[Federal Register Volume 72, Number 245 (Friday, December 21, 2007)]
[Rules and Regulations]
[Pages 72571-72574]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-24719]


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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

12 CFR Part 25

[Docket ID OCC-2007-0021]
RIN 1557-AD05

FEDERAL RESERVE SYSTEM

12 CFR Part 228

[Regulation BB; Docket No. R-1302]

FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Part 345

RIN 3064-AD24

DEPARTMENT OF TREASURY

Office of Thrift Supervision

12 CFR Part 563e

[Docket ID OTS-2007-0024]
RIN 1550-AC18


Community Reinvestment Act Regulations

AGENCIES: Office of the Comptroller of the Currency, Treasury (OCC); 
Board of Governors of the Federal Reserve System (Board); Federal 
Deposit Insurance Corporation (FDIC); Office of Thrift Supervision 
(OTS).

ACTION: Joint final rule; technical correction.

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SUMMARY: The OCC, the Board, the FDIC, and the OTS (collectively, the 
``agencies'') are amending their Community Reinvestment Act (CRA) 
regulations to adjust the asset-size thresholds used to define ``small 
bank'' or ``small savings association'' and ``intermediate small bank'' 
or ``intermediate small savings association.'' As required by the CRA 
regulations, the adjustment to the threshold amount is based on the 
annual percentage change in the Consumer Price Index. The agencies are 
also correcting a paragraph heading that is inaccurate as a result of 
annual revisions to the small institution threshold.

DATE: Effective January 1, 2008.

FOR FURTHER INFORMATION CONTACT:
    OCC: Margaret Hesse, Special Counsel, Community and Consumer Law 
Division, (202) 874-5750; or Karen Tucker, National Bank Examiner, 
Compliance Policy Division, (202) 874-4428, Office of the Comptroller 
of the Currency, 250 E Street, SW., Washington, DC 20219.
    Board: Anjanette M. Kichline, Senior Supervisory Consumer Financial 
Services Analyst, (202) 785-6054; or Brett Lattin, Attorney, (202) 452-
3667, Division of Consumer and Community Affairs, Board of Governors of 
the Federal Reserve System, 20th Street and Constitution Avenue, NW., 
Washington, DC 20551.
    FDIC: Deirdre Foley, Senior Policy Analyst, Compliance Policy 
Section, (202) 898-6612, and Faye Murphy, Review Examiner, Compliance 
Examination Support, (202) 898-6613, Division of Supervision and 
Consumer Protection; or Susan van den Toorn, Counsel, Legal Division, 
(202) 898-8707, Federal Deposit Insurance Corporation, 550 17th Street, 
NW., Washington, DC 20429.
    OTS: Celeste Anderson, Senior Project Manager, Compliance and 
Consumer Protection, (202) 906-7990; or Richard Bennett, Senior 
Compliance Counsel, Regulations and Legislation Division, (202) 906-
7409, Office of Thrift Supervision, 1700 G Street, NW., Washington, DC 
20552.

SUPPLEMENTARY INFORMATION:

Background and Description of the Joint Final Rule

    The agencies' CRA regulations establish CRA performance standards 
for small and intermediate small banks and savings associations. The 
regulations define small and intermediate small institutions by 
reference to asset-size criteria expressed in dollar amounts, and they 
further require the agencies to publish annual adjustments to these 
dollar figures based

[[Page 72572]]

on the year-to-year change in the average of the Consumer Price Index 
for Urban Wage Earners and Clerical Workers (CPIW), not seasonally 
adjusted, for each twelve-month period ending in November, with 
rounding to the nearest million. 12 CFR 25.12(u)(2), 228.12(u)(2), 
345.12(u)(2), and 563e.12(u)(2).
    The threshold for small banks was revised most recently for the 
OCC, the Board, and the FDIC effective January 1, 2007 (71 FR 78335 
(Dec. 29, 2006)). These agencies' CRA regulations, as revised on 
December 29, 2006, provide that banks that, as of December 31 of either 
of the prior two calendar years, had assets of less than $1.033 billion 
are ``small banks.'' Small banks with assets of at least $258 million 
as of December 31 of both of the prior two calendar years and less than 
$1.033 billion as of December 31 of either of the prior two calendar 
years are ``intermediate small banks.'' 12 CFR 25.12(u)(1), 
228.12(u)(1), 345.12(u)(1). The threshold for small savings 
associations was revised in the same way and the same threshold for 
intermediate small savings associations was established by OTS 
effective July 1, 2007 (72 FR 13435 (Mar. 22, 2007). 12 CFR 
563e.12(u)(1). This joint final rule further revises these thresholds.
    During the period ending November 2007, the CPIW increased by 2.7 
percent. As a result, the agencies are revising 12 CFR 25.12(u)(1), 
228.12(u)(1), 345.12(u)(1), and 563e.12(u)(1) to make this annual 
adjustment. Beginning January 1, 2008, banks and savings associations 
that, as of December 31 of either of the prior two calendar years, had 
assets of less than $1.061 billion are ``small banks'' or ``small 
savings associations.'' Small banks or small savings associations with 
assets of at least $265 million as of December 31 of both of the prior 
two calendar years and less than $1.061 billion as of December 31 of 
either of the prior two calendar years are ``intermediate small banks'' 
or ``intermediate small savings associations.'' The agencies also 
publish current and historical asset-size thresholds on the website of 
the Federal Financial Institutions Examination Council at http://www.ffiec.gov/cra/.
    The agencies also are amending their CRA regulations to make a 
technical correction to revise a paragraph heading that is inaccurate 
as a result of annual small institution threshold adjustments. The 
technical correction revises the paragraph headings found at 12 CFR 
25.26(a)(1), 228.26(a)(1), and 345.26(a)(1) (``Small banks with assets 
of less than $250 million'') and 12 CFR 563e.26(a)(1) (``Small savings 
associations with assets of less than $250 million''). As a result of 
the agencies' annual adjustments to the dollar amount threshold for 
small institutions, the threshold of $250 million described in the 
paragraph heading is inaccurate. The agencies are revising the headings 
so that they do not reference the dollar amount of the small bank or 
small savings association asset threshold.

Administrative Procedure Act and Effective Date

    Under 5 U.S.C. 553(b)(B) of the Administrative Procedure Act (APA), 
an agency may, for good cause, find (and incorporate the finding and a 
brief statement of reasons therefore in the rules issued) that notice 
and public procedure thereon are impracticable, unnecessary, or 
contrary to the public interest.
    The amendments to the regulations to adjust the asset-size 
thresholds for small and intermediate small banks and savings 
associations result from the application of a formula established by a 
provision in the CRA regulations that the agencies previously published 
for comment. See 70 FR 12148 (Mar. 11, 2005), 70 FR 44256 (Aug. 2, 
2005), 71 FR 67826 (Nov. 24, 2006), and 72 FR 13429 (Mar. 22, 2007). 
Sections 25.12(u)(1), 228.12(u)(1), 345.12(u)(1), and 563e.12(u)(1) are 
amended by adjusting the asset threshold as provided for in Sec. Sec.  
25.12(u)(2), 228.12(u)(2), 345.12(u)(2), and 563e.12(u)(2).
    Accordingly, since the agencies' rules provide no discretion as to 
the computation or timing of the revisions to the asset-size criteria, 
the agencies have determined that publishing a notice of proposed 
rulemaking and providing opportunity for public comment are 
unnecessary.
    With regard to the revision amending the paragraph heading, as a 
result of the annual adjustment required by the regulations, the 
heading describing ``small banks'' or ``small savings associations'' as 
those with assets of less than $250 million is inaccurate. The revision 
merely amends the heading to correct this inaccuracy and prevent 
further inaccuracies when annual adjustments are made in the future. 
For this reason, the agencies, for good cause, find that the notice and 
comment procedures prescribed by the APA are unnecessary because the 
joint final rule is making a technical correction without substantive 
change to the provisions of parts 25, 228, 345, and 563e.
    This joint final rule takes effect January 1, 2008. Under 5 U.S.C. 
553(d)(3) of the APA, the required publication or service of a 
substantive rule shall be made not less than 30 days before its 
effective date, except, among other things, as provided by the agency 
for good cause found and published with the rule. The agencies find 
that there is good cause for shortened notice because their current 
rules already provide notice that the small and intermediate asset-size 
thresholds will be adjusted as of December 31 based on twelve-month 
data as of the end of November each year. Moreover, the revisions to 
the headings in the agencies' rules are minor, nonsubstantive, and 
technical.

Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) does not apply to a rulemaking 
where a general notice of proposed rulemaking is not required. 5 U.S.C. 
603 and 604. As noted previously, the agencies have determined that it 
is unnecessary to publish a notice of proposed rulemaking for this 
joint final rule. Accordingly, the RFA's requirements relating to an 
initial and final regulatory flexibility analysis do not apply.

Paperwork Reduction Act of 1995

    There are no collection of information requirements in this joint 
final rule.

Executive Order 12866

    The OCC and OTS have each determined that its portion of this joint 
final rule is not a significant regulatory action as defined in 
Executive Order 12866.

Unfunded Mandates Reform Act of 1995

    Section 202 of the Unfunded Mandates Reform Act of 1995, 2 U.S.C. 
1532 (Unfunded Mandates Act), requires that an agency must prepare a 
budgetary impact statement before promulgating any rule likely to 
result in a Federal mandate that may result in the expenditure by 
State, local, and tribal governments, in the aggregate, or by the 
private sector of $100 million or more in any one year. If a budgetary 
impact statement is required, section 205 of the Unfunded Mandates Act 
also requires an agency to identify and consider a reasonable number of 
regulatory alternatives before promulgating a rule. The OCC and OTS 
have each determined that its portion of this joint final rule will not 
result in expenditures by State, local, and tribal governments, or by 
the private sector, of $100 million or more in any one year. 
Accordingly, this joint final rule is not subject to section 202 of the 
Unfunded Mandates Act.

[[Page 72573]]

Executive Order 13132

    The OCC and OTS have each determined that its portion of this joint 
final rule does not have any Federalism implications as required by 
Executive Order 13132.

List of Subjects

12 CFR Part 25

    Community development, Credit, Investments, National banks, 
Reporting and recordkeeping requirements.

12 CFR Part 228

    Banks, banking, Community development, Credit, Investments, 
Reporting and recordkeeping requirements.

12 CFR Part 345

    Banks, banking, Community development, Credit, Investments, 
Reporting and recordkeeping requirements.

12 CFR Part 563e

    Community development, Credit, Investments, Reporting and 
recordkeeping requirements, Savings associations.

Department of the Treasury

Office of the Comptroller of the Currency

12 CFR Chapter I

0
For the reasons discussed in the joint preamble, 12 CFR part 25 is 
amended as follows:

PART 25--COMMUNITY REINVESTMENT ACT AND INTERSTATE DEPOSIT 
PRODUCTION REGULATIONS

0
1. The authority citation for part 25 continues to read as follows:

    Authority: 12 U.S.C. 21, 22, 26, 27, 30, 36, 93a, 161, 215, 
215a, 481, 1814, 1816, 1828(c), 1835a, 2901 through 2907, and 3101 
through 3111.


0
2. Revise Sec.  25.12(u)(1) to read as follows:


Sec.  25.12  Definitions.

* * * * *
    (u) Small bank--(1) Definition. Small bank means a bank that, as of 
December 31 of either of the prior two calendar years, had assets of 
less than $1.061 billion. Intermediate small bank means a small bank 
with assets of at least $265 million as of December 31 of both of the 
prior two calendar years and less than $1.061 billion as of December 31 
of either of the prior two calendar years.
* * * * *

0
3. Revise the paragraph heading to Sec.  25.26(a)(1) to read as 
follows:


Sec.  25.26  Small bank performance standards.

    (a) Performance criteria--(1) Small banks that are not intermediate 
small banks. * * *
* * * * *

Federal Reserve System

12 CFR Chapter II

0
For the reasons set forth in the joint preamble, the Board of Governors 
of the Federal Reserve System amends part 228 of chapter II of title 12 
of the Code of Federal Regulations as follows:

PART 228--COMMUNITY REINVESTMENT (REGULATION BB)

0
1. The authority citation for part 228 continues to read as follows:

    Authority: 12 U.S.C. 321, 325, 1828(c), 1842, 1843, 1844, and 
2901 et seq.


0
2. Revise Sec.  228.12(u)(1) to read as follows:


Sec.  228.12  Definitions.

* * * * *
    (u) Small bank--(1) Definition. Small bank means a bank that, as of 
December 31 of either of the prior two calendar years, had assets of 
less than $1.061 billion. Intermediate small bank means a small bank 
with assets of at least $265 million as of December 31 of both of the 
prior two calendar years and less than $1.061 billion as of December 31 
of either of the prior two calendar years.
* * * * *

0
3. Revise the paragraph heading to Sec.  228.26(a)(1) to read as 
follows:


Sec.  228.26  Small bank performance standards.

    (a) Performance criteria--(1) Small banks that are not intermediate 
small banks. * * *
* * * * *

Federal Deposit Insurance Corporation

12 CFR Chapter III

Authority and Issuance

0
For the reasons set forth in the joint preamble, the Board of Directors 
of the Federal Deposit Insurance Corporation amends part 345 of chapter 
III of title 12 of the Code of Federal Regulations to read as follows:

PART 345--COMMUNITY REINVESTMENT

0
1. The authority citation for part 345 continues to read as follows:

    Authority: 12 U.S.C. 1814-1817, 1819-1820, 1828, 1831u and 2901-
2907, 3103-3104, and 3108(a).


0
2. Revise Sec.  345.12(u)(1) to read as follows:


Sec.  345.12  Definitions.

* * * * *
    (u) Small bank--(1) Definition. Small bank means a bank that, as of 
December 31 of either of the prior two calendar years, had assets of 
less than $1.061 billion. Intermediate small bank means a small bank 
with assets of at least $265 million as of December 31 of both of the 
prior two calendar years and less than $1.061 billion as of December 31 
of either of the prior two calendar years.
* * * * *

0
3. Revise the paragraph heading to Sec.  345.26(a)(1) to read as 
follows:


Sec.  345.26  Small bank performance standards.

    (a) Performance criteria--(1) Small banks that are not intermediate 
small banks. * * *
* * * * *

Department of the Treasury

Office of Thrift Supervision

12 CFR Chapter V

0
For the reasons discussed in the joint preamble, 12 CFR part 563e is 
amended as follows:

PART 563e--COMMUNITY REINVESTMENT

0
1. The authority citation for part 563e continues to read as follows:

    Authority: 12 U.S.C. 1462a, 1463, 1464, 1467a, 1814, 1816, 
1828(c), and 2901 through 2907.


0
2. Revise Sec.  563e.12(u)(1) to read as follows:


Sec.  563e.12  Definitions.

* * * * *
    (u) Small savings association--(1) Definition. Small savings 
association means a savings association that, as of December 31 of 
either of the prior two calendar years, had assets of less than $1.061 
billion. Intermediate small savings association means a small savings 
association with assets of at least $265 million as of December 31 of 
both of the prior two calendar years and less than $1.061 billion as of 
December 31 of either of the prior two calendar years.
* * * * *

0
3. Revise the paragraph heading to Sec.  563e.26(a)(1) to read as 
follows:

[[Page 72574]]

Sec.  563e.26  Small savings association performance standards.

    (a) Performance criteria--(1) Small savings associations that are 
not intermediate small savings associations. * * *
* * * * *

    Dated: December 5, 2007.
Julie L. Williams,
First Senior Deputy Comptroller and Chief Counsel.

    By order of the Board of Governors of the Federal Reserve 
System.
    Dated: December 14, 2007.
Jennifer J. Johnson,
Secretary of the Board.

    By order of the Board of Directors.

    Dated at Washington, DC, this 10th day of December, 2007.

Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
    Dated: December 14, 2007.

    By the Office of Thrift Supervision.
John M. Reich,
Director.
 [FR Doc. E7-24719 Filed 12-20-07; 8:45 am]
BILLING CODE 4810-33-P; 6210-01-P; 6714-01-P; 6720-01-P