(a) Intermediate bank performance evaluation.
(1) In general. The Board evaluates an intermediate bank’s
record of helping to meet the credit needs of its entire community
pursuant to the Retail Lending Test in section 228.22 and the Intermediate
Bank Community Development Test as provided in paragraph (a)(2) of
this section, unless an intermediate bank opts to be evaluated pursuant
to the Community Development Financing Test in section 228.24.
(2) Intermediate Bank Community Development Test.
(i) An intermediate bank’s community
development performance is evaluated pursuant to the following criteria:
(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 Board’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 section 228.15(b).
(ii) The Board 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 Board’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.
(1) Intermediate
banks evaluated pursuant to the Intermediate Bank Community Development
Test. The Board may adjust the rating of an intermediate bank
evaluated as provided in paragraph (a)(2) of this section from “Satisfactory”
to “Outstanding” at the institution level where the bank
requests and receives additional consideration for activities that
would qualify pursuant to the Retail Services and Products Test in
section 228.23.
(2) Intermediate banks evaluated pursuant to the
Community Development Financing Test. The Board may adjust the
rating of an intermediate bank that opts to be evaluated pursuant
to the Community Development Financing Test in section 228.24 from
“Satisfactory” to “Outstanding” at the institution
level where the bank requests and receives additional consideration
for activities that would qualify pursuant to the Retail Services
and Products Test in section 228.23, the Community Development Services
Test in section 228.25, or both.
(3) Additional
consideration for low-cost education loans. Notwithstanding paragraphs
(b)(1) and (2) of this section, an intermediate bank may request and
receive additional consideration at the institution level for providing
low-cost education loans to low-income borrowers pursuant to 12 U.S.C.
2903(d), regardless of the intermediate bank’s overall institution
rating.
(c) Intermediate bank performance conclusions and ratings.
(1) Conclusions. The Board assigns a conclusion for the performance of an intermediate
bank evaluated pursuant to this section as provided in appendices
C and E to this part. In assigning conclusions for an intermediate
bank, the Board may consider performance context information as provided
in section 228.21(d).
(2) Ratings. The Board rates the performance
of an intermediate bank evaluated under this section as provided in
appendix D to this part.
