Federal Reserve Bank of Dallas

A Banker’s
Quick Reference
Guide to CRA
As amended effective September 1, 2005

This publication is a guide to the CRA regulation and examination procedures.

It is intended for bank CEOs, presidents, and CRA and compliance officers
as a tool for accessing CRA information quickly. Refer to Regulation BB and agency examination
procedures for more detailed information.

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 Table of Contents

Definitions 1
Small Banks 2
Intermediate Small Banks 4
Large Banks 6
Strategic Plan Option 10
Public File Requirements 11
CRA Ratings 12

Terms Used Throughout This Document

AA – assessment area(s)
CD – community development
CRA – Community Reinvestment Act
HMDA – Home Mortgage Disclosure Act
LMI – low- and moderate-income
LTD – loan-to-deposit

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 Definitions

Assessment Area(s) — One or more of the geographic area(s) that Income Level – Geography
is delineated by the bank and used by the regulatory agency in Low-Income — Median family income less than 50 percent of the
evaluating the bank’s record of helping to meet the credit needs of area median income
its community. It must, in general, consist of one or more MSAs or Moderate-Income — Median family income at least 50 percent
metropolitan divisions or one or more contiguous political subdivi- and less than 80 percent of the area median income
sions, such as counties, cities or towns. It must include geographies Middle-Income — Median family income at least 80 percent and
in which the bank has its main office, branches and deposit-taking less than 120 percent of the area median income
ATMs, as well as the surrounding geographies in which the bank has Upper-Income — Median family income at least 120 percent of the
originated or purchased a substantial portion of its loans. A bank may area median income
adjust the boundaries of its AA to include only the portion of a political Income Level – Individual
subdivision that it reasonably can be expected to serve. An AA must Low-Income — Less than 50 percent of the area median income
consist only of whole geographies, may not reflect illegal discrimina- Moderate-Income — At least 50 percent and less than 80 percent
tion, may not arbitrarily exclude LMI geographies and may not extend of the area median income
substantially beyond an MSA boundary or beyond a state boundary, Middle-Income — At least 80 percent and less than 120 percent
unless the AA is located in a multistate MSA. of the area median income
Upper-Income — At least 120 percent of area median income
Community Development — Encompasses affordable housing
(including multifamily rental housing) for LMI individuals; community Limited Purpose Bank — A bank that offers only a narrow product
services targeted to LMI individuals; activities that promote economic line, such as credit card or motor vehicle loans, to a regional or
development by financing businesses or farms that meet the size eli- broader market and has received designation as a limited purpose
gibility standards of the Small Business Administration’s Development bank from its supervisory agency.
Company or Small Business Investment Company programs or have
gross annual revenues of $1 million or less; or activities that revitalize Performance Context — A bank’s performance is judged in the con-
or stabilize LMI geographies, designated disaster areas or distressed text of information about the bank and its AA, including
or underserved non-metropolitan middle-income geographies desig- – demographic data on median income levels, distribution of
nated by the Board of Governors, FDIC and OCC. household income, nature of housing stock, housing costs and
other relevant data
Community Development Loan — A loan that has as its primary – lending, investment and service opportunities
purpose community development; (except for wholesale or limited – the bank’s product offerings and business strategy, capacity
purpose banks) has not been reported or collected by the bank or and constraints, past performance and the performance of
an affiliate for consideration in the bank’s assessment as a home similarly situated lenders
mortgage, small business, small farm or consumer loan, unless it is – the bank’s public file and any written comments about the
a multifamily dwelling loan; and benefits the bank’s AA or a broader bank’s CRA performance
statewide or regional area that includes the bank’s AA. – any other relevant information

Community Development Service — A service that has as its primary Qualified Investment — A lawful investment, deposit, membership
purpose community development, is related to the provision of finan- share or grant that has as its primary purpose community develop-
cial services, has not been considered in the evaluation of the bank’s ment.
retail banking services, benefits the bank’s AA or a broader statewide
or regional area that includes the bank’s AA and has not been claimed Small Bank — A bank that, as of December 31 of either of the prior
by other affiliated institutions. two calendar years, had total assets of less than $1 billion. Interme-
diate Small Bank means a small bank with assets of at least $250
Discriminatory or Other Illegal Credit Practices — Activities that million as of December 31 of both of the prior two calendar years and
result in violations of an applicable law, rule or regulation, including, less than $1 billion as of December 31 of either of the prior two calen-
but not limited to, the Equal Credit Opportunity Act; the Fair Housing dar years. Asset size designation will be adjusted annually based on
Act; the Home Ownership and Equity Protection Act; section 5 of the the year-to-year change in the average of the consumer price index
Federal Trade Commission Act; section 8 of the Real Estate Settlement for urban wage earners and clerical workers.
Procedures Act; and the Truth in Lending Act provisions regarding a
consumer’s right of rescission. Wholesale Bank — A bank that is not in the business of extending
home mortgage, small business, small farm or consumer loans to
Geography — A census tract delineated by the U.S. Bureau of the retail customers and has received designation as a wholesale bank
Census in the most recent decennial census. from its supervisory agency.

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 Small Banks
Performance Standards Examiner Review
Loan-to-deposit ratio Loan-to-deposit analysis
– given the bank’s size and financial – Using Call Reports or UBPR data, calculate an average LTD ratio using quarterly LTDs
condition since the last exam.
– credit needs of the AA – Determine the reasonableness of the average LTD ratio in light of the performance context.
– other lending-related activities – If the LTD ratio does not appear reasonable, additional consideration will be given to
– considering seasonal variations n number and dollar volume of loans sold to the secondary market.
n innovativeness or complexity of CD loans and qualified investments.
Percentage of loans and other lending-
related activities in the AA Compare credit extended inside and outside AA.
– If available, use HMDA data, bank loan and other reports to analyze the extent of lending
Record of lending and other lending-
inside and outside AA, after testing the reports for accuracy.
related activities to
– If loan data are not available, accurate or comprehensive, sample the loans originated,
– borrowers of different income
purchased or committed to and calculate the percentage of loan volume (by number and
levels
dollar volume) within the AA.
– businesses and farms of different
– If majority of the loans are not in the AA, thus not meeting the standards for satisfactory,
sizes
give additional consideration to the performance context to determine the effect on overall
Geographic distribution of loans performance.

Action taken in response to written Geographic distribution of credit

complaints with respect to CRA – Determine if there is a sufficient number and income distribution of geographies to provide
performance in the AA meaningful analysis. If yes,
n determine distribution of loans among low-, moderate-, middle- and upper-income
geographies, using available bank loan data or sample. Identify groups of geographies,
by income categories, where there is little or no loan penetration.
Income and revenue distribution of credit
– If available, use data about borrower income (individuals) or revenues (businesses) to
determine the distribution of loans by borrower income and by business revenues.
Identify categories of borrowers by income or business revenues that have little or no
loan penetration.
If sufficient geographic or income/revenue data are not available to do an analysis of the
distribution of credit, consider alternatives such as analyzing geographic distribution by
street address rather than geography.
If there are geographies or income categories of low penetration, form conclusions about the
reasons in light of the performance context.
Review complaints relating to the bank’s CRA performance.
– Evaluate the bank’s record of taking action, if warranted, in response to written complaints
about its CRA performance.
If the bank chooses, review its performance in making qualified investments and providing
services. Note: Performance with respect to qualified investments and services may be used
to enhance a satisfactory rating but may not be used to lower a rating.
– Consider dollar volume, impact and innovativeness or complexity of qualified investments.
– Consider number of branches and ATMs and the services they provide, accessibility to
LMI geographies, alternative service delivery systems, and record of opening and closing
branches.

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 Small Banks – Performance Ratings
Needs to Substantial
Characteristic Outstanding Satisfactory Improve Noncompliance
Loan-to-Deposit Ratio (con- MORE THAN reasonable REASONABLE LESS THAN UNREASONABLE
sidering seasonal variations given the bank’s size, financial REASONABLE
and taking into account condition and AA credit needs.
lending-related activities)

Assessment Area(s) A SUBSTANTIAL MAJORITY of MAJORITY MAJORITY SUBSTANTIAL MAJORITY

Concentration loans and other lending-related
activities are IN the AA. IN OUTSIDE OUTSIDE

Borrower’s Profile EXCELLENT penetration among REASONABLE POOR VERY POOR

individuals of different income
(including LMI) levels and busi-
nesses and farms of different
sizes.

Geographic Distribution of The geographic distribution

Loans of loans reflects EXCELLENT REASONABLE POOR VERY POOR
dispersion throughout the
AA.

Response to Substantiated The bank has taken

Complaints NOTEWORTHY, CREATIVE APPROPRIATE INADEQUATE UNRESPONSIVE
action in response to
substantiated CRA complaints.

Investments The investment record

ENHANCES credit availability N/A N/A N/A
in AA.

Services Record of providing

branches and/or other services
ENHANCES credit availability N/A N/A N/A
in AA.

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 Intermediate Small Banks – Lending Test
Performance Standards Examiner Review
Loan-to-deposit ratio Loan-to-deposit analysis
– given the bank’s size and financial – Using Call Reports or UBPR data, calculate an average LTD ratio using quarterly LTDs
condition since the last exam.
– credit needs of the AA – Determine the reasonableness of the average LTD ratio in light of the performance context.
– other lending-related activities – If the LTD ratio does not appear reasonable, additional consideration will be given to
– considering seasonal variations n number and dollar volume of loans sold to the secondary market.
n innovativeness or complexity of CD loans and qualified investments.
Percentage of loans and other lending-
related activities in the bank’s Compare credit extended inside and outside AA.
AA – If available, use HMDA data, bank loan and other reports to analyze the extent of lending
inside and outside AA, after testing the reports for accuracy.
Record of lending and other lending- – If loan data are not available, accurate or comprehensive, sample the loans originated,
related activities to purchased or committed to and calculate the percentage of loan volume (by number and
– borrowers of different income dollar volume) within the AA.
levels – If majority of the loans are not in the AA, thus not meeting the standards for satisfactory,
– businesses and farms of different give additional consideration to the performance context to determine the effect on overall
sizes performance.
Geographic distribution of loans Geographic distribution of credit
Action taken in response to written – Determine if there is a sufficient number and income distribution of geographies to provide
complaints with respect to CRA meaningful analysis. If yes,
performance in the AA n determine distribution of loans among low-, moderate-, middle- and upper-income
geographies using available bank loan data or sample. Identify groups of geographies,
by income categories, where there is little or no loan penetration.
Income and revenue distribution of credit
– If available, use data about borrower income (individuals) or revenues (businesses) to
determine the distribution of loans by borrower income and by business revenues.
Identify categories of borrowers by income or business revenues that have little or no
loan penetration.
If sufficient geographic or income/revenue data are not available to do an analysis of the
distribution of credit, consider alternatives such as analyzing geographic distribution by
street address rather than geography.
If there are geographies or income categories of low penetration, form conclusions about the
reasons in light of the performance context.
Review complaints relating to the bank’s CRA performance.
– Evaluate the bank’s record of taking action, if warranted, in response to written complaints
about its CRA performance.

Intermediate Small Banks – Community Development Test

Performance Standards Examiner Review
Number and amount of CD loans and Identify CD loans, qualified investments and CD services of the bank through:
qualified investments – discussions with management.
– HMDA data collected by the bank, as applicable.
Extent of CD services provided – investment portfolios.
Responsiveness of CD loans, qualified – any other relevant financial records.
investments and CD services to CD – materials available to the public.
needs and opportunities Ensure activities qualify as CD.

(Optional) CD loans, qualified investments Evaluate CD activities using performance context information and consider:
and CD services provided by affiliates, – the number and dollar amount of CD loans and qualified investments.
if they are not claimed by any other in- – the extent of CD services, including the provision and availability of services to LMI people,
stitution, and CD lending by consortia including through branches and other facilities in LMI areas.
or third parties will be considered. – the responsiveness of CD loans, qualified investments and CD services to CD needs and
opportunities.

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 Intermediate Small Banks – Lending Performance Ratings
Needs to Substantial
Characteristic Outstanding Satisfactory Improve Noncompliance
Loan-to-Deposit Ratio (con- MORE THAN reasonable REASONABLE LESS THAN UNREASONABLE
sidering seasonal variations given the bank’s size, financial REASONABLE
and taking into account condition and AA credit needs.
lending-related activities)

Assessment Area(s) A SUBSTANTIAL MAJORITY of MAJORITY MAJORITY SUBSTANTIAL MAJORITY

Concentration loans and other lending-related
activities are IN the AA. IN OUTSIDE OUTSIDE

Borrower’s Profile EXCELLENT penetration among REASONABLE POOR VERY POOR

individuals of different income
(including LMI) levels and
businesses and farms of
different sizes.

The geographic distribution

Geographic Distribution of of loans reflects EXCELLENT REASONABLE POOR VERY POOR
Loans dispersion throughout the
AA.

The bank has taken

Response to Substantiated NOTEWORTHY, CREATIVE APPROPRIATE INADEQUATE UNRESPONSIVE
Complaints action in response to
substantiated CRA complaints.

Intermediate Small Banks – Community Development Performance Ratings

Substantial
Outstanding Satisfactory Needs to Improve Noncompliance
The bank’s CD performance demon-
strates EXCELLENT responsiveness to ADEQUATE POOR VERY POOR
CD needs of its AA through CD loans,
qualified investments and CD services,
as appropriate, considering the bank’s
capacity and the need and availability of
such opportunities for CD in the bank’s
AA.

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 Large Banks – Lending Test
Performance Standards Examiner Review
Number and amount of loans in the Identify loans to be evaluated by reviewing
AA – most recent HMDA and CRA disclosure statements.
– interim HMDA and CRA data collected.
Geographic distribution of loans – sample of consumer loans (if a substantial majority of business).
– proportion of loans in AA – other loan information provided by the bank.
– dispersion of lending in
AA Verify accuracy of loan data collected and/or reported.
– number and amount of loans by – Affiliate loans may be claimed by only one affiliate.
geography classification (low-, – CD loans meet definition.
moderate-, middle- and upper- – The amount of third party, consortia or affiliate lending may not account for more than the
income) in AA percentage share of the bank’s participation or investment.
– If reported, consumer loans must include all loans in a particular category (e.g., motor
Distribution based on borrower charac- vehicle).
teristics
– number and amount of home Evaluate lending volume both in number and dollar amount of loans within the AA for each type
mortgage loans to low-, moderate-, of loan, giving consideration to the performance context.
middle- and upper-income
Analyze the geographic distribution of lending.
individuals
– Review information provided by the bank for insight into the reasonableness of its
– number and amount of small busi-
geographic distribution.
ness and small farm loans by loan
– Perform independent analysis as necessary. The analysis should consider:
amount at origination and to small
n number, dollar volume and percentage of loans made:
businesses and small farms with
– inside and outside AA.
gross annual revenues of
– in each geography and each income category of geography.
$1 million or less
n number of geographies penetrated in each income category.
– (optional) number and amount of
n number and dollar volume of housing loans in each geography compared with the
consumer loans to low-, moderate-,
number of housing units in each geography.
middle- and upper-income indi-
n number and dollar volume of small business or farm loans in each geography compared
viduals
with the number of small businesses or farms in each geography.
CD loans n whether any gaps exist in lending activity for each income category, by identifying

– number and amount groups of contiguous geographies that have no or low loan penetration relative to the
– complexity and innovativeness other geographies.
– If contiguous geographies have abnormally low penetration, the examiner may
Innovative or flexible lending practices to compare the bank’s performance with that of other area lenders. Note: Banks are not
address the needs of LMI individuals required to lend in every geography.
or geographies
Analyze distribution of lending by borrower characteristics.
(Optional) Affiliate lending, if not claimed – Review information provided by the bank for insight into the reasonableness of its lending
by any other institution, and lending distribution.
by a consortium or third party will be – Supplement with independent analysis of lending distribution by borrower characteristics
considered. as necessary and applicable, giving consideration to the:
n number, dollar volume and percentage of home mortgages made to low-, moderate-,
middle- and upper-income borrowers and make a percentage comparison of total home
mortgage loans with the population in each income category.
n number and dollar volume of small loans to businesses or farms by loan size of $100,000
or less, more than $100,000 but less than or equal to $250,000, and more than $250,000.
n number and dollar amount of small loans to businesses or farms that had annual
revenues of less than $1 million, and compare with total reported number and amount of
small loans to businesses or farms.
n loans made outside the AA if borrowers within the AA are adequately served and it
would enhance the assessment of the bank’s performance.

Review CD lending to determine the CD lending opportunities, the bank’s responsiveness and the
extent of its leadership.

Determine whether lending performance is enhanced by offering innovative or more flexible loan
products by considering:
– if LMI borrowers are served in new ways or the loans serve creditworthy borrowers not
previously served.
– the success of each product, including number and dollar volume of originations.

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 Large Banks – Data Collection
General Optional
Collect and maintain data on loans to small businesses or farms Collect and maintain data for consumer loans (originated and
captured in Schedule RC-C of the Call Report (loans originated or purchased).
purchased). – unique loan number or alphanumeric symbol
– unique loan number or alphanumeric symbol – dollar amount of the loan at origination
– dollar amount of the loan at origination – location of the loan
– location of the loan – gross annual income of the borrower that is considered in
– Indicate whether the gross annual revenues of the business or making the credit decision
farm are $1 million or less.
Any other information concerning lending performance the bank
Submit annually by March 1 the following data: chooses to provide
– for each geography, loans to small businesses and farms (loans
originated or purchased), including
n aggregate number and dollar amount of loans at origination

in loan size categories of $100,000 or less, more than $100,000

but less than or equal to $250,000, and more than $250,000.
n aggregate number and dollar amount of loans to businesses
and farms with gross revenues of $1 million or less.
– aggregate number and dollar amount of CD loans (originated or
purchased).
– home mortgage loans as required under Regulation C (HMDA).
– a list for each assessment area showing the geographies
within the area.
– affiliate lending if affiliate lending is being considered.
– consortium or third-party lending if consortium or third-party
lending is being considered.

Large Banks – Lending Performance Ratings

High Low Needs to Substantial
Characteristic Outstanding Satisfactory Satisfactory Improve Noncompliance
Lending Activity Lending levels reflect
EXCELLENT responsiveness GOOD ADEQUATE POOR VERY POOR
to AA credit needs.

Assessment Area(s) A SUBSTANTIAL MAJOR- HIGH ADEQUATE SMALL VERY SMALL

Concentration ITY of loans are made in the PERCENTAGE PERCENTAGE PERCENTAGE PERCENTAGE
bank’s AA.

Geographic Distribution The geographic distribution

of Loans of loans reflects EXCELLENT GOOD ADEQUATE POOR VERY POOR
penetration throughout the
AA.

Borrower’s Profile The distribution of borrowers

reflects, given the product
lines offered, EXCELLENT GOOD ADEQUATE POOR VERY POOR
penetration among customers
of different income levels and
businesses of different sizes.

Responsiveness to Credit Exhibits an EXCELLENT GOOD ADEQUATE POOR VERY POOR

Needs of Low-Income record of serving the credit
Individuals and Geographies needs of low-income
and Very Small Businesses individuals and areas and
very small businesses.

Community Development A LEADER in making MAKES A MAKES AN MAKES A MAKES FEW,

Lending Activities CD loans. RELATIVELY HIGH ADEQUATE LEVEL LOW LEVEL IF ANY
LEVEL

Product Innovation Makes EXTENSIVE USE of USE LIMITED USE LITTLE USE NO USE
innovative and/or flexible
lending practices in serving
AA credit needs.

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 Large Banks – Investment Test
Performance Standards Examiner Review
Dollar amount of qualified investments Identify qualified investments.
– Review investment portfolio.
Innovativeness and complexity of qualified – At bank’s option, review affiliate’s investment portfolio.
investments – Include qualified investments made since previous examination and qualified investments
made prior to last examination still outstanding.
Responsiveness of qualified investments – Include qualifying grants, donations or in-kind contributions of property made since last
to credit and CD needs examination that have a primary purpose of CD.
Evaluate investment performance.
Degree to which qualified investments
– benefit to assessment area or broader statewide or regional area that includes AA
are not routinely provided by private
– has not been considered under lending or service test
investors
– if reported, that affiliate investments have not been claimed by another institution
– dollar volume of investments made considering performance context
Qualified investments must benefit the
– use of innovative or complex investments, particularly those not routinely provided by
AA or a broader statewide or regional
other investors
area that includes the AA.
– responsiveness to available opportunities and degree to which they serve LMI areas or
individuals
(Optional) Qualified investments made by
an affiliate bank will be considered if
not claimed by any other institution.

Large Banks – Investment Performance Ratings

High Low Needs to Substantial
Characteristic Outstanding Satisfactory Satisfactory Improve Noncompliance

Investment and Grant An EXCELLENT level of SIGNIFICANT ADEQUATE POOR FEW, IF ANY
Activity qualified CD investments and
grants, particularly those not
routinely provided by private
investors, OFTEN in a leader- OCCASIONALLY RARELY
ship position.

Community Makes EXTENSIVE USE of SIGNIFICANT USE OCCASIONAL RARE USE NO USE
Development Initiatives innovative and/or complex USE
investments to support CD
initiatives.

Responsiveness to Credit Exhibits EXCELLENT respon- GOOD ADEQUATE POOR VERY POOR
and Community Development siveness to credit and
Needs CD needs.

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 Large Banks – Service Test
Performance Standards Examiner Review
Retail Banking Services Retail Banking Services
Distribution of branches among each Determine from the bank’s public file the distribution of branches among each geography
geography classification classification in the AA and the banking services provided, including hours
and available products.
Record of opening and closing branches,
particularly those located in LMI Identify any material differences in hours or services available at each branch.
geographies or primarily serving LMI
Evaluate the record of opening and closing branch offices and its effect, particularly on LMI
individuals
geographies or individuals.
Availability and effectiveness of alter-
Evaluate the accessibility and use of alternative systems for delivering retail banking services in
native systems for delivering retail
LMI areas and to LMI individuals.
banking services in LMI geographies
and to LMI individuals Assess the quantity, quality and accessibility of service-delivery systems provided in each
geography classification.
Range of services provided in each geog-
– Consider the degree to which services are tailored to the convenience and needs of each
raphy classification and the degree
geography.
the services are tailored to meet the
needs of those geographies
Community Development Services
Community Development Services Identify CD services of the bank and, at its option, services through affiliates.
Extent of CD services provided Ensure CD services meet the definition of CD service.
Innovativeness and responsiveness of CD Evaluate CD services using performance context information and consider:
services – innovativeness and whether they serve LMI customers in new ways or serve groups of
customers not previously served.
– the degree to which they serve LMI areas or LMI individuals and their responsiveness to
available service opportunities.

Large Banks – Service Performance Ratings

High Low Needs to Substantial
Characteristic Outstanding Satisfactory Satisfactory Improve Noncompliance
Accessibility of Delivery Delivery systems are READILY ACCESSIBLE REASONABLY UNREASONABLY UNREASONABLY
Systems ACCESSIBLE to the bank’s ACCESSIBLE INACCESSIBLE TO INACCESSIBLE TO
geographies and individuals PORTIONS OF SIGNIFICANT PORTIONS
of different income levels in OF
its AA.

Changes in Branch Record of opening and

Locations closing of branches has
IMPROVED the accessibility NOT ADVERSELY GENERALLY NOT ADVERSELY SIGNIFICANTLY
of its delivery systems, par- AFFECTED ADVERSELY AFFECTED ADVERSELY AFFECTED
ticularly to LMI geographies AFFECTED
and/or LMI individuals.

Reasonableness of Business Services ARE TAILORED TO DO NOT VARY IN DO NOT VARY IN VARY IN A WAY VARY IN A WAY THAT
Hours and Services in CONVENIENCE AND NEEDS A WAY THAT A WAY THAT THAT SIGNIFICANTLY
Meeting AA Needs OF its AA, particularly LMI INCONVENIENCES INCONVENIENCES INCONVENIENCES INCONVENIENCES
geographies and/or LMI
individuals.

Community Development A LEADER IN PROVIDING CD PROVIDES A PROVIDES AN PROVIDES A PROVIDES FEW, IF ANY
Services services. RELATIVELY HIGH ADEQUATE LIMITED
LEVEL OF LEVEL OF LEVEL OF

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 Strategic Plan Option*
Performance Standards Examiner Review
In general, a plan must meet the following criteria: Review the following:
– Maximum term is five years, and multiyear – the approved plan and any approved amendments
plans must have annual interim goals. – the agency’s approval process files
– Banks with multiple AA may prepare a single – written comments from the public since the effective date of the plan
strategic plan or multiple plans and may have
AA not covered by a plan. Determine if the bank achieved goals for each AA by
– Affiliated institutions may submit a joint plan if – reviewing plan’s measurable goals.
the plan provides measurable goals for each – identifying the bank’s actual performance.
institution. – comparing goals with actual performance.
Bank must seek public participation in plan
Evaluate any unmet goals and identify if the overall plan goals were “substantially
development by
met” based on
– informally seeking suggestions from the public
– number of goals not met.
in the AA covered by the plan during its devel-
– degree to which goals were not met.
opment.
– relative importance of unmet goals to the overall plan.
– formally soliciting public comment for at least
– why the goals were not met.
30 days by
n publishing notice in a general circulation
newspaper in each AA covered by plan.
n making copies of plan available for review.
Requirements for submission of the plan include
– submitting to supervisory agency at least three
months prior to proposed effective date.
– providing a description of efforts to seek
suggestions from the public.
– providing any written public comments
received.
– if initial plan was revised based on public
comment, submitting initial plan.
The plan must contain the following:
– measurable goals for helping to meet credit
needs, particularly of LMI areas and individuals.
– address lending, investment and service
performance categories with an emphasis on
lending and lending-related activities.
– specify measurable goals that constitute a
satisfactory rating.
– for consideration of an outstanding rating,
must specify outstanding goals.

* A strategic plan assessment may be chosen as an alternative assessment method by any bank if
the plan has been submitted and approved by the bank’s supervisory agency. The plan must be in
effect, and the bank must have been operating under the approved plan for at least one year.

A12
 Public File
Requirements for All Banks Additional Requirements Based on Asset Size
Written comments (current year and prior two calendar years) Banks other than Small and Intermediate Banks
– received from the public that specifically relate to bank’s CRA
– CRA disclosure statement (prior two calendar years) within
performance
three business days of receipt
– any response to the comments by the bank
(Optional) Number and amount of consumer loans
CRA performance evaluation within 30 business days of receipt
(prior two calendar years)
Branch information – to low-, moderate-, middle- and upper-income individuals
– list of branches with their street addresses and geographies – located in each geography classification
– list of branches opened or closed during current year and prior – located inside/outside the AA
two calendar years, their street addresses and geographies
– list of services generally offered and any material differences Small and Intermediate Small Banks
in availability or cost of services at particular branches
Loan-to-deposit ratio
– (optional) information regarding availability of alternative
– for each quarter of the prior calendar year
systems for delivering retail banking services
– (optional) additional data on its loan-to-deposit ratio
Map of each AA
– showing boundaries of the area
– identifying the geographies contained within the area
(either on the map or in a separate list)
Any other information the bank chooses to provide
If applicable
– HMDA disclosure statement (prior two calendar years) within
three business days of receipt
– strategic plan
– efforts to improve performance if bank’s previous CRA rating
was less than satisfactory (updated quarterly)

A13
 CRA Ratings
Small Banks Large Banks
Outstanding Component test ratings that reflect the bank’s lending, investments
– if the bank meets the rating descriptions and standards for and services are assigned.
Satisfactory for each of the five core criteria and materially
exceeds the standards for Satisfactory in some or all of the
criteria to the extent that an outstanding rating is warranted Component Test Ratings Lending Investment Service
or
Outstanding 12 6 6
– if the bank’s performance with respect to the five core criteria
High Satisfactory 9 4 4
generally exceeds Satisfactory and its performance in making
Low Satisfactory 6 3 3
qualified investments and providing branches and other ser-
Needs to Improve 3 1 1
vices and delivery systems in the AA supplements its perfor-
Substantial Noncompliance 0 0 0
mance under the five core criteria sufficiently to warrant an
overall rating of Outstanding
Satisfactory Preliminary composite rating is assigned by summing the component
– if the bank meets each of the standards for a Satisfactory test ratings for lending, investment and service tests and referring
rating to the chart below.
or
– if exceptionally strong performance with respect to some of Points Composite Assigned Rating
the standards compensates for weak performance in others
20 + Outstanding
Needs to Improve or Substantial Noncompliance 11 – 19 Satisfactory
– depending on the degree to which a bank’s performance 5 – 10 Needs to Improve
has failed to meet the standards for a Satisfactory rating 0 – 4  Substantial Noncompliance

Intermediate Small Banks No bank may receive a composite assigned rating of Satisfactory or
higher unless it receives at least Low Satisfactory on the
Outstanding
lending test. The assigned rating can be no more than three times
– if the bank is rated Outstanding on both the lending and
the score on the lending test.
CD tests or if the bank is rated Outstanding on one test and
at least Satisfactory on the other test
Strategic Plan
Satisfactory
– if the bank receives at least a Satisfactory rating on both the Bank must identify satisfactory measurable goals and, to be consid-
lending and CD tests ered for an Outstanding rating, must identify a separate group
of outstanding measurable goals that substantially exceed the
Satisfactory level.
Needs to Improve or Substantial Noncompliance
– depending on the degree to which a bank’s performance has An Outstanding rating will be assigned if the bank exceeds its plan
failed to meet the standards for a Satisfactory rating on a test goals for a Satisfactory rating and substantially achieves its plan
goals for an Outstanding rating.
A Satisfactory rating will be assigned if the bank substantially
achieves its plan goals for a Satisfactory rating.
A Needs to Improve or Substantial Noncompliance rating will be
assigned if the bank fails to substantially meet its plan goals for
a Satisfactory rating, unless the bank elects in its plan to be
evaluated under the appropriate alternative large or small bank
assessment method.

All Banks
Evidence of discriminatory or other illegal credit practices adversely affects the evaluation of a bank’s CRA performance.
A final overall CRA rating is assigned.
– Banks with branches in just one state will receive one set of component ratings. Banks with branches in two or
more states and banks with branches in two or more states of a multistate MSA will be assigned component
ratings for each state or multistate MSA.

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