a. Performance test conclusions, in general. For a bank or savings association evaluated under, as applicable, the Retail Lending Test in § 25.22, the Retail Services and Products Test in § 25.23, the Community Development Financing Test in § 25.24, the Community Development Services Test in § 25.25, and the Community Development Financing Test for Limited Purpose Banks and Savings Associations in § 25.26, the appropriate Federal banking agency assigns conclusions for the bank's or savings association's CRA performance pursuant to these tests and this appendix. In assigning conclusions, the appropriate Federal banking agency may consider performance context information as provided in § 25.21(d).

b. Retail Lending Test conclusions. The appropriate Federal banking agency assigns Retail Lending Test conclusions for each applicable Retail Lending Test Area, each State or multistate MSA, as applicable pursuant to § 25.28(c), and for the institution.

1. Retail Lending Test Area. For each applicable Retail Lending Test Area, the appropriate Federal banking agency assigns a Retail Lending Test conclusion and corresponding performance score pursuant to § 25.22(h)(1), as follows:

2. State, multistate MSA, and institution. The appropriate Federal banking agency assigns the Retail Lending Test conclusions for a bank's or savings association'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 appropriate Federal banking agency assigns Retail Services and Products Test conclusions for each facility-based assessment area, for each State or multistate MSA, as applicable pursuant to § 25.28(c), and for the institution. For a bank or savings association that does not operate any branches, a main office described in § 25.23(a)(2), or remote service facilities, the appropriate Federal banking agency assigns the bank's or savings association'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 appropriate Federal banking agency assigns a Retail Services and Products Test conclusion for a bank's or savings association's performance in a facility-based assessment area based on an evaluation of the bank's or savings association's branch availability and services and remote services facilities availability, if applicable, pursuant to § 25.23(b)(2) and (3), respectively.

2. State, multistate MSA, and institution. The appropriate Federal banking agency develops the Retail Services and Products Test conclusions for States, multistate MSAs, and the institution as described in this paragraph c.2.

i. The appropriate Federal banking agency translates Retail Services and Products Test conclusions for facility-based assessment areas into numerical performance scores as follows:

ii. The appropriate Federal banking agency 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 appropriate Federal banking agency considers facility-based assessment areas in the State or multistate MSA pursuant to § 25.28(c). For the weighted average for the institution, the appropriate Federal banking agency considers all of the bank's or savings association'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 or savings association's deposits in the facility-based assessment area, calculated by:

1. Summing, over the years in the evaluation period, the bank's or savings association's annual dollar volume of deposits in the facility-based assessment area.

2. Summing, over the years in the evaluation period, the bank's or savings association'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 or savings association that reports deposits data pursuant to § 25.42(b)(3), the bank's or savings association'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 or savings association in counties in the facility-based assessment area for that year. For a bank or savings association that does not report deposits data pursuant to § 25.42(b)(3), the bank's or savings association's annual dollar volume of deposits in a facility-based assessment area is the total of deposits assigned to facilities reported by the bank or savings association 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 or savings association's loans in the facility-based assessment area, based on the combination of loan dollars and loan count, as defined in § 25.12, calculated by dividing:

1. The bank's or savings association's closed-end home mortgage loans, small business loans, small farm loans, and, if a product line for the bank or savings association, automobile loans in the facility-based assessment area originated or purchased during the evaluation period; by

2. The bank's or savings association's closed-end home mortgage loans, small business loans, small farm loans, and, if a product line for the bank or savings association, 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 appropriate Federal banking agency 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).

iv. For the institution, the appropriate Federal banking agency assigns a Retail Services and Products Test conclusion based on the bank's or savings association's combined retail banking services conclusion, developed pursuant to paragraph c.2.iv.A of this appendix, and an evaluation of the bank's or savings association's retail banking products, pursuant to paragraph c.2.iv.B of this appendix. The appropriate Federal banking agency translates the Retail Services and Products Test conclusion for the institution into a numerical performance score, as follows:

A. Combined retail banking services conclusion. 1. In general. The appropriate Federal banking agency evaluates the bank's or savings association'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 or savings association without branches, a main office described in § 25.23(a)(2), or remote service facilities, the appropriate Federal banking agency 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 appropriate Federal banking agency assigns a digital delivery systems and other delivery systems conclusion based on an evaluation of a bank's or savings association's digital delivery systems and other delivery systems pursuant to § 25.23(b)(4).

B. Retail banking products evaluation. The appropriate Federal banking agency evaluates the bank's or savings association's retail banking products offered in the bank's or savings association's facility-based assessment areas and nationwide, as applicable, as follows:

1. Credit products and programs. The appropriate Federal banking agency evaluates the bank's or savings association's performance regarding its credit products and programs pursuant to § 25.23(c)(2) and determines whether the bank's or savings association's performance contributes positively to the bank's or savings association'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 appropriate Federal banking agency evaluates the bank's or savings association's performance regarding its deposit products pursuant to § 25.23(c)(3), as applicable, and determines whether the bank's or savings association's performance contributes positively to the bank's or savings association'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 or savings association's retail banking products evaluated pursuant to § 25.23(c) may positively impact the bank's or savings association's Retail Services and Products Test conclusion. The bank's or savings association's lack of responsive retail banking products does not adversely affect the bank's or savings association's Retail Services and Products Test performance conclusion.

d. Community Development Financing Test conclusions. The appropriate Federal banking agency assigns Community Development Financing Test conclusions for each facility-based assessment area, each State or multistate MSA, as applicable pursuant to § 25.28(c), and for the institution.

1. Facility-based assessment area. For each facility-based assessment area, the appropriate Federal banking agency assigns a Community Development Financing Test conclusion and corresponding performance score based on the metric and benchmarks as provided in § 25.24 and a review of the impact and responsiveness of a bank's or savings association's activities as provided in § 25.15 as follows:

2. State, multistate MSA, and institution. The appropriate Federal banking agency assigns Community Development Financing Test conclusions for a bank's or savings association's performance in each State and multistate MSA, as applicable pursuant to § 25.28(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 appropriate Federal banking agency assigns Community Development Services Test conclusions for each facility-based assessment area, each State or multistate MSA, as applicable pursuant to § 25.28(c), and for the institution.

1. Facility-based assessment area. For each facility-based assessment area, the appropriate Federal banking agency develops a Community Development Services Test conclusion based on the extent to which a bank or savings association provided community development services, considering the factors in § 25.25(b). The appropriate Federal banking agency translates the conclusion for each facility-based assessment area into a numerical performance score as follows:

2. State, multistate MSA, or nationwide area. For each State or multistate MSA, as applicable pursuant to § 25.28(c), and the nationwide area, the appropriate Federal banking agency develops a Community Development Services Test conclusion as follows:

i. The appropriate Federal banking agency 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 appropriate Federal banking agency 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:

ii. The appropriate Federal banking agency 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 § 25.19. 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 appropriate Federal banking agency 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:

f. Community Development Financing Test for Limited Purpose Banks and Savings Associations conclusions. The appropriate Federal banking agency assigns conclusions for each facility-based assessment area, each State or multistate MSA, as applicable pursuant to § 25.28(c), and for the institution.

1. Facility-based assessment area. For each facility-based assessment area, the appropriate Federal banking agency assigns one of the following Community Development Financing Test for Limited Purpose Banks and Savings Associations conclusions based on consideration of the dollar volume of a bank's or savings association'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 or savings association's activities in the facility-based assessment area as provided in § 25.15: “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 § 25.28(c), the appropriate Federal banking agency assigns a Community Development Financing Test for Limited Purpose Banks and Savings Associations conclusion of “Outstanding,” “High Satisfactory,” “Low Satisfactory,” “Needs to Improve,” or “Substantial Noncompliance” based on the following:

i. The bank's or savings association's facility-based assessment area performance test conclusions in each State or multistate MSA, as applicable;

ii. The dollar volume of a bank's or savings association'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 or savings association's activities in the State or multistate MSAs, as provided in § 25.15.

3. Institution. For the institution, the appropriate Federal banking agency assigns a Community Development Financing Test for Limited Purpose Banks and Savings Associations conclusion of “Outstanding,” “High Satisfactory,” “Low Satisfactory,” “Needs to Improve,” or “Substantial Noncompliance” based on the following:

i. The bank's or savings association's community development financing performance in all of its facility-based assessment areas;

ii. The appropriate Federal banking agency's comparison of the bank's or savings association'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 appropriate Federal banking agency's comparison of the bank's or savings association'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 or savings association's activities in a nationwide area as provided in § 25.15.

g. Strategic Plan conclusions. The appropriate Federal banking agency assigns conclusions for a bank or savings association 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 § 25.28(c), and for the institution. The appropriate Federal banking agency assigns conclusions consistent with the methodology set forth by the bank or savings association in its plan. For elements of the plan that correspond to performance tests that would apply to the bank or savings association 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.

[89 FR 7165, Feb. 1, 2024]