(a) In general.
(1) Large banks. The Board evaluates a large bank’s record of helping to meet
the credit needs of its entire community in its outside retail lending
area pursuant to section 228.22. However, the Board will not evaluate
a large bank in its outside retail lending area if it did not originate
or purchase loans in any product lines in the outside retail lending
area during the evaluation period.
(2) Intermediate
or small banks. The Board evaluates the record of an intermediate
bank, or a small bank that opts to be evaluated under the Retail Lending
Test, of helping to meet the credit needs of its entire community
in its outside retail lending area pursuant to section 228.22, for
a particular calendar year, if:
(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.
(1) In general. A bank’s outside retail lending area consists of the nationwide
area, excluding:
(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. The outside
retail lending area is comprised of component geographic areas. A
component geographic area is any MSA or the nonmetropolitan area of
any state, or portion thereof, included within the outside retail
lending area.
