—Automobile Loans: Categories of Designated Census Tracts and Designated Borrowers Major product line Designated census tracts Designated borrowers Automobile Lending Low-Income Census Tracts Low-Income Borrowers. Moderate-Income Census Tracts Moderate-Income Borrowers. b. Geographic distribution. c. Borrower distribution. d. Performance scores. Conclusion Performance score Outstanding 10 High Satisfactory 7 Low Satisfactory 6 Needs to Improve 3 Substantial Noncompliance 0 VII. Retail Lending Test Conclusions—All Major Product Lines a. The FDIC determines a bank's Retail Lending Test performance conclusion for a major product line in a Retail Lending Test Area by calculating a weighted performance score for each major product line: 1. The FDIC develops a weighted average performance score for each major product line in each Retail Lending Test Area as follows: i. The FDIC creates a weighted average performance score across the categories of designated census tracts ( i.e., geographic distribution average i.e., borrower distribution average ii. For the geographic distribution average of each major product line, the weighting assigned to each category of designated census tracts is based on the demographics of the Retail Testing Area as outlined in the following table: Table 3 to Appendix A—Retail Lending, Test Geographic Distribution Average—Weights Major product line Category of Weight Closed-End Home Mortgage Loans Low-Income Census Tracts Percentage of total number of owner-occupied housing units in low- and moderate-income census tracts in the applicable Retail Lending Test Area that are in low-income census tracts. Moderate-Income Census Tracts Percentage of total number of owner-occupied housing units in low- and moderate-income census tracts in the applicable Retail Lending Test Area that are in moderate-income census tracts. Small Business Loans Low-Income Census Tracts Percentage of total number of non-farm businesses in low- and moderate-income census tracts in the applicable Retail Lending Test Area that are in low-income census tracts. Moderate-Income Census Tracts Percentage of total number of non-farm businesses in low- and moderate-income census tracts in the applicable Retail Lending Test Area that are in moderate-income census tracts. Small Farm Loans Low-Income Census Tracts Percentage of total number of farms in low- and moderate-income census tracts in the applicable Retail Lending Test Area that are in low-income census tracts. Moderate-Income Census Tracts Percentage of total number of farms in low- and moderate-income census tracts in the applicable Retail Lending Test Area that are in moderate-income census tracts. Automobile Loans Low-Income Census Tracts Percentage of total number of households in low- and moderate-income census tracts in the applicable Retail Lending Test Area that are in low-income census tracts. Moderate-Income Census Tracts Percentage of total number of households in low- and moderate-income census tracts in the applicable Retail Lending Test Area that are in moderate-income census tracts. In the case of a Retail Lending Test Area that contains no low-income census tracts and no moderate-income census tracts, the bank will not receive a geographic distribution average for that assessment area. Example A-11: iii. For the borrower distribution average of each major product line, the weighting assigned to each category of designated borrowers is based on the demographics of the Retail Lending Test Area as outlined in the following table: Table 4 to Appendix A—Retail Lending Test, Borrower Distribution Average—Weights Major product line Categories of designated borrowers Weight Closed-End Home Mortgage Loans Low-Income Borrowers Percentage of total number of low-income and moderate-income families in the applicable Retail Lending Test Area that are low-income families. Moderate-Income Borrowers Percentage of total number of low-income and moderate-income families in the applicable Retail Lending Test Area that are moderate-income families. Small Business Loans Non-farm businesses with gross annual revenues of $250,000 or less Percentage of total number of non-farm businesses with gross annual revenues of $250,000 or less and non-farm businesses with gross annual revenues greater than $250,000 but less than or equal to $1 million in the applicable Retail Lending Test Area that are non-farm businesses with gross annual revenues of $250,000 or less. Non-farm businesses with gross annual revenues greater than $250,000 and less than or equal to $1 million Percentage of total number of non-farm businesses with gross annual revenues of $250,000 or less and non-farm businesses with gross annual revenues greater than $250,000 but less than or equal to $1 million in the applicable Retail Lending Test Area that are non-farm businesses with gross annual revenues greater than $250,00 but less than or equal to $1 million. Small Farm Loans Farms with gross annual revenues of $250,000 or less Percentage of total number of farms with gross annual revenues of $250,000 or less and farms with gross annual revenues greater than $250,000 but less than or equal to $1 million in the applicable Retail Lending Test Area that are farms with gross annual revenues of $250,000 or less. Farms with gross annual revenues greater than $250,000 and less than or equal to $1 million Percentage of total number of farms with gross annual revenues of $250,000 or less and farms with gross annual revenues greater than $250,000 but less than or equal to $1 million in the applicable Retail Lending Test Area that are farms with gross annual revenues greater than $250,000 but less than or equal to $1 million. Automobile Loans Low-Income Borrowers Percentage of total number of low-income and moderate-income households in the applicable Retail Lending Test Area that are low-income households. Moderate-Income Borrowers Percentage of total number of low-income and moderate-income households in the applicable Retail Lending Test Area that are moderate-income households. Example A-12: 2. For each major product line, the FDIC calculates the average of the geographic distribution average and the borrower distribution average ( i.e., product line score Example A-13: b. For each Retail Lending Test Area, the FDIC calculates a weighted average of product line scores across all major product lines ( i.e., Retail Lending Test Area Score Example A-14: c. The FDIC then develops a Retail Lending Test recommended conclusion corresponding with the conclusion category that is nearest to the Retail Lending Test Area Score, as follows: Recommended Retail lending test area score Outstanding 8.5 or more. High Satisfactory 6.5 or more but less than 8.5. Low Satisfactory 4.5 or more but less than 6.5. Needs to Improve 1.5 or more but less than 4.5. Substantial Noncompliance less than 1.5. Example A-15: d. Once a recommended conclusion is determined for a Retail Lending Test Area, the performance context information provided in § 345.21(d) and the additional factors provided in § 345.22(g) inform the FDIC's determination of the Retail Lending Test conclusion for the Retail Lending Test Area. The agency assigns a Retail Lending Test conclusion for the Retail Lending Test Area of “Outstanding,” “High Satisfactory,” “Low Satisfactory,” “Needs to Improve,” or “Substantial Noncompliance.” VIII. Retail Lending Test Weighting and Conclusions for States, Multistate MSAs, and the Institution The FDIC develops the Retail Lending Test conclusions for States, multistate MSAs, and the institution as described in this section. a. The FDIC translates Retail Lending Test conclusions for facility-based assessment areas, retail lending assessment areas, and as applicable, the outside retail lending area into numerical performance scores, as follows: Conclusion Performance score Outstanding 10 High Satisfactory 7 Low Satisfactory 6 Needs to Improve 3 Substantial Noncompliance 0 b. The FDIC calculates the weighted average of Retail Lending Test Area performance scores for a State or multistate MSA, as applicable, and for the institution ( i.e., performance score for the Retail Lending Test 1. The ratio measuring the share of the bank's deposits in the Retail Lending Test Area, calculated by: i. Summing, over the years in the evaluation period, the bank's annual dollar volume of deposits in the Retail Lending Test Area. ii. Summing, over the years in the evaluation period, the bank's annual dollar volume of deposits in all Retail Lending Test Areas in the State, in the multistate MSA, or for the institution, as applicable. iii. Dividing the result of paragraph VIII.b.1.i of this appendix by the result of paragraph VIII.b.1.ii of this appendix. For a bank that reports deposits data pursuant to § 345.42(b)(3), the bank's annual dollar volume of deposits in a Retail Lending Test Area is the total of annual average daily balances of deposits reported by the bank in counties in the Retail Lending Test Area for that year. For a bank that does not report deposits data pursuant to § 345.42(b)(3), the bank's annual dollar volume of deposits in a Retail Lending Test Area is the total of deposits assigned to facilities reported by the bank in the Retail Lending Test Area in the FDIC's Summary of Deposits for that year. 2. The ratio measuring the share of the bank's loans in the Retail Lending Test Area, based on the combination of loan dollars and loan count, as defined in § 345.12, calculated by dividing: i. The bank's closed-end home mortgage loans, small business loans, small farm loans, and, if a product line for the bank, automobile loans in the Retail Lending Test Area originated or purchased during the evaluation period; by ii. The bank's closed-end home mortgage loans, small business loans, small farm loans, and, if a product line for the bank, automobile loans in all Retail Lending Test Areas in the State, in the multistate MSA, or for the institution, as applicable, originated or purchased during the evaluation period. c. The FDIC develops a conclusion corresponding to the conclusion category that is nearest to the performance score for the Retail Lending Test for the State, the multistate MSA, or the institution, as applicable, as follows: Conclusion Retail lending test performance score Outstanding 8.5 or more. High Satisfactory 6.5 or more but less than 8.5. Low Satisfactory 4.5 or more but less than 6.5. Needs to Improve 1.5 or more but less than 4.5. Substantial Noncompliance Less than 1.5. d. The agency considers relevant performance context information provided in § 345.21(d) to inform the FDIC's determination of the bank's Retail Lending Test conclusion for the State, the multistate MSA, or the institution, as applicable. Example A-16: Additionally: i. Facility-based assessment area 1 (FBAA-1) is associated with 75 percent of the deposits in all of the Retail Lending Test Areas of the bank (based on dollar amount) and 10 percent of the bank's closed-end home mortgage loans, small business loans, and small farm loans (based on the combination of loan dollars and loan count as defined in § 345.12). The bank received a “Needs to Improve” (3 points) Retail Lending Test conclusion in FBAA-1; ii. Facility-based assessment area 2 (FBAA-2) is associated with 15 percent of the deposits in all of the Retail Lending Test Areas of the bank and 20 percent of the bank's closed-end home mortgage loans, small business loans, and small farm loans (based on the combination of loan dollars and loan count as defined in § 345.12). The bank received a “Low Satisfactory” (6 points) Retail Lending Test conclusion in FBAA-2; iii. The Retail lending assessment area is associated with 8 percent of the deposits in all of the Retail Lending Test Areas of the bank and 68 percent of the bank's closed-end home mortgage loans, small business loans, and small farm loans (based on the combination of loan dollars and loan count as defined in § 345.12). The bank received an “Outstanding” (10 points) Retail Lending Test conclusion in the retail lending assessment area; and iv. The bank's outside retail lending area, is associated with 2 percent of the deposits in all of the Retail Lending Test Areas of the bank and 2 percent of the bank's closed-end home mortgage loans, small business loans, and small farm loans (based on the combination of loan dollars and loan count as defined in § 345.12). The bank received a “High Satisfactory” (7 points) Retail Lending Test conclusion in the outside retail lending area. Calculating weights: i. For facility-based assessment area 1: weight = 42.5 percent [(75 percent of deposits + 10 percent of closed-end home mortgage loans, small business loans, and small farm loans)/2]; ii. For facility-based assessment area 2: weight = 17.5 percent [(15 percent of deposits + 20 percent of closed-end home mortgage loans, small business loans, and small farm loans)/2]; iii. For the retail lending assessment area: weight = 38 percent [(8 percent of deposits + 68 percent of closed-end home mortgage loans, small business loans, and small farm loans)/2]; and iv. For the outside retail lending area: weight = 2 percent [(2 percent of deposits + 2 percent of closed-end home mortgage loans, small business loans, and small farm loans)/2]. Institution Retail Lending Test Performance Score and Conclusion: A performance score of 6.3 corresponds with the conclusion category “Low Satisfactory,” so the bank's Retail Lending Test recommended conclusion at the institution level is “Low Satisfactory.” Relevant performance context information provided in § 345.21(d) may inform the FDIC's determination of the bank's conclusion at the institution level. Example A-17: Additionally: i. Facility-based assessment area 1 (FBAA-1) is associated with 60 percent of the deposits in all of the Retail Lending Test Areas of the bank and 30 percent of the bank's closed-end home mortgage loans, small business loans, and small farm loans. The bank received an “Outstanding” (10 points) Retail Lending Test conclusion in FBAA-1; ii. Facility-based assessment area 2 (FBAA-2 is) associated with 40 percent of the deposits in all of the Retail Lending Test Areas of the bank and 10 percent of the bank's closed-end home mortgage loans, small business loans, and small farm loans. The bank received a “High Satisfactory” (7 points) Retail Lending Test conclusion in FBAA-2; and iii. The bank's outside retail lending area is associated with 0 percent of the deposits in all of the Retail Lending Test Areas of the bank (the bank did not voluntarily collect and maintain depositor location data, so all deposits in the bank are attributed to its branches within facility-based assessment areas) and 60 percent of the bank's closed-end home mortgage loans, small business loans, and small farm loans. The bank received a “Needs to Improve” (3 points) Retail Lending Test conclusion in the outside retail lending area. Calculating weights: i. For FBAA-1: weight = 45 percent [(60 percent of deposits + 30 percent of closed-end home mortgage loans, small business loans, and small farm loans)/2]; ii. For FBAA-2: weight = 25 percent [(40 percent of deposits + 10 percent of closed-end home mortgage loans, small business loans, and small farm loans)/2]; and iii. For the outside retail lending area: weight = 30 percent [(0 percent of deposits + 60 percent of closed-end home mortgage loans, small business loans, and small farm loans)/2]. Institution Retail Lending Test Performance Score and Conclusion: A performance score of 7.2 corresponds with the conclusion category “High Satisfactory,” so the bank's Retail Lending Test recommended conclusion at the institution level is “High Satisfactory.” Relevant performance context information provided in § 345.21(d) may inform the FDIC's determination of the bank's conclusion at the institution level. Appendix B to Part 345—Calculations for the Community Development Tests This appendix, based on requirements described in §§ 345.24 through 345.26 and 345.28, includes the following sections: I. Community Development Financing Tests—Calculation Components and Allocation of Community Development Loans and Community Development Investments II. Community Development Financing Test in § 345.24—Calculations for Metrics, Benchmarks, and Combining Performance Scores III. Community Development Financing Test for Limited Purpose Banks in § 345.26—Calculations for Metrics and Benchmarks IV. Weighting of Conclusions I. Community Development Financing Tests—Calculation Components and Allocation of Community Development Loans and Community Development Investments For purposes of the Community Development Financing Test in § 345.24 and Community Development Financing Test for Limited Purpose Banks in § 345.26, the FDIC identifies the community development loans and community development investments included in the numerator of the metrics and benchmarks and the deposits or assets included in the denominator of the metrics and benchmarks, as applicable, pursuant to paragraph I.a of this appendix. The FDIC determines whether to include a community development loan or community development investment in the numerator for a particular metric or benchmark pursuant to the allocation provisions in paragraph I.b of this appendix. a. Community development loans and community development investments, deposits, and assets included in the community development financing metrics and benchmarks—in general. 1. Numerator Community development loans and community development investments considered. e.g., i.e., annual dollar volume of community development loans and community development investments A. The dollar volume of all community development loans originated or purchased and community development investments made, including legally binding commitments to extend credit or legally binding commitments to invest, 1 1 B. The dollar volume of any increase in the calendar year to an existing community development loan that is refinanced or renewed and in an existing community development investment that is renewed; C. The outstanding dollar volume of community development loans originated or purchased in previous calendar years and community development investments made in previous calendar years, as of December 31 for each calendar year that the loan or investment remains on the depository institution's balance sheet; and D. The outstanding dollar volume, less any increase reported in paragraph I.a.1.B of this appendix in the same calendar year, of a community development loan the depository institution refinanced or renewed in a calendar year subsequent to the calendar year of origination or purchase, as of December 31 for each calendar year that the loan remains on the depository institution's balance sheet, and an existing community development investment renewed in a calendar year subsequent to the calendar year of the investment, as of December 31 for each calendar year that the investment remains on the depository institution's balance sheet. ii. Community development loan and community development investment allocation. See 2. Denominator. Annual dollar volume of deposits. i.e., annual dollar volume of deposits e.g., ii. Annual dollar volume of assets. i.e., the annual dollar volume of assets b. Allocation of community development loans and community development investments. In general. 2. A bank may allocate a community development loan or community development investment as follows: i. A community development loan or community development investment that benefits or serves only one county, and not any areas beyond that one county, would have the full dollar amount of the activity allocated to that county. ii. A community development loan or community development investment that benefits or serves multiple counties, a State, a multistate MSA, multiple States, multiple multistate MSAs, or the nationwide area is allocated according to either specific documentation that the bank can provide regarding the dollar amount allocated to each county or based on the geographic scope of the activity, as follows: A. Allocation approach if specific documentation is available. B. Allocation approach based on geographic scope of a community development loan or community development investment. 2 2 1. 2. 3. 4. 5. Table 1 to Appendix B—Community Development Loan or Community Development Investment Allocation Community development loan or community development investment benefits or serves Allocation approach if specific documentation is available Allocation approach based on geographic scope of activity One county Allocate to county NA. Multiple counties that are part of one State or multistate MSA Allocate to counties Allocate to counties in proportions equivalent to the distribution of low- and moderate-income families. One State or multistate MSA Allocate to counties Allocate to the State or multistate MSA. Multiple States or multistate MSAs, less than the entire nation Allocate to counties Allocate to the States or multistate MSAs, as applicable, based on the proportion of low- and moderate-income families in each State or multistate MSA. Nationwide area Allocate to counties Allocate to nationwide area. II. Community Development Financing Test in § 345.24—Calculations for Metrics, Benchmarks, and Combining Performance Scores The calculations for metrics, benchmarks, and combination of performance scores for Community Development Financing Test in § 345.24 are provided in this section. Additional information regarding relevant calculation components is set forth in paragraph I.a of this appendix. a. Bank Assessment Area Community Development Financing Metric. 1. Summing the bank's annual dollar volume of community development loans and community development investments that benefit or serve the facility-based assessment area for each year in the evaluation period. 2. Summing the bank's annual dollar volume of deposits located in the facility-based assessment area for each year in the evaluation period. 3. Dividing the result of paragraph II.a.1 of this appendix by the result of paragraph II.a.2 of this appendix. Example B-1: b. Assessment Area Community Development Financing Benchmark. 1. Summing all large depository institutions' annual dollar volume of community development loans and community development investments that benefit or serve the facility-based assessment area for each year in the evaluation period. 2. Summing all large depository institutions' annual dollar volume of deposits located in the facility-based assessment area for each year in the evaluation period. 3. Dividing the result of paragraph II.b.1 of this appendix by the result of paragraph II.b.2 of this appendix. Example B-2: c. MSA and Nonmetropolitan Nationwide Community Development Financing Benchmarks. 1. MSA Nationwide Community Development Financing Benchmark. i. Summing all large depository institutions' annual dollar volume of community development loans and community development investments that benefit or serve metropolitan areas in the nationwide area for each year in the evaluation period. ii. Summing all large depository institutions' annual dollar volume of deposits located in metropolitan areas in the nationwide area for each year in the evaluation period. iii. Dividing the result of paragraph II.c.1.i of this appendix by the result of paragraph II.c.1.ii of this appendix. Example B-3: 2. Nonmetropolitan Nationwide Community Development Financing Benchmark. i. Summing all large depository institutions' annual dollar volume of community development loans and community development investments that benefit or serve nonmetropolitan areas in the nationwide area for each year in the evaluation period. ii. Summing all large depository institutions' annual dollar volume of deposits located in nonmetropolitan areas in the nationwide area for each year in the evaluation period. iii. Dividing the result of paragraph II.c.2.i of this appendix by the result of paragraph II.c.2.ii of this appendix. Example B-4: d. Bank State Community Development Financing Metric. 1. Summing the bank's annual dollar volume of community development loans and community development investments that benefit or serve a State (which includes all activities within the bank's facility-based assessment areas and outside of its facility-based assessment areas but within the State) for each year in the evaluation period. 2. Summing the bank's annual dollar volume of deposits located in a State for each year in the evaluation period. 3. Dividing the result of paragraphs II.d.1 of this appendix by the result of paragraph II.d.2 of this appendix. Example B-5: e. State Community Development Financing Benchmark. 1. Summing all large depository institutions' annual dollar volume of community development loans and community development investments that benefit or serve all or part of a State for each year in the evaluation period. 2. Summing all large depository institutions' annual dollar volume of deposits located in the State for each year in the evaluation period. 3. Dividing the result of paragraph II.e.1 of this appendix by the result of paragraph II.e.2 of this appendix. Example B-6: f. State Weighted Assessment Area Community Development Financing Benchmark. Example B-7: • In FBAA-1, the Assessment Area Community Development Financing Benchmark is 3.0 percent. FBAA-1 represents 70 percent of the combined dollar volume of the deposits in the bank in FBAA-1 and FBAA-2. FBAA-1 represents 65 percent of the bank's combined dollar volume of originated and purchased closed-end home mortgage loans, small business loans, and small farm loans in FBAA-1 and FBAA-2. FBAA-1 represents 55 percent of the bank's number of originated and purchased closed-end home mortgage loans, small business loans, and small farm loans in FBAA-1 and FBAA-2; • In FBAA-2, the Assessment Area Community Development Financing Benchmark is 5.0 percent. FBAA-2 represents 30 percent of the combined dollar volume of the deposits in the bank in FBAA-1 and FBAA-2. FBAA-2 represents 35 percent of the bank's combined dollar volume of originated and purchased closed-end home mortgage loans, small business loans, and small farm loans in FBAA-1 and FBAA-2. FBAA-2 represents 45 percent of the bank's number of originated and purchased closed-end home mortgage loans, small business loans, and small farm loans in FBAA-1 and FBAA-2. FBAA-1 FBAA-2 Benchmark 3.0 5.0 % of deposits 70% 30% % of lending dollar volume 65% 35% % of number of loans 55% 45% • Calculating weights for FBAA-1: ○ The percent of originated and purchased closed-end home mortgage lending, small business lending, and small farm lending, based on the combination of loan dollars and loan count, as defined in § 345.12, for FBAA-1 is 60 percent. ○ The weight for FBAA-1 is 65 percent. • Calculating weights for FBAA-2: ○ The percent of originated and purchased closed-end home mortgage lending, small business lending, and small farm lending, based on the combination of loan dollars and loan count, for FBAA-2 is 40 percent. ○ The weight for FBAA-2 is 35 percent. • Applying the calculated weights for FBAA-1 and FBAA-2: o The bank's State Weighted Assessment Area Community Development Financing Benchmark is 3.7 percent. (Weight for FBAA-1 (0.65) × Benchmark in FBAA-1 (3%)) + (Weight for FBAA-2 (0.35) × Benchmark in FBAA-2 (5%)) = State Weighted Assessment Area Community Development Financing Benchmark (3.7%) g. Bank Multistate MSA Community Development Financing Metric. 1. Summing the bank's annual dollar volume of community development loans and community development investments that benefit or serve a multistate MSA (which includes all activities within the bank's facility-based assessment areas and outside of its facility-based assessment areas but within the multistate MSA) for each year in the evaluation period. 2. Summing the bank's annual dollar volume of deposits located in the multistate MSA for each year in the evaluation period. 3. Dividing the result of paragraph II.g.1 of this appendix by the result of paragraph II.g.2 of this appendix. Example B-8: h. Multistate MSA Community Development Financing Benchmark. 1. Summing all large depository institutions' annual dollar volume of community development loans and community development investments that benefit or serve all or part of a multistate MSA for each year in the evaluation period. 2. Summing all large depository institutions' annual dollar volume of deposits located in the multistate MSA for each year in the evaluation period. 3. Dividing the result of paragraph II.h.1 of this appendix by the result of paragraph II.h.2 of this appendix. Example B-9: i. Multistate MSA Weighted Assessment Area Community Development Financing Benchmark. 2 Example B-10: • In FBAA-1, the bank's Assessment Area Community Development Financing Benchmark is 3.0 percent. FBAA-1 represents 70 percent of the total dollar volume of the deposits in the bank in FBAA-1 and FBAA-2. FBAA-1 represents 65 percent of the bank's combined dollar volume of originated and purchased closed-end home mortgage loans, small business loans, and small farm loans in FBAA-1 and FBAA-2. FBAA-1 represents 55 percent of the bank's number of originated and purchased closed-end home mortgage loans, small business loans, and small farm loans in FBAA-1 and FBAA-2; • In FBAA-2, the bank's Assessment Area Community Development Financing Benchmark is 5.0 percent. FBAA-2 represents 30 percent of the total dollar volume of the deposits in the bank in FBAA-1 and FBAA-2. FBAA-2 represents 35 percent of the bank's combined dollar volume of originated and purchased closed-end home mortgage loans, small business loans, and small farm loans in FBAA-1 and FBAA-2. FBAA-2 represents 45 percent of the bank's number of originated and purchased closed-end home mortgage loans, small business loans, and small farm loans in FBAA-1 and FBAA-2. FBAA-1 FBAA-2 Benchmark 3.0 5.0 % of deposits 70% 30% % of lending dollar volume 65% 35% % of loans 55% 45% • Calculating weights for FBAA-1: ○ The percent of originated and purchased closed-end home mortgage lending, small business lending, and small farm lending, based on the combination of loan dollars and loan count, as defined in § 345.12, for FBAA-1 is 60 percent. ○ The weight for FBAA-1 is 65 percent. • Calculating weights for FBAA-2: ○ The percent of originated and purchased closed-end home mortgage lending, small business lending, and small farm lending, based on the combination of loan dollars and loan count, as defined in § 345.12, for FBAA-2 is 40 percent. ○ The weight for FBAA-2 is 35 percent. • Applying the calculated weights from FBAA-1 and FBAA-2: ○ The bank's Multistate MSA Weighted Assessment Area Community Development Financing Benchmark is 3.7 percent. (Weight of FBAA-1 (0.65) × Benchmark in FBAA-1 (3%)) + (weight of FBAA-2 (0.35) × benchmark in FBAA-2 (5%)) = Multistate MSA Weighted Assessment Area Community Development Financing Benchmark (3.7%) j. Bank Nationwide Community Development Financing Metric. 1. Summing the bank's annual dollar volume of community development loans and community development investments that benefit or serve the nationwide area (which includes all activities within the bank's facility-based assessment areas and outside of its facility-based assessment areas within the nationwide area) for each year in the evaluation period. 2. Summing the bank's annual dollar volume of deposits located in the nationwide area for each year in the evaluation period. 3. Dividing the results of paragraph II.j.1 of this appendix by the results of paragraph II.j.2 of this appendix. Example B-11: k. Nationwide Community Development Financing Benchmark. 1. Summing all large depository institutions' annual dollar volume of community development loans and community development investments that benefit or serve all or part of the nationwide area for each year in the evaluation period. 2. Summing all depository institutions' annual dollar volume of deposits located in the nationwide area for each year in the evaluation period. 3. Dividing the result of paragraph II.k.1 of this appendix by the result of paragraph II.k.2 of this appendix. Example B-12: l. Nationwide Weighted Assessment Area Community Development Financing Benchmark. Example B-13: • In FBAA-1, the bank's Assessment Area Community Development Financing Benchmark is 2.0 percent. FBAA-1 represents 60 percent of the combined dollar volume of the deposits in the bank in FBAA-1, FBAA-2, and FBAA-3. FBAA-1 represents 40 percent of the bank's combined dollar volume of originated and purchased closed-end home mortgage loans, small business loans, and small farm loans in FBAA-1, FBAA-2, and FBAA-3. FBAA-1 represents 60 percent of the bank's number of originated and purchased closed-end home mortgage loans, small business loans, and small farm loans in FBAA-1, FBAA-2, and FBAA-3. • In FBAA-2, the bank's Assessment Area Community Development Financing Benchmark is 3.0 percent. FBAA-2 represents 30 percent of the combined dollar volume of the deposits in the bank in FBAA-1, FBAA-2, and FBAA-3. FBAA-2 represents 45 percent of the bank's combined dollar volume of originated and purchased closed-end home mortgage loans, small business loans, and small farm loans in FBAA-1, FBAA-2, and FBAA-3. FBAA-2 represents 35 percent of the bank's number of originated and purchased closed-end home mortgage loans, small business loans, and small farm loans in FBAA-1, FBAA-2, and FBAA-3. • In FBAA-3, the bank's Assessment Area Community Development Financing Benchmark is 4.0 percent. FBAA-3 represents 10 percent of the combined dollar volume of the deposits in the bank in FBAA-1, FBAA-2, and FBAA-3. FBAA-3 represents 15 percent of the bank's combined dollar volume of originated and purchased closed-end home mortgage loans, small business loans, and small farm loans in FBAA-1, FBAA-2, and FBAA-3. FBAA-3 represents 5 percent of the bank's number of originated and purchased closed-end home mortgage loans, small business loans, and small farm loans in FBAA-1, FBAA-2, and FBAA-3. FBAA-1 FBAA-2 FBAA-3 Benchmark 2.0 3.0 4.0 % of deposits 60% 30% 10% % of lending dollar volume 40% 45% 15% % of loans 60% 35% 5% • Calculating weights for FBAA-1: ○ The percent of originated and purchased closed-end home mortgage lending, small business lending, and small farm lending, based on the combination of loan dollars and loan count, as defined in § 345.12, for FBAA-1 is 50 percent. ○ The weight for FBAA-1 is 55 percent. • Calculating weights for FBAA-2: ○ The percent of originated and purchased closed-end home mortgage lending, small business lending, and small farm lending, based on the combination of loan dollars and loan count, as defined in § 345.12, for FBAA-2 is 40 percent. ○ The weight for FBAA-2 is 35 percent. • Calculating weights for FBAA-3: ○ The percent of originated and purchased closed-end home mortgage lending, small business lending, and small farm lending, based on the combination of loan dollars and loan count, as defined in § 345.12, for FBAA-3 is 10 percent. ○ The weight for FBAA-3 is 10 percent. • Applying the calculated weights from FBAA-1, FBAA-2, and FBAA-3: ○ The bank's Nationwide Weighted Assessment Area Community Development Financing Benchmark is 2.55 percent. (Weight of FBAA-1(0.55) × Benchmark in FBAA-1 (2%)) + (Weight of FBAA-2 (0.35) × Benchmark FBAA-2 (3%)) + (Weight of FBAA-3 (0.10) × Benchmark in FBAA-3 (4%)) = Nationwide Weighted Assessment Area Community Development Financing Benchmark (2.55%) m. Bank Nationwide Community Development Investment Metric. 1. Summing the bank's annual dollar volume of community development investments, excluding mortgage-backed securities, that benefit or serve the nationwide area (which includes all activities within the bank's facility-based assessment areas and outside of its facility-based assessment areas within the nationwide area) for each year in the evaluation period. 2. Summing the bank's annual dollar volume of deposits located in the nationwide area for each year in the evaluation period. 3. Dividing the results of paragraph II.m.1 of this appendix by the results of paragraph II.m.2 of this appendix. Example B-14: n. Nationwide Community Development Investment Benchmark. 1. Summing the annual dollar volume of community development investments that benefit or serve all or part of the nationwide area, excluding mortgage-backed securities, for each year in the evaluation period for all large depository institutions that had assets greater than $10 billion as of December 31 in both of the prior two calendar years. 2. Summing the annual dollar volume of deposits in the nationwide area for each year in the evaluation period for all large depository institutions that had assets greater than $10 billion as of December 31 in both of the prior two calendar years. 3. Dividing the result of paragraph II.n.1 of this appendix by the result of paragraph II.n.2 of this appendix. Example B-15: o. Weighting of benchmarks. 1. The ratio measuring the share of the deposits in the bank in the facility-based assessment area, calculated by: i. Summing, over the years in the evaluation period, the bank's annual dollar volume of deposits in the facility-based assessment area. ii. Summing, over the years in the evaluation period, the bank's annual dollar volume of deposits in all facility-based assessment areas in the State, multistate MSA, or nationwide area, as applicable. iii. Dividing the result of paragraph II.o.1.i of this appendix by the result of paragraph II.o.1.ii of this appendix. For a bank that reports deposits data pursuant to § 345.42(b)(3), the bank's annual dollar volume of deposits in a facility-based assessment area is the total of annual average daily balances of deposits reported by the bank in counties in the facility-based assessment area for that year. For a bank that does not report deposits data pursuant to § 345.42(b)(3), the bank's annual dollar volume of deposits in a facility-based assessment area is the total of deposits assigned to facilities reported by the bank in the facility-based assessment area in the FDIC's Summary of Deposits for that year. 2. The ratio measuring the share of the bank's loans in the facility-based assessment area, based on the combination of loan dollars and loan count, as defined in § 345.12, calculated by dividing: i. The bank's closed-end home mortgage loans, small business loans, small farm loans, and, if a product line for the bank, automobile loans in the facility-based assessment area originated or purchased during the evaluation period; by ii. The bank's closed-end home mortgage loans, small business loans, small farm loans, and, if a product line for the bank, automobile loans in all facility-based assessment areas in the State, multistate MSA, or nationwide area, as applicable, originated or purchased during the evaluation period. p. Combined score for facility-based assessment area conclusions and the metrics and benchmarks analyses and the impact and responsiveness reviews. Performance score Conclusion 8.5 or more Outstanding. 6.5 or more but less than 8.5 High Satisfactory. 4.5 or more but less than 6.5 Low Satisfactory. 1.5 or more but less than 4.5 Needs to Improve. Less than 1.5 Substantial Noncompliance. 2. The FDIC bases a Community Development Financing Test combined performance score on the following: i. Component one—Weighted average of the bank's performance scores corresponding to facility-based assessment area conclusions. ii. Component two—Bank score for metric and benchmarks analyses and the impact and responsiveness reviews. iii. Combined score. A. The FDIC calculates the average of two components to determine weighting: 1. 2. 2, B. If the average is: 1. 2. 3. 4. 5. Table 2 to Appendix B—Component Weights for Combined Performance Score Average of the percentage of deposits and percentage of loans Weight on Weight on Greater than or equal to 80% 50 50 Greater than or equal to 60% but less than 80% 40 60 Greater than or equal to 40% but less than 60% 30 70 Greater than or equal to 20% but less than 40% 20 80 Below 20% 10 90 Example B-16: • Assume that the weighted average of the bank's performance scores corresponding to its facility-based assessment area conclusions nationwide is 7.5. Assume further that the bank score for the metrics and benchmarks analysis and the review of the impact and responsiveness of the bank's community development loans and community development investments nationwide is 6. • Assume further that 95 percent of the deposits in the bank and 75 percent of the bank's originated and purchased closed-end home mortgage lending, small business lending, small farm lending, and automobile loans (calculated using the combination of loan dollars and loan count, as defined in § 345.12) during the evaluation period are associated with its facility-based assessment areas. • The FDIC assigns weights for component one and component two based on the share of deposits in the bank and the share of the bank's originated and purchased closed-end home mortgage lending, small business lending, small farm lending, and automobile lending, calculated using the combination of loan dollars and loan count, as defined in § 345.12, associated with its facility-based assessment areas: (95 percent of deposits + 75 percent of originated and purchased closed-end home mortgage lending, small business lending, small farm lending, and automobile lending, based on the combination of loan dollars and loan count)/2 = 85 percent, which is between 80 percent and 100 percent. • Thus, the weighted average of the bank's facility-based assessment area conclusions in the nationwide area (component one—paragraph II.p.2.i of this appendix) receives a weight of 50 percent, and the metrics and benchmarks analysis and the review of the impact and responsiveness of the bank's community development loans and community development investments in the nationwide area (component two—paragraph II.p.2.ii of this appendix) receives a weight of 50 percent. • Using the point values—“Outstanding” (10 points); “High Satisfactory” (7 points); “Low Satisfactory” (6 points); “Needs to Improve” (3 points); “Substantial Noncompliance” (0 points)—the bank's Community Development Financing Test conclusion at the institution level is a “High Satisfactory”: (0.50 weight × 7.5 points for the weighted average of the performance scores corresponding to the bank's facility-based assessment area conclusions nationwide) + (0.50 weight × 6 points for the bank score for metrics and benchmarks analysis and review of the impact and responsiveness of the bank's community development loans and community development investments nationwide) results in a performance score of 6.75, which is closest to the point value (7) associated with “High Satisfactory.” III. Community Development Financing Test for Limited Purpose Banks in § 345.26—Calculations for Metrics and Benchmarks The calculations for metrics and benchmarks for Community Development Financing Test for Limited Purpose Banks in § 345.26 are provided in this section. Additional information regarding relevant calculation components is set forth in paragraph I.a of this appendix. a. Limited Purpose Bank Community Development Financing Metric. 1. Summing the bank's annual dollar volume of community development loans and community development investments that benefit or serve the nationwide area for each year in the evaluation period. 2. Summing the bank's annual dollar volume of the assets for each year in the evaluation period. 3. Dividing the result of paragraph III.a.1 of this appendix by the result of paragraph III.a.2 of this appendix. b. Nationwide Limited Purpose Bank Community Development Financing Benchmark. 1. Summing the annual dollar volume of community development loans and community development investments of depository institutions designated as limited purpose banks or savings associations pursuant to 12 CFR 25.26(a) or designated as limited purpose banks pursuant to § 345.26(a) or 12 CFR 228.26(a) reported pursuant to § 345.42(b) or 12 CFR 25.42(b) or 228.42(b) that benefit or serve all or part of the nationwide area for each year in the evaluation period. 2. Summing the annual dollar volume of assets of depository institutions designated as limited purpose banks or savings associations pursuant to 12 CFR 25.26(a) or designated as limited purpose banks pursuant to § 345.26(a) or 12 CFR 228.26(a) that reported community development loans and community development investments pursuant to § 345.42(b) or 12 CFR 25.42(b) or 228.42(b) for each year in the evaluation period. 3. Dividing the result of paragraph III.b.1 of this appendix by the result of paragraph III.b.2 of this appendix. c. Nationwide Asset-Based Community Development Financing Benchmark. 1. Summing the annual dollar volume of community development loans and community development investments of all depository institutions that reported pursuant to § 345.42(b) or 12 CFR 25.42(b) or 228.42(b) that benefit or serve all or part of the nationwide area for each year in the evaluation period. 2. Summing the annual dollar volume of assets of all depository institutions that reported community development loans and community development investments pursuant to § 345.42(b) or 12 CFR 25.42(b) or 228.42(b) for each year in the evaluation period. 3. Dividing the result of paragraph III.c.1 of this appendix by the result of paragraph III.c.2 of this appendix. d. Limited Purpose Bank Community Development Investment Metric. 1. Summing the bank's annual dollar volume of community development investments, excluding mortgage-backed securities, that benefit or serve the nationwide area for each year in the evaluation period. 2. Summing the bank's annual dollar volume of assets for each year in the evaluation period. 3. Dividing the results of paragraph III.d.1 of this appendix by the results of paragraph III.d.2 of this appendix. Example B-17: e. Nationwide Asset-Based Community Development Investment Benchmark. 1. Summing the annual dollar volume of community development investments, excluding mortgage-backed securities, of all depository institutions that had assets greater than $10 billion, as of December 31 in both of the prior two calendar years, that benefit or serve all or part of the nationwide area for each year in the evaluation period. 2. Summing the annual dollar volume of assets of all depository institutions that had assets greater than $10 billion, as of December 31 in both of the prior two calendar years, for each year in the evaluation period. 3. Dividing the result of paragraph III.e.1 of this appendix by the result of paragraph III.e.2 of this appendix. Example B-18: IV. Weighting of Conclusions The FDIC calculates component one of the combined performance score, as set forth in paragraph II.p.2.i of this appendix, for the Community Development Financing Test in § 345.24 and a performance score for the Community Development Services Test in § 345.25 in each State, multistate MSA, and the nationwide area, as applicable, as described in this section. a. The FDIC translates the Community Development Financing Test and the Community Development Services Test conclusions for facility-based assessment areas into numerical performance scores, as follows: Conclusion Performance score Outstanding 10 High Satisfactory 7 Low Satisfactory 6 Needs to Improve 3 Substantial Noncompliance 0 b. The FDIC calculates the weighted average of facility-based assessment area performance scores for a State or multistate MSA, as applicable, and for the institution. For the weighted average for a State or multistate MSA, the FDIC considers facility-based assessment areas in the State or multistate MSA pursuant to § 345.28(c). For the weighted average for the institution, the FDIC considers all of the bank's facility-based assessment areas. Each facility-based assessment area performance score is weighted by the average the following two ratios: 1. The ratio measuring the share of the deposits in the bank in the facility-based assessment area, calculated by: i. Summing, over the years in the evaluation period, the bank's annual dollar volume of deposits in the facility-based assessment area. ii. Summing, over the years in the evaluation period, the bank's annual dollar volume of deposits in all facility-based assessment areas in the State, in the multistate MSA, or for the nationwide area, as applicable. iii. Dividing the result of paragraph IV.b.1.i of this appendix by the result of paragraph IV.b.1.ii of this appendix. For a bank that reports deposits data pursuant to § 345.42(b)(3), the bank's annual dollar volume of deposits in a facility-based assessment area is the total of annual average daily balances of deposits reported by the bank in counties in the facility-based assessment area for that year. For a bank that does not report deposits data pursuant to § 345.42(b)(3), the bank's annual dollar volume of deposits in a facility-based assessment area is the total of deposits assigned to facilities reported by the bank in the facility-based assessment area in the FDIC's Summary of Deposits for that year. 2. The ratio measuring the share of the bank's loans in the facility-based assessment area, based on the combination of loan dollars and loan count, as defined in § 345.12, calculated by dividing: i. The bank's closed-end home mortgage loans, small business loans, small farm loans, and, if a product line for the bank, automobile loans in the facility-based assessment area originated or purchased during the evaluation period; by ii. The bank's closed-end home mortgage loans, small business loans, small farm loans, and, if a product line for the bank, automobile loans in all facility-based assessment areas in the State, in the multistate MSA, or for the nationwide area, as applicable, originated or purchased during the evaluation period. [89 FR 7205, Feb. 1, 2024; 89 FR 22069, Mar. 29, 2024] Appendix C to Part 345—Performance Test Conclusions a. Performance test conclusions, in general. b. Retail Lending Test conclusions. 1. Retail Lending Test Area. Conclusion Performance score Outstanding 10 High Satisfactory 7 Low Satisfactory 6 Needs to Improve 3 Substantial Noncompliance 0 2. State, multistate MSA, and institution. c. Retail Services and Products Test conclusions. 1. Facility-based assessment area. 2. State, multistate MSA, and institution. i. The FDIC translates Retail Services and Products Test conclusions for facility-based assessment areas into numerical performance scores as follows: Conclusion Performance score Outstanding 10 High Satisfactory 7 Low Satisfactory 6 Needs to Improve 3 Substantial Noncompliance 0 ii. The FDIC calculates the weighted average of facility-based assessment area performance scores for a State or multistate MSA, as applicable, and for the institution. For the weighted average for a State or multistate MSA, the FDIC considers facility-based assessment areas in the State or multistate MSA pursuant to § 345.28(c). For the weighted average for the institution, the FDIC considers all of the bank's facility-based assessment areas. Each facility-based assessment area performance score is weighted by the average the following two ratios: A. The ratio measuring the share of the bank's deposits in the facility-based assessment area, calculated by: 1. 2. 3. 1 2 For a bank that reports deposits data pursuant to § 345.42(b)(3), the bank's annual dollar volume of deposits in a facility-based assessment area is the total of annual average daily balances of deposits reported by the bank in counties in the facility-based assessment area for that year. For a bank that does not report deposits data pursuant to § 345.42(b)(3), the bank's annual dollar volume of deposits in a facility-based assessment area is the total of deposits assigned to facilities reported by the bank in the facility-based assessment area in the FDIC's Summary of Deposits for that year. B. The ratio measuring the share of the bank's loans in the facility-based assessment area, based on the combination of loan dollars and loan count, as defined in § 345.12, calculated by dividing: 1. 2. iii. For a State or multistate MSA, as applicable, the FDIC assigns a Retail Services and Products Test conclusion corresponding to the conclusion category that is nearest to the weighted average for the State or multistate MSA calculated pursuant to paragraph c.2.ii of this appendix ( i.e., Performance score for the retail services and products test Conclusion 8.5 or more Outstanding. 6.5 or more but less than 8.5 High Satisfactory. 4.5 or more but less than 6.5 Low Satisfactory. 1.5 or more but less than 4.5 Needs to Improve. less than 1.5 Substantial Noncompliance. iv. For the institution, the FDIC assigns a Retail Services and Products Test conclusion based on the bank's combined retail banking services conclusion, developed pursuant to paragraph c.2.iv.A of this appendix, and an evaluation of the bank's retail banking products, pursuant to paragraph c.2.iv.B of this appendix. The FDIC translates the Retail Services and Products Test conclusion for the institution into a numerical performance score, as follows: Conclusion Performance score Outstanding 10 High Satisfactory 7 Low Satisfactory 6 Needs to Improve 3 Substantial Noncompliance 0 A. Combined retail banking services conclusion. 1. In general. 1 1 2. Digital delivery systems and other delivery systems conclusion. B. Retail banking products evaluation. 1. Credit products and programs. 2. Deposit products. 3. Impact of retail banking products on Retail Services and Products Test conclusion. d. Community Development Financing Test conclusions. 1. Facility-based assessment area. Conclusion Performance score Outstanding 10 High Satisfactory 7 Low Satisfactory 6 Needs to Improve 3 Substantial Noncompliance 0 2. State, multistate MSA, and institution. e. Community Development Services Test conclusions. 1. Facility-based assessment area. Conclusion Performance score Outstanding 10 High Satisfactory 7 Low Satisfactory 6 Needs to Improve 3 Substantial Noncompliance 0 2. State, multistate MSA, or nationwide area. i. The FDIC calculates a weighted average of the performance scores corresponding to the performance test conclusions pursuant to section IV of appendix B to this part. The resulting number is the Community Development Services Test performance score for a State, multistate MSA, or the institution. Subject to paragraph e.2.ii of this appendix, the FDIC assigns a Community Development Services Test conclusion corresponding to the conclusion category that is nearest to the performance score for the Community Development Services Test as follows: Performance score for the community Conclusion 8.5 or more Outstanding. 6.5 or more but less than 8.5 High Satisfactory. 4.5 or more but less than 6.5 Low Satisfactory. 1.5 or more but less than 4.5 Needs to Improve. Less than 1.5 Substantial Noncompliance. ii. The FDIC may adjust upwards the Community Development Services Test conclusion assigned under paragraph e.2.i of this appendix, based on Community Development Services Test activities performed outside of facility-based assessment areas as provided in § 345.19. If there is no upward adjustment, the performance score used for the ratings calculations described in paragraph b.1 of appendix D to this part is the Community Development Services Test performance score discussed in paragraph e.2.i of this appendix. If there is an upward adjustment, the FDIC translates the Community Development Services Test conclusion into a numerical performance score, which will be used for the ratings calculations described in paragraph b.1 of appendix D to this part, as follows: Conclusion Performance score Outstanding 10 High Satisfactory 7 Low Satisfactory 6 Needs to Improve 3 Substantial Noncompliance 0 f. Community Development Financing Test for Limited Purpose Banks conclusions. 1. Facility-based assessment area. 2. State or multistate MSA. i. The bank's facility-based assessment area performance test conclusions in each State or multistate MSA, as applicable; ii. The dollar volume of a bank's community development loans and community development investments that benefit or serve the State or multistate MSAs, as applicable, over the evaluation period; and iii. A review of the impact and responsiveness of the bank's activities in the State or multistate MSAs, as provided in § 345.15. 3. Institution. i. The bank's community development financing performance in all of its facility-based assessment areas; ii. The FDIC's comparison of the bank's Limited Purpose Bank Community Development Financing Metric to both the Nationwide Limited Purpose Bank Community Development Financing Benchmark and the Nationwide Asset-Based Community Development Financing Benchmark; iii. The FDIC's comparison of the bank's Limited Purpose Bank Community Development Investment Metric to the Nationwide Asset-Based Community Development Investment Benchmark; and iv. A review of the impact and responsiveness of the bank's activities in a nationwide area as provided in § 345.15. g. Strategic Plan conclusions. Appendix D to Part 345—Ratings a. Ratings, in general. Performance score Rating 8.5 or more Outstanding. 4.5 or more but less than 8.5 Satisfactory. 1.5 or more but less than 4.5 Needs to Improve. Less than 1.5 Substantial Noncompliance. The FDIC also considers any evidence of discriminatory or other illegal credit practices pursuant to § 345.28(d) and the bank's past performance pursuant to § 345.28(e). b. Large bank ratings at the State, multistate MSA, and institution levels. 1. The FDIC weights the performance scores as follows: Retail Lending Test (40 percent); Retail Services and Products Test (10 percent); Community Development Financing Test (40 percent); and Community Development Services Test (10 percent). The FDIC multiplies each of these weights by the bank's performance score on the respective performance test, and then adds the resulting values together to develop a State, multistate MSA, or institution-level performance score. 2. The FDIC assigns a rating corresponding with the rating category that is nearest to the State, multistate MSA, or institution performance score using the table in paragraph a of this appendix. Example D-1: • On the Retail Lending Test, the bank received a 7.3 performance score and a corresponding conclusion of “High Satisfactory;” • On the Retail Services and Products Test, the bank received a 6.0 performance score and a corresponding conclusion of “Low Satisfactory;” • On the Community Development Financing Test, the bank received a 5.7 performance score and a corresponding conclusion of “Low Satisfactory;” and • On the Community Development Services Test, the bank received a 3.0 performance score and a corresponding conclusion of “Needs to Improve.” Calculating weights: • For the Retail Lending Test, the weight is 40 percent (or 0.4); • For the Retail Services and Products Test, the weight is 10 percent (or 0.1); • For the Community Development Financing Test, the weight is 40 percent (or 0.4); and • For the Community Development Services Test, the weight is 10 percent (or 0.1). State Performance Score: (0.4 weight × 7.3 performance score on the Retail Lending Test = 2.92) + (0.1 weight × 6.0 performance score on the Retail Services and Products Test = 0.6) + (0.4 weight × 5.7 performance score on the Community Development Financing Test = 2.28) + (0.1 weight × 3.0 performance score on the Community Development Services Test = 0.3). State Rating: c. Intermediate bank ratings. Intermediate banks evaluated pursuant to the Retail Lending Test and the Community Development Financing Test. i. The FDIC weights the performance scores as follows: Retail Lending Test (50 percent) and Community Development Financing Test (50 percent). The FDIC multiplies each of these weights by the bank's corresponding performance score on the respective performance test, and then adds the resulting values together to develop a State, multistate MSA, or institution performance score. ii. The FDIC assigns a rating corresponding with the rating category that is nearest to the State, multistate MSA, or institution performance score, using the table in paragraph a of this appendix. iii. The FDIC may adjust an intermediate bank's institution rating where the bank has requested and received sufficient additional consideration pursuant to § 345.30(b)(2) and (3). 2. Intermediate banks evaluated pursuant to the Retail Lending Test and the Intermediate Bank Community Development Test in § 345.30(a)(2). i. The FDIC weights the performance scores as follows: Retail Lending Test (50 percent) and Intermediate Bank Community Development Test (50 percent). The FDIC multiplies each of these weights by the bank's corresponding performance score on the respective performance test, and then adds the resulting values together to develop a State, multistate MSA, or institution performance score. For purposes of this paragraph c.2.i, the performance score for the Intermediate Bank Community Development Test corresponds to the conclusion assigned, as follows: Conclusion Performance score Outstanding 10 High Satisfactory 7 Low Satisfactory 6 Needs to Improve 3 Substantial Noncompliance 0 ii. The FDIC assigns a rating corresponding with the rating category that is nearest to the State, multistate MSA, or institution performance score using the table in paragraph a of this appendix. iii. The FDIC may adjust an intermediate bank's institution rating where the bank has requested and received sufficient additional consideration pursuant to § 345.30(b)(1) and (3). d. Small bank ratings. Ratings for small banks that opt to be evaluated pursuant to the Retail Lending Test in § 345.22. i. The FDIC assigns a rating corresponding with the rating category that is nearest to the State, multistate MSA, or institution performance score using the table in paragraph a of this appendix. ii. The FDIC may adjust a small bank's institution rating where the bank has requested and received sufficient additional consideration pursuant to § 345.29(b)(2) and (3). 2. Ratings for small banks evaluated under the Small Bank Lending Test pursuant to § 345.29(a)(2). e. Limited purpose banks. 1. The FDIC assigns a rating corresponding with the rating category that is nearest to the State, multistate MSA, or institution performance score, respectively, using the table in paragraph a of this appendix. 2. The FDIC may adjust a limited purpose bank's institution rating where the bank has requested and received sufficient additional consideration pursuant to § 345.26(b)(2). f. Ratings for banks operating under an approved strategic plan. g. Minimum performance test conclusion requirements. Retail Lending Test minimum conclusion. 2. Minimum of “low satisfactory” overall conclusion for 60 percent of facility-based assessment areas and retail lending assessment areas. ii. Overall conclusion in facility-based assessment areas and retail lending assessment areas. A. The FDIC calculates an overall conclusion in a facility-based assessment area by combining a large bank's performance scores for its conclusions in the facility-based assessment area pursuant to the Retail Lending Test in § 345.22, Retail Services and Products Test in § 345.23, Community Development Financing Test in § 345.24, and Community Development Services Test in § 345.25. The FDIC weights the performance scores as follows: Retail Lending Test (40 percent); Retail Services and Products Test (10 percent); Community Development Financing Test (40 percent); and Community Development Services Test (10 percent). The FDIC multiplies each of these weights by the bank's performance score on the respective performance test, and then adds the resulting values together to develop a facility-based assessment area performance score. The FDIC assigns a conclusion corresponding with the conclusion category that is nearest to the performance score, as follows: Performance score Conclusion 8.5 or more Outstanding. 6.5 or more but less than 8.5 High Satisfactory. 4.5 or more but less than 6.5 Low Satisfactory. 1.5 or more but less than 4.5 Needs to Improve. Less than 1.5 Substantial Noncompliance. B. An overall conclusion in a retail lending assessment area is the retail lending assessment area conclusion assigned pursuant to the Retail Lending Test in § 345.22 as provided in appendix C to this part. Appendix E to Part 345—Small Bank and Intermediate Bank Performance Evaluation Conclusions and Ratings a. Small banks evaluated under the small bank performance evaluation. Small Bank Lending Test conclusions. i. Eligibility for a “Satisfactory” Small Bank Lending Test conclusion. A. A reasonable loan-to-deposit ratio (considering seasonal variations) given the bank's size, financial condition, the credit needs of its facility-based assessment areas, and taking into account, as appropriate, other lending-related activities such as loan originations for sale to the secondary markets, community development loans, and community development investments; B. A majority of its loans and, as appropriate, other lending-related activities, are in its facility-based assessment areas; C. A distribution of retail lending 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 facility-based assessment areas; D. A reasonable geographic distribution of loans among census tracts of different income levels in the bank's facility-based assessment areas; and E. A record of taking appropriate action, when warranted, in response to written complaints, if any, about the bank's performance in helping to meet the credit needs of its facility-based assessment areas. ii. Eligibility for an “Outstanding” Small Bank Lending Test conclusion. iii. “ Needs to Improve” or “Substantial Noncompliance” Small Bank Lending Test conclusions. 2. Small bank ratings. i. The FDIC assigns a rating based on the lending evaluation conclusion according to the category of the conclusion assigned: “Outstanding,” “Satisfactory,” “Needs to Improve,” or “Substantial Noncompliance.” ii. The FDIC may adjust a small bank's institution rating where the bank has requested and received sufficient additional consideration pursuant to § 345.29(b)(1) and (3). iii. The FDIC also considers any evidence of discriminatory or other illegal credit practices pursuant to § 345.28(d) and the bank's past performance pursuant to § 345.28(e). 3. The FDIC assigns a rating for small banks evaluated pursuant to the Retail Lending Test in § 345.22 as provided in appendix D to this part. b. Intermediate banks evaluated pursuant to the Intermediate Bank Community Development Test in § 345.30. 1. Intermediate Bank Community Development Test conclusions. Eligibility for a “Satisfactory” Intermediate Bank Community Development Test conclusion. ii. Eligibility for an “Outstanding” Intermediate Bank Community Development Test conclusion. iii. “Needs to Improve” or “Substantial Noncompliance” Intermediate Bank Community Development Test conclusions. 2. Intermediate bank ratings. Appendix F to Part 345—CRA Notice (a) Notice for main offices and, if an interstate bank, one branch office in each State. Community Reinvestment Act Notice Under the Federal Community Reinvestment Act (CRA), the Federal Deposit Insurance Corporation (FDIC) evaluates our record of helping to meet the credit needs of this community consistent with safe and sound operations. The FDIC also takes this record into account when deciding on certain applications submitted by us. Your involvement is encouraged. You are entitled to certain information about our operations and our performance under the CRA, including, for example, information about our branches, such as their location and services provided at them; the public section of our most recent CRA Performance Evaluation, prepared by the FDIC; and comments received from the public relating to our performance in helping to meet community credit needs, as well as our responses to those comments. You may review this information today. At least 30 days before the beginning of each calendar quarter, the FDIC publishes a nationwide list of the banks that are scheduled for CRA examination for the next two quarters. This list is available from the Regional Director, FDIC (address). You may send written comments about our performance in helping to meet community credit needs to (name and address of official at bank) and FDIC Regional Director. You may also submit comments electronically through the FDIC's website at www.fdic.gov/regulations/cra You may ask to look at any comments received by the FDIC Regional Director. You may also request from the FDIC Regional Director an announcement of our applications covered by the CRA filed with the FDIC. [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.] (b) Notice for branch offices. Community Reinvestment Act Notice Under the Federal Community Reinvestment Act (CRA), the Federal Deposit Insurance Corporation (FDIC) evaluates our record of helping to meet the credit needs of this community consistent with safe and sound operations. The FDIC also takes this record into account when deciding on certain applications submitted by us. Your involvement is encouraged. You are entitled to certain information about our operations and our performance under the CRA. You may review today the public section of our most recent CRA evaluation, prepared by the FDIC, and a list of services provided at this branch. You may also have access to the following additional information, which we will make available to you at this branch within five calendar days after you make a request to us: (1) a map showing the assessment area containing this branch, which is the area in which the FDIC evaluates our CRA performance in this community; (2) information about our branches in this assessment area; (3) a list of services we provide at those locations; (4) data on our lending performance in this assessment area; and (5) copies of all written comments received by us that specifically relate to our CRA performance in this assessment area, and any responses we have made to those comments. If we are operating under an approved strategic plan, you may also have access to a copy of the plan. [If you would like to review information about our CRA performance in other communities served by us, the public file for our entire bank is available at (name of office located in state), located at (address).] At least 30 days before the beginning of each calendar quarter, the FDIC publishes a nationwide list of the banks that are scheduled for CRA examination for the next two quarters. This list is available from the Regional Director, FDIC (address). You may send written comments about our performance in helping to meet community credit needs to (name and address of official at bank) and the FDIC Regional Director. You may also submit comments electronically through the FDIC's website at www.fdic.gov/regulations/cra You may ask to look at any comments received by the FDIC Regional Director. You may also request from the FDIC Regional Director an announcement of our applications covered by the CRA filed with the FDIC. [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.] Appendix G to Part 345—Community Reinvestment Regulations Note: The content of this appendix reproduces part 345 implementing the Community Reinvestment Act as of March 31, 2024. Cross-references to CFR parts (as well as to included sections, subparts, and appendices) in this appendix are to those provisions as contained within this appendix and the CFR as of March 31, 2024. PART 345—COMMUNITY REINVESTMENT Subpart A—General § 345.11 Authority, purposes, and scope. (a) Authority and OMB control number Authority. (2) OMB control number. et seq. (b) Purposes. (1) Establishing the framework and criteria by which the Federal Deposit Insurance Corporation (FDIC) assesses a 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; and (2) Providing that the FDIC takes that record into account in considering certain applications. (c) Scope General. (2) Insured State branches. (3) Certain special purpose banks. § 345.12 Definitions. For purposes of this part, the following definitions apply: (a) Affiliate (b) Area median income (1) The median family income for the MSA, if a person or geography is located in an MSA, or for the metropolitan division, if a person or geography is located in an MSA that has been subdivided into metropolitan divisions; or (2) The statewide nonmetropolitan median family income, if a person or geography is located outside an MSA. (c) Assessment area (d) Remote Service Facility (RSF) (e) Bank (f) Branch (g) Community development (1) Affordable housing (including multifamily rental housing) for low- or moderate-income individuals; (2) Community services targeted to low- or moderate-income individuals; (3) Activities that promote economic development by financing businesses or farms that meet the size eligibility standards of the Small Business Administration's Development Company or Small Business Investment Company programs (13 CFR 121.301) or have gross annual revenues of $1 million or less; or (4) Activities that revitalize or stabilize— (i) Low-or moderate-income geographies; (ii) Designated disaster areas; or (iii) Distressed or underserved nonmetropolitan middle-income geographies designated by the Board of Governors of the Federal Reserve System, FDIC, and Office of the Comptroller of the Currency, based on— (A) Rates of poverty, unemployment, and population loss; or (B) Population size, density, and dispersion. Activities revitalize and stabilize geographies designated based on population size, density, and dispersion if they help to meet essential community needs, including needs of low- and moderate-income individuals. (h) Community development loan means (1) Has as its primary purpose community development; and (2) Except in the case of a wholesale or limited purpose bank: (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 the loan is for a multifamily dwelling (as defined in § 1003.2(n) of this title); and (ii) Benefits the bank's assessment area(s) or a broader statewide or regional area that includes the bank's assessment area(s). (i) Community development service (1) Has as its primary purpose community development; (2) Is related to the provision of financial services; and (3) Has not been considered in the evaluation of the bank's retail banking services under § 345.24(d). (j) Consumer loan (1) Motor vehicle loan, (2) Credit card loan, (3) Other secured consumer loan, which is a secured consumer loan that is not included in one of the other categories of consumer loans; and (4) Other unsecured consumer loan, (k) Geography (l) Home mortgage loan (m) Income level (1) Low-income, (2) Moderate-income, (3) Middle-income, (4) Upper-income, (n) Limited purpose bank (o) Loan location. (1) A consumer loan is located in the geography where the borrower resides; (2) A home mortgage loan is located in the geography where the property to which the loan relates is located; and (3) A small business or small farm loan is located in the geography where the main business facility or farm is located or where the loan proceeds otherwise will be applied, as indicated by the borrower. (p) Loan production office (q) Metropolitan division (r) MSA (s) Nonmetropolitan area (t) Qualified investment (u) Small bank Definition. Small bank Intermediate small bank (2) Adjustment. (v) Small business loan (w) Small farm loan (x) Wholesale bank Subpart B—Standards for Assessing Performance § 345.21 Performance tests, standards, and ratings, in general. (a) Performance tests and standards. (1) Lending, investment, and service tests. (2) Community development test for wholesale or limited purpose banks. (3) Small bank performance standards. (4) Strategic plan. (b) Performance context. (1) Demographic data on median income levels, distribution of household income, nature of housing stock, housing costs, and other relevant data pertaining to a bank's assessment area(s); (2) Any information about lending, investment, and service opportunities in the bank's assessment area(s) maintained by the bank or obtained from community organizations, state, local, and tribal governments, economic development agencies, or other sources; (3) The bank's product offerings and business strategy as determined from data provided by the bank; (4) Institutional capacity and constraints, including the size and financial condition of the bank, the economic climate (national, regional, and local), safety and soundness limitations, and any other factors that significantly affect the bank's ability to provide lending, investments, or services in its assessment area(s); (5) The bank's past performance and the performance of similarly situated lenders; (6) The bank's public file, as described in § 345.43, and any written comments about the bank's CRA performance submitted to the bank or the FDIC; and (7) Any other information deemed relevant by the FDIC. (c) Assigned ratings. (d) Safe and sound operations. (e) Low-cost education loans provided to low-income borrowers. (f) Activities in cooperation with minority- or women-owned financial institutions and low-income credit unions. § 345.22 Lending test. (a) Scope of test. (2) The FDIC considers originations and purchases of loans. The FDIC will also consider any other loan data the bank may choose to provide, including data on loans outstanding, commitments and letters of credit. (3) A bank may ask the FDIC to consider loans originated or purchased by consortia in which the bank participates or by third parties in which the bank has invested only if the loans meet the definition of community development loans and only in accordance with paragraph (d) of this section. The FDIC will not consider these loans under any criterion of the lending test except the community development lending criterion. (b) Performance criteria. (1) Lending activity. (2) Geographic distribution. (i) The proportion of the bank's lending in the bank's assessment area(s); (ii) The dispersion of lending in the bank's assessment area(s); and (iii) The number and amount of loans in low-, moderate-, middle-, and upper-income geographies in the bank's assessment area(s); (3) Borrower characteristics. (i) Home mortgage loans to low-, moderate-, middle-, and upper-income individuals; (ii) Small business and small farm loans to businesses and farms with gross annual revenues of $1 million or less; (iii) Small business and small farm loans by loan amount at origination; and (iv) Consumer loans, if applicable, to low-, moderate-, middle-, and upper-income individuals; (4) Community development lending. (5) Innovative or flexible lending practices. (c) Affiliate lending. (2) The FDIC considers affiliate lending subject to the following constraints: (i) No affiliate may claim a loan origination or loan purchase if another institution claims the same loan origination or purchase; and (ii) If a bank elects to have the FDIC consider loans within a particular lending category made by one or more of the bank's affiliates in a particular assessment area, the bank shall elect to have the FDIC consider, in accordance with paragraph (c)(1) of this section, all the loans within that lending category in that particular assessment area made by all of the bank's affiliates. (3) The FDIC does not consider affiliate lending in assessing a bank's performance under paragraph (b)(2)(i) of this section. (d) Lending by a consortium or a third party. (1) Will be considered, at the bank's option, if the bank reports the data pertaining to these loans under § 345.42(b)(2); and (2) May be allocated among participants or investors, as they choose, for purposes of the lending test, except that no participant or investor: (i) May claim a loan origination or loan purchase if another participant or investor claims the same loan origination or purchase; or (ii) May claim loans accounting for more than its percentage share (based on the level of its participation or investment) of the total loans originated by the consortium or third party. (e) Lending performance rating. § 345.23 Investment test. (a) Scope of test. (b) Exclusion. (c) Affiliate investment. (d) Disposition of branch premises. (e) Performance criteria. (1) The dollar amount of qualified investments; (2) The innovativeness or complexity of qualified investments; (3) The responsiveness of qualified investments to credit and community development needs; and (4) The degree to which the qualified investments are not routinely provided by private investors. (f) Investment performance rating. § 345.24 Service test. (a) Scope of test. (b) Area(s) benefited. (c) Affiliate service. (d) Performance criteria—retail banking services. (1) The current distribution of the bank's branches among low-, moderate-, middle-, and upper-income geographies; (2) In the context of its current distribution of the bank's branches, the bank's record of opening and closing branches, particularly branches located in low- or moderate-income geographies or primarily serving low- or moderate-income individuals; (3) The availability and effectiveness of alternative systems for delivering retail banking services ( e.g., (4) The range of services provided in low-, moderate-, middle-, and upper-income geographies and the degree to which the services are tailored to meet the needs of those geographies. (e) Performance criteria—community development services. (1) The extent to which the bank provides community development services; and (2) The innovativeness and responsiveness of community development services. (f) Service performance rating. § 345.25 Community development test for wholesale or limited purpose banks. (a) Scope of test. (b) Designation as a wholesale or limited purpose bank. (c) Performance criteria. (1) The number and amount of community development loans (including originations and purchases of loans and other community development loan data provided by the bank, such as data on loans outstanding, commitments, and letters of credit), qualified investments, or community development services; (2) The use of innovative or complex qualified investments, community development loans, or community development services and the extent to which the investments are not routinely provided by private investors; and (3) The bank's responsiveness to credit and community development needs. (d) Indirect activities. (1) Qualified investments or community development services provided by an affiliate of the bank, if the investments or services are not claimed by any other institution; and (2) Community development lending by affiliates, consortia and third parties, subject to the requirements and limitations in § 345.22 (c) and (d). (e) Benefit to assessment area(s) Benefit inside assessment area(s). (2) Benefit outside assessment area(s). (f) Community development performance rating. § 345.26 Small bank performance standards. (a) Performance criteria Small banks that are not intermediate small banks. (2) Intermediate small banks. (b) Lending test. (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; (2) The percentage of loans and, as appropriate, other lending-related activities located in the bank's assessment area(s); (3) The bank's record of lending to and, as appropriate, engaging in other lending-related activities for borrowers of different income levels and businesses and farms of different sizes; (4) The geographic distribution of the bank's loans; and (5) The bank's record of taking action, if warranted, in response to written complaints about its performance in helping to meet credit needs in its assessment area(s). (c) Community development test. (1) The number and amount of community development loans; (2) The number and amount of qualified investments; (3) The extent to which the bank provides community development services; and (4) The bank's responsiveness through such activities to community development lending, investment, and services needs. (d) Small bank performance rating. § 345.27 Strategic plan. (a) Alternative election. (1) The bank has submitted the plan to the FDIC as provided for in this section; (2) The FDIC has approved the plan; (3) The plan is in effect; and (4) The bank has been operating under an approved plan for at least one year. (b) Data reporting. (c) Plans in general Term. (2) Multiple assessment areas. (3) Treatment of affiliates. (d) Public participation in plan development. (1) Informally seek suggestions from members of the public in its assessment area(s) covered by the plan while developing the plan; (2) Once the bank has developed a plan, formally solicit public comment on the plan for at least 30 days by publishing notice in at least one newspaper of general circulation in each assessment area covered by the plan; and (3) During the period of formal public comment, make copies of the plan available for review by the public at no cost at all offices of the bank in any assessment area covered by the plan and provide copies of the plan upon request for a reasonable fee to cover copying and mailing, if applicable. (e) Submission of plan. (f) Plan content Measurable goals. (ii) A bank shall address in its plan all three performance categories and, unless the bank has been designated as a wholesale or limited purpose bank, shall emphasize lending and lending-related activities. Nevertheless, a different emphasis, including a focus on one or more performance categories, may be appropriate if responsive to the characteristics and credit needs of its assessment area(s), considering public comment and the bank's capacity and constraints, product offerings, and business strategy. (2) Confidential information. (3) Satisfactory and outstanding goals. (4) Election if satisfactory goals not substantially met. (g) Plan approval Timing. (2) Public participation. (3) Criteria for evaluating plan. (i) The extent and breadth of lending or lending-related activities, including, as appropriate, the distribution of loans among different geographies, businesses and farms of different sizes, and individuals of different income levels, the extent of community development lending, and the use of innovative or flexible lending practices to address credit needs; (ii) The amount and innovativeness, complexity, and responsiveness of the bank's qualified investments; and (iii) The availability and effectiveness of the bank's systems for delivering retail banking services and the extent and innovativeness of the bank's community development services. (h) Plan amendment. (i) Plan assessment. § 345.28 Assigned ratings. (a) Ratings in general. (b ) Lending, investment, and service tests. (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. (c) Effect of evidence of discriminatory or other illegal credit practices. (i) Discrimination against applicants on a prohibited basis in violation, for example, of the Equal Credit Opportunity Act or the Fair Housing Act; (ii) Violations of the Home Ownership and Equity Protection Act; (iii) Violations of section 5 of the Federal Trade Commission Act; (iv) Violations of section 8 of the Real Estate Settlement Procedures Act; and (v) Violations of the Truth in Lending Act provisions regarding a consumer's right of rescission. (2) In determining the effect of evidence of practices described in paragraph (c)(1) of this section on the bank's assigned rating, the FDIC 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. § 345.29 Effect of CRA performance on applications. (a) CRA performance. (1) The establishment of a domestic branch or other facility with the ability to accept deposits; (2) The relocation of the bank's main office or a branch; (3) The merger, consolidation, acquisition of assets, or assumption of liabilities; and (4) Deposit insurance for a newly chartered financial institution. (b) New financial institutions. A newly chartered financial institution shall submit with its application for deposit insurance a description of how it will meet its CRA objectives. The FDIC takes the description into account in considering the application and may deny or condition approval on that basis. (c) Interested parties. (d) Denial or conditional approval of application. Subpart C—Records, Reporting, and Disclosure Requirements § 345.41 Assessment area delineation. (a) In general. (b) Geographic area(s) for wholesale or limited purpose banks. (c) Geographic area(s) for other banks. (1) Consist generally of one or more MSAs or metropolitan divisions (using the MSA or metropolitan division boundaries that were in effect as of January 1 of the calendar year in which the delineation is made) or one or more contiguous political subdivisions, such as counties, cities, or towns; and (2) Include the geographies in which the bank has its main office, its branches, and its deposit-taking RSFs, as well as the surrounding geographies in which the bank has originated or purchased a substantial portion of its loans (including home mortgage loans, small business and small farm loans, and any other loans the bank chooses, such as those consumer loans on which the bank elects to have its performance assessed). (d) Adjustments to geographic area(s). (e) Limitations on the delineation of an assessment area. (1) Must consist only of whole geographies; (2) May not reflect illegal discrimination; (3) May not arbitrarily exclude low- or moderate-income geographies, taking into account the bank's size and financial condition; and (4) May not extend substantially beyond an MSA boundary or beyond a state boundary unless the assessment area is located in a multistate MSA. If a bank serves a geographic area that extends substantially beyond a state boundary, the bank shall delineate separate assessment areas for the areas in each state. If a bank serves a geographic area that extends substantially beyond an MSA boundary, the bank shall delineate separate assessment areas for the areas inside and outside the MSA. (f) Banks serving military personnel. (g) Use of assessment area(s). § 345.42 Data collection, reporting, and disclosure. (a) Loan information required to be collected and maintained. (1) A unique number or alpha-numeric symbol that can be used to identify the relevant loan file; (2) The loan amount at origination; (3) The loan location; and (4) An indicator whether the loan was to a business or farm with gross annual revenues of $1 million or less. (b) Loan information required to be reported. (1) Small business and small farm loan data. (i) With an amount at origination of $100,000 or less; (ii) With an amount at origination of more than $100,000 but less than or equal to $250,000; (iii) With an amount at origination of more than $250,000; and (iv) To businesses and farms with gross annual revenues of $1 million or less (using the revenues that the bank considered in making its credit decision); (2) Community development loan data. (3) Home mortgage loans. (c) Optional data collection and maintenance Consumer loans. (i) A unique number or alpha-numeric symbol that can be used to identify the relevant loan file; (ii) The loan amount at origination or purchase; (iii) The loan location; and (iv) The gross annual income of the borrower that the bank considered in making its credit decision. (2) Other loan data. (d) Data on affiliate lending. (e) Data on lending by a consortium or a third party. (f) Small banks electing evaluation under the lending, investment, and service tests. (g) Assessment area data. (h) CRA Disclosure Statement. (1) For each county (and for each assessment area smaller than a county) with a population of 500,000 persons or fewer in which the bank reported a small business or small farm loan: (i) The number and amount of small business and small farm loans reported as originated or purchased located in low-, moderate-, middle-, and upper-income geographies; (ii) A list grouping each geography according to whether the geography is low-, moderate-, middle-, or upper-income; (iii) A list showing each geography in which the bank reported a small business or small farm loan; and (iv) The number and amount of small business and small farm loans to businesses and farms with gross annual revenues of $1 million or less; (2) For each county (and for each assessment area smaller than a county) with a population in excess of 500,000 persons in which the bank reported a small business or small farm loan: (i) The number and amount of small business and small farm loans reported as originated or purchased located in geographies with median income relative to the area median income of less than 10 percent, 10 or more but less than 20 percent, 20 or more but less than 30 percent, 30 or more but less than 40 percent, 40 or more but less than 50 percent, 50 or more but less than 60 percent, 60 or more but less than 70 percent, 70 or more but less than 80 percent, 80 or more but less than 90 percent, 90 or more but less than 100 percent, 100 or more but less than 110 percent, 110 or more but less than 120 percent, and 120 percent or more; (ii) A list grouping each geography in the county or assessment area according to whether the median income in the geography relative to the area median income is less than 10 percent, 10 or more but less than 20 percent, 20 or more but less than 30 percent, 30 or more but less than 40 percent, 40 or more but less than 50 percent, 50 or more but less than 60 percent, 60 or more but less than 70 percent, 70 or more but less than 80 percent, 80 or more but less than 90 percent, 90 or more but less than 100 percent, 100 or more but less than 110 percent, 110 or more but less than 120 percent, and 120 percent or more; (iii) A list showing each geography in which the bank reported a small business or small farm loan; and (iv) The number and amount of small business and small farm loans to businesses and farms with gross annual revenues of $1 million or less; (3) The number and amount of small business and small farm loans located inside each assessment area reported by the bank and the number and amount of small business and small farm loans located outside the assessment area(s) reported by the bank; and (4) The number and amount of community development loans reported as originated or purchased. (i) Aggregate disclosure statements. (j) Central data depositories. § 345.43 Content and availability of public file. (a) Information available to the public. (1) All written comments received from the public for the current year and each of the prior two calendar years that specifically relate to the bank's performance in helping to meet community credit needs, and any response to the comments by the bank, if neither the comments nor the responses contain statements that reflect adversely on the good name or reputation of any persons other than the bank or publication of which would violate specific provisions of law; (2) A copy of the public section of the bank's most recent CRA Performance Evaluation prepared by the FDIC. The bank shall place this copy in the public file within 30 business days after its receipt from the FDIC; (3) A list of the bank's branches, their street addresses, and geographies; (4) A list of branches opened or closed by the bank during the current year and each of the prior two calendar years, their street addresses, and geographies; (5) A list of services (including hours of operation, available loan and deposit products, and transaction fees) generally offered at the bank's branches and descriptions of material differences in the availability or cost of services at particular branches, if any. At its option, a bank may include information regarding the availability of alternative systems for delivering retail banking services ( e.g., (6) A map of each assessment area showing the boundaries of the area and identifying the geographies contained within the area, either on the map or in a separate list; and (7) Any other information the bank chooses. (b) Additional information available to the public Banks other than small banks. (i) If the bank has elected to have one or more categories of its consumer loans considered under the lending test, for each of these categories, the number and amount of loans: (A) To low-, moderate-, middle-, and upper-income individuals; (B) Located in low-, moderate-, middle-, and upper-income census tracts; and (C) Located inside the bank's assessment area(s) and outside the bank's assessment area(s); and (ii) The bank's CRA Disclosure Statement. The bank shall place the statement in the public file within three business days of its receipt from the FDIC. (2) Banks required to report Home Mortgage Disclosure Act (HMDA) data. www.consumerfinance.gov/hmda. (3) Small banks. (i) The bank's loan-to-deposit ratio for each quarter of the prior calendar year and, at its option, additional data on its loan-to-deposit ratio; and (ii) The information required for other banks by paragraph (b)(1) of this section, if the bank has elected to be evaluated under the lending, investment, and service tests. (4) Banks with strategic plans. (5) Banks with less than satisfactory ratings. (c) Location of public information. (1) At the main office and, if an interstate bank, at one branch office in each state, all information in the public file; and (2) At each branch: (i) A copy of the public section of the bank's most recent CRA Performance Evaluation and a list of services provided by the branch; and (ii) Within five calendar days of the request, all the information in the public file relating to the assessment area in which the branch is located. (d) Copies. (e) Updating. § 345.44 Public notice by banks. A bank shall provide in the public lobby of its main office and each of its branches the appropriate public notice set forth in Appendix B of this part. Only a branch of a bank having more than one assessment area shall include the bracketed material in the notice for branch offices. Only a bank that is an affiliate of a holding company shall include the next to the last sentence of the notices. A bank shall include the last sentence of the notices only if it is an affiliate of a holding company that is not prevented by statute from acquiring additional banks. § 345.45 Publication of planned examination schedule. The FDIC publishes at least 30 days in advance of the beginning of each calendar quarter a list of banks scheduled for CRA examinations in that quarter. Appendix A to Part 345—Ratings (a) Ratings in general. (2) 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 Lending performance rating. (i) Outstanding. (A) 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); (B) A substantial majority of its loans are made in its assessment area(s); (C) An excellent geographic distribution of loans in its assessment area(s); (D) 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; (E) 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; (F) 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 (G) It is a leader in making community development loans. (ii) High satisfactory. (A) 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); (B) A high percentage of its loans are made in its assessment area(s); (C) A good geographic distribution of loans in its assessment area(s); (D) 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; (E) 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; (F) 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 (G) It has made a relatively high level of community development loans. (iii) Low satisfactory. (A) 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); (B) An adequate percentage of its loans are made in its assessment area(s); (C) An adequate geographic distribution of loans in its assessment area(s); (D) 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; (E) 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; (F) 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 (G) It has made an adequate level of community development loans. (iv) Needs to improve. (A) 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); (B) A small percentage of its loans are made in its assessment area(s); (C) A poor geographic distribution of loans, particularly to low- or moderate-income geographies, in its assessment area(s); (D) 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; (E) 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; (F) 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 (G) It has made a low level of community development loans. (v) Substantial noncompliance. (A) 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); (B) A very small percentage of its loans are made in its assessment area(s); (C) A very poor geographic distribution of loans, particularly to low- or moderate-income geographies, in its assessment area(s); (D) 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; (E) 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; (F) 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 (G) It has made few, if any, community development loans. (2) Investment performance rating. (i) Outstanding. (A) An excellent level of qualified investments, particularly those that are not routinely provided by private investors, often in a leadership position; (B) Extensive use of innovative or complex qualified investments; and (C) Excellent responsiveness to credit and community development needs. (ii) High satisfactory. (A) A significant level of qualified investments, particularly those that are not routinely provided by private investors, occasionally in a leadership position; (B) Significant use of innovative or complex qualified investments; and (C) Good responsiveness to credit and community development needs. (iii) Low satisfactory. (A) An adequate level of qualified investments, particularly those that are not routinely provided by private investors, although rarely in a leadership position; (B) Occasional use of innovative or complex qualified investments; and (C) Adequate responsiveness to credit and community development needs. (iv) Needs to improve. (A) A poor level of qualified investments, particularly those that are not routinely provided by private investors; (B) Rare use of innovative or complex qualified investments; and (C) Poor responsiveness to credit and community development needs. (v) Substantial noncompliance. (A) Few, if any, qualified investments, particularly those that are not routinely provided by private investors; (B) No use of innovative or complex qualified investments; and (C) Very poor responsiveness to credit and community development needs. (3) Service performance rating. (i) Outstanding. (A) Its service delivery systems are readily accessible to geographies and individuals of different income levels in its assessment area(s); (B) 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; (C) 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 (D) It is a leader in providing community development services. (ii) High satisfactory. (A) Its service delivery systems are accessible to geographies and individuals of different income levels in its assessment area(s); (B) 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; (C) 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 (D) It provides a relatively high level of community development services. (iii) Low satisfactory. (A) Its service delivery systems are reasonably accessible to geographies and individuals of different income levels in its assessment area(s); (B) 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; (C) 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 (D) It provides an adequate level of community development services. (iv) Needs to improve. (A) 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; (B) 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; (C) 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 (D) It provides a limited level of community development services. (v) Substantial noncompliance. (A) 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; (B) 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; (C) 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 (D) It provides few, if any, community development services. (c) Wholesale or limited purpose banks. (1) Outstanding. (i) A high level of community development loans, community development services, or qualified investments, particularly investments that are not routinely provided by private investors; (ii) Extensive use of innovative or complex qualified investments, community development loans, or community development services; and (iii) Excellent responsiveness to credit and community development needs in its assessment area(s). (2) Satisfactory. (i) An adequate level of community development loans, community development services, or qualified investments, particularly investments that are not routinely provided by private investors; (ii) Occasional use of innovative or complex qualified investments, community development loans, or community development services; and (iii) Adequate responsiveness to credit and community development needs in its assessment area(s). (3) Needs to improve. (i) A poor level of community development loans, community development services, or qualified investments, particularly investments that are not routinely provided by private investors; (ii) Rare use of innovative or complex qualified investments, community development loans, or community development services; and (iii) Poor responsiveness to credit and community development needs in its assessment area(s). (4) Substantial noncompliance. (i) Few, if any, community development loans, community development services, or qualified investments, particularly investments that are not routinely provided by private investors; (ii) No use of innovative or complex qualified investments, community development loans, or community development services; and (iii) Very poor responsiveness to credit and community development needs in its assessment area(s). (d) Banks evaluated under the small bank performance standards Lending test ratings Eligibility for a satisfactory lending test rating. (A) 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, other lending-related activities such as loan originations for sale to the secondary markets and community development loans and qualified investments; (B) A majority of its loans and, as appropriate, other lending-related activities, are in its assessment area; (C) 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); (D) A record of taking appropriate action, when 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 (E) A reasonable geographic distribution of loans given the bank's assessment area(s). (ii) Eligibility for an “outstanding” lending test rating. (iii) Needs to improve or substantial noncompliance ratings. (2) Community development test ratings for intermediate small banks Eligibility for a satisfactory community development test rating. (ii) Eligibility for an outstanding community development test rating. (iii) Needs to improve or substantial noncompliance ratings. (3) Overall rating Eligibility for a satisfactory overall rating. (ii) Eligibility for an outstanding overall rating. (B) A small bank that is not an intermediate small bank that meets each of the standards for a “satisfactory” rating under the lending test 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 FDIC 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 enhance credit availability in its assessment area(s). (iii) Needs to improve or substantial noncompliance overall ratings. (e) Strategic plan assessment and rating Satisfactory goals. (2) Outstanding goals. (3) Rating. (i) If the bank substantially achieves its plan goals for a satisfactory rating, the FDIC will rate the bank's performance under the plan as “satisfactory.” (ii) If the bank exceeds its plan goals for a satisfactory rating and substantially achieves its plan goals for an outstanding rating, the FDIC will rate the bank's performance under the plan as “outstanding.” (iii) If the bank fails to meet substantially its plan goals for a satisfactory rating, the FDIC 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 § 345.27(f)(4). Appendix B to Part 345—CRA Notice (a) Notice for main offices and, if an interstate bank, one branch office in each state. Community Reinvestment Act Notice Under the Federal Community Reinvestment Act (CRA), the Federal Deposit Insurance Corporation (FDIC) evaluates our record of helping to meet the credit needs of this community consistent with safe and sound operations. The FDIC also takes this record into account when deciding on certain applications submitted by us. Your involvement is encouraged. You are entitled to certain information about our operations and our performance under the CRA, including, for example, information about our branches, such as their location and services provided at them; the public section of our most recent CRA Performance Evaluation, prepared by the FDIC; and comments received from the public relating to our performance in helping to meet community credit needs, as well as our responses to those comments. You may review this information today. At least 30 days before the beginning of each quarter, the FDIC publishes a nationwide list of the banks that are scheduled for CRA examination in that quarter. This list is available from the Regional Director, FDIC (address). You may send written comments about our performance in helping to meet community credit needs to (name and address of official at bank) and FDIC Regional Director. You may also submit comments electronically through the FDIC's website at www.fdic.gov/regulations/cra. You may ask to look at any comments received by the FDIC Regional Director. You may also request from the FDIC Regional Director an announcement of our applications covered by the CRA filed with the FDIC. 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. (b) Notice for branch offices. Community Reinvestment Act Notice Under the Federal Community Reinvestment Act (CRA), the Federal Deposit Insurance Corporation (FDIC) evaluates our record of helping to meet the credit needs of this community consistent with safe and sound operations. The FDIC also takes this record into account when deciding on certain applications submitted by us. Your involvement is encouraged. You are entitled to certain information about our operations and our performance under the CRA. You may review today the public section of our most recent CRA evaluation, prepared by the FDIC, and a list of services provided at this branch. You may also have access to the following additional information, which we will make available to you at this branch within five calendar days after you make a request to us: (1) a map showing the assessment area containing this branch, which is the area in which the FDIC evaluates our CRA performance in this community; (2) information about our branches in this assessment area; (3) a list of services we provide at those locations; (4) data on our lending performance in this assessment area; and (5) copies of all written comments received by us that specifically relate to our CRA performance in this assessment area, and any responses we have made to those comments. If we are operating under an approved strategic plan, you may also have access to a copy of the plan. [If you would like to review information about our CRA performance in other communities served by us, the public file for our entire bank is available at (name of office located in state), located at (address).] At least 30 days before the beginning of each quarter, the FDIC publishes a nationwide list of the banks that are scheduled for CRA examination in that quarter. This list is available from the Regional Director, FDIC (address). You may send written comments about our performance in helping to meet community credit needs to (name and address of official at bank) and the FDIC Regional Director. You may also submit comments electronically through the FDIC's website at www.fdic.gov/regulations/cra. You may ask to look at any comments received by the FDIC Regional Director. You may also request from the FDIC Regional Director an announcement of our applications covered by the CRA filed with the FDIC. 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. [89 FR 7205, Feb. 1, 2024; 89 FR 22069, Mar. 29, 2024] Effective Date Note: At 89 FR 7210, Feb. 1, 2024, appendix G to part 345 was added, effective Apr. 1, 2024, through Jan. 1, 2031. Editorial Note: At 90 FR 60559, Dec. 29, 2025, appendix G to part 345 was amended, effective Feb. 27, 2026; however, the amendment could not be incorporated due to inaccurate amendatory instruction.

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