a. Performance test conclusions,
in general. For a bank evaluated under, as applicable, the Retail
Lending Test in section 228.22, the Retail Services and Products Test
in section 228.23, the Community Development Financing Test in section
228.24, the Community Development Services Test in section 228.25,
and the Community Development Financing Test for Limited Purpose Banks
in section 228.26, the Board assigns conclusions for the bank’s
CRA performance pursuant to these tests and this appendix. In assigning
conclusions, the Board may consider performance context information
as provided in section 228.21(d).
b. Retail Lending Test conclusions.The Board assigns Retail Lending Test conclusions for each applicable
Retail Lending Test Area, each state or multistate MSA, as applicable
pursuant to section 228.28(c), and for the institution.
1. Retail Lending Test Area. For
each applicable Retail Lending Test Area, the Board assigns a Retail
Lending Test conclusion and corresponding performance score pursuant
to section 228.22(h)(1), as follows:
| Conclusion |
Performance score |
| Outstanding |
10 |
| High Satisfactory |
7 |
| Low Satisfactory |
6 |
| Needs to Improve |
3 |
| Substantial Noncompliance |
0 |
2. State, multistate
MSA, and institution. The Board assigns the Retail Lending Test
conclusions for a bank’s performance in each state or multistate
MSA, as applicable, and for the institution, as set forth in section
VIII of appendix A to this part.
c. Retail Services and Products
Test conclusions.The Board assigns Retail Services and Products
Test conclusions for each facility-based assessment area, for each
state or multistate MSA, as applicable pursuant to section 228.28(c),
and for the institution. For a bank that does not operate any branches,
a main office described in section 228.23(a)(2), or remote service
facilities, the Board assigns the bank’s digital delivery systems
and other delivery systems conclusion as the Retail Services and Product
Test conclusion for the state or multistate MSA, as applicable.
1. Facility-based assessment area. The Board assigns a Retail Services and Products Test conclusion
for a bank’s performance in a facility-based assessment area
based on an evaluation of the bank’s branch availability and
services and remote services facilities availability, if applicable,
pursuant to section 228.23(b)(2) and (3), respectively.
2. State, multistate MSA,
and institution. The Board develops the Retail Services and Products
Test conclusions for states, multistate MSAs, and the institution
as described in this paragraph c.2.
i. The Board 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 Board
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 Board considers facility-based assessment areas in the state
or multistate MSA pursuant to section 228.28(c). For the weighted
average for the institution, the Board 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. Summing, over the years in the
evaluation period, the bank’s annual dollar volume of deposits
in the facility-based assessment area.
2. 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 institution, as applicable.
3. Dividing the result of paragraph
c.2.ii.A.1 of this appendix by the result of paragraph c.2.ii.A.2 of this appendix.
For a
bank that reports deposits data pursuant to section 228.42(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 section 228.42(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 section 228.12, calculated by dividing:
1. 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
2. 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 institution,
as applicable, originated or purchased during the evaluation period.
iii. For a state or multistate MSA,
as applicable, the Board 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., the performance
score for the Retail Services and Products Test for the state or multistate
MSA).
| 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 Board 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 Board 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. The Board evaluates the bank’s retail banking services, as
applicable, and assigns a combined retail banking services conclusion
based the weighted average for the institution calculated pursuant
to paragraph c.2.ii of this appendix and a digital and other delivery
systems conclusion, assigned pursuant to paragraph c.2.iv.A.1 of this appendix. For a large bank without branches, a main office
described in section 228.23(a)(2), or remote service facilities, the
Board assigns a combined retail banking services conclusion based
only on a digital delivery systems and other delivery systems conclusion,
assigned pursuant to paragraph c.2.iv.A.1 of this appendix.
2. Digital delivery
systems and other delivery systems conclusion. The Board assigns
a digital delivery systems and other delivery systems conclusion based
on an evaluation of a bank’s digital delivery systems and other
delivery systems pursuant to section 228.23(b)(4).
B. Retail banking products
evaluation. The Board evaluates the bank’s retail banking
products offered in the bank’s facility-based assessment areas
and nationwide, as applicable, as follows:
1. Credit products and programs. The Board evaluates
the bank’s performance regarding its credit products and programs
pursuant to section 228.23(c)(2) and determines whether the bank’s
performance contributes positively to the bank’s Retail Services
and Products Test conclusion that would have resulted based solely
on the retail banking services conclusion pursuant to paragraph c.2.iv.A
of this appendix.
2. Deposit products. The Board evaluates the bank’s performance
regarding its deposit products pursuant to section 228.23(c)(3), as
applicable, and determines whether the bank’s performance contributes
positively to the bank’s Retail Services and Products Test conclusion
that would have resulted based solely on the combined retail banking
services conclusion pursuant to paragraph c.2.iv.A of this appendix.
3. Impact of
retail banking products on Retail Services and Products Test conclusion. The bank’s retail banking products evaluated pursuant to section
228.23(c) may positively impact the bank’s Retail Services and
Products Test conclusion. The bank’s lack of responsive retail
banking products does not adversely affect the bank’s Retail
Services and Products Test performance conclusion.
d. Community Development
Financing Test conclusions.The Board assigns Community Development
Financing Test conclusions for each facility-based assessment area,
each state or multistate MSA, as applicable pursuant to section 228.28(c),
and for the institution.
1. Facility-based assessment area. For each facility-based assessment area, the Board assigns a Community
Development Financing Test conclusion and corresponding performance
score based on the metric and benchmarks as provided in section 228.24
and a review of the impact and responsiveness of a bank’s activities
as provided in section 228.15 as follows:
| Conclusion |
Performance score |
| Outstanding |
10 |
| High Satisfactory |
7 |
| Low Satisfactory |
6 |
| Needs to Improve |
3 |
| Substantial Noncompliance |
0 |
2. State, multistate
MSA, and institution. The Board assigns Community Development
Financing Test conclusions for a bank’s performance in each
state and multistate MSA, as applicable pursuant to section 228.28(c),
and for the institution as set forth in paragraph II.p of appendix
B to this part.
e. Community Development
Services Test conclusions.The Board assigns Community Development
Services Test conclusions for each facility-based assessment area,
each state or multistate MSA, as applicable pursuant to section 228.28(c),
and for the institution.
1. Facility-based assessment area. For each facility-based assessment area, the Board develops a Community
Development Services Test conclusion based on the extent to which
a bank provided community development services, considering the factors
in section 228.25(b). The Board translates the conclusion for each
facility-based assessment area 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 |
2. State, multistate
MSA, or nationwide area. For each state or multistate MSA, as
applicable pursuant to section 228.28(c), and the nationwide area,
the Board develops a Community Development Services Test conclusion
as follows:
i. The Board 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 Board 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
Development Services 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 |
ii. The Board
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 section 228.19. 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 Board
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. The Board
assigns conclusions for each facility-based assessment area, each
state or multistate MSA, as applicable pursuant to section 228.28(c),
and for the institution.
1. Facility-based assessment area. For each facility-based assessment area, the Board assigns one of
the following Community Development Financing Test for Limited Purpose
Banks conclusions based on consideration of the dollar volume of a
bank’s community development loans and community development
investments that benefit or serve the facility-based assessment area
over the evaluation period, and a review of the impact and responsiveness
of the bank’s activities in the facility-based assessment area
as provided in section 228.15: “Outstanding”; “High
Satisfactory”; “Low Satisfactory”; “Needs
to Improve”; or “Substantial Noncompliance.”
2. State or multistate
MSA. For each state or multistate MSA, as applicable pursuant
to section 228.28(c), the Board assigns a Community Development Financing
Test for Limited Purpose Banks conclusion of “Outstanding,”
“High Satisfactory,” “Low Satisfactory,” “Needs
to Improve,” or “Substantial Noncompliance” based
on the following:
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 section 228.15.
3. Institution. For
the institution, the Board assigns a Community Development Financing
Test for Limited Purpose Banks conclusion of “Outstanding,”
“High Satisfactory,” “Low Satisfactory,” “Needs
to Improve,” or “Substantial Noncompliance” based
on the following:
i. The bank’s community development
financing performance in all of its facility-based assessment areas;
ii. The Board’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 Board’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 section 228.15.
g. Strategic plan conclusions. The Board assigns conclusions for a bank that operates under an
approved plan in facility-based assessment areas, retail lending assessment
areas, outside retail lending areas, state or multistate MSA, as applicable
pursuant to section 228.28(c), and for the institution. The Board
assigns conclusions consistent with the methodology set forth by the
bank in its plan. For elements of the plan that correspond to performance
tests that would apply to the bank in the absence of an approved plan,
the plan should include a conclusion methodology that is generally
consistent with paragraphs b through f of this appendix.
